Shares of Amber Enterprises India fell to a 52-week low of Rs 1,996.05 in intraday trade on Thursday, down 3% on the BSE. Shares of the air-conditioning business have fallen 9% over the past four days after the company reported weak operating results for the September quarter (Q2FY23). The stock was lower for the sixth straight session, falling 11%. The S&P BSE Sensex was up 0.5% at 59,841 at 9:53 am.

The stock also fell below the previous low of Rs 2,029.80 set on June 20, 2022. The company’s market price halved 50% from its 52-week high of Rs 4,023.65 on May 2, 2022.

Amber Enterprises is the market leader in India for the Room Air Conditioning (RAC) industry and air conditioning for mobile applications such as railways, metros, buses, etc. The company has a diverse product portfolio, including RAC, RAC components and air conditioning solutions for railway, metro, defence, bus and commercial sectors.

In the second quarter of fiscal 2023, Amber reported a loss of Rs 2.3 crore against a profit of around Rs 8 crore on the back of sharply lower EBITDA margins and higher interest costs. Due to a one-time foreign exchange loss of Rs 7.5 crore and others with the new factory.

Finance costs increased to Rs 24 crore in Q2FY23 compared to Rs 6 crore in Q2FY22. Amber Enterprises said the increase in finance costs was mainly due to higher capital expenditures and interest rates, leading to a loss in Q2FY23.

Favourable fundamentals and strong demand for components, helped by adding new customers, led to consolidated revenue rising 28% year-on-year to Rs 750 crore. “Amber is benefiting from strong demand, low penetration, changing lifestyles, and growing contributions from second-, third-, and fourth-tier cities, which have contributed significantly to the growth of the air-conditioning industry,” the company said.

The air-conditioning industry is likely to grow 30% YoY in FY23, supported by a recovery in the property sector and changing lifestyles. In their latest earnings report, analysts at ICICI Securities said that Amber, which has the largest market share (by bill of materials) at around 26%, will be the main beneficiary of increased RAC demand.

Amber’s components business contributes about 50% of its revenue and is a major beneficiary of the PLI scheme offered by the Indian government. The brokerage said new export opportunities (components) in the US and the Middle East.