Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q3 FY2025 Earnings Presentation
39 slides from Elecon Engineering's earnings presentation, Jan 22, 2025
Slide 1: Exchange filing cover letter for investor presentation
22nd January, 2025 To, The Manager (Listing), The Manager (Listing), The BSE Ltd. National Stock Exchange of India Ltd. Mumbai Mumbai Company’s Scrip Code: 505700 Company’s Scrip Code: ELECON Sub. : Investor Presentation of the Earnings Conference Call to be held on 23rd January, 2025 Ref. : Regulat
Slide 2: Investor Presentation Q3 & 9MFY25
ELECON ENGINEERING COMPANY LIMITED INVESTOR PRESENTATION Unifying vision, Global impact Q3 & 9MFY25 ONE OF ASIA’S LARGEST INDUSTRIAL GEAR SOLUTION COMPANY
Slide 3: 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 4: Safety and Wellness
Safety and Wellness 2020-21 2022-23 9MFY25 To prevent incidents and Zero Zero One prioritize well-being, we minor, major or fatal minor, major or fatal minor accident implement accidents accidents ❖ Safety Audits ❖ Mock drills on periodically ❖ Emergency Plans ❖ Fire Protocols 0 0 1 ❖ Comprehensive
Slide 5: Company Overview
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Slide 6: 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 7: Started in 1951 and evolved as one of Asia's Largest Gear Solutions Co.
Started in 1951 and evolved as one of 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) p
Slide 8: 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 9: Global MNC with Strong Distribution Network
Global MNC with Strong Distribution Network FY24 Update Serving to 24% 85+ Revenue Contribution from Overseas Market Countries 11 OEM Partnership 2 R&D Centres in India Overseas Market Domestic Market 35+ 4 Manufacturing & 55+ 100+ Assembly Centres 65+ Pan India Customer Customer Presence Distributo
Slide 10: 2 R&D Centres in India to strengthen our leadership position
2 R&D Centres in India to strengthen our leadership position Pre- DSIR approved In- Engineering 100+ Engineers Design House R&D facility Stage team dedicated for Stage R&D 3-D Design Model & Analysis & 20+ Software for Drawings Value 2 Patents granted designing, analysis and Engineering and 5 Patent
Slide 11: 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 10
Slide 12: 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 13: 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 12
Slide 14: 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 15: 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 16: 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 17: 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 16
Slide 18: Awards and Recognition
Awards and Recognition Excellence Award in the category of Best Practices in HR & IR Policies 3rd Consecutive Year in a row by Federation of Gujarat Industries 17
Slide 19: ESG Vision
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Slide 20: Sustainable towards Environment 1/2
Sustainable towards Environment 1/2 Eco friendly and 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
Slide 21: Sustainable towards Environment 2/2
Sustainable towards Environment 2/2 Elecon’s commitment to 3 United Nations Sustainable Development Goals (UN SDGs) for pledge towards sustainable environment Elecon received approval for NEAR-TERM SCIENCE-BASED TARGETS from SBTi on 6th January 2025 Elecon commits to reduce absolute scope 1 and 2 GH
Slide 22: 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 ❖ Charity to NGOs for health care ❖ Support to Weaker Section of ❖ Elecon Tennis Academy Society and financial support to peo
Slide 23: 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 22
Slide 24: 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 ❖ 150+ Learning and ❖ Celebrate events for period of an employee development programme Development Programs ❖ Health &
Slide 25: Q3 & 9MFY25 Performance Highlights
Q3 & 9MFY25 Performance Highlights Scan QR Code for detailed financials
Slide 26: Consolidated Segment Wise Performance
Consolidated Segment Wise Performance Revenue (Rs Crs.) EBIT (Rs Crs.) Margin (%) 27.4 27.9 26.2 24.6 • Revenue from Gear Division -3.6% were impacted on account of sluggishness in domestic 1,192 -9.7% 1,149 market, resulting in delay of Gear 313 282 +2.1% capex investments. +3.7% 409 417 112 116 •
Slide 27: Consolidated Revenue Split
Consolidated Revenue Split Geography Wise* Segment Wise (Rs Crs., %) (Rs Crs., %) +4.1% +4.1% 1.4% 1,429 -3.6% 1,429 1,373 1,373 1,048 1,034 1,149 (73%) 1,192 (75%) (80%) +11.7% +11.7% (87%) 529 529 474 474 16.4% 2.1% 346 403 417 55.2% (76%) 12.6% 409 (79%) (73%) 338 381 (86%) (27%) 71.9% 280 128 12
Slide 28: Consolidated Order Book
Consolidated Order Book Order Intake (Rs Crs.) Open Order as on 31st Dec 2024 (Rs Crs.) +20.7% +39.7% 1,735 1,105 1,438 791 684 1,297 +24.6% 1,189 572 654 525 469 368 421 438 219 157 185 249 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 Gear MHE ❖ Gear Division: The Order intake for Q3FY25 stood at Rs.
Slide 29: Consolidated Performance
Consolidated Performance Total Revenue Revenue (Gear) Revenue (MHE) (Rs Crs.) (Rs Crs.) (Rs Crs.) +4.1% -3.6% +55.2% 1,373 1,429 1,192 1,149 280 +11.7% +2.1% +71.9% 181 474 529 409 417 112 65 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 EBITDA Profit After Tax
Slide 30: Consolidated Key Ratios
Consolidated Key Ratios Return on Networth (%)1,5 ROCE (%)2,5 Total Asset Turnover (x)5 Fixed Asset Turnover (x)5 22.4% 29.1% 1.0 3.7 3.7 20.5% 26.2% 0.9 FY24 H1FY25 FY24 H1FY25 FY24 H1FY25 FY24 H1FY25 Debt to Equity (x)3 Working Capital Cycle (Days) Current Ratio (x) Quick Ratio (x)4 0.07 79 3.0 3.
Slide 31: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q 9MFY25 9MFY24 Y-o-Y Revenue from Operations 529 474 11.7% 508 4.1% 1,429 1,373 4.1% Operating Expenses 268 251 279 743 731 Gross Profit 261 223 17.2% 230 13.6% 686 642 6.8% Gross Profit Margin 49.3% 47.0
Slide 32: 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 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 ma
Slide 33: Historical Performance
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Slide 34: 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% +36.8% 474 22.2% 1,937 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 FY
Slide 35: 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 36: 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 O
Slide 37: 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 Equity Share Capital 22 22 22 22 Capital work-in-progr
Slide 38: 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 39: 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 / Mr. Nishant Dudhoria Email: narasimhanr@elecon.com / arjai
Elecon Engineering Company — Q3 FY2025 Earnings Presentation on 6ix