Elecon Engineering Limited

[rahil_sayta]

I am not saying it not well priced. When i looked at elecon in 2021 it was running at 50% capacity and 18% margins and lot of sectors they focus on were doing very well. This led to sales growth margins expansion and PE expansion . There were all the required levers ( in highsight ) though it paid off .

Markets discount the expected growth rate . Question that needs to be asked is can PAT grow at 30-40% if yes how ? We cant forget its a business which depends on business which are cyclical sugar steel cement so expectation of PE needs to be accordingly.

Also track orderbook if orderbook doesnt grow at rapid speed it will not translate to topline and will impact margins if it slows.

One way to think about such business which i have started is ( if you didnt hold the stock ) in your portfolio considering curre t juncture would you buy it ? If answer is yes it makes all the sense to stay put otherwise its a sell .

I may be negatively biased as i dont hold.stock anymore. Its personal view. Dyod

[Moonrise]

Thanks for sharing your thoughts. I can understand where you’re coming from, as it is also an old holding and you have experienced the growth & booked the gains. Certainly isn’t as cheap as when you added it.

Not sure if PAT can grow at 30-40% - not sure if anyone can reclaim the post-covid growth rates, anywhere.

I’m holding since 23 months, and haven’t sold a single unit as yet. Have been adding more during the recent fall.

[Aazeb_Parbatani]

I have recently started looking into this company after recent price slump. What are your current views on Elecon Engineering?

[k3311]

ELECON.pdf (637.8 KB)
My own research, I could be wrong, DYOR.
Disc: Invested. Position with highest draw down.

[raviinvestor]

Decent Quarterly Result from Elecon

[basumallick]

Good nos. Two opposing issues will come up in the next 2-3 years. One one hand, the global growth will be challenged if there is a slowdown in US and China. On the other hand, if Europe starts a large capex program for defence and power, then it could be benefecial.

[ranvir]

Elecon Engineering -

Q4 and FY 25 results and concall highlights -

Company’s product profile -

Gears -

Company is a supplier of widest range of Industrial gears

Serve mainly to Industries like - Power, Cement, Sugar, Steel, Plastic, Defence, Mining, Rubber

Company is already a mkt leader in domestic mkt and is strategically expanding in overseas mkts

Products in this segment include - Helical gearboxes, Series gearboxes, Worm gearboxes, Couplings, Planetary gearboxes, Marine gearboxes, Custom made gearboxes, Central drive mill gearboxes, Double helical gear wheel, Loose gears etc

MHE ( material handling equipment ) -

Products include - Feeders, Pulleys, Automatic Weighing, Stackers, Mobile stackers, Truck Loaders etc

End user industries include - Steel, Cement, mining, Fertilisers, Power, Ports, Oil and Gas

FY 25 outcomes -

Revenues - 2227 vs 1937 cr, up 15 pc
EBITDA - 543 vs 474 cr, up 15 pc ( margins @ 24.4 vs 24.5 pc )
PAT - 415 vs 356 cr, up 16 pc

Segmental revenue breakup -

Gears - 1763 vs 1669 cr, up 5.6 pc
MHE - 464 vs 269 cr, up 73 pc

Working capital days @ 77 vs 72
RoCE @ 27 vs 29 pc

Q4 outcomes -

Revenues - 798 vs 565 cr, up 41 pc
EBITDA - 195 vs 135 cr, up 44 pc ( margins @ 24.5 vs 24 pc )
PAT - 146 vs 104 cr, up 41 pc

Segmental revenues -

Gears - 597 vs 464 cr
MHE - 200 vs 101 cr, up 98 pc

Open orders as on 31 Mar 25 vs 31 Mar 24 -

Gears - 583 vs 536 cr
MHE - 365 vs 260 cr

Fresh order intake in Q4 FY 25 vs Q4 FY 24 -

Gears - 497 vs 412 cr, up 20 pc
MHE - 148 vs 144 cr, up 3 pc

Geography wise breakup of sales -

Domestic - 1710 vs 1479 cr, up 15.6 pc
International - 517 vs 458 cr, up 12.8 pc
Domestic : International sales @ 76:24

Some excerpts from management commentary -

1. In Q4FY25, our Material Handling Equipment (MHE) division saw a remarkable 98.2% year-on-year revenue growth. EBIT margin stood at 29.6% with an improvement of ~820 bps Y-o-Y. We expect good momentum in this segment in the coming years. Our Gear division, in Q4FY25, also experienced a considerable rebound with growth of 28.9% in revenue and EBIT margin at 24.5%
2. This resurgence has been driven by strong demand in both domestic and international markets. Domestically, demand has picked up meaningfully, particularly from the steel, power, and cement sectors. Overseas business remains healthy, with solid traction seen across international markets. The enquiry levels remain robust, and we are seeing healthy demand internationally
3. We are steadily advancing towards our strategic objective of generating 50% of our consolidated revenue from international markets by FY30. Strengthening relationships with global OEMs and sustained brand-building initiatives continue to reinforce our confidence in achieving this milestone
4. Our growth strategy is supported by strategic alliances with international partners, ongoing investments in R&D and product innovation, and a focused push within the high-growth MHE division. These efforts collectively position us to outperform broader industry trends and accelerate our domestic & global footprint. Our priority is to attain sustainable profitable growth creating long-term value for all our stakeholders

Company is looking to expand its presence in Canada and LatAm in order to compliment their presence in EU and US

Cash on books @ 550 cr

FY 26 guidance - Revenues of 2650 cr with EBITDA margins @ 24 pc. This represents an expected topline growth of 18 pc and EBITDA growth 16 pc for next FY

Order inflow in Q1 FY 25 was very slow. It started to pickup wef Q2

Order inflow from the steel sector was slow in FY 25 but the same is reversing meaningfully in Q1 FY 26. Gear sales from steel de-grew by 6 pc in FY 25

Power and Steel sector should be major growth drivers in FY 26. Demand from sugar sector continues to remain weak. Hoping for a turnaround going forward

Major contributors of sales in the gear division for the company are as follows -

Steel - 11 pc
Sugar - 4 pc
Cement - 9 pc
Power ( mainly thermal ) - 12 pc
Rest - others ( like marine, plastics, Off the Shelf sales, engineering, rubber, mining etc )

Expect to do a sales of 2000 cr from gears sector and 650 cr from MHA division in FY 26. Expect the export sales contribution to rise vs FY 25 ( should rise to around 27-28 pc in FY 26 vs 24 pc in FY 25 )

Company’s results are likely to be on the lumpier side as order flows and executions are never linear

Of the total gears business, 34 pc comes from replacement demand + after sales service

Sales to OEM this year were at 58 cr vs their guidance of 50 cr. This OEM business is primarily coming from Europe

MHA division is likely to be operating @ 23 pc margins. Gear division may be operating @ 25 pc kind of margins

Company is continuously expanding their global reach at a fast place. Order flow from global mkts may be slow to begin. However, once it picks up pace, the ramp up may be rapid. However the global geo-politics and tariff wars are a genuine concern

Wrt further expansion, company is focussing on ME, Canada, South America and SE Asia

For FY 26, expect Depreciation cost of around 75 cr and Finance cost of around 15 cr

Company is looking to win more business from OEMs in the western world. Once this is achieved, the order flows may become more predictable and their repeat business may also go up as a share of their total business

Disc: added recently, tracking position, not a buy/sell recommendation, not SEBI registered

[sharadh_bhat]

I have created an Excel sheet to track Elecon’s performance for FY25-26. Feel free to suggest any edits.
Elecon.xlsx (16.9 KB)

[ranvir]

Elecon Engineering -

Q1 FY 26 results and concall highlights -

Company’s product profile -

Gears - Company is a supplier of widest range of Industrial gears

Serve mainly to Industries like - Power, Cement, Sugar, Steel, Plastic, Defence, Mining, Rubber

Company is already a mkt leader in domestic mkt and is strategically expanding in overseas mkts

Products in this segment include - Helical gearboxes, Series gearboxes, Worm gearboxes, Couplings, Planetary gearboxes, Marine gearboxes, Custom made gearboxes, Central drive mill gearboxes, Double helical gear wheel, Loose gears etc

MHE ( material handling equipment ) -

Products include - Feeders, Pulleys, Automatic Weighing, Stackers, Mobile stackers, Truck Loaders etc End user industries include - Steel, Cement, mining, Fertilisers, Power, Ports, Oil and Gas

Q1 outcomes -

Revenues - 491 vs 392 cr, up 25 pc
EBITDA - 130 vs 92 cr, up 41 pc ( margins @ 27 vs 24 pc )
PAT - 175 vs 73 cr ( includes an exceptional pre tax item of 108 cr )

Exceptional items include - one time arbitration settlement claims of 25 cr in MHE division ( included in segmental revenues ) + another one time arbitration claim of 10 cr + MTM gain in their investments in one of their associate companies - Eimco Elecon to the tune of 80 cr

Order book intake in Q1 @ 614 cr, up 13 pc YoY

Total order book now stands @ 1110 vs 947 cr YoY

Segmental performance in Q1 -

Industrial gears -

Revenues - 357 vs 337 cr, up 6 pc
EBIT - 66 vs 80 cr, down 17 pc ( margins @ 18.4 vs 23.7 pc )

Margins were impacted due to accelerated depreciation because of new capacities that went live in Q1, increased employee costs, increased brand building activities related spends for International mkts. As the capacity utilisation of newly commissioned capacities improve, margins should start to see an uptick

Order intake @ 480 vs 396 cr, up 21 pc
Total order book @ 710 vs 598 cr, up 19 pc

Seeing steady demand coming from domestic power, steel and cement industries. Enquiry levels remain encouraging across domestic and international markets

MHE -

Revenues - 133 vs 56 cr, up 139 pc ( includes 25 cr of additional revenue recognition due favourable award of arbitration proceedings )
EBIT - 61 vs 14 pc, up 335 pc ( margins @ 46 vs 25 pc )

Order intake @ 134 vs 149 cr, down 10 pc
Open orders @ 400 vs 349 cr, up 15 pc

Even without considering the 25 cr of arbitration revenues in the MHE segment, the division’s revenues have almost doubled !!!

Geography wise revenue split for Q1 FY 26 -

Domestic - 357 vs 259 cr, up 41 pc ( domestic business did have a favourable base in Q1 )
International - 124 vs 133 cr, down 7 pc ( international business did have a high base in Q1 )

Segment wise revenue split for Q1 FY 26 -

Industrial gears - 357 vs 337 cr, up 6 pc
MHE - 133 vs 56 cr, up 139 pc

Adjusted for the 25 cr additional revenues recognised in the MHE division, consolidated revenue growth in Q1 would have been 18 pc instead of reported 25 pc growth. EBITDA growth would have been 14 pc instead of reported 41 pc with margins @ 22.6 instead of reported 27 pc margins. For full FY 26, company aspires to clock 24 pc EBITDA margins

Strong order book and continued enquiry levels make the company feel confident for better performance for the rest of the FY

MHE segment’s strong growth in Q1 led by Power, Steel and Cement sectors

Cash on books @ 550 cr. Capex planned for next 3 yrs @ 435 cr. 400 cr for the gears division and 35 cr for the MHA division

Company lost aprox 14 cr of sales in international sales due Iran - Israel tensions. Should be able to make up for these lost sales in Q2. This aside, company expects their exports business to pick up wef Q2 ( specially wrt supply to ME )

In the gears division, order inflows from International geographies in Q1 were @ 119 cr, up 10 pc YoY

Company expects to realise another 20 cr of gains from arbitration awards in next 12-15 months

They believe, they r on track to achieve 2650 cr of revenues for FY 26 ( assuming 24 pc margins, yearly EBITDA should be around 630 cr vs 543 cr that they clocked in FY 25 )

Over and above the Steel, Cement and Power sectors, company expects to start getting orders form defence sector wef FY 26 ( 200 cr this year and even bigger orders wef next FY - wrt Defence sector )

Expect to start clocking 24 pc EBITDA margins wef Q2

MHE division is expected to clock 650 cr in revenues with 23 pc EBITDA margins for FY 26

For FY 26, annual depreciation should be around 100 cr vs 61 cr in last FY

Seeing good order uptake in MHA business wef July ( in Q2 ). Order inflow for MHA division in Q1 was on the weaker side

No of OEM customers that company has now stands @ 18 ( for gears business ). Company expects to start accruing good revenues from this revenues wef Jan 26 ( to the tune of 70- 100 cr / yr )

32 pc of gear division revenues came from service + refurbishment + spares !!!

The bigger defence sector order that the company expects to win in next FY should be around 1000 cr - to be executed over 3 yrs

The service component in MHE division in Q1 stood @ 41 pc - very healthy levels

In gears division in Q1, company clocked 43 pc revenues from engineered products vs 57 pc revenues from standard products. Engineered products have a higher margin and generally the revenue contribution from these 2 segments is @ 50:50. Lower contribution from engineered products in Q1 led to margin pressures in Gears division in Q1 ( + the effect of added depreciation - as brought out earlier ). Expecting a pickup in sales of engineered products wef Q2

Disc: holding, biased, not SEBI registered, posted for educational purposes only, not a buy/sell recommendation

[rujuta_tamhankar]

On What basis have you considered the growth rate? order book is only Rs1110 cr vs Revenue of 2227cr

[sharadh_bhat]

My projections are based on management guidance with bull/bear scenarios. I’ve been tracking the company for about a year now, and they’ve been reliable from what I’ve seen. As far as revenue is concerned, the order book has been growing YoY for several quarters, and if you add after-sales service and fresh order intakes from upcoming quarters, it’s bound to rise further.

[Krishna_Kumar]

Concall Highlights

Gear Div - However, this is a matter of timing. I want to emphasize that the underlying demand remains healthy, and we have witnessed robust order inflows in both markets and encouraged by the sustained inquiry levels, which bodes well for the future order inflows. The gear division contributed 76 percentage of total revenue in Q2 FY '26. For the quarter ended September '25, the gear division’s revenue stood at INR441 crores compared to INR405 crores in Q2 FY '25, up 9 percentage year-on-year. The EBIT for the gear division stood at INR85 crores in Q2 FY '26 compared to INR87 crores in Q2 FY '25**. The EBIT margin declined to 19.2 percentage in Q2 FY '26 compared to 21.5 percentage in the same quarter last year**, primarily due to the increase in employee costs and change in the product mix (catalog products, it is 54% and engineered products, it is 46% for Q2.) with respect to engineered and catalog products. EBIDTA mgn of 25 % - Once the turnover picks up in the second half as what CMD has said, the margin of whatever we have projected definitely is achievable.

MHE - Our MHE division continued its strong growth trajectory with 33% year-on-year revenue growth in Q2, supported by robust demand and increased execution. This performance is driven by a healthy order book, largely from power, cement, mining and port sectors. Revenue for the quarter was INR137 crores compared to INR103 crores in Q2 FY '25, up 33 percentage year-on-year. The EBIT for MHE stood at INR35 crores compared to INR26 crores in Q2 FY '25. The EBIT margins improved to 25.7 percentage, up from 25.4 percentage in Q2 FY '25.

Confident on Rev Forecast for FY 26 - To conclude, we are confident of achieving our annual guidance of achieving consolidated revenue of INR2,650 crores and EBITDA margin of 24 percentage in FY '26. Our strong order book, healthy inquiry pipeline, domestic demand momentum and anticipated acceleration in international execution in H2 provide the foundation for a strong finish to FY '26.

Strategy for 50% overseas Rev by fy 30 - I would put it this way that our strategy is that we go and try and get orders to areas and territories where we have not yet focused much on, which is South America, certain countries of Europe, part of – a small part of Middle East and so forth, okay, including the fact that Russia also has a good position in the future etcetera. So there are various areas that we would like to penetrate further.

P-17B Order Update 1000 cr - See, the P-17 Alpha is just more or less about to get commissioned. Normally, what happens is the ships once they are launched and they go through the exercise of trying out all the equipment and testing all the equipment’s and once they are satisfied with the performance of the ship, after which they will normally go in for the active order – ordering of the ship as well as the equipment which will happen for the P-17 Beta or Bravo. And they will place orders with the shipyards. We are expecting as of now that in the third quarter of this year, the tenders would be floated for the ships after which, once the shipyards get the order, they will then contact us for the requirement of the gearboxes. We are expecting that by Q3, Q4 of FY 2027, that is next year, the orders for P-17 Bravo would get finalized.

200 cr Order Aircraft Carrier - The Aircraft Carrier, the one that has already been launched, has been quite successful. So, it had been also used in the recent war that we had with INS Vikrant, which we had with Pakistan. However, it was not fully in action where none of the aircraft from there into the foreign territories. What we find is that they will go in for this requirement very shortly. The duration – time duration that we expect would be either the last quarter of this year, which would be last quarter at FY '26 or the first or second quarter of FY '27. (date postponed).

Defence Order Pipeline - There is a project which is likely to happen soon. How soon? That we do not know, but they are NGMV, which is – yes, it is called the next-generation missile vessel. So that hopefully would get finalized soon. And right now, we are also manufacturing the units for the new generation petroleum vessels, OPVs as they call it, NG-OPVs. So these are the orders which are right now hot, and we believe that soon they will get finalized, especially the NGMV.

Q3 and Q4 Guidance (Qstn on achieving 1500 cr in H2) - See, Q3 normally has more holidays. That is number one. The other thing is normally when you try to increase the production and of course, it’s slowly and gradually increase. So always Q4 values are always higher than Q3. I presume would be also the trend this year. However, we are keen that we would try as much as possible to increase our turnover in Q3 so that Q4 becomes more and more comfortable.

Revenue number for the subsidiaries and their margins H1 – 162 cr vs 188cr, Margin 12% vs 15%

18 OEM Onboarded and Update on serial production - However, they are promising a good number of orders because there have been – most of them are saying that they are satisfied with the product that we have delivered. They had put it on trials and they seem to be happy. Okay. So we are now kind of controlling them to give us more or less. So that is the scenario rise. There are some where we have received more orders. But I would say there is nothing that we can say with confidence that these are large number of orders. We are expecting more from them, okay. Approximately a few, at least INR30 crores, INR40 crores is what we are expecting.

High Speed Gears - High-speed gears, we have tested the gears given it to the desired client. He has also witnessed it, but he has not placed further orders on us. Some are the other, he is dwindling. However, we are trying to tell him that everything has been satisfactory. Now you need to place more orders on us. So that is where the position lies. But we are reasonably confident that in a month or two, we will receive some orders further.

Deployment of 900 cr Fund - As of now, there is nothing on the horizon. However, if anything comes up, naturally, everyone will be informed about it.

[ranvir]

Elecon Engineering -

Q2 FY 26 results and concall highlights -

Revenues - 578 vs 508 cr, up 13 pc
Gross margins @ 43 vs 45 pc
EBITDA - 126 vs 112 cr, up 12 pc ( margins @ 20.5 vs 21.8 pc )
PAT - 88 vs 88 cr

Segmental results -

Gears Division -

Revenues - 441 vs 405 cr, up 9 pc
EBIT - 85 vs 87 cr ( due higher employee costs, accelerated depreciation on recently capitalised asset )
Fresh Order Intake - 497 vs 432 cr, up 15 pc
Open orders @ 771 vs 627 cr, up 23 pc

Seeing steady demand coming from domestic power, steel and cement industries. Enquiry levels remain healthy across domestic and international markets

The overseas business did see some slowdown in orders mainly because of volatile geo-political situation in the ME

Material Handling division -

Revenues - 137 vs 103 cr, up 33 pc
EBIT - 35 vs 26 cr, up 35 pc ( due better product mix, greater share of sales from after mkt business )
Fresh Order Intake - 191 vs 104 cr, up 84 pc
Open orders @ 455 vs 339, up 34 pc

Aim to incline their share of exports to 50 pc of company’s revenues by FY 30 ( working on improving their relationships with global OEMs )

Good inflow of fresh orders in both divisions is a key indicator of business’s healthy future

Company’s exports business reported flattish revenues across both its business segments. Order executions were delayed in key markets due geo-political disruptions. Exports are expected to pick up meaningfully wef H2. Even the domestic demand is getting stronger

Better revenue visibility in H2 ( due strong order inflows ) should help in better absorption of fixed costs and expansion of EBITDA margins

Cash on books @ 600 cr - allowing them flexibility to navigate macro uncertainties, pursuing inorganic opportunities

Capex budget for next 3 yrs ( till FY 28 ) is estimated @ 450 cr

Committed to achieving an annual revenue of 2650 cr with an annualised EBITDA margin of 24 pc ( that would mean an absolute EBITDA of Rs 636 cr vs LY’s EBITDA of 543 cr - a growth of 17 pc )

Company shall incrementally focussing on LatAm, Russia, ME and EU for their exports business

Gear boxes for marine applications can be a high growth area in future due Govt’s focus on Naval modernisation and ship building in general

Sugar sector is also seeing good signs of recovery. Should see good business in this sector in FY 27 - as suggested by fresh order flows ( FY 26 should continue to remain tepid )

Company’s export margins have always been better than their domestic margins - should remain like so in future as well

Disc: holding, biased, not SEBI registered, inclined to add more, not a buy / sell recommendation, posted for educational purposes

[ranvir]

Deleted the post

Had posted CG Consumer Electrical’s Q2 summary here

[ranvir]

Elecon Engineering -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 552, up 4 pc
EBITDA - 109 cr, down 23 pc ( margins @ 19.8 vs 27 pc - steep margin contraction )
PAT - 72 cr, down 33 pc

Order Intake @ 701 cr, 7 pc YoY

9M FY 26 outcomes -

Consol revenue and EBITDA in 9M results include a one time income from arbitration settlement in the material handling division, worth Rs 25 cr

Revenues - 1620 cr, up 13 pc
EBITDA - 365 cr, up 5 pc ( margins @ 22.5 vs 24.3 pc )
PAT - 335 cr, up 19 pc ( also includes MTM gains on investments previously made by the company )

Order intake in 9Ms @ 2003 cr, up 15 pc YoY

Total open order book as on 31 Dec stands @ 1372 cr vs 1105 cr as on 31 Dec 24

Segmental performance -

Gears -

Revenues - 429 cr, up 1.3 pc
EBIT- 78 vs 118 cr, down 34 pc ( margins @ 18.2 vs 27.8 pc )
Q3 Order intake @ 464 cr, down 1.1 pc
Open order book @ 811 vs 684 cr, up 19 pc

Sharp contraction in margins due - hikes in employee costs + change in product mix

Continue to witness healthy demand from Steel, Cement, Power, Steel and MHE industries. Healthy open orders and encouraging inquiries levels provide good visibility and confidence for revenue improvement and recovery in margin going forward

MHE -

Revenues - 123 cr, up 16 pc
EBIT - 25 vs 33 cr ( margins @ 20 vs 31 pc )

Q3 order intake @ 237 cr, up 28 pc
Open order book @ 562 cr, up 28 pc

Margins were affected adversely due unfavourable product mix and steep salty hikes

A healthy open order book and strong inquiry pipeline provide confidence for improved performance ahead

Geography wise sales mix -

Q3 - Domestic : International @ 431 cr : 131 cr
9M - Domestic : International @ 1620 : 1429 cr

Product wise sales mix -

Q3 - Gears : MHE @ 429 cr : 123 cr
9M - Gears : MHE @ 1227 cr : 393 cr

Open order book - Gears : MHE @ 811 cr : 561 cr
9M order intake - Gears : MHE @ 1441 cr : 562 cr

Gear boxes for marine applications can be a high growth area in future due Govt’s focus on Naval modernisation and ship building in general

Fresh order intakes in H1 were relatively slow. Have picked up in H2

MHE division’s growth led by Power, Cement, Mining, Fertilisers and Ports sector

Gear division’s revenues in Q3 were hurt by timing related order delays from customers + customer led execution deferments

Expecting faster conversion of orders to execution in Q4 - leading to better consolidated performance going forward

Cash on books @ aprox 600 cr

Capex from FY 26 to 28 budgeted @ 400 cr

**Revenue guidance @ ( - ) 5 pc vs earlier guidance **
EBITDA guidance @ ( - ) 2 pc vs earlier guidance

Going forward, expecting orders to pick up from power, steel and sugar sectors. Enquiry levels are already healthy

Not looking at any inorganic acquisition opportunities for the time being

Earlier revenue guidance for FY 26 was @ 2650 cr. New guidance @ 2540 cr. Earlier EBITDA margin guidance @ 24 pc. New guidance @ 22 pc ( assumption - that would mean an absolute EBITDA of 560 vs 543 cr YoY )

Company commands 40 pc mkt share for their products in India ( among the organised players )

Do not intend to enter the EPC business. Shall continue to execute the material supply and maintenance business

Have lost 30 - 40 cr in revenues in the gears division in Q3 due customers deferring the delivery schedule

Revenue mix between engineered ( custom made ) : standard ( catalogue ) products @ 52 : 48. Custom made products command higher margins

Company supplies its products to 18 OEMs in the overseas mkts in addition to direct supplies

GMs @ 43 pc in Q3 were the lowest in last 5 yrs ( vs an avg of 47-49 pc that the company normally clocks ). Bulk of this is because of adverse product mix. Should see decent recovery going forward. Company did supply to Indian Navy in Q3 @ lower margins. Once they become an established supplier, the margins on supplies to Indian Navy shall expand

Expecting bigger orders from IN in FY 27 ( for equipment supplies to new generation A/C carriers and Corvetts )

Adjusted for the IN supplies, the margins in the gears divisions would have been higher by 2-3 pc

Company’s order booking run rate in FY 26 is better than Qtly revenue run rates for current FY. This is because, most of the order intake happened for FY 27

Confident of achieving the revised guidance for current FY given out in the current concall

Bullish on their exports business to ME + EU. Don’t foresee acute competition from China as company’s reputation wrt after sales service is better than Chinese players

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes