Elgi Equipments Ltd. — Interim / Quarterly Report 2020

Feb 7, 2020

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: 1007 DATE: 07/02/2020

Dear Sirs

Sub: Intimation of the outcome of the Board Meeting held on 07th February, 2020 and Disclosure under SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015.

We refer to our Letter dated 21/01/2020, 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 followingi

Unaudited Financial Result for the quarter ended 31/12/2019:

The Unaudited Financial Results for the Quarter ended 31/12/2019 m 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
• b) Unaudited Consolidated Financial Results
• c) Segment Report
• d) Limited Review 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 For EL_,,?I EQUIPMENTS LIMITED

{fl~

SHY AM VASUDEVAN COMPLIANCE OFFICER Encl: As Above.

ELGI EQUIPMENTS LIMITED

Trlchy Road, Sl,1ganallur, Coimbatore - 641005, Tamilnadu, lndlo T : +91 U2i 2589 SSS, W :www.elgi.com, Toll - free No : 1800-1!25·3544, C1"4 : l29120TZ1960PLC000351

Statement of Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2019

	Particulars		Quarter ended		(Rs. in Millions, except per equity share data) Nine months ended		Year ended
S. No.		December 31, 2019	September 30, 2019	December 31, 2018	December 31, 2019	December 31, 2018	March 31, 2019
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
$\mathbf{1}$	Income
	(a) Revenue from operations	2,828.78	2,712.66	2,958.91	8,318.54	8,391.93	11,770.79
	(b) Other income	62.81	101.63	19.84	188.20	144.23	163.11
	Total income	2,891.59	2,814.29	2,978.75	8,506.74	8,536.16	11,933.90
$\mathbf{z}$	Expenses
	(a) Cost of materials consumed	1,381.31	1,290.20	1,517.05	4,029.80	4,047.08	5,668.96
	(b) Purchases of stock-in-trade	254.16	267.12	227.21	787.55	860.18	1,218.29
	(c) Changes in inventories of finished goods, stock-in-trade and work-in-progress	16.19	17.97	(3.81)	18.93	(10.86)	27.84
	(d) Employee benefits expense	424.84	386.14	392.33	1,265.63	1,166.07	1,564.34
	(e) Finance costs	13.24	10.83	5.89	32.11	17.95	23.71
	(h) Depreciation and amortisation expense	93.72	91.61	86.01	272.15	252.17	338.47
	(g) Other expenses	448.18 2,631.64	446.69	480.66	1,339.93 7,746.10	1,377.61 7,710.20	1,886.29 10,727.90
	Total expenses		2,510.56	2,705-34
3	Profit before tax (1 - 2)	259.95	303.73	273.41	760.64	825.96	1,206.00
4	Tax expense:						378.65
	Current tax	71.88	72.94	90.38	206.82 (30.29)	273.30 (26.96)	(20.09)
5	Deferred tax Net Profit for the period $(3 - 4)$	(9.68)	(16.31)	(7.61) 190.64	584.11	579.62	847.44
		197.75	247.10
6	Other comprehensive income, net of income tax A. Items that will not be reclassified to profit or loss	1.42	(16.95)	7.82	(15.57)	(10.98)	(10.78)
	B. Items that will be reclassified to profit or loss
	Total other comprehensive income, net of income tax	1.42	(16.95)	7.82	(15.57)	(10.98)	(10.78)
7	Total comprehensive income for the period $(5+6)$	199.17	230.15	198.46	568,54	568.64	836.66
8	Paid-up equity share capital (Face value Re. 1/- each)	158.34	158.34	158.34	158.34	158.34	158.34
9	Earnings per share (of Re. 1 /- each) (not annualised): (a) Basic (b) Diluted	1.25 1.25	1.56 1.56	1.20 1,20	3.69 3.69	3.66 3.66	5.35 $5 - 35$
10	Reserves excluding Revaluation reserve						6,460.77

Place: Coimbatore Date: February 07, 2020

amn Jairam Varadaraj Managing Director

For and on behalf of the Board of Directors

1	The above standalone financi~I results were reviewed by tlle Audit Committee and approved by ths Board of Dlroctors of Elg! Equipments Limited ("the Company'') at their meet-ing held on Febl'l.lary 07, 2020. Tile statutory auditors of the Company have carried out a limited review of the above financial results for the quarter and nine months ended December 31, 2019,
2	This statement has been prepared in a <x!ol'druicc (ind="" 133="" 2015="" accounting="" as)="" companies="" companiesAct, 2013 Q!ld other recognised nccountlng pract:lce.!l and policies to the extent applicable.
3	111e Company hns adopted Ind AS u6 "Leases" Wlth effe~t from April 1, 2019 t~~i11.g modified relrospectlve approach. The adoption of the new standard did not have any material Impact on the profits of tho.Company,
4	The business ncUv!tlcs reflected in the above financial results comprise of manufacturi11g and sale of compressors. Accordfngiy, there is no 0U1cr reportable scgmchl as por Ind AS 108 Operating Soginents.
	5 The Shareholders of the C'.ompany have approved the Elgi Equipments Limited Employee Stock Option Pian 2019 (Elgi ESOP 2019), The plan provides for reservation of options not exceedlng 1,584,545 to he granted to eligible employees of the Company and its subsidiarie.,, subject to fulfilment of eligibility criteria, 'J'he plan shall be administered through u ~via acquisition of shares from the secondary market. AB of December 31, 2019 no options haw b~en gnmtcd und11r tho plan.
6	Previous period / year figures have beeti regrouped / rei:hIBSifled to tnukc thclll co1npurnblc with those of current period.

For end on behalf of the Board of Directors

Managing Plrector

PlOC!ll Coimbatore Dale: February 07, :io20

Statement of Consolidated Unaudited Financial Results for the quarter and nine months ended December 31, 2019

						(Rs. in Millions, except share and per equity share data)
			Quarter ended			Nine months ended	Year ended
s. No.	Particulars	December 31, 2019	September 30, 2019	December 31, 2018	December 31, 2019	December 31, 2018	March 31. 2019
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
$\mathbf 1$	Income (a) Revenue from operations (b) Other income	4,633.02 76.52	4,447.44 31.86	4,701.72 18.51	13,746.86 124.93	13,354.38 63.73	18,634.69 96.55
	Total income	4,709.54	4,479.30	4,720.23	13,871.79	13,418.11	18,731.24
$\overline{\mathbf{2}}$	Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, stock-in-trade	1,810.71 639.92 12.19	1,736.68 672.26 (32.70)	2,005.24 539.70 25.17	5,717.21 2,063.98 (450.37)	5,500.73 1,899.20 (66.02)	7,820.73 2,464.15 26.27
	and work-in-progress (e) Employee benefits expense (f) Finance costs	1,052.22 38.87	962.23 36.47	885.68 27.40	3,025.01 114.39	2,500.18 70.37	3.408.30 89.85
	(g) Depreciation and amortisation expense (h) Other expenses	168.98 795.18	156.55 774.86	142.92 771.38	477.21 2,302.58	368.41 2,217.87	511.07 2,997.70
	Total expenses	4,518.07	4,306.35	4,397-49	13,250.01	12,490.74	17,318.07
3	Profit before tax (1 - 2)	191.47	172.95	322.74	621.78	927.37	1,413.17
$\overline{4}$	Tax expense: Current tax Deferred tax	90.38 (21.56)	87.08 (28.47)	111.14 (18.85)	281.78 (61.89)	326,24 (47.79)	480.82 (76.43)
5	Net Profit for the period before share of profit of joint ventures (3 - 4)	122.65	114.34	230.45	401.89	648.92	1,008.78
6	Share of Profit of joint venture	5.93	2.18	3.77	13.27	25.27	21.87
7	Net Profit for the period $(5 + 6)$	128.58	116.52	234.22	415.16	674.19	1,030.65
8	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	1.42 26.92	(16.95) 21.67	7.82 (91.00)	(15.57) 47.11	(9.94) 65.92	(9.93) 20.11 10.18
	Total other comprehensive income, net of income tax	28.34	4.72	(83.18)	31.54	55.98
9	Total comprehensive income for the period $(7+8)$	156.92	121.24	151.04	446.70	730.17	1,040.83
	Net Profit attributable to: Owners Non-controlling interests	128.58	116.52	234.22	415.16	674.19	1,030.65
	Total comprehensive income attributable to: - Owners Non-controlling interests	156.92	121.24	151.04	446.70	730.17	1,040.83
10	Paid-up equity share capital (Face value Re. 1/- each)	158.34	158.34	158.34	158.34	158.34	158.34
11 12	Earnings per share (of Re. 1 /- each) (not annualised): (a) Basic (b) Diluted Reserves excluding Revaluation reserve	0.81 0.81	0.74 0.74	1.48 1.48	2.62 2.62	4.26 4.26	6.51 6.51 7,550.65

For and on behalf of the Board of Directors

$\mathcal{W}$ Jairam Varadaraj Managing Director

Place: Colmbatore Date: February 07, 2020

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: $\frac{1}{2\sqrt{2}}$

$\mathbf{I}$	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 February 07, 2020. The statutory auditors of the Company have carried out a limited review of the above financial results for the quarter and nine months ended December 31, 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.
$\overline{4}$	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
	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.) Joint operations
	1. L.G. Balakrishnan & Bros.
	2. Elgi Services
	The Shareholders of the Company have approved the Elgi Equipments Limited Employee Stock Option Plan 2019 (Elgi ESOP 2019). The plan provides for reservation of options not exceeding 1,584,545 to be granted to eligible employees of the Company and its subsidiaries, subject to fulfilment of eligibility criteria. The plan shall be administered through a trust via acquisition of shares from the secondary market. As of December 31, 2019 no options have been granted under the plan.
7	Previous period / year figures have been regrouped / reclassified to make them comparable with those of current period.

$\cdot$

For and on behalf of the Board of Directors

Place: Coimbatore Date: February 07, 2020

am Jairam Varadaraj
Managing Director

Chartered Accou AAC-500 754N / N50001 RN 0 4 Chennai

ELGI EQUIPMENTS LIMITED

r.

Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India T: +91 422 2589 555, W :www.elgi.com, Toll - free No: 1800-425-3544, CIN: L29120TZ1960PLC000351

垃

							(Rs. in Millions)
			Quarter ended			Nine months ended	Year ended
SINo.	Particulars	December 31, 2019	September 30, 2019	December 31, 2018	December 31, 2019	December 31, 2018	March 31. 2019
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
	1 Segment Revenue
	a) Air Compressors	4,221.38	3,968.04	4,229.95	12,403.40	11,970.97	16,740.16
	b) Automotive equipments	413.17	480.33	472.89	1,346.40	1,385.64	1,897.42
		4,634-55	4,448.37	4,702.84	13,749.80	13,356.61	18,637.58
	Less: Inter segment revenue	1.53	0.93	1.12	2.94	2.23	2,89
	Income from operations	4,633.02	4,447.44	4,701.72	13,746.86	13,354.38	18,634.69
2	Segment Results
	(Profit before tax)
	a) Air Compressors	167.99	137.99	298.03	533.04	851.57	1,292.47
	b) Automotive equipments	23.27	34.71	24.71	88.05 621.09	75.80	120.70 1,413.17
	Add:Inter segment result	191.26 0.21	172.70 0.25	322.74	0.69	927.37
		191.47	172.95	322.74	621.78	927.37	1,413.17
$\mathbf{a}$	Segment Assets
	a) Air Compressors	14,162.69	13,502.96	12,580.00	14,162.69	12,580.00	12,695.56
	b) Automotive equipments	1,107.76	1,123.33	1,112.00	1,107.76	1,112.00	1,159.10
		15,270.45	14,626.29	13,692.00	15,270.45	13,692.00	13,854.66
	Less: Inter segment assets	19.64 15,250.81	20.81 14,605.48	13,692.00	19.64 15,250.81	13,692.00	13,854.66
	Segment Liabilities
	a) Air Compressors	7,061.51	6,541.00	5,951.20	7,061.51	5,951.20	5,779.80
	b) Automotive equipments	301.91	334.97	350.15	301.91	350.15	365.76
		7,363.42	6,875.97	6,301.35	7,363.42	6,301.35	6,145.56
	Less: Inter segment liabilities	20.33	21.28		20.33	6,301.35	6,145.56
		7,343.09	6,854.69	6,301.35	7,343.09
5.	Capital Employed
	[Segment Assets - Segment Liabilities]
	a) Air Compressors	7,101.18	6,961.96	6.628.80	7,101.18	6,628.80	6,915.76
	b) Automotive equipments	805.85	788.36	761.85	805.85	761.85	793-34
		7,907.03	7,750.32	7,390.65	7,907.03	7,390.65	7,709.10
	Add: Inter segment capital employed	0.69	0.47	7,390.65	0.69 7,907.72	7,390.65	7,709.10
		7,907.72	7,750.79

For and on behalf of the Board of Directors

Place: Coimbatore Date : February 07, 2020

ELGI EQUIPMENTS LIMITED

S

Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India T: +91 422 2589 555, W:www.elgi.com, Toll - free No: 1800-425-3544, CIN: L29120TZ1960PLC000351

$\overline{\phantom{a}}$

Independent Auditors' Report on Review of Interim Standalone Unaudited Financial Results

To The Board of Directors Elgi Equipments Limited Elgi Industrial Complex III Trichy Road, Singanallur Coimbatore - 641 005

• 1. We have reviewed the standalone unaudited financial results of Elgi Equipments Limited (the •icompany") [in which are included results of two jointly controlled entities (representing joint operations)] for the quarter ended December 31, 2019, which are included in the accompanying 'Statement of Standalone Unaudited Financial Results for the Quarter and nine months ended December 31, 2019', 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.
• 1. nus Statement, which 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.
• 1. We conducted our review of the Statement 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 the Standards on Auditing and consequently does not enable us to obtain assurance that we could become aware of all significant matters that might me identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Tbe 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.0.28 Million and total comprehensive income of Rs.0.28 Million for the quarter ended December 31, 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,

Our conclusion on the statement is not modified in respect of the above matter.

Regl•lorttt umce and H11ad umce: 9uoh~t~ Bh&wM, 11A Vishnu Oigamb.>r Marg, New Oelhl 110 002

::;;~~taterrhousJe (• Partnar6hip Fl'."1) co1wertqd inlo ~rice WalnrhQu•e Chartgrod Aotounlanls LLP (a Llm,led Llabilily Partnijn;hlp with LLP fdi,nlily no. LLPIN AAc.5001) bo..ebt rom uly 25, 2014. Posl •I\$ wnverslon to Pnu, Walerhov.., Ch&rle1ed.Acc<:1u11bl11l9 LLP, Its ICAI reglsIr0i11>n nurnber Is 012754N/N5(1M16 (ICAI reglstrallnn num r ttfore convw\$lnn w~• 012754N)

1. 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 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/Nsooo16 Chartered Accountants

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Bask~rselvam Partner Membership Number: 213126 UDIN: ioJ,13tJ6AAAABW33~5

Place: Coimbatore Date: February 07, 2020

Independent Auditor's Report 011 Review of Interim Consolidated Unaudited Financial Results

To The Board of Directors Elgi Equipments Limited Elgi Industrial Complex III Trichy Road, Singanallur Coimbatore - 641 005

• 1. We have reviewed the Consolidated Unaudited Financial Results of Elgi Equipments Limited (the "Parent"), its subsidiaries (the pai·ent and its subsidiaries hereinafter referred to as the "Group"), and jointly controlled entities (refer Note 5 to the statement) for the quarter ended December 31, 2019 which are included in the accompanying 'Statement of Consolidated Unaudited Financial Results for the quarter and nine months ended December 31, 2019, 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, 2015, as amended (the "Listing Regulations"), which has been initialed by us for identification purposes.
• 1. 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 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 Acl, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 3, We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Infonnation Perlonned 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 £.nancial 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) to the extent applicable.

1. The Statement includes the results of the following entities:

Subsidiaries:

• 1. Elgi Compressor USA Inc., its subsidiaries and its jointly controlled entity
• 1. PT Elgi Equipments Indonesia
• 1. ATS Elgi Limited

Price Watel'liouse Charte1·ed Accountants LLP, 8th Floo,., Prestige Palladium Chennai - 600 006, India T: +91 (44) 4228 5000, F: +91 (44) 4228 5100

Regl&lorod omce and Hasd omoa: S1.Jchela Bhawon, 11A Vishnu OigM1bar Maro. Now Deihl 110 ooi

Plice Walarhou~c (~ Potlflershlp Finn) co11verted lnlo Prica W•lerhouse Charl<:1<:d Accoun1nn1!\ LLP (a L1mll~d Liftbmty PartnAn;hlp wilh LLP kjnnlity no: LLPIN AAC·5001) with offeel r,um July 25, 2014. Post !I& convorsrun lo l•rlce w~In,I1ouse Chartored Aecounlanls LLP, il.!I ICAI regl\$lr~lio,1 number Is 012764N/N50001G (IC/II reglslr~llon number bnlore CQtlverslon 1-,s,; 012754N)

• 1. Adison Precision Instruments Manufacturing Company Limited
• 1. Ergo design Private Limited
• 1. Elgi Equipments (Zhejiang) Limited
• 1. Elgi Gulf FZE. and its subsidiary
• 1. Elgi Compressors Do Brazil Imp. E. Exp. Ltda
• 1. Elgi Equipments Australia Pty Ltd
• 1. Industrial Air Compressors Pty Ltd and its subsidiaries
• 1. Elgi Compressors Italy S.R.L (Formerly known as "Elgi Compressors Europe S.R.L") and its subsidiaries.

Jointly Controlled Entities

• 1. Elgi Sauer Compressors Limited
• 1. Industrial Afr Solutions LLP
• 1. L.G.Dalakrishnan & Dros
• 1. Elgi Services
• 5, Based on our review conducted and procedures perlormed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph ⁶below1 nothing has come to ow- 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 mate1ial misstatement.
• 1. We did not review the interim financial results of six subsidiaries (including their relevant stepdown subsidiaries and a jointly controlled entity) included in the consolidated 1111audited financial results, whose interim financial results reflect total revenues of Rs. 1965.63 million, total net loss after tax Rs. 85.35 million and total comprehensive income of Rs. (54.62) million, for the quarter ended December 311 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 February 6, 20201 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.

1. 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 revenue of Rs. 37.47 mlllion, total net profit after tax of Rs.0.01 Million and total comprehensive income of Rs. (0.34) million for the quaiter ended December 31, 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. 6.44 million and total comprehensive income of Rs. 4.08 million for the quarter ended December 311 2019, 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.

According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.

OW' conclusion on the Statement is not modified in respect of the above matters.

For Price Waterhouse Chartered Accountants LLP Finn Registration Nwnber: 012754N/N500016 Chartered Accountants

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Place: Coimbatore Date: February 07, 2020

Press Release - 07/02/2020

Elgi Equipments Limited - Third Quarter 2019-20 results

Elgi Equipments Ltd, manufacturer of air compressors, announced today the results for the third quarter ended 31 st December, 2019, posting a PAT of Rs. 12.9 Crore for the quarter, compared to Rs. 23.4 Crore in the same period in 2018-2019 on a consolidated basis.

Consolidated sales for the quarter was Rs. 463 Crore as against Rs. 470 Crore in the corresponding quarter in 2018-2019.

The standalone PAT for the quarter was Rs. 19.8 Crore as compared to Rs.19.1 Crore in the same period In 2018-19.

Though the Company has faced a challenging market, it has concentrated on improving its market share and has grown its international business by upwards of 7%. This has helped the Company to maintain its consolidated top line compared to the corresponding quarter in 2018-2019.

The Company's automotive business saw a 13% drop from its sales levels when compared to the corresponding quarter in 2018-2019, due to unfavorable market conditions faced by the automotive industry.

Outlook for the fourth quarter 2019-20

Growth in domestic market is expected to pick up marginally in the backdrop of more government spending in infrastructure. The Company's focus on de-risking and optimizing costs will continue.