- 16 May 2022
- ICICIdirect Research
Elgi Equipment reports numbers higher than estimates on all fronts
ELGIEQUIP - 694 Change: -18.80 (-2.64 %)News: Elgi Equipments reported strong revenue growth for Q4FY22 with decent margins amid higher input costs. Consolidated revenue grew 19.2% YoY to Rs. 727.6 crore. Standalone revenue (domestic & direct exports compressor) grew 16% YoY to Rs. 456 crore (~63% of consolidated top-line). Absolute EBITDA grew by 34.1% to Rs. 106.2 crore on YoY basis with margins came strong at 14.6% in Q4FY22. PAT came in at Rs. 73.1 crore, up 68.5% on YoY aided by strong operational performance and higher other income
Views: Q4FY22 performance outperformed our expectations across fronts. On the topline front, the domestic air compressor segment, automotive segment witnessed good growth led by better demand and exports. EBITDA margins came in strong and beat (our estimates of 11.1%) despite higher commodity prices, operating costs. The automotive (ATS) business registered strong comeback and expected to further improve gradually in the long run. Overall, the company continues to surprise on the upside with every passing quarter as it makes inroads in international markets
Impact: Positive