guidance.fyi
Company, quarter, or anything said on a call

Q1 FY27 earnings callPitti Engineering Limited

Pitti Engineering posted strong volume growth and revised its annual volume target upward, driven by broad-based demand from data centers, mining, and railways, while executing significant capacity expansions.

Positive tone5 min readPublished the same day as the call

Numbers
MetricThis quarterChangeFive-quarter trend
Revenue from Operations₹ 529 crores16%
Adjusted EBITDA₹ 89 crores14%
Adjusted EBITDA Margin16.8%
Adjusted PAT₹ 32 crores
Total Lamination and Assembly Volumes19,200 tons19%
Total Casting and Machine Components Volume3,191 tons4.2%
Sheet Metal Utilization73%
Machining Utilization86%
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
QuarterRevenueNet profit (PAT)Basic EPS
Q3 FY25₹414.98 Cr+41.3% YoY-3.3% QoQ₹28.76 Cr+115.9% YoY-24.4% QoQ₹7.64+83.7% YoY-25.1% QoQ
Q2 FY25₹429.36 Cr+47.9% YoY+12.2% QoQ₹38.02 Cr+68.6% YoY+85% QoQ₹10.20+44.9% YoY+59.1% QoQ
Q1 FY25₹382.78 Cr+32.1% YoY+16.7% QoQ₹20.55 Cr+47.1% YoY-49.1% QoQ₹6.41+47% YoY-49.1% QoQ
Q4 FY24₹327.88 Cr+32.5% YoY+11.7% QoQ₹40.35 Cr+62.4% YoY+202.9% QoQ₹12.59+62.5% YoY+202.6% QoQ
Q3 FY24₹293.64 Cr+23.4% YoY+1.2% QoQ₹13.32 Cr+9.8% YoY-40.9% QoQ₹4.16+10.1% YoY-40.9% QoQ
TL;DR
  • Revenue grew 16% YoY to ₹ 529 crores; Adjusted EBITDA grew 14% to ₹ 89 crores.
  • Lamination volumes grew 19% YoY; higher value-added assemblies grew faster.
  • Revised annual Lamination volume target to 82,000 tons from 78,000 tons.
  • Utilization improved across sheet metal (73%) and machining (86%).
  • A ₹ 290 crore Greenfield Casting facility in Hyderabad is underway.
  • Data center revenue is 5% of mix; mining segment grew from 5% to 10% of revenue.
Said on the call

“Our objective is to build capacity ahead of the demand curve.”

Akshay S. Pitti
From the Q&A
TopicWhat management said
High Value-Added Assemblies GrowthGrowth driven by data centers, special industrial use, mining, off-highway, and wind-based applications; EBITDA per ton for integrated assemblies is difficult to state as it's a mix of three verticals.
Data Center BusinessCurrently 5% of revenue is from the power generation side; supplies include direct exports to the U.S. and products made in India for local use and re-export.
Capex Details₹290 crore Greenfield Casting facility in Hyderabad has incurred ₹60 crores so far; 30% for infrastructure, 70% for plant/equipment; expected commissioning by Q1 FY30.
Export PerformanceDirect exports were flat but expected to pick up in Q3-Q4; indirect exports (supplying to local ops of global customers for re-export) are a bigger opportunity.
Margin TrajectoryMargins flat due to higher manpower cost from recent capex; improvement expected as operating leverage kicks in with higher utilization, with a target of >18%.
Volume and Capacity OutlookRevised Lamination target to 82,000 tons for FY27; with current capacity of 108,000 tons, headroom is limited; incremental capex likely in FY28, and a potential new facility in Bangalore in FY28/FY29.
Casting and Machining TargetsCasting volume target revised upward to about 17,000 tons; machining capacity is a bottleneck at 86.33% utilization; ₹290 crore capex will increase machining capacity to 1,080,000 machine hours.
Debt and Working CapitalNet debt is ₹491 crores; potential to optimize working capital by ₹25-30 crores; forex impact of ₹3 crores increased finance cost.
Guidance
  • Revised annual Lamination volume target to 82,000 tons (from 78,000 tons).
  • Casting volume target revised upward to about 17,000 tons.
  • Target EBITDA of roughly ₹370-odd crores for the current year.
  • For the next year, target turnover above ₹2,500 crores at 90,000 ton operating level with EBITDA margin of 17-17.2%.
  • Expect margins to improve to upwards of 18% with capex coming online and product mix improvement.
  • Full-year effective tax rate expected to be closer to 25%.
  • Government incentive income may not be taken this year but should be received next year.
  • Expect direct exports to pick up in Q2, Q3, and Q4.
Source