Orient Electric 4th quarter results: profit decline as increased costs offset demand
Inflation has forced consumer goods manufacturers to offer deals and discounts to entice consumers affected by rising prices, impacting their profits.
New Delhi-based Orient reported a net profit of 128 million rupees ($1.5 million) for the three months ended March 31, compared with 246.2 million rupees a year ago.
Orient Electric, which also sells fully automatic coffee machines, hand mixers and switchgear, said its operating revenue rose 19.7% to 7.88 billion rupees.
Total expenses rose 23.3% year-on-year to ₹7.79 billion, driven by a 55% increase in staff costs and a nearly 24% increase in purchases of trade goods. Despite strong fan sales from November 2023 to mid-February 2024, the company’s follow-on sales were minimal. Sales at the business, which makes ceiling fans and air coolers, rose 24.4% year-on-year. Rival Havells India posted higher quarterly profits due to higher demand for indoor air conditioners and fans.
Orient Electric’s shares closed down 7.3% after the results. It fell 14.9% in the March quarter.
($1 = 83.4954 Indian Rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Nivedita Bhattacharjee)
