Elgi Equipments announced its Q2 results on 11 November 2024, reporting solid year-on-year growth. The company’s revenue increased by 7.78%, while net profit rose by 3.76% compared to the same quarter last year. This performance points to stable growth despite ongoing market challenges.
Quarterly comparison shows strong gains
Compared to the previous quarter, Elgi Equipments posted an 8.46% rise in revenue, along with a notable 30.03% surge in profit. This demonstrates a strong recovery and a positive trend in profitability, showcasing the company’s ability to navigate recent challenges effectively.
Rising costs could impact margins
While the results were largely positive, Elgi Equipments did see a 0.72% quarter-on-quarter and 7.09% year-on-year increase in Selling, General, and Administrative (SG&A) expenses. This uptick may put pressure on future profit margins if not managed carefully.
Operating income and EPS
Operating income for Q2 showed mixed results. It increased by 29.32% from the last quarter, signifying a robust recovery, but saw a slight 1.1% decrease year-on-year. The company’s earnings per share (EPS) rose by 3.82% year-on-year to ₹2.99, a positive indicator for shareholders looking at long-term returns.
Stock performance and market position
Despite these financial gains, Elgi Equipments has faced some stock market volatility. The company’s stock delivered a -7.06% return over the past week and a -3.07% return over the last six months. However, it has managed a 10.64% year-to-date return, showcasing resilience in a competitive market.
Elgi Equipments currently has a market capitalisation of ₹19,061.54 crore, with a 52-week high of ₹798.95 and a low of ₹502.6, reflecting both growth potential and stock price fluctuations.
Analyst sentiment remains mixed
As of 13 November 2024, analysts have mixed opinions on Elgi Equipments’ future. One analyst has issued a Strong Sell rating, another a Sell rating, while two others recommend buying the stock. This split highlights differing perspectives on the company’s growth prospects amid industry and market trends.
