Amber Enterprises rises 2% as management upbeat on margins and growth

Shares of Amber Enterprises rose nearly 2 percent on September 27 after the company’s management said it will maintain margins while growth will likely come from wearables and hearables in the next couple of years.

At 1.40 pm, the stock was trading 1.7 percent higher from the previous close, at Rs 3,047 on the NSE.

“Margin is sustainable in the range of 4-4.5 percent. See scope to grow as well. Beyond FY25, wearable and hearable space can grow in double digits,” Jasbir Singh, CEO of Amber Enterprises, told CNBC TV-18.

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The company recently entered into a joint venture with Nexxbase Marketing Private Limited, which operates Noise Brand. Singh expects Rs 1,000 crore revenue from the next fiscal.

The company has spent over Rs 1,000 crore to expand its plants. New plants are currently running at 30-35 percent capacity and the company expects it to rise to 60-65 percent.

“In the next 2-3 years, RoCE will inch towards 19-20 percent range,” said Singh. “Our Q2 is better than Q1. Expect mobility segment to grow at 20-30 percent. Won new orders at Sidwal Refrigeration and the current orderbook is of Rs 840 crore.”

Singh displayed confidence that FY24 bottomline growth will be 25-30 percent while FY24 electronic division could be better than 25-30 percent, as guided earlier .