Amber Enterprises Shares Fall Over 10% After Q2 Loss Widens
The company reported a net loss of Rs 5.7 crore year-on-year in the July-September quarter.
Shares of Amber Enterprises India Ltd. declined over 10% on Monday after its net loss widened in the second quarter of fiscal 2024.
The company reported a net loss of Rs 5.7 crore year-on-year in the July-September quarter, according to an exchange filing. This compares to a net loss of Rs 2.29 crore in the same quarter of the previous financial year.
However, the company's revenue and operating profit grew during the quarter. "Our component strategy, which led to product mix change, has helped to improve margins during the quarter, despite weak demand in the refrigeration and air conditioning segment, owing to unseasonal weather patterns," it said in the investor presentation.
Its subsidiary Il Jin Electronics (India) Pvt. and Nexxbase partnered with each other to form a 50:50 joint venture company in the quarter for manufacturing, assembling, and designing wearables and other smart electronics products, thus contributing strongly towards the Make in India initiative, which will help reduce import dependency, according to the presentation.
Amber Enterprises India Q2 FY24 Key Highlights (Consolidated, YoY)
Revenue up 23.53% at Rs 927.1 crore.
Ebitda up 62.46% at Rs 59.6 crore.
Margin at 6.42% vs 4.88%.
Net loss at Rs 5.6 crore vs loss of Rs 2.3 crore.
Shares of the company fell as much as 10.39%, the lowest level since Aug. 16, before paring loss to trade 6.44% lower at 11:25 a.m., compared to a 0.38% decline in the NSE Nifty 50.
The stock has risen 50.16% on a year-to-date basis. Total traded volume so far in the day stood at 9.2 times its 30-day average. The relative strength index was at 43.6.
Of the 25 analysts tracking the company, 19 maintain a 'buy' rating, five recommend a 'hold,' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 1.2%.
