Elecon Engineering Co.Ltd. — Earnings Release 2025

Apr 24, 2025

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24[th] April, 2025

To,

To,
The Manager (Listing), The BSE Ltd. Mumbai	The Manager (Listing), National Stock Exchange of India Ltd. Mumbai
Company’s Scrip Code: 505700	Company’s Scrip Code: ELECON

Sub : Press Release of Board Meeting held on Thursday, 24[th] April, 2025 Ref : Regulation 30 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

In terms of the subject referred Regulation, please find enclosed herewith Press Release giving highlights on the performance of the Company for the Quarter and Financial Year ended on 31[st] March, 2025.

You are requested to take the same on your records.

Thanking you.

Yours faithfully,

For Elecon Engineering Company Limited,

Isarani Digitally signed by Isarani Bhartiben Bhartiben Lalitkumar Date: 2025.04.24 Lalitkumar 16:45:25 +05'30' Bharti Isarani Company Secretary & Compliance Officer

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Encl.: As above

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Investor Release

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ELECON ENGINEERING COMPANY LIMITED

Q4 & FY25 Financial & Operational Performance Highlights

Vallabh Vidyanagar, Gujarat, 24[th] April 2025 – Elecon Engineering Company Limited, one of the largest Industrial Gear solution providers in Asia along with Material Handling Equipment, announced its Audited Financial Results for the quarter and year ended 31[st] March 2025.

Achieved Annual Guidance with Highest Quarterly and Annual Revenue, EBITDA and PAT

Consolidated Financial Highlights - Q4FY25

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Revenue EBITDA PAT
Rs. 798 Crs Rs. 195 Crs Rs. 146 Crs
+41% Y-o-Y +44% Y-o-Y +41% Y-o-Y
Consolidated Financial Highlights - FY25
Revenue EBITDA PAT
Rs. 2,227 Crs Rs. 543 Crs Rs. 415 Crs
+15% Y-o-Y +14% Y-o-Y +17% Y-o-Y
Consolidated Operational Highlights – Q4 & FY25
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Geography Wise (Rs Crs., %) Segment Wise (Rs Crs., %)
Domestic Overseas +14.9% Gear MHE +14.9%
2,227 2,227
15.6% 5.6%
1,937 1,937
+41.3% 1,710 +41.3% 1,763
1,479
1,669
798 798
48.8% 28.9%
565 12.8% 565
662 597 72.8%
445 13.4% 458 517 464 98.2% 464
120 136 101 200 269
Q4FY24 Q4FY25 FY24 FY25 Q4FY24 Q4FY25 FY24 FY25
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Investor Release

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Gear Division

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Revenue (Rs. Crs) EBIT (Rs. Crs)
Margins (%) 27.2 24.5 26.3 24.7
+5.6% -0.9%
1669 1763 439 435
+28.9% +16.2%
464 597 126 146
Q4FY24 Q4FY25 FY24 FY25 Q4FY24 Q4FY25 FY24 FY25
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• Revenue for Q4FY25 stood at Rs. 597 Crs. as compared to Rs. 464 Crs in Q4FY24, growth of 28.9% Y-o-Y. Revenue from Gear division witnessed a considerable rebound on account of increased demand from domestic Steel, Cement & Power industry. Enquiry levels remain robust across both domestic & international markets.

• EBIT for Q4FY25 stood at Rs 146 Crs. as compared to Rs 126 Crs. in Q4FY24 . EBIT Margin for the quarter ended March 2025 stood at 24.5%. Margin in Gear division in Q4 was impacted on account of change in product mix.

• Margin for FY25 was impacted by higher freight costs and one time repair and maintenance expenses incurred in Q2FY25.

MHE Division

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Revenue (Rs. Crs) EBIT (Rs. Crs)
Margins (%) 21.4 29.6 21.7 28.4
+72.8% +125.5%
464 132
+98.2% +174.2%
269
200 59 58
101 22
Q4FY24 Q4FY25 FY24 FY25 Q4FY24 Q4FY25 FY24 FY25
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• Revenue for the quarter stood at Rs 200 Crs. as compared to Rs 101 Crs. in the corresponding quarter last year, a growth of 98.2% Y-o-Y .

• EBIT for Q4FY25 stood at Rs 59 Crs. registering a growth of 174.2% YoY . The EBIT margin stood at 29.6% as against 21.4% in Q4FY24, an improvement of ~820 bps Y-o-Y primarily on account of better product mix & higher contribution from the aftermarket segment.

• The Company is consistently securing new orders in the domestic and international markets. We are also capitalizing on growing opportunities in the after-market business.

• Our continued focus on MHE segment will support overall growth in coming years.

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Investor Release

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FY25 Highlights

• Achieved our annual guidance and registered highest ever Revenue, EBITDA and PAT.

• Improvement in Credit Ratings: LT -[ICRA] AA (Stable); ST: [ICRA] A1+ in July-24 improved from LT -[ICRA] AA-(Stable); ST: [ICRA] A1+ in June-23.

• Dividend: Proposed final dividend of Rs 1.50/- (i.e., 150%) per equity share (subject to shareholders approval).

Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Company Ltd. Said,

“For Q4FY25, Elecon reported consolidated revenue of ₹ 798 crores , reflecting a robust growth of 41.3% on a Y-o-Y basis . The quarterly EBITDA stood at ₹ 195 crores , with EBITDA margin at 24.5% . Profit after Tax (PAT) for Q4FY25 was ₹ 146 crores , with PAT margin at 18.4%.

For FY25, the consolidated revenue stood at ₹ 2,227 crores , clocking 14.9% Y-o-Y growth, in line with our annual guidance of Rs. 2,225 crs . The annual EBITDA stood at ₹ 543 crores , with EBITDA margin at 24.4% . PAT for FY25 was ₹ 415 crores , with PAT margin at 18.6%.

Elecon continues to maintain its leadership position in the Indian market for both Industrial Gear Solutions and Material Handling Equipment. Our competitive edge is driven by advanced manufacturing capabilities, a comprehensive portfolio of high-quality products, and the ability to deliver custom-engineered solutions with optimized lead times, ensuring consistent and quality products for our diversified customers.

In Q4FY25, the Material Handling Equipment (MHE) division saw a remarkable 98.2% year-on-year revenue growth . EBIT margin stood at 29.6% with an improvement of ~820 bps Y-o-Y. We expect good momentum in this segment in coming years. Our Gear division, in Q4FY25, also experienced a considerable rebound with growth of 28.9% in revenue and EBIT margin at 24.5%.

This resurgence has been driven by strong demand in both domestic and international markets. Domestically, demand has picked up meaningfully, particularly from the steel, power, and cement sectors. Overseas business remains healthy, with solid traction seen across international markets. The enquiry levels remain robust, and we are seeing healthy demand internationally.

We are steadily advancing towards our strategic objective of generating 50% of our consolidated revenue from international markets by FY30. Strengthening relationships with global OEMs and sustained brand-building initiatives continue to reinforce our confidence in achieving this milestone. In FY25, our international business revenue stood at Rs. 517 crores, contributing approximately 23% of the consolidated revenue and reflected consistent progress in this direction.

Our growth strategy is supported by strategic alliances with international partners, ongoing investments in R&D and product innovation, and a focused push within the high-growth MHE division. These efforts collectively position us to outperform broader industry trends and accelerate our domestic & global footprint.

Our priority is to attain sustainable profitable growth, creating long-term value for all our stakeholders.”

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Investor Release

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About Elecon Engineering Company Limited:

Elecon Engineering Company Limited (ELECON) was established in 1951 and is one of the largest manufacturers of Industrial Gears and Material Handling Equipment with seven decades of experience and expertise in Asia. The company has been able to establish its position as one of Asia’s largest and India’s largest Industrial Gear Manufacturing Company, having manufacturing facility spread over 3,35,000 Square Meter. The company has a strong global presence serving 95+ countries through a network of distributors, dealers and customer representatives. The product solutions include designing, manufacturing, supply, erection and commissioning of the products and are majorly used in Cement, Sugar, Defense, Steel, Mining and Power sector along with other sectors

Safe Harbor

This document may contain forward-looking statements about Elecon Engineering Company Limited and its Subsidiaries, which are based on the beliefs, opinions, and expectations of the company’s management as on the date of this Investor release and the companies do not assume any obligation to update their forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Consequently, readers should not place any undue reliance on such forward-looking statements.

For more information, please contact

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Company : ELECON ENGINEERING COMPANY LIMITED

CIN: L29100GJ1960PLC001082

Mr. Narasimhan Raghunathan – CFO – narasimhanr@elecon .com

Mr. Ashish Jain – Manager, Finance & Investor Relations – arjain@elecon.com

For updates and specific queries, please visit www.elecon.com

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Investor Relations : Strategic Growth Advisors

CIN: U74140MH2010PTC204285

www.sgapl.net

Mr. Sagar Shroff – sagar.shroff@sgapl.net / +91 98205 19303

Mr. Tanay Shah – tanay.shah@sgapl.net / +91 98333 91899

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