Results     20-Apr-24
Analysis
Elecon Engineering Company
Net up 53% on good operating show,
Consolidated net sales (including other operating income) of Elecon Engineering Company has increased 33% to Rs 564.62 crore.  Sales of Material Handling Equipment segment has gone up 93.34% to Rs 112.29 crore (accounting for 19.89% of total sales).  Sales of Transmission Equipment segment has gone up 23.43% to Rs 452.33 crore (accounting for 80.11% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 58.31% to Rs 141.53 crore.  PBIT of Material Handling Equipment segment rose 135.43% to Rs 26.25 crore (accounting for 18.55% of total PBIT).  PBIT of Transmission Equipment segment rose 47.32% to Rs 115.28 crore (accounting for 81.45% of total PBIT).  

PBIT margin of Material Handling Equipment segment rose from 19.20% to 23.38%.  PBIT margin of Transmission Equipment segment rose from 21.35% to 25.49%.  Overall PBIT margin rose from 21.06% to 25.07%.  

Operating profit margin has jumped from 21.87% to 23.97%, leading to 45.78% rise in operating profit to Rs 135.36 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.78% to 41.98%.   Employee cost increased from 7.66% to 10.14%.   Other expenses rose from 20.79% to 23.14%.   Other direct service cost fell from 8.72% to 7.37%.   

Other income rose 66.97% to Rs 13.04 crore.  PBIDT rose 47.43% to Rs 148.4 crore.  Provision for interest fell 55.43% to Rs 2.05 crore.  PBDT rose 52.35% to Rs 146.35 crore.  Provision for depreciation fell 7.50% to Rs 12.58 crore.  Profit before tax grew 62.22% to Rs 133.77 crore.  Share of profit/loss was 51.53% higher at Rs 2.47 crore.  Provision for tax was expense of Rs 32.59 crore, compared to Rs 16.15 crore.  Effective tax rate was 23.92% compared to 19.21%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 52.56% to Rs 103.65 crore.  

 Full year results analysis.


Net sales (including other operating income) of Elecon Engineering Company has increased 26.66% to Rs 1937.42 crore.  Sales of Material Handling Equipment segment has gone up 35.49% to Rs 292.99 crore (accounting for 15.12% of total sales).  Sales of Transmission Equipment segment has gone up 25.20% to Rs 1,644.43 crore (accounting for 84.88% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 52.27% to Rs 488.80 crore.  PBIT of Material Handling Equipment segment rose 109.72% to Rs 68.37 crore (accounting for 13.99% of total PBIT).  PBIT of Transmission Equipment segment rose 45.78% to Rs 420.43 crore (accounting for 86.01% of total PBIT).  

PBIT margin of Material Handling Equipment segment rose from 15.08% to 23.34%.  PBIT margin of Transmission Equipment segment rose from 21.96% to 25.57%.  Overall PBIT margin rose from 20.99% to 25.23%.  

Operating profit margin has jumped from 22.15% to 24.49%, leading to 40.01% rise in operating profit to Rs 474.47 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.87% to 43.86%.   Employee cost increased from 9.76% to 9.84%.   Other expenses rose from 21.29% to 21.53%.   Other direct service cost rose from 7.91% to 8.15%.   

Other income rose 119.64% to Rs 44.06 crore.  PBIDT rose 44.46% to Rs 518.53 crore.  Provision for interest fell 35.09% to Rs 8.64 crore.  Loan funds rose to Rs 70.46 crore as of 31 March 2024 from Rs 51.58 crore as of 31 March 2023.  Inventories declined from Rs 278.80 crore as of 31 March 2023 to Rs 229.74 crore as of 31 March 2024.  Sundry debtors were higher at Rs 445.10 crore as of 31 March 2024 compared to Rs 345.77 crore as of 31 March 2023.  Cash and bank balance rose to Rs 263.31 crore as of 31 March 2024 from Rs 210.37 crore as of 31 March 2023.  Investments rose to Rs 286.41 crore as of 31 March 2024 from Rs 76.67 crore as of 31 March 2023 .  

PBDT rose 47.52% to Rs 509.89 crore.  Provision for depreciation rose 3.83% to Rs 50.92 crore.  Fixed assets increased to Rs 667.69 crore as of 31 March 2024 from Rs 651.29 crore as of 31 March 2023.  Intangible assets declined from Rs 102.82 crore to Rs 101.77 crore.  

Profit before tax grew 54.75% to Rs 458.97 crore.  Share of profit/loss was 97.23% higher at Rs 6.41 crore.  Provision for tax was expense of Rs 109.8 crore, compared to Rs 62.33 crore.  Effective tax rate was 23.59% compared to 20.79%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 49.71% to Rs 355.58 crore.  

Management Comments

Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Co. Ltd. Said, We are delighted to share that Elecon has delivered its highest ever revenues of Rs. 1,937 crs up by 27% Y-o-Y and highest ever PAT of Rs. 356 crs indicating a growth of 50% Y-o-Y 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.

Other developments

Dividend: Proposed final dividend of Rs 2.0/- (i.e. 100%) per equity share (Subject to shareholders approval) 

Proposed Stock Split: BOD approved stock split from Rs 2.0/- per share to Re 1.0/- per share (Subject to shareholders approval) 

Equity capital stood at Rs 22.44 crore as of 31 March 2024 to Rs 22.44 crore as of 31 March 2023.  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 59.27% as of 31 March 2024 ,compared to 59.29% as of 31 March 2023 .  

Loan funds rose to Rs 70.46 crore as of 31 March 2024 from Rs 51.58 crore as of 31 March 2023.  Inventories declined from Rs 278.80 crore as of 31 March 2023 to Rs 229.74 crore as of 31 March 2024.  Sundry debtors were higher at Rs 445.10 crore as of 31 March 2024 compared to Rs 345.77 crore as of 31 March 2023.  Cash and bank balance rose to Rs 263.31 crore as of 31 March 2024 from Rs 210.37 crore as of 31 March 2023.  Investments rose to Rs 286.41 crore as of 31 March 2024 from Rs 76.67 crore as of 31 March 2023 .  Fixed assets increased to Rs 667.69 crore as of 31 March 2024 from Rs 651.29 crore as of 31 March 2023.  Intangible assets declined from Rs 102.82 crore to Rs 101.77 crore.  

Cash flow from operating activities increased to Rs 364.81 crore for year ended March 2024 from Rs 309.12 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 31.49 crore, compared to Rs 47.06 crore during the year ended March 2023.  

Elecon Engineering Company : Consolidated Results
 Quarter endedYear ended
Particulars202403202303Var.(%)202403202303Var.(%)
Net Sales (including other operating income)564.62424.5433.001,937.421,529.6826.66
OPM (%)23.9721.87210 bps24.4922.15234 bps
OP135.3692.8545.78474.47338.8840.01
Other Inc.13.047.8166.9744.0620.06119.64
PBIDT148.40100.6647.43518.53358.9444.46
Interest2.054.60-55.438.6413.31-35.09
PBDT146.3596.0652.35509.89345.6347.52
Depreciation12.5813.6-7.5050.9249.043.83
PBT133.7782.4662.22458.97296.5954.75
Share of Profit/(Loss) from Associates2.471.6351.536.413.2597.23
PBT before EO136.2484.0962.02465.38299.8455.21
EO Income00-00-
PBT after EO136.2484.0962.02465.38299.8455.21
Taxation32.5916.15101.80109.862.3376.16
PAT103.6567.9452.56355.58237.5149.71
Minority Interest (MI)00-00-
Net profit103.6567.9452.56355.58237.5149.71
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations103.6567.9452.56355.58237.5149.71
EPS (Rs)*9.246.0652.5631.6921.1749.71
* EPS is on current equity of Rs 22.44 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Elecon Engineering Company : Consolidated Segment Results
 Quarter endedYear ended
% of (Total)202403202303Var.(%)% of (Total)202403202303Var.(%)
Sales
Material Handling Equipment19.89112.2958.0893.3415.12292.99216.2535.49
Transmission Equipment80.11452.33366.4623.4384.881,644.431,313.4325.20
Total Reported Sales100.00564.62424.5433.00100.001,937.421,529.6826.66
Less: Inter segment revenues 0.000.00- 0.000.00-
Net Sales100.00564.62424.5433.00100.001,937.421,529.6826.66
PBIT
Material Handling Equipment18.5526.2511.15135.4313.9968.3732.60109.72
Transmission Equipment81.45115.2878.2547.3286.01420.43288.4145.78
Total PBIT100.00141.5389.4058.31100.00488.80321.0152.27
Less : Interest2.054.60-55.438.6413.32-35.14
Add: Other un-allcoable-3.24-0.71-356.34-14.78-7.85-88.28
PBIT Margin(%)
Material Handling Equipment 23.3819.20417.93 23.3415.08826.01
Transmission Equipment 25.4921.35413.29 25.5721.96360.84
PBT100.00136.2484.0962.02100.00465.38299.8455.21
Previous News
  Elecon Engineering Company to convene board meeting
 ( Corporate News - 22-Oct-22   09:48 )
  Elecon Engineering announces incorporation of step-down subsidiary in South Africa
 ( Corporate News - 17-Nov-23   18:58 )
  Elecon Engineering Company decides to continue shut down of plants
 ( Corporate News - 27-Mar-20   09:23 )
  Elecon Engineering Company consolidated net profit rises 204.93% in the December 2019 quarter
 ( Results - Announcements 31-Jan-20   16:59 )
  Elecon Engineering Company standalone net profit rises 72.41% in the March 2018 quarter
 ( Results - Announcements 04-May-18   17:26 )
  Elecon Engineering Company reports standalone net loss of Rs 38.75 crore in the June 2017 quarter
 ( Results - Announcements 03-Aug-17   16:30 )
  Elecon Engineering Company to conduct AGM
 ( Corporate News - 27-May-23   14:15 )
  Elecon Engineering Company to discuss results
 ( Corporate News - 10-Oct-23   10:33 )
  Board of Elecon Engineering Company recommends interim dividend
 ( Corporate News - 21-Oct-23   09:51 )
  Elecon Engineering Company to declare Quarterly Result
 ( Corporate News - 20-Jan-21   12:49 )
  Elecon Engineering Company standalone net profit declines 31.81% in the March 2016 quarter
 ( Results - Announcements 28-Apr-16   10:35 )
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