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Appliances maker Orient Electric on Thursday reported a 48 per cent fall in its fourth-quarter profit as higher expenses offset demand.
Driven by inflation, consumer goods makers have resorted to offering deals and discounts to attract consumers affected by rising prices, thereby impacting their profit margins.
New Delhi-based Orient reported a net profit of Rs 12.8 crore ($1.5 million) for the three months ended March 31, compared with Rs 24.62 crore a year earlier.
Orient Electric, which also sells fully automatic coffee machines, hand mixers and switchgears, said its revenue from operations rose 19.7 per cent to Rs 788 crore.
Total expenses rose 23.3 per cent year-on-year to Rs 779 crore, dragged by a 55 per cent jump in employee costs and a near 24 per cent rise in purchase of traded goods.
Despite strong sales of fans from November 2023 to mid-February 2024, the subsequent sales have been tepid for the company.
Revenue in its business that makes ceiling fans and air coolers was rose 24.4 per cent year-on-year.
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Rival Havells India posted a higher quarterly profit on strong demand for room ACs and fans.
Shares of Orient Electric closed lower at 7.3 per cent after the results. They fell 14.9 per cent in the March quarter.
