Pennar Industries Ltd
NSE:PENIND
Pennar Industries Ltd
Pennar Industries Ltd. is a holding company, which engages in the provision of engineered products and services. The company is headquartered in Hyderabad, Telangana. The company went IPO on 2010-11-24. The firm is engaged in the manufacturing of cold rolled steel strips, precision tubes, cold rolled formed sections, electrostatic precipitators, and profiles. Its segments include Diversified Engineering and Custom designed building solutions & auxiliaries. The company manufactures railway wagons and coach components, press steel components, hydraulics, road safety systems and galvanized products. The company provides a range of services, which includes structural engineering services, BIM (building information modelling), plant and product engineering services, and industrial automation. The firm serves various industries, such as building and infrastructure, oil and gas, automotive value engineering, heavy engineering, rail transportation, and other industries. The company has manufacturing facilities at Patancheru, Isnapur and Velchal in the state of Telangana, Chennai and Hosur in Tamil Nadu, Tarapur in Maharashtra.
Pennar Industries Ltd. is a holding company, which engages in the provision of engineered products and services. The company is headquartered in Hyderabad, Telangana. The company went IPO on 2010-11-24. The firm is engaged in the manufacturing of cold rolled steel strips, precision tubes, cold rolled formed sections, electrostatic precipitators, and profiles. Its segments include Diversified Engineering and Custom designed building solutions & auxiliaries. The company manufactures railway wagons and coach components, press steel components, hydraulics, road safety systems and galvanized products. The company provides a range of services, which includes structural engineering services, BIM (building information modelling), plant and product engineering services, and industrial automation. The firm serves various industries, such as building and infrastructure, oil and gas, automotive value engineering, heavy engineering, rail transportation, and other industries. The company has manufacturing facilities at Patancheru, Isnapur and Velchal in the state of Telangana, Chennai and Hosur in Tamil Nadu, Tarapur in Maharashtra.
Revenue Growth: Pennar Industries reported Q3 revenue of INR 959.02 crores, up 13.3% year-on-year, reflecting strong growth across key business segments.
PAT Impacted by One-Offs: PAT grew 10.14% to INR 33.55 crores, but was affected by approximately INR 4 crores of onetime employee-related costs. Adjusted PAT growth would have been close to 20%.
Strong Order Backlog: PEB India order backlog stands above INR 810 crores, while the U.S. PEB order backlog is $52 million (buildings) and $10 million (Telco), with expectations for further growth.
PEB Business Recovery: Labor-related bottlenecks in PEB India have been resolved, and management expects significantly stronger revenue in this segment for Q4.
Guidance Reaffirmed: Management reiterated commitment to double-digit sales and profit growth, targeting 20% PAT growth and long-term 7% PAT margin, with all core business verticals expected to contribute.
Margin Outlook: Q3 PAT margin was 3.56% (would have been 4% excluding one-offs); management expects steady quarter-on-quarter improvement toward a 7% long-term PAT margin.
Capital Efficiency: ROCE at 21.3% and ROE at 12.1%, with working capital at 76 days, expected to improve with stronger Q4 projections.
Segment Trends: Diversified Engineering grew by 25.19%, driven by steel, boilers, and BIW; U.S. business and boiler division also saw robust order inflows.
