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| Pennar net flat, announces buy back of shares |
| BS Reporter / Chennai/ Hyderabad Apr 29, 2009, 00:04 IST |
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Hyderabad-based Pennar Industries Limited, engaged in the production of cold-rolled steel strips, metal profiles and engineering components, registered a net profit of Rs 10.18 crore for the quarter ended March 31, 2009, same as last year's corresponding quarter. Revenues for the quarter declined 4.08 per cent to Rs 154.46 crore from Rs 161.04 crore last year.
Speaking to the media, group chairman Nrupender Rao said the company did not incur losses as it realigned its product offerings in view of the slowdown and reduced its dependence on one segment.
For instance, though revenues from the automobile sector declined to 14 per cent this year as compared with 33 per cent last year, contributions from railways, roads and buildings increased significantly, he said.
For the full year, the company registered a 27.88 per cent increase in net profit to Rs 39.39 crore as compared with Rs 30.8 crore last year.
Revenues were up 16.65 per cent to Rs 653.51 crore from Rs 560.21 crore during the period under review.
Rao said the company was bullish on road safety, railway coach and wagon, precision engineering, building and pollution control segments. It was expecting orders from the Railways for stainless steel coaches.
Pennar announced a buyback of shares from the existing shareholders through the stock exchange route to increase the earnings per share. It fixed the upper limit of the share price at Rs 40 (face value of Rs 5).
The company would buy between 1 million shares and 6.5 million shares from May 14, 2009, to April 26, 2010, for an amount not exceeding Rs 12.5 crore.
“The Rs 57 crore gross profit that the company made during the year resulted in favourable liquidity position,” he said. The promoters, who hold 36 per cent stake, would not participate in the buy back offer.
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