Companies

Lockdown impact: Pitti Engineering posts ₹9.78-crore loss in Q1

Our Bureau Hyderabad | Updated on August 14, 2020 Published on August 14, 2020

Pitti Engineering Ltd took a hit due to Covid-19 lockdown and posted a loss of ₹9.78 crore during the first quarter ended June 30 against a profit of ₹4.49 crore in the corresponding quarter last year.

The company posted a steep drop in revenue at ₹61.55 crore, against ₹149.69 crore in the corresponding quarter of last year.

Migration of labour also impacted the operations, resulting in reduced revenue and profits.

The company’s long-term order book, as of June, stood at ₹600 crore, while the regular order book stood at ₹400 crore. The orders include engineering products catering to user industries like diesel and electric locomotives, data farms, consumer durables, renewable energy, power generation and off-highway vehicles.

After reviewing the impact of Covid-19 on industry and company’s operations, Pitti Engineering will continue with its capex plan of ₹270 crore over the next three years.

Akshay Pitti, Vice-Chairman and Managing Director of the company, said, “Our operations were substantially impacted due to lockdown during the first quarter which resulted in decline in our revenues and profitability. But looking at the near zero economic activity during major part of the quarter, the impact can be said to be moderate. Further, considering the prevalence of normalcy in business environment, the company expects to return to normal operating levels as its order book continues to be robust.”

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Published on August 14, 2020
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