Eimco Elecon(I) Management Discussions


This FY 23-24, Coal India Limited, the largest coal producer in India, could increase their production over the last FY by over 10 percent (to 773 MT against 703 MT in 2022-23). On the other hand, SCCLs annual production improved marginally over the last FY to 70 MT against 67 MT. Captive and commercial coal blocks produced 154 MT as against 123 MT in the last FY. Thermal power plants started 2024-25 with 50.7 million tonnes of coal stock, about 37% higher year-on-year. For the FY 2023-24, total coal and coke imports increased by 8% over last F.Y. to 268 MT. However to reduce coal import bill the Coal mining industry needs to enhance its capacity rapidly. In 2019, our Parliament passed a bill that removed end-use restrictions for participating in coal mine auctions and open up the coal sector fully for commercial mining by domestic and global companies. The government offered major rebates on revenue share to winners of commercial coal block auctions in order to draw investments from local and global miners. So far 107 coal blocks have been successfully auctioned with peak rated capacity of 250 MT /year approx. Out of these 59 have been actually allocated so far. (till 31/03/2024).


Coal is the largest source of electricity in the India. Thermal power plants generate over 70% of Indias electricity. The renewable energy uses and alternate fuels are growing in India but the demand increase in power sector is much higher to be compensated by them only. The use of electrical automotive may further accelerate the demand for coal. This, combined with the growth of coal-consuming industrial sectors like steel, is why the solid fuel source will continue to be integral to Indias economy in the next couple of decades. Our equipment demand largely depends on the underground (UG) coal mining production. UG coal is superior in quality compared with Opencast (OC) and reduces the import burden for higher grades of coal. Further, UG mining is minimally invasive on land, detours land acquisition, avoiding its degradation, environmentally clean, and is society friendly. India has huge untapped potential for UG mining, with extractable reserves beyond 300 m depth. Around 70% of the countrys coal reserves are amenable to UG mining, which delivers several advantages. So far, the primary reason for slow-pedalling UG mining was loss-incurring production due to conservative and manual operations, which lead to low productivity. However, now the technology upgradation to blast free technology has opened up new avenues. After the downturn in output from the UG mining segment, benefited by technological progress undertaken over the years, Coal India Limited now aims to increase production of UG coal from ~35 million tonne (MT) in fiscal 2023 to 100 MT in fiscal 2028 and 120 MT in fiscal 2030. Currently, UG Coal forms

~4% of total coal production and the ministry aims to take the same to 10% by 2030.


In the underground mining sector, the coming days will witness increase in demand for equipment catering to blast-free technology in underground coal mines and bigger size loaders and low profile dump trucks in the metal mines namely Zinc, Copper and Uranium etc. There has been the spectacular rise of the mine development operator (MDO) mode of mining.

Subcontracting of mine operations has been a major feature of the coal industry for more than two decades now. It has also brought considerable financial and operational efficiencies to Coal India.


Intermediate technology continues to be the backbone of underground production with around 65 percent of the total UG Coal production being met by SDLs and LHDs. Our indigenously developed CM package is under trial and will be established in the coming days. Also the introduction of high capacity underground loaders for the metal mines will add to our revenues. Our bigger size LHD of 7 Tone and 10 Tone capacities have been established successfully. Recently, we have received and executed several orders for bigger size diesel loaders from UCIL and other leading mine contractors.


The main risk and concern of the Company remain that it will continue to depend more on Government clients for some more time till the private coal blocks for commercial and non-commercial usages attain their peak production capacities.


The Indian Construction Equipment Market was valued at US$ 7.25 Bn. in 2022 and is estimated to reach a value of US$ 13.17 Bn. in 2029, the market size is estimated to grow at a CAGR of 8.9% over the forecast period.

Indias high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development and Investment as main priority and aiding the progress.

The Indian construction equipment industry has shown a robust growth in equipment sales during this year surpassing last year figure in 10th month itself. As per the ICEMA report this is due to rising domestic sales with overall Y-O-Y growth in CE sales and is underpinned across all segments viz 27% for earth moving, 39% for material handling equipment, 34% for road construction and 17% for material processing equipments.

The governments focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway.

Under the National Infrastructure Pipeline (NIP), projects worth INR 108 trillion (US$ 1.3 trillion) are currently at different stages of implementation, the road construction per day has reached a record high of 42 kms per day.

Seeing all these we can foresee that the atmosphere for construction equipments is conducive for growth in coming years.


Stable Government and major focus on Infrastructure development/investment in coming years there is always opportunity for all construction equipments including Piling Rig. We need to increase our market reach, focused customer service & quality consciousness are the key for sustainability in this segment. Rental equipment is one area of opportunity where focus can be put.

Majorly this piling rigs segment is dominated by Chinese rigs and seeing the Government initiatives all construction companies are laying emphasis on manufacturing in make in India. There is a global regulatory pressure on equipment manufacturers in coming years to introduce electric and hybrid construction vehicles over conventional ones for construction equipments but as of now emphasis is for excavator and dumpers and not for piling rigs.

Chinese OEMs are biggest threat always, in particular they are displaying a keen interest in electrifying equipments by incorporating sizable batteries.


We have now made significant inroads by manufacturing

Piling rig under make in India initiative with the technical collaboration with CZM from USA. The performance is better when compared to rivals in the market with the added features like a high torque to weight ratio for extremely high productivity with minimal fuel consumption, an anti-shock valve for smooth hard rock cutting with extra protection of hydraulic components during spin-off for long hydraulic component life, Cost-effective replaceable rotary internal locks; a unique Kelly bar with special Hardox and edge over competitors.

We are adding further models to this range available with us now to meet market demands for some particular applications and increase the product portfolio.


The Government of India has made infrastructure creation a major pillar for sustainable growth and in promoting ‘Make in India initiatives which is main driver for all the investment being made. The Indian construction equipment (CE) industry, which aspires to become the worlds second largest by 2030 is poised for remarkable expansion which is a good sign for future.

The outlook is very positive for next decade with India posing for big dream Viksit Bharat 2047.


The Companys internal control systems are adequate, considering size and nature of operation of the Company, to meet regulatory / statutory requirements.


The Company attaches utmost priority to human resource development with focus on regular upgradation of the knowledge and skills of all employees and equipping them with the necessary expertise to meet the challenges of change and growth successfully. The company continuously monitors its manpower requirement to ensure that it has adequate human skills commensurate with its needs. Industrial relations of the Company continue to be cordial. As on 31st March, 2024, there were 124 permanent employees on role of the Company.


Pursuant to Schedule V(B) to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Key Financial Ratios along with detailed explanations are as follows:



2023-24 2022-23

Debtors Turnover

3.07 3.71

Inventory Turnover Ratio

1.41 1.20

Interest Coverage Ratio*

153.14 53.86

Current Ratio

3.45 4.42
v. Debt Equity Ratio


vi. Operating Margin


vii. Net Profit Margin*


viii. Return on Net Worth



* There is a change of more than 25% in Interest

Coverage Ratio and Net Profit Margin as a results increase in sales and better margin.


Revenue from Operations & Other Income for the year ended 31st March, 2024 were 24,592.47 Lakhs as compared to 18,318.31 Lakhs on 31st March, 2023. The net profit stood at 4,041.16 Lakhs (previous year

2,067.56 Lakhs).


Statements in this report on describing the Companys objectives, expectations or predictions may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could, however, differ materially from those expressed or implied.

The Company assumes no responsibility in respect of forward-looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.

For and on behalf of the Board of Directors,

Mukulnarayan Dwivedi

Prayasvin B. Patel
Executive Director Executive Director
DIN : 08442155 DIN : 00037394
Place : Vallabh Vidyanagar
Date : 18th April, 2024