Industrial Machinery company Elecon Engineering Company announced Q2FY24 results: 1. Financial Performance: - Revenue for the quarter stood at Rs 485 Crores, a growth of 25% on a year-on-year basis. - EBITDA margin improved by 70 basis points to 24.5%. - PAT margin improved by 310 basis points to 18.0%. 2. Geographic Performance: - Domestic revenue grew by 24.8%, while overseas revenue grew by 23.9% in H1FY24. 3. Industrial Gear Division: - Revenue for the division stood at Rs. 423 Crores in Q2FY24, a growth of 27% YoY. - EBIT for the division grew by 38.2% to Rs. 110 Crores in Q2FY24. - Order intake for the division was Rs. 375 Crores in Q2FY24, with an order book of Rs. 615 Crores as of 30th September 2023. 4. Material Handling Equipment (MHE) Division: - Revenue for the division stood at Rs. 62 Crores in Q2FY24, a growth of 12% year-on-year. - EBIT for the division grew by 68% to Rs. 13 Crores in Q2FY24. - Order intake for the division was Rs. 41 Crores in Q2FY24, with an order book of Rs 123 Crores as of 30th September 2023. 5. Order Book Position: - The total order inflow for Q2FY24 was Rs. 416 Crores, with an order book of Rs. 738 Crores as of 30th September 2023. 6. Development on Overseas OEM Business: - Elecon Engineering Company signed off on six OEM businesses in the European market, with an estimated annual business volume of ~Euro 5.5 Million. - Prototype development is underway, and commercial production is expected to start from FY25. 7. Arbitration Awards: - The company successfully realized Rs. 30.9 Crores from the arbitration award as of September 2023. - Fresh arbitration proceedings initiated with a value of Rs. 31.0 Crores in Q1FY24. 8. Credit Ratings: - Credit ratings were upgraded to LT - [ICRA] AA- (Stable) and ST: [ICRA] A1+ in June-23. 9. Guidance and Outlook: - Elecon Engineering Company expects revenue of ~Rs. 2,000 Crores for FY24, with Rs. 1,700 Crores from the Gear Division and Rs. 300 Crores from the MHE Division. Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Co. Ltd.: "India is positioned to solidify its status as a global manufacturing powerhouse, owing to unwavering government support and substantial investment inflows. Our optimism regarding the sector's expansion remains unwavering, and at Elecon, we proudly uphold our position as the market leader. We continue to provide industrial gear solutions rooted in a rich legacy of over seven decades of invaluable experience. We are dedicated to advancing research and product development, reflecting our core mission to offer high-quality, technologically advanced, and globally competitive product range. Our strategic approach involves exploring new geographic markets, maximizing opportunities within our existing markets, and expanding our presence across newly added industries by delivering top-notch services with the lowest possible lead times. In the quarter ending on September 30, 2023, our consolidated revenue stood at Rs. 485 Crores, a growth of 25% on Y-o-Y basis. This growth is a majorly attributable to increase in order inflows across industries, increasing wallet share among existing customers & onboarding of new customers. Result PDF
Industrial Machinery Company Elecon Engineering Company announced Q1FY24 results: Consolidated Q1FY24 vs Q1FY23: Revenue: Rs 414 crore vs Rs 328 crore, up 26.4% YoY Adj. EBITDA: Rs 96 crore vs Rs 72 crore, up 33.2% YoY PAT: Rs 73 crore vs Rs 42 crore, up 72.5% YoY Adj. EBITDA margin: 23% vs 22%, up 117 bps YoY PAT margin: 18% vs 13%, up 470 bps YoY Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Company said, “The capex cycle is on a growth trajectory driven by favorable government policies and schemes aimed at supporting infrastructure development. At Elecon, we specialize in providing industry-agnostic gear solutions, which positions us well to capitalize on this upward trend. In Q1FY24, our consolidated revenues stood at Rs 414 crore, reflecting a growth of 26% YoY. Our PAT for the quarter stood at Rs 73 crore, up by 72% on a YoY basis. This outstanding performance is a testimony of our deliberate efforts to develop high-quality products while consistently delivering unbeatable service levels, resulting in new order wins. Elecon maintains its position as the market leader in the Industrial Gear Division, with an unparalleled product portfolio. Revenues from the gear division witnessed a year-on-year growth of 27%. Additionally, through our management's cognitive ability and adaptive mindset, we have successfully revitalized the MHE Division, making it profitable once again. We continue to focus on the supply of Products & after-market business in our MHE business, this segment delivered an EBIT Margin of 23%, a significant improvement of ~1,200 bps compared to the same quarter last year. We are fully committed to its continued growth. We continue to invest in R&D; and Product Development to deliver globally competitive products. The Service levels and lower lead times have enabled us to create a brand for ‘Elecon’ across markets. We envisage expanding our market share by further penetrating existing geographies and exploring new territories. We continue to make strides to grow our overseas business and the recent development concerning signing five OEM businesses in the European market is a positive indicator of our progress. With a strong order book in hand across segments, continued focus to penetrate the export markets, and maintaining our leadership position in the domestic geography, we are optimistic of sustaining the growth momentum going forward.” Result PDF