Amber Enterprises Ltd - Update on import ban of air conditioners with refrigerants

- Recent notification issued by Director General of Foreign Trade, DGFT has amended the import policy on ITC HS Code 84151010 and 84151090 which places ban on Import of Air conditioners with refrigerants

- ~Rs. 4000 crs+ of RAC were being imported in India of which 70-75% consisted of Completely Build Units (CBU's) with refrigerants and remaining being WAC's/IDU's& ODU's

- This will enhance the Local & Domestic Manufacturing of the completely build units as well as components for RAC's in India

- Amber is well placed to capitalize this opportunity as a one-stop solution provider to its customers for HVAC industry

Commenting on the results and performance for Q2FY21, Mr. Jasbir Singh, Chairman & CEO of Amber Enterprises India Ltd said: "Room Air Conditioning, Consumer Durable & Electronics industry have witnessed a positive momentum in Q2FY21. The channel inventory levels are back to normalized levels and we should anticipate good growth for H2FY21.

In the recent notification by DGFT, Imports of Air Conditioners with Refrigerants have been prohibited. We believe this will open up opportunities for domestic manufacturing as now importing Completely Build Units (CBU's) without refrigerants will be cost ineffective. We believe Amber is well place to capitalize this opportunity as a one stop solution provider to its customers for HVAC industry.

To cater to the surge in domestic demand arising from the structural shift, we have successfully completed a QIP of Rs. 400 crs during the quarter.

With operational efficiencies and increase in share of component business, we have witnessed an increase in our gross margins.

On our Sidwal Business, we are observing a good traction and confident to deliver & maintain a healthy order book going ahead.

We have invested in R&D for commercial ACS and we expect to drive fruitive results in the quarters to come.

We believe our Strong Balance Sheet, Large Clientele Base and Increased Penetration in the HVAC industry will allow us to command an edge in the market.

We also reiterate our confidence to create long-term shareholder value."

Shares of Amber Enterprises India Ltd was last trading in BSE at Rs.2307.3 as compared to the previous close of Rs. 2265.2. The total number of shares traded during the day was 6971 in over 1373 trades.

The stock hit an intraday high of Rs. 2347.45 and intraday low of 2280.3. The net turnover during the day was Rs. 16131638.

Source : Equity Bulls

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