Elecon Engineering shares sank 17 percent in trade on July 18, after the Vijay Kedia portfolio stock reported a poor earnings show for the quarter ended June.
However, after sinking to an intraday low of Rs 1,092, the shares recouped most of their losses to trade at Rs 1,292 per share at 2.45 pm, lower by one percent.
Elecon Engineering's revenue dropped 5.3 percent to Rs 392 crore, as compared to Rs 414 crore from the corresponding quarter in the last year, while profit remained flat on-year at Rs 73 crore. The EBITDA margin slipped by 60 basis points to 23.5 percent.
Follow our live blog to catch all the updates
The firm said that the revenue from the gear division were impacted on account of weakness in order inflow due to general electionsin Q1FY25. "We anticipate demand uptick in balance 9M of FY25 to recoup the revenue loss in Q1FY25," said the Elecon Engineering.
"This decrease is primarily due to slower order inflows during the last quarter, influenced by the general elections, which impacted both private and public capital expenditure. However, we anticipate that post-election stability and government support for infrastructure development will have a positive impact, and we remain committed to our annual guidance," said Prayasvin Patel, the company's MD.
The company continues to focus on the business of supplying products & aftermarket business for its MHE segment which has led to sharp turnaround in the profitability for this segment.
Elecon Engineering shares have jumped 74 percent over the past year, outperforming the frontline index that has gained by 25 percent during the same time period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
