The shares of Amber Enterprises India Ltd, a leader in the domestic air conditioning industry, tumbled nearly 20 per cent to around Rs 2,715 early on Monday after the company reported that its profit after tax fell over a fifth from a year ago.
That fall in Amber Enterprises’ shares comes when the broader equity benchmarks gained, snapping a six-session losing streak.
Ambers’ earnings before interest, taxes, depreciation, and amortization (EBITDA) margins were down 6.5 per cent, pushing its profit after tax to fall by 22 per cent from a year ago period to Rs 59 crore.
Higher raw materials cost largely drove that because of supply chain disruptions. The company had not passed on to consumers as the demand was just about picking up pace from domestic COVID-19 lockdowns.
Mr Jasbir Singh, Chairman & CEO of Amber Enterprises India Ltd, said, “I’m pleased to report that the company has generated record sales of Rs 1,937 crore in Q4FY22 and achieved highest ever revenue of Rs. 4,206 crore for FY22. After two consecutive years of COVID-19-induced lockdowns during the peak summer season, we’re witnessing an increase in demand for room air conditioners.”
“However, the geopolitical tensions have led to inflationary pressure on commodity prices, and the covid induced lockdowns in China have led to supply chain disruptions which have further added to the economy’s pain. Despite this, we have been able to pass on most price increases and have been largely able to maintain our profitability,” he added.
Amber Enterprises is India’s top company for the domestic room air conditioner (RAC) industry and RAC mobility applications.
Its shares are down nearly a third from their all-time highs of Rs 4,023.65 hit earlier this month.