Capitaline

Operating profit margin has jumped from 22.77% to 25.42%, leading to 35.99% rise in operating profit to Rs 120.39 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.18% to 44.53%. Employee cost decreased from 10.22% to 9.14%. Other expenses fell from 22.01% to 20.99%. Other direct service cost rose from 7.06% to 8.62%.

Other income rose 185.14% to Rs 9.98 crore. PBIDT rose 41.66% to Rs 130.37 crore. Provision for interest fell 19.02% to Rs 1.49 crore.

PBDT rose 42.90% to Rs 128.88 crore. Provision for depreciation rose 4.38% to Rs 12.64 crore.

Profit before tax grew 48.87% to Rs 116.24 crore. Share of profit/loss was 52.44% higher at Rs 1.25 crore. Provision for tax was expense of Rs 27.09 crore, compared to Rs 16.16 crore. Effective tax rate was 23.06% compared to 20.48%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 44.09% to Rs 90.40 crore. Sales of Material Handling Equipment segment has gone up 8.29% to Rs 65.03 crore (accounting for 13.73% of total sales). Sales of Transmission Equipment segment has gone up 24.26% to Rs 408.53 crore (accounting for 86.27% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 46.80% to Rs 123.35 crore. PBIT of Material Handling Equipment segment rose 37.45% to Rs 12.04 crore (accounting for 9.76% of total PBIT). PBIT of Transmission Equipment segment rose 47.89% to Rs 111.31 crore (accounting for 90.24% of total PBIT).

PBIT margin of Material Handling Equipment segment rose from 14.59% to 18.51%. PBIT margin of Transmission Equipment segment rose from 22.89% to 27.25%. Overall PBIT margin rose from 21.61% to 26.05%.

For year-to-date (YTD) results analysis.

Consolidated net sales (including other operating income) of Elecon Engineering Company for 9mFY24 has increased 24.22% to Rs 1372.8 crore. Sales of Material Handling Equipment segment has gone up 14.25% to Rs 180.70 crore (accounting for 13.16% of total sales). Sales of Transmission Equipment segment has gone up 25.89% to Rs 1,192.10 crore (accounting for 86.84% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 50.13% to Rs 347.27 crore. PBIT of Material Handling Equipment segment rose 76.38% to Rs 37.30 crore (accounting for 10.74% of total PBIT). PBIT of Transmission Equipment segment rose 47.49% to Rs 309.97 crore (accounting for 89.26% of total PBIT).

PBIT margin of Material Handling Equipment segment rose from 13.37% to 20.64%. PBIT margin of Transmission Equipment segment rose from 22.19% to 26.00%. Overall PBIT margin rose from 20.93% to 25.30%.

Operating profit margin has jumped from 22.26% to 24.70%, leading to 37.83% rise in operating profit to Rs 339.11 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.18% to 44.62%. Employee cost decreased from 10.51% to 9.72%. Other expenses fell from 21.47% to 20.88%. Other direct service cost rose from 7.62% to 8.46%.

Other income rose 153.22% to Rs 31.02 crore. PBIDT rose 43.31% to Rs 370.13 crore. Provision for interest fell 24.43% to Rs 6.59 crore.

PBDT rose 45.67% to Rs 363.54 crore. Provision for depreciation rose 8.18% to Rs 38.34 crore.

Profit before tax grew 51.88% to Rs 325.20 crore. Share of profit/loss was 144.72% higher at Rs 3.94 crore. Provision for tax was expense of Rs 77.21 crore, compared to Rs 46.18 crore. Effective tax rate was 23.46% compared to 21.41%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 48.59% to Rs 251.93 crore.

Other developments

Development on Overseas OEM Business: Signed-off Ten OEM Business in overseas market. Commercial production expected to start from FY25

Arbitration awards: o As of December 2023, we have successfully realized Rs. 37.2 Crs from the arbitration award, out of the total award amount of Rs. 63.0 Crs. Negotiations for the remaining amount are currently in progress. Fresh arbitration proceedings initiated having the value of Rs. 31.0 Crs during Q1FY24, optimistic of favorable outcomes

Capex incurred Rs 26.0 Crs upto 9MFY24 out of the Rs 70.0 Crs planned for FY24

MHE Division Order Wins: Steel Sector: Received orders for supply of equipment of Rs 134.2 Crs. from a single customer

Cement Sector: Received an order for supply of equipment from a single customer amounting to Rs 39.0 Crs

Promoters’ stake was 59.29% as of 31 December 2023 ,compared to 59.29% as of 31 December 2022 .

Quarter ended

Year to Date

Year ended

Particulars

202312

202212

Var.(%)

202312

202212

Var.(%)

202303

202203

Var.(%)

Net Sales (including other operating income)

473.56

388.82

21.79

1,372.80

1,105.14

24.22

1,529.68

1,211.95

26.22

OPM (%)

25.42

22.77

265 bps

24.70

22.26

244 bps

22.15

20.33

182 bps

120.39

88.53

35.99

339.11

246.03

37.83

338.88

246.44

37.51

Other Inc.

9.98

3.50

185.14

31.02

12.25

153.22

20.06

8.56

134.35

PBIDT

130.37

92.03

41.66

370.13

258.28

43.31

358.94

255.00

40.76

Interest

1.49

1.84

-19.02

6.59

8.72

-24.43

13.31

37.34

-64.35

PBDT

128.88

90.19

42.90

363.54

249.56

45.67

345.63

217.66

58.79

Depreciation

12.64

12.11

4.38

38.34

35.44

8.18

49.04

48.58

0.95

PBT

116.24

78.08

48.87

325.2

214.12

51.88

296.59

169.08

75.41

Share of Profit/(Loss) from Associates

1.25

0.82

52.44

3.94

1.61

144.72

3.25

1.44

125.69

PBT before EO

117.49

78.9

48.91

329.14

215.73

52.57

299.84

170.52

75.84

EO Income

PBT after EO

117.49

78.9

48.91

329.14

215.73

52.57

299.84

170.52

75.84

Taxation

27.09

16.16

67.64

77.21

46.18

67.19

62.33

30.03

107.56

PAT

90.4

62.74

44.09

251.93

169.55

48.59

237.51

140.49

69.06

Minority Interest (MI)

Net profit

90.4

62.74

44.09

251.93

169.55

48.59

237.51

140.49

69.06

P/(L) from discontinued operations net of tax

Net profit after discontinued operations

90.4

62.74

44.09

251.93

169.55

48.59

237.51

140.49

69.06

EPS (Rs)*

8.06

5.59

44.06

22.45

15.11

48.59

21.17

12.52

69.06

* EPS is on current equity of Rs 22.44 crore, Face value of Rs 2, Excluding extraordinary items.

# EPS is not annualised

bps : Basis points

EO : Extraordinary items

Figures in Rs crore

Source: Capitaline Corporate Database

Quarter ended

Year to Date

Year ended

% of (Total)

202312

202212

Var.(%)

% of (Total)

202312

202212

Var.(%)

% of (Total)

202303

202203

Var.(%)

Sales

Material Handling Equipment

13.73

65.03

60.05

8.29

13.16

180.70

158.16

14.25

14.14

216.25

136.25

58.72

Transmission Equipment

86.27

408.53

328.77

24.26

86.84

1,192.10

946.97

25.89

85.86

1,313.43

1,075.70

22.10

Total Reported Sales

100.00

473.56

388.82

21.79

100.00

1,372.80

1,105.14

24.22

100.00

1,529.68

1,211.95

26.22

Less: Inter segment revenues

0.00

Net Sales

100.00

473.56

388.82

21.79

100.00

1,372.80

1,105.14

24.22

100.00

1,529.68

1,211.95

26.22

PBIT

Material Handling Equipment

9.76

12.04

8.76

37.45

10.74

37.30

21.15

76.38

10.07

32.30

-0.88

Transmission Equipment

90.24

111.31

75.27

47.89

89.26

309.97

210.17

47.49

89.93

288.41

211.30

36.49

Total PBIT

100.00

123.35

84.03

46.80

100.00

347.27

231.32

50.13

100.00

320.71

210.42

52.41

Less : Interest

1.49

1.84

-19.04

6.59

8.72

-24.39

13.31

37.34

-64.36

Add: Other un-allcoable

-4.37

-3.28

-33.14

-11.54

-6.87

-68.03

-7.56

-2.55

-196.27

PBIT Margin(%)

Material Handling Equipment

18.51

14.59

392.82

20.64

13.37

727.13

14.94

-0.65

1,558.15

Transmission Equipment

27.25

22.89

435.33

26.00

22.19

380.83

21.96

19.64

231.56

PBT

100.00

117.49

78.90

48.90

100.00

329.14

215.73

52.57

100.00

299.84

170.53

75.83