Pitti Engineering Limited — Investor Meet, 18-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Pitti Engineering reported strong H1 FY '25 consolidated results, with revenue soaring 37.1% year-over-year to ₹850 crores, while EBITDA increased 59.83% to ₹124 crores. PAT exhibited impressive growth of 105%, reaching ₹57.38 crores, resulting in an EPS of ₹16.04. For Q2 specifically, consolidated revenue matched ₹455 crores, with PAT growing by 72.74% to ₹38 crores. Standalone figures for Q2 included a revenue rise of 28.44% to ₹404.97 crores, with PAT reaching ₹34.05 crores.

**Future Outlook and Growth Drivers:** Management emphasized confidence in ongoing operational and financial performance enhancements, spurred by new capacity rollouts and integration synergies from recent acquisitions, including Bagadia Chaitra and Dakshin Foundries. Projections indicate revenue could approach ₹2,400 crores by FY '27, with EBITDA margins expected between 15%-16%.

**Order Book and Operational Updates:** Current order book stands at ₹800 crores, expected to be executed within 8-12 months. The integration of recent acquisitions is anticipated to streamline capacity planning and operational efficiencies.

**Analyst Q&A Insights:** Analysts expressed interest in capacity ramp-up, with the Aurangabad facility expected to reach 72,000 tons by December FY '25. Management confirmed that projected sales volumes for FY '25 should total around 62,000-64,000 tons. Working capital requirements are expected to decline due to the integration of newly acquired companies, with net debt anticipated to fall to ₹200 crores by year-end.

**Strategic Focus Areas:** Management indicates a pivot toward growth in high-value sectors, with strong demand in renewable energy, data centers, and mining. Continuous monitoring of market dynamics is critical, especially in low-voltage motors, where competition is fierce.

**Investor Insight:** The robust financial metrics alongside strategic expansions suggest a positive outlook for Pitti Engineering. Current growth trajectories and operational synergies support a **buy** position for investors, as the company appears well-placed to capitalize on emerging market opportunities while mitigating potential risks.