Pennar Industries Q2 Net dips 47.3 pc to Rs 5.9 crore
Pennar Industries reported a 47.3 per cent decline in net profit today, for the quarter ended September 30 at Rs 5.9 crore, mainly due to lower sales.
The company had reported a net profit of Rs 11.2 crore in the corresponding quarter last fiscal.
Its net sales declined 8.4 per cent to Rs 238.25 crore during the quarter under review, compared to Rs 260 crore in Q2'FY13.
"Operating cost efficiency projects have started yielding results for us. Improved margins in the second quarter prove that process improvement and innovation is translating into better bottom line," company's President and CEO Suhas Baxi said in a statement here today.
The company witnessed healthy order inflow during the quarter, he said, adding, "This has created a platform for growth in the near term. Even in times of turnover stress, Pennar continues to produce good, positive margins and cash flow. This is keeping our balance sheet strong and allowing us to invest in growth through new businesses and assets."
During the quarter, the company made a foray into the hydraulics sector with acquisition of Wayne Burt Petro Chemicals assets.
"Pennar's entry into hydraulics and industrial storage and warehousing, our investment in new product development and expansion of customer base are the foundation of our evolution into an engineering enterprise. We believe that these efforts are necessary for long term value creation," company Vice Chairman Aditya Rao said.
The company's subsidiaries Pennar Engineered Building Systems and Pennar Enviro also had a strong quarter and have booked orders across multiple verticals, he said.
"The subsidiaries will now focus on revenue growth and expanding addressable market size," Rao added.