Orient Electric Q1 Results: Profit rises on higher consumer durables demand

India's Orient Electric reported a nearly 4% rise in first-quarter profit on Wednesday, as demand in its mainstay consumer durables business, which includes fans and home appliances, increased.

The New Delhi-based company said its profit for the April-June quarter rose to 196.9 million rupees ($2.38 million) from 189.5 million rupees a year ago.

KEY CONTEXT

The June quarter is generally a peak demand period for companies with consumer durable businesses, which includes products like fans and air-conditioners. However, analysts said unseasonal rains and inflationary pressures resulted in erratic demand for summer-centric products in the quarter, and that demand for cables and wires was robust on the back of infrastructure spending.

Peer Havells India reported higher June-quarter profit on stronger demand for wires and cables, underscoring the rising infrastructure spending by the federal government.