Elecon Engineering's shares surged 12% to ₹492.75 on Wednesday after the company released Q2 figures. The jump follows a 10.6% revenue rise to ₹639 cr and net profit of ₹96.3 cr, both up YoY.
Revenue climbed 10.6% to ₹639 cr from ₹578 cr last year, while net profit edged up 9.8% to ₹96.3 cr from ₹87.7 cr. EBITDA rose 17.8% to ₹147.9 cr, and the margin expanded to 23.15% from 21.73%.
Analysts had projected Q2 revenue at ₹620 cr and net profit at ₹92 cr, so Elecon outperformed expectations by ₹19 cr and ₹4 cr respectively. In the engineering sector, peers like Larsen & Toubro reported a 7% revenue decline, positioning Elecon as a bright spot.
The board declared an interim dividend of ₹0.5 per equity share, payable to holders on record as of October 21, with cash distribution slated for November 4. The ₹0.5 dividend is a modest 0.5% of the current share price.
Looking ahead, Elecon has not issued new guidance, but a November 15 earnings call is scheduled to discuss growth in infrastructure contracts. Investors are watching for potential upside as the company secures new projects under the National Infrastructure Pipeline.