- Sales of Material Handling Equipment segment has gone up 189.06% to Rs 60.05 crore (accounting for 15.44% of total sales). Sales of Transmission Equipment segment has gone up 31.46% to Rs 328.77 crore (accounting for 84.56% of total sales).
- Profit before interest, tax and other unallocable items (PBIT) has jumped 96.50% to Rs 84.03 crore. PBIT of Material Handling Equipment reported profit of Rs 8.76 crore compared to loss of Rs 7.57 crore. PBIT of Transmission Equipment segment rose 49.54% to Rs 75.27 crore (accounting for 89.58% of total PBIT).
- PBIT margin of Material Handling Equipment segment rose from negative 36.44% to 14.59%. PBIT margin of Transmission Equipment segment rose from 20.12% to 22.89%. Overall PBIT margin rose from 15.79% to 21.61%.
Nine month performance
Consolidated net sales (including other operating income) of Elecon Engineering Company has increased 26.47% to Rs 1105.14 crore. Sales of Material Handling Equipment segment has gone up 60.23% to Rs 158.16 crore (accounting for 14.31% of total sales). Sales of Transmission Equipment segment has gone up 22.17% to Rs 946.97 crore (accounting for 85.69% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 55.52% to Rs 231.32 crore. PBIT of Material Handling Equipment reported profit of Rs 21.15 crore compared to loss of Rs 1.39 crore. PBIT of Transmission Equipment segment rose 40.00% to Rs 210.17 crore (accounting for 90.86% of total PBIT).
PBIT margin of Material Handling Equipment segment rose from negative 1.41% to 13.37%. PBIT margin of Transmission Equipment segment rose from 19.37% to 22.19%. Overall PBIT margin rose from 17.02% to 20.93%.
Operating profit margin has jumped from 20.36% to 22.26%, leading to 38.30% rise in operating profit to Rs 246.03 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 49.09% to 46.18%. Employee cost increased from 10.31% to 10.51%. Other expenses rose from 21.02% to 21.47%. Other direct service cost rose from 6.73% to 7.62%.
Other income rose 160.64% to Rs 12.25 crore. PBIDT rose 41.45% to Rs 258.28 crore. Provision for interest fell 70.95% to Rs 8.72 crore.
PBDT rose 63.56% to Rs 249.56 crore. Provision for depreciation fell 3.33% to Rs 35.44 crore.
Profit before tax grew 84.71% to Rs 214.12 crore. Share of profit/loss was 98.77% higher at Rs 1.61 crore. Provision for tax was expense of Rs 46.18 crore, compared to Rs 22.54 crore. Effective tax rate was 21.41% compared to 19.31%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 80.01% to Rs 169.55 crore.
Order book
Order intake in 9mFY23 was Rs 1200 crore [Gears Rs 1023 ; MHE Rs 177 crore] and the order backlog as end of Dec 2022 stood at Rs 720 crore [Gear Rs 563 crore; MHE Rs 157 crore].
Other developments
Net Cash Surplus
December 31, 2022
Rs. 66 Crore.
Outstanding Retention as end of December 31, 2022 was Rs. 66 Crore.
Promoters’ stake was 59.29% as of 31 December 2022 ,compared to 59.21% as of 31 December 2021 .