Elgi Equipments, manufacturer of air compressors, has registered consolidated Profit After Tax of ₹ 12.02 crore for the June 2021 quarter, compared to a loss of ₹ 8.73 crore during the same period in 2020-21.
The standalone PAT for the quarter was ₹ 26.01 crore compared to a loss of ₹ 7.06 crore in the same period in 2020-21.
Consolidated sales for the quarter was ₹ 489 crore as against ₹ 286 crore in the corresponding quarter in 2020-21. Standalone sales for the quarter was ₹ 301 crore compared to ₹119 crore for the same quarter in 2020-21.
The second wave of COVID-19 and associated lockdowns impacted business primarily through supply chain dislocations. The demand for products continued to remain reasonably strong globally, though in India it was slightly muted compared to the rest of the world.
The spiralling raw material prices in 2020-21 continued during the first quarter of this year and this had a significant adverse impact on profitability.
Multiple price increases by the company yielded results with significant time lags, which is typical of capital goods. The company has not fully recovered the cost increases from the market.
The company’s automotive business increased by 39% compared to the corresponding period of 2020-21. It expects to perform well in the second quarter if the pandemic related impediments do not adversely impact its operations. The pressure on profitability will continue, but the company hopes to make up some of this through increased volumes, according to a press release from Elgi.