PTC Industries Limited has reported a robust financial performance for the first quarter, alongside announcing a strategic partnership to bolster its aerospace manufacturing capabilities.

Strong Financial Performance

PTC Industries delivered impressive Q1 results, with total income soaring 113% year-over-year to ₹107.70 crores, up from ₹50.50 crores in the same period last year. The company's EBITDA saw a significant increase of 41%, reaching ₹19.40 crores. However, EBITDA margins compressed to 18.00% from 27.10% in the previous year.

Profit after tax (PAT) grew by 5% to ₹5.20 crores, although PAT margins declined to 4.80% from 9.70% year-over-year. This indicates that while the company has significantly expanded its revenue, it faced some pressure on profitability.

Subsidiary Performance

The company's subsidiary, Aerolloy Technologies, demonstrated exceptional growth with a 161% increase in revenue and impressive EBITDA margins of 61.60%. However, the UK subsidiary, Trac Precision Solutions, reported an EBITDA loss of GBP 4.55 million, attributed to supply chain constraints.

Strategic Partnership

In a significant development, PTC Industries has signed a Memorandum of Understanding (MoU) with Kineco Aerospace & Defence. This strategic collaboration aims to jointly develop and manufacture value-added aerospace components and structural assemblies.

The partnership brings together PTC's expertise in high-integrity castings and exotic materials like titanium and superalloys with Kineco's proven capabilities in lightweight composite structures for aerospace and defence applications.

Key aspects of the collaboration include:

• Co-development of hybrid aero structures combining composites and metallics
• Localization of critical aerospace components, including flight-critical parts
• Joint participation in global RFQs, especially for civil and defence programs
• Advanced R&D and technology transfer in collaboration with DRDO and other stakeholders

Management Commentary

Sachin Agarwal, Chairman and Managing Director of PTC Industries, commented on the partnership: "Together, PTC and Kineco will be able to offer integrated solutions across metallics and composites addressing critical needs of Indian and global OEMs. Both companies share a common vision: building an Atmanirbhar Bharat through high-precision engineering."

Other Notable Developments

• PTC Industries signed a memorandum of understanding with Safran Aircraft Engines for manufacturing military aircraft engine components.
• The company participated in the Paris Air Show.
• PTC achieved multiple quality certifications, including ISO 14001:2015 and ISO 45001:2018.

Outlook

Despite the challenges faced by its UK subsidiary, PTC Industries remains optimistic about its future performance. Chairman Sachin Agarwal stated that the company is on track to achieve its budgeted revenue and EBITDA targets for the year.

The strategic partnership with Kineco Aerospace & Defence is expected to play a vital role in supporting India's growing ambitions in civil aviation, air defence, and space sectors. This collaboration aims to accelerate indigenization and create value-added jobs and intellectual property within India's aerospace ecosystem.

As PTC Industries continues to expand its capabilities and forge strategic partnerships, it appears well-positioned to capitalize on the growing opportunities in the aerospace and defence sectors, both domestically and globally.

PTC Industries Limited , a leading manufacturer of high-precision metal components for critical applications, has reported a robust financial performance for the first quarter. The company's consolidated results showcase significant growth across key financial metrics, driven by strong performance in its aerospace and defense segment.

Financial Highlights

PTC Industries witnessed a remarkable 113.2% year-on-year increase in total income, reaching Rs 1,077.10 crore, up from Rs 505.20 crore in the same quarter last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 41.3% to Rs 193.50 crore, although the EBITDA margin decreased to 18.0% from 27.1% in the previous year.

Profit After Tax (PAT) saw a modest increase of 5.3%, rising to Rs 51.60 crore from Rs 49.00 crore. The PAT margin, however, declined to 4.8% from 9.7% year-on-year.

Aerolloy Technologies: A Key Growth Driver

Aerolloy Technologies Limited (ATL), a wholly-owned subsidiary of PTC Industries, emerged as a significant contributor to the company's growth. ATL reported an impressive 161% increase in revenue, rising from Rs 5.01 crore to Rs 13.11 crore. The subsidiary's EBITDA surged by 186%, reaching Rs 8.07 crore compared to Rs 2.82 crore in the previous year.

Strategic Developments

During the quarter, PTC Industries made notable strides in strengthening its position in the aerospace and defense sector:

1. MoU with Safran Aircraft Engines: Aerolloy Technologies signed a Memorandum of Understanding with Safran Aircraft Engines to manufacture components and materials for military aircraft engines. This partnership aligns with India's "Make in India" initiative and aims to develop a robust domestic defense aerospace ecosystem.

2. Paris Air Show Participation: PTC Industries and Aerolloy Technologies showcased their advanced manufacturing capabilities at the Paris Air Show, engaging in high-level meetings and discussions that are expected to lead to new alliances and agreements.

3. Quality Certifications: The company achieved ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health & Safety) certifications, while also renewing its ISO 9001:2015 (Quality Management) certification.

4. Industry Recognition: Hindustan Aeronautics Limited honored PTC Industries as a Significant Contributor for critical aerospace components in titanium and superalloys.

5. Nadcap Accreditation: Aerolloy Technologies received Nadcap accreditation for Chemical Processing, adding to its portfolio of special process approvals.

Management Commentary

Sachin Agarwal, Chairman & Managing Director of PTC Industries, commented on the performance: "This quarter has been a strong start for the Company, with robust growth in both revenue and profitability, supported by the robust performance of Aerolloy Technologies. We remain on track to achieve our budgeted revenue and EBITDA margin targets for the year, with a solid foundation for sustained growth."

Agarwal also highlighted the company's participation in the Paris Air Show and the multiple advanced discussions that took place, which are expected to translate into new alliances and agreements in the near future.

Future Outlook

With major capacity expansions progressing on schedule, PTC Industries is positioning itself for continued growth in revenues and profits over the coming years. The company's focus on the aerospace and defense sectors, coupled with its strategic partnerships and technological advancements, sets a positive tone for its future performance in the high-precision metal components industry.

As PTC Industries continues to strengthen its capabilities and expand its presence in critical and strategic materials production, it remains well-positioned to capitalize on opportunities in the evolving aerospace and defense markets, both domestically and internationally.