Transmission Equipment Manufacturer: Vijay Kedia's Portfolio Stock Delivers 19 Per Cent PAT Growth, Sales Up 11 Per Cent
The company’s net profit increased by 19 per cent YoY, reaching Rs 107.5 crore, compared to Rs 90.4 crore in Q3 FY24.
Elecon Engineering Company Ltd., a prominent power transmission and material handling equipment manufacturer, reported strong financial performance for the third quarter of fiscal year 2025, with significant growth in revenue, EBITDA, and net profit. However, the company faced some challenges in its gear division, which saw only marginal growth.
Financial Performance
Elecon’s revenue for the quarter rose by 11.7 per cent YoY, reaching Rs 529 crore in Q3 FY25, compared to Rs 474 crore in the same period last year. The company’s EBITDA also witnessed robust growth, increasing by 18.4 per cent YoY to Rs 142.5 crore, up from Rs 120 crore in the previous year. This growth led to an improvement in the EBITDA margin, which expanded to 27 per cent, up from 25.4 per cent last year.
The company’s net profit increased by 19 per cent YoY, reaching Rs 107.5 crore, compared to Rs 90.4 crore in Q3 FY24.
Despite the overall strong performance, the company faced a slight setback in its gear division, which saw only 2.1 per cent growth during the quarter. This segment is critical, contributing to nearly 50 per cent of the company’s total revenue.
Prominent investor Vijay Kedia holds a 1.09 per cent stake in the company as of December 2024.
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About the Company
Established in 1960, Elecon Engineering Company Ltd. is a leading manufacturer of industrial equipment, specializing in power transmission and material handling equipment. With a strong global presence, the company designs, manufactures, and sells its products both in India and internationally.
Elecon also operates a steel and non-ferrous foundry business, enhancing its capabilities in industrial equipment production. The company has a legacy of innovation, having introduced modular design concepts, case-hardened gears, and ground gear technology to India, solidifying its leadership in the power transmission sector.
Stock Price Performance
Elecon’s stock has provided a 12.54 per cent return over the past year, outperforming the Nifty 50, which gained 9.43 per cent during the same period. Over the last five years, the company has delivered multibagger returns of 2740 per cent, with a market capitalization of Rs 12,363 crore.
Disclaimer: This article is for informational purposes only and not investment advice.