Elecon Engineering Company , a leading manufacturer of industrial gears and material handling equipment in Asia, has announced its financial results for the second quarter. The company demonstrated resilient performance amid a dynamic market environment.

Q2 Financial Highlights

• Consolidated revenue increased by 14% year-over-year to ₹580.00 crores
• EBITDA grew by 11.9% to ₹126.00 crores, with a margin of 21.7%
• Net profit remained stable at ₹88.00 crores

Segment Performance

Gear Division

• Revenue stood at ₹441.00 crores, up 9% year-over-year
• EBIT margin at 19.2%, slightly lower due to increased employee costs and product mix changes

Material Handling Equipment (MHE) Division

• Revenue grew significantly by 33% year-over-year to ₹137.00 crores
• EBIT margin improved to 25.7% from 25.4% in the same quarter last year

Key Operational Highlights

• Order intake reached ₹688.00 crores, showing a robust growth of 28% year-over-year
• The company declared an interim dividend of ₹0.50 per equity share

Management Commentary

Prayasvin B. Patel, Chairman & Managing Director, stated, "Our current order book, along with Order-in-take outlook across both domestic and overseas markets, reinforces our confidence in meeting the full-year guidance." He added, "We are steadily advancing towards our strategic objective of generating 50% of our consolidated revenue from international markets by FY30."

Market Outlook

Elecon Engineering is witnessing steady demand from domestic power, steel, and cement industries. The company's focus on expanding its international presence and strengthening relationships with global OEMs is expected to drive future growth. The Material Handling Equipment division's strong performance and the company's pivot towards product supply and aftermarket services are anticipated to maintain momentum in the coming years.

Financial Summary

Elecon Engineering's balanced performance across its divisions and strategic focus on both domestic and international markets position it well for sustained growth in the industrial gear and material handling equipment sectors.

Elecon Engineering Company Limited has announced its financial results for the third quarter and nine months ended December 31, 2024, showcasing robust growth and improved profitability across key segments.

Financial Highlights

• Consolidated revenue reached ₹529.00 crores in Q3FY25, marking a 12% year-on-year increase
• EBITDA stood at ₹143.00 crores with a healthy margin of 27%
• Profit After Tax (PAT) climbed to ₹108.00 crores, resulting in a strong PAT margin of 20%

Segment Performance

Material Handling Equipment (MHE) Division

The MHE division emerged as the star performer for Elecon Engineering this quarter:

• Revenue growth: An impressive 72% year-on-year increase
• EBIT margins: Substantial improvement of 1,300 basis points, reaching 31.6%

Gear Division

The Gear division showed mixed results:

• Q3FY25: Marginal revenue growth of 2.1%
• 9MFY25: 3.6% decline in revenue, attributed to delayed order inflows and sluggishness in domestic steel and sugar industries

International Business

Elecon Engineering's global operations continued to contribute significantly to the company's overall performance:

• International business accounted for approximately 27% of total consolidated revenue in 9MFY25

Corporate Actions

The company has taken several important corporate actions:

1. Interim Dividend: Declared at ₹0.50 per equity share
2. Insider Trading Policy: Board approval for amendments to align with recent SEBI regulations

Financial Performance Table

Elecon Engineering's Q3FY25 results demonstrate the company's ability to navigate challenges in certain sectors while capitalizing on growth opportunities, particularly in the Material Handling Equipment division. The robust performance in international markets and proactive corporate governance measures further underscore the company's commitment to sustainable growth and shareholder value.