Pitti Engineering net down 20 per cent on lower realisation

Our Bureau Mumbai | Updated on February 11, 2020

Pitti Engineering, one of the  largest manufacturers of sheet metal components including motor cores, sub-assemblies, die-cast rotors and machining of metal components, has reported 20 per cent fall in December quarter net profit at Rs 4 crore against Rs 5 crore logged in same period last year due to drop in demand.

Revenue from operations was down 28 per cent at Rs 118 crore (Rs 165 crore).

Akshay S Pitti, Vice Chairman and Managing Director, Pitti Engineering said there was a  fall in revenues this year on account of fall in steel prices, consumption of pipeline stocks and deferral in stock replenishment by certain customers. The off-take during the period under review was also down, he said.

However, he said that the profit was up due to better product mix.

"We are hopeful that the recovery in infrastructure and capital goods sector will be seen soon," he added.

The Board of the company has approved plan to enhance its installed capacity from the existing 36,000 tonnes to 46,000 tonnes for sheet metal components and from 247,600 hours to 405,600 hours for machining. These projects will be completed in 36 months.

The new capex approved by the Board is mainly for enhancing machining capacity as it was  not able to take up any further machining orders due to capacity constraints, he said.

As of December-end, the company's order book was at Rs 600 crore comprises of engineering products catering to user industries like diesel and electric locomotives, data farms, consumer durables, renewable energy

Published on February 11, 2020

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