Orient Electric last month reported a 9.7 per cent increase in standalone revenue from operations to Rs 678.35 crore during the period under review as against Rs 618.34 crore in the previous year quarter.
However, the company’s standalone net profit decreased by 14.5 per cent to Rs. 32.56 crore in December 2022 from Rs. 38.08 crore in December 2021.
“Our gross margin also improved in the most difficult conditions. We have been putting some upfront strategic investment, that is to improve us in a few areas,” Rakesh Khanna, MD & CEO-Orient Electric told the BW Retail World.
While talking at the launch of Orient Electric new product ‘ Cloud 3 fan’ about the company Khanna told the BW Retail World about the firm’s strategies for brand enhancement.
“There’s three major areas where we’re investing
- Go-to-market: Where we are rebuilding our distribution network, which in the long term will provide very big competency to us.
- Ecommerce: We’re really investing behind the ecommerce, we are building a lot of competency in house, the backed digitization the frontend team cop capability.
- Cost optimization: In terms of redesigning and cost optimization,” he said.
All these things are going to bring in substantial competency for the organisation, he stated.
“In the time to come there are upfront investments. Which is around 2.5 per cent. If you remove that you will find that the profits are also good and this is the investment required today to take our thing to the next level,” he added.
The Earnings before interest, taxes, and amortisation (EBITA) of the company went down by 5.76% at Rs. 63.47 crore in December 2022 from Rs. 67.35 crore in December 2021.
Orient Electric shares closed at Rs 270.00 per share on Tuesday.