Pitti Engineering Limited has informed the Exchange about proposed capacity expansion
PITTIENG · price
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Pitti Engineering's Board has approved a ₹150 crore capital expenditure to expand manufacturing capacity across the company and its two wholly-owned subsidiaries, Pitti Industries and Dakshin Foundry. Sheet metal capacity will rise from 90,000 MT to 1,08,000 MT, machine hours from 6.48 lakh to 7.20 lakh, and foundry capacity from 18,600 MT to 24,000 MT. Current utilization is already high at 70% for sheet metal, 82% for machining, and 69% for casting, leaving little room to grow without expansion. The project will be funded through a mix of internal cash and debt, and is expected to be completed in phases over 18 months.
Positive in the long run as the expansion targets rising demand and removes a near-term capacity bottleneck, but the debt component and 18-month execution timeline introduce moderate balance sheet and execution risk for shareholders in the near term.