Orient Electric Q1 results: Profit down 27% to Rs 14.34 cr on high expenses

India's Orient Electric reported a 27 per cent fall in first-quarter profit on Thursday, as higher expenses outweighed the rise in sales of fans and coolers as the country battled with scorching heat.

Orient Electric, which also sells mixer-grinders and switchgears, said profit decreased to Rs 14.34 crore ($1.7 million) in the quarter, from Rs 19.69 crore a year earlier.

Revenue from operations grew by 7 per cent to Rs 755 crore.

KEY CONTEXT

Rising temperatures and intense heatwaves across the country has boosted demand for cooling products, but it was offset by higher costs of traded goods, hitting the company's bottomline.

 

Indian home appliance makers have delivered a largely mixed set of earnings, setting up a balancing act between bolstered demand and higher costs of raw materials like copper and aluminium.

Last month, Crompton Greaves beat quarterly profit estimates, helped by rising demand for fans and coolers, although Havells India missed estimates as expenses surged.