Orient Electric Ltd, on Friday, announced the appointment of Rajan Gupta as its Managing Director and CEO as the incumbent Rakesh Khanna resigned from the company after a stint of 8 years. The appointment has been made for a period of 5 years effective from April 4th, 2023, till April 03, 2028, subject to the approval of shareholders of the company.
The company’s stock has witnessed a down movement of around 6 percent today with the current level of Rs 255.
Orient Electric Limited (OEL), part of the diversified Indian conglomerate CK Birla Group, is one of India’s top manufacturers of ceiling fans, home appliances, lighting & switchgear. As far as the domestic markets are concerned, it has a well-organized distribution network driven by over 4000 dealers, 1,25,000 retail outlets, and a strong service network covering 450 cities.
The company has established itself as a one-stop brand for lifestyle electrical solutions. It has fully integrated manufacturing facilities based in Kolkata, Faridabad, Noida, and Guwahati. Being the largest manufacturer and exporter of fans from India, it has a dominating presence in over 40 international markets.
Having a quick glance at the financials, the company has been able to increase its revenues and net profits on a QoQ basis. Revenues shifted from Rs 511 crores in Q2 to Rs 739 crores in Q3. Moreover, the net profit figures have turned from net losses of Rs 0.28 crores in Q2 to net profits of Rs 33 crores in Q3.
The profitability ratios of the company, on a contrasting note, have seen a down movement in the basic ratios such as the ROE and ROCE. The ROE figures have gone down from 29.78 percent in FY20-21 to 25.81 percent in FY21-22. ROCE figures, in the same period, went down from 39.32 percent in FY20-21 to 37.01 percent in FY21-22.
The debt to equity ratio of the company has consistently gone down over the past three financial years and remained constant at 0.03 in FY20-21 and FY21-22.
Written by Amit Madnani
