Q3 FY24 earnings call summary for Elecon –
Gears division – Steel, cement, sugar industry continues to do good.
Signed 4 OEM’s (from packaging, steel and plastic sector) this qtr. Expected 6M Euros potential business opportunity from total 10 OEM’s to start with that have been signed so far. Commercial production for these OEM’s will start from Q3’25.
MHE division – Won orders for 173Cr from steel and cement industry. Seeing uptick in profitability.
Management is reasonably confident of meeting 2000Cr top line revenue for FY’24 inspite of challenges currently facing related to steel price reduction, geo political issues and inflation.
Majority of the revenue comes in Q4 for engineering companies as said by the management. Also cycles are pretty short for their products.
EBITDA guidance for full year to be 24% +.
FY’25 guidance will be given during Q4 FY’24 call.
Total Open orders 791Cr till Dec 31st.
Capex on target. 100Cr done this year. Expecting to do 100Cr each in next 2 years.
Please add if I have missed or interpreted incorrectly from the call.
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