The Hindu Business Line : Pennar Industries profit, sales up

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Hyderabad Jan. 25 Pennar Industries Ltd has recorded gross sales income of Rs 144.34 crore and a net profit of Rs 6.76 crore for the quarter ended December 31, 2006 against gross sales of Rs 118.96 crore and a net profit of Rs 2.92 crore for the corresponding quarter last year.

The Chairman of Pennar Industries Ltd, Mr Nrupender Rao, said the company's fourth manufacturing facility at Chennai is nearing completion and the first phase of production is expected to commence in March. The Chennai plant with a capacity of 30,000 tonnes per annum has been set up with an investment of Rs 25 crore and is seen to be adding Rs 150 crore of turnover at full capacity utilisation.

Mr Rao told Business Line that the company's focus on value added profiles for the automotive, building and pollution control sectors had begun to generate good results. Apart from developing high strength members for Ashok Leyland Ltd, the company is working on the Delhi metro rail project.

Pennar has entered into agreements with cement manufacturing companies FL Smidth of Denmark and Hammon Research & Cotrell of Belgium for export of electrostatic precipitators electrodes useful in cement plants.

Given the current levels of sales growth, it is set to gross close to Rs 600 crore in turnover, with buoyancy seen in business from automotive, railways and other value-added product segments.

Explaining the company performance, Mr Rao said: "After a three pronged restructure process, which included business and financial restructure, we have entered a new phase of growth."