Orient Electric on Thursday reported a 26.7 per cent decline in net profit at Rs 38.08 crore for the third quarter ended December 2021 as margins continued to be impacted due to a rise in commodity prices.
The CK Birla Group firm posted a net profit of Rs 51.94 crore in October-December 2020-21, Orient Electric Ltd (OEL) said in a regulatory filing.
However, revenue from operations was up 9.7 per cent to Rs 678.35 crore during the period under review as against Rs 618.34 crore in the year-ago quarter.
“The relentless increase in commodity prices during the year has been impacting all players within the industry. With a YoY growth in Cost of Goods by 15.2 per cent in Q3 FY22, OEL was no exception. Higher commodity prices have been keeping margins under pressure since Q1 FY22 and is expected to continue over the short term,” said OEL in a post earning investor’s release.
Total expenses in the quarter were at Rs 628.31 crore, up 14.33 per cent fom Rs 549.58 crore in October-December 2020-21.
“Despite a higher corresponding base, which had surged on consumers acting out on their pent-up demand last year, OEL sustained a confident revenue momentum for Q3 FY22, growing by 9.7 per cent YoY,” said OEL.
Its revenue from Electrical Consumer Durables segment was at Rs 481.30 crore as against Rs 460.45 crore.
Lighting & Switchgear segment revenue was up 24.8 per cent to Rs 197.05 crore as against Rs 157.89 crore in the year-ago period.
Meanwhile, in a separate filing, OEL said its board in a meeting held on Thursday approved payment of interim dividend of 75 per cent, which is Rs 0.75 per equity share of the face value of Rs 1 each for 2021-22.
Besides, the board has approved the reappointment of Rakesh Khanna as managing director of the company for a period of two years effective January 23, 2022.
“The approval of the shareholders is sought to be taken through postal ballot process. He will continue to be Chief Executive Officer and thus, a Key Managerial Personnel, and designated as Managing Director & CEO of the company,” it said.
Shares of OEL settled flat at Rs 363.50 apiece.