Goa-based manufacturer and supplier of medical, industrial and rare gases, Southern Gas Limited, has recorded a growth in sales income during its fiscal second quarter (Q2) ending 30th September 2015.
Founded in 1963, Southern Gas manufactures the purest form of medical gases that includes oxygen, nitrogen, helium, argon, hydrogen, carbon dioxide, liquid oxygen, and rare gases.
The company has a presence in four states across the country and nine production facilities operational in Karnataka, Kerala and Tamil Nadu states, serving industries ranging from automobiles, food and pharmaceuticals, to construction, mining and healthcare.
The company’s income from sales during its second quarter (July to September 2015) was recorded at Rs 69.7m ($1m approx.), compared to Rs 58.4m ($884,000) recorded during the same period last year.
During the quarter, the company also recorded an increase in net profit at Rs 2.6m ($40,000), against net profit of Rs 1.76m ($26,000) posted during the previous year’s quarter.
Overall, during the first half (H1) period (April to September 2015), income from operations was up to Rs 133.2m ($2m) compared to Rs 117.2m ($1.7m) during the same period last year. Net profit also recorded growth at Rs 5.3m, against Rs 3.9m recorded in the same period last year.
The major challenge for the company, it explained in its 2014-15 annual report, is over-supply and the low prices in the market today. The report also added that gas manufacturers are emerging from the period of high growth and rapid expansion into an era of over-supply and the companies should now redirect their strategy to achieve sustainability in the market.