The share price of this firm engaged in the business of manufacturing and selling power transmission equipment tumbled by 15 percent to an intraday low of Rs 1,113.00 apiece after its net profits dropped by 30 percent for the quarter ended 31st June 2025.
Share price movement: With a market capitalization of Rs 14,370.57 crores, the shares of Elecon Engineering Company Limited fell around 2 percent at 12:35 pm trading at Rs 1,282 apiece on Thursday’s afternoon market hours. The shares of this company generated an overall return of 70 percent over the past year and 21 percent over the past 6 months.
Results: Based on the Consolidated financials of Elecon Engineering Company Limited on a QoQ basis, the revenue from operations decreased by 30 percent from Rs 564.62 crores in Q4FY24 to Rs 392.36 crores in Q1FY25. The net profits of the firm tumbled from Rs 103.6 crores to Rs 73.36 crores for the same period, also demonstrating a 30 percent fall.
Analyzing the consolidated financials of Elecon Engineering Company Limited on a YoY basis, the total revenue from operations decreased by 5 percent from Rs 414.34 crores in Q1FY24 to Rs 392.36 crores in Q1FY25. The net profits increased by 0.54 percent from Rs 72.96 crores to Rs 73.36 crores in the same time frame.
The EBITDA of Elecon Limited tumbled by 7.6 percent from Rs 100 crores in Q1FY24 to Rs 92 crores in Q1FY25.
Under the Industrial Gear division of Elecon Limited, revenue for Q1 FY25 was Rs 334 crores, down from Rs 361 crores in Q1 FY24, marking a 7.4 percent decrease. This decline was due to lower order inflows due to the general elections in Q1 FY25.
In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 22.16 percent and a return on capital employed (ROCE) of 27.11 percent. It has also reported a net profit margin of 18.02 percent for the same period.
Client base: Elecon Limited caters to a vast number of Marque clients such as Adani group, BHEL, TATA steel, L&T, British steel, Ultra tech cement, etc.
Revenue split: In Q1 FY25, 34 percent of Elecon Limited’s revenue came from overseas markets, while 66 percent was generated from the domestic market.
Orderbook: The consolidated order book of Elecon Limited increased by 10 percent from Rs 497 crores in Q1 FY24 to Rs 545 crores in Q1 FY25. As of Q1 FY25, Rs 396 crores of the orders are from the Gear segment, while Rs 149 crores are from the Material Handling Equipment (MHE) segment.
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According to the latest shareholding pattern, Ace Investor Vijay Kedia who entered the stock in September 2021 currently holds approximately 14.99 lakh equity shares equivalent to a 1.34 percent stake in this company. The current holding value of his investment amounts to Rs 183.3 crores.
Shareholding Pattern: As of June 2024 Elecon Engineering Company’s shareholding pattern stood at 59.28 percent for promoters, 29.07 percent for the public, 9.10 percent for foreign institutional investors, and 2.55 percent for domestic institutional investors.
About the Company: Incorporated in 1960, Elecon Engineering Company Limited manufactures and sells power transmission and material handling equipment in India and internationally. In addition, to this, it engages in the steel and non-ferrous foundry business.
Written By Zahal
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