Elecon Engineering company shares soar 11% post Q1 results

Shares of Elecon Engineering Company surged over 11 percent on July 11, after the company announced its first quarterly results for FY24.

At 1:02 pm, the stock was trading at Rs 706.20 on the National Stock Exchange, up 11.51 percent from the previous close.

The manufacturer of Material handling equipment and incraft carriers posted a 72.6 percent jump in its Q1 net profit, reaching Rs 73 crore compared to Rs 42 crore in the previous year. Additionally, the revenue increased by 26.4 percent, amounting to Rs 414.3 crore, as opposed to Rs 327.7 crore in the previous year.

EBITDA rose by 54 percent, to Rs 100 crore, while the EBITDA margins experienced a 440 bps jump in the first quarter of FY24, reaching 24.1 percent. EBITDA stands for the earnings before interest, tax, depreciation, and amortization.

The other income of the company has doubled, while the interest expense halved. Furthermore, the cost of raw materials consumed grew by 35 percent year on year.

Regarding segmental revenues, the transmission equipment segment witnessed a 26 percent increase in revenues, amounting to Rs 361 crore. Similarly, the material handling equipment segment revenues also grew by 26 percent, reaching Rs 54 crore.

The order intake in the first quarter stood at Rs 497 crore, marking a 22 percent increase, and the order book currently stands at Rs 793 crore. The company maintains its revenue guidance of Rs 2,000 crore for FY24, with an EBITDA margin target of 22 percent. Shares of Elecon Engineering Company surged over 11 percent on July 11th after the company announced its first quarterly results for FY24. The manufacturer of Material Handling Equipment and Incraft carriers posted a 72.6 percent jump in its Q1 net profit, reaching Rs 73 crore compared to Rs 42 crore in the previous year. Additionally, the revenue increased by 26.4 percent, amounting to Rs 414.3 crore, as opposed to Rs 327.7 crore in the previous year. The company maintains its revenue guidance of Rs 2,000 crore for FY24 with an EBITDA margin of 22 percent.

The earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 54 percent, reaching Rs 100 crore, while the EBITDA margins experienced a 440 bps jump in the first quarter of FY24, reaching 24.1 percent. The company’s other income doubled, while the interest expense halved. Furthermore, the cost of raw materials consumed grew by 35 percent year on year.

In terms of segmental revenues, the transmission equipment segment observed a 26 percent increase, to Rs 361 crore. Similarly, the material handling equipment segment revenues also climbed by 26 percent, to Rs 54 crore.

During the first quarter, the company’s order intake stood at Rs 497 crore, a 22 percent increase, and the order book stood at Rs 793 crore.

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