New Delhi: In Tuesday’s trading, shares of Elecon Engineering Company, a producer of industrial gears and material handling equipment, surged 18% after the company reported that its consolidated profit after tax increased by 72% year over year (YoY) to Rs 73 crore on a 26% YoY increase in consolidated revenue at Rs 414 crore.
Prayasvin B. Patel, Chairman and Managing Director of Elecon Engineering, expressed optimism about maintaining the growth momentum in the future due to the company’s robust order book across all categories, continuous focus on expanding into export markets, and continued leadership in the home market.
Following the news, the stock shot up 18.39% to an all-time high of Rs 748 on the BSE. With this, the multi-bagger stock’s return over a year increased to 122%.
Elecon claimed that it remained the industry leader in the industrial gear sector. The gear division’s revenues increased by 27% year over year. The MHE Division has reportedly been successfully rejuvenated by the corporation, returning it to profitability. Elecon Engineering said that by concentrating on product supply and aftermarket business in the MHE industry, the segment’s EBIT margin increased by 1200 basis points from the same quarter the previous year to 23%.
“We envisage to expand our market share by further penetrating into existing geographies and exploring new territories. We continue to make strides to grow our overseas business and the recent development with respect to signing five OEM business in the European market is a positive indicator of our progress,” the company said in a BSE filing.
