Date:26/04/2008 URL: http://www.thehindubusinessline.com/2008/04/26/stories/2008042651820300.htm

Back Pennar Ind upbeat on growth prospects

Our Bureau

Hyderabad, April 25

Riding on the surge in steel prices and consistent growth of around 15 per cent, Pennar Industries Ltd, expects to touch the Rs 1,000-crore turnover mark during the fiscal year 2008-09.

The hike in steel prices alone would contribute Rs 200 crore, while the growth and expanded product base are set to bring in the additional revenues to the Rs 641 crore turnover that the Hyderabad-based company earned during the fiscal 2007-08. While a Rs 20-crore expansion into the Chennai plant to meet demands from the Indian Railways has been firmed up, a joint venture for diversifying into pre-engineered buildings is in advanced stage, said Mr Nrupender Rao, Vice-Chairman of the company.

“Talks are on with a US company and we hope to come up with something concrete in a couple of months,” Mr Rao told newspersons, while announcing the company’s annual performance.

Q4 Performance

On the performance for the last quarter of fiscal 2007-09, Mr Ch Ananta Reddy, Executive Director, said the net profit stood at Rs 10.18 crore (Rs 7.59 crore) , a jump of 34 per cent over the comparative quarter of the previous year.

The turnover for the quarter stood at Rs 161.16 crore (Rs 132.72 crore), while the EBITDA stood at Rs 18.96 crore (Rs 14.66 crore), up 29.3 per cent over the corresponding quarter figures, he explained.

For the entire year ended March 31, 2008, the company’s turnover stood at Rs 641 crore (Rs 560 crore). Having diversified from a cold-rolled steel company into value-added steel products, the company hopes to increase its production to 145 tonnes during current fiscal from 120 tonnes last year.