Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q3 FY24 Earnings Presentation
38 slides from Elecon Engineering's earnings presentation, Jan 27, 2024
Slide 1: Exchange filing cover letter for investor presentation
27th January, 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 Investor Call to be held on 29th January, 2024 Ref : Regulation 30 SEBI (
Slide 2: Investor Presentation – Q3 & 9MFY24
ONE OF ASIA’S LARGEST INDUSTRIAL GEAR SOLUTION COMPANY ELECON ENGINEERING COMPANY LIMITED Investor Presentation – Q3 & 9MFY24
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 Period Minor Major Fatal Q3 FY24 0 0 0 Q2 FY24 0 0 0 Q1 FY24 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 experienced any Major and Fatal incid
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: 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 7: 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 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 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 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 Best in class Gear World Class industries such as 39%* Market Share Widest range of Solutions operations with low Power, Cement, in the Domestic Industrial Gears lead time Sugar, Steel etc. Organized Market In-house Strong Bran
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: 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 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: Re-oriented the Business since 2019
Re-oriented the Business since 2019 MHE Division witnessed remarkable turnaround becoming profitable with focus Pioneers with market leadership on Products & aftermarket business Discontinued the EPC Currently Projects and focus on achieving 20%+ products, spares & ROCE service business Strategic in
Slide 16: Board of Directors
Board of Directors Shri Prayasvin B. Patel Shri Pradip M. Patel Shri Prashant C. Amin Shri Jai S. Diwanji Chairman & Managing Director Non-Independent & Non-Executive Director Non-Independent & Non-Executive Director Independent & Non-Executive Director Experience of 48 years in engineering industry
Slide 17: 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 18: 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 17
Slide 19: Awards and Recognition
Awards and Recognition ‘SUPPLIER CONFERENCE - 202223, (M/S ELECON ENGINEERING CO. Ltd, Anand, ularat INDUSTRIAL GEARS & GEARBOX MANUFACTURERS 18
Slide 20: Awards and Recognition
Awards and Recognition 2nd Consecutive Year in a row 19
Slide 21: ESG Vision
ESG Vision
Slide 22: Sustainable towards Environment
Sustainable towards Environment 70% Energy from Renewal ~90% Lighting converted into 60% Green Campus Sources LED • Wind Power – 14MW • Solar Power – 5 MW 40% reduction in using wood STP to reuse sewage water Advance Electric powered by replacing to Nail-less equipment geared towards Packaging green
Slide 23: 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 24: 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 23
Slide 25: Building Strong Workforce with Care
Building Strong Workforce with Care Sustained Workforce Leadership Development Program Celebrations ❖ Celebrate events for employees' ❖ Leadership Development program under “Gurukul” achievements Project ❖ Celebrate various occasions & Prize ❖ 10+ Years average service period of an employee ❖ Initia
Slide 26: Q3 & 9M FY24 Financial Highlights
Q3 & 9M FY24 FINANCIAL HIGHLIGHTS
Slide 27: 9M FY24 Key Highlights
9M FY24 Key Highlights Development on Overseas OEM Business: 1 ❖ Signed-off Ten OEM Business in overseas market. Commercial production expected to start from FY25 Arbitration awards: ❖ As of December 2023, we have successfully realized Rs. 37.2 Crs from the arbitration award, out of the total 2 awar
Slide 28: Strong Consolidated Quarterly & Nine Monthly Performance
Strong Consolidated Quarterly & Nine Monthly Performance Revenue (Rs Crs.) EBITDA (Rs Crs.) EBITDA Margin (%) +24.2% +37.8% +265 bps +240 bps 1,373 339 25.4% 24.7% 22.8% 22.3% 1,105 246 +21.8% +36.0% 474 120 389 89 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 P
Slide 29: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q 9MFY24 9MFY23 Y-o-Y Revenue from Operations 474 389 21.8% 485 -2.3% 1,373 1,105 24.2% Operating Expenses 251 202 263 731 585 Gross Profit 223 187 18.9% 222 0.4% 642 521 23.3% Gross Profit Margin 47.0% 48
Slide 30: Consolidated Revenue Split
Consolidated Revenue Split Geography Wise (Rs Crs., %) Segment Wise (Rs Crs., %) Q3FY23 Q3FY24 Q3FY23 Q3FY24 60 65 115 128 (15%) (14%) (30%) (27%) 274 346 (70%) (73%) 329 409 (85%) (86%) 9MFY23 9MFY24 9MFY23 9MFY24 158 181 326 338 (14%) (13%) (30%) (25%) 779 1,034 (70%) (75%) 947 1,192 (86%) (87%) D
Slide 31: Consolidated Segment Wise Performance
Consolidated Segment Wise Performance Revenue (Rs Crs.) EBIT (Rs Crs.) Margins (%) 22.9 27.2 22.2 26.0 +47.5% +25.9% 310 1,192 Gear 947 +47.9% 210 +24.3% 111 409 75 329 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Revenue (Rs Crs.) EBIT (Rs Crs.) Margins (%) 14.6 18.5 13.4 20.6 +14.3% +76
Slide 32: Consolidated Order Book
Consolidated Order Book Order Intake (Rs Crs.) Open Order as on 31st Dec’23 (Rs Crs.) +19.8% +9.9% 1,438 791 720 1,200 572 1,189 +45.0% 563 1,023 525 362 368 279 219 249 157 157 177 83 Q3FY23 Q3FY24 9MFY23 9MFY24 9MFY23 9MFY24 Gear MHE Key Highlights ❖ Gear Division: The order intake for 9MFY24 stoo
Slide 33: Historical Financials
Historical Financials
Slide 34: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Revenue (Rs Crs.) EBITDA (Rs Crs.) EBITDA Margin (%) +700 bps +21.0% 1,530 339 339 24.7% 1,373 +35.2% 22.2% 1,212 20.3% 1,044 246 17.7% 185 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 PAT (Rs Crs.) PAT Margin (%) +1280 bps 252 18.4%
Slide 35: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Profit and Loss (Rs. Crs.) FY23 FY22 FY21 Revenue from Operations 1,530 1,212 1,044 Operating Expenses 836 661 562 Gross Profit 694 551 482 Gross Profit Margin 45.4% 45.4% 46.2% Employee Cost 150 128 118 Other Expenses 205 176 179 EBITDA 339 246 185 EB
Slide 36: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Assets (Rs Crs.) Mar-23 Mar-22 Mar-21 Equity and Liabilities (Rs Crs.) Mar-23 Mar-22 Mar-21 ASSETS EQUITY AND LIABILITIES Non-current assets EQUITY Property, Plant and Equipment 527 523 548 Capital work-in-progress 0 1 0 Equity Share Capital 22 22 22 Right to us
Slide 37: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Particulars (Rs Crs.) FY23 FY22 FY21 Profit before Tax 300 171 81 Adjustment for Non-Operating Items 50 106 148 Operating Profit before Working Capital Changes 349 277 229 Changes in Working Capital 27 -22 18 Cash Generated from Operations 376 254 248 Less
Slide 38: Thank You
Thank You Company: ELCON 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 / arj
Elecon Engineering Company — Q3 FY24 Earnings Presentation on 6ix