NewsEarningsPitti Engineering Reports Record Quarterly Revenue of INR 499 Crores with 17.5% EBITDA GrowthPitti Engineering Reports Record Quarterly Revenue of INR 499 Crores with 17.5% EBITDA Growth
Pitti Engineering Limited announced robust Q2 financial results, with revenue reaching INR 499.00 crores, up 10% year-on-year. EBITDA grew by 17.5% to INR 78.00 crores, maintaining a stable margin of 16.3%. The company saw significant volume growth across product categories, particularly in high value-added assemblies and integrated assemblies. Pitti Engineering expects capacity utilization to reach 80% by FY27 and targets lamination sales of 90,000-94,000 tons over the next three years. The company is optimistic about growth in sectors like traction motors, railways, data centers, and renewable energy.
*this image is generated using AI for illustrative purposes only.
Pitti Engineering Limited has announced its financial results for the second quarter, showcasing robust growth and operational performance.
Key Financial Highlights
- Revenue: Achieved highest quarterly revenue of INR 499.00 crores, marking a 10% year-on-year growth.
- EBITDA: Grew by 17.5% year-on-year to INR 78.00 crores.
- EBITDA Margin: Remained stable at 16.3%, reflecting strong operating leverage.
Operational Performance
The company reported significant volume growth across various product categories:
| Product Category | Volume (Tons) | Y-o-Y Growth |
|---|---|---|
| Total Lamination | 17,722 | 5.5% |
| High Value-Added Assemblies | 3,168 | 16.5% |
| Stator Frame and Shaft Integrated Assemblies | 1,146 | 33.4% |
Future Outlook
Pitti Engineering expects capacity utilization to reach 80% by the end of FY27. The company targets lamination sales of 90,000-94,000 tons over the next three years. Strong demand is anticipated in traction motors, railways, data centers, and renewable energy sectors.
Management Commentary
Akshay Pitti, Managing Director and CEO, stated, "We are pleased to report another strong quarter of performance. Our deeper customer engagement has enabled us to enhance our wallet share in key areas. The surge in global data center requirements has significantly boosted the need for power generation solutions, presenting a major growth opportunity for our business."
Market Diversification
The company is actively engaging with customers both in India and overseas to realign capacities and capabilities with anticipated rising demand. Pitti Engineering remains optimistic about domestic growth prospects across traction motor, power generation, and wind power segments.
Challenges and Strategies
- The company is addressing raw material supply challenges by diversifying its sourcing strategy, including imports from Korea and Japan.
- Pitti Engineering plans to maintain about 25% of its total requirements from imports until the situation in Indian steel manufacturing stabilizes.
Conclusion
Pitti Engineering's strong quarterly performance, coupled with its strategic initiatives and positive outlook in key sectors, positions the company for sustained growth. The management's focus on capacity expansion and market diversification is expected to drive future performance, despite challenges in the raw material supply chain.
Investors and stakeholders will be keenly watching the company's progress in achieving its targeted growth and navigating the evolving market dynamics in the engineering and manufacturing sector.
Historical Stock Returns for Pitti Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.06% | -0.53% | +1.54% | -16.44% | -38.08% | +1,357.16% |
20
