Slides
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Orient Electric Limited Earnings Presentation Q3 & 9M FY25 January 29, 2025
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▪ ‘Spark Sanchay’ programme: Delivered cost savings of ₹52 Cr in YTD FY25 ▪ Manufacturing at Hyderabad facility scaled up: Season ready ▪ Thrust towards Profitability: Gross and EBITDA margins improves significantly in Q3 - to further improve with efficiency and operating leverage in coming quarters ▪ Digital and E-commerce: Focusing on building blocks for growth in e-commerce and quick commerce channels with a sell-out focus to drive market share gains ▪ Project Spotlight – enabling live fan and lighting demos at retail outlets to boost premium product adoption Strategy in Action | Key Updates 2 Portfolio Expansion Pillar to Long term Sustained Growth DTM for Fans: Redefining the GTM in fans business ▪ Successful implementation in 11 states, including Rest of West Bengal in Q3 ▪ Revenue from DTM markets grew high double digit ▪ 7,000+ retailers added to the network Direct Service ▪ Expanded service network to 21 markets with 16.5K+ pin codes via service centres, ensuring faster redressal and enhanced customer experience Customer Centric Initiatives Redefining GTM through DTM & Direct Services Thrust on Premium Lifestyle: Accelerating premiumization across categories to cater to evolving customer needs ▪ Technology-driven Offerings: BLDC & IoT-enabled fans, connected and decorative lighting innovations ▪ Touch and Feel Emphasis: Enhancing visibility through experiential retail with Project Orange ▪ Growth Ambition: NPD in Fans contributed 19% of the revenue in Q3. Overall, ambition to expand premium mix significantly from present ~30% levels Premiumization and Technology Focus Pivot to Lifestyle needs Cost Optimization and Operational EfficiencyChannel Strengthening and Market Expansion Focus on Lighting Portfolio: Prioritizing growth in decorative lighting and tender businesses B2C a) New Launches strengthened consumer lighting portfolio b) Distribution expansion & focus on premium NPDs, delivering high double-digit volume growth B2B a) Successful execution of street lighting & façade projects b) Healthy pipeline, with new projects onboarded
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Financial Results | Snapshot 3 Q3FY25 Gross Profit Margin ₹ 259Cr 31.7% YoY +15.3% +184bps QoQ +21.2% -66bps EBITDA Margin ₹ 61Cr 7.5% YoY +25.0% +98bps QoQ +71.6% +209bps PAT Margin ₹ 27Cr 3.3% YoY +11.9% +10bps QoQ +159.0% +174bps Sales ₹ 817Cr +8.6% YoY +23.7% QoQ 9MFY25 Sales ₹ 2,232 Cr +10.2% YoY Gross Profit Margin ₹ 723Cr 32.4% YoY +18.0% +213bps EBITDA Margin ₹ 137Cr 6.1% YoY +20.5% +52bps PAT Margin ₹ 52Cr 2.3% YoY -16.5%* -75bps Step-up improvement in profitability with better mix and premiumization thrust *9M FY25 normalised PAT grew by 10.2% YoY (adjusted for one-time gain on sale of land in 9M FY24)
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Financial Results | Highlights 4 EBITDA Margin improved to 7.5% (+98bps YoY, +209 bps QoQ), with Spark Sanchay and other cost optimization initiatives; operating leverage to improve further Working Capital Cycle improved to 16 days in Q3 FY25 (vs 24 days in Q3 FY24); Net Cash at Rs. 93 Crore (Q3 FY24 at Rs 44Cr) Encouraging growth from newer categories in premium fans and lighting Lighting & SWG performed well with double digit growth, Fans grew at a high single digit; despite a lean quarter for summer product categories; thrust towards new product launches resulted in encouraging performance in premium fans and lighting Gross Margin expansion by 184bps YoY; expected to sustain at ~31-33% range, with improvement in product mix, channel optimization with DTM, and premiumization thrust EBITDA at ₹61 Cr has grown by 25% on YoY and 72% on QoQ basis
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Lighting & Switchgear
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Q3FY25 Segment Highlights | Lighting & Switchgear 6 Revenue EBIT and EBIT Margin ₹ Cr₹ Cr 217 221 242 Q3FY24 Q2FY25 Q3FY25 31 30 32 14.2% 13.6% 13.3% -1.0 0% 1.0 0% 3.0 0% 5.0 0% 7.0 0% 9.0 0% 11 .00 % 13 .00 % 15 .00 % 17 .00 % 19 .00 % 29 29 .5 30 30 .5 31 31 .5 32 32 .5 Q3FY24 Q2FY25 Q3FY25 +4.9% YoY +11.9% YoY +7.4% QoQ +9.9% QoQ ▪ L&S grew at an accelerated pace ~12% YoY ▪ Consumer Lighting continues to register high double-digit volume growth, though price erosion continued in Q3; product mix improvement and premiumization thrust led to an increase in share of Luminaries ▪ Expansion of distributor partnerships and new product launches aided the growth in Consumer Lighting ▪ B2B momentum continues, with execution of key projects in Street Lighting & Façade, & growing project enquiries ▪ Switchgears registered a double-digit growth, with a focus on electrician & retailer meets; presence expanded to over 11,000 retailers across the country ▪ Wires registered a muted growth, due to price fluctuations ▪ EBIT margins maintained at 13.3%, despite the impact of continuous price erosion in B2C lighting Accelerated growth, driven by premiumization, distribution expansion and B2B focus
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Focus on Façade and Street Lighting in B2B & B2G 7 FY24 ▪ Rail Bhawan ▪ Srinagar smart city ▪ Surat Ahmedabad Metro ▪ Mumbai Metro Rail Corp ▪ Ayodhya ▪ Surdarshan Setu ▪ Puri Parikrama Marg Meerut Najibabad, Package No 3 Puri Parikrama Marg Surdarshan Setu Ayodhya Rail Bhawan Srinagar Smart City 9M FY25 ▪ Ghosukupur Salsabari (GSRP) ▪ Project, Siliguri ▪ Meerut Najibabad Highway ▪ Gurugram Sohna Higway ▪ Wadi Flyover ▪ Pune Metro ▪ Patna Airport Meerut Najibabad Highway Gurugram Sohna Puri Patna airport Pune Metro Patna Airport Key Projects executed in Street Lighting and Façade
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9 Revenue EBIT and EBIT Margin 535 440 574 Q3FY24 Q2FY25 Q3FY25 ₹ Cr₹ Cr +7.3% YoY 60 39 64 11.3% 8.8% 11.2% -1.0 0% 1.0 0% 3.0 0% 5.0 0% 7.0 0% 9.0 0% 11 .00 % 13 .00 % 0 10 20 30 40 50 60 70 Q3FY24 Q2FY25 Q3FY25 +30.7% QoQ +6.7% YoY +65.5% QoQ ▪ ECD revenue growth at 7.3% YoY ▪ Fans witnessed high single-digit growth, with increased share of premium & decorative fans leading to market share gains ▪ BLDC showed 60% value growth vs last year ▪ New Product development continue to be focus area, driving innovation and premiumization. New product launches during the quarter have shown positive market traction ▪ Revenue from DTM markets experienced a robust 30%+ growth; DTM roll-out expanded to Rest of Bengal in Q3 ▪ Hyderabad plant operations stabilised; ready for season’s scale up ▪ EBIT margins stood at 11.2%, with improved contribution from DTM markets and improved product mix Q3FY25 Segment Highlights | ECD Innovation and consumer centricity driving Fans growth
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New Product Launches
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New Product launches strengthening the L&S portfolio 11 Lighting Prism Fold Vivid Step Laser Linear Razor Plus FL Grace Delite Plus Eternal Shine 70WPrism NeoBlaze Spot Light ✓ Focus on decorative lighting products, with improving share of luminaries to lamps within the lighting portfolio ✓ Technology focus with connected lighting products & IOT Switchgear Stella Neo MCB Expanding range of value-added products, new range of MCB’s in Mass Premium segment to drive scale
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New Product Launches strengthening the ECD portfolio 12 ✓ NPD in Fans contributed 19% to revenue in Q3 ✓ Focus on technology with IOT and BLDC products ✓ Building up premium BLDC portfolio with fresh colors Fans Aeroslim – Dune Gold Aerosense IOT BLDC Pro Appliances Crysta 25L Water Heater Optimo 50/90L Air Cooler ✓ Introduced new tall air cooler in multiple capacities - Optimo emerged as hero model for the season ✓ Launched Crysta in Glassline range of Water Heaters Focus on lifestyle & technology needs of the customers
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Digital Initiatives
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14 Stand Up Comedian Rahul Dua A+ Influencer Contextual communication Print BTL Outdoor Selected high impact sites Full Page TOI Digital Platforms and Social Offline Integrations Water Heaters Season Build up - Fatt Se Garam • Fatt se Garam- Young tonality and platform choices to build a digital first campaign • Support with high impact offline properties in print and outdoor in key markets • High engagement with influencers and contextual and engaging communication Young tonality and high impact media usage
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15 Top Influencer choices 100K Fans on Instagram Age 25-35 Highest Engaged Cohort Driving Digital Success Young and fresh tonality Engaging Younger Audiences and Community Outreach Meta Influencer collaborations Youth/category-centric influencers, resulting in reach in 25-35 age group Human centric & relatable content Focus on shareable video content Younger Channel selection Uber, Zomato, Spotify
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16 Financial Summary
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Profit & Loss Statement 17 Particular (in Rs Crore ) Q3 FY25 Q3 FY24 YoY% Q2 FY25 QoQ% 9M FY25 9M FY24 YoY% Revenue from Operations 816.8 751.9 8.6% 660.2 23.7% 2231.8 2024.5 10.2% COGS 557.7 527.2 5.8% 446.4 24.9% 1508.8 1411.7 6.9% Gross Profit 259.1 224.7 15.3% 213.8 21.2% 723.1 612.7 18.0% Gross Margin % 31.7% 29.9% 184 bps 32.4% -66 bps 32.4% 30.3% 213 bps Employee Expenses 75.3 63.6 18.3% 77.9 -3.4% 230.1 189.0 21.8% Other Expenses 122.7 112.2 9.4% 100.2 22.4% 356.1 310.1 14.8% EBITDA 61.2 48.9 25.0% 35.7 71.6% 136.9 113.6 20.5% EBITDA Margin % 7.5% 6.5% 98 bps 5.4% 209 bps 6.1% 5.6% 52 bps Depreciation 20.2 15.0 34.0% 19.6 2.8% 57.3 43.5 31.6% Financial Cost 6.1 5.4 13.4% 6.0 1.3% 17.8 16.5 8.3% Other Income 1.7 4.3 -60.5% 4.2 -59.7% 8.4 10.5 -20.5% Exceptional Income 0.0 0.0 - 0.0 - 0.0 18.7 - Profit Before Tax (PBT) 36.6 32.8 11.6% 14.2 157.3% 70.1 82.8 -15.3% Other Comprehensive Income 0.1 0.0 233.3% 0.1 -9.1% 0.3 0.1 255.6% Tax 9.5 8.5 11.7% 3.8 147.9% 18.2 20.3 -10.3% Profit After Tax (PAT)* 27.2 24.4 11.9% 10.5 159.0% 52.2 62.5 -16.5% PAT Margin % 3.3% 3.2% 10 bps 1.6% 174 bps 2.3% 3.1% -75 bps Earning Per Share in Rs. 1.27 1.14 11.7% 0.49 160.2% 2.43 2.93 -16.9% *9M FY25 normalised PAT grew by 10.2% YoY (adjusted for one-time gain on sale of land in 9M FY24)
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Shareholder Information Stock Data Shareholding Pattern – Dec 31, 2024 Promoters 38.31% Others 26.74% Mutual Funds 25.88% Other DIIs 1.98% FIIs 7.09%(2.11%) (6.99%) (25.78%) (26.81%) Bloomberg Ticker ORIENTEL IN BSE Ticker 541301 NSE Ticker ORIENTELEC Market Capitalization (₹ Cr.) - Dec 31, 2024 4,966 No. of Shares Outstanding (Cr.) 21.34 Figures in bracket represent corresponding details as on Sep 30, 2024 Source: BSE 18
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DISCLAIMER: Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to Orient Electric Limited. (“OEL”, or “Company”) and its future business, development and economic performance. These statements include descriptions regarding the intent, belief or current expectations of the Company, its subsidiaries and associates and their respective directors and officers with respect to the results of operations and financial condition of the Company, subsidiary or associate, as the case may be. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation. Company assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise. Any forward-looking statements and projections made by third parties included in this presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections. This presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this presentation. This presentation may not be all inclusive and may not contain all the information that you may consider material. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded. This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or in part, or disclosed by recipients directly or indirectly to any other person. Follow us O r i e n t E l e c t r i c L i m i t e d investor@orientelectric.com www.orientelectric.com CIN : L31100OR2016PLC025892 Regd. Office: Unit VIII, Plot No.7, Bhoinagar, Bhubaneswar, Odisha 751012 THANK YOU