Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q3 FY23 Earnings Presentation
42 slides from Elecon Engineering's earnings presentation, February 2023
Slide 1: Investor Presentation | Q3 & 9M FY23
Investor Presentation | Q3 & 9M FY23
Slide 2: Safe Harbor
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", "p
Slide 3: Company Overview
with you at every turn with you at every turn GEARING THE FUTUREOGS Company Overview
Slide 4: Overview
Overview • 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 • Strengthen Global Presence in Industrial Gear Box by innovating and developing p
Slide 5: About 'ELECON'
About ‘ELECON’ ISO 9001:2015; 14001:2015; Asia’s largest Industrial Gear OHSAS 18001:2007 Company 1 5 Manufacturing having facility spread over 335,000 Square Meter First in India to manufacture sophisticated equipment for Only Company in India having bulk Material Handling and a 2 6 capability to m
Slide 6: Global Presence with Strong Distribution Network
Global Presence with Strong Distribution Network Domestic Market Overseas Market 60+ 100+ Distributors & Dealers Distributors & Dealers 50+ 30+ Customer Customer representatives representatives 4 Assembly Centers Pan India Presence 10 Sales Offices
Slide 7: Key Segments & Products
Key Segments & Products Helical/Bevel Helical Gearboxes Worm Gearboxes Couplings Feeders Crushers Stackers/Reclaimers Material Handling Equipment Power Transmission Planetary Gearboxes Wind Turbine Gearboxes Marine Gearboxes Raw Material Handling Wagon Tippler & Associated Specialized Conveyors Syst
Slide 8: Business Operation
with you at every turn with you at every turn GEARING S THE FUTURES & Business Operation
Slide 9: Industrial Gearbox Market Size
Industrial Gearbox Market Size Global Market (USD Million) Asia Pacific (USD Million) India (USD Million) 12,254.80 5,044.40 358.30 CAGR CAGR CAGR 4.68% 5.09% 4.52% 8,501.10 3,391.20 251.70 2021 2029 2021 2029 2021 2029 Source : Fortune Business Insights
Slide 10: Growing Sectoral Outlook
Growing Sectoral Outlook Steel Cement Power Sugar Steel & Mineral Industry has been Cement consumption in India is Elecon expects around 3 more The government has helped in consistently doing well for the expected to grow by ~6 to 7% in thermal power plants to come up reviving the Sugar industry by
Slide 11: Leading Position for Long-term with Integrated Operations
Leading Position for Long-term with Integrated Operations 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 M
Slide 12: Portfolio with Market Leading Position
Portfolio with Market Leading Position Most comprehensive range of Industrial Gears under one roof in the world 700+ Machine Tools to produce high quality Gear Boxes Manufacturing capabilities specially for : • High quality DIN class 2/3 Gear Box for special applications like Marine and High s
Slide 13: Portfolio with Market Leading Position
Portfolio with Market Leading Position Pioneers in manufacturing Bulk Material Handling Equipment Providing end to end solutions to the core sectors like power, steel, mining, cement, fertilizers and ports In-house design and manufacturing capabilities Largest supplier of Stockyard Machines
Slide 14: Recognition in FY23
7.0; Recognition in FY23 @ececont | GEARING THE FUTURES IS PROUD TO PRESENT ELECON ENGINEERING ‘AS ONE OF THE TOP 10 GEARS & GEARBOX MANUFACTURERS 2022
Slide 15: New Product Development - High Speed Gearbox
New Product Development - High Speed Gearbox Product Name : High Speed Gearbox Application : Single Stage, Double Helical, Speed Reducer Usage : Steam Turbine, Compressor, Blower Power : 10 MW Input Speed : 10,500 rpm Ratio range : 7.2 : 1
Slide 16: Enlarging Portfolio of Planetary Gearbox Product
Enlarging Portfolio of Planetary Gearbox Product Product Name : Central Drive Planetary Gearbox Usage : Cement Mill Power : 3,100 KW Output rated torque : 4687 kNm Ratio range : 31.05:1 Weight : 44,000 Kgs
Slide 17: Financial Performance Q3 & 9M FY23
Financial Performance 03 Q3 & 9M FY23
Slide 18: Financial Performance Q3 FY23
Financial Performance Q3 FY23 Consolidated In Rs. Cr Q3 FY22 Q3 FY23 43% 69% 113% 99% 63 89 79 389 272 52 37 32 Sales EBITDA PBT PAT Standalone In Rs. Cr 63% 112% 198% 206% 304 48 63 71 186 21 16 34 Sales EBITDA PBT PAT
Slide 19: Financial Performance 9M FY23
Financial Performance 9M FY23 Consolidated In Rs. Cr 9M FY22 9M FY23 26% 38% 85% 80% 216 170 246 1105 880 178 117 94 Sales EBITDA PBT PAT Standalone In Rs. Cr 34% 50% 105% 108% 129 173 866 201 646 134 84 62 Sales EBITDA PBT PAT
Slide 20: Key Ratios
Key Ratios Consolidated FY22 9M FY23 37% 29% 65% 23% 0.8 19 20% 0.7 18% 14% 11 RoE RoCE PE Net Asset Turnover Standalone 55% 40% 49% 17% 21% 0.8 25 15% 0.6 11% 17 RoE RoCE PE Net Asset Turnover Note: 9M FY23 Ratios are Annualised.
Slide 21: Key Ratios
Key Ratios Consolidated FY22 9M FY23 0.1 91 2.1 1.6 81 0.0 Current Ratio Net Debt to Equity Working Capital Cycle (Days) Standalone 0.1 101 79 1.9 1.5 0.0 Current Ratio Net Debt to Equity Working Capital Cycle (Days)
Slide 22: Financial Track Record
Financial Track Record Consolidated In Rs. Cr FY20 FY21 FY22 FY23 Guidance EBITDA Margin 22% 20% 395 84 18% 13% 246 246 1,088 1,044 1,212 1,105 185 140 Sales EBITDA 24% 21% 0.47 18% 14% 0.31 11% 7% 8% 0.10 2%* 0.00 Net Debt to Equity RoE RoCE • Excluding exceptional Tax reversal / credit effect.
Slide 23: Financial Track Record
Financial Track Record Standalone In Rs. Cr FY20 FY21 FY22 FY23 Guidance EBITDA Margin 24% 334 21% 87 18% 13% 105 144 184 201 836 796 893 866 Sales EBITDA 24% 0.43 21% 15% 0.27 10% 11% 0.11 5% 6% 0.00 0%* Net Debt to Equity RoE RoCE • Excluding exceptional Tax reversal / credit effect.
Slide 24: Segment Analysis - Gear
Segment Analysis - Gear 48% Q3 FY22 Q3 FY23 244 72% 24% 59 21% 165 34 Revenue (Rs. Cr) EBIT (Rs. Cr) EBIT Margin 9M FY22 9M FY23 30% 48% 167 24% 708 21% 546 113 Revenue (Rs. Cr) EBIT (Rs. Cr) EBIT Margin
Slide 25: Segment Analysis – MHE
Segment Analysis – MHE Q3 FY22 Q3 FY23 187% 216% 15% 9 60 21 -8 EBIT (Rs. Cr) -36% Revenue (Rs. Cr) EBIT Margin 9M FY22 9M FY23 59% 158 21 13% 99 Revenue (Rs. Cr) -1 EBIT (Rs. Cr) -1% EBIT Margin
Slide 26: Key Highlights
Key Highlights Net Cash Surplus Outstanding Retention Arbitration awards of Elecon Stock Added in External Credit Ratings December 31, 2022 December 31, 2022 Rs. 60+ Cr. MSCI India Domestic LT: [ICRA] A+ (Stable); Rs. 66 Cr. Rs. 66 Cr. Customers reaching us Small Cap Index ST: [ICRA] A1 for amicable
Slide 27: Consolidated Order-Book
Consolidated Order-Book Order Intake In Rs. Cr Open Order 9M FY23 As at Dec 31, 2022 GEAR 1,023 563 MHE 177 157 TOTAL 1,200 720
Slide 28: Industry wise Consolidated Order Intake
Industry wise Consolidated Order Intake 9M FY23 Steel Cement 13.1% 30.7% Sugar 5.7% Others 38.5% Cement Gear 9.4% MHE Others 13.8% Power Power 51.7% Oil & Gas 6.8% 5.7% MHE Fertilizer Mining 7.8% 3.7% 3.3% Mining Marine 1.7% 15.4%
Slide 29: Outlook
@ELECONT with you at every turn with you at every turn
Slide 30: Guidance & Initiatives
Guidance & Initiatives Consolidated Revenue: Capex Planned: Global Brand Rs. 2,000 Cr. by FY24 Rs. 100 Cr. by FY24 Building Overseas Business Revenue: Supply to OEMs in 50% by FY30 European Market
Slide 31: Economy Outlook
Economy Outlook GDP Growth Outlook India : Engineering Industry 6.8% 6.1% 2022 2023 4.4% Capacity creation in sectors like power, steel, 3.6% 3.2% 3.1% mining, infrastructure, oil & gas, etc., is likely 1.6% 1.5% 1.0% 0.5% 0.3% to drive growth in the engineering industry Technological improvemen
Slide 32: ESG Vision
@ELECONT with you at every turn with you at every turn ESG Vision
Slide 33: Sustainable towards Environment
Sustainable towards Environment 70% Energy from Renewal Sources • Wind Power - 14 MW • Solar Power – 3 MW • Solar Power Project under progress - 2 MW ~ 85%+ Lighting converted into LED 60% Green Campus ~ 4000 Sq. Mtr. unused land developed into Green Belt Area 40% reduction in using wood b
Slide 34: Social Engagement
Social Engagement Health and Medical • Blood Donation Camp • Supporting charitable hospitals for latest medical equipment • Health activities for community • Healthy Heart Walkathon • Health & Safety awareness programs in near by villages Promoting Sports activities through • Elecon Cricket Acad
Slide 35: Vision for Inclusiveness
Vision for Inclusiveness Business Promoting procurements from MSME Partner Meet Business Partner Meet Dealer and Channel Partner Meet Sustainable Supply Chains Web Supplier Portal for sustainable Supply Chain Green Certificate Distribution
Slide 36: Building Strong Workforce with Care
Building Strong Workforce with Care Features Diversity Ratio Sustained Workforce Leadership Development Program 10+ Years average service period of an Leadership Development program under employee “Gurukul” Project 600+ workforce building team Elecon Culture Champions to drive Cultural Cre
Slide 37: Commitment towards Safety, Health & Empowerment
Commitment towards Safety, Health & Empowerment Safety Health Empowerment
Slide 38: Share Price Performance – 1 Year
Share Price Performance – 1 Year 12,000 Volume Price 500 10,000 400 8,000 300 in '000 Rs 6,000 200 4,000 2,000 100 0 0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 300 Relative Performance 200 BSE NSE Nifty BSE CG Elecon Sensex 100 1 Week 1.7% 1.7% 2.3%
Slide 39: Shareholding Pattern
Shareholding Pattern AIF, 0.9% Mutual Fund, 0.9% FPI, 2.0% Stock Information (as on December 31, 2022) BSE / NSE Scrip Code 505700 / ELECON No. of Shares 11.2 Outstanding (Cr) Others, 37.0% December 31, 2022 Market Cap (₹ Cr) 4,091 Promoters, 59.3% Industry Industrial Equipment Promoters Mutual Fund
Slide 40: Follow Us
Follow Us https://www.facebook.com/elecongear/ https://www.linkedin.com/in/elecon-engineering-co-ltd-112b06193/detail/recent-activity/ https://twitter.com/elecon_co https://www.youtube.com/channel/UCOLCcsCiq8ItCebbLmup65g?app=desktop https://www.instagram.com/eleconengineering/ https://tinyurl.com/E
Slide 41: THANK YOU
THANK YOU ELECON ENGINEERING COMPANY LIMITED Vallabh Vidyanagar, Gujarat, India - 388120 Tel.: (02692) 238701 / 238702 / 236469 CIN: L29100GJ1960PLC001082 For further information, please feel free to contact: Narasimhan Raghunathan (CFO) Binay Sarda Elecon Engineering Company Limited Ernst & Young L
Slide 42: References and Definitions
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