Expect sales to bounce back to normal levels in Q2: Elgi Equipments Ltd

Chennai: Manufacturers of air compressors Elgi Equipments Ltd expects the sales during the second quarter of the current financial year, to bounce back to normal levels, the company said on Sunday.

The Tamil Nadu-based company declared its financial results for the April-June 2023 quarter with its profit after tax growing by 24.2 per cent, to Rs 60.5 crore, from Rs 48.7 crore registered in the corresponding quarter of last year.

The consolidated sales during the quarter under review rose to Rs 724 crore, from Rs 694 crore registered in the same period of last year.

In a statement, the company said compressor business in the domestic market met the targeted numbers. However, sales realisation was affected in the United States market due to temporary disruption caused by the ongoing ERP implementation.

The business performance in the Middle East and Africa, Australia and South-East Asian countries were 'satisfactory', the company said.

On the outlook for the July-September 2023 quarter, the company said, "sales is expected to bounce back to normal levels".

The ERP (Enterprise, Resource Planning) implementation in the United States has stabilised and expects to return to normal levels during the second quarter, the company said.