Elgi Equipments growth very well supported by automotive sector

Elgi Equipments Ltd., manufacturer of air compressors, posted a PAT of Rs. 76.9 crores in 2017-18, compared to Rs. 68.4 crores in 2016-17.

Mr. Jairam Varadaraj, Managing Director, Elgi Equipments Ltd.

The consolidated PAT for the group for 2017-18 was Rs. 95.3 crores as compared to Rs. 74 crores during 2016-17. Consolidated sales for the group was Rs. 1,622 crores compared to Rs. 1,438 crores the previous year.

The Board of Directors has recommended a dividend of 120% for 2017-18.

The growth in the domestic was satisfactory. Overall, the company’s business grew across all markets, barring a few Asian countries. Performance in North America and Italy was commendable.

Growth in passenger vehicle sales in India had a significant influence on the revenues of the automotive business which recorded a growth of 17 per cent over the previous year, by growing its market share with an array of existing and new products.

The company is well placed to perform well in the Indian market. While it expects subdued sales growth in geographies like the Middle East and Africa, it expects to improve its market share in the Western markets and the Asian region.