This S&P BSE Smallcap Stock Jumped 4.8% on Friday within the first hour of markets opening after an announcement regarding its receipt of a new order.
The company has a market cap of Rs. 9,032 crore and is 18% away from its 52 week high, trading at Rs. 805.00 versus Rs. 787.90 at previous close. Ace investor Vijay Kedia holds 1.6% of the company.
In a filing dated 20th October 2023, Elecon Engineering Company Ltd (“Elecon”) announced that the Company has received an order of Rs. 51.41 Crores (excluding GST) from Arcelormittal Nippon Steel India Limited (AMNS), Hazira,, Gujarat, India for supply and supervision of Pipe Conveyor System at its Hazira Plant, Gujarat.
The order involves Design, Engineering, Manufacturing, Supply, transportation to site and Supervision of erection, testing and commissioning of One no. Pipe Conveyor and is to be executed in 12 months.
Further, the company also announced the results for Q2 FY24. The company reported 24.8% YoY growth in revenue to Rs. 485 crore. Net Profits grew 89% YoY to Rs. 37.3 crore. EBITDA witnessed a growth of 28.2% YoY to Rs. 109 crore.
Net Profit Margin stands at 18.3%, up 170 bps YoY. Order book for the company stands at Rs. 738 crore with Rs. 416 crore intake in Q2 FY24.
Further, the company also announced the results for H1 FY24. The company reported 25.5% YoY growth in revenue to Rs. 899 crore. Net Profits grew 51.2% YoY to Rs. 162 crore. EBITDA witnessed a growth of 38.9% YoY to Rs. 219 crore. Net Profit Margin stands at 18%, up 310 bps YoY.
Elecon also saw an improvement in Credit Ratings which are now LT – [ICRA] AA- (Stable); ST: [ICRA] A1+ while Previous Credit Ratings were LT- [ICRA] A+ (Stable); ST: [ICRA] A1). The company had given a revenue guidance of ~Rs. 2,000 Crs for FY24
Elecon manufactures and sells power transmission and material handling equipment in India and internationally.
Written by Sandeep N
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