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.
Industrial Machinery company Elecon Engineering Company announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Consolidated Financial Highlights: Revenue for Q4FY24 stood at Rs 565 crore as compared to Rs 425crore in Q4FY23 EBITDA for Q4FY24 stood at Rs 135 crore as compared to Rs 93 crore in Q4FY23 PAT for Q4FY24 stood at Rs 104 crore as compared to Rs 68 crore in Q4FY23 Industrial Gear Division: • Revenue for Q4FY24 stood at Rs 452 crore as compared to Rs 366 crore in Q4FY23, up by 23% on a YoY basis. • EBIT for Q4FY24 stood at Rs 115 crore as compared to Rs 78 crore in the corresponding quarter last year, a growth of 47%. MHE Division: • Revenue for the quarter stood at Rs 112 crore as compared to Rs 58 crore in the corresponding quarter last year, growing 93% YoY. • EBIT for Q4 FY24 stood at Rs 26 crore registering a growth of 136% YoY. The EBIT margins stood at 23.4% as against 19.2% in Q4 FY23, an improvement of ~420 bps YoY. FY24 Financial Highlights: Industrial Gear Division: Revenue for the year ended March 2024 stood at Rs 1,644 crore, up by 25% on a YoY basis. EBIT for FY24 stood at Rs 420 crore as against Rs 288 crore in FY23, growth of 46% YoY growth. The EBIT Margin for the year ended March 2024 stood at 25.6%. MHE Division: Revenue for the year ended March 2024 stood at Rs 293 crore, registering a growth of 36% on a YoY basis. The EBIT Margin for the year ended March 2024 stood at 23.3%, an improvement of ~830 bps YoY primarily on account of better product mix & higher contribution from the aftermarket segment. Commenting on the results, Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering said, "We are delighted to share that Elecon has delivered its highest ever revenues of Rs 1,937 crore up by 27% YoY and highest ever PAT of Rs 356 crore indicating a growth of 50% YoY for FY24 which is a testament to our commitment to innovation and customer needs. This growth is largely attributable to increased order inflows across industries, increase in wallet share among existing customers & new customer addition. Our performance solidifies our status as the leading domestic player with approximately 39% market share in the industrial gear segment. Entering FY25 and beyond, we aim to expand our presence in international markets while reinforcing relationships with current OEM partners and forging new alliances. Concurrently, we recognize India’s vast potential and upswing in capex cycle and are committed to retain our leadership position. At Elecon, innovation remains at the core. We continue to invest in research & development for product enhancement and development to deliver best in class products to our customers. Our financial achievements in FY24—from record-breaking revenues to robust EBITDA margins—underscore our resilience and strategic vision. With government capital expenditure and emphasis on infrastructure development fueling growth prospects, our tactical focus on exports coupled with rising order inquiries across various products and sectors positions us favorably to grow faster than the industry." Result PDF
Industrial Machinery company Elecon Engineering Company announced Q3FY24 & 9MFY24 results: Financial Performance Revenue: In Q3FY24, Elecon Engineering Company reported a revenue of Rs 474 crore, a 21.8% increase from Q3FY23. The revenue for 9MFY24 was Rs 1,373 crore, marking a 24.2% YoY increase. EBITDA: The EBITDA for Q3FY24 stood at Rs 120 crore, which is a 36% increase compared to Rs 89 crore in Q3FY23. The EBITDA margin improved by 265 basis points to 25.4% in Q3FY24. Profit After Tax (PAT): PAT for Q3FY24 saw a growth of 44.1%, reaching Rs 90 crore. The PAT margin increased by 300 basis points YoY to 19.1% in Q3FY24. Segment Performance Industrial Gear Division: The revenue for Q3FY24 was Rs 409 crore, with a significant YoY growth of 24%. EBIT for this segment in Q3FY24 was Rs 111 crore, a growth of 48% compared to the corresponding quarter last year. Material Handling Equipment (MHE) Division: Revenue for Q3FY24 stood at Rs 65 crore, an 8% increase YoY. The EBIT for this segment was Rs 12 crore for Q3FY24, a 38% increase YoY. Operational Highlights Capex: Invested Rs 26.0 crore up to 9MFY24 out of the planned Rs 70.0 crore for FY24. Arbitration Awards: Recovered Rs 37.2 crore out of Rs 63.0 crore by December 2023. Overseas OEM Business: Signed off Ten OEM businesses, with commercial production expected from FY25. Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Co. said, "Recent forecasts signal a promising trajectory for India's GDP, poised to achieve a commendable growth rate of 6.3% in 2024. Bolstered by the government's dedicated attention to infrastructure development, an amplified emphasis on domestic production, and technological advancements, Elecon Engineering stands strategically positioned to capitalize on significant growth opportunities. Our unwavering commitment to delivering a comprehensive range of solutions spanning sectors such as Cement, Power, Sugar, Steel, etc. more solidifies our enduring market leadership domestically, coupled with an expansion of our global presence in the gear segment. Our extensive network uniquely allows us to capture a substantial international market share. Continuous R&D; investments have yielded substantial process improvements, leading to industry-leading short lead times while maintaining an unwavering focus on delivering uncompromised quality. Our key focus pillars include expanding our overseas market share, progressively growing our MHE division in both products and after-sale services, maximizing opportunities within our existing markets, and extending our presence into newly added industries. Result PDF