Why has Amber Enterprises hit 20% upper circuit in trade today? Details

Amber Enterprises reported a consolidated net profit of Rs 20.96 crore as compared to a loss of Rs 5.65 crore a year ago

Amber Enterprises shares hit a 20 per cent upper circuit in trade today and also hit an all time high of Rs 6,815.85 per share on the BSE. The buying in the stock came after the company's board approved a scheme of amalgamation between AmberPR Technoplast India and Amber Enterprises, apart from reporting robust number in its Q2FY25 results.

At around 11:27 AM, Amber Enterprises shares were up 15.12 per cent at Rs 6,538.6 per share. In comparison, the BSE Sensex was up 0.38 per cent at 80,524.52, around the same time. The market capitalisation of the company around the same time stood at Rs 22,075.95 crore. 

"The Board of Directors of Amber Enterprises India Limited in their meeting held on 22 October 2024 have approved the scheme of amalgamation of AmberPR Technoplast India Private Limited with and into the company," the filing read. 

The company also reported its second quarter results on Tuesday after market hours. Amber Enterprises reported a consolidated net profit of Rs 20.96 crore, compared to a loss of Rs 5.65 crore a year ago. 

The company's revenue for the second quarter stood at Rs 1,684.7 crore, higher by 81.72 per cent year-on-year (Y-o-Y) from Rs 927.06 crore a year ago.

Likewise, the company's total income rose by 81.15 per cent to Rs 1,702.52 crore as compared to Rs 939.81 crore in the year ago period. 

During the second quarter, the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased 82 per cent to Rs 132 crore as compared to Rs 72 crore a year ago.  

As per the company's exchage filing, a strong order book and new product additions in railway sub-systems and defense provide it with long-term visibility on growth. 

Further, the company's consumer durables division clocked robust growth during the quarter owing to favourable weather and channel filling. 

Additionally, during the quarter, the company onboarded one new customer for tower ACs and successfully converted a customer from gas charging to ODM solutions.

Meanwhile, Amber Enterprises' electronics division reported a robust growth of 98 per cent against the previous year.

Conversely, the company's railway sub-systems and mobility division saw a 6 per cent Y-o-Y decline in Q2FY25 revenues due to slow lifting of material by Indian Railways as production is more focused towards non-AC coaches.

Amber Enterprises manufactures and provides solutions in the air conditioning and cooling sectors. They often focus on designing, developing, and supplying a range of air conditioning products, components, and systems. The company may also engage in projects related to HVAC (heating, ventilation, and air conditioning) systems for commercial and residential applications.

In the past one year, Amber Enterprises shares have gained 104 per cent, compared to the BSE Sensex's rise of 24 per cent during the same period.