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Orient Electric Q3 FY-24 Results: PAT Down 25% YoY, Revenue Flat

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Orient Electric Limited, [NSE: ORIENTELEC, BOM: 541301], an Indian Fast-Moving Electric Goods (FMEG) manufacturer and a part of CK Birla Group, has announced its financial results for Q3 of FY-24.

Orient Electric’s Q3 FY-24 Financial Performance

Orient Electric’s Revenue Comparison: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

YoY Comparison of Orient Electric’s Financial Figures: Q3 FY-24 vs. Q3 FY-23

Orient Electric reported a revenue of Rs. 751.93 crore from operations during Q3 of FY-24 against Rs. 739.04 crore clocked during Q3 of FY-23. This reflects a meagre increase of 1.74% on a Year-over-Year (YoY) basis.

Orient Electric’s PAT Comparison: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

The company’s Profit After Tax (PAT) saw a decrease of 25.28% to Rs. 24.33 crore during Q3 of FY-24 from Rs. 32.56 crore earned during Q3 of FY-23.

Consequently, Orient’s Earning Per Share (EPS) was Rs. 1.14 in Q3 FY-24 against Rs.1.53 during Q3 of FY-23.

QoQ Comparison of Orient Electric’s Financials: Q3 FY-24 vs. Q2 FY-24

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue increased by 32.64% from Rs. 566.90 crore during Q2 of FY-24. Following this, Orient Electric’s Q3 PAT jumped by 31.87% QoQ from Rs. 18.45 crore clocked during Q2 FY-24.

Segment-Wise Revenue Comparison of Orient Electric

Comparison of Orient Electric’s Segment-wise Revenue: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

Electrical Consumer Durables (ECD): This segment of the company bought in a revenue of Rs. 535.20 crore during Q3 of FY-24. This reflects a minor YoY decrease of 0.66% in the company’s ECD revenue which stood at Rs. 538.79 crore during Q3 FY-23.

However, on QoQ basis, the company’s revenue from its ECD segment jumped by 47.26% from Rs. 363.44 crore clocked during Q2 of FY-24.

Commenting on the company’s performance in its ECD segment during Q3 FY-24 earnings call, Mr. Deepak Khetrapal, Vice Chairman and Managing Director of Orient Electric, said, “Our appliances business in Q3 has done well. And that enabled us to have flattish ECD sales. Within fans, the categories and some of the assortments that we have in our portfolio, they’ve had better traction”. He further added that the company’s economy fans did not do well in the market during Q3 of FY-24 while its premium fans experienced healthy demand during the same period.

Lighting & Switchgear: Revenue from Lighting and Switchgear segment of the company showed a YoY increase of 8.23% to Rs. 216.73 crore in Q3 of FY-24 from Rs. 200.25 crore during Q3 of FY-23.

The company’s revenue showed an increase of 6.52% on a QoQ basis from Rs. 203.46 crore during Q2 of FY-24.

Speaking about the growth in Lighting & Switchgear segment, Mr. Khetrapal, said, “The reason why we have robust growth in our Lighting division is coming mainly from the fact that we’ve actually made up for…loss in sales numbers from the standard plain vanilla commodity kind of products into more value-added products”.

Orient Electric’s Stock Gains Over 4% After Announcement of Results

On the day after announcement of results, Orient Electric’s share price recorded a 4.09% jump from the previous trading day.

However, volume of trades of the company’s shares decreased to 11,04,000 trades on the day company announced its Q3 FY-24 financials against 16,29,000 trades on the day before announcing the financial results. This represents a decrease of 32.23%.

Orient Electic Plans Modernisation of Faridabad Plant

Speaking about the capacity expansion, Mr. Deepak Khetrapal stated that the company will be investing about Rs. 20 crore in its manufacturing facility at Faridabad. He further added, “….. But the plan definitely is to also make our Faridabad plant a little more modern than what it is there. It is a plant which was set up in the 50s, right? A lot of things need to be done there”. He said that the company will make this investment in small sums. “I mean, given the cash generation and cash on hand, I don’t think that should even be causing any amount of concern”, he added.

About Orient Electric Limited: Orient Electric Ltd. is a manufacturer of Fast Moving Electric Goods products, lighting products, and switchgear. The company has a 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.