www.ambergroupindia.

com

Date: 24 May 2024

To To
Secretary Secretary
Listing Department Listing Department

BSE Limited National Stock Exchange of India Limited

Department of Corporate Services Phiroze Exchange Plaza, Bandra Kurla Complex,
Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 Mumbai – 400 050
Scrip Code : 540902 Scrip Code : AMBER
ISIN : INE371P01015 ISIN : INE371P01015

Dear Sir/Ma’am,

Subject: Earnings Call Transcript for operational and financial performance of the Company for the
quarter and financial year ended 31 March 2024 (‘Q4 and FY24)

This is further to our letter dated 14 May 2024 intimating the details of Earnings Call with Investor/Analyst
(Participants) to discuss the Audited Financial Results (Standalone and Consolidated) of the Company for
the for the quarter and financial year ended 31 March 2024, (‘Q4 and FY24’) held on Saturday, 18th May
2024 at 9:30 A.M. IST.

In this regard, we are enclosing herewith the Earnings Call Transcript. The same is also available on the
Company's website at https://www.ambergroupindia.com/investor-events-presentation-head/ for your
information and for information of members / participants and public at large.

This information is submitted to you pursuant to Regulation 30 of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements), Regulations, 2015, as amended. Kindly take the
same into your records and oblige.

Thanking You,
Yours faithfully
For Amber Enterprises India Limited
Digitally signed by Konica

Konica
Yaadav
DN: cn=Konica Yaadav,
o=Amber Enterprises India
Limited, ou,

Yaadav
email=cs_corp@ambergroup
india.com, c=IN
Date: 2024.05.24 10:37:29
+05'30'

(Konica Yadav)
Company Secretary and Compliance officer
Membership No. : A30322
CIN NO. : L28910PB1990PLC010265

Amber Enterprises India Limited

Corp. Address: Regd. Office:

Universal Trade Tower, 1st Floor, Sector 49, Gurgaon-1 22018 C-I, Phase II, Focal Point, RajpuraTown-140401, Punjab
Tel.: +91 124 3923000 I Fax: +91 124 3923016,17 Tel.: +91 1762 232126, 232646 I Fax: +91 1762 232127
 “Amber Enterprises Limited Q4 & FY'24 Earnings
Conference Call”

May 18, 2024

MANAGEMENT: MR. JASBIR SINGH – EXECUTIVE CHAIRMAN & CHIEF

EXECUTIVE OFFICER, & WHOLE-TIME DIRECTOR,
AMBER ENTERPRISES INDIA LIMITED
MR. DALJIT SINGH – MANAGING DIRECTOR, AMBER
ENTERPRISES INDIA LIMITED
MR. SUDHIR GOYAL – CHIEF FINANCIAL OFFICER,
AMBER ENTERPRISES INDIA LIMITED
MR. SANJAY ARORA – WHOLE-TIME DIRECTOR, IL JIN
ELECTRONICS

Disclaimer: E&OE-This transcript is edited for factual errors. In case of discrepancy, the audio recording uploaded on the
stock exchange on 18th May 2024 will prevail

Page 1 of 14
 Amber Enterprises India Limited
May 18, 2024
Moderator: Ladies and gentlemen, good day and welcome to Amber Enterprises India Limited Q4 & FY'24
Earnings Conference Call.

This conference call may contain forward-looking statements about the company which are
based on the beliefs, opinions and expectations of the company as on date of this call. These
statements are not guarantees of future performance and involve risks and uncertainties that are
difficult to predict.

As a reminder, all participant lines will be in the listen-only mode and there will be an
opportunity for you to ask questions after the presentation concludes. Should you need assistance
during the conference call, please signal an operator by pressing "*" then "0" on your touchtone
phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Jasbir Singh – Executive Chairman and CEO and Whole-
time Director of Amber Enterprises India Limited. Thank you. And over to you, sir.

Jasbir Singh: Hello and good morning, everyone. On the call, I'm joined by Mr. Daljit Singh, Managing
Director, Mr. Sudhir Goyal, our CFO, Mr. Sanjay Arora, Whole-time Director of IL GIN
Electronics and our Investor Relations Advisor, SGA.

We have uploaded our Results, Presentation on the exchanges and I hope everybody had an
opportunity to go through the same.

FY'23-24 has been a year of resilience and growth for Amber. And in this one year we have
strengthened our portfolio and market offerings with strategic diversifications in new growth
segments.

From a core RAC player we have transitioned towards a diversified manufacturing company
supported with multiple acquisitions and MoUs that we did during the year, further fortifying
our positions in the markets.

Amber with the DNA of manufacturing is completely aligned with this transformative journey
and is scripting its role through localization and backward integration of consumer durables and
its components, EMS and railways subsystem & mobility.

I will now take you through some highlights on the “Consumer Durable Division.” Our journey,
as you all know, it began from room air conditioner sector, initially focusing on window ACs,
then expanding into split units, then inverters, later branching out into cassette air conditioners,
ductibles and higher tonnage package units.

As the industry landscape evolved with majority of the customers looking to shift assembly
businesses in-house, we quickly recognized the need to adapt our strategies accordingly and
diversified our portfolio. Initially, this involved transitioning towards supplying components to
RAC customers with the aim of maintaining our market share in this segment at around 27% in
value terms. I am pleased to report that we have successfully upheld this share and are optimistic
about sustaining it moving forward.

Additionally, we expanded into supplying components of non-room AC applications such as

telecom components, smart meter components, automobile components, refrigerator, washing
machine, microwave components and more. As a result of this strategic shift, our contribution
from room AC has decreased from 72% in FY'18 to just 40% in FY'24.

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 Amber Enterprises India Limited
May 18, 2024
As guided during previous call, our RAC top line was hit due to brands taking RAC assembly
in-house and a reflection of the same is evident in our top line of FY'24. This was a well-known
transition and hence we diversified our offerings in the component space which are more margin-
accretive. Further, two more customers will begin their plant by next quarter and post that the
business model will move towards stability and growth will move in tandem with the industry
trend.

Glad to share that due to high temperatures and good secondary sales in the month of April and
May, we are moving with a run rate of 20% growth and expect the same growth by year-end for
this division.

Also, our operating EBITDA margins in consumer durable division have increased by 100 basis
points, touching to 7% now which is reflective of our component strategy with better margins.

I'm also glad to share that Amber received a PLI grant of Rs.15 crores for manufacturing of AC
components.

On the JV with Resojet continuing with the same thought process of strengthening our position
in the consumer durable space, we have entered into 50:50 JV with Resojet Private Limited part
of the Radian Group Company for manufacturing of fully automatic top and front load washing
machines. This joint venture will propel Amber's diversification beyond air conditioners in
finished goods into the washing machine and its component segment, thereby further solidifying
our position within the consumer durable market.

Mass production from the new plant will commence from H2 second half this year, where we
expect around 40,000 washing machines to be produced in this year, which will further take it
to 1,25,000 in next financial year. We have already onboarded a couple of customers and the
trials are currently going on. Through this JV, we gained access to manufacturing washing
machines, thereby allowing us to offer wider range of high quality products to our customers.

Now, I will take you the highlights on “Electronics Division.” In the past five years, our stint
which started from providing PCBA solution for inverter AC has now diversified into providing
solutions for home appliances, consumer electronics, hearable and wearable, telecom, smart
meters and automobile segments.

We have further amplified our offerings by making an entry into manufacturing of bare PCB,
which going forward will open new avenues for us in the sector of aerospace, defense, medical
electronics, EV, mobile and energy solutions amongst others.

We acquired 60% stake in Ascent Circuits for manufacturing of printed circuit boards, single
sided, double sided multilayer and RF PCB. The company has been catering to marquee
customers such as ISRO, BHEL, VHEL, automotive component customers, telecom, consumer
electronic clients, both multinational and domestic, who have been driving India's growth
journey. This acquisition will enable us to offer solutions to applications such as aerospace and
defense, medical, energy solutions, etc., This acquisition strengthens our EMS portfolio by
enhancing our presence in passive components of PCB assemblies. This uniquely positions
Amber as a leading player in the electronic EMS space.

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 Amber Enterprises India Limited
May 18, 2024
Further, our MoU with South Korea, Korea Circuit through our recent venture Ascent Circuits
for manufacturing of Flex HDI and semiconductor substrates, which means in India will bolster
Amber's electronics EMS play. This MoU will enhance the capability of Ascent Circuits for
providing solutions to the mobile and semiconductor industry, which has been a focus of the
government recently. This association between Amber and Korea Circuit will envelope the entire
portfolio of PCBs required for various applications in India's electronic manufacturing growth
story, that is HDI, Flex, Semiconductor Substrate, Multilayer Double Layer, Single Sided, etc.,

Also, the recent decision by government to impose anti-dumping duty on imported printed
circuit boards will settle the dust of import and make the road clear for localization of bare
boards in the country.

In this electronic EMS division, we have travelled a journey from 3% EBITDA in 2018 to 5.6%
in FY'24. Now going forward, we are confident to touch EBITDA in the range of 7.5% to 8%
for the division in the current year.

On the railway subsystem and mobility division, as you all are aware that last year we expanded
our portfolio from HVAC to doors and gangways through TOT with Ultimate Group and also
added pantry systems in Sidwal.

We are glad to share that during year of FY'24 we received our first orders for doors and
gangways from three new customers. In phase one, we shall assemble these new products and
in phase two, complete manufacturing will begin from Q1 FY'26 onwards.

During the year, we did a strategic alliance with Titagarh by investing in Firema in Italy and also
did a JV with Yujin of South Korea for couplers, gears and pantographs.

We are also glad to inform that our defense portfolio in Sidwal is gaining momentum. The order
book for the defense has moved double-digit during this year and we are expanding our product
portfolios for specialized terrain vehicles, slip on air conditioners, etc.,

For expanding our capacities we have done a groundbreaking ceremony for our upcoming
Greenfield facility in Faridabad and construction is in full swing. This new facility shall have
state-of-the-art manufacturing facility for energy efficient air conditioners, doors and gangways
for railways and metros and pantry systems. We expect commencement of production from this
facility in Q1 in next financial year.

Another Brownfield expansion will be done for Yujin products in the country in current financial
year. We expect to receive all clearances and approvals from customers in FY'26 and expect to
commence production of Yujin products, that is couplers, pantographs and gearbox by Q4 of
FY'26.

With all the above mentioned initiatives, Sidwal can now give solution up to approximately 1.1
crore per passenger car, which expands our addressable market multifold. FY'25 shall be the
year of execution and customer approvals for these new products and the real ramp up in revenue
for all new product category shall start from second half of FY'26 onwards, which is in line to
the rolling plan of new Vande Bharat Express Trains.

I shall now request Sudhir Goyal, our CFO, to take you through the Consolidated Financial
Highlights.

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 Amber Enterprises India Limited
May 18, 2024
Sudhir Goyal: Hi, good morning everyone. So now I will take you to the consolidated highlights of the
Financial:

So, on the revenue front for Financial Year ‘24 revenue stood at Rs. 6,729 crores compared to
Rs. 6,927 crores in Financial Year ‘23. We have reported revenue of Rs.2,806 crores in Q4
Financial Year ‘24 versus revenue of Rs.3,003 crores in Q4 Financial Year ‘23. Operating
EBITDA for Financial Year ‘24 stood at Rs.519 crores versus Rs.475 crores in Financial Year
‘23, a growth of 9% for Q4 Financial Year ‘24. Operating EBITDA stood at Rs.234 crores
compared to Rs.204 crores in corresponding quarter last year. Operating EBITDA is before
impact of ESOP expenses and other non-operating income and expenses. Operating EBITDA
margin for Financial Year ‘24 stood at 7.7% versus 6.9% in the Financial Year ‘23.

PAT for the Financial Year ‘24 stood at Rs.139 crores versus Rs.164 crores in Financial Year ‘23.
For Q4 Financial Year ‘24 PAT stood at Rs.99 crores versus Rs.108 crores in Q4 Financial Year
‘23. Net debt for March '24 stood at Rs.615 crores from Rs.588 crores in the March 2023.
Working capital days for March '24 stood at 13 days as compared to 29 days in March '23.
Overall CAPEX for Financial Year ‘24 stood at Rs.373 crores compared to Rs.698 crores in
Financial Year ‘23. We plan to incur CAPEX of Rs.350 to 375 crores for Financial Year ‘25.

Due to the anti-dumping duty imposition on the printed circuit boards, new avenues of
opportunities are opening up and expect marquee customers addition in auto and IT-related
products category and consumer durables. We are evaluating our expansion plan for the printed
circuit board for Make in India and shall inform once the decision of total capacity expansion
has been taken considering all the government incentives in place.

Coming to the “Divisional Highlights,” we shall now take you through all the three divisional
highlights which are as follows:

The consumer durable division has reported total revenue of Rs.5,009 crores for Financial Year
‘24 compared to Rs.5,380 crores in Financial Year ‘23. For Q4 Financial Year ‘24 revenue stood
at Rs.2,199 crores compared to Rs.2,475 crores in Q4 Financial Year ‘23.

The operating EBITDA stood at Rs.352 crores in Financial Year ‘24 versus Rs.325 crores in
Financial Year ‘23. The operating EBITDA in Q4 stood at Rs.179 crores compared to Rs.156
crores in Q4 Financial Year ‘23.

We expect margin expansion in this division due to our shift of strategy towards components
and further diversifying into manufacturing of fully automatic top load and front load washing
machine and its components. We expect to maintain our share of business of around 27% of
manufacturing footprint in value terms in our RAC division.

The electronics division has reported total revenue of Rs.1,241 crores for Financial Year ‘24
compared to Rs.1,125 crores in Financial Year ‘23. For Q4 Financial Year ‘24 revenue stood at
Rs.484 crores compared to Rs.415 crores in Q4 Financial Year ‘23.

The operating EBITDA stood at Rs.69 crores in Financial Year ‘24 versus Rs.51 crores in
Financial Year ‘23. The operating EBITDA in Q4 Financial Year ‘24 stood at Rs.33 crores
compared to Rs.21 crores in Q4 Financial Year ‘23.

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 Amber Enterprises India Limited
May 18, 2024
With marquee development during the year such as customer addition in telecom, automobile
and durable space, onboarding large smart metering business and customers in automotive
segment.

IL GIN entering JV with Nexxbase for manufacturing smart variables, acquisition of Ascent
Circuits for expanding portfolio into PCB boards for various applications and Ascent signing
MoU with Korea Circuit to manufacture Flex, HDI, Semiconductor Substrate PCB. With such
developments, we expect this division to increase its margin going forward. We are targeting an
EBITDA margin in the range of 7.5% to 8% and expect this division to grow by above 35% in
the current Financial Year ‘25.

The Railways Subsystem and Mobility Division has reported total revenue of Rs.480 crores for
Financial Year ‘24 compared to Rs.422 crores in Financial Year ‘23. For Q4 Financial Year ‘24
revenue stood at Rs.123 crores compared to Rs.113 crores in Q4 Financial Year ‘23. The
operating EBITDA stood at Rs.98 crores in Financial Year ‘24 versus Rs.99 crores in Financial
Year ‘24. The operating EBITDA in Q4 Financial Year ‘24 stood at Rs.22 crores compared to
Rs.28 crores in Q4 Financial Year ‘23.

Just to reiterate for the benefit of all, our railway subsystem and mobility division has witnessed
remarkable developments during the year with manufacturing air conditioner system for the
Namo Bharat trains, Sidwal’s strategic partnership with Titagarh rail systems and now with AT
rail subsystems’ JV with Yujin Machinery. These development places Amber Group in a sweet
spot to increase its wallet share and BOM per passenger coach, which is in line with our strategy.

Further, we have received our first order for new category added in Financial Year ‘24 that is
doors and gangways. Glad to share that new orders for doors and gangways received from three
customers amounting to Rs.515 crores. This makes total order book of Sidwal at approximately
Rs.2,000 crores. No

With good order book in place, increase in product offering per passenger coach and Sidwal
getting a preferred supplier status, we expect railway subsystem and mobility division to double
its revenue in the next two to three financial years. With all the initiatives in respective divisions,
we have established a robust foundation for strong growth over the next decade. We expect
further margin improvement in this current financial year at a consol level by at least 50 basis
points to 75 basis points and hence ROCE level to bounce back above 15% in Financial Year
‘25.

With this I would now open the floor for question-and-answer. Thank you.

Moderator: We will now begin the question-and-answer session. The first question is from the line of Ravi
Swaminathan from Avendus Spark. Please go ahead.

R Swamintathan: My first question is with respect to the railways business. There seems to be a lot of exciting
opportunity over there and you are also increasing your capability in that. Just wanted to get
your sense with respect to Sidwal. How is the opportunity that we need to think of with respect
to the traditional railways, the Vande Bharat trains, defense also you had mentioned there's a bit
of opportunity and there has been a lot of work going on in data centers also. What can be the
addressable market over the next two to three years that you can talk about? and with respect to
the Titagarh joint venture, would we be addressing the opportunity of Vande Bharat only from

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 Amber Enterprises India Limited
May 18, 2024
the Titagarh angle, or we will be in a position to supply to other Vande Bharat manufacturers
also… train manufacturers also, if you can give your broad thought process?

Jasbir Singh: Good morning, Ravi. Basically this modernization program, which was kicked in by the
Government of India for complete railway ecosystem, which includes new Vande Bharat
Express and also urban mobility where new cities are getting new metro lines and the existing
metro lines are also getting expanded, this opens up a wide multi-fold business opportunity for
a company like Sidwal. I will give you just a brief data number . As per the recent media reports
published by Ministry of Railways, they are now coming up with a grand plan of almost about
3,000 new Vande Bharat Express is to be rolled on in next 5 to 6 years. Now, new Vande Bharat
Express will have 24 sleeper coaches in one Vande Bharat Express. So that means almost about
72,000 coaches, passenger cars will be required to be delivered in next 5 to 6 years. And Sidwal
as a comprehensive solution provider at what level we have become supplying almost seven
components that goes into a passenger car addressing almost Rs. 1.1 crore per car. So that is
only opportunity of Vande Bharat I'm talking to you currently which is going to come in next 5
to 6 years. And also to clear, there are almost close to about 550 to 600 coaches which are
required in the metro space also. Every day, every year metro lines are expanding. That business
is also expanding and we have clearances from all customers who are giving rolling stock to
metro divisions like Alstom, they are all our customer, BEML is our customer. Titagarh, of
course, has become our customer and new customers like TMH and Siemens and all, they are
also being onboarded. Yes, with Titagarh, we have a preferred supplier status as a partner with
them. But we are free to deliver the solutions to everybody and we are receiving this order book
from other companies also. So we are very excited with this capability enhancement which we
have done. This has been very strategic move. I think post current year of FY'25 where all the
new factory will be put up plus the new customer approval will be coming in, order book has
already started flowing in for the new product category and we are excited for this journey going
forward.

R Swamintathan: And all these products will be manufacturing here, pantry, doors, gangways, couplers or will
there be a sourcing strategy for this?

Jasbir Singh: So all these will be manufactured here only in India. We have one factory in Faridabad. Second
factory groundbreaking ceremony has been done. The construction is in full swing. The Yujin
products which are the gears, couplers and pantograph, that team is yet to come from Korea and
once they come, we will finalize the location, and once the location is finalized then we'll go
ahead with creating the factory for those products also.

Moderator: The next question is from the line of Natasha Jain from Nirmal Bang. Please go ahead.

Natasha Jain: Sir my question firstly is on the reported numbers. In your segmental number in the PPT versus
what you've published, sir, specially at EBIT level for electronics, there's a very stark difference.
So on your published number, I think there is a degrowth of almost 470 basis points and on the
PPT there is an increase of 170 basis points. So if you can tell us what's the difference here
because even if I take full impact of ESOP, there is still a decline. So, if you could call out what
are these non-operating income and expenses? And secondly, on that segment again, we are
seeing a tepid growth in FY'24. Now, our guidance have been that we want to clock in 50% top

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 Amber Enterprises India Limited
May 18, 2024
line CAGR. So like how you explained for Sidwal, if you could tell us the strategy here also
going forward, how can we get back on the growth path?

Jasbir Singh: So basically on the growth part like PCBAs, we have already expanded our applications. We are
no more a consumer durable application company. We are now giving applications solutions for
telecom industry, for hearables, wearables for smart meters, for auto players also and plus by
acquisition of Ascent Circuits, which is largely into defense, aerospace and predominantly into
auto space. This expands our portfolio of offering both into PCB as well as PCBA world and
that's how we are very confident of achieving, because our PCB business is at a higher margin
as compared to our PCBA business, but on a blended basis, now we are targeting to touch 7.5%
to 8% in this current financial year. As far as on the other income is concerned, I would request
Sudhir to answer that question.

Sudhir Goyal: So on the operating EBITDA which you mentioned that there is a difference in division wise
performance versus the consol. So if you see that consol level operating margin is 7.7% and on
the divisional front like consumer durable division is having 7%, electronics division is having
5.6% operating EBITDA margin and railway subsystem is having 20.4%, so weighted average
is coming to 7.7%. If there is some more difference is coming we can have a separate call and I
will discuss with you and give you the proper explanation. On the operating EBITDA
adjustments, one is the ESOP which is totaling to around Rs. 17.7 crores. Then we have one
fixed assets, because gain on the sale of fixed assets comes in the other income, but loss is
coming in the other expenses, so that we have netted off amounting to around Rs. 8.5 crores,
which is including put call option adjustment on the acquisition. And these are the major
differences which will make it to the operating EBITDA level from the normal EBITDA.

Moderator: The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.

Dhruv Jain: First question was on the working capital side, right? So we have seen a very sharp improvement
in working capital. So just wanted to understand the sustainability of the same, do you expect
that the working capital is now normalized to 13 to 15 days kind of a number?

Sudhir Goyal: This is not a normalized level of 13 days though the normalized level in the year end level, we
are expecting it should be in the range of 20 to 25 days. But this year, because of some new
customers we onboarded, we have better terms and we got the payment on time. That helped us
to reduce the payment term plus increase in the payment terms of the creditors.

Dhruv Jain: The second question was on the industry side. So in the last 1, 1.5 years we have seen that there
has been a lot of capacities put up by brands and EMS partners. So there was that risk of
insourcing for various EMS partners. However, we've seen this summer being very strong, so
where are we in terms of the demand and supply in terms of capacity utilization of the AC
industry as such? Do you expect that the risk that was thought to be say for two years or three
years in terms of lower RAC sales would actually play out earlier?

Jasbir Singh: Well, Dhruv, basically, these are all recent units manufacturing plants which have been put up
by various brands and whenever brand puts up a factory, they plan longer for the capacities. And
I think yes, this season has been a very positive season. So capacity utilization will increase
much beyond, I mean, we were not expecting this, but if we see from a long-term perspective,
you may be right that in case these kind of trend of good season continues, then maybe the

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 Amber Enterprises India Limited
May 18, 2024
capacity utilization gets over in next two to three years only. But we have mitigated to large risks
in our business model. One is since we are supplying to the entire industry so brands exchanging
market shares do not impact us and second basically on the insourcing and outsourcing function,
which is beyond our control, which is there which is decided by the brands themselves. They
keep on calculating between make versus buy. But good part is that we as a solution provider,
we are also enjoying the good season and we have seen good uptake both in finished goods as
well as in our components division. I think already in April and May month, we are 20%-plus at
run rate of that and if the Q4 also have a good season probably industry will see 20% to 25%
range improvement in the whole industry level.

Moderator: The next question is from the line of Sonali Salgaonkar from Jefferies. Please go ahead.

S Salgaonkar: So my first question is regarding the multiple new product stories and the tie ups that you have
recently entered. So the opportunity of each of these components is different and each of these
will accrue to your top line in FY'25. So any kind of ballpark guidance in terms of revenue you
would like to give? And also in Sidwal what percentage of your overall top line do you expect
Sidwal to come through in the next three to four years?

Jasbir Singh: On a guidance, I mean since all these three divisions are on a growth path, I think it's very
difficult to predict which division will contribute, how much in full financial year. But, yes, we
are seeing positive uptick in each division. I think electronics is on a growth path of delivering
about 30%, 35% range on the top line basis and also margin expansion, we expect it to touch to
7.5% to 8% this year. As Sidwal business is actually linked with the rolling of new Vande Bharat
Express. So if you see all the order book which Indian Railways has given for Vande Bharat
Express, so this financial year there are very less trains which are rolling out, but next year, the
number of trains are exponentially increasing. And FY'27 is the peak year where it's the
exponential increase in the number of trains which will be rolled out from all the rolling stock
companies. We expect Sidwal to grow in that range only. As far as right now is concerned, we
have got good order book. Our defense order book which used to be earlier at generally about
20, 25 crores, we have shifted to 70 crores and we are expecting that in line and we are adding
some more products also for the defense offering. In metro space also, the same kind of about
10% to 15% growth is coming. And on the consumer durable side as I explained, we are running
with a run rate of 20% right now. So on a blended basis, it's very difficult to guide right now on
the top line but yes, you should expect a good growth and good bottom line growth on a consol
level.

S Salgaonkar: Secondly, you did mention 40,000 washing machines in FY'25. Any customer names you would
like to give at this point in time in terms of onboarding or prospective onboarding? And secondly,
it's a JV. So what kind of numbers do we expect to accrue to Amber in FY'25 or going ahead?

Jasbir Singh: So it's basically a PAT which will be consolidated. The top line will not be consolidated in the
consol balance sheet because it's a 50:50 JV. On the 40,000 numbers, that's what we are aiming
to deliver with the clients which have been already onboarded for which the approvals are right
now going on. I cannot name all the clients because we have NDA signed with them, but these
are mix of multinationals, domestic and online players. And I think this will start contributing
significantly after two years in the PAT levels also. But it's a good growth story. The assembly
line has been put up, already, the products have started rolling out, we have started giving

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 Amber Enterprises India Limited
May 18, 2024
samples to customers, customers have visited our facilities, we have now onboarded almost
about four customers and we expect to add three more customers going in this year.

S Salgaonkar: Any pricing actions you have taken in Q1, especially in your AC business or expected to take?

Jasbir Singh: Since there is hardly any movement fluctuations of commodity side, but only the copper is a
commodity which is skyrocketing right now, the LMEs shot up which will be passed on to
customers definitely on a quarterly lag basis as we have done in past it will be done.

Moderator: The next question is from the line of Bhoomika Nair from DAM Capital. Please go ahead.

Bhoomika Nair: A couple of questions. One on the electronics side. For the quarter, have we included Ascent as
well for fourth quarter given that we've acquired?

Jasbir Singh: Yes. So it's only two months of revenue which has been added, which is Rs.43 crores which has
been added in this FY'24.

Bhoomika Nair: Rs.46 crores of revenues and how much would be the corresponding EBITDA?

Jasbir Singh: EBITDA will be Rs.5.8 (7.1) crores.

Bhoomika Nair: So you did speak about a lot of demand and favorable import duty which will help Ascent grow.
How do you expect this business to really pan out into FY'25, '26? And how should we pencil
in the growth when you're talking about 35% growth for the segment, I'm assuming this is
excluding the Ascent business. Would that be a fair statement to make?

Jasbir Singh: No, Bhoomika, this will be including the Ascent business, but Ascent on its own as a company
is witnessing a huge flow of customers and enquiries because of the anti-dumping duties and
anti-dumping duties imposed is still six layer of PCB which is generally for applications like
automobile, IT, and consumer durables, and already very big auto companies, large four wheeler
companies have started visiting, they're auditing us. Their process is to audit and then approve
in about 6 to 8 months ’time which they take. That process has started with almost five
customers. If I consolidate the demand of five customers, this company has a potential to grow
by 100% next year, but it will all depend, because we want to expand the capacities in line to
the government incentives. There are specs scheme which is available and there is state
incentives. So almost about 45% we will get that. So right now, we are taking inputs from
everybody. We are also meeting Ministry of Electronics and IT officials for clarifying us on this
specs scheme. And once the clarification comes and the customers commitments are onboarded,
then definitely we will roll on. But yes, we have a plan to bring up India's largest PCB
manufacturing plant for Ascent. Timing is very difficult to predict right now because it will all
depend on the government incentive. So we will move in line to that.

Sudhir Goyal: One correction here, that, like sir has said, operating EBITDA of Ascent for two months is Rs.7.1
crores instead of Rs. 5.8 crores.

Bhoomika Nair: So here in the electronics segment itself, right, I mean, 70% is really the consumer durable
segment. Within that, is it possible to understand how is RAC as a percentage of this electronic
segment?

Jasbir Singh: Out of that, almost 25% to 30% will be RAC.

Moderator: The next question is from the line of Rahul Gajare from Haitong Securities. Please go ahead.

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May 18, 2024
Rahul Gajare: So I've got two questions. One is on financial, and one is on a slightly longer timeframe. Now
last year in FY'24 we had an EBITDA of almost Rs.500 crores and we landed up booking almost
70% of that cost or expense under depreciation and interest. And this number has actually
increased in the last couple of years. I think that that number was holding around 50%, 55% and
that has gone to almost 70%. And with newer ventures and with more Capex that is lined up,
this number is I would think will increase at least on the depreciation side. Now, I understand
this is certainly not good from a long-term perspective. How do you intend to manage your
financials over the next, say, three to five years?

Sudhir Goyal: So, on the EBITDA front, like you said in the last year, it was Rs.470 (471) crores including the
other income and not the Rs.500 crores and operating EBITDA was Rs.475 crores, which is
excluding the other income and the non-operating expenses, plus ESOP we have not included
while calculating operating EBITDA. And this year, that Rs.470 (471) crores has become Rs.547
crores. Percentage has improved from 6.79% to 8.13%. And the operating EBIDA as apple-to-
apple comparison from Rs.475 crores, it has come to Rs.519 crores. Yes, on the depreciation
front and the interest, there is a big jump in both the expenditure because of the growth prospects
which we are looking into all the three divisions that is contributing big in the current financial
year and the last financial year. It is going at the same level. It appears will not get reduced in
the near future, but interest, we are targeting that it will not increase substantially in the current
financial year, and will be moving towards more profitability in the current financial year and
the future financial years. Margins are improving because of our component strategy and PAT
will also improve substantially in the current year as well as in the future years.

Rahul Gajare: So that is likely to remain high is what you're saying?

Sudhir Goyal: Appreciation, yes, but interest this year it might be.

Rahul Gajare: I'm looking at least numbers as a percentage of EBITDA because whatever operating
profit…you may include ESOP or other things, it's just a very high number basically that I just
wanted to understand your thought process over the next three to five years is what I was saying.
Fair enough. So it's going to be slightly higher for the next couple of years. Sir, my second
question is, this company has diversified significantly over the last couple of years from
electronics to train subsystems, including several MoU’s, stakes in company. How do you intend
to manage all these activities, do you have business head for this and what are the parameters
you as an M.D. would be looking for as far as performance of these JVs, MoU entities is
concerned?

Jasbir Singh: So it's all led by professionals at each level. We have a divisional , CEO who's heading the RAC
division, then we have components division CEO, electronics division CEO is right now sitting
with us, Mr. Sanjay Arora, and Mobility is headed by Udaiveer, who's not on the call today. So,
everybody, they are growing the product portfolio, they're adding customers profile, they're
increasing the wallet share within the existing customers and also increasing the geographic
profile of each division. And all these JVs and MoUs have been triggered by them only. I mean,
I was just the catalyst of going and signing the agreements largely, but it's all come from them
because every division is excited for their own growth path. So it's the three themes which we
are working on. Consumption theme is what consumer durable business is, electronics theme is

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what we all know about EMS and the infra theme which is led by the government initiatives on
the infra spending for railways and defense sector.

Moderator: The next question is from the line of Anupam Goswami from SUD Life. Please go ahead.

Anupam Goswami: My first question is on the Sidwal. When you are saying that you are going to expand Sidwal's
portfolio and venturing into new railways and segments, do you intend to keep the margins also,
I mean, do the margin will stay the same, how Sidwal has produced a little higher on the 20%,
23% margins, because we have seen some margin dilution coming in this quarter as well as the
ROCE?

Jasbir Singh: No, margins actually will continue to remain in that space. But as we add new product categories
like doors and gangways, they are slightly little margins of 18% kind of thing and couplers and
gears and pantograph are also in the range of 18% to 19%. So we expect on blended basis, I
think about 18% to 20% margin for the Sidwal products.

Anupam Goswami: You told about RACs or consumer durables growing at a 15%, 20%. Do we say this even when
brands are putting up their own factories, if you can share some light on this, how do we expect
to grow at such a rate?

Jasbir Singh: So brands have already put up their factories, capacities have been created and we shifted our
strategies for supplying more components to brand rather than finished goods. And that's why
there was a structural shift in our business model, which is now getting settled, because most of
the plants have started at the brand level and two more plants are yet to start, which I expect in
next quarter or so, those plants will also start. Post that, we will be supplying both, finished
goods and the components. So we have given this flexibility to brands, and as of now, we are
maintaining our 27% market share on the manufacturing footprint of complete room AC sector.
So, it doesn't matter to us whether we supply full air conditioner or a semi knockdown air
conditioner or just the components out of it. But, we as a B2B company focus on is how deeply
penetrated we are in each of the brands and are we having a substantial share of business in the
whole industry as such. And we expect this industry to keep on growing in double-digit growth
at least for next 10-years.

Anupam Goswami: Just related to this, what explains the YoY degrown in consumer durable this quarter?

Jasbir Singh: So we answered that in our commentary, but I will reiterate that we told that in last earning call
that next four quarters will be little shaky for the top line kind of a growth because the brands
have taken in-house. So, because of finished goods going less, the top line has got impacted and
we were also impacted by Q1 unseasonal rains. So, these are the two factors why the top line
has come down, but margin improvement has come because of the component strategy and other
product mix of the other divisions.

Moderator: The next question is from the line of Pulkit Patni from Goldman. Please go ahead.

Pulkit Patni: So the first one is in continuation of the previous participant asked, because while you haven't
grown the top line much on the consumer durable side, you're saying 27% market share in AC
components is maintained. So it should have reflected in our electronics division, right, because
part of electronics is also AC-related. I'm not sure why that 27% is not reflecting in the growth

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for this segment or have we actually on an overall basis lost market share in the AC segment,
that's the first question?

Jasbir Singh: No, if you see the total addressable market of air conditioners last year, earlier Q1 was a
dampener because of this unseasonal rains and that's when we had predicted that industry will
grow by 7% to 8%, but it has grown more than that in about 10% range, and the numbers of the
whole finished goods have come to about 9.3 or 9.5 million numbers. And if you convert them
into numbers and versus what Amber has delivered in the RAC and RAC components, we are
maintaining the share of 27%. So nothing has changed on that. But yes, it is not getting reflected
because we are not selling more air conditioners. So we are selling largely components and in
air conditioners we had pass through items with us, because compressors and refrigerant, other
things gets passed through which we are not producing which were supplied largely by the
brands to us. So that's not happening right now. That's the reason why it is not getting reflected.
But the right way to look at the reflection is from the margin perspective. If we were not
maintaining our 27%, we wouldn't have delivered this kind of margin and the percentage of
EBITDA wouldn't have improved.

Pulkit Patni: Sir, I probably I will have to understand that better because I think top line is where the market
share should reflect. So anyways, I will move to the next question. You have been talking about
a 30%, 35% EBITDA growth for the company over two to three years and it hasn't come through.
So, now that you have given some guidance in some of the sectors, are those numbers more like
aspirational numbers or we have clear visibility for example in the electronics division, 35%
growth and 7.5% margin, is that something that is part of our order book or is that part of our
aspiration that we'd want to get there?

Jasbir Singh: No, we've never told our aspirations. I mean, aspirations are of course to do 100% growth every
year. But yes, I mean, this 7.5% is because of the blend of our strategy for PCB and PCBA
business. Our PCBA business today stands at about 5%-odd and our PCB business stands at
about 18% to 20% range. So that is the blend why we are confident of achieving 7.5% to 8%
range of the consol electronic division bottom line number. And that's what if you see all the
electronic EMS who are delivering to defense, aerospace or industrials, they have better margins
and that's what we have done. So, we have shifted our strategies towards a better margin
businesses.

Moderator: The next question is from the line of Keyur Pandya from ICICI Life Insurance. Please go ahead.

Keyur Pandya: Sir, just one clarification. The 35% kind of guidance that you have given for the electronic
segment, now 1,240 crores of revenue for FY'24 organically probably around 1,200 crores
excluding Ascent. So we are guiding for 35% growth on this 1,240 crores revenue which will
include around 250 or 300 crores of revenue from the consolidation of Ascent as well and which
gives us the organic growth of 10% to 15%. Is that a correct understanding?

Jasbir Singh: Yes, that's a correct understanding. Our PCBA business and Ascent Circuit put together will
deliver us 35%. So we expect this to come in the range of close to about 1,800 crores this year.

Keyur Pandya: And just one follow up. So with all the diversification away from AC, I mean, is there any macro
reason why organic growth we expect to be lower than what we used to do in the last two or
three years, is it days or is it some macro challenge, if you can just throw some light?

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May 18, 2024
Jasbir Singh: No, no, no. Since our B2B segment in the contract manufacturing space has undergone a
structural shift because of brands taking assembly in-house, so that assembly the top line is not
coming and that's the reason we are not guiding any number. All what we are saying is that April
and May because of good season is delivering, we are moving at a run rate of 20% and if this
trend continues, the industry grows by 20%, we will definitely grow by 20%.

Keyur Pandya: I was just talking about the electronics segment. The organic growth of 10% to 12% excluding
Ascent consolidation, is there any company-specific reason or there is macro challenge?

Jasbir Singh: Organic, there is a little slight understanding here, because we were earlier manufacturing Noise
products in Il Jin, now those products were worth of about Rs.400 crores, will shift to the new
JV. So we are not including that. If we totally talk about the electronics part, it will be close to
about 35% growth and this is without Noise. If we add the Noise JV that will be another 450-
odd crores plus. So, it will be total of Rs. 2,200 crores.

Keyur Pandya: The second and last question is the kind of diversification that we are doing and adding
capabilities and the size that we are increasing from the Opex perspective or especially from the
employee cost perspective, should we see just normal increase that we see say 10% to 12% kind
of growth or because of the talent acquisition, that growth should remain higher for the next
couple of years?

Jasbir Singh: No, it should remain normal because we've already done the JVs and all. The new factories
which we have planned basically will bring us new revenue also. So it should be in the range,
not exponentially high.

Moderator: The next question is from the line of Natasha Jain from Nirmal Bang. Please go ahead.

Natasha Jain: Sir, my question is on your cash flow. So if I see your cash flow in FY'24, there is a very big
jump in loans to related parties. Can you just give a little color as to what these related parties
are and why has it increased so substantially?

Sudhir Goyal: So, we have given a loan to related parties, especially one is Rs.310 crores of OFCD which we
have given to IL GIN from Amber to acquire Ascent. That is a larger jump if you have seen. And
it is now on 30th of April, it has been converted into equity shares. And earlier we used to have
70% of IL GIN Holdings, now after that conversion we are holding 85.6% in IL JIN.

Moderator: As that was the last question, I now hand the conference over to Mr. Jasbir Singh for closing
comments. Over to you, sir.

Jasbir Singh: Thank you, everyone for joining on the call. I hope we have been able to address all your queries.
For any further information, please get in touch with Rohit or strategic growth advisor, our
investor relations advisors, and have a good day ahead. Thank you very much.

Moderator: On behalf of Amber Enterprises India Limited, that concludes its conference. Thank you for
joining us and you may now disconnect your lines.

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