Q4 2024 Orient Electric Ltd Earnings Call Transcript
Key Points
- Orient Electric Ltd (BOM:541301) reported a robust 20% revenue growth in Q4 FY24, with the Electric Consumer Durables (ECD) division growing by 24.3% and the lighting and switchgear segment by 9%.
- The fans business saw a significant 29% growth in Q4, indicating a strong market share recovery.
- The company has successfully executed several prestigious lighting projects, including the Srinagar smart city, Dwarka's Sudarshan Setu, and the Jagannath Puri Temple.
- Direct-to-market strategy in certain states resulted in a 46% growth in Q4 and 65% for the full year, validating the effectiveness of this approach.
- The new Hyderabad plant has been commissioned, which can more than double the company's current sales capacity, indicating potential for future growth.
- Despite strong top-line growth, EBITDA for Q4 was reported at INR 31 crores, which is below desired levels, partly due to a provision of INR 19 crores for EPR liability and stringent provisioning policy.
- The coolers segment underperformed, with the company struggling due to untimely rains and extended inventory issues.
- The lighting segment continues to face price deflation, particularly in LED lamps, impacting overall margins.
- The legacy distribution network showed disappointing performance with marginal or no growth, necessitating a shift to direct-to-market strategies.
- The company acknowledged that its new product development has not met market expectations recently, though efforts are being made to strengthen R&D.
Ladies and gentlemen good day, and welcome to Orient Electric Limited Q4 FY24 earnings Conference Call hosted by AMBIT Capital. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Dhruv Jain from AMBIT Capital. Thank you, and over to you, sir.
Good morning, everyone. Welcome to Orient Electric 4Q and FY24 earnings call. From the management side today, we have with us Mr. Deepak Khetrapal, Vice Chairman and Managing Director; and Mr. Saibal Sengupta, the Chief Financial Officer. Thank you, and over to you, sir, for your opening remarks.
Thank you, Dhruv. A very warm welcome, all, ladies and gentlemen. It's always a pleasure when we find that so many of you are interested in our business of Orient Electric and find time to join us. With me on the call, I believe, is not just Saibal, our CFO, but also Ms. Avani Birla, the President
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