Elecon Engineering Company Limited — PPTs, 22-01-2025: Investor Presentation

**Financial Highlights:** Elecon Engineering reported consolidated revenues of ₹529 crore, a 12% increase year-on-year, while EBITDA stood at ₹143 crore, achieving a margin of 27%. Profit After Tax (PAT) for Q3 reached ₹108 crore with PAT margins at 20.3%. The MHE division showcased impressive growth with a 72% revenue increase compared to last year, and margins improved significantly to 31.6%. The Gear division, however, faced challenges, recording a slight revenue rise of 2.1% due to delays in domestic order inflows.

**Strategic Initiatives and Growth Drivers:** The company is focusing on enhancing its gear segment through ongoing product improvements and strategic alliances. There are efforts to expand market share and increase revenue from international operations, aiming for 50% by FY30, which currently accounts for 27% of total revenue.

**Business Developments:** Elecon is actively pursuing new OEM contracts to bolster revenues, particularly in the MHE sector. The company’s historical performance reflects a strong upward trajectory, further supported by strategic investments in R&D and product development.

**Market Position and Competitive Advantage:** Elecon's leadership in gear solutions and material handling equipment positions it favorably within a highly fragmented market. Continuous efforts in environmental sustainability and technological innovation further enhance its competitive edge.

**Investor Implications:** The company's strong performance, especially in MHE, signals a positive outlook for future growth despite headwinds in the Gear division. The strategic focus on international markets and innovative product offerings are key areas for potential investor interest.