Elgi Equipments Ltd, a leading manufacturer of air compressors, reported a 27 per cent rise in consolidated profit after tax (PAT) at ₹91.3 crore for the September 2023 quarter compared with a PAT of ₹72 crore in the year-ago quarter.
Consolidated sales for the second quarter of this fiscal stood at ₹806 crore against ₹739 crore in the corresponding quarter in FY23.
The standalone PAT for the second quarter was ₹83.3 crore compared with a PAT of ₹72.7 crore in the same period of the previous fiscal. Revenue from operations was lower at ₹439 crore as against ₹448 crore.
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Overall, there is sluggishness in demand. While enquiries remain healthy, closure is taking longer. Europe is facing challenges on multiple fronts and it is expected to be subdued, said a company statement.
The automotive business is doing well and registering impressive growth.
For the half year ended September 30, 2023, consolidated PAT stood at ₹151.8 crore against ₹120.6 crore in the year-ago period. Consolidated sales were at ₹1,530 crore against ₹1,433 crore in H1 of FY23.
Outlook
The company expects marginal improvements in Q3 when compared with Q2. The impact of geo-political war in the Middle East is yet to be assessed though experts have varied opinions, it added.