Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q2 FY2025 Earnings Presentation
39 slides from Elecon Engineering's earnings presentation, Oct 18, 2024
Slide 1: Covering letter to stock exchanges
18th October, 2024 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 21st October, 2024 Ref. : Regulat
Slide 2: Investor Presentation Q2 & H1FY25
ELECON ENGINEERING COMPANY LIMITED INVESTOR PRESENTATION Unifying vision, Global impact Q2 & H1FY25 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 H1FY25 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 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) pr
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 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 10: 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 11: 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 12: 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 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 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 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 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 16: 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 17: 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 18: ESG Vision
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Slide 19: Sustainable towards Environment
Sustainable towards Environment 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 – 4
Slide 20: 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 21: 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 22: 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 ❖ 130+ Learning and ❖ Celebrate events for period of an employee development programme Development Programs ❖ Health &
Slide 23: Q2 & H1FY25 Performance Highlights
Q2 & H1FY25 Performance Highlights
Slide 24: Consolidated Segment Wise Performance
Consolidated Segment Wise Performance Revenue (Rs Crs.) EBIT (Rs Crs.) Margin (%) 26.0 20.5 25.4 21.9 • Revenue from Gear division were impacted on account of -6.6% -19.3% delay in receipt of order from 784 199 customers resulted in delay in Gear 732 -25.8% -5.9% 160 execution within Q2FY25. 423 398
Slide 25: Consolidated Revenue Split
Consolidated Revenue Split Geography Wise Segment Wise (Rs Crs., %) (Rs Crs., %) 0.1% 0.1% 899 901 899 901 -6.2% -6.6% 4.8% 4.8% 688 646 508 (72%) 508 732 485 (77%) 485 784 (81%) (87%) -0.1% -5.9% 387 386 398 (76%) 423 (78%) (80%) (87%) 20.9% 255 211 169 122 (23%) (28%) 110 116 45.8% 98 24.2% 62 (19
Slide 26: Consolidated Order Book
Consolidated Order Book Order Intake (Rs Crs.) Open Order as on 30th Sept 2024 (Rs Crs.) 18.4% 30.8% 1,081 966 913 738 28.9% 627 828 536 416 821 615 432 375 339 253 104 92 123 41 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 Gear MHE ❖ Gear Division: The order intake for Q2FY25 stood at Rs 432 Crs. as c
Slide 27: Consolidated Performance
Consolidated Performance Total Revenue Revenue (Gear) Revenue (MHE) (Rs Crs.) (Rs Crs.) (Rs Crs.) 0.1% -6.6% 45.8% 4.8% 899 901 784 732 77.8% 169 -5.9% 110 116 485 508 423 398 62 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 EBITDA Profit After Tax (Rs Crs.) (Rs
Slide 28: 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 29: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1FY25 H1FY24 Y-o-Y Revenue from Operations 508 485 4.8% 392 29.5% 901 899 0.1% Operating Expenses 279 263 197 475 480 Gross Profit 230 222 3.6% 195 17.5% 425 420 Gross Profit Margin 45.2% 45.7% -51bps 4
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-24 Mar-24 Equity and Liabilities (Rs. Crs.) Sep-24 Mar-24 Non-current assets EQUITY Property, Plant and Equipment 504 516 Equity Share Capital 22 22 Capital work-in-progress 17 1 Share Application Money - - Right to use of Assets/Investment Properties
Slide 31: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs Crs.) H1FY25 FY24 Profit before Tax 205 465 Adjustment for Non-Operating Items 6 50 Operating Profit before Working Capital Changes 211 516 Changes in Working Capital (36) (43) Cash Generated from Operations 175 472 Less: Direct Taxes paid 48 108 Net C
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 Q2FY25, Elecon reported consolidated revenues of ₹508 crores, reflecting a 4.8% year-on-year growth. The quarter's EBITDA stood at ₹112 crores, with EBITDA m
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% 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 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 — Q2 FY2025 Earnings Presentation on 6ix