Ladies and gentlemen, good day and welcome to the Q1 FY 2027 earnings conference call of Amber Enterprises India Limited. 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 this conference call, please signal an operator by pressing star then zero on a 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.
Hello, good morning and thank you all for joining the call. On the call today I am joined by Mr. Daljit Singh, our Managing Director, Mr. Sachin Gupta, whole-time Director, Mr. Sanjay Arora, whole-time Director of IL JIN Electronics, Mr. Sudhir Goyal, Group CFO. We have uploaded our presentation on the exchanges, and I hope everyone had an opportunity to go through the same. Let me first briefly talk about the strategic initiatives during this quarter. Firstly, on our manufacturing collaboration agreement with OPPO. Laying a strong foundation for the future growth, our group is set to foray into mobile phone through a manufacturing collaboration agreement with OPPO Mobiles India, expanding our presence in the largest segment of the electronics industry. The scope covers three brands, OPPO, OnePlus and Realme. I am pleased to update that the initial phase of the collaboration is progressing well.
Through a series of joint working sessions, we are working closely on key priorities and execution milestones. We have also onboarded a Chief Operating Officer for the mobile vertical, bringing along extensive experience and deep expertise from the mobile industry. On timeline, we are on course to commence the trial production by Q4 FY 2027 and commercial production to begin Q1 FY 2028. On the scale front, we expect to begin with around 8 million units in the first year, followed by a calibrated phase-wise ramp-up and expect to double to almost about 15 million, 16 million in the second year of operations. To reiterate, we view this as a beginning of a longer relationship with OPPO, and we will explore additional avenues of collaboration aligned with the Government of India's vision of Atmanirbhar Bharat, with a focus on increasing local value addition gradually.
Secondly, on the Ascent Korea Circuit expansion front, I am pleased to share that we recently conducted the groundbreaking ceremony of HDI PCB facility at Jewar, near Noida International Airport in Uttar Pradesh. The facility will bring together the complementary strengths of Amber Group and Korea Circuit Company to localize the production of HDI PCBs, which are currently heavily import dependent, leading to greater import substitution as well as creation of employment opportunities in the state of Uttar Pradesh. And the Ascent Circuits construction is progressing well for the multi-layer PCB facility at Hosur in Tamil Nadu. Switching to performance, consolidated revenue of Amber grew by 13% year-on-year, reaching INR 3,888 crore for the quarter. Operating EBITDA grew by 28% to INR 337 crore and adjusted PAT of INR 126 crore, recording growth of 19%. Adjusted PAT is before the exceptional losses. Let me now take you through the divisional performances.
Firstly, on the consumer durable division. This division reported revenue growth of 8% YOY basis. Let me emphasize the growth to be viewed in the context of large base of previous year of Amber in quarter one. The operating EBITDA grew by 12%, despite the cost headwinds from the commodity prices and minimum wage revisions. Looking ahead, for the full year, we expect the growth in tandem with the RAC industry growth. Coming to our electronics division. The division reported revenue growth of 29% to touch INR 985 crores. The operating EBITDA more than doubled to INR 107 crores and margin has expanded to 10.8%. While the journey towards value-oriented business is yielding dividends, however, during the quarter, the bare printed circuit board business witnessed margin compression amid steep rise in the copper clad laminate cost.
Typical of the bare PCB industry, second-tier suppliers experience a time lag of around two quarters for price pass on. The gradual price pass through the customers is underway and progressing very well. On the railway subsystem and defense division, revenue for the division grew by 18%, while the operating EBITDA declined by 26%. It largely impacted by product mix, continued commodity inflation, particularly copper, along with currency depreciation and minimum wage revisions in Haryana. For the full year, we expect this division to deliver growth of about 30%-35% for the full year as informed earlier. On the expansion front, Sidwal's greenfield facility of heating ventilation air conditioners, pantry, doors and gangways in Faridabad is now operational. Positioning us well for scalable growth and business expansion.
Overall, on the margin, let me reiterate, the business continue to face pressure from elevated commodity prices, currency depreciations, and minimum wage revisions, and expect this to persist through H1, which is temporary in nature and expect to normalize as macro environment improves. Now let me hand over to Sudhir Goyal, our CFO, for the financial highlights.
Hi. Good morning, everyone. Now let me take you through the consolidated financial highlights. Revenue for quarter one FY 2027 increased to INR 3,888 crores compared to INR 3,449 crores in the same quarter previous year, recording a growth of 13%. Operating EBITDA for the quarter increased to INR 337 crores against INR 263 crores in quarter one FY 2027, reflecting a growth of 28% year on year. For clarification, operating EBITDA is before impact of ESOP expenses, other non-operating income and expenses. Quarter one FY 2027 operating EBITDA is after adjusting for the consumption of inventory that had been fair valued at the time of purchase price allocation for the new acquisitions with Power-One, Unitronics, and Shogini, aggregating to an impact of INR 15.35 crores, representing increase in raw material consumption in the consolidated financial statements.
This is a non-operating nature of a raw material consumption expansion in the consolidated financials. Adjusted PAT for the quarter stood at INR 126 crore against PAT of INR 106 crore in quarter one FY 2026. This adjusted PAT of INR 126 crore also has an impact of INR 15.35 crore. If we add back that, this will further increase to INR 141 crore. Adjusted PAT of quarter one FY 2027 is before the exceptional loss of INR 123 crore. Let me take you through the divisional performance overview. Firstly, revenue and operating EBITDA details of our divisional performance are not comparable with the published segmental results. Starting with the consumer durable division, the consumer durable division reported revenue of INR 2,758 crore for the quarter compared to INR 2,560 crore in quarter one FY 2026, reflecting a growth of 8% year-on-year.
Operating EBITDA for the quarter increased by 12% year-on-year to INR 214 crore compared to INR 192 crore in previous year. Coming to the electronic division performance, revenue for the quarter increased to INR 985 crore compared to INR 766 crore in quarter one FY 2026, reflecting a strong growth of 29% year-on-year. Operating EBITDA for the quarter recorded a growth of 117% year-on-year and stood at INR 107 crore compared to INR 49 crore in the previous year. Moving to railway subsystem and defense divisional performance, the revenue for the quarter increased to INR 144 crore compared to INR 123 crore in quarter one FY 2026, reflecting a growth of 18% year-on-year. Operating EBITDA for the quarter got impacted by the product mix, commodity inflation, minimum wage revision, and resultant decline of 26% against previous year, from INR 22 crore to INR 16 crore.
The division is expected to deliver 30%-35% revenue growth in FY 2027. Thank you. I request the operator to please open the floor for Q&A.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A brief disclaimer, in order to ensure that the management is able to address questions from all participants on the conference, please limit your questions to two per participant. The first question is from the line of Santhosh Seshadri from Avendus Spark. Please go ahead.
Hi there. Thanks for taking up my question. My first question is on the mobile business and the export opportunity. Can you give us some color on any discussion with OEMs around this export opportunity and potentially tapping in the benefits of PLI? Also, if you could walk us through the eligibility criteria for your business and whether you qualify for the same.
Well, Santhosh, on the mobile business, because we have yet to start from January. We want to do a gradual ramp-up because this is a new segment we are adding up. Yes, we are in discussion with them about the export opportunities, and they are also excited about it. But it is too early for us to comment because we want to first go and launch this product category as a new product category for Amber, which will be starting from almost about mid of quarter four somewhere, and then commercial production has to start from 1st of April. But moving ahead, I think once we complete one year of our first domestic production, then we may think about the export opportunities.
On the second part of the question, are we eligible for this PLI, given our HDI PCB expansions?
Yes, there are three approvals which we have received on the Electronics Component Manufacturing Scheme on the HDI PCB part. One is for INR 3,200 crore in Jewar Airport, then about INR 1,000 crore in Hosur, and INR 500 crore in Shogini, Pune. All three have been approved.
Sorry to interrupt. Just on the PLI benefits related to backward integration in the mobile, are we eligible for that? Given that we are also expanding-
Draft guidelines have yet to come. Let the draft guidelines come, then we will be able to comment or answer to your questions.
All right. On my second question, just on the PCB business, can you give us some color on the pricing structure here? Are there any fixed price contracts? If yes, what proportion of the business is under fixed price contracts, and when does that come up for renewal?
No. You see, we are a B2B company, Santhosh. We pass on currency and commodity issues to the customers. In Amber, we can do it in quarter lag because we are Tier 1. At PCB, we are Tier 2, so there are two quarter lags. But what we have seen in July is that there are some customers who have increased the cost, so our margins are coming back to where it was. Let us hope that both Shogini and Ascent will be able to get it, but I want to tell you that copper clad laminate, the prices continue to increase. So getting price revisions from customer has become a regular kind of event for us. It will keep on increasing because of artificial intelligence and data center requirements, and there is a lot of shortage of copper clad laminate also. So there is a strategic inventory positioning also happening.
But we are able to pass on the customers all the price increase we have.
Any color on the quantum of price increase that we could?
Sorry to interrupt. Mr. Seshadri, may we request you return to the question queue for the follow-up.
Thank you.
Thank you. The next question is from the line of Aditya Bhartia from Investec. Please go ahead.
Hi. Good morning, Jasbir.
Hi, Aditya.
Hi, Jasbir. First question is on the margins that we recorded. So in this quarter, pretty much we haven't really seen any impact of raw material inflation or of rupee depreciation, at least on the consumer durable part of it. So how should we see it as we go forward? Was there any benefit of inventory that we may have been carrying, and how's the outlook for margins looking like?
I think it is a mix of a couple of things. I will allow Sachin to answer your question, Aditya.
Hi, Aditya. Actually, you know what has happened, because everyone knew that there was a QCO enforcement for the compressors and copper IGT. So there was a lot of stocking that was happening. So obviously that stocking of the compressors and copper has helped us to secure, I would say, the raw material at a better price. This was the one part. The second part was that, so whatever products probably we have made in this quarter were majorly driven by the premium side. So whatever products we have made are majorly on the five-star category and the two-ton category. So because of that, the realization of the margins are better. But every quarter, this mix keeps on changing. I think the better is to see on the annualized basis. So on the annualized basis, I think so we should be in line to our projections only.
It is not like that the margins in this quarter will be reflecting the complete year outlook.
Sure. And when you mentioned that in H1, we are likely to be seeing some margin compression, what kind of an extent are we looking at?
No. We are not looking at any margin compression. What I am saying is that the improvement in the margins for this particular quarter should not reflect as an image for an outlook for the complete year. Because this particular quarter, we had seen two benefits. One is the pre-stocking of the compressor and copper. Second is that the production mix in this quarter, we could see from our data, the major demand was for the premium product categories.
Understood. That is helpful. My second question is on the disruptions that we have seen on the IL JIN side, the unfortunate incident that happened. Is it something that is impacting production or things are going smoothly over there?
Aditya, basically, we have received permission to reconstruct the facility just yesterday from the departments. The assessment is undergoing, and we will intimate the exchanges. Let me just tell everybody on the call that the guided number of what we did last quarter, we are hopeful that we should be in line to deliver, despite this disruption.
On annual basis.
Perfect, sir. Thank you so much.
Thank you. Ladies and gentlemen, you are requested to please limit your questions to two per participant. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Hi, team. Thanks a lot for the opportunity. My first question is on the electronic division. While you have reported about 29% revenue growth, if I kind of strip off the acquisition benefit, it is not there in the base quarter. The growth seems lower. If you could just tell us why is that the case, and how should we look at the guidance for FY 2027 for the division for both margins and top line? That is my first question.
Sanjay, will you take this question?
Yes, sir. Am I clear? Can you hear me?
Yes, audible.
All right. Hi, Dhruv. Actually, what has happened is that in the EMS segment, just to give you clarity, we have three segments in electronics division now. One is EMS segment, the other is the PCB segment, and the third we categorize as industrials and automation segment. In the EMS segment, yes, the growth compared to last year, same quarter, got a little stunted. The main causes have been that our customers who are in the consumer durable segment, they were carrying quite a lot of inventory, and so the order book got reduced. Then some of the customers, they have shifted from sales to job work kind of category, so obviously the revenue got impacted because of that. The energy segment, that is the smart meter segment, degrew. The smart watch segment also degrew.
Apart from this, let me assure you that our full-year guidance for the EMS segment, whatever we gave, still remains intact. We are quite confident we will achieve that.
Thanks, sir. Very clear. Sir, the second question is on the mobility side. Obviously we have seen a margin compression because of raw material and even labor-related issues. In terms of your order book, assuming that is a fixed price sort of an order book, do we see this pressure going forward as well? How should one think about the sustainable margins in this vertical starting in the second half? You mentioned about the first half. Thanks.
Dhruv, there are two, three factors here. First is, in the Indian railway segment, these are fixed price contracts. You cannot go to railways and say that my commodity has changed or my currency has changed. You need to fulfill the tender obligations as you have submitted the tender. Second, apart from the railway, the other businesses like metro division business, defense business, the bus air conditioning business, the data center air conditioning business, that has a price variation clause. Incidentally, in this quarter, the product mix was such that the first few products, the new products which we received the orders, have been supplied through principals directly because our factory has just started. Our approvals now are in the process. But because we had taken the contracts, the first two to three trains of each have been supplied directly, which was just a pass on from us.
That has also brought down the margins, and because it was just a trading which we did. Second is, of course, the factors of currency and commodity and minimum wage in Haryana, which was shot up by 35% in one go. All these factors are there. But let me give you the guidance from our side. On the revenue front, 30%-35% looks doable, and margins in this financial year, we look at around in the range of 15%-16% for this division.
Got it, sir. Thanks a lot. Over to you.
Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Hi, thank you for the opportunity. I can see the minority interest have turned negative this time. Why is that so? A sharp swing.
Yeah. You know that this particular quarter, we acquired additional stake of Ascent Circuits. Ascent Circuits, there is no minority interest, but minority interest has reduced.
Okay.
Hello? No.
Yeah.
Just come up with the question again. Minority interest has reduced.
We can see earlier minority interest was a positive number what was allocated to the non-minority shareholder, but this time this number has turned negative. Just for example, last quarter it was a INR 28 crore positive number. Now it is more like a -INR 19 crore. There is a sharp swing of INR 50 crore in this number. So why is that so?
Maybe we can take that offline.
Maybe I need to check that, why it has happened. I will come back to you separately after this call.
Understood. Got it. What is the EBITDA margin guidance for the consumer durable business?
As of now, we are not giving any guidance in terms of percentage because that all depends on the product mix as well as the prices of the commodities and the foreign currency. It is very difficult to give you any guidance. We maintain that on the quarterly lag basis, we are able to pass on the price hike and the commodity exchange rate difference as well, and we get the margins accordingly.
It is a seasonal business also. You do not know how the Q4 season will pan out to be. That is why to guide any number here will be very difficult for us.
Got it. Last question from my side. As discussed earlier also, how has IL JIN fire will get it the guidance you have maintained for the division, but what will be the impact on the business because of this? What sort of impact should we expecting due to?
Yeah, as I explained that we have received a permission just yesterday from the authority. So today, the work will start, and we will reassess the complete loss. But let me tell everybody on the call that we are adequately insured, so we don't see any issues on the refurbishment side or extra CapEx which we will have to bring in because the building inventory, machines, everything is insured properly. The impact on the business side, because of our multi-geographic location in IL JIN, we have immediately been able to shift businesses to other locations. So we don't see a very big impact, but exact amount we will be assessing, and we will let you know within the coming week.
Understood. Got it. That is helpful. All the best.
Thank you. The next question is from the line of Sameet Sinha from Macquarie. Please go ahead.
Yes, thank you. A couple of questions. Jasbir, first, I wanted to understand in terms of the increase in input costs and how you pass on to your customer. You explained about Tier 1, T ier 2. But obviously, this problem has been around for a while. What I wanted to understand was, in the third quarter of last year, September quarter of last year, sorry, you had faced that issue of higher input costs, and you had mentioned CCL at that time. How does it go? Do you get the price increase that you ask for in that quarter, you are getting it now? Or is it when the price increases, you get it as of current stock prices? That's my first question, and then I have a follow-up.
Sameet, basically, in consumer durable, we have two types of businesses. One is finished goods and second is components. Then in electronics, we have again, PCBA, PCB. Different businesses have a different kind of a lag to increase the cost or pass on the cost with the customers. In consumer durable, we are Tier 1, so we are able to pass on currency exchange or the commodity changes. Impact of the total of that is passed on the next quarter. Just to give a little bit brief analysis on this. Supposing we are in middle of the quarter two now, the average commodity price and currency price of this quarter will become the base for the next quarter.
When we start beginning to send the invoices in quarter three on first date, they will be having the impact of the cost changes, either through currency or commodity. The full impact will be reflected in that. That is how the pass-on happens. PCBA also business, same things. The only PCB business is where we are T ier 2, where it requires two quarters. That means the average of this quarter, and we will be able to pass on them the cost not from the next quarter, but from the quarter four onwards. That is how in the PCB business happens. I hope I have been able to answer your-
Thank you for that.
Yep.
Yes, definitely. That is very helpful. My second question is, again, relating to these higher input prices. Things like CCL, what is the potential for this to be manufactured in India? Do you see an opportunity that in the next year or two we might have some capacity that is localized versus having to import everything, or we are going to be exposed to these price variations for a number of years?
Sameet, there are-
And when I say we, not just you building a CCL plant, but as a country.
As a country, the first CCL plant is almost operational now, Wipro's. I think they have started meeting the customers. There are two more CCL plants being planned, which we are aware of. On the other side, Amber is also in discussion at a group level with the prospective JV partners. We will let you know once it matures. Looking at our growth phase for PCB business, this becomes an important backward integration for us to have going forward. I think by 2029, 2030, we expect that we should be having our own CCL plants by then.
Okay. Thank you very much.
Thank you. The next question is from the line of Natasha Jain from PhillipCapital. Please go ahead.
Thank you for the opportunity. This is just one question. In terms of consumer durable, you had mentioned that on account of a high base, the growth looks a little moderated. Just wanted to understand, this base would be a normalized base, right? Assuming all the customers are going to stick with us for the longer term.
Sachin?
I am really sorry, can you repeat the last line?
Sure. What I am wanting to understand is, given consumer durable revenue top line growth is slightly moderated, and the reason cited was that it is on a high base. Just wanting to understand, this high base will be a normalized base going forward, right? Because these customers would be sticking to us for longer term.
Yeah. Perfectly. So this base will be a normalized one. If you see from last, probably, I would say four years, you can see the pedigree of the customers that we are catering to is very different. We have always been addressing this, that in market, there are two product categories that are operating. One is at an opening price point, one is at the high-value side. As a strategy, probably we have always tried to stick on the high-value side and the premium side. Now with the light commercial air conditioning portfolio getting more bigger for us, obviously the premiumization of the product or the realization of the product is getting more and more better for us.
Got it. Sir, so can I assume that on this base, you mean that you would grow in line with industry which is assumed to be approximately 15%?
Yes. We are in line with it.
Got it. Sir, one more question. In terms of the festive season, we understand last year there was a trade confusion in August. Now the window for Diwali is a little larger. So are you expecting any strong demand coming off because from AC?
Like last year, this year again, there is some confusion in the market because from July 1st.
There is a regulation change in our product category. The tonnage has to be mentioned on the BEE label. Earlier in India, you were classifying the product as a three-star or a five-star machine, but the tonnage was not mandatory. From July 1st, the tonnage has got mandatory. Because of that, what is happening is that in the market there is a mixed inventory, like in a particular category, like 1.5 ton, the machines are available from 4,400 W- 5,200 W. What we are expecting is that by Diwali, we are expecting this inventory to be liquidated. Post that, we see that the market to be at a balanced level, and we expect a strong summer starting from November month. We are not expecting very high demand on this coming festive season.
This is what it looks like now, but obviously being a seasonal business every month, this can change.
Natasha, this is not a festivity product. They have shifted to mobiles and smartwatches.
Got it. Understood, sir. Thank you so much, and all the very best.
Thank you. The next question is from the line of Nirransh Jain from BNP Paribas. Please go ahead.
Hi, sirs. Thank you for the opportunity. Sir, just wanted to recheck on the electronics guidance. For the full year, we have earlier given a 40%+ guidance. Are we sticking to this number? Just wanted to recheck on that.
Yes, as guided earlier, we hope that we will be able to deliver that number.
Sure, sir. Secondly, also wanted to check if you can share some update on this mega AC plant, for which we have also done some groundbreaking ceremony, and as in what is the capacity plan here, what kind of CapEx we are looking over the years in a phased manner.
Basically, the groundbreaking of the plant, because these are two plants in vicinity to each other, and it was a big function which we organized, where the Chief Minister of Uttar Pradesh and our honorable union ministers were there to inaugurate, do the groundbreaking. So the HVAC plant construction has started. The plant of air conditioners, that construction will start next year. So we are just at a planning mode right now, and we expect that 2028 the construction will start, and by 2029 it will start the trial productions.
Sure, sir. Lastly, just wanted to recheck on this minority interest. So is the understanding correct that this negative minority interest could be on the account of exceptional item related to the Ascent stake?
Yeah.
If you can give me the adjusted minority interest number.
Yeah, I was about to tell that I have just checked that earlier question has come up for the minority interest negative. If you see in our overall group, there are few of the entities where we create the minority interest. Like in IL JIN, we don't have a put call option, so we create a minority interest for a shareholder who is holding 8.96%, around 8%. Then there's a Styltech, there's a minority interest, then Unitronics and IL JIN Technologies. All these entities fall under electronic division, where this exceptional loss of INR 123 crore has occurred. That is why, on a net basis, there's a loss in the electronic division after the exceptional item, which has been allocated to the minority interest. That is the reason that INR 19 crore is coming negative, and INR 22 crore is coming positive in the other than minority interest.
Sir, what would be the adjusted minority number?
Sorry to interrupt, Mr. Jain. May we request you to turn to the question queue for a follow-up question?
Maybe I'll just answer, I understand. We need to calculate, and we'll update you that how much is the minority interest in case there's no exceptional loss was there. Yeah.
Next question.
Yeah, next question, please.
Thank you. The next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.
Yeah. Good morning, team. Thank you for the opportunity. First, I wanted to understand what is the extent of impact on the PCB margins, if you could quantify, and how do you see it? You've mentioned it is getting passed on with a lag, but at the same time, the costs are rising. How do we see the margins, if you could give us some sense, for next two quarters?
Achal, the standard PCB margins which we were enjoying earlier was about 16%. Right now, we are hovering around 12%. We expect this to come back gradually because the price increases have started happening. On a gradual basis, I think on a normalized level, this business is in 15%-16% range. Currently, it will continue to be impacted for next quarter as well. From quarter three onwards, you will see the margins coming back to normalized level.
No further increase.
Only subject to no further CCL price increases are happening.
Commodity price hike. Yes.
Understood. Sir, if you could give us some sense in terms of the. You said you are hopeful of achieving that 40% revenue growth guidance for electronics. If you could give us some sense in terms of the key drivers for them, in terms of which particular business or entity will drive that. A related question is that, at an aggregate electronics business level, what is the minority interest percentage we should work with? If you could clarify, I think that would be wonderful. Thank you.
See, on the strategy, we are a B2B company, and for a B2B company, scale and efficiencies both play a very important role. If the scale teams can balance the volume and value of the businesses, value type of businesses, then it becomes a very unique proposition, and that's what we are attempting to do here. We started our journey with the PCBA business in consumer durable, which are at a lower margin, but then we kept on expanding our applications. From 2018, when we acquired this company, till 2023, we were very focused in PCBA, but we were expanding our applications. We added hearable wearable, we added telecom, then we added automobile business for two-wheeler and four-wheeler businesses, and some small defense portfolio also got added. That was the organic play which we did.
On the value side, especially on the industrial side, we acquired companies of Unitronics and Power-One. They are also growing pretty well. Then as a backward integration strategy, first step, we chose PCB as our one-step vertical. PCB again is a value-driven proposition. It's complete import substitution. On the strategy side, we are just balancing the volume and value play. On the volume side, we have just added many other applications. At value side, industrial has got added. Now we wish to add medical and defense and aerospace moving forward for next three to four years' time. Teams have been formed, and they have started working on that, both organically and inorganically. We want to create a very unique EMS platform, which is balanced on the scale side in volume and value.
Value is which gives you entry barriers, stickiness, and margins, and volume is which gives you scale. On the backward integration side, the first part which we have picked up is the PCB world. We are quite excited about this journey which we are developing. I think in last seven years of journey, we have seen margins going from 2.8% in 2018, when we acquired the company, to 10.8%. In fact, if PCB business was at a normalized level, this 10.8 would have been 12 today but that's it. That's on the strategy side. On the minority interest, I will tell Sudhir Goyal to answer your question.
Yeah. Hi, Achal. On the minority interest, if your question is from the perspective of how much the profit will be allocated to the minority interest, it will be difficult to give you the specific percentage. The reason is that every entity, wherever the minority interest is there, will depend on the profitability of that particular entity. Like in IL JIN, we create a minority interest. In Unitronics, we create a minority interest. So a standard percentage will not work to calculate the group-level minority interest allocation.
Got it. Sorry, to hop on the previous question, sir, with respect to the growth-
Sorry, just a minute.
Sorry.
Mr. Lohade.
Just a clarification. If I may go ahead.
Yes, please.
Yeah. Sorry. To hop on that, sir, 40% growth guidance, I was just curious to know which segment will drive in terms of PCBA or PCB, and within PCBA, which particular vertical. That was-
All three divisions within the electronics division is growing. PCBA is growing. We are adding new customers, and we are adding new applications. On PCB, you all know about our journey. On the industrial automation, industrial side, industrial power electronic side also, we are witnessing a good growth. All three put together will lead to this 40% mark.
Got it. Thank you. I will fall back in the queue.
Thank you. The next question is from the line of Bhavik Mehta from JP Morgan. Please go ahead.
Hi. Thank you. Firstly, just a couple of clarifications. On the consumer durable, you had mentioned that it will grow in line with the industry, and that number was 12% odd last year you had given. Does that number still hold? Secondly, again, a clarification on the EBITDA margins. Last time you had said overall margin will decline 50- 100 basis points for the full year given the RM inflation. How one quarter stand out again, does that guidance hold or do you want to change that guide?
Well, currency and commodities are still very volatile. I think we were earlier expecting 50- 100 basis points. Now we think that these margins are normalized at where we are, in case there is no further disruption in the currency and commodity. On the consumer durable question, I think Sachin, you can answer.
Yeah. Your question was that does our guidance stand intact? It is intact to the industry growth. It can vary between. It should range between 13%-15%. We are in line to that.
Okay. The second question is on OPPO partnership. Do we have any clarity in terms of how the revenues will be recognized? Because I think last time you had mentioned it could be either on a sales purchase basis or on a drop-box basis. So any clarification we have got from them, or is it still work in progress?
It is very at the final stage. I think another 15-20 days, the clarity will come, and we will let you know.
Okay. And just lastly, last month the board had approved fundraising options at the IL JIN level. So any progress on that in terms of some quantum and where would the funds raised will be utilized in terms of which part of the IL JIN business?
Currently, it is difficult to tell you the exact quantum. We have given the clarity that we will be raising up to INR 5,000 crore. We will tell you that whenever we finalize that how much fundraise is happening, we will update everyone that how much is the fundraise.
In which form also we are raising a funding, we will update you as soon as we finalize the same. This is the enabling resolution we have passed from the board.
Okay, got it. Thank you.
Thank you. The next question is from the line of Inderjeet Agarwal from CLSA. Please go ahead.
Hi. Thank you for the opportunity. Jasbir ji, three questions. Number one, at OPPO level, we understand the revenue recognition is still being finalized. But have we decided will it be at Amber Group level or at IL JIN level?
Inderjeet, both are at a final level because there is an ERP integration which has to happen between both the groups. Looking into that, we are evaluating whether it should be in IL JIN or whether it should be in Amber. Whatever suits and whichever formalize the timelines, we will go for it. I think we have to formalize it before the mid of September. We will let you know in the next call exactly.
Sure. This is helpful. Two questions to Sudhir ji. Sir, first, when you calculate your minorities, what stake do you take for IL JIN, for the entity IL JIN? Not for Ascent and all, that gets consolidated in IL JIN's pack. But when you are calculating the minority at IL JIN, what stake do you calculate?
We calculate based on the diluted basis. We consider around 60 point something percentage after reducing for Mr. Sim, who is the previous promoter shareholder, and the CCPS issued to the private equity players who has invested in IL JIN in last year. All those, that is around 40% or 39% has been treated as a minority interest, and balance is treated as other equity.
Mr. Sudhir is roughly 9%, right? If I recall correctly.
Yeah. Around 8.7% or 8.6%, something like that.
Sure. Last question, what is the net debt number as of March 26th and as of June 26th, the way you calculate?
For IL JIN or at a console level?
No, for Amber as a group, at a console level.
Just a sec.
And also for IL JIN, if you can.
Last-
I will come after the next question.
I will just tell you after the next question.
Sure, sir. Sure. That is all from my side. Thank you.
Thank you. The next question is from the line of Rahul Agarwal from Ikigai Asset Manager . Please go ahead.
Yeah. Hi, good morning to everyone on the call. Jasbir ji, just one question. I just want to appreciate the electronic growth better. We all understand that it's in a growing phase. We are talking about 40% growth this year. Just run through some bit of revenue breakdown between IL JIN and Ever versus Ascent and versus the newly acquired entities. Just give us a revenue build-up over the next three years. It will really help us to appreciate the growth better and the margin profile better. So just take us through whatever is comfortable in terms of IL JIN and Ever's business growth this year, next year, FY 2029 capacity increases. That will really help us to shape up the overall growth better. Thank you so much.
Yeah. As I explained that all the three verticals within electronics division are growing. PCBA, we are growing the applications, and we are adding customers in existing applications. PCB divisions, you all know about the CapEx which we have announced, so you can map out along with the CapEx. Generally, the asset turns in this business is 0.8 to one, depending on what level of complexity of the printed circuit boards you are producing. We have already announced CapEx of close to about INR 3,200 crore in Jewar and about INR 1,000 crore in Hosur. The plant will be up and running this financial year of Hosur. For Jewar, it will take about 18 months from now for the trial productions to start. So that is on the PCB side.
As far as on the power electronic side, which comprises of programmable logical controllers and human machine interface, HMI, and all the power electronics products, solar inverters, UPS, BESS, there's a very decent growth of 35%-40% coming in. But it will be very difficult to give you a three-year kind of a number, because all the three divisions, all the three verticals, I would say, in the electronics are moving very positive. So we are very excited with this journey. As we continue our PCB and power electronic side, which is a value proposition for us, and that's the reason why we guided earlier that we will surpass a double-digit number on the margin side, which we have achieved. We expect that we will be able to maintain it. But yes, on the growth side, I think it's a big ocean.
Total addressable market for all the three verticals is huge. We are sitting at import substitution. We are sitting at $185 billion of consumption of electronics. We were not present in the mobile segment as a group earlier. We have added into that also. On the electronic side, even if you have to categorize out of that $185 billion, just the PCB part, then the PCBA part and power electronics part, it's a total TAM of about $16 billion-$17 billion at the moment. This $185 billion is going to about $300 billion business as usual. Though there are a lot of efforts from government side that we need to achieve $500 billion. But even if we take a conservative approach of $300 billion by FY 2030, business as usual case.
You can imagine the TAM of current INR 16 billion for three verticals going to about INR 35 billion-INR 40 billion. We want to be a dominant shareholder in this TAM. That's the strategy, to be honest. But giving a number is very difficult at this moment in time.
Got it, Jasbir ji. Broadly, if we consolidate all the entities, we are looking at INR 5,000 crore kind of sales number for the entire electronic business this year, and aspiration, we are looking at doubling that in three years. Is that a fair statement to say?
Well, please don't put some words in my mouth. I mean, we would like to definitely be one of the largest diversified electronics EMS platform moving forward. That's all I can say.
All right, Jasbir . Got that. Thank you so much to the entire team, and thanks for answering my question.
Thank you.
All the best. Thanks.
Yeah, thank you.
And Sudhir.
I will just update one last question, which was asked by, I think, Achal, that the net debt level as on June 30 is around INR 1,225 crore, and last year, March 26, it was around INR 510 crore.
Inderjeet asked.
Inderjeet. I think Inderjeet has asked.
Yes.
Sorry.
Thank you. The next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please go ahead.
Yeah. Hi, thanks for the opportunity. Just wanted to understand, as you said, commodity inflation, you are able to pass through. In commodity de-inflation kind of scenario, do you hold on to the margins or again you have to pass it back? Just wanted to understand so that, is there any additional margin which will sit in if the commodity price inflation reverses?
You got to be very fair with your customers. If it goes down, you have to pass on that also at a quarterly lag. Now, you can be lucky if it is a peak season, so you can earn little more, but sometime they get lucky. That's a normal thing. But over period of few quarters, I have seen that because of a B2B nature of the business, you are able to pass on. Positive, negative, you have to do it.
Got it. And sir, because you said the EBITDA margin, if adjusted for the copper inflation, would have been closer to 12%, can we assume that on a three to four year basis, on the electronic division, we can achieve a margin of closer to 14%-15%, or that is hard to achieve? Including everything, PCB, PCBA, everything put together.
On the electronic side, as I explained that we have traveled our journey from 2.8- 10.5, 10.8 now. Yes, our endeavor is definitely to go upward north. But giving a year and giving a number is very difficult. That's the endeavor which team is attempting. That's the strategy that we have to add more value-added businesses. And that's how we will maintain this double-digit number moving forward.
Got it. Fair enough. Thank you so much. That is it from my end.
Thank you. The next question is from the line of Deepak from Sundaram Mutual Funds. Please go ahead. Mr. Deepak, your line has been unmuted. Please go ahead with your question. As there is no response, moving on to the next question. The next question is from the line of Rabindra Nayak from Nirmal Bang . Please go ahead.
Good morning, sir.
Good morning.
Sir, can you please give the breakup on the consumer durables side into RAC and non-RAC, sir, in this quarter?
RAC and non-RAC, actually, it's a standard. We have been operating in a range of 75/25 kind of a range. When I say RAC, it means RAC finished goods plus RAC components.
Okay. So the pure RAC would be how much? Is it 70%?
It should be around 60%, 55%-60%. It keeps on changing from quarter to quarter because sometime customers ask us to supply semi-knocked down kits, which comes under components. Sometime we have to give full boxes, which is finished goods, and sometime only the components. So it's very difficult to map on quarter to quarter basis.
Okay. Sir, thank you, sir. Thank you very much.
Thank you. Ladies and gentlemen, due to time constraints, we will take that as the last question for the day. Now I would like to hand over the conference to the management for closing comments.
Thank you everyone for joining the call and wishing everyone a very happy Independence Day in advance. For any further information, please get in touch with our Head of IR, Ravi Kharbanda, or Rohit Singh, our Strategy Growth Advisor, our investor relations advisors. Thank you very much and have a good day ahead.
Thank you. On behalf of Amber Enterprises India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.