Pennar Industries Ltd has posted a profit of Rs. 10.7 crore for the first quarter ended June 30, 2017, as against a profit of Rs. 7.8 crore for the corresponding quarter last year, thereby, registering a growth of 37.8 per cent on a consolidated basis. The gross revenue for the first quarter was up 35.9 per cent at Rs. 460 crore as against Rs. 338.4 crore for the same period last year. The company board has decided to enter into an agreement to sell its stake in its subsidiary Pennar Renewable to Greenko Solar Energy. Once the sale is complete, the company’s debt is expected to reduce by around Rs. 101 crore from the consolidated balance sheet. The proceeds of the transaction will be used by the company to expand its product base and addressable markets. Talking about the outlook, the company said the upcoming and ongoing metro rail projects provide opportunities for growth. The company expects revenue growth of 50 per cent on a robust order book, and the capacity expansion with three new mills at Patancheru near Hyderabad has been completed. The company expects the business from the auto sector, industrial components and steel products to improve. The audit committee has recommended the appointment of Deloitte Haskin & Sells, Chartered Accountants, as statutory auditors for five years.