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Elecon Engg hits record high on strong Q4 outcome, board OKs 1:2 stock split

19-Apr-24 15:07 Hrs IST

Profit before tax climbed 62.01% to Rs 136.24 crore in Q4 FY24 as against Rs 84.09 crore recorded in the corresponding quarter last year.

During the quarter, EBITDA grew 45.8% year on year (YoY) to Rs 135 crore while EBITDA margin improved by 210 basis points on YoY basis to 24%.

The company?s revenue from transmission equipment was at Rs 452.33 crore (up 23.43% YoY) while material handling equipment was at Rs 112.29 crore (up 93.33% YoY) during the period under review.

Prayasvin B. Patel, chairman & managing director of Elecon Engineering Compay, said, ?We are delighted to share that Elecon has delivered its highest ever revenues of Rs 1,937 crore up by 27% Y-o-Y and highest ever PAT of Rs 356 crore indicating a growth of 50% Y-o-Y for FY24 which is a testament to our commitment to innovation and customer needs. This growth is largely attributable to increased order inflows across industries, increase in wallet share among existing customers & new customer addition. Our performance solidifies our status as the leading domestic player with approximately 39% market share in the industrial gear segment.

Entering FY25 and beyond, we aim to expand our presence in international markets while reinforcing relationships with current OEM partners and forging new alliances. Concurrently, we recognize India?s vast potential and upswing in capex cycle and are committed to retain our leadership position. At Elecon, innovation remains at the core. We continue to invest in research & development for product enhancement and development to deliver best in class products to our customers.?

?Our financial achievements in FY24, from record-breaking revenues to robust EBITDA margins, underscore our resilience and strategic vision. With government capital expenditure and emphasis on infrastructure development fueling growth prospects, our tactical focus on exports coupled with rising order inquiries across various products and sectors positions us favorably to grow faster than the industry,? Patel added.

Meanwhile, the company's board recommended a final dividend of Rs 2 per equity share for the financial year 2023-24.

Additionally, the board has approved a subdivision of one equity share having face value of Rs 2 each into two equity shares of face value of Rs 1 each.

The rationale behind the split is to improve the liquidity of the company?s shares on the stock markets and also to make the same available to small investors.

The sub-division is expected to be completed within 4-6 months.

Elecon Engineering Company is engaged in the design and manufacturing of material handling equipment and industrial gears and also involved in providing erection and commissioning solutions for its products.

The scrip hit an all time high at Rs 1,197.55 in intraday today.