Orient Electric Limited

rs,

Mumbai - 400 051 Department of Corporate Services -Listing BSE Limited Phiroze JeeJeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Trading Symbol: ORIENTELEC Scrip Code: 541301 Sub.: Inv

14%

aligning with Pre Covid levels despite high inflation, and seasonal volatility Q1 Revenue CAGR OF 14% FY18-FY23 Q1FY23 showed QoQ resilience to RM inflation EBITDA margins in line with pre covid

13%

high Q1 revenue Coolers and Water heaters witness strong traction L&S segment EBIT margins at 13% Raw material Pressure evident due to commodity inflation Working capital days reduces YoY to

31%

on… ₹ in crore Revenue Gross Margins (%) Op. EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 31% 568 47% 622 34% 31% 29% 27% 28% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat

47%

crore Revenue Gross Margins (%) Op. EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 31% 568 47% 622 34% 31% 29% 27% 28% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite

34%

venue Gross Margins (%) Op. EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 31% 568 47% 622 34% 31% 29% 27% 28% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite cost pres

29%

ss Margins (%) Op. EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 31% 568 47% 622 34% 31% 29% 27% 28% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite cost pressures in

27%

rgins (%) Op. EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 31% 568 47% 622 34% 31% 29% 27% 28% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite cost pressures in Q1FY2

28%

(%) Op. EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 31% 568 47% 622 34% 31% 29% 27% 28% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite cost pressures in Q1FY23 7.

7.7%

8% 28% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite cost pressures in Q1FY23 7.7% 6.1% 44 27 5.3% 6.1% 2.8% 3.3% 19 38 12 22 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q-110F.Y82%1

6.1%

% 433 422 179 COVID Lockdowns QoQ gross margin flat, despite cost pressures in Q1FY23 7.7% 6.1% 44 27 5.3% 6.1% 2.8% 3.3% 19 38 12 22 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q-110F.Y82%1 Q1FY2

5.3%

79 COVID Lockdowns QoQ gross margin flat, despite cost pressures in Q1FY23 7.7% 6.1% 44 27 5.3% 6.1% 2.8% 3.3% 19 38 12 22 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q-110F.Y82%1 Q1FY22 -19 Q1FY23

“4 Q1 FY23 – Lighting & Switchgear Segment Performance Emerging Stronger, Q1 EBIT grew at CAGR of 42% for FY18-23 period Revenue ₹ in crore Revenue 29% 108 139 80% 176 98 75 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY23 EBIT & EBIT Margin (%) 13% 23 11% 10% 11 14 11% 10 6% 5 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY23 Orient Electric Limited ▪ ▪ ▪ ▪ The Lighting & Switchgear (L&S) segment reported revenue growth of 80% for Q1FY23 YoY.”

“The Company is progressing as per plan on the Hyderabad project and has kicked off during the quarter with ground-breaking and awarding of contracts.”

Distribution Channel

1

Revenue

1

Margins

1

Distribution Channel

• During Q4FY22, the Company transitioned its distribution approach for its Fans segment in the underpenetrated markets of Odisha and Bihar, with a direct-to-dealer approach from its traditional approach of selling via master distributors. The company in Q1FY23 has further extended to other low underpenetrated markets of Uttar Pradesh and Karnataka. The company expects a positive outcome from this action in these markets. 103 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY23 EBIT & EBIT Margin (%) 10% 10% 43 31 8% 37 7% 23

Revenue

▪ ECD segment witnessed a mixed trend with a robust pick up in demand in 1st half of the quarter with record heat temperature in several regions of the country. However, in the second half of the quarter, with a drop in consumer demand and expectation of price drop due to commodity correction led to de-stocking by the trade channel resulting in lower primary sales. Coolers demand witnessed positive traction, especially for the month of April’22 given a intense heat wave across the country. This helped in liquidating channel inventory and reduced Orient inventory as well. This paves way for a positive outlook in the next season. Water heater in ECD also started picking up towards the end of the Quarter, imparting optimism for the remainder year. Revenue for ECDs reached its pre covid levels despite various macro challenges in terms of higher inflation, global political turmoil and raw material supply bottlenecks. ▪ ▪

Margins

• ECD segment remains most susceptible to volatility in commodity prices which are basic RM for the company’s products. The industry has seen relentless inflation in commodity prices since the beginning of Q4FY21 and continuing till Q1FY23 with some respite towards fag end of Q1FY23. Q1FY19 Q1FY20 -7% Q1-F7Y21 Q1FY22 Q1FY23 Orient Electric Limited • However, the company has been able to withstand the RM pressure and took strategic cost control measures which arrested a significant fall in EBIT margins vis a vis fall in gross margins and are still able to clock in margins in line with Q1FY18/19 where gross margins were a significantly higher than current margins. 4 Q1 FY23 – Lighting & Switchgear Segment Performance Emerging Stronger, Q1 EBIT grew at CAGR of 42% for FY18-23 period Revenue ₹ in crore Revenue 29% 108 139 80% 176 98 75 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY23 EBIT & EBIT Margin (%) 13% 23 11% 10% 11 14 11% 10 6% 5 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY23 Orient Electric Limited ▪ ▪ ▪