Elgi Equipments declared its Q1 results on July 31, 2024. The company showcased a 10.66% increase in topline revenue, reaching ₹801.06 crore, up from ₹723.88 crore in the same quarter last year. The profit also saw a notable increase of 20.44%, rising to ₹72.84 crore from ₹60.48 crore YoY.

However, when compared to the previous quarter, there was a decline in revenue by 7.49% and a decrease in profit by 4.45%. This quarterly drop highlights some challenges the company faced in maintaining its growth momentum.

Expenses and Operating Income

The Selling, General & Administrative (SG&A) expenses declined slightly by 0.75% QoQ but increased by 6.58% YoY. This indicates a controlled cost environment on a quarterly basis but higher operational costs compared to the previous year.

The operating income fell by 9.84% QoQ but showed a robust increase of 35.34% YoY, reflecting improved operational efficiency over the year.

Earnings Per Share (EPS)

Elgi Equipments reported an EPS of ₹2.3 for Q1, which represents a 20.42% increase YoY. This growth in EPS is a positive sign for investors, indicating better profitability.

Market Performance and Analysts' Ratings

Elgi Equipments has delivered 0.05% return in the last week, 12.67% return in the last 6 months, and an impressive 27.22% YTD return. The company's market cap stands at ₹21,905.08 crore, with a 52-week high/low of ₹798.95/₹463 respectively.

As of August 1, 2024, among the analysts covering the company, 1 analyst has given a Strong Sell rating and 3 analysts have given a Buy rating. This mixed sentiment reflects some uncertainty about the company's short-term performance but confidence in its long-term potential.

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Financial Summary

Period

Q1

Q4

Q-o-Q Growth

Q1

Y-o-Y Growth

Total Revenue

₹801.06 Cr

₹865.94 Cr

-7.49%

₹723.88 Cr

+10.66%

SG&A Expenses

₹168.39 Cr

₹169.66 Cr

-0.75%

₹158 Cr

+6.58%

Depreciation/Amortization

₹19.06 Cr

₹19.98 Cr

-4.6%

₹18.52 Cr

+2.88%

Total Operating Expense

₹706.17 Cr

₹760.69 Cr

-7.17%

₹653.76 Cr

+8.02%

Operating Income

₹94.89 Cr

₹105.25 Cr

-9.84%

₹70.11 Cr

+35.34%

Net Income Before Taxes

₹100 Cr

₹110.11 Cr

-9.18%

₹85.7 Cr

+16.69%

Net Income

₹72.84 Cr

₹76.24 Cr

-4.45%

₹60.48 Cr

+20.44%

Diluted Normalized EPS

₹2.3

₹2.41

-4.56%

₹1.91

+20.42%

Conclusion

Elgi Equipments demonstrated solid year-on-year growth in revenue and profit, despite experiencing quarterly declines. The company's focus on controlling expenses and improving operational efficiency has yielded positive results. However, the mixed ratings from analysts suggest that while there is confidence in Elgi Equipments' long-term potential, some short-term challenges remain. Investors should stay updated on quarterly results to monitor the company's performance closely.

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