Elecon Engineering Company Limited CC-Jan26.pdf · 2026-01-09
Hi. Good evening, sir, and thanks for the opportunity. Sir, in continuation to the earlier participant only, over the last one and a half year or two years, we are continuously seeking or putting some emphasis on the export side. While we also received a few orders that were announced earlier, these have not been yet translated into materials in the larger volumes. So, as a result, if we benchmark export against FY ‘23 pace, the business has delivered only a marginal annual growth of around 4% to 5% despite a consistent effort and focus that we are putting into. But at the same time, if we look at the domestic market, India appears to be in a strong capex cycle, particularly across the sectors that we serve to. We have not heard from management a clear articulation around the incremental market share gains in India and maybe targeting at 25 -30% kind of growth, at least in the domestic market, while exports are muted. Even in the Indian market, we are currently growing at 15%-20% kind of number. So, I agree that the margins can be a thing you as a management try to protect. But anyway, if we look at last two quarters, margins have also started falling. So, I just wanted to understand from you, why we are not aggressive on the domestic side? And number two, despite the cautious take that we are taking on the domestic market, why are we facing a fall in the margins? Is it because even within the existing market share that we are speaking about continuously around 40%, we have started facing the competitive pressure?
So, now you are saying going ahead also, we will be focusing on maintaining the market share instead of focusing on increasing the market share in the domestic market. Is that understanding correct?