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| Pennar FY10 net profit up 31% at Rs 50 cr |
| Press Trust of India / Mumbai May 28, 2010, 22:09 IST |
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Backed by strong sales growth, steel components manufacturer Pennar Industries clocked a 31.45 per cent jump in its standalone net profit at Rs 50.07 crore for the fiscal ended March 2010.
The firm had earned a standalone net profit of Rs 38.08 crore in the year-ago period.
During the year, sales of the firm improved by 22.14 per cent to Rs 797.96 crore compared to Rs 653.27 crore in the year ago period, despite a fall in the steel prices, Pennar Group of Companies' Chairman Nrupender Rao said.
"Despite a 20 per cent fall in the steel prices, we managed to increase our sales and profits as we focused on upping the production of components for railways, buildings and pollution control equipments," Rao said.
The company's production rose by nearly 45 per cent in FY10.
"Pennar along with its subsidiary Pennar Engineered Building Systems aims to achieve a annual sales turnover of over Rs 1,200 crore in FY11 and Rs 2,000 crore over the next five years," Rao said.
Detailing on the performance, he said that due to the global recession, the automobile industry suffered a set back last year, which prompted it to increase production in other sectors, thus, helping it to grow sales by 22.14 per cent.
The company has recorded a cash profit of Rs 75.54 crore in FY10 compared to Rs 55.53 crore in the previous fiscal.
Moving ahead, the firm sees a great potential for pre-engineered building systems given the expected growth in the warehousing market.
India's warehousing market is expected to grow from Rs 10,000 crore in 2008 to Rs 27,500 crore in 2012, he further said.
The warehousing market is expected to witness an investment of Rs 2,500 crore over the next few years, PEBS's Director Aditya Rao said.
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