Orient Electric Q3FY22 Results: Profit fell 26.68% to Rs 38.08 crore

Orient Electric on Thursday reported a 26.68 per cent YoY decline in the consolidated profit at Rs 38.08 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 51.94 crore in the corresponding quarter last year.

The company's revenue from operations grew 9.70 per cent YoY to Rs 679.35 crore compared to Rs 618.34 crore posted last year.

Its EBITDA fell 9.70 per cent YoY to Rs 66.46 crore compared to Rs 84.19 crore posted last year. Orient Electric's margin fell to 9.80 per cent in Q3FY22 compared to 13.7% posted in Q3FY21.

In a statement Orient Electric said, "Despite a higher corresponding base, which had surged on consumers acting out on their pent-up demand last year, OEL sustained a confident Revenue momentum for Q3 FY22, growing by 9.7 per cent YoY. The Company's diversified product mix along with its new product interventions, offered across multiple channels, continues to strike a chord with evolving consumer demand. Despite the looming concern of a third wave led by the Omicron variant, the Company's preparedness to counter supply challenges helped in delivering overall Revenue growth during this quarter."

In terms of segmental revenue, the company's revenue from Electrical Consumer Durables stood at Rs 481.30 crore compared to Rs 460.45 crore posted last year. Revenue from Lighting and Switchgear was Rs 197.05 crore compared to Rs 157.89 crore posted last year.

Orient Electric further added, "The relentless increase in commodity prices during the year has been impacting all players within the industry. With a YoY growth in Cost of Goods by 15.2 per cent in Q3 FY22, OEL was no exception. Higher commodity prices have been keeping margins under pressure since Q1 FY22 and is expected to continue over the short term."

Besides, the Board of Directors of the company has approved the payment of an interim dividend of Rs 0.75 per equity share of face value Re 1 each for the financial year 2021-22. It has fixed Wednesday, February 2, 2022, as the record date for determining the shareholders who will be entitled to the said Dividend. The interim dividend will be paid to the entitled shareholders within 30 days from the date of declaration.

The Board also approved the reappointment of Rakesh Khanna, as the Managing Director of the Company, on the recommendation of the Nomination and Remuneration Committee, for a period of two years effective from January 23, 2022, subject to the approval of the shareholders of the Company. The approval of the shareholders is sought to be taken through the postal ballot process. He will continue to be Chief Executive Officer and thus, a Key Managerial Personnel, and designated as Managing Director & CEO of the Company.