Orient Electric profit up 7% in September quarter

Orient Electric on Saturday reported a 7.25 per cent rise in net profit at Rs 34.77 crore for the second quarter ended September 30, 2021.

The CK Birla group firm had posted a net profit of Rs 32.42 crore in July-September last fiscal year, Orient Electric said in a regulatory filing.

Revenue from operations was up at Rs 594.38 crore during the period under review as compared to Rs 433.77 crore in the corresponding period of the previous fiscal year.

"All segments performed well during the quarter. Revenue for Q2'FY22 grew 37 per cent YoY with similar range bound growth from every segment. Entry-level products and all consumer-facing channels were the top runners. Premium products recorded an upsurge in demand in the quarter," Orient Electric said in a post result investor presentation.

Its export markets have also opened up with new orders, while tender business remained quite sluggish, it added.

Total expenses were at Rs 549.17 crore, up 40.38 per cent as against Rs 391.21 crore.

Revenue from the Electrical Consumer Durables segment was up at Rs 454.50 crore from Rs 304.35 crore.

Lighting & Switchgear segment revenue was up 34.91 per cent at Rs 174.60 crore as against Rs 129.42 crore in the year-ago period.

On the outlook, the company said while normalcy is setting in across the country with lower Covid positivity and fatality rates, the onset of festivals in third quarter and good monsoons are raising hopes of consistent demand generation and expectations of positive sentiments for the summer season.

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"Sporadic Covid positivity spikes are likely to continue with higher tolerance and lower fatality. Commodity cost and availability challenges seem to remain for the rest of the year and need to be navigated through with multiple actions to protect margins and grow market share," it added.