Elgi announces 2QFY2020 results

Elgi Equipments, a manufacturer of air compressors, announced the results for the quarter and half year ended September 30, 2020. PAT for the quarter was Rs 33.2 crore compared to Rs 11.7 crore in the same period in 2019-2020 on a consolidated basis.

Also read: Dr Jairam Varadaraj, MD, Elgi Equipments’ interview with the ITJ

Consolidated sales for the quarter were Rs 480 crore as against Rs 445 crore in the corresponding quarter in 2019-2020. The standalone PAT for the quarter was Rs 29.8 crore compared to Rs 24.7 crore in the same period in 2019-20.

The compressor business’ performance in the domestic market has improved after the lockdown restrictions were lifted. The activity was seen across all industrial segments. The overseas markets have done well across all geographies. Sales in the automotive business declined more or less in tandem with the de-growth faced by the automotive industry when compared to the corresponding period in the last year, in spite of steady improvement witnessed from June 2020 onwards.

Also read: Optimising energy efficiency

Outlook for the third quarter 2020-21
While we expect the momentum to continue in India into Q3, we have to wait and see how the economy would behave post the festive season. The current momentum in the international business is expected to continue, but for the continuing uncertainty posed by the prevailing situation with the pandemic.