Elecon Engineering Reports Strong Growth in Cash Flow and Profitability Amid Challenges in Debt Collection

Elecon Engineering Company, a midcap player in the industrial manufacturing sector, has recently reported its financial results for the quarter ending June 2025. The evaluation changes reflect a score adjustment, moving from 20 to 18 over the past three months.
The financial data indicates several positive trends for Elecon Engineering. The company achieved its highest operating cash flow at Rs 432.30 crore, demonstrating consistent growth in cash revenues from its business operations over the last three years. Profit After Tax (PAT) for the quarter stood at Rs 107.28 crore, marking a significant year-on-year growth of 46.2%. Additionally, net sales reached Rs 490.57 crore, with a year-on-year increase of 25.03%. Profit Before Tax (PBT), excluding other income, was reported at Rs 100.22 crore, reflecting a year-on-year growth of 25.72%. The earnings per share (EPS) also reached a peak of Rs 7.82, indicating enhanced profitability for shareholders. Furthermore, cash and cash equivalents were at their highest in the last six half-yearly periods, totaling Rs 358.44 crore, suggesting an improvement in short-term liquidity.

However, the financial results also highlight some challenges. The debtors turnover ratio was recorded at its lowest in the last five half-yearly periods at 3.63 times, indicating a slowdown in the pace of settling debts. Additionally, while non-operating income reached a high of Rs 26.43 crore, its sustainability may be in question.

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