Investor Presentation - Q4 & FY23
Investor Presentation - Q4 & FY23
Safe Harbor
Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which
include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate",
"estimate", "intend", "plan", "contemplate", seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will
pursue", and similar expressions of such expressions may constitute "forward-looking statements", These forward looking
statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties include but are not limited to our ability to successfully
implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological
changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company
does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
Strengthening Leadership Position
Coal Pulveriser Gearbox Conveyor Drive Planetary Gearbox Helical Gearbox Rolling Mill Gearbox
Elecon 2.0 – Geared for Growth
Growth Pillars
R&D
01 Unmatched R&D and
Technological Knowhow
Supply to OEM in Foray into New
New Product European market Geography & enhancing
02 Development
03 penetration in existing
geographies
01 Highlights of FY23
FY 23
Growing Revenue With Higher Margin
*Highest Revenue & EBIDTA
Revenue (Rs Cr) in Last 10 Years EBITDA (Rs Cr) and EBITDA Margin (%)
C O N S O L I D AT E D
440
2,000
339*
1,530* FY21-23 CAGR FY21-23 CAGR
246
1,212 35.2%
1,044 21.0% 185
1,500 360
1,197* 281*
FY21-23 CAGR FY21-23 CAGR
893 184
796
22.6% 144 39.7%
23.4% 24.0%
18.1% 20.6%
Growing Higher Margin
*Highest Profit
PBT (Rs Cr) and PBT Margin (%) in Last 10 Years PAT (Rs Cr) and PAT Margin (%)
C O N S O L I D AT E D
300* 237*
188*
246*
Revenue (Rs Cr) EBIT (Rs. Cr) & EBIT Margin (%)
981 235
G E A R
164 166
FY21-23 CAGR FY21-23 CAGR
757 24.9% 24.0%
22.0%
657 22.2% 19.9%
32
216
FY21-23 CAGR -0.6% 14.9%
M H E
139 136
24.6% -1
-36.2%
-50
Key Ratio
ROE ROCE Working Capital Cycle (Days)
91
20.4% 24.0% 78
74
14.3% 17.6%
11.4%
6.5%
C O N S O L I D AT E D
Net Assets Turnover (x) Net Debt to Equity (x) Current Ratio (x)
0.9 0.3 2.5
0.7
0.5 1.6
1.4
0.1
0.0
11.1% 15.0% 69 72
10.5%
4.5%
S TA N D A L O N E
Net Assets Turnover (x) Net Debt to Equity (x) Current Ratio (x)
0.3 2.3
0.8
0.6 1.5
1.3
0.4 0.1
0.0
12
FY21
20
11
17
FY22
PE (x)
18
23
FY23
Consolidated Revenue Composition
MHE, 14%
Gear, 86%
Focus on Enhancing Return & Payout
Earning Per Share (Rs) Dividend (Rs Cr)
C O N S O L I D AT E D
12.5
11*
5.1 4
8.5 11*
3.2 4
Launch in India – Gurugram New EON Series Launching Video Launch In International – Thailand
New Product Development – Launch New EON Series
4
3 Gear Units With Add On Parts
Innovations and Technology • Cooling Coil
• Effective Micro Gear Geometry • Fan
• Optimize Bearings • Heater
• Robust Optimize Housing • Force Lubrication
• Torque Arm
• Motor Adaptor
5
Condition Monitoring System to Keep Plant Running
& Stepping Up The Production
New Product Developed and Upgraded in Last 3 Years
1 1
Power : 10 MW
Weight : 44,000 kg
• Import Substitute
• Robust design
• Compact and Efficient
Roller Press Gearbox
• Import Substitute
• Complete drive train solution
• Robust Torque Arm Design
Dual Tandem Gearbox
45
• Engaged in manufacturing of Industrial Gear Box and Benzlers Sweden Radicon USA
Material Handling Equipment
• Largest manufacturer with seven decades of
PROFILE experience and expertise in Asia
Elecon India
60+ 100+
Distributors & Dealers Distributors & Dealers
50+ 30+
Customer Customer
representatives representatives
4
Assembly Centers Serving to
Pan India 10
Presence 75+
Sales Offices countries
Key Segments & Products
Global Market (USD Million) Asia Pacific (USD Million) India (USD Million)
12,254.80
5,044.40 358.30
CAGR
CAGR
4.68%
5.09% CAGR
4.52%
8,501.10
3,391.20
251.70
Gear Division
▪ World-class operations
▪ Widest range of industrial gears
▪ Manufacturing facility for Both Catalogue product and
Engineered product
▪ High safety standards
▪ Skilled and Trained workforce
▪ Increasing footprints in Overseas Market
Growth Drivers
MHE Division
Most comprehensive range of Industrial Gears under one roof in the world
~34% share in Organized Market in India
700+ Machine Tools to produce high quality Gear Boxes
Manufacturing capabilities specially for :
• High quality DIN class 2 Gear Box for special applications like Marine and High
speed
• Complex Gear box like CODOG (Combined Diesel or Gas turbine) and COGAG
(Combined Gas Turbine and Gas Turbine) for Defence - Indian Navy
• Helical, Double Helical External Gear as well as Planetary Gears for Cement, Steel
and any kind of special application
HOFLER @RAPID 1250
Provide Internet of Things Solution :
• Technological solution to monitor Gearbox remotely with fault finding technology
• SMART Gear Technology for special application like Ladle crane gearbox, Vertical
rolling Mill gearbox for Cement industry etc.
Pioneers in the field of manufacturing– MHE Division
Pile Reclaimer
Recognition in FY23
Trade Show
Trade Show
National Council for Cement and Building International Society of Sugar Cane
Material Exhibition held at Delhi Technologists Exhibition held at Hyderabad
Facility visit by the Board of Directors
Board of Directors
79 74 59
248 22.4%
24.0%
51 18.0%
39 34
20.5% 15.9% 13.5%
Segment Analysis Q4 FY23 - Standalone
Revenue (Rs Cr) EBIT (Rs. Cr) & EBIT Margin (%)
30% 29%
272
68
G E A R
210
53
25.0% 25.0%
55%
11
58
19.2%
M H E
38
1.4% 1
Key Highlights
According to Market Cap Elecon stands on 516 Rank on March 31, 2023 against
770 Rank on March 31, 2022 as per list of top 2000 companies issued by NSE.
Arbitration Awards
• Rs. 12 Cr.: Settled out of court, of which Rs. 5 Cr. realised in Q4FY23 & balance
to be realised in EMIs by Q2FY24
• Rs. 18 Cr.: allowed by the court to withdraw against submission of BG, of which
Rs. 10 Cr. recovered in Q4FY23 & balance to be recovered by Q2FY24
• Rs. 33 Cr.: Under negotiation
Consolidated Order-Book
FY23
Steel
13.8%
Cement
Sugar 24.6%
6.8%
Others
39.1%
Cement
Gear 9.7%
Others
MHE
4.6% Power
Steel 55.1%
3.2%
Power
Chemical
8.1% 4.7%
Mining MHE
Fertilizer
3.7% 7.0%
Marine 7.8%
11.8%
05 Outlook
Economy Outlook
GDP Growth Outlook India : Engineering Industry
6.8%
5.9%
2022 2023
5.2%
Capacity creation in sectors like power, steel,
4.0%
3.5%
3.0%
2.1%
1.8%
mining, infrastructure, oil & gas, etc., is likely
1.6%
0.8%
to drive growth in the engineering industry
-0.1%
-0.3%
processes, cost advantage, diversification by
US Euro Area United Kingdom Germany China India*
global players away from China and
supportive regulatory policies bodes well for
Source: IMF, World Economic Outlook, April 2023
*Note: For India data and forecast are presented on a fiscal year basis. (2022 implies FY23 and 2023 implies FY24) the outlook of the industry
• Global GDP growth is estimated to decline to 2.8% in 2023 on the back of high and persistent Growth outlook for Gears and MHE segments
inflation, tighter monetary policy and financial and geopolitical uncertainties. remains positive on the back of strong
• However, according to RBI estimates, Indian economy is estimated to remain resilient and demand from end user industries.
grow at 6.5% for FY24 led by
government's thrust on capital spending and infrastructure and
revival in manufacturing and trade activity.
PLI Scheme
The PLI scheme is likely to boost the Make In India 100% FDI Ease of Doing
manufacturing sector and boost capacity Business
creation in the long run.
06 ESG Vision
Sustainable towards Environment
Electric powered
~4000 Sq. Mtr 40% equipment enhanced to
unused land developed into reduction in using wood by reduce Natural resources.
Green Belt Area replacing to Nail-less
Packaging
300 Volume
Rs
6,000
200 Price
4,000
2,000 100
0 0
Apr-22 May-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
AIF, 0.9%
Mutual Fund, 0.9%
FPI, 2.1%
Stock Information
(as on March 31, 2023)
No. of Shares
11.2
March 31, 2023 Others, 36.8% Outstanding (Cr)
Promoters, 59.3%
Market Cap (₹ Cr) 4,265
Industrial
Industry
Equipment
ELECON ENGINEERING COMPANY LIMITED For further information, please feel free to contact:
Vallabh Vidyanagar, Narasimhan Raghunathan (CFO) Binay Sarda
Gujarat, India - 388120 Elecon Engineering Company Limited Ernst & Young LLP
Tel.: (02692) 238701 / 238702 / 236469
P: 91-75740 37046 P: 91-9920893764
CIN: L29100GJ1960PLC001082
Email: - [email protected] Email: - [email protected]
References and Definitions
• Earning Before Interest, tax, depreciation and amortization (EBITDA) is calculated as Profit Before Tax+
Depreciation + Finance Cost- Other Income.
• Earning Before Interest and Tax (EBIT) is calculated as profit Before Tax+ Finance Cost
• Return on Equity is calculated as Profit After Tax divided by Average Shareholders Equity.
• Return on Capital Employed is calculated as EBIT divided by Capital Employed whereby Capital Employed
represents Total Equity + Borrowings + Deferred Tax liabilities
• Price Earning Ratio is calculated as Market Price per share divided by Earning per share whereby Earning per
share is calculated using net profit attributable to equity holders i.e. Profit After Tax