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Elgi Equipments Ltd. Interim / Quarterly Report 2019
60896_rns_2019-11-08_c0811c42-2eca-4752-8107-14a39ec8c947.pdf
Interim / Quarterly Report
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| BOMBAY STOCK EXCHANGE LIMITED | NATIONAL STOCK EXCHANGE OF | ||
|---|---|---|---|
| PHIROZE JEEJEEBHOY TOWERS | INDIA LIMITED | ||
| DALAL STREET | "EXCHANGE PLAZA" | ||
| MUMBAI - 400001 | BANDRA KURLA COMPLEX | ||
| BANDRA (E) | |||
| MUMBAI - 400051 | |||
| Scrip Code: 522074 | Scrip Code: ELGIEQUIP |
E:SEC: 1008
DATE: 08/11/2019
Dear Sirs
Sub: Intimation of the outcome of the Board Meeting held on 08th November, 2019 and Disclosure under SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015.
We refer to our Letter dated 23/10/2019, intimating you of the convening of the meeting of the Board of Directors of our Company. In this regard, we wish to inform that the Board of Directors of our Company met today and approved the following;
Unaudited Financial Result for the quarter ended 30/09/2019:
The Unaudited Financial Results for the Quarter ended 30/09/2019 in the format prescribed under Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015 pursuant and $to$ SEBI Circular No. CIR/CFD/FAC/62/2016 dated 05th July, 2016. In this connection, we enclose the following:
- Unaudited Standalone Financial Results a)
- $b)$ Unaudited Consolidated Financial Results
- Segment Report $\mathcal{C}$ )
- Limited Review Report d)
- Statement of Assets and Liabilities $\epsilon$
- $f$ Press Release being made in this connection.
Pursuant to Regulation 47 of the Listing Regulations and above mentioned SEBI Circular, we would be publishing an extract of the consolidated financial results in the prescribed format in English and Tamil newspapers within the stipulated time. The detailed standalone financial results and consolidated financial results of the Company would be available on the website of the Company www.elgi.com as well on the website of Stock Exchanges.
Kindly take the above information on record.
Thanking you, Yours faithfully For ELGI EQUIPMENTS LIMITED
COMPANY SECRETARY
Encl: As Above.
Statement of Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2019
| Quarter ended | (Rs. in Millions, except per equity share data) Half-Year ended |
Year ended | ||||||
|---|---|---|---|---|---|---|---|---|
| S. No. |
Particulars | September 30, 2019 |
June 30, 2019 |
September 30, 2018 |
September 30, 2010 |
September 30, 2018 |
March 31, 2019 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||
| $\mathbf{1}$ | Income | |||||||
| (a) Revenue from operations | 2,712.66 | 2,777.10 | 2,823.89 | 5,489.76 | 5,433.02 | 11,770.79 | ||
| (b) Other income | 101.63 | 25.86 | 43.65 | 125.39 | 146.80 | 163.11 | ||
| Total income | 2,814.29 | 2,802.96 | 2,867.54 | 5,615.15 | 5,579.82 | 11,933.90 | ||
| $\overline{\mathbf{2}}$ | Expenses | |||||||
| (a) Cost of materials consumed | 1,290.20 | 1.358.29 | 1,215.26 | 2,648.49 | 2,530.03 | 5,668.96 | ||
| (b) Purchases of stock-in-trade | 267.12 | 266.27 | 363.93 | 533.39 | 632.97 | 1,218.29 | ||
| (c) Changes in inventories of finished goods, stock-in-trade and work-in-progress |
17.97 | (15.23) | 62.03 | 2.74 | (7.05) | 27.84 | ||
| (d) Employee benefits expense | 386.14 | 454.65 | 381.65 | 840.79 | 773.74 | 1,564.34 | ||
| (e) Finance costs | 10.83 | 8.04 | 7.20 | 18.87 | 12.06 | 23.71 | ||
| (h) Depreciation and amortisation expense | 91.61 | 86.82 | 84.59 | 178.43 | 166.16 | 338.47 | ||
| (g) Other expenses | 446.69 | 447.16 | 508.86 | 891.75 | 919.36 | 1,886.29 | ||
| Total expenses | 2,510.56 | 2,606.00 | 2,623.52 | 5,114.46 | 5,027.27 | 10,727.90 | ||
| 3 | Profit before exceptional items and $\text{tax}(1-2)$ | 303.73 | 196.96 | 244.02 | 500.69 | 552.55 | 1,206.00 | |
| $\overline{4}$ | Exceptional items | |||||||
| 5 | Profit before tax $(3 + 4)$ | 303.73 | 196.96 | 244.02 | 500.69 | 552.55 | 1,206.00 | |
| 6 | Tax expense: | |||||||
| Current tax | 72.94 | 62.00 | 81.81 | 134.94 | 182.92 | 378.65 | ||
| Deferred tax | (16.31) | (4.30) | (10.48) | (20.61) | (19.35) | (20.09) | ||
| $\overline{7}$ | Net Profit for the period $(5 - 6)$ | 247.10 | 139.26 | 172.69 | 386.36 | 388.98 | 847.44 | |
| 8 | Other comprehensive income, net of income tax | |||||||
| A. Items that will not be reclassified to profit or loss | (16.95) | (0.04) | (7.03) | (16.99) | (18.80) | (10.78) | ||
| B. Items that will be reclassified to profit or loss | ||||||||
| Total other comprehensive income, net of income tax | (16.95) | (0.04) | (7.03) | (16.99) | (18.80) | (10.78) | ||
| $\overline{9}$ | Total comprehensive income for the period $(7+8)$ | 230.15 | 139.22 | 165.66 | 369.37 | 370.18 | 836.66 | |
| 10 | Paid-up equity share capital (Face value Re. 1/- each) | 158.34 | 158.34 | 158.34 | 158.34 | 158.34 | 158.34 | |
| 11 | Earnings per share (of Re. 1/- each) (not annualised): | |||||||
| (a) Basic | 1.56 | 0.88 | 1.09 | 2.44 | 2.46 | 5-35 | ||
| (b) Diluted | 1.56 | 0.88 | 1.09 | 2.44 | 2.46 | $5 - 35$ | ||
| 12 | Reserves excluding Revaluation reserve | 6,460.77 |
Place: Coimbatore Date: November 08, 2019 For and on behalf of the Board of Directors
auw Jairam Varadaraj Managing Director
÷.
Notes:
| The above standalone financial results were reviewed by the Audit Committee and approved by the Board of Directors of Elgi Equipments Limited ("the Company") at their meeting held on November 08, 2019. The statutory auditors of the Company have carried out a limited review of the above financial results for the quarter and half year ended September 30, 2019. |
|---|
| This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable. |
| The Company has adopted lnd AS 116 "Leases" with effect from April 1, 2019 using modified retrospective approach. The adoption of the new standard did not have any material impact on the profits of the Company. |
| The business activities reflected in the above financial results comprise of manufacturing and sale of compressors, Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments. |
| Previous period / year figures have been regrouped / reclassified to make them comparable with those of current period. |
For and on behalf of the Board of Directors
Place: Coimbatore Date: November 08, 2019
'auM Jairam Varadaraj Managing Director
Statement of Consolidated Unaudited Financial Results for the quarter and half year ended September 30, 2019
| (Rs. in Millions, except share and per equity share data) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarter ended | Half-year ended | Year ended | ||||||
| S. No. |
Particulars | September 30, 2019 |
June 30, 2019 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
March 31, 2019 |
|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||
| $\mathbf{1}$ | Income | |||||||
| (a) Revenue from operations (b) Other income |
4,447.44 31.86 |
4,666.40 36.41 |
4,518.07 24.54 |
9,113.84 59.17 |
8,652.66 45.23 |
18,634.69 96.55 |
||
| Total income | 4,479.30 | 4,702.81 | 4,542.61 | 9,173.01 | 8,697.89 | 18,731.24 | ||
| $\overline{\mathbf{2}}$ | Expenses | |||||||
| (a) Cost of materials consumed | 1,736.68 | 2,169.82 | 1,717.67 | 3,906.50 | 3,495.49 | 7,820.73 | ||
| (b) Purchases of stock-in-trade | 672.26 | 751.80 | 719.64 | 1,424.06 | 1,359.50 | 2,464.15 | ||
| (c) Changes in inventories of finished goods, stock-in-trade and work-in-progress |
(32.70) | (429.86) | 53.00 | (462.56) | (91.19) | 26.27 | ||
| (e) Employee benefits expense | 962.23 | 1,010.56 | 831.37 | 1,972.79 | 1,614.50 | 3.408.30 | ||
| (f) Finance costs | 36.47 | 39.05 | 23.44 | 75.52 | 42.97 | 89.85 | ||
| (g) Depreciation and amortisation expense | 156.55 | 151.68 | 122.51 | 308.23 | 225.50 | 511.07 | ||
| (h) Other expenses | 774.86 | 752.40 | 762.37 | 1,518.16 | 1,446.49 | 2,997.70 | ||
| Total expenses | 4,306.35 | 4,445.45 | 4,230.00 | 8,742.70 | 8,093.26 | 17,318.07 | ||
| 3 | Profit before exceptional items and tax $(1 - 2)$ | 172.95 | 257.36 | 312.61 | 430.31 | 604.63 | 1,413.17 | |
| $\overline{4}$ | Exceptional items | |||||||
| $\overline{5}$ | Profit before tax $(3 + 4)$ | 172.95 | 257.36 | 312.61 | 430.31 | 604.63 | 1,413.17 | |
| 6 | Tax expense: | |||||||
| Current tax | 87.08 | 104.32 | 95.99 | 191.40 | 215.10 | 480.82 | ||
| Deferred tax | (28.47) | (11.86) | (20.28) | (40.33) | (28.94) | (76.43) | ||
| 7 | Net Profit for the period before share of profit of joint ventures $(5 - 6)$ |
114.34 | 164.90 | 236.90 | 279.24 | 418.47 | 1,008.78 | |
| 8 | Share of Profit of joint venture | 2.18 | 5.16 | 18.02 | 7.34 | 21.50 | 21.87 | |
| 9 | Net Profit for the period $(7 + 8)$ | 116.52 | 170.06 | 254.92 | 286.58 | 439.97 | 1,030.65 | |
| 10 2 | Other comprehensive income, net of income tax | |||||||
| A. Items that will not be reclassified to profit or loss B. Items that will be reclassified to profit or loss |
(16.95) 21.67 |
(0.04) (1.48) |
(6.50) 98.60 |
(16.99) 20.19 |
(17.76) 156.92 |
(9.93) 20.11 |
||
| Total other comprehensive income, net of income tax | 4.72 | (1.52) | 92.10 | 3.20 | 139.16 | 10.18 | ||
| 11 | Total comprehensive income for the period (9 +10) | 121.24 | 168.54 | 347.02 | 289.78 | 579.13 | 1,040.83 | |
| Net Profit attributable to: - Owners |
116.52 | 170.06 | 254.92 | 286.58 | 439.97 | 1,030.65 | ||
| Non-controlling interests | ||||||||
| Total comprehensive income attributable to: | ||||||||
| Owners | 121.24 | 168.54 | 347.02 | 289.78 | 579.13 | 1,040.83 | ||
| Non-controlling interests | ||||||||
| 12 | Paid-up equity share capital (Face value Re. 1/- each) | 158.34 | 158.34 | 158.34 | 158.34 | 158.34 | 158.34 | |
| 13 | Earnings per share (of Re. 1/- each) (not annualised): | |||||||
| (a) Basic | 0.74 | 1.07 | 1.61 | 1.81 | 2.78 | 6.51 | ||
| (b) Diluted | 0.74 | 1.07 | 1.61 | 1.81 | 2.78 | 6.51 | ||
| 14 | Reserves excluding Revaluation reserve | 7,550.65 | ||||||
Place: Coimbatore Date: November 08, 2019
For and on behalf of the Board of Directors
WWW Jairam varadaraj Managing Director
ELGI EQUIPMENTS LIMITED
Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India
T : +91 422 2589 555, W :www.elgi.com, Toll - free No : 1800-425-3544, CIN : L29120TZ1960PLC000351
Notes:
| The above consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors of Elgi Equipments Limited ("the Company") at their meeting held on November 08, 2019. The statutory auditors of the Company have carried out a limited review of the above financial results for the quarter and half year ended September 30, 2019. |
|
|---|---|
| $\overline{\mathbf{2}}$ | This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable. |
| 3 | The Group has adopted lnd AS 116 "Leases" with effect from April 1, 2019 using the modified retrospective approach. The adoption of the new standard did not have any material impact on the profits of the Group. |
| 4 | The Group has organised the businesses into two categories viz., Air Compressors and Automotive Equipments. This reporting complies with the Ind AS segment reporting principles. Refer Annexure I attached herewith. |
| 5 | The above statements includes the results of the following entities: |
| Subsidiaries 1. Adisons Precision Instruments Manufacturing Company Limited 2. ATS Elgi Limited 3. Elgi Equipments (Zhejiang) Limited 4. Elgi Gulf FZE 5. Elgi Compressors Do Brasil Imp.E.Exp LTDA 6. Elgi Equipments Australia Pty Limited 7. Elgi Compressors Italy S.R.L (formerly known as Elgi Compressors Europe S.R.L) 8. Rotair SPA 9. Elgi Compressors USA Inc. 10. Patton's Inc. 11. Patton's Medical LLC. 12. PT Elgi Equipments Indonesia 13. Ergo Design Private Limited 14. Industrial Air Compressors Pty Ltd 15. F.R. Pulford & Son Pty Limited 16. Advanced Air Compressors Pty Ltd 17. Elgi Compressors Europe S.R.L (formerly known as Elgi Compressors Belgium SPRL) 18. Elgi Gulf Mechanical and Engineering Equipment Trading LLC Joint ventures 1. Elgi Sauer Compressors Limited 2. Industrial Air Solutions LLP 3. Evergreen Compressed Air and Vacuum LLC (jointly controlled entity of Elgi Compressors USA Inc.) Joint operations 1. L.G. Balakrishnan & Bros. 2. Elgi Services |
|
| 6 | Previous period / year figures have been regrouped / reclassified to make them comparable with those of current period. |
Place: Coimbatore Date: November 08, 2019
| Annexure I - Segment Revenue, Results and Capital Employed | (Rs. in Millions) | ||||||
|---|---|---|---|---|---|---|---|
| Ouarter ended | Half year ended | Year ended | |||||
| Si No. | Particulars | September 30, 2019 |
June 30, 2019 |
September 30, 3018 |
September 30, 2019 |
September 30, 2018 |
March 31, 2019 |
| (Unaudited) | (Unamilted) | (11naudlted) | (Unnudited) | (Unaudited) | (Audited) | ||
| 1 Segment Revenue a) Air Compressors b) Automotive equipments |
3.968.04 480.33 |
4,213.98 452.90 |
4.010.51 508.12 |
8,182.02 933.23 |
7,741.02 912.75 |
16,740.16 1,897.42 |
|
| Less: Inter segment revenue | 4,448.37 0.93 |
4,666.88 0.48 |
4,518.63 0.56 |
9,115.25 1.41 |
8,653.77 1.11 |
18,637.58 2,80 |
|
| Income from operations | 4,447.44 | 4,666.40 | 4.518.07 | 9,113.84 | 8,652.66 | 18,634.69 | |
| 2 Segment Results (Profit before tax) |
|||||||
| a) Air Compressors b) Automotive equipments |
137.99 | 227.06 30.07 |
273.69 38.92 |
365.05 64.78 |
553.54 51.09 |
1,292.47 120.70 |
|
| 34.71 172.70 |
257.13 | 312.61 | 429.83 | 604.63 | 1,413.17 | ||
| Add:Inter segment result | 0.25 | 0.23 | 0.48 | ||||
| 172.95 | 257.36 | 312.61 | 430.31 | 604.63 | 1,413.17 | ||
| 3 Segment Assets a) Air Compressors b) Automotive equipments |
13,502.96 1,123.33 14,626.29 |
13,702.27 1,183.99 14,886.26 |
12,855.72 1,083.84 13.939.56 |
13,502.90 1,123.33 14,626.29 |
12,855.72 1.083.84 13,939.56 |
12,695.56 1,159.10 13,854.66 |
|
| Less: Inter segment assets | 20.81 | 21.97 | 20.81 14,605.48 |
13.939.56 | 13,854.66 | ||
| 14,605.48 | 14,864.29 | 13,939.56 | |||||
| 4 Segment Liabilities a) Air Compressors b) Automotive equipments |
6,541.00 334.97 6,875.97 |
6,641.33 367.52 7,008.85 |
6,353.85 346.10 6,699.95 |
6,541.00 334.97 6,875.97 |
6,353.85 346.10 6,699.95 |
5,779.80 365.76 6,145.56 |
|
| Less: Inter segment liabilities | 21,28 | 22.20 | 21.28 | ||||
| 6,854.69 | 6,986.65 | 6,699.95 | 6,854.69 | 6,699.95 | 6,145.56 | ||
| s Capital Employed [Segment Assets - Segment Liabilities] a) Air Compressors b) Automotive equipments |
6,961.96 788.36 |
7,060.94 816.47 |
6,501.87 737.74 |
6,961.96 788.36 |
6,501.87 737-74 |
6,915.76 793.34 |
|
| 7,750.32 | 7,877.41 | 7,239.61 | 7,750.32 | 7,239.61 | 7,709.10 | ||
| Add: Inter segment capital employed | 0.47 7.750.79 |
0.23 7,877.64 |
7,239.61 | 0.47 7.750.79 |
7,239.61 | 7,709.10 |
For and on behalf of the Board of Directors
Place: Coimbatore Date: November 08, 2019
ELGI EQUIPMENTS LIMITED
Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India 1: +91 422 2589 555, w :www.elgi.com, Toll Free No: 1800-425-3544, CIN: L29120TZ1960PLC000351
Independent Auditors' Report on Review of Interim Standalone Financial Results
The Board of Directors Elgi Equipments Limited Elgi Industrial Complex III Trichy Road, Singanallur Coimbatore $-641005$
- We have reviewed the unaudited standalone financial results of Elgi Equipments Limited (the "Company") [in which are included results of two jointly controlled entities (representing joint operations)] for the quarter ended September 30, 2019 which are included in the accompanying 'Statement of Standalone Unaudited Financial Results for the quarter and half year ended September 30, 2019', the Unaudited Standalone Balance Sheet as on that date and the Unaudited Standalone Statement of Cash Flows for the half-year ended on that date (together referred as the "Statement"). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations, 2015"), which has been initialled by us for identification purposes. Attention is drawn to the fact that the Unaudited Standalone Statement of Cash Flows for the corresponding period from April 01, 2018 to September 30, 2018, as reported in the Statement have been approved by the Company's Board of Directors, but have not been subjected to review.
- This Statement, which is the responsibility of the Company's Management and approved by $\overline{2}$ . the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
- We conducted our review of the Statement in accordance with the Standard on Review $\mathbf{a}$ . Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
-
- The unaudited standalone financial results includes the interim financial results of two jointly controlled entities (representing joint operations) which have not been reviewed by their auditors, whose interim financial results reflect total assets of Rs. 126.81 million and net assets of Rs. 124.28 million as at September 30, 2019, total revenue of Rs. Nil, total net profit after tax of Rs. 0.50 million, and total comprehensive income of Rs. 0.50 million, for the quarter ended September 30, 2019 and net cash flows of Rs. 0.32 million for the period from April 01, 2019 to September 30, 2019, as considered in the unaudited standalone financial results. According to the information and explanations given to us by the Management, these interim financial results are not material to the Company.
Price Waterhouse Chartered Accountants LLP, 8th Floor, Prestige Policinin Bergers 199 Chennai - 600 006, India T: +91 (44) 4228 5000, F: +91 (44) 4228 5100
Registered office and Head office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi 110 002
Price Waterhouse (a Partnership Firm) converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-5001)
with effect from July 25, 2014. Post its conversion to number before conversion was 012754N)
Our conclusion on the statement is not modified in respect of the above matter.
- Based on our revjew conducted as above, nothing has come to our attention that causes us to believe that the Statement has .not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in Iudia, and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016 Chartered Accountauts
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B�selvam Part.Der Membership Number: 213126 UDIN: 19213126AAAAFY1700
Place: Coimbatore Date: November 08, 2019
Independent Auditors' Report on Review oflnterim Consolidated Financial Results
The Board of Directors Elgi Equipments Limited Elgi Industrial Complex !TI Trichy Road, Singanallur Coimbatore - 641 005
-
- We have reviewed the unaudited consolidated financial results of Elgi Equipments Limited (the "Parent"), its subsidiaries (the parent and its subsidiaries hereinafter referred to as the "Group"), and jointly controlled entities (refer Notes on the Statement) for the quarter ended September 30, 2019 which are included in the accompanying 'Statement of Consolidated Unaudited Financial Results for the quarter and half year ended September 30, 2019', the Unaudited Consolidated Balance Sheet as on that date and the Unauilited Consolidated Statement of Cash Flows for the half-year ended on that date (together referred as the "Statement"). The Statement is being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20151 as amended (the "Listing Regulations, 2015"), which has been initialed by us for identification purpo1,es. Attention is drawn to the fact that Unaudited Consolidated Statement of Cash flows for the corresponding period from April 01, 2018 to September 30, 2018, as repo1ted in lhe Statement have been approved by the Parent's Board of Directors, but have not been subjected to review.
-
- This Statement, which is the responsibility of the Parent's Management and has been approved by the Parent's Board of Directors, has been prepared in accordance wi th the recognition and measurement p1inciples laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ('1nd AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
-
- We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the r ndependent Auditor of the Entity", issued by the Institute of Chartered Accountants of Ind la. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of maldng inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also perfo1med procedures in accordance with the circular issued by tl1e SEBI under Regulation 33 (8) of the Listing Regulations to the extent applicable.
- The Statement includes the results of the following entities:
Subsidiaries:
- i. Elgi Compressor USA Inc., its subsidiaries and its jointly controlled entity
- ii. PT Elgi Equipments Indonesia
P1•ice Waterh�11se.;hw·�:e·;.ed·���·;u,ta.:1�s �LP, ·�;�·;loo;,�--���;� Pa�;;···�-� . .. �s-·R;ad ....... Chennai • 600 006, India >-�'/ .- � T: +91 (44) 4228 5000, F: +91 (44) 4228 5100 ,.,.
R.."ljlslerod omce aod Head offioo: Suchela 8hawHil, 11A Vishnu Dlv •>am�ar Ma,,,, � New Delhi 110 002 ._ 'tf.* -----:-- *
Chennai Prlc• Walerho.,so (� Pod11orsi,ip Firm) c01werfed ,nlo Price Wa1ert.01J•c ChartHed P,c,:ountsnts LLP (� Li111iled Ll�hllity Identity no: LLPIN AAC 6001) wllh effl!GI r,o�• July 25, 2014. Por.l ils COllVOr•ion lo Prlco W•l•1h0us0 CMrt.,!ld Moo11nlr111lo LL.P, ll& ICAI reglslr.illrin number 18 012754NIN50001G (ICAI ,�glslrBllon nu,nber b<,fr;,re LOlovor�lon =• 01275-IN)
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- iii. ATS Elgi Limited
- Adison Precision Instruments Manufacturing Company Limited iv.
- Ergo Design Private Limited v.
- Elgi Equipments (Zhejiang) Limited vi.
- Elgi Gulf FZE. and its subsidiary vii.
- Elgi Compressors Do Brazil Imp. E. Exp. Ltda viii.
- ix. Elgi Equipments Australia Pty Ltd.
- Industrial Air Compressors Pty Ltd. and its subsidiaries x.
- xi. Elgi Compressors Italy S.R.L (formerly known as "Elgi Compressors Europe S.R.L") and its subsidiaries
Jointly controlled entities
- Elgi Sauer Compressors Limited i.
- ii. Industrial Air Solutions LLP
- iii. L.G. Balakrishnan & Bros
- Elgi Services iv.
-
- Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 below, nothing has come to our attention that causes us to believe that the accompanying Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015, including the manner in which it is to be disclosed, or that it contains any material misstatement.
-
- We did not review the interim financial results of six subsidiaries (including their relevant step down subsidiaries and a jointly controlled entity) included in the consolidated unaudited financial results, whose interim financial results reflect total assets of Rs. 7,520.26 million and net assets of Rs. 1,750.11 million as at September 30, 2019 and total revenues of Rs. 1,788.34 million, total net loss after tax Rs. 70.35 million and total comprehensive income of Rs. (46.27) million, for the quarter ended September 30, 2019 and net cash out flows of Rs. 113.45 million for the period from April 01, 2019 to September 30, 2019, as considered in the consolidated unaudited financial results. These interim financial results have been reviewed by other auditors in accordance with SRE 2400, Engagements to Review Historical Financial Statements and their reports dated November 07, 2019, vide which they have issued an unmodified conclusion, have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries (including their relevant stepdown subsidiaries and a jointly controlled entity) is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Our conclusion on the Statement is not modified in respect of the above matters.
- The consolidated unaudited financial results includes the interim financial results of four subsidiaries and two jointly controlled entities (representing joint operations) which have not been reviewed by their auditors, whose financial results reflect total assets of Rs. 398.01 million and net assets of Rs. 267.21 million as at September 30, 2019 and total revenue of Rs. 43.31 million, total net profit after tax of Rs. 2.52 million and total comprehensive income of Rs.4.88 million for the quarter ended September 30, 2019 and net cash inflows of Rs. 5.34 million for the period from April 01, 2019 to September 30, 2019, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs. 6.99 million and total comprehensive income of Rs.
10.23 million for the quarter ended September 30, 2019, as considered in the consolidated ttnaudited :financial results, in respect of two joint ventui-es, based on their interim financia] results which have not been reviewed by their auditors. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of the above matter.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016 Chartered Accountants
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Baskar Pannerselvam Partner Membership Number: 213126 UDIN: L9213126AAAAFZ9559
Place: Coimbatore Date: November 08, 2019
| Unaudited Standalone Statement of Cash Flows | (Rs. in Millions) Half year ended |
||
|---|---|---|---|
| Particulars | September 30, 2019 | September 30, 2018 | |
| Cash flow from operating activities | |||
| Profit before tax | 500.69 | 552.55 | |
| Adjustments/or: | |||
| Depreciation and amortisation expense | 178.43 | 166.16 | |
| Provision for bad and doubtful debts | 6.25 | 3.04 | |
| (Gain)/Loss on disposal of property, plant and equipment | 1.78 | (0.36) | |
| Rental Income from Investment property (net of expenses) | (6-43) | (5.75) | |
| Dividend and interest income classified as investing cash flows | (94.61) | (91.05) | |
| Net unrealised exchange differences | (12.26) | (31.73) | |
| Finance costs | 18.87 | 12.06 | |
| Impairment of investments | - | 35.62 | |
| Change in operating assets and liabilities | |||
| (Increase)/decrease in trade receivables | 161.74 | (25.34) | |
| (Increase)/decrease in inventories | (51.75) | 15.69 | |
| Decrease in trade payables | (444.33) | (75.53) | |
| (Increase)/decrease in other financial assets | (23.15) | 10.67 | |
| Increase in other current assets | (7.63) | (30.31) | |
| Increase in provisions | 8-47 | 24.29 | |
| Decrease in other financial liabilities | (98.98) | (92.60) | |
| Increase in other current liabilities | 8.55 | 17.75 | |
| Cash generated from operations | 145.64 | 485.16 | |
| Income taxes paid | (229.03) | (213.58) | |
| Net cash inflow/(outflow) from operating activities | (83.39) | 271.58 | |
| Cash flows from investing activities | |||
| Payments for property, plant and equipment and intangible assets | (197.09) | (178.77) | |
| Payments for acquisition of business/assets | (34.50) | - | |
| Investments in subsidiaries and joint ventures | (15.76) | (133.90) | |
| Investment in bank deposits | (6.12) | (9.35) | |
| Rental Income from Investment property (net of expenses) | 6-43 | 5-75 - |
|
| Loans to subsidiaries Loans to employees |
(196.21) (2.37) |
(9.81) | |
| Proceeds from sale of property, plant and equipment | 0.40 | 0.36 | |
| Dividends received | 72.64 | 69.86 | |
| Interest received | 18.24 | 17.10 | |
| Net cash outflow from investing activities | (354.34) | (238.76) | |
| Cash flows from financing activities | |||
| Net Short term Loans borrowed /(repayment) from/to banks | 638.97 | 151.51 | |
| Payment of lease liabilities | (3.10) | - | |
| Dividends paid to company's shareholders | (206-47) | (189.28) | |
| Interest paid | (16.20) | (12.06) | |
| Dividend Tax paid | (30.32) | (27.06) | |
| Net cash inflow /(outflow) from financing activities | 382.88 | (76.89) | |
| Net decrease in cash and cash equivalents | (54.85) | (44.07) | |
| Cash and cash equivalents at the beginning of the financial year | 137.41 | 246.25 | |
| Cash and cash equivalents at end of the year* | 82.56 | 202.18 |
• includes restricted cash and cash equivalents in relation to balance in unclaimed dividend account.
Place: Coimbatore Date: November 08, 2019
d of Directors
Managing Director
ELGI EQUIPMENTS LIMITED
Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India T: +91 422 2589 555, W :www.elgi.com, Toll - free No: 1800-425-3544, CIN: L29120TZ1960PLC000351
| Unaudited Consolidated Statement of Cash Flows | (Rs. in Millions) Half year ended |
||
|---|---|---|---|
| Particulars | September 30, 2019 | September 30, 2018 | |
| Cash flow from operating activities | |||
| Profit before tax | 430.31 | 604.63 | |
| Adjustments for | |||
| Depreciation and amortisation expense | 308.23 | 225.50 | |
| Allowance for doubtful debt | 8.64 | 6.62 | |
| Loss on disposal of property, plant and equipment | 1.20 | 5.45 | |
| Rental Income from Investment property (net of expenses) | (2.77) | (2.89) | |
| Exchange difference on translation of foreign operations | 30.92 | 84.95 | |
| Dividend and interest income classified as investing cash flows | (31.38) | (24.58) | |
| Finance costs | 75.52 | 42.97 | |
| Change in operating assets and liabilities, net of effects from purchase of subsidiary and loss of control over subsidiary |
|||
| Iocrease/(decrease) in trade receivables | (78.21) | 13.39 | |
| Increase in inventories | (230.67) | (101.82) | |
| Decrease in trade payables | (497.66) | (92.80) | |
| (lncrease)/decrcase in other financial assets | (25.45) | 5.62 | |
| Increase in other current assets | (15.93) | (47.35) | |
| Increase in provisions | 21.06 | 41.84 | |
| Decrease in other financial liabilities | (84.66) | (135.56) | |
| Increase in other current liabilities | 28.80 | 50.12 | |
| Cash generated from operations | (62.05) | 676.09 | |
| Income taxes paid | (278.36) | (230.94) | |
| Net cash inflow/(outflow) from operating activities | (340.41) | 445.15 | |
| Cash flows from investing activities | |||
| Payments for property, plant and equipment and intangible assets | (257.37) | (280.03) | |
| Payment for acquisition of subsidiary/business, net of cash acquired | (138-44) | (508-47) | |
| Payments for settlement of contingent consideration in relation to acquisition of subsidiary Payments for Investment Property |
(180.87) | - - |
|
| Investment in Joint Ventures | (2.92) | - | |
| Loans to employees | (9.43) | ||
| Proceeds from sale of property, plant and equipment | (4.00) | (10.12) | |
| Rental Income from Investment property (net of expenses) | 6.70 | 12.27 2.89 |
|
| Dividends received on equity instruments | 2.77 0.69 |
0.37 | |
| Dividends received from associate and joint venture | 15.32 | 12.49 | |
| (lnvestments)/Redemption of Bank Deposits | (51.02) | 49.62 | |
| Interest received | 24.65 | 23.83 | |
| Net cash outflow from investing activities | (593.92) | (697.15) | |
| Cash flows from financing activities | |||
| Interest paid | - (63.28) |
(34.37) | |
| Proceeds from Long term borrowings from banks | 601.45 | ||
| Repayment of Long term borrowings to banks | (236.02) | (230.84) | |
| Net Short term loans borrowed/ (repayment) from/to banks | 1,254.08 | 198.95 | |
| Payment of lease liabilities | (29.99) | - | |
| Dividends paid to company's shareholders | (206-47) | (189.27) | |
| Dividend Tax paid | (42.34) | (39.08) | |
| Net cash inflow from financing activities | 675.98 | 306.84 | |
| Net increase (decrease) in cash and cash equivalents | (258.35) | 54.84 | |
| Cash and cash equivalents at the beginning of the financial year | 702.38 | 653.74 | |
| Cash and cash equivalents at end of the year* | 444.03 | 708.58 |
• includes restricted cash and cash equivalents in relation to balance in unclaimed dividend account.
Place: Coimbatore Date: November 08, 2019
d of Directors
ELGI EQUIPMENTS LIMITED
Trichy Road, Singanallur, Coimbatore - 6�1005, Tomilnadu, India T: +91 422 2589 555, W :www.elgi.com, Toll - free NO: 1800-425-3544, CIN: L29120TZ1960PLC000351
Unaudited Standalone Balance Sheet as at September 30, 2019
(Rs. in Millions)
| Particulars | September 30, 2019 | March 31, 2019 |
|---|---|---|
| ASSETS | (Unaudited) | (Audited) |
| Non-current assets | ||
| Property, plant and equipment (including Right to use assets) | ||
| Capital work-in-progress | 2,161.48 | 2,098.16 |
| Investment properties | 42.05 | 51.42 |
| Goodwill | 55.71 | 55.98 |
| Other intangible assets | 1.23 | |
| Intangible assets under development | 63.76 | 42.38 |
| Financial assets | 5.75 | |
| (i) Investments | 1,753.44 | 1,746.06 |
| (ii) Loans | 162.64 | 63.77 |
| (iii) Other financial assets | 63.73 | 49.58 |
| Current tax assets (Net) | 117.12 | 20.14 |
| Other non-current assets | 110.41 | 103.97 |
| Total non-current assets | 4,531.57 | 4,237.21 |
| Current Assets | ||
| Inventories | 1,179.70 | 1,120.63 |
| Financial assets | ||
| (i) Trade receivables | 2,713.29 | 2,858.42 |
| (ii) Cash and cash equivalents | 82.56 | 137.41 |
| (iii) Bank balances other than (ii) above | 391.38 | 385.26 |
| (iv) Loans (v) Other financial assets |
256.43 | 160.93 |
| Other current assets | 41.91 | 29.18 |
| 359.38 | 351.75 | |
| Total current assets | 5,024.65 | 5,043.58 |
| Total assets | 9,556.22 | 9,280.79 |
| EQUITY AND LIABILITIES | ||
| EQUITY | ||
| Equity share capital | 158.45 | 158.45 |
| Other equity | 6,593.98 | 6,460.77 |
| Total equity | 6,752.43 | 6,619.22 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Financial liabilities | ||
| (i) Lease liabilities | 37.52 | |
| Provisions | 33.59 | 34.25 |
| Deferred tax liabilities (Net) | 13.78 | 34.39 |
| Total non-current liabilities | 84.89 | 68.64 |
| Current liabilities | ||
| Financial liabilities | ||
| (i) Borrowings | 1,066.95 | 423.76 |
| (ii) Trade payables (a) Total outstanding dues of micro enterprises and small enterprises |
298.93 | |
| 397.14 | ||
| (b) Total outstanding dues of creditors other than micro enterprises and small enterprises |
900.27 | 1,244.22 |
| (iii) Lease liabilities | 6.66 | |
| (iv) Other financial liabilities | 213.48 | 324.38 |
| Provisions | 122.21 | 101.58 |
| Other current liabilities | 110.40 | 101.85 |
| Total current liabilities | 2,718.90 | 2,592.93 |
| Total liabilities | 2,803.79 | 2,661.57 |
| Total equity and liabilities | 9,556.22 | 9,280.79 |
Place: Coimbatore Date: November 08, 2019
ELGI EQUIPMENTS LIMITED
Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India T: +91 422 2589 555, W :www.elgi.com, Toll - free No: 1800-425-3544, CIN: L29120TZ1960PLC000351
For and on behalf of the Board of Directors
awn Jairam Varadaraj
Managing Director
ELGi
Unaudited Consolidated Balance Sheet as at September 30, 2019
| September 30, 2019 | March 31, 2019 | |
|---|---|---|
| Particulars | (Unaudited) | (Audited) |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment (including Right to use assets) | 3,086.85 | 2,988.69 |
| Capital work-in-progress | 42.05 | 51.42 |
| Investment properties | 169.72 | 166.84 |
| Goodwill | 1,578.66 | 1,528.84 |
| Other intaugible assets | 435.94 | 357.78 |
| Intangible assets under development | $\alpha$ | 5.75 |
| Investments accounted for using the equity method | 69.88 | 68.35 |
| Financial assets | ||
| (i) Investments | 66.60 | 74.98 |
| (ii) Loans | 81.37 | 66.06 |
| (iii) Other financial assets | 83.52 | 65.39 |
| Deferred tax assets (Net) | 109.39 | 105.08 |
| Current tax assets (Net) | 137.38 | 27.98 |
| Other non-current assets | 110.42 | 103.97 |
| Total non-current assets | 5,971.78 | 5,611.13 |
| Current Assets | ||
| Inventories | 3,342.14 | 2,780.63 |
| Financial assets | ||
| (i) Trade receivables | 3.454.30 | 3,669.11 |
| (ii) Cash and cash equivalents | 444.03 | 702.38 |
| (iii) Bank balances other than (ii) above | 575.30 | 524.28 |
| (iv) Loans | 61.62 | 72.93 |
| (v) Other financial assets | 54.70 | 41.34 446.86 |
| Other current assets | 477.47 | |
| Asset classified as held for sale | 224.14 8,633.70 |
8,243.53 |
| Total current assets | 14,605.48 | 13,854.66 |
| Total assets | ||
| EQUITY AND LIABILITIES | ||
| EQUITY | 158.45 | 158.45 |
| Equity share capital Other equity |
7,592.34 | 7,550.65 |
| Total cquity | 7,750.79 | 7,709.10 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Phancial liabilities | ||
| (i) Long term borrowings | 654.53 | 763.46 |
| (ii) Lease liabilities | 305.85 | |
| Provisions | 66.38 | 69.21 |
| Deferred tax liabilities (Net) | 62.61 | 103.85 |
| Total non-current liabilities | 1,089.37 | 936.52 |
| Current liabilities | ||
| Financial liabilities | ||
| (i) Borrowings | 2,422.00 | 1,167.92 |
| (ii) Trade payables | ||
| (a) Total outstanding dues of micro enterprises and small enterprises | 343.41 | 440.67 |
| (b) Total outstanding dues of creditors other than micro enterprises and small enterprises |
1,625.82 | 2,026.22 |
| (iii) Lease liabilities | 92.22 | ۰ |
| (iv) Other financial liabilities | 825.18 | 1,201.28 |
| Provisions | 166.66 | 131.27 |
| Current Tax Liabilities (Net) | 41.17 | 21.62 |
| Other current liabilities | 248.86 | 220.06 |
| Total current liabilities | 5,765.32 | 5,209.04 |
| Total liabilities | 6,854.69 | 6,145.56 |
| BINISCICO Total equity and liabilities 120 |
14,605.48 | 13,854.66 |
Place: Coimbatore Date: November 08, 2019
ELGI EQUIPMENTS LIMITED
For and on behalf of the Board of Directors
Jairam Varadaraj Managing Director
aum
Trichy Road, Singanallur, Colmbatore - 641005, Tamilnadu, India
T: +91 422 2589 555, W:www.elgi.com, Tall - free No: 1800-425-3544, CIN: L29120TZ1960PLC000351
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FRN 01275417 N500010
Chennal
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Press Release - 08/11/201 9
Elgi Equipments Limited - Second quarter 2019-20 results
Elgi Equipments Ltd, manufacturer of air compressors, announced today the results for the second quarter ended 30111 September, 2019, posting a PAT of Rs. 11. 7 Crore for the quarter, compared to Rs. 25.5 Crore in the same period in 2018-2019 on a consolidated basis.
Consolidated sales for the quarter was Rs. 444.7 Crore as against Rs. 451.8 Crore in the corresponding quarter in 2018-2019.
The standalone PAT for the quarter was Rs. 24. 7 Crore as compared to Rs.17 .3 Crore in the same period in 2018-2019.
The Company's compressor business in the domestic market was under pressure butthe Company's international business, especially in some key markets has grown well. Overall, growth is muted on a consolidated basis.
The Company's automotive business also maintained its levels when compared to the corresponding quarter in 2018-2019, notwithstanding difficult market conditions.
Outlook for the third quarter 2019-20
Growth in domestic market will continue to be a challenge due to the unfavorable economic conditions. However, the Company hopes to balance this to a large extent by gains from its international business. The Company will also focus on de-risking and optimizing costs.
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