Elgi Equipments Ltd, a leading manufacturer of air compressors, posted a consolidated profit after tax (PAT) of ₹49 crore for the June quarter, compared to ₹12 crore in the year-ago quarter, on the back of strong topline growth. The standalone PAT for the quarter was ₹45 crore compared to ₹26 crore in the same period of FY22.
Consolidated sales grew 42 per cent to ₹694 crore (₹489 crore). Standalone sales were at ₹414 crore (₹301 crore).
The compressor business in the domestic market was as per plan. Business growth in Europe, North America and Brasil was robust. Business growth in the Middle East, Africa, Australia and South-East Asian countries was subdued. The automotive business witnessed good growth but was subdued compared to our expectation, according to a company statement.
Outlook for Q2
Tight control over costs, coupled with a sustained increase in business that is anticipated, will help the company meet its goals. However, the effect of the ongoing war, the impact of sanctions, rising inflation, expectations of recessionary behaviour in some markets, forex fluctuations and rising interest rates could act as a dampener.
The company is cautiously optimistic about moving towards its strategic business plans.