Q4 2025 Pennar Industries Ltd Earnings Call Transcript
Key Points
- Pennar Industries Ltd (BOM:513228) reported a 10.1% increase in Q4 revenue, reaching INR905.8 crores, and a 20.35% rise in profit before tax (PBT) to INR47 crores.
- The company achieved its highest-ever PBT of INR158.4 crores for the fiscal year, with a 3.1% increase in annual revenue to INR3,226 crores.
- The PEB division is expected to continue driving double-digit growth, supported by a healthy order backlog and improved capacity utilization.
- The US subsidiary, Ascent, is performing strongly with a growing order backlog, forecasting double-digit increases in both revenue and PBT.
- Engineering Services and Hydraulics segments are scaling efficiently, with expectations of sustained revenue growth and strong order backlogs fueling confidence in revenue expansion.
- The company's working capital cycle stands at 76 days, slightly above the ideal range, due to elevated raw material costs and higher procurement for order backlogs.
- Employee benefit expenses increased by INR9.43 crores due to wage revisions and additional plant costs, impacting overall expenses.
- Finance costs rose by INR7.44 crores at a consolidated level, with expectations of further increases due to capitalizations and interest on new buildings.
- The company's ROE tracks roughly 1,000 basis points below ROCE, indicating room for improvement in return on equity.
- The company faces competitive pressures on gross margins, necessitating revenue growth and operating leverage to improve margins.
Ladies and gentlemen, good day, and welcome to the Q4 and FY25 Earnings Conference Call of Pennar Industries Limited, hosted by PhillipCapital (India) Private Limited. Please note that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) I now hand the conference over to Mr. Vikram Suryavanshi from PhillipCapital.
Thank you, and over to you, sir.
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Thank you, Puja. Good morning, and a very warm welcome to everyone. Thank you for being on the call of Pennar Industries Limited. We are happy to have with us the management of Pennar Industries for question-and-answer session with the investment community. The management is
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