Business

Elgi sees growth in Q1 overseas sales

Air compressor manufacturer Elgi Equipments saw its consolidated sales from overseas markets grow during the first quarter this financial year.

Jairam Varadaraj, managing director of Elgi Equipments, told media persons here on Monday that in April-June 2018, its sales in India and overseas markets were in the ratio of 57:43. For the corresponding period this year, it is 50:50.

The consolidated sales for the quarter was ₹467 crore this year, as against ₹413 crore for the same period last year.

However, the standalone Proft After Tax (PAT) for the quarter was ₹14 crore this year as against ₹22 crore for the same period last year.

The company did well in Australia, west Asian countries, and Europe.

Sales in the U.S. was not as good as expected. “In the south east Asian market, especially Indonesia and Thailand, we are working on some initiatives that will see results in the third and fourth quarters,” he said.

The Indian market was challenging in the first three months of this fiscal. There are enquiries even now, but finalisation is taking time.

On the profitability, he said people and fixed costs had been higher. Part of it was as per the strategic plan of the company. “We have started efforts to control costs. We will not hold back spending on technology or critical marketing. There are conversations on the table for acquisitions. It is an ongoing process. But, it will be only in the strategic markets,” Mr. Varadaraj said.

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Printable version | May 31, 2020 7:48:05 AM | https://www.thehindu.com/business/elgi-sees-growth-in-q1-overseas-sales/article28826887.ece

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