Elecon Engineering Company (505700) Q1 24/25 earnings summary

Executive summary

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2024 were approved and released, with statutory auditors providing an unmodified review conclusion.

• Consolidated revenue from operations for Q1FY25 was ₹392 Cr, down 5.3% year-over-year; EBITDA margin was 23.5%, and PAT margin improved to 18.7%.

• Gear division revenue declined due to weak order inflow amid general elections, while MHE division saw revenue and margin growth.

Financial highlights

• Standalone revenue from operations for Q1FY25 was ₹29,342 lakhs, down from ₹32,438 lakhs in Q1FY24.

• Standalone net profit for Q1FY25 was ₹6,090 lakhs, compared to ₹5,510 lakhs in Q1FY24.

• Consolidated net profit for Q1FY25 was ₹7,336 lakhs, up slightly from ₹7,296 lakhs in Q1FY24.

• Standalone EPS for Q1FY25 was ₹4.91; consolidated EPS was ₹6.54.

• EBITDA for Q1FY25 was ₹92 Cr, up from ₹73 Cr in Q1FY24.

Outlook and guidance

• Management remains optimistic about new order wins and expects demand to recover in the remaining nine months of FY25, especially in the Gear division.

• International business is on track to contribute 50% of revenue by FY30, with 34% achieved in Q1FY25.

• Continued focus on aftermarket and product supply in MHE segment is expected to drive further profitability.