New Delhi, July 10 (IANS) Elecon Engineering Company Ltd on Friday reported a sharp 60 per cent year-on-year decline in its consolidated net profit for the first quarter of FY27, as margin pressure weighed.

The company’s consolidated net profit stood at Rs 70.4 crore during the April-June quarter, compared with Rs 175 crore in the corresponding period of the previous financial year, according to the exchange filing.

On a standalone basis, the company’s net profit declined 75.5 per cent year-on-year to Rs 58.57 crore in the April-June quarter from Rs 238.92 crore in the corresponding period last year.

While revenue from operations rose 6.11 per cent year-on-year to Rs 521 crore, up from Rs 491 crore in the year-ago quarter.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) declined 16.3 per cent to Rs 109 crore from Rs 130 crore a year earlier.

Total income rose 4.9 per cent year-on-year to Rs 542.47 crore in the April-June quarter, from Rs 517 crore in the corresponding period last year.

Moreover, the EBITDA margin contracted to 21 per cent in the reporting quarter from 26.6 per cent in the corresponding quarter last year, indicating higher operating cost pressures despite growth in revenue.

Following the announcement of earnings, shares of Elecon Engineering fell nearly 6 per cent to an intraday low of Rs 482.30 on the BSE at around 2:55 pm on Friday. The stock has touched a 52-week high of Rs 682.90 and a 52-week low of Rs 352 on the exchange, while saw a gain of about 6 per cent year to date.

Additionally, the stock has declined more than 20 per cent over the past 12 months.

Apart from that, the company said its Board of Directors had recommended a final dividend of Rs 1.50 per equity share of face value Re 1 each.

–IANS

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