Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q4 FY2023 Earnings Presentation
59 slides from Elecon Engineering's earnings presentation, Apr 25, 2023
Slide 1: Regulation 30 filing letter: Investor Presentation Q4 FY23
~GEAR I NG IS09001:2015 • • ISO 14001:2015 •• [!] ISO 45001:2018 ~ [!] ,;.1 25th April, 2023 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 I
Slide 2: Investor Presentation | Q4 & FY23
Investor Presentation | Q4 & FY23
Slide 3: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "p
Slide 4: Strengthening Leadership Position
Strengthening Leadership Position Coal Pulveriser Gearbox Conveyor Drive Planetary Gearbox Helical Gearbox Rolling Mill Gearbox
Slide 5: Elecon 2.0 – Geared for Growth
Elecon 2.0 – Geared for Growth FY21-FY22 FY23 onwards Loss making Profitable growth Digitalization Cash Position MHE Web Supplier Portal for Net Cash Surplus Strategy to discontinue loss making EPC sustainable Supply Chain Company Projects and Focus only on Profitable & IOT on products Product Busin
Slide 6: Highlights of FY23
Highlights of FY23 @ELECON | benzlers* | radicon*
Slide 7: Growing Revenue With Higher Margin
Growing Revenue With Higher Margin *Highest Revenue & EBIDTA Revenue (Rs Cr) in Last 10 Years EBITDA (Rs Cr) and EBITDA Margin (%) C O N S O L I D AT E D 440 2,000 339* 1,530* FY21-23 CAGR FY21-23 CAGR 246 1,212 35.2% 1,044 21.0% 185 20.3% 22.2% 22.0% 17.7% FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E
Slide 8: Growing Higher Margin
Growing Higher Margin *Highest Profit PBT (Rs Cr) and PBT Margin (%) in Last 10 Years PAT (Rs Cr) and PAT Margin (%) C O N S O L I D AT E D 300* 237* FY21-23 CAGR 140 FY21-23 CAGR 171 15.5% 19.6% 92.0% 58 11.6% 103.0% 81 14.1% 5.5% 7.8% FY21 FY22 FY23 FY21 FY22 FY23 S TA N D A L O N E 188* 246* FY21
Slide 9: Segment Analysis - Standalone
Segment Analysis - Standalone Revenue (Rs Cr) EBIT (Rs. Cr) & EBIT Margin (%) 981 235 G E A R 164 166 FY21-23 CAGR FY21-23 CAGR 757 24.9% 24.0% 22.0% 657 22.2% 19.9% FY21 FY22 FY23 FY21 FY22 FY23 32 216 FY21-23 CAGR -0.6% 14.9% M H E 139 136 24.6% -1 -36.2% -50
Slide 10: Key Ratio (Consolidated)
Key Ratio ROE ROCE Working Capital Cycle (Days) 91 20.4% 24.0% 78 74 14.3% 17.6% 11.4% 6.5% C O N S O L I D AT E D FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Net Assets Turnover (x) Net Debt to Equity (x) Current Ratio (x) 0.9 0.3 2.5 0.7 0.5 1.6 1.4 0.1 0.0 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22
Slide 11: Key Ratio (Standalone)
Key Ratio ROE ROCE Working Capital Cycle (Days) 18.9% 23.3% 101 11.1% 15.0% 69 72 10.5% 4.5% S TA N D A L O N E FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Net Assets Turnover (x) Net Debt to Equity (x) Current Ratio (x) 0.3 2.3 0.8 0.6 1.5 1.3 0.4 0.1 0.0 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY
Slide 12: PE Ratio
S TA N D A L O N E C O N S O L I D AT E D PE Ratio 12 FY21 20 11 17 FY22 PE (x) 18 23 FY23
Slide 13: Consolidated Revenue Composition FY23
Consolidated Revenue Composition MHE, 14% FY23 Overseas, 22% Domestic, 71% Other, 29% Revenue FY23 Contribution Revenue Export from Contribution India, 7% Gear, 86%
Slide 14: Focus on Enhancing Return & Payout
Focus on Enhancing Return & Payout Earning Per Share (Rs) Dividend (Rs Cr) C O N S O L I D AT E D Dividend Payout Ratio 21.2 22^ 12.5 11* 5.1 4 7.8% 8.0% 9.5% FY21 FY22 FY23 FY21 FY22 FY23 Dividend Payout Ratio 22^ 16.8 S TA N D A L O N E 8.5 11* 3.2 4 12.4% 11.7%* 11.9% * Excluding Special Dividend
Slide 15: NEW EON
NEV EON = ANRQNe = GEA RAN Go _I-N: Do UeS TOR TES
Slide 16: The “New EON”
The “New EON” Recently launched 2nd Generation of EON Series The New EON Series is a game-changing solution that will benefit both, our customer, as well as us, with improved operational efficiency, reduced operational costs, and inventory optimization. New EON series offers a comprehensive ra
Slide 17: New Product Development – Launch New EON Series
New Product Development – Launch New EON Series Product Name : NEW EON 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 R
Slide 18: Journey for Standard Gear Units
Journey for Standard Gear Units 1975 & 1996 2023 – 2nd Generation EON Series Collaborate with German Companies for design of Solution For Industry By Torque, Cost & Delivery Helical and Bevel Helical Gear Unit 1970 1990 2010 2012 2018 2020 2023 2012 & 2018 – 1st Generation EON Series Develop EON sma
Slide 19: Highlights of New EON Series
Highlights of New EON Series 2 1 Design Highlights The Second Generation of EON. • High Torque to Weight • Universal Mounting • Prompt Delivery • Boost Efficiency • Kit Concept 4 3 Gear Units With Add On Parts Innovations and Technology • Cooling Coil • Effective Micro Gear Geometry • Fan • Optimize
Slide 20: New Products Developed and Upgraded in Last 3 Years
New Product Developed and Upgraded in Last 3 Years FY21 FY22 FY23 High Speed Gearbox Vertical Roll Mill Gearbox 1 1 6 Roller Press Gearbox Dual Tandem Gearbox Central Drive Planetary Gearbox Sugar Planetary Gearbox
Slide 21: High Speed Gearbox
High Speed Gearbox Product Name : High Speed Gearbox Features : Single Stage, Double Helical, Speed Reducer Usage : in Power Industry, in-between Steam Turbine & alternator Power : 10 MW Input Speed : 10,500 rpm Ratio range : 7.2 : 1 Key Features of this new developed Product: • Higher efficiency •
Slide 22: Central Drive Planetary Gearbox Product
Central Drive Planetary Gearbox Product Product Name : Central Drive Planetary Gearbox Usage : Ball mill drive of Cement Industry Power : 3,100 kW Output rated torque : 4687 kNm Ratio range : 31.05:1 Weight : 44,000 kg Key Features of this new developed Product: • Import Substitute • Compact & Stron
Slide 23: Sugar Planetary Gearbox Product
Sugar Planetary Gearbox Product Product Name : Sugar Planetary Gearbox Usage : Sugar Mill Output rated torque : 300 to 8000 kNm Ratio range : 140 to 280 :1 Key Features of this new developed Product: • Latest technology • Power consumption & noise reduction by improving torque
Slide 24: Vertical Roller Mill Gearbox
Vertical Roller Mill Gearbox Product Name : Vertical Roller Mill Gearbox Usage : Power & Cement Application : For bigger size Raw Mill, Slag Mill, Clinker Mill, Coal Mill Power : up to 6000kW Key Features of this new developed Product: • Import Substitute • Robust design • Compact and Efficient
Slide 25: Roller Press Gearbox
Roller Press Gearbox Product Name : Roller Press Gearbox Usage : Cement Size range : 415 to 580 Output torque rating : 2500 to 9000 KNm Ratio range : 140:1 to 280:1 Key Features of this new developed Product: • Import Substitute • Complete drive train solution • Robust Torque Arm Design
Slide 26: Dual Tandem Gearbox
Dual Tandem Gearbox Product Name : Dual Tandem Gearbox Usage : Cement & Steel Application : Kiln Drive, Ball Mill Drive Output rated torque : 550 to 2100 kNm Ratio range : 35.5:1 to 280:1 Key Features of this new developed Product: • Compact & Stronger Design • Better efficiency
Slide 27: Research & Development facility
Research & Development facility DSIR approved in-House R&D facility R&D Team 1 67 Engineers team dedicated for R&D 11 10 20+ Software in use for designing, analysis and parameter validation PhD 2 Patents granted and 3 Patents applied for ME BE DME 45 Pre Design 3D Model and Stage Drawings En
Slide 28: Company Overview
Company Overview @ELECON | benzlers® | radicon*
Slide 29: Overview
Overview • Engaged in manufacturing of Industrial Gear Box and Benzlers Sweden Radicon USA Material Handling Equipment • Largest manufacturer with seven decades of PROFILE experience and expertise in Asia Elecon India • Strengthen Global Presence in Industrial Gear Box by innovating and developing p
Slide 30: About ‘ELECON’
About ‘ELECON’ One of Asia’s largest and Integrated Management system - India’s Largest Industrial Gear ISO 9001:2015; ISO 14001:2015; 1 5 Manufacturing Company, having OHSAS 18001:2007 Company facility spread over 335,000 Square Meter. First in India to manufacture sophisticated equipment for Only
Slide 31: Global Presence with Strong Distribution Network
Global Presence with Strong Distribution Network Domestic Market Overseas Market 60+ 100+ Distributors & Dealers Distributors & Dealers 50+ 30+ Customer Customer representatives representatives 4 Assembly Centers Serving to Pan India 10 Presence 75+ Sales Offices countries
Slide 32: Key Segments & Products
Key Segments & Products Helical/Bevel Helical Gearboxes Worm Gearboxes Couplings Feeders Crushers Stackers/Reclaimers Material Handling Equipment Power Transmission Planetary Gearboxes Wind Turbine Gearboxes Marine Gearboxes Raw Material Handling Wagon Tippler & Associated Specialized Conveyors Syst
Slide 33: Business Operation
Business Operation @ELECON | benzlers* | radicon*
Slide 34: Industrial Gearbox Market Size
Industrial Gearbox Market Size Global Market (USD Million) Asia Pacific (USD Million) India (USD Million) 12,254.80 5,044.40 358.30 CAGR CAGR 4.68% 5.09% CAGR 4.52% 8,501.10 3,391.20 251.70 2021 2029 2021 2029 2021 2029 Source : Fortune Business Insights Analysis
Slide 35: Growing Sectoral Outlook
Growing Sectoral Outlook Steel Cement Power Sugar Steel & Mineral Industry has been Cement consumption in India is Elecon expects around 3 more The government has helped in consistently doing well for the past 3 expected to grow by ~6 to 7% in thermal power plants to come up reviving the Sugar indus
Slide 36: Leading Position for Long-term with Integrated Operations
Leading Position for Long-term with Integrated Operations Gear Division ▪ World-class operations ▪ Widest range of industrial gears ▪ Manufacturing facility for Both Catalogue product and Engineered product ▪ High safety standards ▪ Skilled and Trained workforce ▪ Increasing footprints in Overseas M
Slide 37: Portfolio with Market Leading Position – Gear Division
Portfolio with Market Leading Position – Gear Division Most comprehensive range of Industrial Gears under one roof in the world ~34% share in Organized Market in India 700+ Machine Tools to produce high quality Gear Boxes Manufacturing capabilities specially for : • High quality DIN class 2
Slide 38: Pioneers in the field of manufacturing– MHE Division
Pioneers in the field of manufacturing– MHE Division Pioneers in manufacturing Bulk Material Handling Equipment Providing end to end solutions to the core sectors like power, steel, mining, cement, fertilizers and ports In-house design and manufacturing capabilities Largest supplier of Stock
Slide 39: Recognition in FY23
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Slide 40: Trade Show
Trade Show Trade Show National Council for Cement and Building International Society of Sugar Cane Material Exhibition held at Delhi Technologists Exhibition held at Hyderabad
Slide 41: Facility visit by the Board of Directors
Facility visit by the Board of Directors Visit in Gear Division Plant-1 Visit in Design Department Board of Directors Visit in Gear Division Plant-2 Visit in Bhanubhai Memorial Centre of Excellence (BMCE)
Slide 42: Financial Performance Q4 FY23
Financial Performance 04 Q4 FY23
Slide 43: Financial Performance Q4 FY23
Financial Performance Q4 FY23 Revenue (Rs Cr) EBITDA (Rs Cr) and EBITDA Margin (%) PBT (Rs Cr) and PBT Margin (%) PAT (Rs Cr) and PAT Margin (%) C O N S O L I D AT E D 28% 36% 56% 47% 93 68 425 84 332 69 19.8% 21.9% 54 46 16.0% 20.7% 16.2% 14.0% Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY2
Slide 44: Segment Analysis Q4 FY23 - Standalone
Segment Analysis Q4 FY23 - Standalone Revenue (Rs Cr) EBIT (Rs. Cr) & EBIT Margin (%) 30% 29% 272 68 G E A R 210 53 25.0% 25.0% Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 55% 11 58 19.2% M H E 38 1.4% 1
Slide 45: Key Highlights
Key Highlights MSCI India Domestic Small Cap Index: included Elecon Stock External Credit Ratings: LT- [ICRA] A+ (Stable); ST: [ICRA] A1 According to Market Cap Elecon stands on 516 Rank on March 31, 2023 against 770 Rank on March 31, 2022 as per list of top 2000 companies issued by NSE. Net Cash Su
Slide 46: Consolidated Order-Book
Consolidated Order-Book Order Intake In Rs. Cr Open Order Q4 FY23 FY23 As at Mar 31, 2023 GEAR 373 1,396 569 MHE 46 223 145 TOTAL 419 1,619 714
Slide 47: Industry wise Consolidated Order Intake
Industry wise Consolidated Order Intake FY23 Steel 13.8% Cement Sugar 24.6% 6.8% Others 39.1% Cement Gear 9.7% Others MHE 4.6% Power Steel 55.1% 3.2% Power Chemical 8.1% 4.7% Mining MHE Fertilizer 3.7% 7.0% Marine 7.8% 11.8%
Slide 48: Outlook
@ELECON | benzlers* | radicon*
Slide 49: Economy Outlook
Economy Outlook GDP Growth Outlook India : Engineering Industry 6.8% 5.9% 2022 2023 5.2% Capacity creation in sectors like power, steel, 4.0% 3.5% 3.0% 2.1% 1.8% mining, infrastructure, oil & gas, etc., is likely 1.6% 0.8% to drive growth in the engineering industry Technological improvement in
Slide 50: ESG Vision
ESG Vision @ELECON | benzlers® | radicon*
Slide 51: Sustainable towards Environment
Sustainable towards Environment 70% ~ 85%+ 60% Energy from Renewal Sources Lighting converted into LED Green Campus • Wind Power - 14 MW • Solar Power – 5 MW Electric powered ~4000 Sq. Mtr 40% equipment enhanced to unused land developed into reduction in using wood by reduce Natural resources. Green
Slide 52: Social Engagement
Social Engagement Health and Medical Promoting Sports activities Support to Society through • Blood Donation Camp through • Food Distribution for needy • Supporting charitable hospitals • Elecon Cricket Academy • Support to Weaker Section of with latest medical equipments • Elecon Tennis Academy Soc
Slide 53: Commitment towards Safety, Health & Empowerment
Commitment towards Safety, Health & Empowerment Safety Health Empowerment
Slide 54: Building Strong Workforce with Care
Building Strong Workforce with Care Sustained Workforce Leadership Development Program 10+ Years average service period of an Leadership Development program under employee “Gurukul” Project 600+ workforce building team Elecon Culture Champions to drive Cultural Creating a gender-diverse wo
Slide 55: Vision for Inclusiveness
Vision for Inclusiveness Promoting procurements from MSME Business Partner Meet Dealer and Channel Partner Meet Sustainable Supply Chains Web Supplier Portal for sustainable Supply Chain Business Partner Meet Green Channel Certificate Distribution
Slide 56: Share Price Performance – 1 Year
Share Price Performance – 1 Year 12,000 500 10,000 400 8,000 in '000 300 Volume Rs 6,000 200 Price 4,000 2,000 100 0 0 Apr-22 May-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Relative Performance 400 BSE NSE 300 BSE CG Elecon Sensex Nifty 1 Week 2.5% 2.4% 1.3% 1.0%
Slide 57: Shareholding Pattern
Shareholding Pattern AIF, 0.9% Mutual Fund, 0.9% FPI, 2.1% Stock Information (as on March 31, 2023) BSE / NSE Scrip Code 505700 / ELECON No. of Shares 11.2 March 31, 2023 Others, 36.8% Outstanding (Cr) Promoters, 59.3% Market Cap (₹ Cr) 4,265 Industrial Industry Equipment Promoters Mutual Fund AIF F
Slide 58: THANK YOU
THANK YOU ELECON ENGINEERING COMPANY LIMITED For further information, please feel free to contact: Vallabh Vidyanagar, Narasimhan Raghunathan (CFO) Binay Sarda Gujarat, India - 388120 Elecon Engineering Company Limited Ernst & Young LLP Tel.: (02692) 238701 / 238702 / 236469 P: 91-75740 37046 P: 91-
Slide 59: References and Definitions
References and Definitions • Earning Before Interest, tax, depreciation and amortization (EBITDA) is calculated as Profit Before Tax+ Depreciation + Finance Cost- Other Income. • Earning Before Interest and Tax (EBIT) is calculated as profit Before Tax+ Finance Cost • Return on Equity is calculated
Elecon Engineering Company — Q4 FY2023 Earnings Presentation on 6ix