Consolidated revenues increased ~28% YoY (down ~59% QoQ) to Rs 750.4 led by price hikes
The gross margin increased by 180 bps YoY to 21.1% which is higher than its pre-covid level. However, EBITDA margin declined by 95 bps YoY to 4.9% due to significant increase in other expenses (grew 69.3% YoY)
As a result of fall in EBITDA, the company posted a net loss of Rs 2.3 crore.
We believe that Amber reported a good revenue growth in Q2FY23 led by demand of cooling products and price hikes. However, EBITDA margin at 4.9% is lower than its historic levels of ~6-8% resulting into a slow recovery in bottomline. Going forward, we believe price hikes and improved product mix will be key trigger to watch for company’s overall recovery in the profitability.
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