Pitti Engineering, a leading manufacturer of electrical steel laminations, fabricated parts and shafts, reported an eight per cent increase in December quarter net profit at Rs 13 crore, against Rs 12 crore logged in the same period last year, on better margins and higher sales volume
Income increased 24 per cent to Rs 297 crore (Rs 239 crore) in the quarter under review.
The sales volume was up 16 per cent at 10,572 tonnes (9,150 tonnes). EBITDA was up 14 per cent at ₹44 crore against ₹39 crore in Q3 FY23.
The company had an order book of Rs 898 crore as of December-end.
Pitti Engineering expects construction work at its Aurangabad project to be completed by March.
The installation and commissioning of equipment will take the lamination capacity to 72,000 tonnes by the end of Q2 FY25.
Of the approved capital expenditure, the company has spent Rs 63 crore during the nine months of FY2024. It expects to further incur Rs 40 crore by the end of the financial year. The remaining capex would be spent in H1 FY’25.
Akshay Pitti, Vice-Chairman & Managing Director, said the company had reported the highest sales volumes to achieve an annual sales target of 42,000 tonnes in FY24.
Given the strong product development pipeline from existing customers and proposed acquisition of new customers in sectors such as generators, automotive and railways, the company has set a sales target of 50,000 tonnes in the sheet metal business in the next fiscal, he said.
“The merger of the foundry will add impetus to our machined components business, thereby, improving our margin profile,” he added.