Orient Electric, a company based in New Delhi, experienced a substantial decline in its fourth-quarter net profit to Rs 12.8 crore compared to Rs 24.62 crore in the same period the previous year. This decrease was primarily due to a 48% fall in profit, which was attributed to higher expenses that offset the demand for their products.
The company, known for selling a variety of appliances such as fully automatic coffee machines, hand mixers, and switchgears, reported a 19.7% increase in revenue to Rs 788 crore. However, their total expenses also rose significantly by 23.3% year-on-year to Rs 779 crore, driven by a considerable 55% increase in employee costs and nearly 24% rise in the purchase of traded goods. Despite a strong performance in the sales of fans during a specific period, the subsequent sales were lackluster for the company.
Amidst the challenging market conditions, Orient Electric's revenue from the business segment that includes ceiling fans and air coolers rose by 24.4% year-on-year. In contrast, its competitor Havells India reported a higher quarterly profit due to strong demand for room air conditioners and fans. Following the announcement of its financial results, Orient Electric's shares closed lower by 7.3%, marking a 14.9% decline in the March quarter.