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Orient Electric FY23 Financials: Revenue Remains Stagnant, PAT Falls 40% YoY

Orient Electric Ltd. [NSE: ORIENTELEC, BOM: 541301], an Indian FMEG manufacturer, has announced its financials for the quarter and year ended 31st March 2023.

Orient Electric’s FY23 Financial Figures

YoY Comparison of Orient’s Financials: Q4 FY-23 vs. Q4 FY-22 & FY-23 vs. FY-22

Comparison of Orient Electric Financials: Q4 FY-22 vs. Q4 FY-23 vs. Q3 FY-23

For the quarter ended 31st March 2023, the company reported a revenue of Rs. 657.91 crore from operations, and a corresponding Profit After Tax (PAT) of Rs. 24.62 crore.

Therefore, on a Year-over-Year (YoY) basis, Orient’s Q4 top line fell by 12.67% from Rs. 753.32 crore which was clocked during FY-22. Further, PAT too followed a downward trend, spiraling down by 49.53% from Rs. 48.78 crore logged for Q4 of FY-22.

Comparison of Orient Electric Financials: FY-22 vs. FY-23

Considering the entire financial year, in FY-23, the company reported a top line of Rs. 2,529.17 crore from operations against Rs. 2,448.37 crore in FY-22. Therefore, Orient’s top line has been largely stagnant on a YoY basis, portraying a meagre growth by 3.30%. However, PAT plummeted by 40.11% to Rs. 75.85 crore in FY-23 from Rs. 126.64 crore in FY-22.

As expected, Orient Electric’s Earnings Per Share (EPS) fell to Rs. 1.16 in Q4 of FY-23 from Rs. 2.30 in Q4 of FY-22. The company’s EPS for the entire 2022-23 fiscal stood at Rs. 3.57 against Rs. 5.97 for FY-22.

QoQ Comparison of Orient Electric’s Financial Results: Q4 FY-23 vs. Q3 FY-23

Quarter-over-Quarter (QoQ) comparison of Orient’s financials shows a 10.98% drop in revenue from Rs. 739.04 crore which was reported for the third quarter of the recently closed FY-23.

Further, PAT decreased by 24.39% on a QoQ basis from Rs. 32.56 crore, which was logged during Q3 of FY-23.

Orient Electric’s Segment-Wise Revenue Comparison

Comparison of Orient Electric Segment-wise Revenue: FY22 vs. FY23

Electric Consumer Durables: This segment brought in Rs. 1,751.81 crore or 69.26% of the company’s total revenue in FY-23. Compared to Orient’s revenue of Rs. 1,799.31 crore from this segment in FY-22, there has been a slight decrease of 2.64%.

Lighting & Switchgear: The company earned Rs. 777.36 crore as revenue from this business segment in FY-23 against Rs. 649.06 crore during FY-22. Therefore, there has been a healthy increase of 19.77% in revenue from Orient’s lighting and switchgear segment.

Company’s Insights on its Financial Performance

Speaking about the company’s financial results during its Earnings call, Mr Saibal Sengupta, CFO, Orient Electric, said, “In Q4 we had an impressive growth of around 12% in our lighting and switchgear segment. Fan’s performance was akin to market trends that was impacted by erratic weather conditions leading to muted consumer demand and high channel stocking. Air coolers and water heaters witnessed strong growth.

Further, addressing the company’s decision to diversify into the house wires sector, Mr. Sengupta also mentioned that the company got into house wires segment initially in order to extend the switchgear product line and complete the product offering but now we are getting enthused and we feel that we should be able to scale that up and therefore we are, we will be moderately attempting in some specific states with dedicated sales teams etc”.

About Orient Electric Ltd.: Orient Electric Ltd. is a part of the C.K. Birla Group, and is a manufacturer of FMEG products, lighting products and switchgear. The company has its presence in 35 countries. In India, the company is a major manufacturer and exporter of electric fans with about 60% share in the country’s fan exports.