Amber Enterprises India Reports Positive Q2 FY25 Results, But Some Areas Need Improvement

Oct 22 2024 08:46 PM IST
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Amber Enterprises India, a midcap company in the consumer durables - electronics industry, has reported a positive financial performance in the quarter ending September 2024. The company's net sales and profits have shown significant growth, but there are concerns regarding increased interest costs and reliance on non-business activities. Investors are advised to hold their stock for now.

Amber Enterprises India, a midcap company in the consumer durables – electronics industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Amber Enterprises has shown a positive performance in the quarter, with a score of 19 compared to 8 in the previous 3 months. This improvement can be attributed to the following factors.


The net sales for the quarter stood at Rs 1,684.70 crore, showing a growth of 81.73% year on year. The sales trend in the near term is also very positive. The profit before tax less other income (PBT) for the quarter was Rs 5.79 crore, showing a growth of 126.05% year on year. The near term trend for PBT is also positive. The profit after tax (PAT) for the quarter was Rs 19.25 crore, showing a growth of 377.0% year on year. The near term trend for PAT is also very positive. The company has also generated a high operating cash flow of Rs 726.44 crore annually, which has grown each year in the last three years.


However, there are some areas that need improvement for Amber Enterprises. The interest cost for the nine-month period has increased by 25.36%, indicating higher borrowings. The non-operating income for the quarter is 75.48% of the PBT, which is a cause for concern as it shows a high reliance on non-business activities. The company’s dividend per share (DPS) for the year is the lowest in the last five years, at Rs 0.00. This indicates that the company is distributing lower dividends compared to previous years. The dividend payout ratio (DPR) for the year is also the lowest in the last five years, at 0.00%, showing that the company is distributing a lower proportion of its profits as dividends.


Overall, Amber Enterprises India has shown a positive financial performance in the quarter ending September 2024. However, there are some areas that need improvement, and investors are advised to hold their stock for now.


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