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Pitti Engineering Limited

Financial Results – Q3FY20 Net Revenue stood at Rs 117.92 crore EBITDA at Rs 17.89 crore; PAT at Rs 4.06 crore Hyderabad, Feb 11, 2020: Pitti Engineering Ltd., leading Engineering Company, has declared its financial results for the Quarter ended December 31, 2019.

Total Revenue from Operations was at Rs 117.92 crore, EBITDA was at Rs 17.89 crore and Profit after Tax was at Rs 4.06 crore in Q3 FY 20 Total Revenue from Operations was at Rs 412.12 crore, EBITDA was at Rs 59.94 crore and Profit after Tax was at Rs 15.56 crore in 9M FY 20 Operational Highlights • Greenfield plant at Aurangabad (Maharashtra) was set up in 2018 has invested Rs 129 crore till 31/12/2019. Also, Hyderabad Plant 4 was set up with an investment of Rs 38 crore in the same year. These investments had taken up overall installed capacity of the company to 36,000 MT for sheet metal components and 247,600 hours for machining. FY20 is the second full year of operations for both these plants.

• During the quarter, the Board has approved the expansion plan to enhance its installed capacity from the existing 36,000 MT to 46,000 MT for sheet metal components and from 247,600 hours to 405,600 hours for machining which will be completed in a span of 36 months.

• This Aurangabad facility, which deploys the latest manufacturing techniques and robotics is fully capable of integrating all the processes under one roof.

• The residual long-term order book with the company as on Dec 2019 stands at Rs 600 crore comprises of engineering products catering to user industries like Diesel and electric locomotives, data farms, consumer durables, renewable energy.

• The other prestigious products include Power Systems for Data Firms (from Cummins Generators), Propulsion Systems for Electric Vehicles, Various Sub-assemblies for Intercity Passenger and Freight movement Components for Mass Urban Transit Systems (from Siemens and Alstom), and Renewable Energy (from ABB).

Commenting on the Results, Mr. Akshay S Pitti, Vice Chairman and Managing Director, said that, “We have seen some fall in our revenues this year mainly on account of falling steel prices, consumption of pipeline stocks and deferral in stock replenishment by certain customers, reducing the off-take during the period under review. However, due to better product mix, the profitability has shown improvement. We are hopeful that the recovery in infrastructure and capital goods sector will be seen soon.” He further added “the new capex approved by the Board is mainly for enhancing machining capacity as we are not able to take up any further machining orders due to capacity constraints and for bringing in house, the manufacturing of the existing bought out items used in high end assemblies which have reached critical mass, this will help Company to overcome supply chain challenges while generating additional cost advantage.” He also added, “FY21 is where we see good growth rates from the sector and also for our company on account of increased order flow, seamless execution of orders with modernised manufacturing facilities and moving up in the value chain by adding more and more value through high margin products.” About the Company: Pitti Engineering Limited (Formerly Pitti Laminations Limited), leading Engineering company in the country with three decades of excellence in manufacturing of Sheet Metal Components including Motor Cores, Sub-Assemblies, Die-Cast Rotors and Machining of Metal Components & also the largest exporter of Electrical Laminations from India. The company has evolved into a complete engineering solution provider to its customers assisting in optimizing their supply chain by integrating various horizontal processes.

The company supplies a range of Engineering products to vastly diversified segments like Hydro & Thermal Generation, Windmill, Mining, Cement, Steel, Sugar, Construction, Lift Irrigation, Freight Rail, Passenger Rail, Mass Urban Transport, Appliances, Medical Equipment, Oil & Gas and various several other industrial applications. Broadly speaking, the Company’s products find a suitable application in almost every equipment that rotates or generates electricity.

Company has state of the art manufacturing facilities in Hyderabad and Aurangabad. Lately, the company has successfully commissioned mega project at Aurangabad in Maharashtra and one new unit in Hyderabad deploying advanced manufacturing techniques and automation in both the facilities.