Pennar declares Interim Dividend of 10%

The Board of Directors of Pennar Industries has declared an Interim Dividend of 10% for the financial year 2009-10 after considering the strong financial performance of the company during the nine-month period ended 31st December, 2009.

Pennar, achieved sales of Rs. 601.5 Crore and gross profit (EBIDTA) of Rs. 77.9 Crore, Profit Before Tax (PBT) of Rs. 61.5 Crore and Net Profit of Rs.36.8 Crore during the nine month period ending 31st December 2010.  For the quarter ended December 31, 2009, Pennar achieved its highest quarterly sales of Rs. 210.6 Crore with gross profit (EBIDTA) of 14.1% amounting to Rs. 27.5 Crore, Profit Before Tax (PBT) of Rs. 22.3 Crore and Net Profit of Rs.13.6 Crore. The annualized cash EPS for the quarter is Rs. 6.1 and the annualized basic EPS for the quarter is Rs. 4.4 per equity share of Rs. 5/- Face value.

The company’s subsidiary, Pennar Engineered Building Systems has completed the construction and commissioned its new manufacturing facility at Sadashivpet, Hyderabad. The order book of this subsidiary stands at Rs 54 crore.

The company has commenced the work on expanding its facilities at Chennai and Isnapur plants for catering to the growing demands of Railways, Automobiles and Engineering sectors. The Automated Rotary Compressor Shell manufacturing facility has been commissioned at its Isnapur Plant. The new type of shells will be manufactured in India for the first time.

About Pennar Industries
Pennar has demonstrated continuous growth by registering a growth in profits on a Quarter-on-quarter basis for the last twenty-two consecutive quarters.

At the core of the strong financial performance of the company is its strategy to diversify its product range by adding value added products like Rail Wagon / coach profiles, engineering components and road safety systems.  The company is focusing on specialty profiles, sub-assemblies and fabricated components for transportation and infrastructure sectors. Pennar has recently set up a facility in Chennai to cater to Railways and automotive sectors.

Pennar has launched a new subsidiary, Pennar Engineered Building Systems Limited (PEBSL). The 30,000 ton per annum capacity project, has been set up on a 28-acre site at Sadashivpet in Medak district, near Hyderabad.  PEBSL is engaged in the design, manufacture and erection of pre-engineered steel buildings and building components catering to the requirements of industries, warehouses, commercial centres, multi-storied buildings, aircraft hangars and sports complexes.

Pennar and its subsidiary, PEBSL have six plants located at Patancheru, Sadishivpet and Isnapur near Hyderabad, Chennai, Tarapur (Maharashtra) and Hosur (Tamil Nadu) with a total capacity of 230,000 TPA.