KOCHI: OEN India Ltd witnessed a one-third dip in its net profit in the financial year 2023-24 (FY24) to Rs16.64 crore compared with the previous year’s profit of Rs24.75 crore.
OEN India is one of the leading manufacturers and an established player in the relays and switches market in India, with a wide range of products.
The drop in FY24 profit was despite a marginal year-on-year increase in the company’s revenue in FY24 from Rs250.26 crore to Rs262.12 crore.
OEN was incorporated in 1968 by KA Mathew in a joint venture (JV) with OAK Industries Inc., USA (OAK), with 25 per cent equity investment by Kerala State Industrial Development Corporation (KSIDC).
OEN ended JV with OAK in 1996. Pamela Anna Mathew (daughter of KA Mathew) is the company’s current Chairperson and Managing Director with over four decades of rich experience.
The company has its manufacturing facilities in Cochin and Pune with combined annual production capacity of over 65 million relays/switches and other products.
For EV markets
The company has recently developed products catering to EV market and smart meter segment, and the revenue contribution from smart meter segment is expected to increase in FY25.
“This will reduce the concentration of revenue from top 10 customers in current year,” said CARE Ratings in its report.
OEN is engaged in manufacturing electromechanical components, such as relays, and switches and others, and caters to market segments, such as automotive, communication, industrial instrumentation and controls strategic electronics, and high-end consumer electronics.
Capital expenditure
Owing to the increase in demand and as a measure of expanding its geographical presence, the company is undertaking capital expenditure to increase capacity at its Pune plant to 25 million relays from the current capacity of 12 million relays per annum, according to the report.
New products
CARE said the new facility would cater to new products, including products that cater to the EV segment and smart meters as a response to the evolving market requirements.
The total project cost is Rs52.71 crore funded by term loan of Rs30 crore and balance Rs22.71 crore by way of internal accruals.
The report also added that as on April 31, 2024, OEN India has incurred a cost of Rs36.4 crore, for which the debt of Rs21.18 crore has been availed.
The plant has been partially operationalised, and the company is adding machinery in a phased manner. The plant is expected to become fully operational by H2FY24, the report added.
