Shares of Pennar Industries fell 4.8% to Rs 70.64 in morning trade on May 25 after the company posted a 41% rise in net profit to Rs 23.34 crore in the March quarter, but missed expectations.

The value-added engineered products and solutions company had posted a consolidated net profit (attributable to shareholders) of Rs 16.54 crore in the same period last year, the value-added engineering products and solutions company said in a regulatory filing following its listing on May 24.

The net profit in Q4FY23 was below Bloomberg estimates of Rs 24.9 crore.

Revenue for the quarter slipped 3.51% year-on-year to Rs 668.43 crore, well below expectations of Rs 745 crore. The company’s revenue for the three months to March 2022 stood at Rs 692.77 crore.

The board also approved the conversion of a loan to Pennar Global Inc, a wholly owned US subsidiary, into equity.

“Investment of $2.1 million in Pennar Global Inc to expand operations in the US market,” it added.

For the full FY22-23, the company’s net profit rose 80.3% to Rs 75.42 crore against Rs 41.83 crore in the previous financial year.

Revenue jumped 27.75% to Rs 2,894.62 crore in 2021-22 from Rs 2,265.75 crore.

Shares of Pennar Industries are up nearly 20% so far this year and 89% over the past 1-year period.

Pennar Industries is a diversified engineering company with interests in the automotive, rail, aerospace, infrastructure and energy sectors.