Elecon Engineering Co.Ltd. — Investor Presentation 2023

Oct 20, 2023

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Digitally signed by BHARTIBEN LALITKUMAR ISARANI
BHARTIBEN DN: c=IN, o=Personal, postalCode=388001, st=Gujarat, serialNumber=F4C51B6318E6ACAB9D278CCF2D6CA7B88
0331CFFA3DA32BEF38E61C2C76BC835, cn=BHARTIBEN
LALITKUMAR ISARANI LALITKUMAR ISARANI Date: 2023.10.20 18:18:17 +05'30'
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ONE OF ASIA’S LARGEST INDUSTRIAL GEAR SOLUTION COMPANY

ELECON ENGINEERING COMPANY LIMITED Investor Presentation – Q2 & H1FY24

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Safe Harbor

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This presentation and the accompanying slides (the “Presentation”), which have been prepared by Elecon Engineering Company Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.

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2

Safety and Wellness

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Period	Minor	Major	Fatal
Q2 FY24	0	0	0
Q1 FY24	1	0	0
Last 3 Financial Years
2022-23	0	0	0
2021-22	1	0	0
2020-21	0	0	0

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At Elecon, safety and well-being take precedence as our utmost concern. Over the last three years, we have not experienced any Major and Fatal incidents. Our commitment involves continuous efforts to eliminate even minor accidents through frequent safety training , striving for a zero-accident environment.

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3

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COMPANY OVERVIEW

Engineering Co providing Innovation led Technology Solutions

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Company compliant with an Integrated Management System based on ISO 9001:2015, ISO 14001:2015, and OHSAS 18001:2007 standards

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First in India to manufacture sophisticated equipment for bulk Material Handling with product range that caters multiple industrial sectors in India

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One of Asia’s largest Industrial Gear Manufacturing Company, having facility spread over 335,000 square meter

State of art manufacturing facilities with DSIR approved In-House R&D facility for new product development and separate Engineering facility to upgrade existing product

Elecon India

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Only Company in India having capability to manufacture Complex Gear box for Defence: Indian Navy

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One of the largest manufacturer of Gear Solution providers in Asia & Material Handling Equipments with seven decades of experience and expertise

Benzlers Netherlands

Widest range of gear applications across Industrial Sectors. Providing industry agnostic gear solutions

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Robust market share in a highly fragmented and unorganized market

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Radicon UK

Manufacturing & Assembly plants at UK, Sweden, USA & Netherland other than India

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In-House Foundry & Fabrication Facility to support end to end solutions for customers

Radicon USA

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Net Cash Positive Company

The company actively embraces environmentally friendly practices and creating long term value for stakeholders

Benzlers Sweden

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5

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Started in 1951 and evolved as Asia’s Largest Gear Solutions Co.

Established in Mumbai

by Late Shri Ishwarbhai

Patel

Acquisition debt repaid

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Forayed into
manufacturing Listed on Bombay
Established Gear division
conveying equipment Stock Exchange
1951 1960 1962 1963 1976 2010
Elecon Engineering Company Forayed in bulk material Acquired Benzlers and
was incorporated as Private handling business Radicon in Europe -
Limited Company manufacturers of screw jacks,
shaft mounted gearboxes and
Shifted to Vallabh Vidyanagar,
industrial reducers
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Successful execution of defence

(Indian Navy) project

~~2022 2023~~ Achieved highest Revenue & Profits since a decade

Cemented position as one of the largest gear solution company in Asia and a prominent MHE player

Shifted to Vallabh Vidyanagar, Gujarat in May 1960

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6

Values & Culture at Elecon

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Our Values are our Bedrock!

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Delightful Customer Resolute Trust Ingenious Value Creation Ethics at Experience Entrepreneurship the Core Ensure unparalleled positive Foster unwavering trust through Demonstrate accountability for Create value and enable growth Uphold the highest standards of customer experiences all the time camaraderie and credible the purpose, empowerment, and for every stakeholder ethical conduct and individual conduct business acumen integrity ❖ Proactiveness ❖ Intent ❖ Innovation ❖ Wealth ❖ Honesty ❖ Adaptability ❖ Trustworthiness ❖ Risk-Taking ❖ Learning ❖ Fairness ❖ Relationship ❖ Competence ❖ Agility ❖ Research ❖ Transparency ❖ Service Orientation ❖ Commitment Orientation ❖ Solution Orientation ❖ Partnership Orientation ❖ ESG Orientation

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Global MNC with Strong Distribution Network

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Overseas Market Domestic Market
100+ 65+
Distributors & Dealers Distributors & Dealers
35+ 55+
Customer Customer
representatives representatives
4 Manufacturing &
Pan India
Assembly Centers
Presence
10 Sales Offices
MANUFACTURING FACILITIES ASSEMBLY & SERVICE CENTRE
Serving to 75+ Countries
SALES OFFICE SALES REPRESENTATIVE
Contribution from 28% 35% 34% 29% 23%
Overseas Market FY20 FY21 FY22 FY23 H1FY24
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All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

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8

R&D strengthens our leadership position

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DSIR approved In-House R&D facility R&D Team
63
20+ Software for designing, analysis and parameter validation
11
85 Engineers team dedicated for R&D
1
10
2 Patents granted and 3 Patents applied PhD ME BE DME
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Design & Development Process
Design Analysis & Value
Pre-Design Stage Engineering Stage 3-D Model & Drawings
Engineering
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Elecon's R&D initiatives aim to foster innovation, improve existing product offerings, and develop novel technologies in the field of material handling and industrial gear. These efforts provide a competitive edge and address the dynamic needs of the evolving market.

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9

State of the Art Manufacturing Facility

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State of the art facility located at Vallabh Vidyanagar, Gujarat The facility is spread over 335,000 Square Meter Capacity utilization for H1FY24 is ~ 76%

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~~Bird’s eye view of the Facility~~

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10

Gear Division – Providing a wide variety of solutions

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Diversified across
Best in class Gear
39% Market Share
World Class industries such as
Widest range of in the Domestic Solutions
Industrial Gears operations with low Power, Cement,
lead time Sugar, Steel etc. Organized Market
In-house
Strong Brand Name
Maintaining the Manufacturing facility manufacturing
Pan-India Service
utmost safety and for both Catalogue & capabilities with
Network
quality standards Engineered Products 700+ machine tools
Our Diversified Product Portfolio
Widest Market Reach
Focus on Customer
Helical/Bevel Helical Worm Gearboxes Couplings Planetary Gearboxes Marine Gearboxes Custom Built Gearboxes
Solutions
Gearboxes
One of Asia’s Largest
Gear Solution Provider
High Speed Gearboxes Pinion Shaft Double Helical Gear Wheel Loose Gears
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*For FY23

11

Supplying to multiple industries thus diversifying risk

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Steel
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Cement
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Sugar
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Plastic
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Industry Agnostic Gear Access to new market Sustainable Performance Solutions opportunities Defence Rubber

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Mining
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Resilience to Business Cycles

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Power
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12

EON[2] – Next Generation innovation in Engineering

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Highlights of EON[2]

• ❖ EON[2] Series brings transformative advantages to both valued customers and the company

• ❖ Innovative solution enhances operational efficiency, curtails cost and inventory optimization

• ❖ Offers a comprehensive range of right angle and parallel shaft combinations with ratios to suit all major 50/60 Hz motor

• ❖ Sectors Catered: Steel, Power, Chemical, Oil & Gas, Rubber and Plastics, Material and Mining, Paper & Pulp, Industrial Cranes, Water Treatment etc.

• ❖ Granted 2 Patents for Design of EON[2] Universal Mounting Helical & Bevel Helical Gear Box

EON Series 1 The Second Generation of EON 2 Design Highlights ❖ High Torque to Weight ❖ Universal Mounting Innovation & 3 ❖ Prompt Delivery Technology ❖ Boost Efficiency ❖ Effective Micro Gear Geometry ❖ Kit Concept ❖ Optimize Bearings Gear units with Add ❖ Robust Optimize 4 on parts Housing ❖ Cooling Coil ❖ Fan ❖ Heater Operations 5 ❖ Force Lubrication Condition Monitoring ❖ Torque Arm System to Keep Plant ❖ Motor Adaptor Running & Stepping Up The Production

EON[2] Helical and Bevel Helical Gearbox ❖ Usage: Steel, Power, Chemical, Oil & Gas, Rubber and Plastics, Material and Mining, Paper & Pulp, Industrial Cranes, Water Treatment

• ❖ Torque range: 0.8 TO 115 kNm

• ❖ Input Speed: 1800 RPM TO 750 RPM ❖ Ratio range: 1.25 to 450

❖ RPM : 750 to 1800

• ❖ Features: High Efficiency, durability, reliability, robust design, Improved thermal rating, high torque to weight capacity

• ❖ Advantages: Suitable for Kit concept to standardize and optimize inventory

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13

Product Enrichment through Addition & Upgradation

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RTC Gearbox	Screw Jack Gear Box	Crane Gearbox
❖Features:Single Stage, Worm Gear, Speed Reducer ❖Usage:Used in tire curing application in rubber industry ❖Ratio Range :65,79,80,93,104 ❖Power :Up to 25 kW ❖Input Speed:600 RPM	❖Features :Single Stage, Worm Gear, Speed Reducer ❖Usage: Used in hot rolling press application in steel industry ❖Power :Up to 10 kW ❖Ratio Range :10 ❖Capacity :250 Ton Lifting Capacity	❖Usage :For drives of transporting equipment, lifting gears, crane & elevators ❖Ratio Range :14 to 280 ❖Power :3 to 1811 Kw ❖Output rated torque :4.1 to 172 KNm
❖Heavy Duty ❖Robust Design ❖High torque application	❖Heavy Duty ❖Robust Design ❖High Axial Thrust Capacity up to 250 Ton	❖Higher torque ratings ❖Different mounting position ❖Optimized gear housing design

New Products Added

Product Upgraded

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14

MHE Division: A proxy to Capex Creation

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Largest supplier of
Enhanced
Pioneers in Stockyard Machines
diversification Widest range of
manufacturing Bulk & Wagon tipplers in End User Industry
MHE India across industries products
Consistent delivery Robust In-House Discontinued EPC
Maintaining of high-quality design and Projects and Focus Steel Cement
highest standards products instills manufacturing only on Profitable
of safety customer reliance capabilities Product Business
Our Diversified Product Portfolio
Mining Fertilizer
Ports Power
Feeders Automatic Weighing Stackers / Reclaimers Raw Material Handling Wagen Tippler Specialized Conveyors
System
Oil & Gas
Pulleys Mobile Stacker Port Equipment Truck Loader
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15

Re-oriented the Business since 2019

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MHE Division witnessed
remarkable turnaround
becoming
profitable with focus
Pioneers with market leadership on Products &
aftermarket business
Currently
Discontinued the EPC
Projects and focus on achieving 20%+
ROCE
products, spares &
service business
Strategic initiatives
were undertaken to
Pioneers turnaround the
in manufacturing Bulk MHE Division
MHE with focus on closure
of legacy projects
Forayed into
Bulk Material
Initiation of Power
Handling Business
Catering to EPC Sector crisis
projects in diverse Strategic Turnaround with improving
sectors such as Steel,
Acquisition of Profitability
Power, Fertilizer, Port, Benzlers & Radicon
and Mining with Debt of Rs. 132
crs.
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16

Board of Directors

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Shri Prayasvin B. Patel Chairman & Managing Director

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Shri Pradip M. Patel

Non-Independent & Non-Executive Director

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Shri Prashant C. Amin

Non-Independent & Non-Executive Director

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Shri Jai S. Diwanji

Independent & Non-Executive Director

Experience of 48 years in engineering industry. He holds a Bachelors in Engineering (Mech.) and an MBA (USA). He is actively involved in the decision making for various technical and commercial matters including the marketing for both Gear and MHE divisions.

Experience of more than 30 years in Bearing industry. He holds an MBA (USA). His core area of strength relating to the business is strong leadership, strategy building and operational direction.

Experience of 41 years in operating enterprises with strong leadership, successfully acquiring, integrating & managing foreign companies. He holds MBA (USA) Masters in Engineering & Management.

Experience of 20 years in the field of domestic and international law. He holds a degree of Law(UK). Presently, he is a partner with the national law firm, Desai & Diwanji.

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Dr. Sonal V. Ambani Independent & Non-Executive Director

She holds a PhD in Business Management and is the founder Chairperson of FICCI Ladies Organization (FLO) Ahmedabad. She holds two patents granted in the US and is also a member of the United Nations Development Fund for Women (UNIFEM).

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Shri Pranav C. Amin

Independent & Non-Executive Director

He is a graduate in Economics/Industrial Management and MBA in International Management. His core areas of expertise are management and leadership.

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Shri Ashutosh A. Pednekar

Independent & Non-Executive Director

He is a practicing Chartered Accountant and is a Partner of M. P. Chitale & Co., chartered Accountants since 1992. He is well versed in the fields of accountancy, finance, risk management, insurance contracts.

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Shri Aayush A. Shah

Non-Independent & Non-Executive Director

Chief Executive Officer and Executive Director of Power Build Private Limited. Carries more than 2 years of experience in the domain of Managing Business Unit, Strategic Planning & Budgeting, Process Improvement, Project Management and Business Turnaround.

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17

Strong Management Team

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Shri Kamlesh Shah

Group Chief Financial Officer

With over 25 years of extensive expertise, he possesses a diverse background in Business Strategy Planning & Budgeting, Process Improvement, Project Management, Business Turnaround, Corporate Banking, and Investor Relations across various industries.

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Shri Narasimhan Raghunathan

Chief Financial Officer

Having amassed over two decades of experience, he has proven his proficiency in Accounts, Finance, Taxation, Legal & Compliance, and related functions in diverse industries and companies, encompassing both Indian and multinational corporations such as Ashok Leyland, Ernst & Young, Hansen Transmissions of Belgium, ZF of Germany, and KSB Pumps of Germany.

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Shri M.M Nanda

Head of Gear Division

Joined Elecon in 1973 as a Liaison Officer and advanced to become the Marketing Head and subsequently the Vice President Marketing. Since 2016, he has been leading the company as its CEO, showcasing expertise in Marketing, Business Strategy, Market Research, Resource Management, Project Management, and Business Turnaround.

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Shri P. K. Bhasin

Head of MHE Division

Effective leader with over 40 years of experience and his core expertise lies in Marketing, Human Resources, Business Operations & Strategy, and identifying new opportunities to sustain extraordinary business growth. He brings a wealth of experience from MNC organizations such as ABB, ALSTOM, and L&T.

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18

Strong Relationship with Marquee Clients

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Gear
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MHE

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…and many more

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The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only

19

Awards and Recognition

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2nd Consecutive Year in a row
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20

Way Ahead…

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New Product Development Market Expansion Continue to focus on R&D and Expansion into new territories and Product Development as we strive increasing market share in existing to deliver high-quality, industrygeographies . The Company has agnostic, and customizable forged strategic partnerships with products that ensure customer leading companies, enabling access satisfaction. to new customers and markets.

Supply to OEM in the European Market Successfully signed off Six OEM business in the European market . Committed to becoming the preferred supplier in these markets.

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Growing the MHE Business sustainably and profitably

The strategic turnaround with focus on the Supply of Products & After Market business while discontinuing involvement in the EPC projects business.

Paving way to unlock next level of growth…

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21

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Industrial Overview

Economic & Industrial Outlook

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Indian GDP Growth Outlook
2023 2024
US Euro Area United Kingdom Germany China India
Sources: IMF
6.3%
6.1%
5.2%
4.5%
1.8%
1.5% 1.3%
1.0% 0.9% 1.0%
0.4%
-0.3%
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Key Drivers

• ❖ Rising Per Capita Income supported by huge middle-class consumption and economic opportunities

• ❖ Digital Competitiveness leading to deeper inclusion deeper inclusion and new demand across sectors

• ❖ Public Infrastructure Investment in the public infrastructure, integrating ecosystem for manufacturing, logistics and exports

• ❖ Easing Supply Chain Constraints with betterment of geo- political tension leading to stabilization of commodity prices

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Strong Demand

Growth outlook for gears and MHE segments remain positive on the back of strong demand.

Infrastructure Boost

The government’s growing attention towards infrastructure is expected to stimulate the capex cycle in cement and steel sectors.

Capacity Creation

The capacity creation in sectors like power, steel, mining, infrastructure, oil & gas, etc., is likely to drive growth.

Shift In Supply Chain

Supply chain shifting to India amid China +1 strategy adopted by global manufacturing players will likely benefit domestic demand.

Government Initiatives

Focus on industrialisation and localisation via Make in India, PLI schemes likely to accelerate growth.

Technological Advancement

Technological improvement in manufacturing processes and cost advantage will benefit the industry.

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23

Industrial Gearbox Market Size

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Global Market (USD Mn)

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Asia Pacific (USD Mn)

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India (USD Mn)

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Asia Pacific – CAGR (2022 to 2030)

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4.1%
4.9%
4.5% 12,800 5.2% 5,436 4.9% 396
2030
8,988 270
3,633
5.6%
4.4%
India Japan China Others
2022 2030
2022 2030 2022 2030
Key Growth Drivers
`
Growing
Government Technological Demand for Growing Growth of Power
Applications in
Investments Advancements Automation Industrialization Generation Sector
Agriculture
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Source : Fortune Business Insights Report 2023

24

Key Sector Outlook

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• ❖ Steel & Mineral Industry has been consistently doing well for the past 3 years

• ❖ Elecon is the leading and the sole Indian manufacturer of 900 TPD sponge iron plant in the country

• ❖ Both Iron-ore and finished steel segment are growing at a faster pace and is expected to grow ~9% in the coming year and Government also focusing on infra development and as a result expansion of production capacity

• ❖ In Overseas market there are also some opportunities in Steel Industry

• ❖Cement consumption in India is expected to grow by ~6 to 7% in the current year

• ❖Elecon has increased its market share with some of the major OEM’s in this segment

• ❖The trend in the Cement Industry is shift towards Roller Press Gearboxes for Raw mill & Cement mill application and Elecon is the only Indian

• manufacturers for Roller press gearboxes

  • ❖Elecon expects around 3 more thermal power plants to come up in this financial year

• ❖Elecon expect orders from major OEM’s in this segment in this financial year ❖Elecon is the leading supplier in India for Coal Pulverizer VRM gearboxes and also has major share in the FGD business in Power sector

  • ❖Elecon is the leading supplier in India for Coal Pulverizer VRM gearboxes and also has major share in the FGD business in Power sector

• ❖The government's support for ethanol production revived the sugar industry, leading to two years of success. Although this year's growth is slightly

lower than the previous year, there are promising inquiries that are expected to translate into orders within the next 2-3 months

• ❖Elecon is the leading Planetary Sugar mill gearboxes manufacturer with a market share of ~60% and also trying to capture overseas market like in South East Asia

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25

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ESG Vision

Sustainable towards Environment

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70% Energy from Renewal ~85% Lighting converted into
Sources LED
• Wind Power – 14MW
• Solar Power – 5 MW
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60% Green Campus
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~4000 Sq Mtrs unused land 40% reduction in using wood Electric powered
developed into Green Belt Area by replacing to Nail-less equipment enhanced to
Packaging reduce Natural resources
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Rainwater Harvesting to
conserve rainwater
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Retrofitting of emission STP to reuse sewage water
control devices to reduce
environmental impact
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27

Elecon Engineering – A responsible Corporate

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Health and Medical Promoting Sports Caring for Society
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• ❖ Blood Donation Camp

• ❖ Elecon Cricket Academy ❖ Food Distribution for needy ❖ Support to Weaker Section of

• ❖ Elecon Tennis Academy Society

• ❖ Sponsored State Level Badminton ❖ Support to Students through Scholarship

• ❖ Supporting charitable hospitals with latest medical equipment

• ❖ Health activities for community

• ❖ Sponsored State Level Badminton Tournament

• ❖ Healthy Heart Walkathon

• ❖ Health & Safety awareness programs in nearby villages

  • ❖ Initiative for Education Program ❖ Career Counselling Session for children of employees

• ❖ Provide training to Players

• ❖ Yoga Session on International Yoga Day

• ❖ Initiative for Special Person ❖ Maintaining gardens in the town

• ❖ Under banner “Aarogyam”, Awareness Session on “Woman’s Health & Wellbeing”

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Elecon's mission is to engage in environmentally responsible practices , contribute to the greater good of society, and ensure the well-being of its employees

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28

Vision for Inclusiveness

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Business Partner Meet
01
Promoting procurements from MSME
02 Business Partner Meet
Dealer and Channel Partner Meet 03
CSD Sales Conference
04 Sustainable Supply Chains
Web Supplier Portal for sustainable
05
Supply Chain
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29

Building Strong Workforce with Care

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Sustained Workforce

Leadership Development Program

Celebrations

• ❖ Celebrate employees' achievements

• ❖ 10+ Years average service period of an employee

• ❖ 680+ workforce building team Elecon

• ❖ Creating a gender-diverse workforce

Care and Safety for Employees

• ❖ Zero Fatality

• ❖ Health & Hygiene Awareness program

• ❖ 860-man hours imparted to SHE training covering 643 employees in H1 FY24

• ❖ Mediclaim and Term Insurance cover for Employees

• ❖ POSH awareness session

• ❖ Leadership Development program under “Gurukul” Project

• ❖ Initiated workshops on cultural transformation in collaboration with a global leading organization, to strengthen the company's culture, beliefs, and values during the growth phase

Culture of Continuous Learning

• ❖ 96+ Learning and Development Programs conducted

• ❖ 1822 employees attended various training for ~6,700man hours under continuous learning program

• ❖ Employees inclusiveness through “HR Aapke Nikat ” initiative

• ❖ Host an Engineering Fair as part of Engineer’s week, where employees showcase their creativity through innovative ideas, model displays and more

• ❖ Celebrate various occasions & Prize

distribution from time to time

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30

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Q2 & H1 FY24 FINANCIAL HIGHLIGHTS

H1 FY24 Key Highlights

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Development on Overseas OEM Business:

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1
2
3
4
5
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• ❖ Signed-off Six OEM Business in European market, having annual estimated business volume of ~Euro 5.5 Million

• ❖ Prototype is under development and to be supplied to the OEMs by Q3FY24, commercial production expected to start from FY25

Arbitration awards:

• ❖ As of September 2023, we have successfully realized Rs. 30.9 Crs from the arbitration award, out of the total award amount of Rs. 63.0 Crs . An additional Rs. 1.0 Cr is expected to be realized in October 2023. Negotiations for the remaining amount of Rs. 31.1 Crs are currently in progress

• ❖ Fresh arbitration proceedings initiated having the value of Rs. 31.0 Crs during Q1FY24, optimistic of favorable outcomes

Capex incurred Rs. 24.0 Crs upto H1FY24 out of the Rs. 70.0 Crs planned for FY24

Improvement in Credit Ratings: LT - [ICRA] AA- (Stable); ST: [ICRA] A1+ in June-23 (Previous Credit Ratings: LT[ICRA] A+ (Stable); ST: [ICRA] A1)

Declared an Interim Dividend of Re 1.00/- (i.e. 50%) per Equity Share of Rs. 2/ - each

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32

Strong Consolidated Quarterly & Half Yearly Performance

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Revenue (Rs Crs.) EBITDA (Rs Crs.)

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PAT (Rs Crs.)

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+25.5% +38.9%
899 219
716
+24.8% +28.2%
157
485 119
389 93
Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24
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+51.2%
162
+37.3%
107
89
65
Q2FY23 Q2FY24 H1FY23 H1FY24
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Revenue
Guidance of
Rs 2,000 crores
in FY24
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EBITDA Margin (%)

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+70 bps +230 bps
23.8 24.5 24.3
22.0
Q2FY23 Q2FY24 H1FY23 H1FY24
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PAT Margin (%)

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+170 bps +310 bps
18.3 18.0
16.6
14.9
Q2FY23 Q2FY24 H1FY23 H1FY24
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33

Consolidated Profit & Loss Statement

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Profit and Loss (Rs. Crs.)	Q2FY24	Q2FY23	Y-o-Y	Q1FY24	Q-o-Q	H1FY24	H1FY23	Y-o-Y
Revenue from Operations	485	389	24.8%	414	17.0%	899	716	25.5%
Operating Expenses	263	212		216		480	383
Gross Profit	222	177		198		420	333
Gross Profit Margin	45.7%	45.4%		47.8%		46.7%	46.6%
Employee Cost	44	37		46		90	78
Other Expenses	59	47		52		111	98
EBITDA	119	93	28.2%	100	18.8%	219	157	38.9%
EBITDA Margin	24.5%	23.8%	70 bps	24.1%	40 bps	24.3%	22.0%	230 bps
Other Income	13	4		9		21	9
Depreciation	13	12		12		26	23
EBIT	118	85	38.9%	96	22.9%	214	143	49.8%
EBIT Margin	24.3%	21.9%	250 bps	23.2%	120 bps	23.8%	20.0%	390 bps
Finance Cost	3	3		2		5	7
Share in profit of Associates	2	1		1		3	1
Profit before Tax	117	83	40.8%	94	24.0%	212	137	54.7%
PBT Margin	24.2%	21.4%	280 bps	22.8%	140 bps	23.5%	19.1%	440 bps
Tax	29	19		22		50	30
PAT	89	65	37.3%	73	21.4%	162	107	51.2%
PAT Margin %	18.3%	16.6%	170 bps	17.6%	70 bps	18.0%	14.9%	310 bps
EPS	7.89	5.75		6.50		14.40	9.52

Note: Other Income includes Profit on sale of fixed assets of INR 2.16 Crs in Q2FY24 & INR 2.31 Crs in H1FY24.

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34

Consolidated Balance Sheet

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Assets(Rs Crs.)	Sep-23	Mar-23
ASSETS
Non-current assets
Property,Plant and Equipment	530	527
Capital work-in-progress	0	0
Right to use of Assets/Investment Properties	80	82
Investmentproperty (net)	25	25
Intangible Assets	18	18
Goodwill	102	103
Investment In Subsidiaries	59	57
Financial Assets
(i)Investments	0	1
(ii)Others Financial Assets	9	9
Deferred Tax Assets(net)	2	2
Income Tax Asset	11	10
Other non-current assets	14	12
Total Non-Current Assets	851	844
Current assets
Inventories	262	279
Financial Assets
(i)Investments	48	19
(ii)Trade receivables	376	346
(iii)Cash and cash equivalents	116	82
(iv)Bank balances other than(iii)	193	128
(v)Other Financial Assets	10	9
Income Tax Asset	25	25
Total Current Assets	1,030	888
Total Assets	1,881	1,732

Equity and Liabilities (Rs Crs.)	Sep-23	Mar-23
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital	22	22
Other Equity	1,392	1,257
Shareholders Funds	1,415	1,279
Non-Current Liabilities
Financial Liabilities
(i) Lease Liability	39	40
Provisions	27	33
Deferred Tax Liabilities (Net)	25	26
Other non-current liabilities	1	1
Total Non-Current Liabilities	91	100
Current liabilities
Financial Liabilities
(i) Lease Liability	7	11
(ii) Trade Payables	229	214
(iii) Other Financial Liabilities	4	6
Other Current Liabilities	107	103
Provisions	16	13
Current tax liabilities (net)	12	5
Total Current Liabilities	375	353
Total Liabilities	1,881	1,732

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35

Consolidated Cash Flow Statement

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Particulars (Rs Crs.)	Sep-23	Sep-22
Profit before Tax	212	137
Adjustment for Non-Operating Items	19	32
Operating Profit before Working Capital Changes	230	168
Changes in Working Capital	-8	-4
Cash Generated from Operations	223	165
Less: Direct Taxes paid	43	24
Net Cash from Operating Activities	180	141
Cash Flow from Investing Activities	-109	-9
Cash Flow from Financing Activities	-37	-133
Net increase/ (decrease) in Cash & Cash equivalent	34	-1
Cash and cash equivalents at the beginning of the period	82	84
Cash and cash equivalents at the end of the period	116	83

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36

Consolidated Revenue Split

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Geography Wise Segment Wise
Q2FY23 Q2FY24 Q2FY23 Q2FY24
14% 13%
20%
30%
70%
80%
86% 87%
H1FY23 H1FY24 H1FY23 H1FY24
14% 13%
23%
30%
70%
77%
86% 87%
Domestic Overseas Gear MHE
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The company is focused on improving the revenue share from Overseas market and turning around the MHE Business. Current decline in overseas revenue is attributed to rollover of order execution to H2FY24 and the impact of export revenue recognition under IND AS.

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37

Consolidated Segment Wise Performance

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Order Intake (%)(%)%))

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Revenue (Rs Crs.) EBIT (Rs Crs.) Order Intake (%)(%)%))
Margins (%) 23.9 26.0 21.8 25.4
Steel
+26.8% +47.3% 22% Sugar
Cement
784 199
+26.9% 618 +38.2% 43% Power
135 H1FY24 7% MHE
423 110
Marine
333 80
10%
Const. & Engineering
4% 6% Others
3% 5%
Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24
Revenue Guidance of Rs 1,700 crores in FY24
Revenue (Rs Crs.) EBIT (Rs Crs.) Order Intake (%)
Margins (%) 14.0 21.0 12.6 21.8
9% Power
1%
Fertilizer
+17.9% +103.9% 1%
11% Const. & Engineering
116 25 Steel
+12.1% 98 +68.3% H1FY24 Others
55 62 13 12 16% 62% Cement
8
Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24
Revenue Guidance of Rs 300 crores in FY24
Gear
MHE
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38

Consolidated Order Book

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Order Intake (Rs Crs.)

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+8.9%
913
838
-3.7%
821
432 416 744
383 375
94 92
49 41
Q2FY23 Q2FY24 H1FY23 H1FY24
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Open Order as on 30[th] Sep’23 (Rs Crs.)

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+16.8%
738
632
615
520
112 123
H1FY23 H1FY24
Gear MHE
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Key Highlights

• ❖ Gear Division: The order intake for H1FY24 stood at Rs 821 Crs. , up by 10% on Y-o-Y basis. Order in Hand is Rs 615 Crs as on 30th September 2023

• ❖ MHE Division: The order intake for H1FY24 stood at Rs 92 Crs as compared to Rs 94 Crs in H1FY23 . Order in Hand is Rs 123 Crs as on 30th September 2023

With increasing enquiries across various product categories and industries , coupled with a robust executable order book , the company remains optimistic about sustaining its growth momentum in the future

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39

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Historical Financials

Historical Consolidated Financial Performance

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Revenue (Rs Crs.)

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EBITDA (Rs Crs.)

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PAT (Rs Crs.)

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+21.0% 1,530
1,212
1,044
899
FY21 FY22 FY23 H1FY24
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339
+35.2%
246
219
185
FY21 FY22 FY23 H1FY24
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237
+103.0%
162
140
58
FY21 FY22 FY23 H1FY24
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EBITDA Margin (%)

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PAT Margin (%)

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+440 bps
+1000 bps
24.3% 18.0%
22.2%
20.3% 15.5%
17.7%
11.6%
5.5%
FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24
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41

Consolidated Historical Segment wise Financial highlights

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Gear
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Revenue (Rs Crs.) EBIT (Rs Crs.) ROCE (%)
Margin (%) 21.6 19.6 22.0 25.4
+20.5% 1,313 +21.3% 288 27.2%
24.9% 24.2% 25.4%
1,076
211
905 196 199
784
FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24
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Revenue (Rs Crs.)

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EBIT (Rs Crs.)

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ROCE (%)

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Margin (%) -36.2 -0.6 14.9 21.8
+24.6% 216 32 42.5%
25
25.8%
139 136
116
-1
Shift to high margin -0.5%
Product Business
FY21 FY22 FY23 H1FY24 -50 -37.0%
FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24
MHE
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42

Consolidated Historical Ratios

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Return on Net worth (%)[1]

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ROCE (%)[2]

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Total Asset Turnover (x)

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Net Fixed Asset Turnover Ratio (x)

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20.9% 26.8%
18.8% 24.0%
13.6% 17.6%
11.4%
6.4%
FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24
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0.9
0.9
0.7
0.5
FY21 FY22 FY23 H1FY24
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3.2
2.9
2.3
1.8
FY21 FY22 FY23 H1FY24
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Debt to Equity (x)

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Working Capital Cycle (Days)

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Current Ratio (x)

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Quick Ratio (x)[3]

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0.3 91 2.7
2.5
78
74
65
1.6
1.4
0.1
0.0 0.0
FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24
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2.0
1.7
1.1
1.0
FY21 FY22 FY23 H1FY24
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1. Net worth is calculated as Shareholder’s Equity – Intangible Assets

2. Earning Before Interest and Tax (EBIT) is calculated as Profit Before Tax+ Finance Cost and Capital Employed is calculated as Shareholder’s Equity + Long Term Borrowing + Short Term Borrowings + Deferred Tax Liabilities 3. Quick Assets is calculated as Total Current Assets – Inventories – Prepaid Expenses

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43

Historical Consolidated Profit & Loss Statement

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Profit and Loss (Rs. Crs.)	FY23	FY22	FY21
Revenue from Operations	1,530	1,212	1,044
Operating Expenses	836	661	562
Gross Profit	694	551	482
Gross Profit Margin	45.4%	45.4%	46.2%
Employee Cost	150	128	118
Other Expenses	205	176	179
EBITDA	339	246	185
EBITDA Margin	22.2%	20.3%	17.7%
Other Income	20	9	6
Depreciation	49	49	52
EBIT	310	206	139
EBIT Margin	20.3%	17.0%	13.3%
Finance Cost	13	37	60
Share in profit of Associates	3	1	2
Profit before Tax	300	171	81
PBT Margin	19.6%	14.1%	7.8%
Tax	62	30	24
PAT	237	140	58
PAT Margin %	15.5%	11.6%	5.5%
EPS	21.17	12.52	5.14

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44

Historical Consolidated Balance Sheet

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Assets(Rs Crs.)	Mar-23	Mar-22	Mar-21
ASSETS
Non-current assets
Property,Plant and Equipment	527	523	548
Capital work-in-progress	0	1	0
Right to use of Assets/Investment Properties	82	70	59
Investmentproperty (net)	25	25	25
Intangible Assets	18	15	18
Goodwill	103	106	107
Investment In Subsidiaries	57	54	53
Financial Assets
(i)Investments	1	0	0
(ii)Others Financial Assets	9	2	10
(iii)Loans	0	0	0
Deferred Tax Assets(net)	2	4	5
Income Tax Asset	10	23	20
Other non-current assets	12	9	12
Total Non-Current Assets	844	832	859
Current assets
Inventories	279	262	250
Financial Assets
(i)Investments	19	0	0
(ii)Trade receivables	346	415	508
(iii)Cash and cash equivalents	82	84	96
(iv)Bank balances other than(iii)	128	28	45
(v)Loans	0	0	0
(vi)Other Financial Assets	9	68	196
Income Tax Asset	25	30	38
Total Current Assets	888	887	1,134
Total Assets	1,732	1,719	1,993

Equity and Liabilities (Rs Crs.)	Mar-23	Mar-22	Mar-21
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital	22	22	22
Other Equity	1,257	1,028	897
Shareholders Funds	1,279	1,050	919
Non-Current Liabilities
Financial Liabilities
(i) Borrowings	0	20	117
(ii) Lease Liability	40	32	32
Provisions	33	49	55
Deferred Tax Liabilities (Net)	26	28	30
Other non-current liabilities	1	0	0
Total Non-Current Liabilities	100	129	235
Current liabilities
Financial Liabilities
(i) Borrowings	0	80	169
(ii) Lease Liability	11	19	17
(iii) Trade Payables	214	270	424
(iv) Other Financial Liabilities	6	8	40
Other Current Liabilities	103	118	146
Provisions	13	23	26
Current tax liabilities (net)	5	21	17
Total Current Liabilities	353	540	839
Total Liabilities	1,732	1,719	1,993

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45

Historical Consolidated Cash Flow Statement

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Particulars (Rs Crs.)	Mar-23	Mar-22	Mar-21
Profit before Tax	300	171	81
Adjustment for Non-Operating Items	50	106	148
Operating Profit before Working Capital Changes	349	277	229
Changes in Working Capital	27	-22	18
Cash Generated from Operations	376	254	248
Less: Direct Taxes paid	66	31	0
Net Cash from Operating Activities	310	223	248
Cash Flow from Investing Activities	-167	15	-19
Cash Flow from Financing Activities	-145	-250	-210
Net increase/ (decrease) in Cash & Cash equivalent	-2	-12	19
Cash and cash equivalents at the beginning of the period	84	96	77
Cash and cash equivalents at the end of the period	82	84	96

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46

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Thank You

Company: ELCON ENGINEERING COMPANY LIMITED CIN: L29100GJ1960PLC001082

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Shri Narasimhan Raghunathan / Shri Ashish R Jain Email: narasimhanr@elecon.com / arjain@elecon.com For updates and specific queries, please visit www.elecon.com

Investor Relations: Strategic Growth Advisors Pvt. Ltd. www.sgapl.net CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Ms. Prachi Chhugani Email: sagar.shroff@sgapl.net / prachi.c@sgapl.net +91 98205 19303 / +91 89492 92029

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