Pitti Engineering , India's leading manufacturer of electrical steel laminations and machined components, has reported robust financial results for the first quarter and announced a significant capacity expansion plan.

Q1 Financial Highlights

The company's consolidated performance for Q1 showed notable growth:

• Revenue from operations increased by 17% year-on-year to ₹456.56 crore
• EBITDA grew by 30% to ₹75.40 crore
• Net profit rose by 17% to ₹22.90 crore
• EBITDA margin improved to 16.5% from 14.8% in the previous year's Q1

Operational Performance

Pitti Engineering demonstrated strong operational metrics:

• Sheet metal capacity utilization stood at 70%
• Machining hours capacity utilization reached 82%
• Casting capacity utilization improved to 69%

The company reported growth across various product segments:

• Stator frames – core drop registered a 28.0% growth
• Shafts – machined components increased by 19.8%
• Stator frame or rotor shaft integrated assemblies – laminations grew by 15.8%

Capacity Expansion Plan

In response to increasing business demand and growth opportunities, Pitti Engineering's Board of Directors has approved a ₹150 crore capex plan for enhancing manufacturing capacities. The expansion will be implemented across the company and its wholly-owned subsidiaries, Pitti Industries Private Limited and Dakshin Foundry Private Limited.

Key aspects of the capacity expansion include:

The expansion will be funded through a mix of internal accruals and debt, and is expected to be completed in a phased manner over 18 months.

Management Commentary

Akshay S Pitti, Managing Director & CEO, commented on the results: "We delivered a strong start with revenue growing 17% year-on-year to ₹457 crore for Q1, EBITDA increasing by 30% to ₹75 crore, and PAT rising 17% to ₹23 crore. Demand from end-user industries remains strong, supported by healthy order enquiries and bookings."

He further added, "Our backward integration capabilities and diversified product portfolio, which caters to multiple industries, position us well to tap into the expanding domestic market. On the international front, our exports business continues to grow steadily, contributing 31% to revenues in Q1."

Future Outlook

Pitti Engineering's performance and expansion plans indicate a positive outlook for the company. With its integrated manufacturing approach, focus on value addition, and strategic capacity enhancements, the company appears well-positioned to capitalize on the growing demand for laminations and machined components in both domestic and international markets.

The company's ability to secure technical approvals and supply sample products for new lines, along with its success in obtaining a second platform for alternators in data centers, further underscores its potential for sustained growth in the coming quarters.

Pitti Engineering , a prominent player in the engineering sector, has announced a strategic shift in its product focus, aiming to enhance profitability through an optimized product portfolio. The company is placing greater emphasis on machine and casting lamination assemblies, a move discussed during a recent conference call with investors.

Strategic Pivot Towards Profitability

Pitti Engineering is recalibrating its product mix, with a particular focus on machine and casting lamination assemblies. This strategic decision is expected to drive the company towards a more profitable future by concentrating on high-margin products within its existing portfolio.

Conference Call Insights

During a conference call held on April 23, 2025, to discuss the audited financial results for the quarter and year ended March 31, 2025, the company's management elaborated on this strategic pivot. The audio recording of this call has been made available on the company's website, demonstrating transparency in communication with stakeholders.

Financial Performance and Compliance

While specific financial figures were not disclosed in the available data, the company has completed its annual financial reporting cycle. Pitti Engineering has submitted its audited financial results for the quarter and fiscal year ending March 31, 2025, to the stock exchanges, adhering to regulatory requirements.

Corporate Governance and Compliance

In line with its commitment to good corporate governance, Pitti Engineering has also filed its Annual Secretarial Compliance Report for the year ended March 31, 2025. This report, issued by a practicing Company Secretary, confirms the company's compliance with various Securities and Exchange Board of India (SEBI) regulations and circulars.

Key highlights from the compliance report include:

• Adherence to applicable Secretarial Standards issued by the Institute of Company Secretaries of India
• Timely adoption and updating of policies as per SEBI regulations
• Maintenance of a functional website with timely dissemination of information
• Proper conduct of board performance evaluations
• Compliance with related party transaction regulations
• Adherence to insider trading prevention norms

Investor Relations and Transparency

Pitti Engineering continues to maintain open lines of communication with its investors. The company has published its financial results in prominent newspapers, including Business Line and Nava Telangana, on April 23, 2025, ensuring wide dissemination of its financial performance.

Conclusion

As Pitti Engineering implements its new strategy focusing on a more profitable product mix, investors and market watchers will be keen to observe the impact on the company's financial performance in the coming quarters. The shift towards machine and casting lamination assemblies could potentially lead to improved margins and overall profitability, subject to market conditions and successful execution of the strategy.