Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q1 FY2025 Earnings Presentation
35 slides from Elecon Engineering's earnings presentation, 2024
Slide 1: Elecon Engineering Investor Presentation Q1FY25
ELECON ENGINEERING COMPANY LIMITED INVESTOR PRESENTATION Unifying vision, Global impact Q1FY25 ONE OF ASIA’S LARGEST INDUSTRIAL GEAR SOLUTION COMPANY
Slide 2: Safe Harbor
Safe Harbor 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 fo
Slide 3: Safety and Wellness
Safety and Wellness 2020-21 2022-23 Q1FY25 To prevent incidents and Zero Zero Zero prioritize well-being, we minor, major or fatal minor, major or fatal minor, major or fatal implement accidents accidents accident ❖ Safety Audits ❖ Mock drills on periodically ❖ Emergency Plans ❖ Fire Protocols 0 0 0
Slide 4: Company Overview
B 2 p 0) > 1°) z F a g 3 1S) Ao
Slide 5: Engineering Co providing Innovation led Technology Solutions
Engineering Co providing Innovation led Technology Solutions State of art manufacturing facilities with DSIR One of the largest manufacturer of Gear Solution providers in Asia & Material Handling Equipments approved In-House R&D facility for new product development and separate Engineering facility
Slide 6: Started in 1951 and evolved as Asia's Largest Gear Solutions Co
Started in 1951 and evolved as Asia’s Largest Gear Solutions Co Established in Mumbai by Late Shri Ishwarbhai Patel Acquisition debt repaid Forayed into manufacturing conveying Listed on Bombay Established Successful execution of defence equipment Stock Exchange Gear division (Indian Navy) project 1
Slide 7: Values & Culture at Elecon
Values & Culture at Elecon Our Values are our Bedrock! 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 high
Slide 8: Global MNC with Strong Distribution Network
Global MNC with Strong Distribution Network FY24 Update 24% Revenue Contribution from Serving to Overseas Market 85+ 11 OEM Partnership Countries Overseas Market Domestic Market 35+ 4 Manufacturing & 55+ 100+ Assembly Centres 65+ Pan India Customer Customer Presence Distributors & Dealers Distributo
Slide 9: State of the Art Manufacturing Facility
State of the Art Manufacturing Facility State of the art facility located at Vallabh Vidyanagar, Gujarat The facility is spread over 335,000 Square Meter Bird’s eye view of the Facility 9
Slide 10: Gear Division – Providing a wide variety of solutions
Gear Division – Providing a wide variety of solutions Diversified across Market leaders in the Best in class Gear Widest range of World Class industries such as domestic market and operations with low strategically expanding Solutions Industrial Gears Power, Cement, lead time Sugar, Steel etc. overs
Slide 11: Supplying to multiple industries thus diversifying risk
Supplying to multiple industries thus diversifying risk Steel Cement Sugar Plastic Industry Agnostic Gear Access to new market Resilience to Business Sustainable Performance Solutions opportunities Cycles Defence Rubber Mining Power …and many more 11
Slide 12: MHE Division: A proxy to Capex Creation
MHE Division: A proxy to Capex Creation Largest supplier of Pioneers in Stockyard Machines Enhanced manufacturing Bulk & Wagon tipplers in diversification Widest range of End User Industry MHE India across industries products Consistent delivery Robust In-House Discontinued EPC Maintaining of high-q
Slide 13: Board of Directors
Board of Directors Shri Prayasvin B. Patel Shri Pranav C. Amin Chairman & Managing Director Independent & Non-Executive Director Experience of 49 years in engineering industry. He holds a Bachelors in He is a graduate in Economics/Industrial Management and MBA in Engineering (Mech.) and an MBA (USA)
Slide 14: Strong Management Team
Strong Management Team Shri M.M Nanda Shri P. K. Bhasin Head of Gear Division Head of MHE Division Joined Elecon in 1973 as a Liaison Officer and advanced Effective leader with over 40 years of experience and his to become the Marketing Head and subsequently the core expertise lies in Marketing, Hum
Slide 15: Strong Relationship with Marque Clients
Strong Relationship with Marque Clients Gear MHE …and many more The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only 15
Slide 16: Awards and Recognition
Awards and Recognition Excellence Award in the category of Best Practices in HR & IR Policies 2nd Consecutive Year in a row by Federation of Gujarat Industries 16
Slide 17: ESG Vision
| ° vt 2) vt ESG V: ol
Slide 18: Sustainable towards Environment
Sustainable towards Environment 60% Green Campus Rainwater Harvesting to conserve rainwater ~90% Lighting converted into LED 40% reduction in using wood by replacing to Nail-less Packaging STP to reuse sewage water 60% Energy from Renewal Sources • Wind Power – 14 MW & Solar Power – 4 MW Advance Ele
Slide 19: Elecon Engineering – A responsible corporate
Elecon Engineering – A responsible corporate Health & Medical Promoting Sports Caring for Society ❖ Blood Donation Camp ❖ Elecon Cricket Academy ❖ Food Distribution for needy ❖ Supporting charitable hospitals ❖ Support to Weaker Section of ❖ Elecon Tennis Academy Society with latest medical equipmen
Slide 20: Vision for Inclusiveness
Vision for Inclusiveness Promoting procurements from MSME Sustainable Supply Chains Dealer and Channel Conducting Training CSD Sales Conference Partner Meet Program for the customers Web Supplier Portal for sustainable supply chain Business Partner Meet Training Program 20
Slide 21: Building Strong Workforce with Care
Building Strong Workforce with Care Sustained Workforce Leadership Program Care & Safety Culture Encouragement ❖ 10+ Years average service ❖ “Gurupath”– A succession ❖ Zero Fatality ❖ 70+ Learning and ❖ Celebrate events for period of an employee development programme Development Programs ❖ Health &
Slide 22: Q1 FY25 Performance Highlights
Q1 FY25 Performance Highlights
Slide 23: Consolidated Segment Wise Performance
Consolidated Segment Wise Performance Revenue (Rs Crs.) EBIT (Rs Crs.) Margin (%) 24.6 23.5 • Revenue from Gear division were impacted on account of -7% -11% weakness in order inflow due 361 89 Gear 334 79 to general elections in Q1FY25 • We anticipate demand uptick in balance 9M of FY25 to recoup t
Slide 24: Consolidated Revenue Split
Consolidated Revenue Split Geography Wise Segment Wise (Rs Crs., %) (Rs Crs., %) Q1FY24 Q1FY25 Q1FY24 Q1FY25 54 58 113 (13%) (15%) (27%) 133 (34%) 259 302 (66%) (73%) 361 334 (87%) (85%) Domestic Overseas Gear MHE Focusing on wining new OEM contracts and growing the share of MHE Segment witnessed a
Slide 25: Consolidated Order Book
Consolidated Order Book Order Intake (Rs Crs.) Open Order as on 30th June 2024(Rs Crs.) +9.7% +19.4% 545 947 497 793 598 396 446 655 349 149 51 138 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Gear MHE ❖ Gear Division: The order intake for Q1 FY25 stood at Rs 396 Crs as compared to Rs 446 Crs. Order in Hand is Rs 59
Slide 26: Consolidated Quarterly Performance
Consolidated Quarterly Performance Total Revenue Revenue (Gear) Revenue (MHE) (Rs Crs.) (Rs Crs.) (Rs Crs.) -5% -7% +9% 414 392 361 334 58 54 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 EBITDA Profit After Tax (Rs Crs.) (Rs Crs.) Margin (%) 24.1 23.5 Margin (%) 17.6 18.7 -8% +1% 100 92 73 73 Q1FY24 Q1
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) Q1FY25 Q1FY24 Y-o-Y FY24 FY23 Y-o-Y Revenue from Operations 392 414 -5.3% 1,937 1,530 26.7% Operating Expenses 197 216 1,018 836 Gross Profit 195 198 -1.3% 919 694 32.4% Gross Profit Margin 49.8% 47.8% 200 bps 47.4% 45.4% 210 bps Employ
Slide 28: From the desk of CMD
From the desk of CMD 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 profitabi
Slide 29: Historical Performance
o 13) | E tml g tl o Au = @ iS) ort I ° ~~ a orl He -
Slide 30: Consolidated Historical Financial Performance and Guidance for FY25
Consolidated Historical Financial Performance and Guidance for FY25 Total Revenue EBITDA EBITDA Margin (Rs Crs.) (Rs Crs.) (%) +680 bps 2,225 534 24.5% 24.0% +22.9% 1,937 474 22.2% +36.8% 20.3% 1,530 17.7% 339 1,212 1,044 246 185 FY21 FY22 FY23 FY24 FY25E FY21 FY22 FY23 FY24 FY25E FY21 FY22 FY23 FY2
Slide 31: Consolidated Historical Ratios
Consolidated Historical Ratios Return on Networth (%)1 ROCE (%)2 Total Asset Turnover (x) Total Fixed Asset Turnover (x) 22.4% 29.1% 1.0 3.7 18.8% 0.9 24.0% 2.9 13.6% 17.6% 0.7 2.3 0.5 1.8 11.4% 6.4% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Debt to Equity (x)3
Slide 32: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) FY24 FY23 FY22 FY21 CAGR Revenue from Operations 1,937 1,530 1,212 1,044 22.9% Operating Expenses 1,018 836 661 562 Gross Profit 919 694 551 482 24.0% Gross Profit Margin 47.4% 45.4% 45.4% 46.2% Employee Cost 188 150 128 118
Slide 33: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Assets (Rs Crs.) Mar-24 Mar-23 Mar-22 Mar-21 Equity and Liabilities (Rs Crs.) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS EQUITY AND LIABILITIES Non-current assets EQUITY Property, Plant and Equipment 516 527 523 548 Capital work-in-progress 1 0 1 0 Equity Share Capital
Slide 34: Historical Consolidated Cashflow Statement
Historical Consolidated Cashflow Statement Particulars (Rs Crs.) FY24 FY23 FY22 FY21 Profit before Tax 465 300 171 81 Adjustment for Non-Operating Items 50 39 106 148 Operating Profit before Working Capital Changes 516 338 277 229 Changes in Working Capital (43) 37 (22) 18 Cash Generated from Operat
Slide 35: Thank You
Thank You Company: ELECON ENGINEERING COMPANY LIMITED Investor Relations: Strategic Growth Advisors Pvt. Ltd. www.sgapl.net CIN: L29100GJ1960PLC001082 CIN: U74140MH2010PTC204285 Mr. Narasimhan Raghunathan / Mr. Ashish Jain Mr. Sagar Shroff / Ms. Prachi Chhugani Email: narasimhanr@elecon.com / arjain
Elecon Engineering Company — Q1 FY2025 Earnings Presentation on 6ix