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Highlights
- Sales over the Year and quarter: The company’s sales declined by -5.3 % over the year, decrease in net sales/revenue by -30.51 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 79.87 %. Marginal increase in other income during this quarter, up by 8.9%.
- Profit over the Year and quarter: Significant improvement in profitability for Elecon Engineering Company Limited. Notable increase of 0.55 % in net profit Year to Year, Elecon Engineering Company Limited’s profitability dropped by -29.22 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 0.62 % Year to Year. EPS decreased by -29.22 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 414.34 Cr | Rs. 564.62 Cr | Rs. 392.36 Cr | -30.51 % | -5.3 % |
| Expenses | Rs. 314.37 Cr | Rs. 429.26 Cr | Rs. 299.98 Cr | -30.12 % | -4.58 % |
| Operating Profit | Rs. 99.97 Cr | Rs. 135.36 Cr | Rs. 92.38 Cr | -31.75 % | -7.59 % |
| OPM % | 24.13 % | 23.97 % | 23.54 % | -0.43 % | -0.59 % |
| Other Income | Rs. 9.39 Cr | Rs. 15.51 Cr | Rs. 16.89 Cr | + 8.9 % | + 79.87 % |
| Interest | Rs. 2.47 Cr | Rs. 2.05 Cr | Rs. 2.29 Cr | + 11.71 % | -7.29 % |
| Depreciation | Rs. 12.42 Cr | Rs. 12.58 Cr | Rs. 12.83 Cr | + 1.99 % | + 3.3 % |
| Profit before tax | Rs. 94.47 Cr | Rs. 136.24 Cr | Rs. 94.15 Cr | -30.89 % | -0.34 % |
| Tax % | 22.99 % | 24.36 % | 22.67 % | -1.69 % | -0.32 % |
| Net Profit | Rs. 72.96 Cr | Rs. 103.65 Cr | Rs. 73.36 Cr | -29.22 % | + 0.55 % |
| EPS in Rs | Rs. 6.5 | Rs. 9.24 | Rs. 6.54 | -29.22 % | + 0.62 % |
Today, we’re looking at Elecon Engineering Company Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -5.3 %. However, it did see a marginal slip of -30.51 % from the previous quarter. Expenses decreased slightly by -30.12 % quarter-on-quarter, aligning with the annual decline of -4.58 %. Operating profit, while down -7.59 % compared to last year, faced a quarter-on-quarter dip of -31.75 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.59 %, but a shrinkage of -0.43 % sequentially. Other income rose by 8.9 % compared to the last quarter, despite an annual growth of 79.87 %. Interest expenses surged remarkably by 11.71 % from the previous quarter, yet the year-over-year decrease remains at a moderate -7.29 %. Depreciation costs climbed by 1.99 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 3.3 %. Profit before tax declined annually by -0.34 % but saw a reduction from the preceding quarter by -30.89 %.
Tax expenses as a percentage of profits decreased slightly by -0.32 % compared to last year, with a more notable quarter-on-quarter decrease of -1.69 %. Net profit rose by 0.55 % year-on-year but witnessed a -29.22 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 0.62 % but a quarterly fall of -29.22 %. In summary, Elecon Engineering Company Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 414.34 Cr | Rs. 564.62 Cr | Rs. 392.36 Cr | -30.51 % | -5.3 % |
| Expenses | Rs. 314.37 Cr | Rs. 429.26 Cr | Rs. 299.98 Cr | -30.12 % | -4.58 % |
| Operating Profit | Rs. 99.97 Cr | Rs. 135.36 Cr | Rs. 92.38 Cr | -31.75 % | -7.59 % |
| Net Profit | Rs. 72.96 Cr | Rs. 103.65 Cr | Rs. 73.36 Cr | -29.22 % | + 0.55 % |
| EPS in Rs | Rs. 6.5 | Rs. 9.24 | Rs. 6.54 | -29.22 % | + 0.62 % |
In reviewing Elecon Engineering Company Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -5.3 % year-on-year, although there was a slight dip of -30.51 % from the previous quarter. Expenses decreased by -4.58 % compared to the previous year, with a decrease of -30.12 % quarter-on-quarter. Operating Profit dropped by -7.59 % annually, and saw a -31.75 % decrease from the last quarter.
Net Profit showed yearly increase of 0.55 %, and experienced a -29.22 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 0.62 % annually, however dipped by -29.22 % compared to the last quarter. In essence, while Elecon Engineering Company Limited exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
-26
3-Year Profit
0
5-Year Profit
0
10-Year Profit
86.8
Current Price
785
Market Cap
In analyzing the financial results for the company marked by BSE code 542337, a clear trend emerges. Over a five-year span, the company reported a profit of 0 percents, which increased to -26 percents in the most recent three-year period, suggesting a strong performance in the early stages of this timeframe. However, this success has been overshadowed by a trailing twelve-month (TTM) loss of -8 percents, signaling significant recent challenges. Compounding this issue is the fact that the company has not reported any sales during any of the timeframes analyzed, raising important questions about its operational model and the sustainability of its current strategies. Investors have been equally wary, as reflected in the stock price performance. The company’s stock traded at 5 percents over the past five years but has recently decreased to 29 percents, indicating a loss of market confidence. Over the last decade, the stock price was at 0 percents, pointing to longer-term concerns that could affect the company's future prospects.
The company has a market capitalization of ₹785 crore and is currently trading at ₹86.8 per share. Historically, the stock has fluctuated within a range of ₹139 / 65.4, reflecting both the opportunities and risks that investors perceive in the company. The P/E ratio, at , is relatively high, suggesting that the market has priced in substantial future growth or is willing to pay a premium for the company’s current earnings. The book value per share stands at ₹-60.6, which reflects the net asset value of the company divided by the number of outstanding shares. The dividend yield is 0.00%, providing shareholders with a consistent return on their investment. ROCE is -10.3%, indicating how well the company is using its capital to generate profits, while ROE at % highlights the returns generated from shareholders' equity. The debt-to-equity ratio is , signaling low financial leverage, which is typically seen as a positive indicator of financial health. However, the company’s negative net cash flow of ₹18.3 crore might raise concerns about its cash generation capabilities or capital expenditures. With a Piotroski score of 3.00, the company's financial stability is evaluated on several factors. Finally, the Graham Number, at ₹, provides an estimate of the stock’s intrinsic value, while the Price-to-Book (P/B) ratio of highlights that the stock is trading at a premium to its book value, potentially reflecting positive market sentiment or overvaluation risks.
