Shares of Elgi Equipments continued to make gains for the third straight session as the company’s September quarter results impressed investors.

What Happened: The air compressor manufacturer registered a 27% increase in consolidated profit after tax (PAT) to ₹91.3 crore in the September 2023 quarter, compared to ₹72 crore in the same quarter last year. This growth was driven by a 9% increase in consolidated sales to ₹806 crore.

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The company’s standalone PAT also grew by 14% to ₹83.3 crore, while revenue from operations declined marginally to ₹439 crore. The company attributed this dip in revenue to the overall sluggishness in demand, particularly in Europe, which is facing multiple challenges.

Despite the challenges, Elgi Equipments remains cautiously optimistic and expects marginal improvements in Q3 compared to Q2. In a press release, the company said that it is closely monitoring the geopolitical situation in the Middle East and its potential impact on its business.

Ace investor Nemish Shah owns a 1.69% stake in the company that is worth around ₹286.8 crore.

Price Action: Elgi Equipment’s share price was up 3.82% to trade at ₹535 on Thursday afternoon.

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