Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q4 FY24 Earnings Presentation
39 slides from Elecon Engineering's earnings presentation, 2024
Slide 1: Investor Presentation – Q4 & FY24
ONE OF ASIA’S LARGEST INDUSTRIAL GEAR SOLUTION COMPANY ELECON ENGINEERING COMPANY LIMITED Investor Presentation – Q4 & FY24
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 Period Minor Major Fatal Q4FY24 0 0 0 Q3 FY24 0 0 0 Q2 FY24 0 0 0 Q1 FY24 1 0 0 2023-24 1 0 0 Last 3 Financial Years 2022-23 0 0 0 2021-22 1 0 0 2020-21 0 0 0 At Elecon, safety and well-being take precedence as our utmost concern. Over the last three years, we have not experience
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Engineering Co providing Innovation led Technology Solutions
Engineering Co providing Innovation led Technology Solutions Company compliant with an Integrated Management System based on ISO 45001:2018 ISO 9001:2015, ISO 14001:2015. NABL accredited First in India to manufacture sophisticated laboratory, aligning with ISO/IEC 17025:2017 equipment for bulk Mater
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 Successful execution of defence manufacturing Listed on Bombay (Indian Navy) project Established Gear division conveying equipment Stock Exchange
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 Overseas Market Domestic Market 100+ 65+ Distributors & Dealers Distributors & Dealers 35+ 55+ Customer Customer representatives representatives 4 Manufacturing & Pan India Assembly Centers Presence 11 Sales Offices MANUFACTURING FACILITIES ASSEMBLY & SERV
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: Product Enrichment through Addition & Upgradation
Product Enrichment through Addition & Upgradation RTC Gearbox Screw Jack Gear Box Crane Gearbox ❖ Features: Single Stage, Worm Gear, Speed Reducer ❖ Features : Single Stage, Worm Gear, Speed Reducer ❖ Usage : For drives of transporting equipment, lifting gears, crane & elevators ❖ Usage: Used in tir
Slide 13: 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 14: Board of Directors
Board of Directors Shri Prayasvin B. Patel Shri Pradip M. Patel Shri Prashant C. Amin Dr. Sonal V. Ambani Chairman & Managing Director Non-Independent & Non-Executive Director Non-Independent & Non-Executive Director Independent & Non-Executive Director Experience of more than 30 years in Bearing Ex
Slide 15: 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 to Effective leader with over 40 years of experience and his become the Marketing Head and subsequently the Vice core expertise lies in Marketing
Slide 16: Strong Relationship with Marquee Clients
Strong Relationship with Marquee 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 17: Awards and Recognition
Awards and Recognition @€LECON wont Goverment in| FRR Nis of Comune and eds sh Department of Commerce [3M Dietnse Gener of Fria Td es are Hea Fae PATO Ctificate of Recognition aidan Pata asa Two Star Export house ak ‘8g ELECON ENGINEERING COMPANY LIMITED (0 § 0888003978 ste sez fr AAACEAGHD ) Rom A,
Slide 18: Awards and Recognition
Awards and Recognition 2nd Consecutive Year in a row 18
Slide 19: ESG Vision
ESG Vision
Slide 20: Sustainable towards Environment
Sustainable towards Environment 60% Energy from Renewal Sources ~90% Lighting converted into 60% Green Campus • Wind Power – 14MW LED • Solar Power – 5 MW Additional solar plant is under discussion 40% reduction in using wood Advance Electric powered STP to reuse sewage water by replacing to Nail-le
Slide 21: Elecon Engineering – A responsible Corporate
Elecon Engineering – A responsible Corporate Health and Medical Promoting Sports Caring for Society ❖ Blood Donation Camp ❖ Elecon Cricket Academy ❖ Food Distribution for needy ❖ Supporting charitable hospitals with ❖ Support to Weaker Section of latest medical equipment ❖ Elecon Tennis Academy Soci
Slide 22: Vision for Inclusiveness
Vision for Inclusiveness Dealer and Channel Partner Meet Sustainable Supply Chains 02 04 01 03 05 Promoting procurements from MSME Business Partner Meet Web Supplier Portal for sustainable Supply Chain CSD Sales Conference Dealer Meet Business Partner Meet 22
Slide 23: Building Strong Workforce with Care
Building Strong Workforce with Care Sustained Workforce Leadership Development Program Celebrations ❖ Celebrate events for employees' ❖ “Gurupath” – A succession development programme achievements ❖ Leadership Development program under “Gurukul” ❖ 10+ Years average service period of an employee Proj
Slide 24: Q4 & FY24 Financial Highlights
Q4 & FY24 FINANCIAL HIGHLIGHTS
Slide 25: FY24 Key Highlights
FY24 Key Highlights Revenue Growth Highest Ever Revenue of Rs 1,937 Crs. PAT Growth And 27% Y-o-Y Highest Ever Profit After Tax of Rs 356 Crs. 50% Y-o-Y Successfully signed-off 11 OEM Business in overseas market having Proposed Stock Split: From Rs 2.0/- per share to Re 1.0/- per share annual estima
Slide 26: Strong Consolidated Quarterly & Yearly Performance
Strong Consolidated Quarterly & Yearly Performance For the Quarter Ended March 2024 (Q4FY24) Revenue EBITDA EBITDA Margin Profit After Tax Profit After Tax Margin Rs. 565 Crs. Rs. 135 Crs. 24.0% Rs. 104 Crs. 18.4% +33% +46% +210 b ps +53% +240 b ps For the Year Ended March 2024 (FY24) Revenue EBITDA
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 565 425 33.0% 474 19.2% 1,937 1,530 26.7% Operating Expenses 288 251 251 1,018 836 Gross Profit 277 173 59.9% 223 24.5% 919 694 32.4% Gross Profit Margin 49.1% 40.
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs Crs.) Mar-24 Mar-23 Equity and Liabilities (Rs Crs.) Mar-24 Mar-23 ASSETS EQUITY AND LIABILITIES Non-current assets EQUITY Property, Plant and Equipment 516 527 Capital work-in-progress 1 0 Equity Share Capital 22 22 Right to use of Assets/Investment Properties
Slide 29: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs Crs.) Mar-24 Mar-23 Profit before Tax 465 300 Adjustment for Non-Operating Items 50 39 Operating Profit before Working Capital Changes 516 338 Changes in Working Capital (43) 37 Cash Generated from Operations 472 375 Less: Direct Taxes paid 108 66 Net
Slide 30: Consolidated Revenue Split
Consolidated Revenue Split Geography Wise (Rs Crs., %) Segment Wise (Rs Crs., %) Q4FY23 Q4FY24 Q4FY23 Q4FY24 120 58 112 115 (14%) (27%) (21%) (20%) 309 445 452 (73%) 366 (79%) (86%) (80%) FY23 FY24 FY23 FY24 216 293 442 458 (14%) (15%) (29%) (24%) 1,088 1,479 (71%) 1,313 1,644 (76%) (86%) (85%) Dome
Slide 31: Consolidated Segment Wise Performance Gear MHE
Consolidated Segment Wise Performance Revenue (Rs Crs.) EBIT (Rs Crs.) Margins (%) 21.4 25.5 22.0 25.6 +45.8% EBIT Margin +25.2% 420 1,644 25.6% Gear 1,313 288 +47.3% +23.4% 115 +360 b ps 452 78 366 For FY24 Y-o-Y Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Revenue (Rs Crs.) EBIT (Rs Crs.) Margi
Slide 32: Consolidated Order Book
Consolidated Order Book Order Intake (Rs Crs.) Open Order as on 31st March 2024 (Rs Crs.) +23.2% +11.5% 1,994 796 714 1,619 536 1,601 569 +32.7% 1,396 556 419 412 260 373 393 145 144 223 46 Q4FY23 Q4FY24 FY23 FY24 FY23 FY24 Gear MHE Key Highlights ❖ Gear Division: The order intake for FY24 stood at
Slide 33: Historical Financials
Historical Financials
Slide 34: Consolidated Historical Financial Performance and Guidance for FY25
Consolidated Historical Financial Performance and Guidance for FY25 Revenue (Rs Crs.) EBITDA (Rs Crs.) EBITDA Margin (%) +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 FY24 FY25
Slide 35: Consolidated Historical Ratios
Consolidated Historical Ratios Return on Net worth (%)1 ROCE (%)2 Total Asset Turnover (x) Net Fixed Asset Turnover Ratio (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
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
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 Capital work-in-progress 1 0 1 0 Equity Share Capital
Slide 38: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow 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 Opera
Slide 39: Thank You
Thank You Company: ELECON ENGINEERING COMPANY Investor Relations: Strategic Growth Advisors Pvt. Ltd. LIMITED www.sgapl.net CIN: L29100GJ1960PLC001082 CIN: U74140MH2010PTC204285 Shri Narasimhan Raghunathan / Shri Ashish R Jain Mr. Sagar Shroff / Ms. Prachi Chhugani Email: narasimhanr@elecon.com / ar
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