Orient Electric (ORIENTELEC) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew to INR 660.2 crores, up 16.5% year-over-year, led by strong performance in lighting, appliances, and fans, supported by digital initiatives and higher realizations.

• Gross margin expanded by 240 bps year-over-year to 32.4%, driven by improved product mix, cost optimization, and price increases.

• EBITDA margin improved to 5.6% (INR 36 crores), reflecting investments in go-to-market and service infrastructure.

• Working capital cycle improved to 19 days in Q2 FY25 from 27 days in Q2 FY24.

• Strategic focus on premiumization, product mix improvement, and cost optimization supported margin expansion.

Financial highlights

• Q2 FY25 revenue: INR 660.2 crores (+16.5% YoY, -12.5% QoQ); H1 FY25 revenue: INR 1,415 crores (+11.2% YoY).

• Gross profit: INR 213.8 crores in Q2 FY25 (+24.5% YoY); gross margin at 32.4% (+240 bps YoY).

• EBITDA: INR 36 crores in Q2 FY25 (+72.5% YoY); EBITDA margin at 5.6% (+180 bps YoY).

• PAT for Q2 FY25 was INR 10.5 crores, down 43% YoY; EPS for H1 FY25 was INR 1.16 (-35% YoY).

• Exceptional gain of INR 18.68 crores from sale of land at Hyderabad recognized in Q2 FY25.

Outlook and guidance

• Gross margins expected to remain stable, supported by ongoing cost initiatives and premiumization.

• Premiumization to be substantially increased across all categories from current ~30% levels.

• Hyderabad plant ramp-up expected in H2 FY25 to support ceiling fan production.

• Working capital days reduced to 19, with a focus on maintaining lower levels despite seasonal build-up.

• Final dividend of INR 0.75 per share for FY24 approved and paid in August 2024.