Orient Electric Ltd. · NSE:ORIENTELEC
Orient Electric — Q3 FY2024 Earnings Presentation
20 slides from Orient Electric's earnings presentation, Feb 1, 2024
Slide 1: Cover letter to stock exchanges on investors' release
February 01, 2024 Listing Department Department of Corporate Services -Listing National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze JeeJeebhoy Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Mumbai - 400 051 Fort, Mumbai – 400 001 Trading Symbol
Slide 2: Earnings Presentation Q3FY24
O r i ent E l ec t r i c Li mi ted Earnings Presentation Q3FY24 February 01, 2024
Slide 3: Quarterly Highlights
Quarterly. Highlights
Slide 4: Performance Highlights
Performance Highlights Encouraging performance across segments despite industry headwinds and high base effect Gross margin continued to improve vs last year Sequential margin improvement in Lighting and Switchgear Strategic thrust areas yielding positive results Sharper focus continues on Quality,
Slide 5: Industry Overview
Industry Overview FANS LIGHTING ➢ Consumer demand remained weak coupled ➢ Value degrowth in B2C lighting due to price with price discounting during the quarter erosion ➢ Commodity prices remained benign during ➢ B2B growth led by higher spending by the quarter government on Infrastructure and B2G in
Slide 6: Progress on Strategic Growth Drivers
Progress on Strategic Growth Drivers …thrust areas yielding positive results Go-To-Market Digital & Large Format Retail Lighting Cost Savings ➢ Expansion of ➢ Continued traction in distribution B2B ➢ Institutionalizing cost footprint, DTM and ➢ Significantly scaling up E-Commerce and ➢ Healthy build
Slide 7: Q3FY24 Snapshot
Q3FY24 Snapshot Sales ECD Lighting & Switchgear ₹ 752Cr ₹ 535Cr ₹ 217Cr +1.7% YoY -0.7% YoY +8.2% YoY +32.6% QoQ +47.3% QoQ +6.5% QoQ Gross Profit Margin EBITDA Margin PAT Margin Net Cash Position ₹ 225Cr 29.9% ₹ 49Cr 6.5% ₹ 24Cr 3.2% ₹ 44Cr YoY +6.2% +127bps YoY -10.8% -92bps YoY -25.0% -115bps YoY
Slide 8: Financial Highlights
Financial Highlights Continued improvement in gross margin.. Revenue growth of 1.7% YoY driven by appliances, lighting and switchgear segment whilst fans reported muted performance Revenue from the International business grew by high-teens during the quarter Gross Margin increased by +127 bps YoY to
Slide 9: Q3FY24 Segment Highlights- ECD
Q3FY24 Segment Highlights- ECD ..encouraging performance despite industry headwinds and high base effect Revenue ▪ ECD revenue was ₹535Cr, -0.7% YoY on account of high base 539 535 effect, soft consumer demand and discounting in fans 481 363 ▪ EBIT was ₹60Cr with Margin at 11.3%, -71bps YoY -0.7% ₹
Slide 10: Q3FY24 Segment Highlights- Lighting & Switchgear
Q3FY24 Segment Highlights- Lighting & Switchgear ..saw topline growth and distribution expansion Revenue 217 ▪ Lighting and Switchgear reported growth of 8.2% YoY 203 +8.2% ▪ EBIT Margin at 14.2%, +98bps QoQ aided by product mix 200 (increase in share of CLum and high wattage lamps) and ₹ Cr 197 YoY
Slide 11: Business Initiatives
Business Initiatives
Slide 12: New Product Launches
New Product Launches Oriblueooth LED Surface Full Screen Lighting Lamp ▪ 15 new products launched Joylite Ropelight LED Lamp ▪ 12 launches in Lighting including lamps, batten and panels in wide colour range Dusk Street Light Joylite Ropelight Spike Light ▪ 3 launches in ECD ECD Subaris with Remote G
Slide 13: Continued focus on scaling up E-commerce
Continued focus on scaling up E-commerce Continued Focus on e-commerce and social media marketing, in line with strategic objective of scaling digital business E-commerce Social Media 12
Slide 14: Key Projects
Key Projects Completion of key projects Projects Executed Q3 FY23 Kanpur Ganga Barrage Project Puducherry Smart City Dwarkadhish Highway ▪ Puducherry Smart city ▪ Varanasi Cantt. Railway Station Q4 FY23 ▪ Rail Bhawan ▪ Baroda House Rail Bhawan Ganga Setu Patna ▪ Dwarkadhish Highway Bridge Project Q2
Slide 15: Financial Summary
Financial Summary 14
Slide 16: 9MFY24 Snapshot
9MFY24 Snapshot Sales ECD Lighting & Switchgear ₹ 2,024Cr ₹ 1,414 Cr ₹ 611 Cr +8.2% YoY +9.2% YoY +5.8% YoY Gross Profit Margin EBITDA Margin PAT Margin Net Cash Position ₹ 613 Cr 30.3% ₹ 114 Cr 5.6% ₹ 63 Cr 3.1% ₹ 44 Cr YoY +18.2% +255bps YoY +8.6% +2bps YoY +22.8% +37bps YoY -77.5% 15
Slide 17: Q3FY24 and 9MFY24 - Profit & Loss Statement
Q3FY24 and 9MFY24 - Profit & Loss Statement Particular (in ₹ Cr) Q3FY24 Q2FY24 Q3FY23 YoY% QoQ% 9MFY24 9MFY23 YoY Comments Revenue from Operations 751.9 566.9 739.0 1.7% 32.6% 2,024.5 1,871.3 8.2% COGS 527.2 395.2 527.5 -0.1% 33.4% 1,411.7 1,352.7 4.4% Gross Profit 224.7 171.7 211.5 6.2% 30.9% 612.7
Slide 18: 9MFY24 – Key Ratios
9MFY24 – Key Ratios Financial ratios 9MFY22 9MFY23 9MFY24 Comments Higher capital employed due to Hyderabad capex and high working ROCE (pre-tax) 39.4% 26.6% 18.2% capital Current Ratio 1.49x 1.45x 1.35x Net Working Capital Days 34 20 24 Debt-Equity ratio 0.04x 0.03x 0.02x Position as on Dec end (₹
Slide 19: Stock Information
Stock Information Shareholding Pattern – Dec 31, 2023 Other DIIs, 0.74% FIIs, 5.93% (0.82%) (5.69%) Stock Data Bloomberg Ticker ORIENTEL IN BSE Ticker 541301 Promoters, Mutual Funds, 38.31% NSE Ticker ORIENTELEC 28.49% (29.16%) Market Capitalization (₹ Cr)- Dec 31, 2023 4,838 No. of Shares Outstandi
Slide 20: Thank You
THANK Orient Electric Limited CIN : L31100OR2016PLC025892 YOU! Regd. Office: Unit VIII, Plot No.7, Bhoinagar, Bhubaneswar, Odisha 751012 investor@orientelectric.com www.orientelectric.com Follow us DISCLAIMER: Cautionary statement regarding forward-looking statements This presentation may contain ce