Q2FY24 Quarterly Result Announced for Elecon Engineering Company Ltd.
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 PDF23-10-2023