Elgi Equipments, a manufacturer of air compressors, announced the results for the fourth quarter and for the financial year ended March 31, 2022. Consolidated PAT for the quarter was Rs 73.1 crore compared to Rs 43.4 crore in the same period in 2020-21. Consolidated PAT for the financial year was Rs 178.4 crore compared to Rs 102.5 crore in 2020-21.

Consolidated sales for the fourth quarter was Rs 728 crore as against Rs 611 crore in the corresponding quarter in 2020-21. Consolidated sales for the financial year 2021-22 was Rs 2,525 crore as against Rs 1,924 crore in 2020-21.

The standalone PAT for the fourth quarter was Rs. 60.6 crore compared to Rs 48.9 crore in the same period in 2020-21. The standalone PAT for the year was Rs 189.4 crore compared to Rs 105.1 crore in 2020-21.

The Board has recommended a dividend of Rs 1.15 per share (115 per cent) for the year 2021-22, subject to the approval of the shareholders.

The compressor business’ performance in the domestic exceeded plan owing to strong demand and go-to-market initiatives. Barring Middle East, Africa, and Australia and South East Asian Countries that were affected by COVID lockdowns, other geographies registered satisfactory sales and market share growth.

The automotive business overcame COVID restrictions, supply challenges, and volatility in the segment to register sales and profitability ahead of our plans.

Outlook for 2022-23
While we remain optimistic and are well prepared to achieve our FY’23 revenue targets, inflation, wars and political unrest could soften demand and affect margins. However, we are reviewing our processes and initiating actions to avoid margin erosion.