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Orient Electric Shows a Good 20% Growth in Top-Line

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Orient Electric Limited, [NSE: ORIENTELEC, BOM: 541301] a Fast Moving Electric Goods (FMEG) company has posted its financial results for the quarter and year ended March 31, 2024.

Orient’s Revenue Comparison: Q4 FY23 vs. Q4 FY24 & FY23 vs. FY24

Orient Electric’s Q4 FY-24 & FY-24 Financials

Orient’s top-line for FY-24 stood at Rs. 2,812.12 crore and Rs. 787.66 crore for Q4 FY-24. Subsequently, The Profit After Tax (PAT) for Q4 FY-24 and FY-24 were Rs. 12.80 crore and Rs. 75.27 crore, respectively.

Furthermore, Earnings per Share (EPS) stood at Rs. 0.60 for Q4 of FY-24 and Rs. 3.53 for FY-24.

Q4 FY-24 Revenue from Operations Sees a Good 20% YoY Increase

Orient’s Revenue comparison: Q3 FY24 vs. Q4 FY24

While comparing the company’s Q4 FY-23 revenue of Rs. 657.91 crore and its Q4 FY-24 top-line, a good growth by 19.72% is visible.

An increase by 11.18% can be seen in the top-line comparisons of FY-24 and FY-23. For the financial year 2022-23, Orient’s revenue stood at Rs. 2,529.17 crore.

From Q3 FY-24 to Q4 FY-24, there was a mild increase in the revenue by 4.75%, from Rs. 751.93 crore.

Orients Q4 FY-24 Profit Exhibit a 48% dip YoY

Orient’s PAT Comparison: Q4 FY23 vs. Q4 FY24 & FY23 vs. FY24

Orient’s profits for Q4 of FY-24 and for the entire FY-24 show an overall decrease YoY, despite a good growth in the top line.

Orient’s PAT Comparison: Q3 FY24 vs. Q4 FY24

The Year-on-Year (YoY) comparison of Orient’s PAT for Q4 of FY-23 and its PAT in Q4 of FY-24 shows a decrease of 47.99%. The company had reported a PAT of Rs. 24.62 crore during Q4 of FY-23.

Considering the overall year-end profits, the decrease is less than a percent, dropping by 0.76% to Rs. 75.27 crore in FY-24 from Rs. 75.85 crore during FY23.

Profit for the consecutive quarters Q3 and Q4 of FY-24 saw a substantial decrease by 47.39% from Rs. 24.33 crore.

Analysis of Orient’s Q4 FY-24 & FY-24 Segment-wise Revenue

In Rs. Cr.

Orient’s Segmental Revenue Comparison: Q4 FY23 vs. Q4 FY23 & FY23 vs. FY24

ECD: Orient’s ECD segment revenue saw an increase in revenue by 24.34% to Rs. 569.08 crore during Q4 FY-24, while for Q4 FY-23 it was Rs. 457.65 crore. There was an increase by 13.18% in FY-24’s ECD segment revenue to Rs. 1,982.75 crore from FY-23’s revenue from this segment, which stood at Rs. 1,751.81 crore.

Within this segment, fans saw a YoY growth of 15% in FY-24, and “…appliances [are] actually having a more modest [growth] under 5%” reported Mr.Deepak Khetrapal, Ex-Vice Chairman and Ex-Managing Director, Orient Electric during the Earnings Call for the company’s FY-24 results. On the international business front, there were geopolitical challenges in the operating environment for Q4 FY-24 according to the company’s Investor Presentation for its FY-24 financials.

Lighting and Switchgear: Orient Electric’s Lighting and Switchgear segment saw an increase in revenue to Rs. 829.37 crore in FY-24 from FY-23’s Rs. 777.36 crore, marking a growth of 6.69%.

A jump of Rs. 18.26 crore, i.e. of 9.15%, was seen in the company’s segmental revenue of Rs. 218.58 crore during Q4 of FY-24 from Q4 FY-23’s Rs. 200.26 crore Lighting and Switchgear revenue.

There might be a little…drag on the overall margins as we grow our switchgear and wires business…they are still nascent business…but lighting has done better”, said Mr. Khetrapal.

Orient’s Investor Presentation also mentioned, “Despite ongoing price erosion in B2C, the segment grew by mid-single digit led by a healthy volume growth”.

Dividend Payout in 2 parts – Q3 and Year End

The company announced and disbursed an interim dividend payout in Q3 FY-24 of Re. 0.75 (75%), where the face value of each equity share is Re. 1/-.

Additionally, final dividend of Re. 0.75 (75%), subject to shareholders’ approval, has been announced for the financial year ended March 31, 2024. Post approval, this dividend will be paid within 30 days of the company’s Annual General Meeting (AGM).

If approved, the total dividend paid out by the company for the entire FY-24 will amount to Rs. 1.50/- per equity share.

About Orient Electric: Orient Electric is a part of the CK Birla group, headquartered in Delhi. The company has a market presence in 30 countries, including India. The company’s product line includes lighting and switchgear, house wires, and ECD items including fans & coolers, among others.