The Hindu Business Line : Pennar posts higher net; new plant boosts sales

Hyderabad, July 16 Pennar Industries Ltd, has registered gross sales of Rs 200 crore with a net profit of Rs 9.66 crore for the first quarter ending June 30, 2008 as against sales of Rs 147.05 crore and net profit of Rs 5.5 crore for the corresponding quarter last year.

The company board which met here on Wednesday also took on audited results for the financial year ended March 31, 2008 that reflected revenues of Rs 641.12 crore and net profit of Rs 30.8 crore.

The company sales spurted with the addition of a new plant in Chennai and a much diversified portfolio. The new plant is likely to add sales volumes of about Rs 150 crore this fiscal of the overall revenue projection of Rs 900 crore, according to Mr Nrupender Rao, Vice-Chairman, Pennar Industries.

Addressing a press conference along with Mr Ch. Anantha Reddy, Executive Director, and Mr R. Ravi, Chief Financial Officer, Mr Rao said that the company is in the process of investing about Rs 45 crore in the Chennai facility; and at Hyderabad, to create a base to serve the new generation railway coaches.

While the business momentum continues to be buoyant due to increased activity in construction, the company management expressed concern over fluctuating steel prices, which could lead to uncertainties.

“We are in the process of creating additional facility in the site located on Chennai-Tirupathi road, where we have a 38-acre site,” Mr Reddy said.

Pennar now has five manufacturing units, two near Hyderabad, two in Chennai, and another at Hosur.

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