Pennar Inds Q1 net slips 42%

Company's basic EPS (earnings per share) stands at Rs 0.51, as against Rs 0.90

Pennar Industries Limited, a Hyderabad-based company engaged in the production and marketing of specialised and engineered steel solutions, has reported a net profit of Rs 6.3 crore for the first quarter ended June 2013, as against Rs 10.9 crore during the same period a year ago, reflecting a decline of 42.2%.

Its net revenues dipped 11.17% to Rs 253.6 crore during the quarter, as compared with Rs 285.5 crore in the corresponding quarter last year. Basic EPS (earnings per share) stood at Rs 0.51, as against Rs 0.90.

“There is a perceptible slowdown in customer off-take from white goods, railways and automobile sectors, which contribute more than 60% to our top line. During the first quarter, we generated 10% of our revenue from new customers and products. And, this is likely to go up in the coming quarters. This definitely helps mitigate the lowering of demand seen in our conventional business,” Suhas Baxi, president and chief executive of Pennar, said in a release today.