Elgi Q4 standalone net rises 30%

Our Bureau Coimbatore | Updated on April 29, 2011

Compressor and automotive equipment manufacturer, Elgi Equipments Ltd, has recorded about 12 per cent increase in net sales and nearly 30 per cent jump in net profit on a stand alone basis in the final quarter of 2010-11 compared with the corresponding period during 2009-10.

But the company, which has subsidiaries both in India and abroad, came tantalisingly close to breaking into the elite Rs 1,000- crore turnover club on an annual consolidated basis with last year's consolidated gross sales missing the Rs 1,000-crore mark by a whisker.

Net sales

EEL recorded, on a stand alone basis, net sales/income from operations of Rs 196.44 crore in Q4 of 2010-11 compared with Rs 175.40 crore during the same period in the previous fiscal (2009-10).

The net profit for the last quarter of 2010-11 was substantially higher at Rs 14.45 crore (Rs 11.36 crore).

For the full year, net sales on a stand alone basis was Rs 773.75 crore compared with Rs 581.15 crore in the previous FY.

The full year's net profit also saw a sharp jump of about 48 per cent to Rs 81.38 crore from Rs 55.17 crore in 2009-10. The full year's EPS was Rs 5.14 (share face value Re 1) compared with Rs 6.99 in 2009-10.

Still, last year's EPS was very impressive as the equity base had doubled after payment of 1: 1 bonus that year.

On a consolidated basis, EEL clocked gross sales of Rs 998.61 crore (Rs 714.11 crore) and net sales of Rs 939.01 crore (Rs 676.95 crore), a 39 per cent jump. The net profit was Rs 88.99 crore (Rs 57.92 crore).

Dr Jairam Varadaraj, Managing Director, EEL, said the 37 per cent growth in the compressor business was mainly contributed by industrial, construction and mining segments.

Though the domestic market witnessed strong recovery that was in line with the country's economic performance, ‘exports showed hesitant recovery and the company's subsidiaries in China and France have performed in line with expectations'.

The buoyancy witnessed by the car market rubbed on the automotive segment that grew by 28 per cent.

He said EEL was ‘poised for growth in specific segments' during the current fiscal though some like water well were showing downward cyclical trend.

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Published on April 29, 2011
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