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Pitti Engineering Limited Financial Results - Q4FY20 & FY20

Net Revenue stood at ₹ 112.95 crore in Q4FY20 EBITDA was at ₹ 17.77 crore; PAT at ₹ 1.53 crore Hyderabad, June 27, 2020: Pitti Engineering Ltd., leading Engineering Company, has declared its financial results for the Quarter ended March 31, 2020.

Q4 FY 20 Financial Highlights • Total Revenue from Operations was at ₹ 112.95 crore • EBITDA was at ₹ 17.77 crore • Profit after Tax was at ₹ 1.53 crore FY 20 Financial Highlights • Total Revenue from Operations was at ₹ 525.06 crore • EBITDA was at ₹ 77.72 crore • Profit after Tax was at ₹ 17.10 crore Operational Highlights • The company has decided to continue with its capex plans of enhancing capacities at its Aurangabad and Hyderabad plants after reviewing the global pandemic COVID-19 situation on the company’s operations. The Board 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 2,47,600 hours to 4,05,600 hours for machining.

• Enhanced the total capex plan to ₹ 270 crore which will be invested at both Hyderabad and Aurangabad facilities considering the new opportunities in fabrication and shaft making segments and to meet the expected demand during the next three years.

• The enhancement in capacities will help the company in increasing its capabilities and market reach of its products. Moreover, the company will also start in-house manufacturing of bought out components and optimize its supply chain. It would also result in increased level of automation at our plants there by reducing dependence on labour, which would in turn results in more operating margins.

• The residual long-term order book with the company as on March 2020 stands at ₹ 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 Pitti, Vice Chairman and Managing Director, said that, “We have witnessed marginal de-growth during the current year, due to our in ability to deliver finished goods to our customers on account of lockdown imposed in the second half of the March.

Our operations are marginally impacted by covid-19 outbreak and lockdown. Our orders are intact as majority of them are long term in nature.

We were able to maintain our EBIDTA and PAT margins in spite of revenue lost due to lockdown in the crucial month of the year.

We have started deliveries for our customers. We are seeing the green shoots and we are in the processing of winning more orders during the current year. We are very hopeful that the capex recovery on the anvil. Worldwide capital goods players were operating on just in time inventories for the last couple of years. The suppliers are exhausted and tremendous order flow is expected to just meet the current demand in capital goods sectors especially in high value-added products, wherein we have a presence.” He further added that, “Company’s well-crafted strategy to cater to multiple sub-sectors in the same segment based on its more than two decades of experience really paid off. This has insulated company from many cyclical demand curves in the capital goods sector.” PWR PWR