The Hindu Business Line : Pennar Industries Q1 net up at Rs 6.1 cr

FIs investment Recently inducted foreign investors - Eight Capital of New York and Spinnaker Capital of United Kingdom - who have pumped in Rs 122.4 crore in the form of convertible debentures.

Hyderabad , Aug. 1

Pennar Industries Ltd (PIL) has posted a turnover of Rs 123.17 crore and a net profit of Rs 6.1 crore for the first quarter of current fiscal ended June 30, 2006 as against a turnover of Rs 110 crore and a net profit of Rs 3.43 crore in the corresponding quarter of the previous fiscal.

For the 15 months period ended June, the company has posted a net sales turnover of Rs 558.96 crore (Rs 347.9 crore) and a net profit of Rs 18.04 crore as against a net loss of Rs 4.81 crore in the previous accounting period ended March 2005.

It recently concluded a financial restructuring exercise by inducting foreign investors - Eight Capital of New York and Spinnaker Capital of the UK.

Value added products

"We have utilised these funds for making a one-time settlement of the long-term debt to the tune of Rs 107 crore and also for capital expenditure on the Rs 25-crore project coming up at Chennai to produce value-added steel products and engineered steel components.

"We are now poised for growth and diversification and with the association of the foreign investors, we are aiming to develop export markets and forging strategic linkages with the global automobile majors," the Pennar Chairman, Mr Nrupender Rao, told Business Line.

Debt free

According to Mr Rao, the company expects to become debt-free in the next three years. "By the end of 18-months from now, we would be left with only Rs 36 crore of long-term debt. Of the Rs 122.4 crore raised from the foreign investors, Rs 50 crore would be converted into equity.

The foreign investors would have the discretion to convert the balance amount of Rs 72 crore into equity. We expect to repay the debt of Rs 36 crore in the next 18 months," he said.

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