Pennar Industries Reports 22% Revenue Growth in Q2, Backed by Strong Order Book
Pennar Industries achieved significant growth in Q2, with total sales reaching ₹919.60 crores, a 22.04% year-over-year increase. EBITDA rose by 16.32% to ₹94.43 crores, and Profit After Tax grew by 20.13% to ₹32.28 crores. The company's two main segments, Diversified Engineering and Custom Designed Building Solutions, contributed equally to revenue. Pennar maintains a robust order book, with PEB India at ₹860 crores and PEB U.S. at $51.2 million. The company operates 14 ISO-certified manufacturing facilities in India, with additional facilities in the USA.
*this image is generated using AI for illustrative purposes only.
Pennar Industries has reported a strong financial performance for the second quarter, with significant growth across key metrics. The company's diversified portfolio and strategic focus on high-value engineering solutions have contributed to its impressive results.
Financial Highlights
Pennar Industries showcased remarkable growth in Q2, with total sales reaching ₹919.60 crores, marking a 22.04% year-over-year increase. The company's EBITDA rose by 16.32% to ₹94.43 crores, while maintaining a healthy EBITDA margin of 10.42%. Profit After Tax (PAT) grew by 20.13% to ₹32.28 crores, demonstrating the company's ability to translate top-line growth into bottom-line results.
Here's a snapshot of the key financial metrics for Q2:
| Metric | Q2 (₹ Crores) | YoY Growth (%) |
|---|---|---|
| Total Sales | 919.60 | 22.04 |
| EBITDA | 94.43 | 16.32 |
| PAT | 32.28 | 20.13 |
| Cash PAT | 51.66 | 16.59 |
Segment Performance
Pennar Industries operates through two main verticals, both of which contributed significantly to the quarter's performance:
- Diversified Engineering: This segment generated revenue of ₹468.26 crores in Q2.
- Custom Designed Building Solutions: This vertical contributed ₹465.72 crores to the quarter's revenue.
The balanced revenue mix between these segments (50.1% and 49.9% respectively) underscores the company's well-diversified business model.
Strong Order Book
Pennar Industries maintains a robust order book, indicating strong future revenue potential:
- PEB India: ₹860 crores
- PEB U.S.: $51.2 million
This healthy order book, particularly in the Pre-Engineered Buildings (PEB) segment, both in India and the U.S., suggests continued growth momentum for the company.
Operational Highlights
The company's operational strengths are evident in its extensive manufacturing capabilities:
- 14 ISO 9001:2008 certified manufacturing facilities in India
- Overseas manufacturing facility in Portland, USA
- Warehouse in Chicago, USA
- Engineering centers in Hyderabad and Vishakapatnam
These facilities are equipped with advanced technologies including laser cutting, plasma cutting, robotic welding, and CNC machines, enabling Pennar to produce high-quality, precision-engineered products.
Outlook
Pennar Industries' strong Q2 performance, coupled with its diverse product portfolio serving over 1,000 customers across automotive, railways, infrastructure, and industrial sectors, positions the company well for sustained growth. The expansion of its PEB business in North India with the commissioning of the Raebareli plant, and its growing international presence, particularly in the U.S. market, are likely to be key drivers of future growth.
As Pennar continues its transformation from a steel company to an engineering powerhouse with a global footprint, the company is poised to leverage its strong order book and operational efficiencies to drive further value creation.
Note: All financial figures are based on the unaudited consolidated results for Q2.
Historical Stock Returns for Pennar Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -14.82% | -13.23% | -2.76% | +24.27% | +22.11% | +1,342.02% |
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