Amber Enterprises India (AMBER ) Q4 17/18 earnings summary

Executive summary

• Integrated RAC OEM/ODM and component supplier delivered strong FY18 growth, supported by higher volumes, customer additions, increased wallet share, new products and manufacturing efficiencies.

• RAC sales volumes rose 26.2% YoY; FY18 RAC mix was 46% IDUs, 38% ODUs and 16% WACs.

Financial highlights

• Consolidated revenue from operations was ₹2,171.5 crore, up 29% YoY; total income was ₹2,180.2 crore.

• Consolidated operating profit rose 44.4% to ₹143.2 crore; net profit increased 181% to ₹62.3 crore.

• Operating EBITDA was ₹184 crore, with an 8.62% margin; PAT was ₹62 crore in the FY18 overview.

• Standalone revenue, net of excise, increased 23% to ₹1,923.1 crore; standalone PBT rose 132% to ₹89.2 crore and PAT rose 156% to ₹62.0 crore.

Outlook and guidance

• Indian RAC market volumes were projected to grow at a 12.8% CAGR from FY17 to FY22, with market volume forecast to rise from 4.7 million units to 8.6 million units.

• Priorities include IoT-based inverter RAC models, brushless DC motors, resin-core motors and inverter controllers, alongside customer cross-selling and expansion into Gujarat and overseas markets.

• Commercial ACs and non-AC components were identified as avenues to diversify against RAC demand slowdowns.