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Elecon Engineering Company Limited, Asia’s leading industrial gear manufacturer, today reported a mixed performance for the second quarter ended September 30, 2024. The company posted a consolidated revenue of ₹508 crores, marking a 4.8 per cent year-on-year growth, while net profit slightly declined by 1 per cent to ₹88 crores.
The shares of Elecon Engineering Company Limited were trading at ₹655 down by ₹66.45 or 9.21 per cent on the NSE today at 1.20 pm.
The Material Handling Equipment (MHE) division emerged as the quarter’s highlight, recording a 77.8 per cent year-on-year revenue growth with improved EBIT margins of 26.5 per cent. The division also secured its first international order worth $1.65 million.
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However, the company’s core Gear division faced headwinds, with revenues declining 5.9 per cent to ₹398 crores due to delayed order receipts. The division’s EBIT margins contracted to 20.5 per cent from 26 per cent last year, impacted by higher freight costs and maintenance expenses.
The company’s international business contributed 24 per cent to total revenue, aligning with its target of achieving 50 per cent overseas revenue by FY30. In a positive development, Elecon’s credit rating was upgraded to [ICRA] AA (Stable) for long-term and A1+ for short-term facilities.
The board declared an interim dividend of ₹0.50 per equity share of face value ₹1 each.
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