Orient Electric Q2 Review - Venture Into Alternate Trade Channels, A Positive; Upgrade To Buy: Nirmal Bang

The brokerage continues to like the company's direct-to-market strategy, along with good growth and visibility from other regions as well.

Orient Electric appliances on display. (Photo: Company website)

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Nirmal Bang Report

Orient Electric Ltd.'s both topline and Ebitda margin were above our estimates by 10.7% and 49 bps respectively due to better-than-expected performance in electrical consumer durable segment.

Fans grew by high teens YoY. Direct-to-market states registered strong growth of 35% YoY in Q2 FY25. Revenue contribution from DTM states stands at ~30% of overall GT Fan sales. New Products – focused on premium stock keeping units – contributed 30% to Fans sales. BLDC contributed 25% to Ceiling Fans, and this is expected to go to ~40-45% in the medium term.

Production of CF in the Hyderabad plant commenced from Sept-24. Stabilization and scale-up is expected in H2 FY25.

The company has been scaling up its presence materially on e-commerce and large format retail platforms across product categories. The Digital channel witnessed stock-out situation, with market share gains. Project Sanchay delivered cost savings of ~Rs 360 million in H1 FY25. The company is expected to maintain a similar run rate going forward.

Click on the attachment to read the full report:

Nirmal Bang Orient-Electric Q2 FY25-Result-Update.pdf
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Also Read: Interglobe Aviation Q2 Results Review - Net Loss Led By Seasonality But Guidance Remains Intact: Motilal Oswal

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