Pitti Engineering Limited declared its financial results for the Quarter and Nine months ended December 31, 2022

Hyderabad, February 14, 2023: Pitti Engineering Limited, leading Engineering Company, has declared its financial results for the Quarter and Nine months ended December 31, 2022.
 
Q3FY23 - Financial Highlights
 
 
•       Revenue from operations was at ₹ 239.08 crore as compared to ₹ 265.46 crore in Q3FY22
•       EBITDA increased by 13.24%, from ₹ 34.28 crore in Q3FY22 to ₹ 38.82 crore in Q3FY23
•       Net Profit was at ₹ 12.13 crore as compared to ₹ 11.60 crore in Q3FY22; increased by 4.57%
 
 
9MonthsFY23 - Financial Highlights
 
 
•       Revenue from Operations has registered a growth of 24.99 %, to ₹ 854.67 crore, as compared to ₹ 683.81crore in 9 Months FY22
•       EBITDA was at ₹ 110.83 crore as compared to ₹ 97.28 crore in 9MonthsFY22; increased by 13.93 %
•       Net Profit grown by 5.85% to ₹ 33.99 crore as compared to ₹ 32.11 crore in 9MonthsFY22
 
Operational Highlights
 
o   Revenue de-growth in absolute terms during the quarter is on account of softening of raw material costs, while we have growth in sales volumes on YoY basis to 9,150 MT as compared to 8,542 MT in Q3FY22
 
o   Capacity utilization is at 70.39% during the nine-month ending December’22
 
o   EBIDTA per MT stands at ₹ 42,428/- for the quarter
 
o   During end of the quarter, we have received healthy orders that continue to boost our order book
 
o   We have developed laminations for a variety of electric mobility platforms. For our large hydro customers, laminations of 1200 MW & 1440 MW Pump Storage Machine applications were also developed. These machines have a dual purpose of power generation and water pumping. Further, we received a new LOI for manufacturing parts used in Electric Vehicles.
 
o   The Company also bagged a prestigious order for making shafts used for various applications in freight locomotives.
 
o   On account of softening raw material prices and easing supply chain bottlenecks, we have been able to bring down our working capital by maintaining optimal raw material and finished goods stocks. Our continued efforts have allowed the Company to reduce working capital outlay by ₹ 85.87 crore on QoQ basis.
 
o   Construction of new sheds and other expansion related work is on track and we will meet our earlier announced deadline of completing the capex by end of Q2FY24
 
o   Board of Directors have recommended 30% interim dividend of face value of ₹ 5 per share, amounting to ₹ 1.50/- per share.
 
 
Commenting on the results, Akshay S Pitti, Vice-Chairman & Managing Director said, “Despite geopolitical uncertainties and rising inflation trajectory across geographies, the Indian economy continues to remain one of the fastest growing economies of the world. The increased capital investment allocation by 33.40% to INR 10 lakh crore in the Union Budget 2023 is expected to add further impetus for business growth. The highest ever capital outlay of Rs 2.4 lakh crore for the Indian Railways will benefit our business both directly and indirectly.

Our financial and operational performances during the quarter are largely in line with expectations, with a healthy order book, our balance sheet and cash flow continue to be strong. We are following judicious cost control measures across the organisation and are focusing on deleveraging our balance sheet further. This will help us build a robust liquidity buffer and our expansion plans over the medium and long terms can be funded largely through internal accruals. 

Going forward, we see equally good demand from both Railways and the non-Railways business. Our focus on our new components business will continue, which will see sizable growth from the next financial year.”