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Home arrow News arrow Business News arrow Elgi Equipments Ltd Sales up by 10.6% at Rs.229 Crores in Q1 FY12
Elgi Equipments Ltd Sales up by 10.6% at Rs.229 Crores in Q1 FY12 Print E-mail
Written by Ravi   
Friday, 05 August 2011
Coimbatore: Elgi Equipments Ltd, a manufacturer of air compressors and automotive equipment, posted a PAT of Rs.19.2 crores for the first quarter of 2011-12, compared to Rs.17.9 Crores during the same period last year. Sales grew by 10.6% from Rs.207 crores in Q1 2010-11 to Rs.229 crores in Q1 2011-12.

The compressor business grew by 7%, despite decline in the water well segment. The Automotive segment registered a sales growth of 30% during the quarter as compared to the same period last year.

"Our focus on Industrial segments and the Construction segment predominantly contributed to the growth. Our focus in international markets especially in China and Brazil also aided to offset the decline to a certain extent. Going forward this reduced growth trend is likely to continue in the following months as well, as there are signals of slowdown in the domestic market, due to high interest costs," the company said in a statement.

The Automotive segment growth was driven by the setting up of new garages by existing car manufactures and new entrants.

"Car sales during the quarter slowed down and stocks have piled up with the manufacturers. However the garage development program continued to be active in the quarter. New products such as Auto Car Wash, Centralized Lube Management System and Infra Red driers endorsed by the car manufactures contributed to the growth significantly," it added.

"Persistent inflation and rising interest costs continue to impact the domestic market leading to signs of economic slowdown. Emphasis on strategic export markets to offset the decline and managing cash will be the primary focus in the ensuing period."

Last Updated ( Friday, 05 August 2011 )
 
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