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Elecon Engineering hosted a conference call on May 31, 2018. In the conference call the company was represented by Prashant C. Amin, Executive Director and Kamlesh Shah, CFO.
Key takeaways of the call
Order Intake in FY18 was Rs 555.02 crore for gears division and Rs 286 crore for Material Handling. Order book as end of March 31, 2018 stood at Rs 767. 2 crore for gears division and Rs 469.6 crore for Material Handling division.
The company expects the Gears division to register a revenue growth of 15% for FY19 with a target EBITDA margin of 20%. MHE division expects to clock a revenues of Rs 400 crore in FY19 Expect 10% growth in EU and UK subsidiary this year. The company expects MHE division to break even/profitable at PBT level in current fiscal. Overall the company expects a revenue growth of 10-15% for FY19.
Export sale for FY18 was Rs 69 crore. And the company expects export for FY19 to be better than FY18.
Expects to complete loss making MHE projects by June 2018.
Current debt is Rs 496 crore with cost of borrowing stand at about 11.5-12%. Capital Raising is primarily for debt reduction.
During the year, the overseas business under Benzlers and Radicon registered revenue of Rs 277.8 crores with EBITDA of Rs 5.90 crore.
Europe is showing some signs of recovery and the company's persistence for 7-8 years start showing results.
Capacity utilization on overall basis stands at about 50% currently.
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