India's Orient Electric posts Q2 profit on one-time gain, steady demand

Orient Electric

03/11/2023 08:52

BENGALURU, Nov 3 (Reuters) - Appliances maker Orient Electric  ONTE.NS  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.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3C36E9
    
    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  HVEL.NS  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

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 (Reporting by Nishit Navin in Bengaluru; Editing by Varun H K)
 ((Nishit.Navin@thomsonreuters.com;))