Amber Enterprises India Q4 Results Review: Shares Jump As Profit Beats Estimates
The company reported an 82.29% increase in net profit to Rs 108.10 crore, according to its exchange filing.
.Shares of Amber Enterprises India Ltd. rose after the company's earnings in the fourth quarter of fiscal 2023 exceeded expectations.
The company reported an 82.29% increase in net profit to Rs 108.10 crore, according to its exchange filing. This is higher than the Bloomberg estimate of Rs 71.07 crore.
Revenue rose 55.04% to Rs 3,002.62 crore, compared to a Bloomberg estimate of Rs 2,130.91 crore.
Amber Enterprises India, Q4 FY23 (Consolidated, YoY)
Revenue up 55.04% at Rs 3,002.62 crore (Bloomberg estimate: Rs 2,130.91 crore).
Ebitda up 62.43% at Rs 203.51 crore (Bloomberg estimate: Rs 152.98 crore).
Ebitda margin at 6.78% vs. 6.47% (Bloomberg estimate: 7.2%).
Net profit is up 82.29% at Rs 108.10 crore (Bloomberg estimate: Rs 71.07 crore).
The company's return on capital employed has improved from 11% in FY22 to 15% in FY23, and it is further expected to improve in the range of 19% to 21% in the next two to three years, according to Jasbir Singh, chairman and chief executive officer at Amber Enterprises.
The company's timely investments in required capital expenditures helped increase profitability and improve share in RAC manufacturing and other segments.
Shares of the company rose 15.39% to close at Rs 2,171.85 apiece, as compared with a 0.57% decline in the benchmark Nifty 50.
The stock rose as much as 18.42% to Rs 2,228.90 intraday.
Of the 17 analysts tracking the stock, eight maintained 'buy' and three remained neutral between 'buy' and 'hold'. While, five suggested 'hold' and one analyst recommended 'sell', as per Cogencis data.
Here's what analysts are saying about the results:
Phillip Capital
The company witnessed strong revenue growth.
Consolidated revenue was Rs 3,000 crore, up 55% YoY and up 123% QoQ, 4-year CAGR of over 26%.
The gross margin capped the margins.
Gross margin at 13.6% vs. 13.8% YoY and 17.0% QoQ was the lowest in the last 16 quarters.
Equirus Capital
The company posted solid top-line performance during Q4.
Growth was across standalone (RAC + RAC component) as well as its component businesses.
Believes strong demand from brands in expectation of good summers has led to strong performance in standalone businesses.
This was further supported by new clients and capacity additions.
Though Ebitda margins were largely in line, gross margins remained under pressure for standalone as well as subsidiary businesses.
