Multibagger Stock: Elecon Engineering Share Price Soar 15 Percent on Post Q1 Results
Elecon Engineering Share Price
Elecon Engineering, a company in the engineering sector, reported its financial results for the June quarter on Tuesday, July 11.
The announcement had a significant impact on the company’s shares, causing them to surge by approximately 15 percent. During this quarter, Elecon Engineering witnessed notable growth in both its net profit and revenue.
The net profit for the June quarter demonstrated substantial growth, reaching Rs 73 crore. This represents a remarkable increase of 72.6 percent compared to the corresponding quarter of the previous fiscal year, where the net profit stood at Rs 42 crore.
Additionally, Elecon Engineering’s revenue from its business operations during the quarter ended June 30 amounted to Rs 414.3 crore.
This showcases a robust growth rate of 26.4 percent in comparison to the revenue of Rs 327.7 crore generated in the corresponding quarter of the previous financial year.
The impressive financial performance of Elecon Engineering in the June quarter highlights the company’s ability to generate higher revenue and significantly increase its net profit. These positive results contributed to the significant surge in the company’s shares after the announcement.
Elecon Engineering, in its report for the first quarter of FY23, revealed notable improvements in its operating profit (EBITDA) and EBITDA margin.
The operating profit surged by 54 percent, reaching Rs 100 crore, showcasing the company’s ability to enhance its operational efficiency and profitability.
Furthermore, the EBITDA margin increased by 4.40 percent, reaching 24.1 percent, indicating improved profitability and cost management.
The company experienced a significant boost in its income from other sources during the June quarter, doubling compared to the previous period.
This increase in income contributed to the overall financial growth of the company. Additionally, Elecon Engineering successfully reduced its interest expense by half, indicating effective financial management and cost control measures.
Another positive aspect of Elecon Engineering’s performance in the June quarter was the reduction in the cost of raw material consumed.
The cost decreased by 35 percent compared to the same quarter in the previous year, highlighting the company’s ability to optimize its sourcing strategies and potentially benefit from favorable market conditions.
Examining the performance of Elecon Engineering’s various business segments, it is evident that both the transmission equipment and material handling equipment segments achieved notable revenue growth.
The revenue from the transmission equipment segment grew by 26 percent, reaching Rs 361 crore, while the material handling equipment segment also experienced a 26 percent increase in revenue, reaching Rs 54 crore.
These results showcase the company’s strength across different business segments and its ability to capture growth opportunities in multiple areas.
Overall, Elecon Engineering demonstrated impressive financial performance in the first quarter of FY23. The company experienced significant improvements in operating profit, EBITDA margin, income from other sources, and segment-wise revenue growth.
These positive outcomes reflect Elecon Engineering’s efforts to enhance operational efficiency, reduce costs, and capitalize on market opportunities, positioning it for further growth and success in the future.
Alcon Engineering reported a significant increase in its order intake for the first quarter, reaching Rs 497 crore, representing a growth of 22%.
Additionally, the company currently maintains a total order book valued at Rs 793 crore. Looking ahead, Alcon Engineering has projected a revenue of Rs 2,000 crore for the fiscal year, aiming for an EBITDA margin of 22%.
Following the announcement of robust financial results for the June quarter, Alcon Engineering experienced a remarkable surge in its share price, with shares rallying over 15%.
At the close of trading, the company’s shares reached Rs 722.35, marking a substantial increase of 14.33%. These positive market responses reflect investor confidence in Alcon Engineering’s performance and outlook.
Disclaimer: The opinions and investment advice shared by investment experts on sharemarket.org.in are solely their own and do not reflect the views of the website or its management. We strongly recommend users to consult certified experts before making any investment decisions. It is important to seek professional guidance for informed investment choices.
