Amba Enterprises - Amba Enterprises
Financial Performance
Revenue Growth by Segment
Total sales reached INR 336.80 Cr in FY25. Historically, total operating income grew 21.28% YoY in FY19 (INR 89.15 Cr vs INR 73.51 Cr in FY18). The company operates in two primary segments: Lamination and Stamping.
Geographic Revenue Split
Not disclosed in percentage; however, the company is actively targeting customers with a pan-India and global presence to expand its market reach.
Profitability Margins
FY25 Net Profit margin stood at 2.20% (INR 7.41 Cr profit on INR 336.80 Cr sales). Historically, the PAT margin was 1.23% in FY19, down from 1.89% in FY18.
EBITDA Margin
FY19 PBILDT margin was 2.56%, representing a decline from 3.44% in FY18. For 9MFY20, the PBILDT margin was reported at 1.87%.
Capital Expenditure
The company has invested in automation by installing state-of-the-art slitting machines and cut-to-length lines to improve profitability and reduce electrical losses. Specific INR values for these investments were not disclosed.
Credit Rating & Borrowing
The credit rating was CARE BB (Issuer Not Cooperating) and was reaffirmed and withdrawn in June 2020. Interest coverage stood at 4.21x in FY19 compared to 5.71x in FY18.
Operational Drivers
Raw Materials
Primary raw materials include CRGO (Cold Rolled Grain Oriented), CRNO (Cold Rolled Non Oriented), and CRCA (Cold Rolled Closed Annealed) coils. Specific cost percentages for each were not disclosed.
Capacity Expansion
The company has transitioned from manual processes to automation with slitting and cut-to-length lines to increase market share and achieve the lowest electrical losses. MTPA capacity figures were not disclosed.
Raw Material Costs
Raw material costs are linked to the steel industry; fluctuations in CRGO/CRNO prices directly impact margins. Procurement strategies focus on automation to minimize waste and electrical losses.
Manufacturing Efficiency
Efficiency is driven by the USP of reducing transmission losses for clients and the shift to automated slitting and cut-to-length lines.
Strategic Growth
Expected Growth Rate
25%
Growth Strategy
Growth will be achieved by consolidating the lamination business, specifically targeting higher rating transformers, expanding the customer base globally, and leveraging automated manufacturing to improve product acceptance and profitability.
Products & Services
Laminated steel cores, CRGO/CRNO/CRCA coils, transformer cores, laminations, and stampings for rotating machines.
Brand Portfolio
Amba Enterprises.
New Products/Services
Focusing on laminations required for higher rating transformers to capture higher-value market segments.
Market Expansion
Targeting customers with pan-India and global presence to diversify geographic risk and increase volume.
Market Share & Ranking
Amba Enterprises is cited as one of the largest players in the manufacturing of transformer cores and laminations in India.
External Factors
Industry Trends
The energy sector is a critical infrastructure component in India. The industry is evolving toward higher efficiency and lower transmission losses, positioning the company to benefit from its specialized lamination products.
Competitive Landscape
The industry is competitive and cyclical, with prospects closely linked to the steel and power sectors.
Competitive Moat
The company's moat is built on its USP of reducing transmission losses for clients and its long track record of over two decades in transformer core lamination.
Macro Economic Sensitivity
Highly sensitive to Indian GDP growth and government policies related to the energy and infrastructure sectors.
Consumer Behavior
Demand is driven by institutional renewal of confidence in the Indian economy and increased government spending on power infrastructure.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013 and notified Accounting Standards (AS).
Legal Contingencies
The company reported zero cases filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 during the review period.
Risk Analysis
Key Uncertainties
Fluctuations in global steel prices and changes in government power sector policies represent the primary business uncertainties.
Geographic Concentration Risk
Not disclosed in percentage; however, the company is moving toward a pan-India and global customer base.
Third Party Dependencies
Dependency on independent firms for internal audits and specialized suppliers for electrical steel coils.
Technology Obsolescence Risk
The company is mitigating technology risks by moving from manual processes to automated slitting and cut-to-length lines.
Credit & Counterparty Risk
Receivables quality is a concern as the collection period contributed to a 66-day working capital cycle in FY18.