Q1 2025 Elgi Equipments Ltd Earnings Call Transcript
Key Points
- Elgi Equipments Ltd (BOM:522074) reported an 11% revenue growth over the previous year for the same quarter.
- Profit Before Tax (PBT) improved by 17% compared to the previous quarter.
- Strong growth in the Indian market, with a notable 18% increase in the standalone business.
- The company is optimistic about breaking even in Europe this year.
- New product launches and a partnership with McKinsey for a go-to-market strategy in India are expected to drive future growth.
- Challenges in the North American market due to ERP implementation issues and a 30% market drop in the portable vertical.
- Inventory buildup due to increased transit times from India to Europe and America, affecting cash generation.
- Increased employee costs by 7%, with an 11% rise in India.
- Logistics issues in the Red Sea and congestion in China and Singapore have led to higher freight rates and longer lead times.
- Lower profitability in the North American market compared to expectations, although improvements are anticipated in the next quarters.
-- We have with us Mr. Jairam Varadaraj, Managing Director, representing the company. The event will start by a brief press presentation by Mr. Jairam Varadaraj, highlighting the quarterly financial performance and the business updates followed by Q&A session.
Mr. Jairam, you can start your presentation. Thank you.
Thank you, Kamlesh. Ladies and gentlemen, thank you so much for your time this morning. And as always, thank you, Kamlesh, for organizing this. Let me share the deck. Just give me a minute, please. Are you aiming to see my deck?
Yes, sir, it's visible. Yes.
Thank you. So I want us to go directly to the EBITDA compared to the previous year. We had a pretty good profitability. I will dissect it a little bit in the context of this.
So if you really look at the bridge from last year's to
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