Elgi Equipment has rallied 13% to Rs 185, also its record high on the BSE, after the company reported a six-fold jump in consolidated net profit at Rs 31 crore for the quarter ended March 2016 (Q4FY16), due to higher sales.
The company, manufacturer of air compressors, had reported a profit at Rs 5.08 crore in the year ago quarter.
Total consolidated income from operations rose 17% at Rs 408 crore against Rs 410 crore against Rs 350 crore in the corresponding quarter of previous fiscal.
“Demand for the company’s compressor business in the domestic market improved due to accelerated sales in select compressor segments. The company has been able to improve profitability by managing costs and improving efficiencies,” Elgi Equipments said in a statement.
Ebitda (earnings before interest, taxes, depreciation and amortization) margins improved to 11.84% in Q4FY16 from 6.54% in Q4FY15.
The restructuring of operations in China and France will significantly reduce revenue leakage. The company expected to grow quite well as all the economic indicators showing positive signs in the domestic market, it added.
source:Business standard
