Dear Shareholders,
I am pleased to present the Annual Report for 2024-25, a year defined
by resilience, strategic action, and deep commitment to our stakeholders. As we reflect on
our journey, I am proud to say we have moved beyond being a company with a strong legacy;
we have embraced transformation with clarity, courage, and conviction. We are building a
future that is more sustainable, focussed, global, and relevant than ever before.
Staying Aligned with Focus In 2025, India's
economy carried forward its strong momentum, with GDP growth estimated at around 6.2%,
supported by structural reforms, robust domestic consumption, and a strong infrastructure
push. The industrial sector expanded by 6.2%, propelled by a surge in construction
activity and higher output across key manufacturing verticals. This uptrend further
spurred demand for advanced
industrial gear solutions and material handling equipment.
The industrial world is undergoing a dynamic transformation, shaped by
evolving global supply chains, growing demand for energy-efficient solutions, rising
infrastructure investments, and the increasing adoption of smart, digitalised systems.
Amid this evolving environment, India's economic trajectory remains solid, with a
strong capex cycle and expanding domestic demand offering a compelling opportunity
landscape.
We have remained closely attuned to these macroeconomic and industrial
developments.
For over 74 years, our purpose has remained steady: to deliver
excellence and create enduring value for all our stakeholders. We recognise the trust our
partners place in us, and every gearbox and bulk material handling system we deliver
mirrors that trust, strengthened by cutting-edge technology, precision engineering, and
reliable performance. Prominence in India As India's largest industrial gearbox
solution provider with a commanding presence in the market, Elecon is synonymous with
quality, trust, and precision engineering. Our market leadership is defined by both size
and relevance. Customer loyalty drives much of our order volume. That is the strength of
our legacy and presence.
With great pride, I share that the fourth generation of our founding
family is actively involved in the business, taking on greater responsibilities and
helping steer Elecon towards continued growth — a testament to our enduring legacy of
engineering excellence spanning over seven decades. Every generation has chosen to stay
within the same business, and that continuity has provided us with unmatched depth,
wisdom, and commitment.
Our contribution to nation-building is a source of great pride,
especially in the import substitution and defence sectors. One of our most significant
milestones has been where we supplied critical gearboxes for India's first indigenous
aircraft carrier, INS Vikrant, marking a proud chapter in our journey of national service
and technological contribution.
Performance During the Past Year
Despite a challenging market environment in the first half of 2024-25,
marked by global geopolitical uncertainties and a temporary slowdown in capital
expenditure due to elections, we demonstrated resilience. Backed by an innovation-led
mindset, strong engineering capabilities, and a sharp focus on precision, we responded
with agility and foresight. A healthy order book further reinforced execution momentum,
positioning us for sustained growth across both domestic and international markets.
Consolidated Financial Performance
We posted consolidated performance in 2024-25, with a revenue of '2,227
Crores, reflecting 14.9% year-on-year growth, in line with our annual guidance. EBITDA
stood at '543 Crores with a robust EBITDA margin of 24.4%, while PAT came in at '415
Crores, delivering a PAT margin of 18.6%. The consolidated Order Book as at March 31,2025,
stood at '948 Crores, an increase from '796 Crores as at March 31,2024, representing a
19.1% growth.
Industrial Gear Division
Our Gear division anchors our topline, generating '1,763 Crores in
revenue, representing a 5.6% increase year-on- year. Despite a moderation in margins due
to product mix, EBIT stood at '435 Crores, reflecting a margin of 24.7%. Serving critical
industries such as steel, cement, power, mining, and marine, we design everything across
sectors. Decades of investment in advanced machinery and strong in-house R&D place us
alongside global peers. we design everything across sectors.
Material Handling Equipment (MHE) Division
The MHE division, the foundation of our company, sustained strong
growth and delivered an impressive performance during the year. Revenue surged 72.8% to
'464 Crores, with EBIT more than doubling to '132 Crores reflecting a margin of 28.4%.
This division's performance reflects successful execution of strategies, increasing
demand and our ability to deliver tailored solutions to our customers.
This year has shown not only Elecon's resilience and the strength
of our business to survive challenging times but also to capitalise handsomely on
improving market conditions.
Expanding Global Horizons
We are steadily progressing towards our long-term strategic goal of
achieving a balanced contribution from international markets to our consolidated revenue
by 2029-30. In 2024-25, our international business accounted for approximately 23% of
consolidated revenue, amounting to '517 Crores. This performance reflects our sharp
strategic focus, strong operational execution, and ability to deliver value in an evolving
global landscape.
Our Industrial Gear Division made remarkable strides, with our
international OEM business crossing our projections for the year. This strong performance
positions us for even greater growth in 2025-26, particularly as we deepen our presence in
developing markets that value cost-effective, high-performance engineering solutions.
In a significant step forward, we have also forayed into exports under
the MHE division. This was made possible by securing a major international order, a
development that opens exciting new avenues for growth in global markets. Investing in Our
People Our team is central to our transformation. We have proactively implemented cultural
change initiatives focussed on strengthening our core values and beliefs, promoting a
growth mindset, and cultivating a positive and inclusive workplace culture. These efforts
aim to establish an environment where every individual feels valued, empowered, and
motivated to give their best. Our objective is to transform Elecon into an inspiring
workplace where talent is acknowledged, ideas thrive, and leadership is continually
developed to address future challenges.
"As India's largest industrial gearbox solution provider with
a commanding presence in the market, Elecon is synonymous with quality, trust, and
precision ^engineering."
A Strong Commitment to Sustainability
We believe sustainability is an integrated philosophy that shapes our
operations, culture, and growth. Environmentally, we have achieved a key milestone with
SBTi approval for our science-based climate targets, committing to reducing absolute Scope
1 and 2 greenhouse gas emissions by 54.6% by 2032-33, compared to the 2022-23 baseline.
This commitment reflects our clear focus on delivering value to all stakeholders through
energy efficiency and responsible manufacturing.
Our dedication to sustainability extends well beyond merely reducing
emissions. We are also committed to enhancing employee well-being, responsibly
managing resources, and building strong connections with the
communities we support.
Our governance framework, rooted in accountability, integrity, and
transparency, ensures that we uphold stakeholder trust, and make well- informed decisions
aligned with longterm objectives.
For us, sustainability signifies preparing for the opportunities of
tomorrow. By increasing our reliance on renewable energy, minimising waste, and
consistently enhancing operational efficiencies, we are constructing a resilient
foundation for long-term, sustainable growth.
Looking Ahead
The road ahead is rich with opportunity. Rising capital investments,
expanding export potential, increasing demand for intelligent material handling, and the
growing shift towards high-efficiency gear solutions are reshaping our industry. We are
ready. With sharper focus, stronger fundamentals, and a deeply committed team, we move
forward with confidence and clear purpose.
On behalf of the Board, I extend my sincere thanks to our shareholders,
customers, partners, and employees.
Your continued trust and support fuel our journey. Together, we are
building a future-ready Elecon that is rooted in legacy, powered by innovation, and driven
by sustainable progress.
Best regards,
Prayasvin B. Patel
Chairman & Managing Director