Pitti Engineering has reported that its net profit in March quarter was down marginally at ₹20 crore against ₹21 crore logged in same period last year, largely due to higher cost of operation.

Revenue in the quarter under review increased 59 per cent to ₹271 crore (₹170 crore).

Ebitda margin fell to 13 per cent (16 per cent).

The company has recommended a final dividend of 85 paisa per share.

The Board in its meeting on Tuesday approved investment of ₹197 crore to enhance the sheet metal capacity to 72,000 tonnes and machine hours to 6,48,000.

Net profit in the financial year ended March jumped 80 per cent to ₹52 crore (₹29 crore) on a revenue of ₹954 crore (₹518 crore).

Akshay S Pitti, Managing Director and interim CFO said the company has added 40,400 machine hours and 6,400 tonne to sheet metal capacity in the financial year. This represents a growth of 11.14 per cent in machine shop and 16.16 per cent in sheet metal capacity, he added.

In Q4, the company has developed various machine components for off-highway application and locomotive application and other machined parts for locomotive with an annual revenue potential of ₹95 crore. These developments will start contributing meaningful revenue from second half of FY23, he said.

Despite the headwinds induced by geopolitical situation, supply chain disruptions and inflationary commodity pressures the order book and forecast continues to remain buoyant at ₹ 1,078 crore as of April 1, said the company in a statement.

Shares of the company was down marginally at ₹274 at 12.15 pm on Tuesday.

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