Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q2 FY23 Earnings Presentation
35 slides from Elecon Engineering's earnings presentation, Nov 3, 2022
Slide 1: Regulation 30 filing cover letter
1sooooi,201s • l!l • - A ® TUVRhelnlend ISO 14001:2015 ISO 45001:2018 •• l!l • 4 °, / wwwtuv.com lD 9105017019 3rct November, 2022 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: ELE
Slide 2: Investor Presentation | Q2 & H1 FY23
Investor Presentation | Q2 & H1 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: Company Overview
Company Overview
Slide 5: About 'ELECON'
About ‘ELECON’ Footprint on Global Map 1 ISO 9001:2015; 14001:2015; OHSAS 18001:2007 Company. Asia’s largest Industrial Gear Manufacturing having facility 2 spread over 335,000 Square Meter. First in India to manufacture sophisticated equipment for bulk Material 3 Handling and a product range that c
Slide 6: Milestones
Milestones Acquisition debt repaid in overseas entity Substantial reduction Established in Goregaon, Mumbai in debt on standalone by Shri Ishwarbhai Patel basis Established Successful separate Gear execution of Highest profits in the Foray into manufacturing division defence (Indian history of Compa
Slide 7: 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 8: Recognition in H1FY23
Recognition in H1FY23 G . GEARING THE FUTUREDSO Government of India Stir of Finance ENGINEERING COMPANY LIMTED MAAACEHOIZE
Slide 9: Proud to power India's 1st Indigenous Gear Box
Proud to power India’s 1st Indigenous Gear Box Congratulations to Indian Navy and Cochin Shipyard on commissioning of INS Vikrant when India celebrates 75 Years of “AZADI KA AMRIT MAHOTSAV”. Proud to power India’s 1st Indigenously-built Aircraft Carrier – INS Vikrant by delivering customised COGAG (
Slide 10: Latest Milestone In Defence Supply
Latest Milestone In Defence Supply ELECON has successfully delivered 14 nos. CODOG (Combined Diesel or Gas turbine) type gearboxes stealth frigates of Indian Navy in record delivery time even under challenging period of COVID19 Pandemic. Each gearbox is designed to transmit power from a Gas Turbine
Slide 11: New Product Development – Planetary Gearbox
New Product Development – Planetary Gearbox Power 3,200 KW and above Output rated torque : 2000 KNm and above Ratio range : 30:1 Key Features of this new developed Product: • Import substitution for customers • Latest technology • Power consumption & noise reduction by improving torque
Slide 12: Design and Engineering Capability for customised Gearbox
Design and Engineering Capability for customised Gearbox Elecon is manufacturing assembly and completed no load testing of one of the Biggest “ VERTICAL ROLLER MILL DRIVE “ for India’s leading cement manufacturer. ELECON has Successfully manufactured and supplied “Vertical Roller Mill Gearbox”.
Slide 13: Financial Performance – Q2 & H1 FY23
Financial Performance – Q2 & H1 FY23
Slide 14: Financial Performance Q2FY23
Financial Performance Q2FY23 Consolidated In Rs. Cr Q2 FY22 Q2 FY23 24% 39% 87% 82% 65 83 93 389 314 67 44 35 Sales EBITDA PBT PAT Standalone In Rs. Cr 28% 48% 104% 106% 305 65 48 75 239 51 32 23 Sales EBITDA PBT PAT
Slide 15: Financial Performance H1FY23
Financial Performance H1FY23 Consolidated In Rs. Cr H1 FY22 H1 FY23 18% 137 25% 72% 71% 716 157 608 107 126 80 63 Sales EBITDA PBT PAT Standalone In Rs. Cr 22% 29% 73% 74% 562 81 130 109 460 101 46 63 Sales EBITDA PBT PAT
Slide 16: Key Ratios Analysis
Key Ratios Analysis Consolidated FY22 H1 FY23 81% 23% 21% 20.8 0.8 0.7 21% 11.5 18% 18% 14% RoE RoCE PE Ratio Net Asset Turnover ratio Standalone 28% 29% 75% 0.7 29.5 14% 0.6 18% 11% 14% 16.9 RoE RoCE PE Ratio Net Asset Turnover ratio Note: H1 FY23 Ratios are Annualised.
Slide 17: Key Ratios Analysis
Key Ratios Analysis Consolidated FY22 H1 FY23 0.1 2.1 89 1.6 88 0.0 Current Ratio Working Capital Cycle (Days) Debt Equity Standalone 0.1 99 86 1.9 1.5 0.0 Working Capital Cycle (Days) Current Ratio Debt Equity
Slide 18: Financial Track Record
Financial Track Record Consolidated In Rs. Cr FY20 FY21 FY22 FY23 Guidance EBITDA Margin 22% 20% 0.47 18% 13% 0.31 0.10 330 0.00 1,044 1,088 1,212 1,500 246 140 185 Sales EBITDA Debt Equity 24% 21% 18% 14% 11% 7% 8% 2%* RoE RoCE • Excluding exceptional Tax reversal / credit effect.
Slide 19: Financial Track Record
Financial Track Record Standalone In Rs. Cr FY20 FY21 FY22 FY23 Guidance EBITDA Margin 24% 21% 0.43 18% 0.27 13% 0.11 1,200 0.00 105 144 184 288 796 836 893 Debt Equity Sales EBITDA 24% 21% 15% 10% 11% 5% 6% 0%* RoE RoCE • Excluding exceptional Tax reversal / credit effect.
Slide 20: Key Highlights
Key Highlights Standalone Operations: External Credit Ratings: Long term: [ICRA] A+ (Stable) ; Short term: [ICRA]A1 A1 Outstanding Retention: Rs.68 Crs as at 30th Sep 2022 There are favourable developments in some cases of Arbitration awards of Rs. 60+ Crs during Q2FY23
Slide 21: Segment Analysis - Gear
Segment Analysis - Gear Q2 FY22 Q2 FY23 250 31% 71% 24% 60 190 35 19% Revenue (Rs. Cr) EBIT (Rs. Cr) EBIT H1 FY22 H1 FY23 22% 37% 464 23% 21% 109 381 79 Revenue (Rs. Cr) EBIT (Rs. Cr) EBIT
Slide 22: Segment Analysis – MHE
Segment Analysis – MHE Q2 FY22 Q2 FY23 14% 19% 55 14% 49 13% 8 7 EBIT Revenue (Rs. Cr) EBIT (Rs. Cr) 25% H1 FY22 H1 FY23 100% 98 13% 78 12 8% 6 Revenue (Rs. Cr) EBIT (Rs. Cr) EBIT
Slide 23: Consolidated Order-Book
Consolidated Order-Book Order Intake In Rs. Cr Open Order H1 FY23 As at Sep 30, 22 GEAR 744 602 MHE 94 112 TOTAL 838 714
Slide 24: Outlook
Outlook
Slide 25: Share Price Performance – 1 Year
Share Price Performance – 1 Year 12,000 500 Volume Price 10,000 400 8,000 300 in '000 6,000 Rs 200 4,000 2,000 100 0 0 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 2200 Relative Performance 2000 1800 1600 BSE NSE 1400 BSE CG Elecon Sensex Nifty 1200 1000
Slide 26: Investor Information
Investor Information AIF, 0.7% Mutual Fund, 0.8% FPI, 2.01% Stock Information (as on Sept 30, 2022) BSE / NSE Scrip Code 505700 / ELECON Shares Outstanding (Cr) 11.2 H1 FY23 Others, 37.24% Market Cap (₹ Cr) 3,836 Promoters, 59.3% Industry Industrial Equipment Promoters Mutual Fund AIF FPI Others
Slide 27: Guidance & Initiatives
Guidance & Initiatives Standalone and Planned Capex of Rs. 100 Expanding global Consolidated Revenue Crores over a period of footprints, global target of Rs. 1,500 Crores two years considering branding and other and Rs. 2,000 Crores revenue growth marketing initiatives respectively by FY24. projecti
Slide 28: Economy Outlook
Economy Outlook Economy IMF has cut India's FY23 GDP forecast by 60 basis points to 6.8% on the back of high inflation, rising interest rate and subdued external demand against a backdrop of ongoing war between Russia-Ukraine Sizable investments in infrastructure sector and core industries is likely
Slide 29: Multiple Growth Drivers
Multiple Growth Drivers Scale Scope Elecon is the largest manufacturer of gears in Encompasses both catalogue and engineered Asia, ~36% share of Organised Market in India products for all the core industries Size Skills Its MHE business has the capacity Over 7 decades of industry experience to addre
Slide 30: ESG Vision
ESG Vision Environment Vision • Renewable Energy Installed • Solar Power – 3 MW • Wind Power - 14 MW • 2 MW Solar Power Project under progress • 60% Green Campus cover at plant facility Social Vision • Creating a gender-diverse workforce. • Health activities for community • Health & Safety awareness
Slide 31: Commitment towards Environment, Safety & Health
Commitment towards Environment, Safety & Health 70% Energy from 60% Green Campus Facility Safety First Health & Medical Renewal Sources
Slide 32: Social Engagement
Social Engagement Education Support to Weaker Section of Society
Slide 33: Commitment to Empowerment
Commitment to Empowerment Women Empowerment Partner Meet- Vendor Sports
Slide 34: Follow Us
Follow Us https://www.facebook.com/elecongear/ https://www.linkedin.com/in/elecon-engineering-co-ltd-112b06193/detail/recent-activity/ https://twitter.com/elecon_co https://www.youtube.com/channel/UCOLCcsCiq8ItCebbLmup65g?app=desktop https://www.instagram.com/eleconengineering/ https://tinyurl.com/E
Slide 35: 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
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