Pitti Engineering (513519) Q2 24/25 earnings summary

Executive summary

• Completed acquisitions of Bagadia Chaitra Industries, Dakshin Foundries, and Pitti Industries Private Limited, and merged Pitti Castings and Pitti Rail, driving record consolidated H1 FY25 performance.

• Approved unaudited standalone and consolidated financial results for the quarter and half-year ended 30th September 2024.

• Strategic acquisitions and amalgamations are driving operational and financial improvements.

• Board approved the allotment of 2,188,772 equity shares following the amalgamation with Pitti Castings Private Limited.

• Raised INR 359.99 crore through QIP, fully utilized as per placement document.

Financial highlights

• H1 FY25 consolidated revenue up 37.1% YoY to INR 850 crore; EBITDA up 59.83% to INR 124 crore; PAT up 105% to INR 57.38 crore; EPS at 16.04.

• Q2 FY25 consolidated revenue at INR 429.36 crore (+41.89% YoY), PAT at INR 38.02 crore (+72.74% YoY), EPS at 10.2.

• Standalone H1 FY25 revenue at INR 738.91 crore, PAT at INR 52.57 crore.

• Other income includes INR 25 crore incentive from Maharashtra government.

• Gross margin improved with higher revenue and controlled expenses.

Outlook and guidance

• FY25 consolidated sales volume expected at 62,000–64,000 tons; revenue guidance at INR 1,900–2,000 crore, with EBITDA margin around 15.5%.

• By FY27, projected lamination sales at 72,000 tons, casting/machining at 15,000–16,000 tons, revenue at INR 2,300–2,400 crore, EBITDA margin 15–16%.

• Net debt expected to reduce to INR 200 crore by year-end.

• Ongoing CapEx to be capitalized by December, with new incentive eligibility from FY27.

• Recent acquisitions and capital raise position the group for further growth.