CRISIL has revised its outlook on the long-term bank facilities of
Amber Enterprises India Ltd (Amber; part of the Amber group) from 'Stable' to 'Positive' while reaffirming rating at 'CRISIL A+'. The short term rating has been reaffirmed at 'CRISIL A1'. The revision in outlook reflects significant improvement anticipated in business risk profile because of few favourable changes in the domestic air-conditioning (AC) manufacturing ecosystem.
The revision in outlook also factors in the impact of Covid-19 on the AC industry in fiscal 2020 as an entire summer season was lost. Group registered revenue of Rs667.4cr in H1 FY21, decline of 68.3% from Rs2,103.6cr in H1 FY20. Profit after tax was also down to negative Rs21.08cr in H1 FY21 compared to positive Rs87.6cr in H1 FY20. Despite decline in revenue and profit, strong financial risk profile aided by recent Qualified Institutional Placement (QIP) of Rs400cr supported the overall credit risk profile of the group.
Amber Enterprises ended at Rs2,327.50 per piece up by Rs36.45 or 1.59% from its previous closing on the BSE.