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Elgi Equipments Ltd. Interim / Quarterly Report 2020
60896_rns_2020-08-14_693a6d97-dc8b-4b50-bb44-5adc24ba50a8.pdf
Interim / Quarterly Report
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| BSE 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 |
Dear Sirs, DATE: 14/08/2020
Sub: Intimation of the outcome of the Board Meeting held on 14th August, 2020 and Disclosure under SEBI (Listing Obligations & Disclosure Requirements) Regulation; 2015.
We refer to our Letter dated 06/08/2020, 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 30/06/2020:
The Unaudited Financial Results for the quarter ended 30/06/2020 in the format prescribed under Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015 and pursuant to SEBI Circular No. CIR/CFD/FAC/62/2016 dated 05th July, 2016. In this connection, we enclose the following:
a) Unaudited Standalone Financial Results for the quarter ended 30/06/2020
b) Unaudited Consolidated Financial Results for the quarter ended 30/06/2020
c) Limited Review Report issued by M/s. Price Waterhouse Chartered Accountants LLP, Chartered Accountants, Statutory Auditors on the Standalone and Consolidated Financial Results for the quarter ended 30/06/2020.
d) Segment Report
e) 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,
| (Rs. in Millions, except per equity share data) | |||||||
|---|---|---|---|---|---|---|---|
| Quarter ended | Year ended | ||||||
| S. | Particulars | June 30, 2020 | March 31, 2020 | June 30, 2019 | March 31, 2020 | ||
| No. | (Unaudited) | Audited (Refer note 6) |
(Unaudited) | (Audited) | |||
| 1 | Income | ||||||
| (a) Revenue from operations | 1,192.69 | 2,492.90 | 2,777.10 | 10,811.44 | |||
| (b) Other income | 56.96 | 306.11 | 25.86 | 494-31 | |||
| Total income | 1,249.65 | 2,799.01 | 2,802.96 | 11,305.75 | |||
| $\overline{\mathbf{2}}$ | Expenses | ||||||
| (a) Cost of materials consumed | 497.11 | 1,333.84 | 1,358.29 | 5.363.64 | |||
| (b) Purchases of stock-in-trade | 97.02 | 279.92 | 266.27 | 1,067.47 | |||
| (c) Changes in inventories of finished goods, stock-in-trade and work-in-progress |
113.30 | (209.36) | (15.23) | (190.43) | |||
| (d) Employee benefits expense | 342.34 | 365.69 | 454.65 | 1,631.32 | |||
| (e) Finance costs | 11.93 | 10.97 | 8.04 | 43.08 | |||
| (h) Depreciation and amortisation expense | 88.88 | 94.37 | 86.82 | 366.52 | |||
| (g) Other expenses | 194.09 | 406.29 | 447.16 | 1,746.22 | |||
| Total expenses | 1,344.67 | 2,281.72 | 2,606.00 | 10,027.82 | |||
| 3 | Profit/(loss) before tax (1 - 2) | (95.02) | 517.29 | 196.96 | 1,277.93 | ||
| 4 | Tax expense: | ||||||
| Current tax | (34.49) | 119.89 | 62.00 | 326.71 | |||
| Deferred tax | 10.07 | (22.73) | (4.30) | (53.02) 1,004.24 |
|||
| 5 | Net Profit/(loss) for the period (3 - 4) | (70.60) | 420.13 | 139.26 | |||
| 6 | Other comprehensive income/(loss), net of income tax | ||||||
| A. Items that will not be reclassified to profit or loss | 13-75 | (10.49) | (0.04) | (26.06) | |||
| B. Items that will be reclassified to profit or loss | |||||||
| Total other comprehensive income/(loss), net of income tax |
13-75 | (10.49) | (0.04) | (26.06) | |||
| 7 | Total comprehensive income/(loss) for the period (5+6) | (56.85) | 409.64 | 139.22 | 978.18 | ||
| 8 | Paid-up equity share capital (Face value Re. 1/- each) | 158.34 | 158.34 | 158.34 | 158.34 | ||
| 9 | Earnings/(loss) per share (of Re. 1/- each) (not annualised): | ||||||
| (a) Basic | (0.45) | 2.65 | 0.88 | 6.34 | |||
| (b) Diluted | (0.45) | 2.65 | 0.88 | 6.34 | |||
| 10 | Reserves excluding Revaluation reserve | 6,941.74 |
Statement of Standalone Unaudited Financial Results for the quarter ended June 30, 2020
Place: Coimbatore Date: August 14,2020 For and on behalf of the Board of Directors
ann Jairam Varadaraj Managing Director
MANUSCRIPT
ELGi
Notes:
| 7 | Figures for the comparative periods have been regrouped wherever necessary in conformity with present classification. |
|---|---|
| 6 | The figures for the quarter ended March 31, 2020 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2020 and the published year to date figures upto the third quarter ended December 31, 2019. |
| 5 | On the occasion of the 60th anniversary of the Company, the Board of Directors has recommended for issue of bonus shares in the proportion of one new equity share of the Company for every one existing equity shares of the Company held by the members, by capitalizing a part of the free reserves and/or the securities premium account of the Company as at March 31, 2020. The said issue of bonus shares is subject to the approval of the members. |
| 4 | 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. |
| 3 | The Company's operations and standalone financial results for the quarter ended June 30, 2020 have been adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by the central and state governments. Consequently, the operations were suspended for large part of the quarter and resumed only gradually with prescribed regulations and precautions. The standalone financial results for the current quarter are therefore not comparable with those of the previous periods. The Company has been taking several measures to address the operational challenges and to reduce costs. The Company has assessed the impact of pandemic on its financial results/position based on the internal and external information available up to the date of approval of these financial results and expects to recover the carrying amounts of assets. The Company will continue to monitor any material changes to future economic conditions and consequential impact on its standalone financial results. The Statutory auditors have drawn attention to the above matter in their auditor's report. |
| $\overline{\mathbf{2}}$ | 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. |
| 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 August 14, 2020. The statutory auditors of the Company have carried out a limited review of the above financial results for the quarter ended June 30, 2020. |
Place: Coimbatore Date: August 14,2020
For and on behalf of the Board of Directors
' ow Jairam Varddaraj Managing Director
ï
Statement of Consolidated Unaudited Financial Results for the quarter ended June 30, 2020
| (Rs. in Millions, except share and per equity share data) Ouarter ended |
Year ended | |||||
|---|---|---|---|---|---|---|
| S. No. |
Particulars | June 30, 2020 |
March 31, 2020 |
June 30, 2019 |
March 31, 2020 |
|
| (Unaudited) | Audited (Refer note 7) |
(Unaudited) | (Audited) | |||
| $\mathbf{I}$ | Income (a) Revenue from operations |
|||||
| (b) Other income (refer note 3) | 2,861.29 57.44 |
4,547.06 7.21 |
4,666.40 36.41 |
18,293.92 132.14 |
||
| Total income | 2,918.73 | 4,554.27 | 4,702.81 | 18,426.06 | ||
| $\mathbf{2}$ | Expenses | |||||
| (a) Cost of materials consumed | 843.11 | 1,854.45 | 2,169.82 | 7,571.66 | ||
| (b) Purchases of stock-in-trade | 484.60 | 467.25 | 751.80 | 2,531.23 | ||
| (c) Changes in inventories of finished goods, stock-in-trade and work-in-progress |
157.67 | 153.80 | (429.86) | (296.57) | ||
| (e) Employee benefits expense (refer note 3) | 875.98 | 1,020.63 | 1,010.56 | 4,045.64 | ||
| (f) Finance costs | 36.92 | 41.08 | 39.05 | 155.47 | ||
| (g) Depreciation and amortisation expense | 174.50 | 175.11 | 151.68 | 652.32 | ||
| (h) Other expenses | 413.14 | 780.52 | 752.40 | 3,083.10 | ||
| Total expenses | 2,985.92 | 4,492.84 | 4,445-45 | 17,742.85 | ||
| 3 | Profit/(loss) before share of profit/(loss) of joint ventures and $\text{tax}(1 - 2)$ |
(67.19) | 61.43 | 257.36 | 683.21 | |
| 4 | Share of Profit/(loss) of joint venture | (0.23) | (0.87) | 5.16 | 12.40 | |
| 5 | Profit/(loss) before tax $(3+4)$ | (67.42) | 60.56 | 262.52 | 695.61 | |
| 6 | Tax expense: | |||||
| Current tax | (4.25) | 97.16 | 104.32 | 378.94 | ||
| Deferred tax | 24.14 | (47.11) | (11.86) | (109.00) | ||
| 7 | Net Profit/(loss) for the period $(5-6)$ | (87.31) | 10.51 | 170.06 | 425.67 | |
| 8 | Other comprehensive income/(loss), 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 |
13.75 | (7.70) | (0.04) | (23.27) | ||
| Total other comprehensive income, net of income tax | 7.70 21.45 |
86.03 78.33 |
(1.48) (1.52) |
133.14 109.87 |
||
| 9 | Total comprehensive income/(loss) for the period (7 $+8)$ |
(65.86) | 88.84 | 168.54 | 535-54 | |
| Net Profit/(loss) attributable to: - Owners |
(87.31) | 10.51 | ||||
| - Non-controlling interests | 170.06 | 425.67 | ||||
| Total comprehensive income/(loss) attributable to: | ||||||
| Owners - Non-controlling interests |
(65.86) | 88.84 | 168.54 | 535-54 | ||
| 10 Paid-up equity share capital (Face value Re. 1/- each) | 158.34 | 158.34 | 158.34 | |||
| 158.34 | ||||||
| 11 | Earnings/(loss) per share (of Re. 1 /-each) (not annualised): | |||||
| (a) Basic (b) Diluted |
(0.55) (0.55) |
0.07 0.07 |
1.07 1.07 |
2.69 2.69 |
||
| 12 Reserves excluding Revaluation reserve | 7,531.48 |
For and on behalf of the Board of Directors
UNM Jairam Varadaraj Managing Director
Place: Coimbatore Date: August 14, 2020
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 August 14, 2020. The statutory auditors of the Company have carried out a limited review of the above financial results for the quarter ended June 30, 2020. |
|
|---|---|
| $\overline{2}$ | 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's operations and consolidated financial results for the quarter ended June 30, 2020 have been adversely impacted by the outbreak of COVID-19 pandemic and the consequent lockdown announced by governments in many of the jurisdictions in which the Group operates. Consequently, the operations were suspended for large part of the quarter and resumed only gradually with prescribed regulations and precautions. The consolidated financial results for the current quarter are therefore not comparable with those of the previous periods. The Group has been taking several measures to address the operational challenges, including cost reduction initiatives and availing of benefits under the various government support schemes announced in the countries where the Group operates. During the quarter ended June 30, 2020, the Group has recognised subsidies/benefits from government support schemes amounting to Rs. 149.84 million against Employee benefit expenses and Rs. 9.56 million as other income. The Group has assessed the impact of pandemic on its financial results/position based on the internal and external information available up to the date of approval of these financial results and expects to recover the carrying amounts of assets. The Group will continue to monitor any material changes to future economic conditions and consequential impact on its consolidated financial results. The Statutory auditors have drawn attention to the above matter in their auditor's report. |
| 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 | On the occasion of the 60th anniversary of the Company, the Board of Directors has recommended for issue of bonus shares in the proportion of one new equity share of the Company for every one existing equity shares of the Company held by the members, by capitalizing a part of the free reserves and/or the securities premium account of the Company as at March 31, 2020. The said issue of bonus shares is subject to the approval of the members. |
| 6 | 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 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. 18. Elgi Gulf Mechanical and Engineering Equipment Trading LLC 19. Michigan Air Solutions LLC. 20. Elgi Compressors Iberia S.L. 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.) 4. Compressed Air Solutions of Texas LLC (jointly controlled entity of Elgi Compressors USA Inc.) Joint operations 1. L.G. Balakrishnan & Bros. |
|
| $\overline{\mathbf{z}}$ | 2. Elgi Services The figures for the quarter ended March 31, 2020 are the balancing figures between the audited figures in respect of the full financial |
| year ended March 31, 2020 and the published year to date figures upto the third quarter ended December 31, 2019. | |
| 8 | Figures for the comparative periods have been regrouped wherever necessary in conformity with present classification. |
For and on behalf of the Board of Directors
aum
Jairam Vandaraj
Managing Director
Place: Coimbatore Date: August 14, 2020
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
| Annexure I - Segment Revenue, Results and Capital Employed | (Rs. in Millions) | ||||
|---|---|---|---|---|---|
| Year ended | |||||
| SI No. | Particulars | June 30, 2020 |
Quarter ended March 31, 2020 |
June 30, 2019 |
March 31, 2020 |
| (Unaudited) | (Audited) | (Unaudited) | (Audited) | ||
| 1 Segment Revenue | |||||
| a) Air Compressors | 2,666.36 | 4,172.02 | 4,213.98 | 16,575.42 | |
| b) Automotive equipments | 195.14 | 375.46 | 452.90 | 1,721.86 | |
| 2,861.50 | 4,547.48 | 4,666.88 | 18,297.28 | ||
| Less: Inter segment revenue Income from operations |
0.21 | 0.42 | 0.48 4,666.40 |
3.36 18,293.92 |
|
| 2,861.29 | 4,547.06 | ||||
| 2 Segment Results (Profit/(loss) before share of profit/(loss) of joint ventures and tax) |
|||||
| a) Air Compressors | (49.50) | 29.91 | 227.06 | 562.95 | |
| b) Automotive equipments | (17.84) | 31.34 | 30.07 | 119.39 | |
| (67.34) | 61.25 | 257.13 | 682.34 | ||
| Add:Inter segment result | 0.15 | 0.18 | 0.23 257.36 |
0.87 683.21 |
|
| (67.19) | 61.43 | ||||
| 3 Segment Assets | |||||
| a) Air Compressors | 14,134.54 | 14,364.35 | 13,702.27 | 14,364.35 | |
| b) Automotive equipments | 1,109.66 | 1,204.80 | 1,183.99 | 1,204.80 | |
| 15,244.20 | 15,569.15 | 14,886.26 | 15,569.15 | ||
| Less: Inter segment assets | 17.34 | 18.49 | 21.97 | 18.49 | |
| 15,226.86 | 15,550.66 | 14,864.29 | 15,550.66 | ||
| 4 Segment Liabilities | |||||
| a) Air Compressors | 7,330.99 | 7,497-35 | 6,641.33 | 7,497-35 | |
| b) Automotive equipments | 289.42 | 382.74 | 367.52 | 382.74 | |
| 7,620.41 | 7,880.09 | 7,008.85 | 7,880.09 | ||
| Less: Inter segment liabilities | 18.36 | 19.36 | 22.20 | 19.36 | |
| 7,602.05 | 7,860.73 | 6,986.65 | 7,860.73 | ||
| 5 Capital Employed [Segment Assets - Segment Liabilities] a) Air Compressors |
6,803.55 | 6,867.00 | 7,060.94 | 6,867.00 | |
| b) Automotive equipments | 820.24 | 822.06 | 816.47 | 822.06 | |
| 7,623.79 | 7,689.06 | 7,877.41 | 7,689.06 | ||
| Add: Inter segment capital employed | 1.02 | 0.87 | 0.23 | 0.87 | |
| 7,624.81 | 7,689.93 | 7,877.64 | 7,689.93 | ||
For and on behalf of the Board of Directors
Jairam Varadaraj Managing Director
Place: Coimbatore Date: August 14, 2020
Price Waterhouse Chartered Accountants LLP
Independent Auditors' Report on Review ofStandaJone Unaudited Financial Results
To The Board of Directors Elgi Equipments Limited Elgi Industrial Complex III Trichy Road, Singanallur Coimbatore - 641 005
-
- We have reviewed the standalone unaudited 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 June 30, 2020 which are included in the accompanying 'Statement of Standalone Unaudited Financial Results for the Quarter ended June 30, 2020' (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.
-
- The Statement is the responsibility of the Company's management and approved by 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 in accordance with the Standard on Review Engagement (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 could become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
-
- Based on our review 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 India, and bas 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 draw your attention to Note 3 to the statement, which describes the management's assessment of the impact of the outbreak of Coronavirus (COVID -19) on the business operations of the Company and the adjustments made to these standalone unaudited financial results. In view of the uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our conclusion is not modified in respect of this matter.
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- The Standalone unaudited financial results include 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 revenue of Rs. Nil, total net profit after tax of Rs. 0.08 million and total comprehensive income of Rs. 0.08 million for the quarter ended June 30, 2020 as considered in the standalone unaudited financial results. According to the information and explanations given to us by the management, these interim financial results are not material to the Company.
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
Baskar~am Partner Membership Number: 213126 UDIN: 20213126AAMDY7077
Place: Chennai Date: August 14, 2020
Price Waterhouse Chartered Accountants I.LP
Independent Auditors' Report on Review of Consolidated Unaudited Financial Resu1ts
To
The Board of Directors Elgi Equipments Limited Elgi Industrial Complex III Trichy Road, Singanallur, Coimbatore - 641 005
-
- We have reviewed the Consolidated Unaudited 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 Note 6 on the Statement) for the quarter ended June 30, 2020 which are included in the accompanying 'Statement of Consolidated Unaudited Financial results for the Quarter ended June 30, 2020' (the "Statement"). The Statement is being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEB I (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations"), which has been initialed by us for identification purposes.
-
- This Statement, which is the responsibility of the Parent's Management and has been approved by tbe Parent's Board of Directors, has been prepared in accordance with the reoognition 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 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.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, 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 entities
- ii. PT Elgi Equipments Indonesia
- iii. ATS Elgi Limited
- iv. Adison Precision Instruments Mannfacturing Company Limited
- v. Ergo Design Private Limited
[ Price Waterhouse Chartered Accountants LLP, &• F1oor, Prestige Palladium Bayon, · Chennai - 6oo 006, India T: +91 (44) 4228 5000, F: +91 (44) 4228 5100
Rcgietcrcd office and Had Office:. Suchda. Bhawan, uA Vlllhnu Dipmbar Marr,. New ~lli - 1100U2
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-
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- vi. Elgi Equipments (Zhejiang) Limited
- vii. Elgi Gulf FZE. and its subsidiary
- viii. Elgi Compressors Do Brazil Imp. E. Exp. Ltda
- ix. Elgi Equipments Australia Pty Ltd.
- x. Industrial Air Compressors Pty Ltd. and its subsidiaries
- xi. Elgi Compressors Italy S.R.L (formerly known as Elgi Compressors Europe SRL) and its subsidiaries
Jointly controlled entities
- i. Elgi Sauer Compressors Limited (Joint Venture)
- ii. Industrial Air Solutions LLP (Joint Venture)
- iii. L.G. Balakrishnan & Bros (Joint Operations)
- iv. Elgi Services (Joint Operations)
-
- Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 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, including the manner in which it is to be disclosed, or that it contains any material misstatement.
-
- We draw your attention to Note 3 to the statement, which describes the assessment of management of the Holding Company and one of its Subsidiary ATS Elgi limited, reviewed by us, of the impact of the outbreak of Coronavirus (COVID -19) on the business operations of the Company and its subsidiary and the adjustments made to these consolidated unaudited financial results. In view of the uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our conclusion is not modified in respect of this matter.
-
- We did not review the interim financial results of seven subsidiaries (including their relevant step-down subsidiaries and jointly controlled entities) included in the consolidated unaudited financial results, whose interim financial results reflect total revenues of Rs. 1,810.15 million, total net loss after tax of Rs. 6.75 million and total comprehensive loss of Rs. 7.31 million, for the quarter ended June 30, 2020, 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 August 13, 2020, 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 step-down subsidiaries and jointly controlled entities), 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.
Price Waterhouse Chartered Accountants LLP
- The consolidated unaudited financial results includes the interim financial results of three subsidiaries and two jointly controlled entities (representing joint operations) which have not been reviewed by their auditors, whose interim financial results reflect total revenue of Rs. 18.97 million, total net profit after tax of Rs. 1.58 million and total comprehensive income of Rs. 6.01 million for the quarter ended June 30, 2020, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of net loss after tax of Rs. 0.72 million and total comprehensive loss of Rs. 0.72 million for the quarter ended June 30, 2020 as considered in the consolidated unaudited financial results, in respect of two joint ventures, based on their interim financial results which have not been reviewed by their auditors. Acg>rding 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: 0127,54N/N500016 Chartered Accountants
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Partner Membership Number: 213126 UDIN: 20213126AAAADZ2724
Place: Chennai Date: August 14, 2020
Press Release - 14/08/2020
Elgi Equipments Limited - First quarter 2020-21 results
Elgi Equipments Ltd, manufacturer of air compressors, announced today the results for the first quarter ended 30th June, 2020, posting a negative PAT of Rs.8.7 Crore for the quarter, compared to a positive PAT of Rs. 17 Crore in the same period in 2019-2020 on a consolidated basis. The COVID-19 pandemic affected the company's business globally with the most severe impact seen in April'20 when lockdowns were in force in multiple geographies.
Consolidated sales for the quarter was Rs.286 Crore as against Rs.467 Crore in the corresponding quarter in 2019-2020.
The standalone negative PAT for the quarter was Rs.7.1 Crore as compared to a positive PAT of Rs.13.9 Crore in the same period in 2019-20.
Despite the COVID-19 pandemic, the Company's compressor business performed well in select markets like Australia and USA while in India sales was impacted due to complete lockdown in April'20 and partial lockdowns in May / June. In India, segments such as Pharmaceuticals, Food & Beverage are doing reasonably well, post lifting of the complete lockdown. Capacity utilization in most geographies has been significantly below normal levels and capacity creation has been subdued.
The Company's automotive business sales declined by 58% compared to the corresponding period in the last year as the COVID-19 pandemic has impacted the sales of the division. But the division has witnessed progressive improvement in the sales revenue from June 2020 onwards.
The Board of Directors has considered and recommended issue of bonus shares in the proportion of one new equity share for every one existing equity share to the shareholders.
Outlook for the second quarter 2020-21
Business outlook for year ahead continues to be uncertain even though the Company has improved sales and inflows in June'20 and July'20. Many countries are slowly limping back to normal and business is expected to grow progressively from now on. The Company will continue to monitor the growth of segments that are showing promise. Overall, the outlook appears to be better for Q2 than Q1.
For ELGI EQUIPMENTS LIMITED
AM VARADARAJ Managing Director