Q1 2025 Orient Electric Ltd Earnings Call Transcript
Key Points
- Orient Electric Ltd (BOM:541301) reported a 7% year-on-year revenue growth for Q1 FY25, reaching INR 755 crores.
- Gross margins expanded by 249 basis points year-on-year and 237 basis points quarter-on-quarter, standing at 33.1%, driven by a combination of price increases, mix, and cost savings.
- The company saw a high double-digit volume growth in consumer lighting despite industry-wide value contraction.
- The DTM strategy has shown positive results, with the Fans category growing by 23% in DTM states during Q1.
- Commercial production has started at the new greenfield Hyderabad plant, designed as an Industry 4.0 facility, which is expected to deliver superior products at competitive costs.
- EBITDA dropped by 8.9% year-on-year, with a sequential margin improvement but a 93 basis points drop year-on-year.
- Capacity limitations restricted the ability to meet peak demand for fans, resulting in a modest 5.8% growth in the ECD segment.
- The company faced inventory stock-outs in several pockets due to unanticipated demand for fans.
- The Lighting segment continued to face price erosion, impacting overall profitability.
- Exports degrew due to geopolitical issues, particularly in African markets, affecting overall performance.
Ladies and gentlemen, good day and welcome to the Orient Electric Q1 FY25 conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nilesh Patil from ICICI Securities. Thank you, and over to you, sir.
Thanks, (inaudible). On behalf of ICICI Securities, we welcome you all to Q1 FY25 results conference call of Orient Electric Limited. We will have with us, Mr. Ravindra Singh Negi, Managing Director and CEO; and Mr. Saibal Sengupta, Chief Financial Officer.
Now I hand over the call to Mr. Negi for the initial comments on quarterly performance, and then we'll open the floor for question-and-answer session. Thanks, and over to you, sir.
Thanks, Nilesh. Good morning, everyone, and a very warm welcome to Orient's quarter one earnings conference call. I'm delighted to
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