BENGALURU (Reuters) – Appliances maker Orient Electric on Friday reported a second-quarter profit, aided primarily by a one time gain from land sale and buoyed by steady demand for its consumer durables business.
The company posted a profit after tax of 184.5 million rupees ($2.2 million), which included a one-time gain of 186.8 million rupees from a land sale. It had posted a loss of 2.8 million rupees in the year ago quarter.
Its revenue from operations grew over 11%, while expenses rose 9.4% and tax charges surged twelvefold.
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KEY CONTEXT
The September quarter has been seasonally weaker for appliance makers, with sales weakening as monsoon provides relief from the scorching Indian summer. However, a weak monsoon this year has led to a relatively steadier demand for fans and other cooling products.
Moreover, demand for cables, wires and similar products like swtichgears have been strong aided by robust infrastructure spends.
Peer Havells India last month posted second-quarter profit of 2.49 billion rupees, up 33% year-on-year on strong cable sales.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 months) Analysts’ sentiment
months)
RIC PE EV/EBI Price/ Revenue growth profit growth Mean # of Stock to Div
TDA Sales rating analyst price target yield
s (%)
Orient Electric Ltd ONTE.NS 32.45 17.40 NULL 13.70 41.48 BUY 17 0.84 0.69
Havells India Ltd HVEL.NS 50.61 33.60 NULL 13.84 26.95 BUY 21 0.89 0.59
Crompton Greaves Consumer CROP.NS 28.68 20.25 NULL 10.39 20.32 BUY 35 0.84 1.06
Electricals Ltd
Johnson Controls-Hitachi Air JCHA.NS 400.09 28.76 NULL 8.39 NULL HOLD 3 1.02 NULL
Conditioning India Ltd
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.2650 Indian rupees
(Reporting by Nishit Navin in Bengaluru; Editing by Varun H K)
