šŸ’° 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The credit rating was CARE BB (Issuer Not Cooperating) and was reaffirmed and withdrawn in June 2020.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.

āš™ļø 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.

šŸ“ˆ 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.

šŸŒ 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.

āš–ļø 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.

āš ļø 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.