Results - Analysis
Strong allround show
Consolidated net sales (including other operating income) of Elecon Engineering Company for the quarter ended Mar 2025 has increased 41.26% to Rs 797.57 crore. Operating profit margin has jumped from 23.97% to 24.49%, leading to 44.30% rise in operating profit to Rs 195.33 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 41.98% to 46.58%. Employee cost decreased from 10.14% to 9.06%. Other expenses fell from 23.14% to 18.06%. Other direct service cost fell from 7.37% to 5.82%.
Other income rose 42.56% to Rs 18.59 crore. PBIDT rose 44.15% to Rs 213.92 crore. Provision for interest rose 148.78% to Rs 5.1 crore. PBDT rose 42.69% to Rs 208.82 crore. Provision for depreciation rose 53.10% to Rs 19.26 crore. Profit before tax grew 41.71% to Rs 189.56 crore. Share of profit/loss was 0.40% higher at Rs 2.48 crore. Provision for tax was expense of Rs 45.56 crore, compared to Rs 32.59 crore. Effective tax rate was 23.72% compared to 23.92%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 41.32% to Rs 146.48 crore.
- Sales of Material Handling Equipment segment has gone up 89.74% to Rs 213.06 crore (accounting for 26.29% of total sales). Sales of Transmission Equipment segment has gone up 32.08% to Rs 597.46 crore (accounting for 73.71% of total sales).
- Profit before interest, tax and other unallocable items (PBIT) has jumped 50.07% to Rs 212.40 crore. PBIT of Material Handling Equipment segment rose 151.92% to Rs 66.13 crore (accounting for 31.13% of total PBIT). PBIT of Transmission Equipment segment rose 26.88% to Rs 146.27 crore (accounting for 68.87% of total PBIT).
- PBIT margin of Material Handling Equipment segment rose from 23.38% to 31.04%. PBIT margin of Transmission Equipment segment fell from 25.49% to 24.48%. Overall PBIT margin rose from 25.07% to 26.21%.
Full year results analysis.
Net sales (including other operating income) of Elecon Engineering Company has increased 14.94% to Rs 2226.96 crore. Sales of Material Handling Equipment segment has gone up 68.43% to Rs 493.49 crore (accounting for 21.87% of total sales). Sales of Transmission Equipment segment has gone up 7.18% to Rs 1,762.57 crore (accounting for 78.13% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 18.62% to Rs 579.82 crore. PBIT of Material Handling Equipment segment rose 111.92% to Rs 144.89 crore (accounting for 24.99% of total PBIT). PBIT of Transmission Equipment segment rose 3.45% to Rs 434.93 crore (accounting for 75.01% of total PBIT).
PBIT margin of Material Handling Equipment segment rose from 23.34% to 29.36%. PBIT margin of Transmission Equipment segment fell from 25.57% to 24.68%. Overall PBIT margin rose from 25.23% to 25.70%.
Operating profit margin has declined from 24.49% to 24.36%, leading to 14.36% rise in operating profit to Rs 542.59 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 43.86% to 45.88%. Employee cost decreased from 9.84% to 9.42%. Other expenses fell from 21.53% to 20.19%. Other direct service cost fell from 8.15% to 7.16%.Other income rose 36.29% to Rs 60.05 crore. PBIDT rose 16.22% to Rs 602.64 crore. Provision for interest rose 50.93% to Rs 13.04 crore. Loan funds rose to Rs 181.23 crore as of 31 March 2025 from Rs 70.46 crore as of 31 March 2024. Inventories rose to Rs 242.96 crore as of 31 March 2025 from Rs 229.74 crore as of 31 March 2024. Sundry debtors were higher at Rs 613.87 crore as of 31 March 2025 compared to Rs 445.10 crore as of 31 March 2024. Cash and bank balance rose to Rs 358.44 crore as of 31 March 2025 from Rs 263.31 crore as of 31 March 2024. Investments rose to Rs 495.80 crore as of 31 March 2025 from Rs 286.41 crore as of 31 March 2024 .
PBDT rose 15.63% to Rs 589.6 crore. Provision for depreciation rose 19.32% to Rs 60.76 crore. Fixed assets increased to Rs 818.85 crore as of 31 March 2025 from Rs 667.69 crore as of 31 March 2024. Intangible assets stood at Rs 101.77 crore.
Profit before tax grew 15.22% to Rs 528.84 crore. Share of profit/loss was 26.83% higher at Rs 8.13 crore. Provision for tax was expense of Rs 121.87 crore, compared to Rs 109.8 crore. Effective tax rate was 22.70% compared to 23.59%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 16.74% to Rs 415.10 crore.
Management Comments :
Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Company Ltd. Said, 'For Q4FY25, Elecon reported consolidated revenue of ? 798 crores, reflecting a robust growth of 41.3% on a Y-o-Y basis. The quarterly EBITDA stood at ? 195 crores, with EBITDA margin at 24.5%. Profit after Tax (PAT) for Q4FY25 was ? 146 crores, with PAT margin at 18.4%. For FY25, the consolidated revenue stood at ? 2,227 crores, clocking 14.9% Y-o-Y growth, in line with our annual guidance of Rs. 2,225 crs. The annual EBITDA stood at ? 543 crores, with EBITDA margin at 24.4%. PAT for FY25 was ? 415 crores, with PAT margin at 18.6%. Elecon continues to maintain its leadership position in the Indian market for both Industrial Gear Solutions and Material Handling Equipment. Our competitive edge is driven by advanced manufacturing capabilities, a comprehensive portfolio of high-quality products, and the ability to deliver custom-engineered solutions with optimized lead times, ensuring consistent and quality products for our diversified customers. In Q4FY25, the Material Handling Equipment (MHE) division saw a remarkable 98.2% year-on-year revenue growth. EBIT margin stood at 29.6% with an improvement of ~820 bps Y-o-Y. We expect good momentum in this segment in coming years. Our Gear division, in Q4FY25, also experienced a considerable rebound with growth of 28.9% in revenue and EBIT margin at 24.5%. This resurgence has been driven by strong demand in both domestic and international markets. Domestically, demand has picked up meaningfully, particularly from the steel, power, and cement sectors. Overseas business remains healthy, with solid traction seen across international markets. The enquiry levels remain robust, and we are seeing healthy demand internationally. We are steadily advancing towards our strategic objective of generating 50% of our consolidated revenue from international markets by FY30. Strengthening relationships with global OEMs and sustained brand-building initiatives continue to reinforce our confidence in achieving this milestone. In FY25, our international business revenue stood at Rs. 517 crores, contributing approximately 23% of the consolidated revenue and reflected consistent progress in this direction. Our growth strategy is supported by strategic alliances with international partners, ongoing investments in R&D and product innovation, and a focused push within the high-growth MHE division. These efforts collectively position us to outperform broader industry trends and accelerate our domestic & global footprint. Our priority is to attain sustainable profitable growth, creating long-term value for all our stakeholders.'
Others
The Board of Directors has recommended the Final Dividend of Rs. 1.50/- (i.e. 150%) per Equity Share of Re. 1.00/- each for the financial year 2024-25
Equity capital stood at Rs 22.44 crore as of 31 March 2025 to Rs 22.44 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.
Promoters' stake was 59.27% as of 31 March 2025 ,compared to 59.27% as of 31 March 2024 .
Cash flow from operating activities increased to Rs 432.30 crore for year ended March 2025 from Rs 364.81 crore for year ended March 2024. Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 66.00 crore, compared to Rs 31.49 crore during the year ended March 2024.
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