The Hindu Business Line : Elgi Equipments Q2 net sales, profit zoom

Coimbatore, Nov. 2 Elgi Equipments Ltd (EEL), powered by the performance of its compressor division, saw net sales and net profit zoom in the second quarter of current fiscal compared to the corresponding period last year.

According to the audited results of the company, net sales in Q2 were Rs 130 crore (Rs 95.9 crore). After providing for consumption of raw materials, staff cost, depreciation etc, the profit before tax more than doubled to Rs 19.6 crore (Rs 9 crore). Profit after extraordinary item increased by more than 100 per cent to Rs 13.7 crore (Rs 6.1 crore). The basic EPS (share face value Re 1) for the quarter was Rs 2.20 (Re 0.97).

The substantial jump in income from sale of compressors at Rs 108 crore (Rs 76.7 crore) contributed significantly to the increase in turnover in Q2 this year. The share of automotive equipments was Rs 19.7 crore and the automotive equipments division has been hived off as a fully owned subsidiary company — ATS Elgi Ltd — with effect from August 1.The company said the compressor business continued to post robust growth. Though margins were under pressure, ‘operational leverage would continue to support the bottom line’. The automotive equipment business was sluggish due to lower sales of cars and two-wheelers but the performance of this division in the second quarter showed an improvement over the corresponding period last year.