Coimbatore-based air compressor manufacturer Elgi Equipments Ltd has witnessed a dip in profit after tax though sales grew by more than 10 per cent in the first quarter of current fiscal.
In a release, Dr Jairam Varadaraj, MD, Elgi Equipments, said in Q1 of this year, the sales were Rs 229 crore compared with Rs 207 crore in the same period last year, an increase of 10.6 per cent. But the PAT was lower at Rs 17.9 crore compared with Rs 19.2 crore in the corresponding quarter last year. He attributed the lower profit to the company's decision to invest in strategic resources, the returns of which were expected only in the long term.
Powered by the demand in the industrial and construction segments, the compressor business grew by 7 per cent, though the water well segment witnessed deceleration. He said continued inflation and rising interest costs would impact the demand in the domestic market.