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
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