Elin Electronics (ELIN) Q3 23/24 earnings summary

Executive summary

• Q3FY24 total income rose 17% YoY to INR 2,367 million, but EBITDA and PAT declined 36% and 42% YoY due to negative operating leverage and higher costs.

• 9MFY24 total income fell 5% YoY to INR 7,639 million, with EBITDA and PAT down 50% and 59% YoY, reflecting weak macroeconomic and consumption trends.

• Board approved unaudited standalone and consolidated financial results for Q3 and 9MFY24, following Audit Committee recommendations.

• Appointment of Dr. Shantilal Sarnot as Independent Director and Audit Committee member effective February 13, 2024.

Financial highlights

• Consolidated Q3 FY24 revenue from operations: ₹2,367.13 million, up from ₹2,022.48 million in Q3 FY23, but down from ₹2,733.40 million in Q2 FY24.

• Q3FY24 EBITDA margin dropped to 3.6% from 6.5% YoY; PAT margin fell to 1.1% from 2.3% YoY.

• Net cash position at INR 793 million as of Dec 31, 2023; net working capital days improved to ~69 from ~74 YoY.

• Cost of materials consumed increased to 73.8% of revenue in Q3FY24 from 71.5% YoY.

• Consolidated Q3 FY24 net profit: ₹26.44 million, down from ₹45.85 million in Q3 FY23.

Outlook and guidance

• Weak macro and muted consumption trends continue to impact consumer durables and FMEG segments; capacity utilization remains suboptimal.

• Several new products launched or in development, with some launches pushed to Q4FY24 or FY25.