Elecon Engineering Co.Ltd. — Interim / Quarterly Report 2024

Jul 17, 2024

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17[th] July, 2024

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 Wednesday, 17[th] July, 2024 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 ended 30[th] June, 2024.

You are requested to take the same on your records.

Thanking you.

Yours faithfully,

For Elecon Engineering Company Limited,

Digitally signed by Isarani Bhartiben Lalitkumar Isarani DN: c=IN, o=Personal, title=0260, pseudonym=13344004923474687732l9466G9 9GIEd, 2.5.4.20=c52a2198888be34c1add3d3f703698 Bhartiben 2173c1697fa1745ed6de6567e0103054b2, postalCode=388001, st=Gujarat, serialNumber=f4c51b6318e6acab9d278ccf2d Lalitkumar 6ca7b880331cffa3da32bef38e61c2c76bc835, cn=Isarani Bhartiben Lalitkumar Date: 2024.07.17 12:25:53 +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

Q1FY25 Financial & Operational Performance Highlights

Vallabh Vidyanagar, Gujarat, 17[th ] July 2024 – Elecon Engineering Company Limited, one of the largest Industrial Gear solution providers in Asia along with Material Handling Equipment, announced its Unaudited Financial Results for the quarter ended 30[th] June 2024

Q1 FY25 CONSOLIDATED FINANCIAL HIGHLIGHTS

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Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs)
0.5%
-5.3% -7.6%
414 100 73 73
392 92
Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25
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EBITDA Margin (%)

PAT Margin (%)

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-60 bps +110 bps
24.1% 23.5% 17.6% 18.7%
Q1FY24 Q1FY25 Q1FY24 Q1FY25
Segment Wise (Rs Crs, %)
Q1FY25 Q1FY24 Q1FY25
54 58
133 (13%) (15%)
(34%)
259
(66%) 361 334
(87%) (85%)
Domestic Overseas Gear MHE
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Geography Wise (Rs Crs, %)

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Q1FY24 Q1FY25
113
133
(27%)
(34%)
259
302
(66%)
(73%)
Domestic Overseas
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Growth Momentum Continues

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Investor Release

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Key Consolidated Financial & Operational Highlights - Gear Division

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Revenue (Rs. Crs) EBIT (Rs. Crs)
Margins (%) 24.6 23.5
-7.4% -11.3%
361 89
334 79
Q1FY24 Q1FY25 Q1FY24 Q1FY25
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Industrial Gear Division:

• Revenue for Q1FY25 stood at Rs. 334 Crs as compared to Rs. 361 Crs in Q1FY24 . Revenue from Gear division were impacted on account of weakness in order inflow due to general elections in Q1FY25

• We anticipate demand uptick in balance 9M of FY25 to recoup the revenue loss in Q1FY25

Key Consolidated Financial & Operational Highlights - MHE Division

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Revenue (Rs. Crs) EBIT (Rs. Crs)
Margins (%) 22.8 26.0
8.7% 23.9%
58 15
54
12
Q1FY24 Q1FY25 Q1FY24 Q1FY25
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MHE Division

• Revenue for the quarter stood at Rs 58 Crs as compared to Rs 54 Crs in the corresponding quarter last year, growing 9% Y-o-Y

• EBIT for Q1 FY25 stood at Rs 15 Crs registering a growth of 24% YoY . The EBIT margins stood at 26.0% as against 22.8% in Q1 FY24, an improvement of ~320 bps Y-o-Y primarily on account of better product mix & higher contribution from the aftermarket segment

• The company continues to focus on the business of supplying products & aftermarket business for its MHE segment which has led to sharp turnaround in the profitability for this segment. The company is consistently securing new orders for product supply and capitalizing on growing opportunities in the aftermarket business

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Investor Release

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

For Q1FY25, Elecon reported consolidated revenues from operations of Rs 392 Crs, achieving an EBITDA margin of 23.5%. The company’s unwavering focus on profitability has been instrumental in its progress. Elecon delivered a PAT margin of 18.7% in Q1FY25, reflecting a Y-o-Y growth of ~ 110 bps and a Q-o-Q increase of around 30 bps. We continue to remain optimistic of new order wins across sectors and across both our division – Gear & MHE.

We continue to lead the domestic market in the Gear Segment, attributed to our stateof-the-art technology and our ability to provide customized solutions with the shortest lead times. This strategic advantage sets us apart from our competitors. For the quarter ending June 2024, our revenue from operations in the Gear Division was Rs 334 crores, compared to Rs 361 crores in Q1FY24. This decrease is primarily due to slower order inflows during the last quarter, influenced by the general elections, which impacted both private and public capital expenditure. However, we anticipate that post-election stability and government support for infrastructure development will have a positive impact, and we remain committed to our annual guidance.

Internationally, we are on track to achieve our goal of deriving 50% of our revenue from overseas markets by FY30. In Q1FY25, our international business contributed approximately 34% to our overall consolidated revenues. With strong endorsements from existing OEMs and our ongoing brand-building and marketing efforts, we are confident in reaching this ambitious target.

The MHE segment continues to enhance its profitability. In Q1FY25, the EBIT margin increased by approximately 320 basis points, reaching 26.0%, driven by an improved product mix and leveraging opportunities in the aftermarket service segment. We remain optimistic about the segment’s continued growth, supported by ongoing government initiatives in infrastructure and manufacturing.

With ongoing strategic alliances in the overseas market, continued investments in R&D and product development, and a strategic focus on the MHE segment, we are confident in outperforming the industry and achieving our organizational aspirations.

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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 85+ 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 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

Ms. Prachi Chhugani – prachi.c@sgapl.net / +91 89492 92029

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