Pritika Group Sets Ambitious Rs 950 Crore Sales Target in Three Years Amidst Robust Growth

Introduction:

Pritika Group, a distinguished participant in the engineering and automotive additives region, has unveiled an ambitious increase method geared toward achieving Rs 950 crore in income over the next three years. This ambitious goal is underpinned via a enormous order e book valued at Rs 650 crore, signaling robust market self assurance and strategic foresight.

Growth Strategy and Financial Projections

The company’s growth trajectory is expected to be fueled by a surge in demand within the engineering and automotive components industries. Harpreet S Nibber, Managing Director of Pritika Engineering Components Ltd, articulated the company’s goals, stating,

We are targeting a sales range of Rs 900 crore to Rs 950 crore with a profit after tax (PAT) margin of 7-10% over the next three years. Our strategy is built on leveraging our robust order book and capturing expanding market opportunities.

The company’s recent performance has been impressive. For the fiscal year 2023-24, Pritika Auto Industries Ltd reported a consolidated total income of Rs 343.71 crore, marking a notable year-on-year growth of 15.74%. Additionally, EBITDA surged to Rs 54.10 crore, reflecting significant operational efficiency and a strong focus on profitability.

Pritika Group Sets Sights on Rs 950 Crore Sales with Robust Rs 650 Crore Order Book:

Expanding Horizons

Pritika Engineering Components Ltd (PECL), another key subsidiary, demonstrated commendable growth, with a consolidated total income of Rs 87.56 crore and a year-on-year EBITDA increase of 11.95%. To meet the increasing demand, PECL plans to expand its production capacity and diversify into new sectors. Notably, the company is exploring opportunities in the railways and defense components sectors.

The company is gearing up for a capital expenditure of up to Rs 49.50 crore to support these expansion efforts. This will be financed through a planned fundraise and an increase in authorized share capital from Rs 20 crore to Rs 25 crore.

Future Outlook

For the current financial year, Pritika Auto Industries Ltd is projected to achieve consolidated sales in the range of Rs 425 crore to Rs 450 crore, with a PAT margin of 6-8%. Meanwhile, PECL is expected to achieve consolidated sales of Rs 110 crore to Rs 125 crore, maintaining a PAT margin of 6-8%.

Conclusion:

Pritika Group’s comprehensive approach to growth, including strategic expansion and diversification, positions it strongly within the competitive landscape of the automotive and engineering sectors.

With a solid financial foundation and a clear vision for the future, the company is set to capitalize on emerging opportunities and drive sustained growth in the coming years.

Frequently Asked Questions FAQ:

1. What is Pritika Group’s sales target for the next three years?

Pritika Group aims to achieve sales in the range of Rs 900 crore to Rs 950 crore over the next three years. This ambitious target is supported by a strong order book valued at Rs 650 crore.

2. What are the primary drivers behind Pritika Group’s growth strategy?

The growth strategy is primarily driven by rising demand in the engineering and automotive components industries. The company’s recent financial performance and a robust order book also contribute to its optimistic projections.

3. What were Pritika Group’s financial highlights for the fiscal year 2023-24?

For the fiscal year 2023-24:

  • Pritika Auto Industries Ltd reported a consolidated total income of Rs 343.71 crore, a year-on-year growth of 15.74%. EBITDA increased to Rs 54.10 crore.
  • Pritika Engineering Components Ltd (PECL) achieved a consolidated total income of Rs 87.56 crore, with a year-on-year increase in EBITDA of 11.95%.

4. What are the expected sales and profit margins for Pritika Auto Industries Ltd and PECL in the current financial year?

  • Pritika Auto Industries Ltd is projected to achieve consolidated sales of Rs 425 crore to Rs 450 crore, with a PAT margin of 6-8%.
  • PECL is expected to achieve consolidated sales of Rs 110 crore to Rs 125 crore, with a PAT margin of 6-8%.

5. What expansion plans does Pritika Engineering Components Ltd (PECL) have?

PECL plans to expand its existing capacity and diversify into new sectors, including railways and defense components. The company is preparing for a capital expenditure of up to Rs 49.50 crore to support these initiatives.

6. How will the planned capital expenditure be financed?

The capital expenditure will be funded through a planned fundraise. Additionally, the company has increased its authorized share capital from Rs 20 crore to Rs 25 crore to support the expansion and growth initiatives.

7. Who is Harpreet S Nibber, and what role does he play in the company?

Harpreet S Nibber is the Managing Director of Pritika Engineering Components Ltd. He is responsible for overseeing the company’s strategic direction and driving its growth initiatives.

8. What are Pritika Group’s core business areas?

Pritika Group specializes in the manufacturing of precision machined components and castings primarily for the automotive industry. The group is also exploring opportunities in other sectors such as railways and defense.

9. How does Pritika Group plan to capitalize on rising demand in the industry?

The company plans to leverage its strong order book, expand production capacity, and diversify its business to cater to growing demand. Strategic investments and capacity expansions are key components of its plan to meet market needs.

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