Elecon Engineering Company (505700) Q2 24/25 earnings summary

Executive summary

• Board approved unaudited standalone and consolidated results for Q2 and H1FY25, with a declared interim dividend of ₹0.50 per share, record date set for October 28, 2024.

• Q2FY25 consolidated revenue grew 4.8% YoY to ₹508 Cr; H1FY25 revenue was flat at ₹901 Cr.

• EBITDA for Q2FY25 declined 6.4% YoY to ₹112 Cr, with margins at 22.1%; PAT for Q2FY25 was ₹88 Cr, down 1% YoY.

• Gear division revenue declined 5.9% YoY in Q2FY25 due to order delays, while MHE division revenue surged 77.8% YoY.

• Company remains confident of achieving FY25 annual guidance.

Financial highlights

• Standalone Q2FY25 revenue: ₹418.64 Cr, up from ₹293.42 Cr YoY; H1FY25: ₹712.06 Cr.

• Standalone Q2FY25 net profit: ₹66.17 Cr, up from ₹54.75 Cr YoY; H1FY25: ₹120.92 Cr.

• Consolidated Q2FY25 revenue: ₹508.14 Cr; H1FY25: ₹900.50 Cr.

• Consolidated Q2FY25 net profit: ₹87.72 Cr; H1FY25: ₹161.08 Cr.

• Interim dividend of ₹0.50 per share declared.

Outlook and guidance

• Management expects recovery in Gear division in H2FY25 and reiterates confidence in meeting FY25 guidance.

• MHE segment expected to continue strong growth, supported by infrastructure and government capex.

• International business targeted to reach 50% of revenue by FY30; Q2FY25 overseas revenue share at 24%.