Orient Electric (ORIENTELEC) Q4 17/18 earnings summary

Executive summary

• FY2017-18 was the first full year of independent consumer-electric operations after the demerger; despite GST-related channel destocking early in the year, like-for-like growth was double digit and the year ended strongly.

• Market share advanced in most product categories and geographies; premium products, innovation, deeper distribution and cost reduction supported progress toward profitable growth.

Financial highlights

• Gross sales were ₹162,558 lakh; revenue from operations was ₹162,558.30 lakh, including excise duty on sales through June 2017.

• EBITDA was ₹14,204 lakh and EBITDA margin 8.74% of net sales; profit before tax was ₹9,782.79 lakh and net profit ₹6,402.50 lakh.

• Total comprehensive income was ₹6,305.49 lakh; basic and diluted EPS were ₹3.02 per ₹1 share.

Outlook and guidance

• Target is revenue growth ahead of industry growth, with profitable growth driven by product innovation, consumer focus and deeper market penetration.

• Outlook was positive for consumer LED luminaires, LED street lighting, premium fans and coolers; deeper distribution was expected to support growth.

• Planned development includes smart fans, BLDC ranges, smart LED products, higher-power streetlights, and expanded appliances and modular-switch ranges.