Operating profit margin has declined from 24.49% to 22.10%, leading to 5.42% decline in operating profit to Rs 112.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 43.93% to 47.66%.   Employee cost decreased from 9.38% to 9.06%.   Other expenses rose from 21.19% to 21.32%.   Other direct service cost fell from 8.49% to 7.44%.   

Other income fell 9.24% to Rs 11.39 crore.  PBIDT fell 5.79% to Rs 123.69 crore.  Provision for interest fell 16.73% to Rs 2.19 crore.  PBDT fell 5.57% to Rs 121.5 crore.  Provision for depreciation fell 1.13% to Rs 13.13 crore.   Profit before tax down 6.08% to Rs 108.37 crore.  Share of profit/loss was 21.23% higher at Rs 2.17 crore.  Provision for tax was expense of Rs 22.82 crore, compared to Rs 28.6 crore.  Effective tax rate was 20.64% compared to 24.41%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 0.96% to Rs 87.72 crore.  

• Sales of Material Handling Equipment segment has gone up 77.85% to Rs 110.39 crore (accounting for 21.72% of total sales).  Sales of Transmission Equipment segment has gone down 5.93% to Rs 397.75 crore (accounting for 78.28% of total sales).  
• Profit before interest, tax and other unallocable items (PBIT) has slumped 9.92% to Rs 110.89 crore.  PBIT of Material Handling Equipment segment rose 124.29% to Rs 29.27 crore (accounting for 26.40% of total PBIT).  PBIT of Transmission Equipment segment fell 25.83% to Rs 81.62 crore (accounting for 73.60% of total PBIT).  
• PBIT margin of Material Handling Equipment segment rose from 21.02% to 26.52%.  PBIT margin of Transmission Equipment segment fell from 26.03% to 20.52%.  Margins in Gear/transmission division were primarily impacted on account of higher freight costs and one time repair and maintenance expenses. Overall PBIT margin fell from 25.39% to 21.82%.  

 For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Elecon Engineering Company has increased 0.14% to Rs 900.5 crore.  Sales of Material Handling Equipment segment has gone up 45.79% to Rs 168.64 crore (accounting for 18.73% of total sales).  Sales of Transmission Equipment segment has gone down 6.59% to Rs 731.96 crore (accounting for 81.27% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 8.62% to Rs 204.62 crore.  PBIT of Material Handling Equipment segment rose 75.80% to Rs 44.39 crore (accounting for 21.69% of total PBIT).  PBIT of Transmission Equipment segment fell 19.34% to Rs 160.23 crore (accounting for 78.31% of total PBIT).  

PBIT margin of Material Handling Equipment segment rose from 21.83% to 26.32%.  PBIT margin of Transmission Equipment segment fell from 25.35% to 21.89%.  Overall PBIT margin fell from 24.90% to 22.72%.  

Operating profit margin has declined from 24.32% to 22.73%, leading to 6.41% decline in operating profit to Rs 204.68 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 44.67% to 45.27%.   Employee cost increased from 10.03% to 10.25%.   Other expenses rose from 20.82% to 22.00%.   Other direct service cost fell from 8.38% to 8.06%.   

Other income rose 22.72% to Rs 25.82 crore.  PBIDT fell 3.86% to Rs 230.5 crore.  Provision for interest fell 12.16% to Rs 4.48 crore.  Loan funds rose to Rs 118.01 crore as of 30 September 2024 from Rs 45.48 crore as of 30 September 2023.  Inventories rose to Rs 266.58 crore as of 30 September 2024 from Rs 261.78 crore as of 30 September 2023.  Sundry debtors were higher at Rs 448.69 crore as of 30 September 2024 compared to Rs 375.97 crore as of 30 September 2023.  Cash and bank balance declined from Rs 308.73 crore as of 30 September 2023 to Rs 235.14 crore as of 30 September 2024.  Investments rose to Rs 393.36 crore as of 30 September 2024 from Rs 107.26 crore as of 30 September 2023 .  

PBDT fell 3.68% to Rs 226.02 crore.  Provision for depreciation rose 1.05% to Rs 25.96 crore.  Fixed assets increased to Rs 720.26 crore as of 30 September 2024 from Rs 635.68 crore as of 30 September 2023.  Intangible assets declined from Rs 120.17 crore to Rs 101.88 crore.  

Profit before tax down 4.26% to Rs 200.06 crore.  Share of profit/loss was 72.12% higher at Rs 4.63 crore.  Provision for tax was expense of Rs 43.61 crore, compared to Rs 50.12 crore.  Effective tax rate was 21.31% compared to 23.68%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 0.28% to Rs 161.08 crore.  

Equity capital stood at Rs 22.44 crore as of 30 September 2024 to Rs 22.44 crore as of 30 September 2023.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 59.27% as of 30 September 2024 ,compared to 59.29% as of 30 September 2023 .  

Cash flow from operating activities decreased to Rs 127.20 crore for YTD ended September 2024 from Rs 178.03 crore for YTD ended September 2023.  Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 39.75 crore, compared to Rs 29.17 crore during the YTD ended September 2023.  

 Order book

Gear Division: The order intake for Q2FY25 stood at Rs 432 Crs. as compared to Rs 375 Crs. in Q2FY24, , a Y-o-Y growth of 15.2%. Order in Hand is Rs 627 Crs as on 30th September 2024. 

 MHE Division: The order intake for Q2FY25 stood at Rs 104 Crs. as compared to Rs 41 Crs. in Q2FY24, a Y-o-Y growth of 153.9%. Order in Hand is Rs 339 Crs as on 30th September 2024.

Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Co. Ltd. Said, For Q2FY25, Elecon reported consolidated revenues of ?508 crores, reflecting a 4.8% year-on-year growth. The quarter`s EBITDA stood at ?112 crores, with EBITDA margins at 22.1%. Profit after Tax (PAT) for Q2FY25 was ?88 crores, 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 timing difference 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. 

Elecon Engineering Company : Consolidated Results

Quarter ended Year to Date Year ended Particulars 202409 202309 Var.(%) 202409 202309 Var.(%) 202403 202303 Var.(%) Net Sales (including other operating income) 508.14 484.90 4.79 900.50 899.24 0.14 1,937.42 1,529.68 26.66 OPM (%) 22.10 24.49 -239 bps 22.73 24.32 -159 bps 24.49 22.15 234 bps OP 112.30 118.74 -5.42 204.68 218.71 -6.41 474.47 338.88 40.01 Other Inc. 11.39 12.55 -9.24 25.82 21.04 22.72 44.06 20.06 119.64 PBIDT 123.69 131.29 -5.79 230.50 239.75 -3.86 518.53 358.94 44.46 Interest 2.19 2.63 -16.73 4.48 5.10 -12.16 8.64 13.31 -35.09 PBDT 121.50 128.66 -5.57 226.02 234.65 -3.68 509.89 345.63 47.52 Depreciation 13.13 13.28 -1.13 25.96 25.69 1.05 50.92 49.04 3.83 PBT 108.37 115.38 -6.08 200.06 208.96 -4.26 458.97 296.59 54.75 Share of Profit/(Loss) from Associates 2.17 1.79 21.23 4.63 2.69 72.12 6.41 3.25 97.23 PBT before EO 110.54 117.17 -5.66 204.69 211.65 -3.29 465.38 299.84 55.21 EO Income 0 0 - 0 0 - 0 0 - PBT after EO 110.54 117.17 -5.66 204.69 211.65 -3.29 465.38 299.84 55.21 Taxation 22.82 28.6 -20.21 43.61 50.12 -12.99 109.8 62.33 76.16 PAT 87.72 88.57 -0.96 161.08 161.53 -0.28 355.58 237.51 49.71 Minority Interest (MI) 0 0 - 0 0 - 0 0 - Net profit 87.72 88.57 -0.96 161.08 161.53 -0.28 355.58 237.51 49.71 P/(L) from discontinued operations net of tax 0 0 - 0 0 - 0 0 - Net profit after discontinued operations 87.72 88.57 -0.96 161.08 161.53 -0.28 355.58 237.51 49.71 EPS (Rs)* 3.91 3.95 -0.96 7.18 7.20 -0.28 15.85 10.58 49.71 * EPS is on current equity of Rs 22.44 crore, Face value of Rs 1, 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

td>-   Quarter ended Year to Date Year ended % of (Total) 202409 202309 Var.(%) % of (Total) 202409 202309 Var.(%) % of (Total) 202403 202303 Var.(%) Sales Material Handling Equipment 21.72 110.39 62.07 77.85 18.73 168.64 115.67 45.79 15.12 292.99 216.25 35.49 Transmission Equipment 78.28 397.75 422.83 -5.93 81.27 731.96 783.57 -6.59 84.88 1,644.43 1,313.43 25.20 Others 0.00 0.00 0.00 - Total Reported Sales 100.00 508.14 484.90 4.79 100.00 900.60 899.24 0.15 100.00 1,937.42 1,529.68 26.66 Less: Inter segment revenues   0.00 0.00 -   0.00 0.00   0.00 0.00 - Net Sales 100.00 508.14 484.90 4.79 100.00 900.60 899.24 0.15 100.00 1,937.42 1,529.68 26.66 PBIT Material Handling Equipment 26.40 29.27 13.05 124.29 21.69 44.39 25.25 75.80 13.99 68.37 32.60 109.72 Transmission Equipment 73.60 81.62 110.05 -25.83 78.31 160.23 198.66 -19.34 86.01 420.43 288.41 45.78 Others 0.00 0.00 0.00 - Total PBIT 100.00 110.89 123.10 -9.92 100.00 204.62 223.91 -8.62 100.00 488.80 321.01 52.27 Less : Interest 2.19 2.63 -16.73 4.48 5.10 -12.16 8.64 13.32 -35.14 Add: Other un-allcoable 1.84 -3.30 LP 4.55 -7.16 LP -14.78 -7.85 -88.28 PBIT Margin(%) Material Handling Equipment   26.52 21.02 549.04   26.32 21.83 449.30   23.34 15.08 826.01 Transmission Equipment   20.52 26.03 -550.66   21.89 25.35 -346.27   25.57 21.96 360.84 Others   0.00 0.00 0.00 PBT 100.00 110.54 117.17 -5.66 100.00 204.69 211.65 -3.29 100.00 465.38 299.84 55.21