Questions across 4 calls

Jasbir Singh

Firm not listed in source transcripts

Amber Enterprises India Limited

Amber Enterprises India Limited CC-May26.pdf · 2026-05-18

Good morning, Ankur. I'll ask Sachin to reply to your first question, and then I'll answer the second question. Sachin, over to you.

And Ankur, on the second question on the margin side, as explained in my commentary, there are 3, 4 forces which are in play right now. I would like to a little give more brief on those forces. Basically, first factor is the minimum wage increase, which happened of 35% in Haryana, which led to riots in Noida and UP government also in turn increased minimum wages to about 22%. And then other states are also now looking to increase. So that is one part. Second is the commodities like copper clad laminate, the gold, which we use in PCB business. And what we have seen in the PCB front is in Amber, we are Tier 1. So in Tier 1, we directly deal with the customers, and we can increase the pass on or reduction of commodity and currency risk within a quarter 1 -- at a quarterly lag basis. But in the PCB business, we are Tier 2. We don't supply directly to Maruti or Hyundai, we supply to Tier 1 guys, and that's where the inventory has to be taken care at 2 levels. And hence, the lag in the PCB business to increase the cost is about 2 quarters. So this has been our learning in last 1 year as far as the PCB is concerned. On Indian Railway, contracts are fixed term contracts. They don't negotiate because these are tender documents. But whereas other contracts like defense contracts or telecom contracts or the data center air conditioning contracts, which are now getting signed, those are the contracts which have gotten pass on through. And that's the reason why we gave just update to everybody that this is temporary, of course. You would have seen in last 7 years, we have been able to pass on, and we will continue to pass on. But since it is momentary, but we thought that we should -- we should be -- it's our duty to inform everybody that next 1 or 2 quarters should be -- you should see this hit coming in.

Amber Enterprises India Limited CC-Sep24.pdf · 2024-10-23

Ankur, so I think on the industry side, on the air conditioners, as you all have seen that there were a lot of climatic volatilities, which we are seeing these days. Last year, I would say that it was the worst year of AC industry in 40 years. And this year has been the best year of 40 years of our industry. So, the channel inventories right now are at reasonable levels, which are standard levels, which keep -- the channel keeps with them. And this is the product which is not festivity product. So, this used to be product earlier, which was sold in the festivities. But yes, in the southern markets, definitely, it does bump up because of the climatic conditions. From a growth perspective, we expect that the industry should clock a 25% to 30% improvement from last year's number. So, I expect that the industry should be in the range of 1 crore 30 lakhs air conditioner this year as compared to about 95 lakhs last year -- 95 lakhs to 1 crores last year. And we are expecting -- I mean everybody looking from the current order book and the excitement from our customers level, we expect that the quarter 3 and quarter 4 will also be a good quarter because channel inventory is pretty low. And by December, customers will start filling in the inventory of various brands. So , we expect that the quarter 3 should also be a positive quarter for the industry. But overall basis, I expect that it should be about 30% growth for the whole industry in India.

Amber is growing more than the industry, primarily because of reasons that we added a new customer, which was earlier a gas charging customer. That is one part. Secondly, all our earlier initiatives which we announced in last 4 quarters for launching the tower air conditioners and cassette air conditioners, also the commercial air conditioning range of ductables are now fructifying into reasonable revenues. So those kind of initiatives are also showing a very positive results, and plus the industry growth. So, these are 3 factors, which is making Amber grow more than the industry. I believe we should continue this trend at least for the next 2, 3 quarters.

Amber Enterprises India Limited CC-Jun24.pdf · 2024-07-27

Dhruv, good morning. So, you said 91%. We didn't get that point.

No, I think you're mistaken on the numbers. But anyway, I'll give you a highlight on the Electronics EMS division. Basically, on this division, we have 2 segments now. We have PCBA and we have PCB. In our PCBA business, which started from 2018 by acquiring IL JIN and Ever, it was a small INR300 crore worth company, and we were at 3% EBITDA. And we were catering to refrigerators and air conditioners inverter PCB boards. So we took 2 years to develop our own boards, and we became the first company in India to develop our own inverter PCB solutions. And then we found that we were having headwinds from Chinese, they were dropping the prices, then we changed our strategies. While strengthening our inverters board for air conditioning industry, we started diversifying into hearable wearables, where the smartwatches and bluetooth speakers came in. And then we further added telecom equipments, telecom PCBAs. Then we added smart meters. We also added auto. And recently, we have added the defense portfolio. So in all, the trajectory was to take this 3% EBITDA from a bottom line towards more than 6%, 7%. And we achieved about 5.6% last quarter while diversifying these applications. Then we acquired Ascent Circuits, which is into bare PCB boards and which is a more marginable business plus a very high import substitution opportunity. And on a blended basis, that division is also growing very well. It's grown by more than 30% this year over last year. And it has further strengthened because of the anti-dumping duty imposed by the government. On a blended basis, now the EBITDA has come to 7.7%. So in a nutshell, if you see, we have a strong R&D layer built up. Today, we are catering to almost about 22% to 23% of inverter PCB boards for air conditioners, the prime reason for which we acquired this company, so that objective has been achieved. And now we are further graduating into becoming an EMS player, electronic EMS player like our peers, a very strong solution provider. So nobody has the solutions like we have. We have R&D layers on one side. We are giving full solution on the PCB and different applications plus we have a backward integration with the PCB support, which is a higher-margin business. So all 3 put together brings this division to a very robust growth opportunity moving forward.

Amber Enterprises India Limited CC-Mar24.pdf · 2024-05-18

Good morning, Ravi. Basically this modernization program, which was kicked in by the Government of India for complete railway ecosystem, which includes new Vande Bharat Express and also urban mobility where new cities are getting new metro lines and the existing metro lines are also getting expanded, this opens up a wide multi-fold business opportunity for a company like Sidwal. I will give you just a brief data number . As per the recent media reports published by Ministry of Railways, they are now coming up with a grand plan of almost about 3,000 new Vande Bharat Express is to be rolled on in next 5 to 6 years. Now, new Vande Bharat Express will have 24 sleeper coaches in one Vande Bharat Express. So that means almost about 72,000 coaches, passenger cars will be required to be delivered in next 5 to 6 years. And Sidwal as a comprehensive solution provider at what level we have become supplying almost seven components that goes into a passenger car addressing almost Rs. 1.1 crore per car. So that is only opportunity of Vande Bharat I'm talking to you currently which is going to come in next 5 to 6 years. And also to clear, there are almost close to about 550 to 600 coaches which are required in the metro space also. Every day, every year metro lines are expanding. That business is also expanding and we have clearances from all customers who are giving rolling stock to metro divisions like Alstom, they are all our customer, BEML is our customer. Titagarh, of course, has become our customer and new customers like TMH and Siemens and all, they are also being onboarded. Yes, with Titagarh, we have a preferred supplier status as a partner with them. But we are free to deliver the solutions to everybody and we are receiving this order book from other companies also. So we are very excited with this capability enhancement which we have done. This has been very strategic move. I think post current year of FY'25 where all the new factory will be put up plus the new customer approval will be coming in, order book has already started flowing in for the new product category and we are excited for this journey going forward.

So all these will be manufactured here only in India. We have one factory in Faridabad. Second factory groundbreaking ceremony has been done. The construction is in full swing. The Yujin products which are the gears, couplers and pantograph, that team is yet to come from Korea and once they come, we will finalize the location, and once the location is finalized then we'll go ahead with creating the factory for those products also.