Hemendra kumar C. Shah, CFO, Elecon Engineering Co. Ltd. has done M.Com., LL.B. From Gujarat University, Ahmedabad; AICWA from the Institute of Cost Accountants of India, Kolkatta; ACS from the Institute of Company Secretaries of India, New Delhi and CAIIB from the Indian Institute of Bankers, Mumbai. He has an experience of over 30 years. Earlier, he was Company Secretary in ONGC for about 2.5 years and D.G.M. (A/c) Adani Enterprise Ltd., Ahmedabad for about 7.5 Years.
Elecon Engineering Company Ltd. pioneered the manufacture of material handling equipment. During the past six decades, Elecon has designed and implemented several landmark projects in India as well as abroad. From a modest start of design and manufacture of Elevators and Conveyors, it has grown over the years to be known as a pioneer in bulk Material Handling Equipment in India. During the span of more than six decades, Elecon has encompassed all the major core sectors through its supplies of highly sophisticated equipment bearing ample testimony of the symbolic mark of Elecon's unbeatable technology. Elecon has thus, made its presence felt through consistent and satisfactory performance of its equipment in such core sectors as Fertilizers, Cement, Coal, Power, Chemical, Steel and Port mechanization etc., across the country.
Speaking with Yash Ved of IIFL, Hemendrakumar Shah says, “We are planning to raise funds to repay high cost debt, to provide for capex requirement for the next 2-3 years and to make available funds for possible acquisition.”
Brief us about your financials?
The company has announced its unaudited financial results for the quarter ended on 31st March, 2012. The turnover for Q4 FY12 is at Rs. 4.42bn as against Rs. 3.50bn in Q4 FY11, representing a growth of 26%.
Profit before tax increased from Rs. 997mn in FY 11 (excluding gain on sale of investments Rs. 207mn) to Rs 1.09bn in FY 12, representing a growth of 10% and Net profit after tax increased from Rs 672mn in FY11 (excluding gain on sale of investments Rs. 207mn) to Rs 696mn in FY12, representing a growth of 4%.
Comment on your FY12 performance?
The Material Handling Division has achieved a significant growth of 16% in turnover and the Gear Division has also shown an encouraging growth of 10% in turnover.
We look forward to continuing this trend.
Brief us about order bagged from NTPC?
The company’s MHE Division has procured one order worth Rs 2.72bn from NTPC for Ex-works supply of Coal Handling Plant Package and for Erection & Commissioning of Coal Handling Plant Package for Mouda Super Thermal Power Project Stage II (2x660MW).
What is your current order book position?
Our current order book stands at Rs 12.10bn for FY12.
We have booked new orders of Rs 3.81bn. The pending order book position as of 11th May is Rs 15.22bn.
Comment on your Capex plans?
Our current Capex stands at Rs 1.11bn. Out of that, we have spent about Rs 870mn and the balance Rs 240mn will be used for routine capex. The total capex may work out to ~Rs 450mn to Rs 500mn for FY13. Our capex should be used for plant and machinery and infrastructure facilities.
Are you planning to raise funds?
We are planning to raise funds to repay high cost debt, to provide for capex requirement for the next 2-3 years and to make available funds for any good opportunity of acquisition.
Are you looking for any acquisitions?
Acquisition is an ongoing process. We are looking for good opportunities and may do an acquisition in the domestic market or even abroad.
What is your current debt?
Our current debt stands at Rs5.39bn.