Asia’s leading industrial gear manufacturer plunges above 16 percent following a nearly 1 percent year-on-year decrease in net profit for Q2 FY25.
Share price variations:
With a market capitalization of Rs. 14,069.88 crores, Elecon Engineering Company Ltd. made an intraday low of Rs. 621.00 representing a 16.17 percent decrease from its previous closing price of Rs. 721.45 per share.
Reason for the Fall:
According to exchange filings, Elecon Engineering Company Ltd. reported a 0.96 percent year-on-year decrease in net profit to Rs 87.72 crore, in Q2FY25 from Rs 88.57 crore in Q2FY24. On a quarter-on-quarter basis, net profit surged by 16.37 percent, rising from Rs. 73.36 crore in Q1 FY25.
Revenue from operations grew by 4.43 percent year-on-year to Rs. 519.53 crore, compared to Rs. 497.45 crore in the same period last year. Sequentially, revenue increased by 27.71 percent from Rs. 406.79 crore in Q1 FY25.
For the first half of FY25, revenue rose by 0.65 percent to Rs. 926.32 crores, up from Rs. 920.28 crores in H1 FY24, while net profit showed a decrease of 0.27 percent, reaching Rs. 161.08 crores compared to Rs. 161.53 crores in the previous year.
As of Q2FY25, the company generated around 78.34 percent of its revenue from the Gear division and 21.65 percent from the Material Handling Equipment (MHE) division. The Gear division saw a 5.5 percent year-on-year decline, with revenue dropping to Rs. 398 crores from Rs. 423 crores. In contrast, the MHE division achieved substantial growth, with a 77.8 percent year-on-year increase, rising to Rs. 110 crores from Rs. 62 crores.
The company also declared an interim dividend of Rs. 0.50 per equity share with a face value of Rs. 1 each.
About the company:
Incorporated in 1960 Elecon Engineering Company Ltd is Asia’s largest Industrial Gearbox Manufacturer, with a global footprint across Asia, the Middle East, the USA, the UK, and other parts of Europe and also in Africa.
The company operates four manufacturing and assembly centers, exporting its products to over 85 countries. It has a robust distribution network with more than 100 distributors and dealers overseas. As of FY24, approximately 24% of its revenue is generated from exports.
As of September Ace investor holds 28.99 lakh shares of Elecon Engineering Company Ltd valued at Rs. 209.22 crores.
Written By Joseph Pv
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