Elecon Engineering Company Limited reported a sharp decline in its consolidated performance for the fourth quarter, with profitability taking a significant hit due to a large one-time exceptional loss. While revenue saw a moderate dip, earnings and margins came under notable pressure on a year-on-year (YoY) basis.
For the quarter, the company’s revenue fell 6.5% to ₹746 crore compared to ₹798 crore in the same period last year, indicating a slowdown in topline growth. The decline in revenue was accompanied by a steeper fall in operating performance.
EBITDA dropped 19% YoY to ₹158 crore from ₹195 crore, reflecting weaker operational efficiency. As a result, EBITDA margins contracted to 21.2%, down from 24.5% in the corresponding quarter last year. The margin compression suggests rising cost pressures or an unfavorable product mix during the quarter.
The most significant impact was visible at the bottom line level. Net profit plunged 96% to just ₹6 crore, compared to ₹146 crore reported a year ago. This sharp fall was largely driven by an exceptional one-time loss of ₹102 crore recorded during the quarter, which severely dented overall profitability.