Companies

Pitti Engineering to invest ₹190 crore to hike capacity

V Rishi Kumar Hyderabad | Updated on February 11, 2020 Published on February 11, 2020

The Pitti Engineering Ltd board has approved an expansion plan to enhance its installed capacity for sheet metal components from 36,000 million tonnes to 46,000 mt. It will also expand its machining capacity from 2,42,600 hours to 4,05,600 hours.

The estimated cost of these plans is ₹190 crore, to be funded by internal accruals and long-term borrowings or by external commercial borrowings, the company informed the BSE.

The expansion will be taken up in phases at its Aurangabad and Hyderabad plants and completed within 36 months, it said.

The company is currently operating at around 70 per cent capacity. The enhancement in capacity will help it increase its capabilities and market reach and enhance in-house manufacturing of bought-out components. This, in turn, will help optimise the supply chain and increase the operating margins of the company, it said.

Q3 profit declines

Pitti has posted a profit of ₹4.05 crore for the third quarter ended December 31, 2019, against ₹5.08 crore in the previous-year period.

Its total income also declined, to ₹120.44 crore (₹165.68 crore).

For FY19, the company posted a profit of ₹23.71 crore and total income of ₹624.48 crore.

Published on February 11, 2020
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