Amber Enterprises India (AMBER ) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue reached INR 1,685 crore, up 82% year-over-year, with PAT of INR 21 crore versus a loss of INR 6 crore last year; H1 FY25 revenue was INR 4,086 crore, up 55% year-over-year, and PAT at INR 96 crore versus INR 41 crore last year.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved and published, with statutory auditor review confirming no material misstatements.

• Strategic initiatives included a new manufacturing plant for Ascent Circuits, a JV with Korea Circuit for advanced PCB manufacturing, and a JV with Yujin Machinery for railway products.

Financial highlights

• Q2 FY25 operating EBITDA was INR 120 crore, up 85% year-over-year; H1 FY25 operating EBITDA was INR 320 crore, up 58% year-over-year.

• Q2 FY25 gross margin was 20.1%, down from 22.3% in Q2 FY24; operating EBITDA margin for Q2 FY25 was 7.1%.

• Consumer Durables Q2 revenue was INR 1,069 crore, up 95% year-over-year, with operating EBITDA of INR 62 crore, up 196%.

• Electronics Q2 revenue was INR 492 crore, up 98% year-over-year, with operating EBITDA of INR 37 crore, up 187%.

• Railway subsystem and defense Q2 revenue was INR 124 crore, down 6% year-over-year, with operating EBITDA margin at 17%.

Outlook and guidance

• Expect consolidated revenue growth of around 25% for FY25 and ROCE improvement to 15% by year-end.

• EMS/electronics division revenue growth guidance remains at 45%+ for FY25, with operating EBITDA margins expected between 7.75% and 8%.

• Management remains conservative in guidance, aiming to outpace industry growth, with strong order book in railway and defense segments.