Elgi Equipments has registered a sales growth of 15.5 per cent on a consolidated basis in 2012-2013.
According to a release from the Coimbatore-based company, sales increased to Rs. 1,145 crore for the year ended March 31, 2013, from Rs. 991 crore in the previous year. The profit after tax, however, declined by 21.4 per cent from Rs. 75.57 crore in 2011-2012 to Rs. 60.18 crore in 2012-2013. The company has announced a dividend of 100 per cent.
The company’s international business increased by 15 per cent. The automotive division registered a sales growth of 11 per cent over the previous financial year.
According to Managing Director Jairam Varadaraj , during the last financial year, Elgi Equipments acquired two companies. The costs associated with the acquisitions have reduced profits. Further, the acquired firms have a lower percentage of profitability compared to Elgi. “We see an opportunity to improve their EBIDTA by providing these subsidiaries a larger range of products at lower costs. We expect to see the impact of this over the next couple of years,” he said.
