Accelerating Growth with Purposeful Shift Amidst a rapidly evolving
environment, we continued to demonstrate agility during 2024-25, translating our strategic
priorities into meaningful outcomes.
Dear Shareholders,
The year gone by was pivotal in steering Elin Electronics towards a
stronger and more resilient future. Amidst a rapidly evolving environment, we continued to
demonstrate agility during
2024-25, translating our strategic priorities into meaningful outcomes.
By sharpening our operational discipline, expanding product portfolio, and bolstering
customer centricity, we kept our Company on the trajectory of scalable and sustainable
value creation. The year also opened up opportunities to expand in multiple directions,
accelerating growth momentum, and positioning us to capitalize on emerging opportunities.
Operating in a Changing Global and Domestic Landscape
The broader context of 2024-25 was marked by persistent global economic
volatility, shifting supply chain dynamics, and ongoing geopolitical uncertainties.
Against this backdrop, India emerged as an increasingly attractive hub
for global manufacturing. Policy tailwinds, including the Government's thrust on
incentivizing local production and curbing low-value imports through regulatory
interventions, such as BIS and QCO, further strengthened the opportunity landscape for
domestic manufacturing. These structural shifts created a conducive macro environment for
us to deepen our relationships with OEMs, diversify our portfolio, and We delivered a
resilient performance across key financial and operational metrics. We concluded the year
with operating revenue of 1,180 Crores, well within our guided range of 1,165 1,200
Crores. prepare for scale, fortifying our momentum over the year.
Steady Progress across Key Metrics
Building on the strategic traction gained through this convergence of
macroeconomic opportunity and organisational readiness, we delivered a resilient
performance across key financial and operational metrics. We concluded the year with
operating revenue of 1,180 Crores, well within our guided range of 1,165 1,200 Crores.
EBITDA for the year stood at 52 Crores, slightly below our initial guidance of 60 65
Crores, reflecting our conscious and forward-looking investments in automation, capacity
enhancement, and product development to bolster our long-term competitive edge.
Our net cash position at year-end was 75 Crores, and our cash capex
for the year was 40 Crores, in line with the plan. Net working capital days stood at 52,
slightly above our internal benchmark, but well within prudent thresholds.
While there were areas of under-delivery, particularly around EBITDA
margins, we draw confidence from the recovery witnessed in the second half of the year.
The momentum built during this period provided a solid platform for margin expansion and
improved profitability in 2025-26.
Enhancing Efficiencies through Operational Excellence
Complementing our strategic investments and financial discipline, in
2024-25, we formed a dedicated Operations Excellence team with the mandate of
institutionalizing process improvements across plants. By harnessing Industry 4.0
technologies, automation, and proven industry best practices, we achieved annualized cost
savings of 6 Crores, with a clear pathway to expand this to 8 9 Crores in 2025-26. These
structural improvements are critical enablers of our medium-term goal of delivering
7–7.5% EBITDA margins by 2026-27.
Strategic Evolution of Business Segments
We continued to evolve our business segments in alignment with market
dynamics and long-term objective of strengthening profitability. One of the most
significant developments this year was the expansion and rebranding of our Home Appliances
segment. Originally focused on small appliances, the portfolio now encompasses
high-realization, medium-sized products such as air fryers, OTGs, chimneys, and coolers.
With per-unit realizations ranging from 2,100 5,000, substantially higher than the
current 300 600 range, the segment isOne of the most significant developments this year
was the expansion and rebranding of our Home Appliances segment. Originally focused on
small appliances, the portfolio now encompasses high-realization, medium-sized products
such as air fryers, OTGs, chimneys, and coolers.
With per-unit realizations ranging from 2,100 5,000, substantially
higher than the current 300 600 range, the segment is poised to drive improvement in both
topline quality and margin profiles over time.poised to drive improvement in both topline
quality and margin profiles over time.
To support this transition, we initiated groundwork at our upcoming
manufacturing facility in Bhiwadi, which will serve as the core production hub for this
segment. Expected to be operational by March 2026, the plant is projected to generate
revenues of 140 Crores in 2026-27 and 250 Crores in 2027-28. Its full potential stands
at 550 600 Crores, with an expected steady-state EBITDA margin of 7–7.5% and ROCE of
20% (pre-tax).
The Fans business saw healthy traction during the year, backed by
capacity enhancement and customer diversification.
A key milestone was the commencement of exports from our Goa facility
– marking our first steps toward building a robust international presence.
The Lighting segment, however, witnessed some near-term challenges
following the strategic realignment of a major customer, who entered into a joint venture
with a competing manufacturer. This development is likely to result in a revenue reduction
of 30–35 Crores in 2025-26.
However, it has also created fresh avenues for collaboration with new
OEMs that prefer non-competing partners, something we are actively pursuing.
The FHP Motors business continued to deliver steady performance, with
most volumes absorbed through internal consumption in integrated appliance offerings. This
segment remains a critical enabler for cost optimization and value addition through
vertical integration.
Expanding Global Horizons
Drawing on the foundation of product diversification and operational
scale, we began laying the path for our global foray. International OEMs are increasingly
seeking to de-risk their supply chains and localize production in India. We are engaged in
exploratory discussions with several of them, particularly for export to the U.S. and
Europe. While still in its early stages, this strategic direction reflects our long-of
evolving from a trusted domestic manufacturer to a globally relevant OEM partner.
Committed to Responsible Growth
Our strategic growth ambitions are firmly rooted in responsible
business practices. Sustainability continues to shape our operating model and our value
proposition. We are embedding ESG principles across the value chain from energy-efficient
product designs to environmentally conscious manufacturing practices. Our upcoming Bhiwadi
facility exemplifies this commitment, with sustainability being integrated as a core
design principle, ensuring responsible use of energy, water, and resources.
Our strategic growth ambitions are firmly rooted in responsible
business practices. Sustainability continues to shape our operating model and our value
proposition. We are embedding ESG principles across the value chain – from
energy-efficient product designs to environmentally conscious manufacturing practices.
As we move forward, our focus remains firm on our long-term objective
to become the most trusted one-stop manufacturing partner for high-value, high-volume
appliances delivering superior quality, reliability, and cost efficiency.
The Road Ahead
Looking ahead to 2025-26, we have set a revenue guidance of 1,350
1,400 Crores, representing15–18% growth over 2024-25. We expect EBITDA margins to
improve to 6 6.5%, driven by a favorable product mix, enhanced scale, and cost
optimization initiatives. A planned capex of 100–125 Crores will be directed
primarily toward the Bhiwadi plant and capacity upgrades across existing operations.
As we move forward, our focus remains firm on our long-term objective
to become the most trusted one-stop manufacturing partner for high-value, high-volume
appliances – delivering superior quality, reliability, and cost efficiency.
Closing Note
As we reflect on the made in 2024-25, I extend my sincere gratitude to
our employees, customers, partners, and shareholders for their continued trust and belief
in our vision. We have laid a strong foundation – now is the time to build upon it
with purpose, precision, and perseverance. With a clear direction, seamless execution, and
unflinching dedication of our teams, we are poised to accelerate our momentum across
diverse fronts, staying true to our core objectives and our commitment to stakeholders.
Best regards,
| Kamal Sethia |
Managing Director |