Dear Shareholders,
I hope this letter finds you in the best of spirits. It is both a
privilege and responsibility to present a comprehensive overview of our performance for
the financial year 2022-23.
The past year has been one of substantial growth and advancement for
Pennar Industries. I am thrilled to report a dramatic surge in our total revenue and
profitability. We registered a total revenue of H 2,89,462 lakhs in FY 2022-23, up from H
2,26,575 lakhs in FY 2021- 22. Our PAT stands at H 7,543 lakhs, which has increased from H
4,191 lakhs last year.
Such milestones are not achieved overnight but are the cumulative
result of consistent efforts, strategic decision-making and unwavering dedication of our
talented workforce. Our stakeholders, partners, and customers have played an integral role
in this journey, and I extend my heartfelt gratitude to all of them.
A critical metric of any organisation's financial health is its capital
efficiency, and I am pleased to inform you that we have made significant strides in this
area. Through meticulous planning, stringent cost controls, and optimised resource
allocation, we have elevated our capital efficiency, ensuring that every investment made
is judicious and yields substantial returns. This not only strengthens our financial
position but also reinforces the trust you, our esteemed shareholders, place in us.
As we celebrate our accomplishments, we remain keenly focused on the
future. Our strategic roadmap for the upcoming five years is robust and ambitious. Pennar
Industries is poised to scale rapidly, and our growth will be powered by a multifaceted
strategy that revolves around our key growth vectors: 1
1. Pre-engineered Buildings: As urbanisation and infrastructure
projects gain momentum, the demand for pre-engineered buildings is increasing. Leveraging
our expertise and technology, we aim to cater to this demand efficiently and innovatively.
2. Hydraulics Systems: Hydraulics play a pivotal role in various
industrial applications.
Recognising this, we are investing in research, development and
capacity expansion to capture a larger market share.
3. Boilers and Industrial Equipment:
The industries we serve are expanding, and so is the need for boilers
and specialised industrial equipment. Our commitment is to provide superior quality
products that resonate with our customers' requirements.
4. Engineering Services: Engineering is at the core of what we do.
By continuously upgrading our skills and adopting the latest
technologies, we are set to offer superior engineering services that set industry
benchmarks.
5. Precision Tubing: As industries evolve, the requirement for
precision and specialisation grows. Our foray into precision tubing is aligned with this
demand, and we are gearing up to be leaders in this segment.
6. BIW business: Stringent global emission regulations are pushing
the automotive industry to reduce the weight of vehicles while maintaining uncompromised
crash safety standards. This emphasis on safety has significantly propelled advancements
in Body in White (BIW) technology on a global scale.
Our strategic direction involves an ambitious expansion of our
BIW business by introducing automation to new hot stamping lines and
incorporate laser machines into our operations which will help us to gain a competitive
edge within India and internationally.
Looking ahead
Our growth vectors are not just business verticals; they are a
testament to our adaptability, foresight, and commitment to excellence. We understand the
changing dynamics of the market and are proactively positioning ourselves to seize the
opportunities that emerge from these changes.
The road ahead is filled with promise. With our combined strength,
dedication and vision, I am confident that the ensuing years will witness Pennar
Industries scaling greater heights. Your trust fuels our passion, and together, we will
create a legacy of success and innovation.
Once again, I thank you for your unwavering faith in us and look
forward to achieving many more milestones together.
Warm regards,
Nrupender Rao
Chairman - Emeritus, Pennar Industries