Pennar Q1 net up 52.7%

Pennar Industries, a manufacturer of steel strips and engineering products, reported a 52.7 per cent increase in net profit to Rs 16.46 crore for the quarter ended June 30, 2010, as against Rs 10.78 crore in the corresponding quarter last year. Revenues during the quarter stood at Rs 259.21crore, up 43.1 per cent as compared with Rs 181.20 crore.

The company will invest about Rs 50 crore in capacity expansion at its Chennai plant. It was expecting growth in business from the pollution control segment and anticipated release of new designs for railway wagons. This would add to its top line and bottomline, chairman Nrupender Rao said. Pennar was also leveraging its engineering strengths to penetrate into the precision engineering segment in defence, aerospace and nuclear power.

PEBS, a subsidiary of the company, had commenced production of pre-engineered buildings in January this year, and recorded sales of Rs 36.09 crore. Its total orders so far are in excess of Rs 150 crore, Rao said.