Pennar net up 43%

Pennar Industries Limited, a manufacturer of steel strips and engineering products, reported a 43 per cent increase in net profit to Rs 13.6 crore for the quarter ended December 31, 2009, as compared with Rs 9.51 crore during the corresponding period last year.

Revenues for the quarter stood at Rs 195.48 crore, up 29.54 per cent from Rs 150.9 crore during the same period last year.

“Engineering, infra and heavy engineering segments contributed 70 per cent to the revenues,” said company chairman Nrupender Rao.

The company recently commissioned its subsidiary Pennar Engineered Building Systems at an investment of Rs 50 crore to design, manufacture, supply and erect pre-engineered steel buildings and components. The company would contribute about Rs 150 crore in a year to the revenues, he said, adding the capacity would be doubled next year from 30,000 tonne per annum now. It has orders worth Rs 50 crore including from Tanzania.

 

Rao said the company was targeting a turnover of Rs 1,000 crore by March 2011. In the nine months this fiscal, the turnover stood at Rs 600.8 crore.

Pennar was also scouting for partners for inorganic growth.

Stating that the company had bagged a Rs 50-crore order from the Railways for making stainless steel components for its coaches, he said they were spending about Rs 30 crore for expansion in Andhra Pradesh and increasing the capacity of the Chennai plant in Tamil Nadu by 15,000 tonne (30,000 tonne now).