ELGIEQUIP — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

MR. KAMLESH KOTAK – ASIAN MARKETS SECURITIES LIMITED

Welcome to ELGI Equipments 3Q&FY25, 9 months earnings call hosted by Asian Market SecuriƟes.

We have pleasure inviƟng Mr. Jairam Varadaraj, Managing Director represenƟng the company.

I request Mr. Jairam to take us to the presentaƟon giving an overview of the ﬁnancial performance and then we shall begin the Q and A session.

Over to you, sir.

Thank you.

Sure.

Thank you.

Jayaram Sir.

ParƟcipants, please use the raise hand opƟon or you may drop your quesƟon in the Q and A box.

We'll wait for the queue to assemble for a couple of minutes and then we'll probably take the ﬁrst quesƟon.

So, ﬁrst quesƟon we have is from the line of Mr. Harshit Patel.

Harshit, you may unmute yourself and go ahead with your quesƟon.

HARSHIT PATEL

Hi, thank you very much for the opportunity, sir.

So, my ﬁrst quesƟon is on our US and Europe markets.

I think despite the macroeconomic challenges in Europe, we have sƟll posted a very decent top line growth over there.

So what is enabling this?

And second, are we on track to break even in both these geographies in FY26?

I think Europe we will break even for the ﬁrst Ɵme in this new expansion plan and were supposed to again turn proﬁtable in the North American market.

So, if you could update us on this please.

Moderator · Conference Operator

Thank you Harshit.

Sir, next quesƟon.

Next quesƟon is from the line of Mr. Chaitanya.

Chaitanya, you may unmute yourself and go ahead with your quesƟon.

CHAITANYA

Hello.

Thank you, sir.

Good morning.

My quesƟon is on the.

Am I audible?

Moderator · Conference Operator

Yeah, you are audible?

CHAITANYA

Yeah.

Okay, so my quesƟon is on the aŌer-sales market share, I think 15%, if my numbers are correct, 15% to 20% of our business is from the aŌer sales business that we provide.

So, any indicaƟon on when are we expecƟng to increase that, if at all?

And I think margin also in that front will be helpful.

Moderator · Conference Operator

Thank you.

Chaitanya, Next quesƟon we have is from the line of Ritvik.

Hi Ritvik, you may go ahead with your quesƟon.

RITVIK

Yeah.

Hi, Good morning sir.

Yeah, so a few quesƟons.

So ﬁrstly, you menƟoned one oﬀ expenses in Q3. Rs.

4 crores and 18 crores.

So safe to say that majority of this is non-recurring.

Moderator · Conference Operator

Jairam.

Sir, we can hear you.

We can hear Ritwik as well.

Hello?

Go ahead sir, we can hear you.

RITVIK

Yeah, Sir, I can hear you.

Can you.

Are you able to hear me?

Moderator · Conference Operator

Yeah, yeah, he can hear you.

Yeah, yeah, go ahead.

Yeah, yeah.

So.

RITVIK

So, when we are taking this product.

Moderator · Conference Operator

I think there is some problem with your audio.

I think.

Hello?

Hello, can you hear me?

Yes sir, we can hear.

Yes sir.

Yeah.

So next quesƟon we have is from the line of Manish, you can unmute yourself and go ahead with your quesƟon.

Manish.

MANISH

Yeah.

Yes, very good morning, sir.

Hope you're doing well.

Moderator · Conference Operator

Manish.

This would be your last quesƟon.

MANISH

Sure, I'll come back.

Yeah.

How much sales we would have missed because of downƟme of the GST portal?

Moderator · Conference Operator

Thank you.

Manish, next quesƟon we have is from the line of Mr. Bhavin Vetlani Bhavin.

You may unmute yourself and go ahead with your quesƟon.

BHAVIN

Good morning, Jay.

Moderator · Conference Operator

Next quesƟon we have is from the line of Mr. Vipul Kumar Shah.

Vipul, You may unmute yourself and go ahead with your quesƟon.

Vipul, I think there's some technical error at Vipul?

Next quesƟon we have is from the line of Mr. Amit Anwani.

Amit, you may please go ahead with your quesƟon.

AMIT

Hi sir, I'm audible.

Moderator · Conference Operator

Next quesƟon, we'll have it from the line of.

Manish.

Manish, you may unmute yourself and go ahead with your quesƟon.

MANISH

Yeah, thank you so much sir.

On, on conƟnuing on the Europe operaƟons and probably when I'm looking at last year's annual report so the subsidy level at Belgium was probably a loss of nearly 50 crores.

So, when we are talking of breakeven sir, are we probably looking at EBITDA level breakeven or PAT level breakeven and do you expect that pat level losses to come down?

And similar observaƟons were for even our US operaƟons where if you probably look at all the two, three enƟƟes we had reported pat loss.

So just if you can clarify on both aspects.

Moderator · Conference Operator

ParƟcipants, if there are any other quesƟons you may please use your raise and opƟon.

Yes Sir.

So, I couldn't see his hand up again and that's the reason I had to.

One second Manish.

We'll just check with the Vipul in case if his line is audible.

Otherwise, we'll allow you to ask.

Do you have a quesƟon to ask to Mr. Jairam?

You may unmute yourself and go ahead with the quesƟon.

I don't think so.

Vipul is around sir, but Salil happens to have come in.

Hi Salil.

You may unmute yourself and go ahead with the quesƟon.

SALIL

Thanks.

Moderator · Conference Operator

We have a quesƟon From UƩam Kumar.

UƩam, you may please unmute yourself and go ahead with the quesƟon.

UTTAM

Yeah, am I audible?

Moderator · Conference Operator

Yes.

Yeah, yeah.

UTTAM

Good morning sir.

Thank you for taking my quesƟon.

So ﬁrstly, on the domesƟc market just want to get further understanding with regards to are we seeing any challenges from any parƟcular sectors?

Is there any kind of slowdown infra side or all these sectors doing well could just be more color on that.

Moderator · Conference Operator

Next quesƟon we'll take from the line of.

Mr. Prathamesh.

Prathamesh, you may please go ahead with the quesƟon.

Unmute yourself and go ahead with the quesƟon.

I think there's some.

Yeah, Salil, you may unmute yourself and go ahead with the quesƟon.

SALIL

Thanks.

I hope this is beƩer now, sir.

Moderator · Conference Operator

Sir.

In the interest of Ɵme, we'll take one last quesƟon from Prathamesh.

Yeah, Pramesh, you may just unmute yourself and go ahead with the quesƟon.

You have the permission to unmute yourself and go ahead please.

I think that is what we have right now.

Sir.

Kamleshi, would you want to give a vote of thanks before we end this call?

KAMLESH

Just.

Yeah.

Before that just one quesƟon.

If you can provide some more insight about our Ɵe up with that iteraƟon for vacuum products.

How has been the progress and when we see that commercializaƟon.

So, thanks for bringing that up, Kamlesh.

So, we have completed the technology transfer.

Our team has visited, brought it in.

The indigenizaƟon has started.

So, from April, May, onwards we will have completely Indian made products into the market.

So that's on the product side.

On the organizaƟon side we have assembled the sales and service team.

They are already in contact with customers.

We have already started gaining one oﬀ orders in the market.

So, we expect to see next year as a full year.

By which we'll be able to come back and report our performance on vacuum.

Any revenue targets, sir?

Moderator · Conference Operator

Manish, we might have to end this call because we have already crossed our Ɵme limit.

You can take it online oﬄine with the team and Mr. Jairam.

MANISH

Yeah, sure, I'll do that.

Moderator · Conference Operator

Thank you.

Thank you so much.

Thank you.

All the parƟcipants. *****************