Elecon Engineering Co.Ltd. — Interim / Quarterly Report 2025

Jan 22, 2025

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22[nd] January, 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 Wednesday, 22[nd] January, 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 nine months ended on 31[st] December, 2024.

You are requested to take the same on your records.

Thanking you.

For Elecon Engineering Company Limited,

Isarani Digitally signed by Isarani Bhartiben Bhartiben Lalitkumar Date: 2025.01.22 Lalitkumar 12:25:24 +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

Q3 & 9MFY25 Financial & Operational Performance Highlights

Vallabh Vidyanagar, Gujarat, 22[nd] January 2025 – 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 and nine months ended 31[st] December 2024.

Q3 & 9MFY25 CONSOLIDATED FINANCIAL HIGHLIGHTS

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Revenue (Rs. Crs) EBITDA (Rs. Crs)
+4.1% +2.4%
+11.7% 1,373 1,429 +18.4% 339 347
474 529 120 143
Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25
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EBITDA Margin (%)
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150 bps
-40 bps
25.4% 27.0% 24.7% 24.3%
Q3FY24 Q3FY25 9MFY24 9MFY25
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PAT (Rs. Crs)
+6.6%
269
+19.0% 252
108
90
Q3FY24 Q3FY25 9MFY24 9MFY25
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PAT Margin (%)
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120 bps
40 bps
19.1% 20.3% 18.4% 18.8%
Q3FY24 Q3FY25 9MFY24 9MFY25
Segment Wise (Rs Crs., %)
Gear MHE +4.1%
1,429
1,373
-3.6%
1,149
+11.7% 1,192 (80%)
(87%)
2.1% 529
474
417
409
(79%)
(86%) 280
65 71.9% 112 181 55.2% (20%)
(14%) (21%) (13%)
Q3FY24 Q3FY25 9MFY24 9MFY25
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Geography Wise (Rs Crs., %)
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Domestic Overseas +4.1%
1,429
1,373
1.4%
1,048
1,034
+11.7% (73%)
(75%)
474 16.4% 529
346 403
(73%) (76%) 338 381
128 -1.2% 126 (25%) 12.6% (27%)
(27%) (24%)
Q3FY24 Q3FY25 9MFY24 9MFY25
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*Note: Domestic revenue includes sale of Rs 8.5 Crs. in Q3FY25 and Rs 19.8 Crs. in 9MFY25 to an overseas customer in India due to change in its sourcing strategy.

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Investor Release

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Gear Division

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Revenue (Rs. Crs) EBIT (Rs. Crs)
Margins (%) 27.4 27.9 26.2 24.6
-3.6%
-9.7%
1,192 1,149 313 282
+2.1% +3.7%
409 417 112 116
Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25
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• Revenue for Q3FY25 stood at Rs. 417 Crs. as compared to Rs. 409 Crs in Q3FY24 . Revenue from Gear division remained flat on account of slowdown in domestic steel and sugar industry. We remain committed towards new product development to increase our wallet share.

• EBIT for Q3FY25 stood at Rs 116 Crs. as compared to Rs 112 Crs. in the corresponding quarter last year . The EBIT Margin for the quarter ended December 2024 stood at 27.9% as compared to 27.4% in the corresponding quarter last year.

• Margins in Gear division in Q3 improved due to change in product mix. Margins for 9MFY25 were impacted on account of 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 (%) 18.6 31.6 20.7 28.1
+55.2% +110.9%
280 79
+71.9% +192.6%
181
112 35 37
65
12
Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25
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• Revenue for the quarter stood at Rs 112 Crs. as compared to Rs 65 Crs. in the corresponding quarter last year, growing 71.9% Y-o-Y.

• EBIT for Q3FY25 stood at Rs 35 Crs. registering a growth of 192.6% YoY . The EBIT margins stood at 31.6% as against 18.6% in Q3FY24, an improvement of ~1,300 bps Y-o-Y primarily on account of better product mix & higher contribution from the aftermarket segment.

• The company is consistently securing new orders for product supply and capitalizing on growing opportunities in the aftermarket business.

• Our continued focus in MHE segment has led to sharp turnaround and we are optimistic of growth in coming quarters in the MHE segment.

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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 Q3FY25, Elecon reported consolidated revenues of ₹529 crores , reflecting a 12% year-on-year growth . The quarter's EBITDA stood at ₹143 crores , with EBITDA margins at 27% . Profit after Tax (PAT) for Q3FY25 was ₹108 crores , with PAT margins at 20% . Elecon remains market leader in domestic market for Industrial Gear solutions and Material Handling Equipment, offering cutting-edge manufacturing, top-tier products, and the capability to deliver customized solutions with minimal lead times.

In Q3FY25, our Material Handling Equipment (MHE) division saw a remarkable 72% year-on-year revenue growth , with EBIT margins improving by ~1,300 basis points to 31.6% . We expect a good momentum in this segment in coming quarters.

Our Gear division, in Q3FY25, experienced a marginal growth 2.1% in revenues but saw an overall decline of 3.6% over 9MFY25 period due to delay in order inflows. We see this primarily due to sluggishness in domestic market which has resulted in delay of capex investments. We are working diligently to expand our wallet share in-spite of sluggishness in domestic steel and sugar industry.

Internationally, we are progressing toward our target of generating 50% of our revenue from overseas markets by FY30. In 9MFY25, international business contributed approximately 27% of our total consolidated revenue. Our evolving relationships with OEMs and ongoing brand-building efforts are giving us confidence to achieve this goal.

Our strategic alliances with global players, continued investment in R&D and product development, along with a focus on the MHE division, will help us outperform industry trends and achieve our long-term goals. Our priority remains towards profitable growth and creating long-term value for our shareholders.”

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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

Mr. Nishant Dudhoria – nishant.dudhoria@sgapl.net / +91 98740 40606

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