The shares of Asia’s largest industrial gearbox manufacturer gained up to 2 percent after the company received a Letter of Intent for awarding a contract of Rs. 82.78 Crores (excluding GST) from ArcelorMittal Nippon Steel India Limited Gujarat.
With a market capitalization of Rs 11,798.39 crore, the shares of Elecon Engineering Company Ltd were trading at Rs 1,051.55 per share, decreasing around 2.21 percent as compared to the previous closing price of Rs 1,075.35 apiece.
According to the company filing, Elecon Engineering Company Ltd has received a Letter of Intent for awarding a contract of Rs. 82.78 Crores (excluding GST) from ArcelorMittal Nippon Steel India Limited, Surat Gujarat for Manufacturing and supply of Belt Conveyor Mechanical Equipment and Technological Structure for its Hazira Plant.
The company’s revenue increased by 24 percent, from Rs 389 crore in Q2FY23 to Rs 485 crore in Q2FY24. During the same period, net profit also increased by 36 percent, from Rs 65 crore to Rs 89 crore.
The company’s gear business performed well due to high demand from end-user industries. After the fiscal year, the Company’s order book in the Gear business was Rs 1,39,668 lakhs at the consolidated level, with major contributions from end-user sectors such as cement, steel, sugar, power, and others.
The company’s revenue from India climbed by 36 percent from Rs 796.4 crore in FY2021-22 to Rs 1,088.11 crore in FY2022-23, During the same period revenue from outside India increased by 6 percent from Rs 415.53 crore in FY2021-22 to Rs 441.56 crore.
The stock gave a 43.29 percent return in six months and a 170.62 percent return so far this year. If an investor invests Rs 1 lakh in the company, it would be worth Rs 2.70 Lakhs in a year.
Elecon Engineering Company Ltd. is involved in the design and manufacture of Material Handling Equipment and Incraft carriers following the acquisition of the Benzlers-Radicon Group from David Brown Gear Systems.
Written by:- Abhishek Singh
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