Elgi Equipments reports 300% rise in quarterly profits

16 August 2022

Consolidated revenue for the period stood at Rs 694 crore, increasing 42% from Rs 489 crore in the corresponding quarter last year.

“While the performance of the compress business was in-line with expectations in domestic markets, we grew our share in the overseas markets despite inflation and other macro factors,” Jairam Varadaraj, MD, ELGi Equipments, said.

"This is a validation of our technology and the quality of the product...Business growth in Europe, North America and Brazil was robust," he said. The level of inquiries from projects forming part of the PLI scheme were also good, he added.

The company, which has two manufacturing facilities in Coimbatore in Tamil Nadu, is planning to integrate both into one of the campuses (a 100 acre one), and this capex project is likely to take up the next 2-3 years.

The company anticipates tight control over costs coupled with sustained increase in business for the coming quarter.

However, the effect of ongoing war, impact of sanctions, rising inflation, forex fluctuations and rising interest rates, among other macro factors could act as a dampener, the company said. Varadaraj noted that he is cautiously optimistic on moving towards its strategic business plans.