Conference Call with Elecon Engineering Company Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Industrial Machinery company Elecon Engineering Company announced Q1FY26 results Revenue: Rs 491 crore compared to Rs 392 crore during Q1FY25, change 25% YoY. EBITDA: Rs 130 crore, change 41% YoY. PAT: Rs 175 crore, change 139% YoY. Prayasvin B. Patel, Chairman & Managing Director, Elecon Engineering Company, said: “For Q1FY26, Elecon reported consolidated revenue of Rs 491 crore, reflecting a healthy growth of 25% on a Y-o-Y basis. EBITDA stood at Rs 130 crore, with EBITDA margin at 26.6%. We have recognized Rs 35 crore as income from the arbitration settlement (Rs 25 crore in Revenue and Rs 10 crore in Other Income) as well as Rs 80 crore as exceptional gain pertaining to reclassification of investment in EIMCO Elecon (India) Limited. Including these, the PAT for the quarter stood at Rs 175 crore. Elecon continues to maintain its leadership position in the Indian market for both Industrial Gear Solutions and Material Handling Equipment. Our competitive edge is driven by advanced manufacturing capabilities, a comprehensive portfolio of high-quality products, and the ability to deliver custom-engineered solutions with optimized lead times, ensuring consistent and quality products for our diversified customers. In Q1FY26, our Material Handling Equipment (MHE) division continued to deliver a strong performance, with robust growth in revenue and uptick in margin. Performance in the MHE division was aided to some extent by the arbitration settlement income recognized in this quarter. With our pivot towards product supply and aftermarket services, we expect steady momentum in the MHE division in the coming years. Our Gear division delivered a resilient performance during the quarter, with a growth of 6.1% in revenue and EBIT margin at 18.4%. Margin was impacted on account of accelerated depreciation charge for assets which were capitalized in Q4FY25. Once capacities ramp up and revenue starts building up from the new capex, we expect the recovery in margin going forward. We are seeing healthy demand in both, domestic and overseas markets. In the domestic market, we are seeing healthy capacity addition activities in our core sectors of steel, power, and cement which will drive the growth. The overseas business too remains on a solid footing, with consistent traction seen across geographies. The enquiry levels from our customers are encouraging. We are steadily advancing towards our strategic objective of generating 50% of our consolidated revenue from international markets by FY30. Strengthening relationships with global OEMs and sustained brand-building initiatives continue to reinforce our confidence in achieving this milestone. Our growth strategy is supported by strategic alliances with international partners, ongoing investments in R&D; and product innovation, and a focused push within the high-growth MHE division. These efforts collectively position us to outperform broader industry trends and accelerate our domestic & global footprint. Our priority is to attain sustainable profitable growth and creating longterm value for all our stakeholders.” Result PDF
Industrial Machinery company Elecon Engineering Company announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue: Rs 798 crore, change 41% YoY. EBITDA: Rs 195 crore, change 44% YoY. PAT: Rs 146 crore, change 41%. FY25 Financial Highlights: Revenue: Rs 2,227 crore, change 15% YoY. EBITDA: Rs 543 crore, change 14% YoY. PAT: Rs 415 crore, change 17%. Prayasvin B. Patel, Chairman & Managing Director, Elecon Engineering Company, said: “For Q4FY25, Elecon reported consolidated revenue of Rs 798 crore, reflecting a robust growth of 41.3% on a YoY basis. The quarterly EBITDA stood at Rs 195 crore, with EBITDA margin at 24.5%. Profit after Tax (PAT) for Q4FY25 was Rs 146 crore, with PAT margin at 18.4%. For FY25, the consolidated revenue stood at Rs 2,227 crore, clocking 14.9% YoY growth, in line with our annual guidance of Rs 2,225 crore. The annual EBITDA stood at Rs 543 crore, with EBITDA margin at 24.4%. PAT for FY25 was Rs 415 crore, with PAT margin at 18.6%. Elecon continues to maintain its leadership position in the Indian market for both Industrial Gear Solutions and Material Handling Equipment. Our competitive edge is driven by advanced manufacturing capabilities, a comprehensive portfolio of high-quality products, and the ability to deliver custom-engineered solutions with optimized lead times, ensuring consistent and quality products for our diversified customers. In Q4FY25, the Material Handling Equipment (MHE) division saw a remarkable 98.2% year-on-year revenue growth. EBIT margin stood at 29.6% with an improvement of ~820 bps YoY. We expect good momentum in this segment in coming years. Our Gear division, in Q4FY25, also experienced a considerable rebound with growth of 28.9% in revenue and EBIT margin at 24.5%. This resurgence has been driven by strong demand in both domestic and international markets. Domestically, demand has picked up meaningfully, particularly from the steel, power, and cement sectors. Overseas business remains healthy, with solid traction seen across international markets. The enquiry levels remain robust, and we are seeing healthy demand internationally. We are steadily advancing towards our strategic objective of generating 50% of our consolidated revenue from international markets by FY30. Strengthening relationships with global OEMs and sustained brand-building initiatives continue to reinforce our confidence in achieving this milestone. In FY25, our international business revenue stood at Rs 517 crore, contributing approximately 23% of the consolidated revenue and reflected consistent progress in this direction. Our growth strategy is supported by strategic alliances with international partners, ongoing investments in R&D; and product innovation, and a focused push within the high-growth MHE division. These efforts collectively position us to outperform broader industry trends and accelerate our domestic & global footprint. Our priority is to attain sustainable profitable growth, creating long-term value for all our stakeholders.” Result PDF
Industrial Machinery company Elecon Engineering Company announced Q3FY25 results Revenue: Rs 529 crore compared to Rs 474 crore during Q3FY24, change 11.7% YoY. EBITDA: Rs 143 crore compared to Rs 120 crore during Q3FY24, change 18.4% YoY. EBITDA margin: 27.0% for Q3FY25. PAT: Rs 108 crore compared to Rs 90 crore during Q3FY24, change 19% YoY. PAT margin: 20.3% for Q3FY25. Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering, said: “For Q3FY25, Elecon reported consolidated revenues of Rs 529 crore, reflecting a 12% YoY growth. The quarter's EBITDA stood at Rs 143 crores, with EBITDA margins at 27%. Profit after Tax (PAT) for Q3FY25 was Rs 108 crore, with PAT margins at 20%. Elecon remains market leader in domestic market for Industrial Gear solutions and Material Handling Equipment, offering cutting-edge manufacturing, top-tier products, and the capability to deliver customized solutions with minimal lead times. In Q3FY25, our Material Handling Equipment (MHE) division saw a remarkable 72% YoY revenue growth, with EBIT margins improving by ~1,300 basis points to 31.6%. We expect a good momentum in this segment in coming quarters. Our Gear division, in Q3FY25, experienced a marginal growth 2.1% in revenues but saw an overall decline of 3.6% over 9MFY25 period due to delay in order inflows. We see this primarily due to sluggishness in domestic market which has resulted in delay of capex investments. We are working diligently to expand our wallet share in-spite of sluggishnessin domestic steel and sugar industry. Internationally, we are progressing toward our target of generating 50% of our revenue from overseas markets by FY30. In 9MFY25, international business contributed approximately 27% of our total consolidated revenue. Our evolving relationships with OEMs and ongoing brand-building efforts are giving us confidence to achieve this goal. Our strategic alliances with global players, continued investment in R&D; and product development, along with a focus on the MHE division, will help us outperform industry trends and achieve our long-term goals. Our priority remains towards profitable growth and creating long-term value for our shareholders.” Result PDF
Industrial Machinery company Elecon Engineering Company announced Q2FY25 results Financial Highlights: Gear Division: Revenue for Q2FY25 stood at Rs 398 crore as compared to Rs 423 crore in Q2FY24. Revenue from Gear division were impacted on account of delay in receipt of order from customers resulted in delay in execution within Q2FY25. We anticipate faster execution in balance H2FY25 to achieve the overall guidance for FY25. EBIT for Q2FY25 stood at Rs 82 crore as compared to Rs 110 crore in the corresponding quarter last year. The EBIT Margin for the quarter ended September 2024 stood at 20.5% as compared to 26.0% in the corresponding quarter last year. Margins in Gear division were primarily impacted on account of higher freight costs and one time repair and maintenance expenses. MHE Division: Revenue for the quarter stood at Rs 110 crore as compared to Rs 62 crore in the corresponding quarter last year, growing 77.8%YoY. EBIT for Q2FY25 stood at Rs 29 crore registering a growth of 124.3% YoY. The EBIT margins stood at 26.5% as against 21.0% in Q2FY24, an improvement of ~549 bpsYoY primarily on account of better product mix & higher contribution from the aftermarketsegment. The company continues to focus on the business of supplying products & aftermarket business for its MHE segment which has led to sharp turnaround in the profitability for this segment. The company is consistently securing new orders for product supply and capitalizing on growing opportunities in the aftermarket business. Our focus on product supply and aftersales are yielding positive results and are optimistic of growth in coming quarters in the MHE segment. Other Highlights: Breakthrough for overseas market for MHE Division: Successfully Secured an order from Overseas market valued of USD 1.65 million in Q2FY25. Improvement in Credit Ratings: LT -[ICRA] AA (Stable); ST: [ICRA] A1+ in July-24 improved from LT -[ICRA] AA-(Stable); ST: [ICRA] A1+ in June-23. Interim Dividend: Declared an interim dividend of Re 0.50/- each (i.e., 50%) per equity share of Face Value Re 1/- each. Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Co. said: For Q2FY25, Elecon reported consolidated revenues of Rs 508 crore, reflecting a 4.8% year-on-year growth. The quarter's EBITDA stood at Rs 112 crore, with EBITDA margins at 22.1%. Profit after Tax (PAT) for Q2FY25 was Rs 88 crore, with PAT margins at 17.3%. Elecon remains the domestic market leader in Industrial Gear Solutions and Material Handling Equipment, offering cutting-edge manufacturing, top-tier products, and the capability to deliver customized solutions with minimal lead times. In Q2FY25, our Material Handling Equipment (MHE) division saw a remarkable 77.8% year-on-year revenue growth, with EBIT margins improving by ~549 basis points to 26.5%. We expect continued growth in this segment, driven by infrastructure development, government initiatives, and an uptick in capital expenditure Our Gear division, however, experienced a 5.9% decline in revenue due to delay in order inflows. We see this as a temporary decline and expect to recover in the following quarters, remaining optimistic about overall revenue growth for FY25. Margins in the Gear division were affected by higher freight costs and changes in the product mix. Internationally, we are progressing toward our target of generating 50% of our revenue from overseas markets by FY30. In Q2FY25, international business contributed approximately 24% of our total consolidated revenue. With strong support from OEMs and ongoing brand-building efforts, we are confident in reaching this goal. Through strategic alliances in global markets, continued investment in R&D; and product development, and a focus on the MHE segment, we are confident in outperforming industry trends and achieving our long-term goals. Our priority remains sustainable revenue and profitability growth, creating long-term value for our shareholders. Result PDF
Industrial Machinery company Elecon Engineering Company announced Q1FY25 results: Elecon reported consolidated revenue of Rs 392 crore with an EBITDA margin of 23.5% and a PAT margin growth of 18.7% YoY for the first quarter. The gear division experienced a slight revenue decline to Rs 334 crore due to reduced order inflows impacted by the general elections. The material handling equipment (MHE) division saw a revenue increase to Rs 58 crore and an EBIT margin improvement by 320 basis points. Elecon’s international business contributed 34% to the total consolidated revenues, supporting the company's aim to achieve 50% of revenue from overseas markets by FY30. Commenting on the results, Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Co. said, "For Q1FY25, Elecon reported consolidated revenues from operations of Rs 392 crore, achieving an EBITDA margin of 23.5%. The company’s unwavering focus on profitability has been instrumental in its progress. Elecon delivered a PAT margin of 18.7% in Q1FY25, reflecting a YoY growth of ~ 110 bps and a QoQ increase of around 30 bps. We continue to remain optimistic of new order wins across sectors and across both our division – Gear & MHE. We continue to lead the domestic market in the Gear Segment, attributed to our stateof-the-art technology and our ability to provide customized solutions with the shortest lead times. This strategic advantage sets us apart from our competitors. For the quarter ending June 2024, our revenue from operations in the Gear Division was Rs 334 crore, compared to Rs 361 crore in Q1FY24. This decrease is primarily due to slower order inflows during the last quarter, influenced by the general elections, which impacted both private and public capital expenditure. However, we anticipate that post-election stability and government support for infrastructure development will have a positive impact, and we remain committed to our annual guidance. Internationally, we are on track to achieve our goal of deriving 50% of our revenue from overseas markets by FY30. In Q1FY25, our international business contributed approximately 34% to our overall consolidated revenues. With strong endorsements from existing OEMs and our ongoing brand-building and marketing efforts, we are confident in reaching this ambitious target. The MHE segment continues to enhance its profitability. In Q1FY25, the EBIT margin increased by approximately 320 basis points, reaching 26.0%, driven by an improved product mix and leveraging opportunities in the aftermarket service segment. We remain optimistic about the segment’s continued growth, supported by ongoing government initiatives in infrastructure and manufacturing. With ongoing strategic alliances in the overseas market, continued investments in R&D; and product development, and a strategic focus on the MHE segment, we are confident in outperforming the industry and achieving our organizational aspirations." Result PDF
Conference Call with Elecon Engineering Company Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.