The company announced that it has received an approval for Rs 21.66 crore incentives, out of which Rs. 16.25 crore has been sanctioned for the period from 1st April, 2018 to 31st March, 2020
Pitti Engineering Ltd had invested Rs 160 crore at Aurangabad for setting up a fully automated facility, under Package Scheme of Incentives (PSI), 2013 by Government of Maharashtra for industrial incentives and benefits. Consequent to setting up of the facility at Aurangabad, Government of Maharashtra had declared the project as Mega Project.
The company announced that it has received an approval for Rs 21.66 crore incentives, out of which Rs. 16.25 crore has been sanctioned for the period from 1st April, 2018 to 31st March, 2020. The remaining amount of Rs. 138.34 crore would be received in due course are per agreed terms and conditions between the government and company.
“We are very delighted to receive an approval for Rs. 21.66 crore incentives, out of which Rs. 16.25 crore is sanctioned from Government of Maharashtra for our Mega Project investment at Aurangabad. This would boost our overall cash flows available for expansion and working capital purpose and contributes for overall growth of the company,” said Akshay Pitti, Vice Chairman and Managing Director.
The incentives received by the company add directly to Profit before Tax and will increase profitability of the company. This would also increase the cash flow availability for the company’s expansion and working capital purpose, which would in turn contribute for overall growth of the company.
Akshay added, “These incentives are going to add to our regular profits on a yearly basis for the next five years.”
The company is into manufacturing of electrical steel laminations, motor cores, sub-assemblies, die-cast rotors and press tools. It’s net profit had gone up by 43.94 per cent during Q2 FY21 to Rs. 10.09 crore from Rs. 7.01 crore in Q2 FY20. The revenues from operations during the same period was at Rs. 134.95 crore.
