Eimco Elecon (India) Limited , a leading manufacturer of underground mining equipment and construction machinery, has released its Q1 investor presentation, revealing a mixed financial performance and a substantial reduction in its order book.

Financial Performance

The company reported a slight decline in revenue for Q1, with figures dropping to INR 68.00 crores, down 3.1% from INR 70.00 crores in the same quarter of the previous fiscal year. The decline in revenue was accompanied by a more significant decrease in profitability metrics:

Despite the overall decline, it's worth noting that the company managed to maintain a relatively stable profit after tax (PAT) margin, which saw a slight increase of 20 basis points.

Order Book Concerns

Perhaps the most striking aspect of the report is the significant reduction in Eimco Elecon's open order book. As of the end of the quarter, the order book stood at INR 39.00 crores, marking a substantial 68.8% decrease from INR 125.00 crores in the same period last year. This sharp decline could potentially impact the company's future revenue streams and may be a cause for concern among investors.

Company Overview

Eimco Elecon (India) Limited, with its 51 years of experience, operates from its manufacturing facility in Gujarat. The company specializes in producing underground mining equipment and construction machinery. It boasts a network of sales and service centers across India, catering primarily to clients in the coal mining and construction sectors.

Quarterly Performance Highlights

• Gross Profit: Improved to INR 37.00 crores in Q1 from INR 34.00 crores in Q1 of the previous year, with the gross profit margin expanding to 55.0% from 49.5%.
• Other Income: Increased to INR 8.00 crores from INR 5.00 crores in the same quarter last year.
• Earnings Per Share (EPS): Slightly decreased to INR 25.11 from INR 25.63 in Q1 of the previous year.

Outlook

While Eimco Elecon has managed to maintain relatively stable profitability in the face of declining revenue, the significant reduction in its order book may pose challenges for future growth. The company's ability to secure new orders and expand its client base could be crucial in the coming quarters to offset the current decline in its order book.

Eimco Elecon (India) Limited , a leading manufacturer of mining and construction equipment, has initiated a postal ballot to seek shareholder approval for the appointment of Mr. Kamlesh Nalin Shah as a Whole-time Director designated as Executive Director. The company's Board of Directors, on the recommendation of the Nomination and Remuneration Committee, has proposed this appointment for a three-year term from September 10, 2025, to September 9, 2028.

Key Details of the Proposed Appointment

• Position: Whole-time Director designated as Executive Director
• Term: 3 years (September 10, 2025 - September 9, 2028)
• Remuneration Package:
  • Basic Salary: Rs. 4.80 lakh per month
  • Allowances: Rs. 8.55 lakh per month
  • Variable Incentives: Up to Rs. 25 lakh per annum

Professional Background

Mr. Kamlesh Nalin Shah brings nearly 27 years of experience to the role, with expertise in:

• Strategic Financial Operations
• Taxation & Commercial Operations
• Forex Management
• Corporate Finance
• Treasury Management
• Mergers & Acquisitions
• Managing Overseas Operations
• Financial Management, MIS & Costing
• Investor Relations

Voting Process

Eimco Elecon has engaged MUFG Intime India Private Limited to facilitate the e-voting process for shareholders. The remote e-voting period is scheduled as follows:

• Commencement: August 7, 2025, at 9:00 AM (IST)
• Conclusion: September 5, 2025, at 5:00 PM (IST)

Resolutions for Shareholder Approval

1. Ordinary Resolution: Appointment of Mr. Kamlesh Nalin Shah as a Director of the Company.
2. Special Resolution: Appointment of Mr. Kamlesh Nalin Shah as a Whole-time Director designated as Executive Director.

Company Performance

To provide context for the proposed appointment, Eimco Elecon's recent financial performance is as follows:

The company's financial performance shows a consistent growth trend over the past three fiscal years, with significant improvements in both revenue and profitability.

Conclusion

Eimco Elecon's decision to appoint Mr. Kamlesh Nalin Shah as Executive Director aligns with its strategy to strengthen its leadership team. Shareholders are encouraged to participate in the e-voting process to voice their decision on this significant appointment. The outcome of the postal ballot is expected to be announced within two working days from the conclusion of the remote e-voting period.