GOODLUCKNSEQ4&FY22June 01, 2022

Goodluck India Limited

2,888words
34turns
3analyst exchanges
3executives
Management on call
Ram Aggarwal
CHIEF EXECUTIVE OFFICER
Sanjay Bansal
CHIEF FINANCIAL OFFICER
Ram Agarwal
CEO and Mr. Sanjay Bansal – CFO.
Key numbers — 28 extracted
60,000 MT
tical bridges for high-speed railways corridor and many others. Company has a total capacity of 60,000 MTPA for this segment. The order, backed by the Company from L&T for the bullet train under high-spe
Rs.1000 crore
ere is a huge scope of growth and expansion in this segment and we envision an order book of over Rs.1000 crore in the next 2 to 3 years. Another area of focus is the solar power field. We provide a specialize
100 GW
s for the solar panels, which are in high demand across the world. The government initiative of 100 GW solar energy is likely to boost companies solar support structure capacity. Here again, we can fo
30,000 MT
iece of 14 tonnes which earlier was 7 tonnes. Subsequently, total capacity per annum increased to 30,000 MT enabling manufacturing of high value-added products. With this, we will be in positioned to manuf
Rs.702.02 crore
nd Financial Year 2022. Regarding Q4 performance, total income from operations was increased to Rs.702.02 crores against 484.36 crore during Q4 of previous year registering a growth of 45%. EBITA for the qua
484.36 crore
Regarding Q4 performance, total income from operations was increased to Rs.702.02 crores against 484.36 crore during Q4 of previous year registering a growth of 45%. EBITA for the quarter stood to Rs.53.57 c
45%
eased to Rs.702.02 crores against 484.36 crore during Q4 of previous year registering a growth of 45%. EBITA for the quarter stood to Rs.53.57 crore as against Rs.31.28 crores during Q4 of FY2021. Re
Rs.53.57 crore
4.36 crore during Q4 of previous year registering a growth of 45%. EBITA for the quarter stood to Rs.53.57 crore as against Rs.31.28 crores during Q4 of FY2021. Registering a growth in EBITDA margin at the rate
Rs.31.28 crore
evious year registering a growth of 45%. EBITA for the quarter stood to Rs.53.57 crore as against Rs.31.28 crores during Q4 of FY2021. Registering a growth in EBITDA margin at the rate of 71% on year-on-year ba
71%
against Rs.31.28 crores during Q4 of FY2021. Registering a growth in EBITDA margin at the rate of 71% on year-on-year basis. The profit before tax, including other comprehensive income, was Rs.24.30
Rs.24.30 crore
te of 71% on year-on-year basis. The profit before tax, including other comprehensive income, was Rs.24.30 crores in Q4 of 2022 as compared to 8.18 Cr. in Q4 of 2021. Performance for the full financial year is
66%
full financial year is substantially improved as compared to previous year. Turnover increased by 66% to Rs.2,617.10 crores. EBIDTA increased by 53% to Rs.186.89crores and PAT stood at Rs.75.02 crore
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Guidance — 11 items
Mahesh Garg
opening
I would like to hand over the floor to Mr.Ram Aggarwal, who will be talking about the business in detail.
Ram Agarwal
opening
Work has started and we are hopeful that the project will get over as per the schedule.
Ram Agarwal
opening
With this, we will be in positioned to manufacture and supply high value-added products which would result in greater profitability.
Aniket Redkar
qa
This is the target of the Company to reduce the borrowings.
Aniket Redkar
qa
So, from June onwards, we can we can see the project on the floor.
Aniket Redkar
qa
So, what are the target plans and what kind of order we can get?
Aniket Redkar
qa
Even the REL Reliance has given 100 GW target for up to 2030, government of India is already having a target.
Aniket Redkar
qa
So, right now we are having a visibility of almost 300 MW in coming 2 to 3 months, but it will improve after the rains are over, the work will start and the visibility will be better.
Aniket Redkar
qa
But now the market has started to open, but products will be added.
Aniket Redkar
qa
And Sir as the steel prices moving up, so what are your steps and how do we plan to take care of that?
Risks & concerns — 2 flagged
But now government is putting pressure that it should be made in India.
Aniket Redkar
And due to this Ukraine conflict or the China conflict also government has put pressure for make in India, but it is just started.
Aniket Redkar
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Q&A — 3 exchanges
Q
Can you please give the capacity utilization for the each of the four segments..
Management
Sir, overall utilization of the capacity you are asking? Yes, I am asking utilization of the capacity in percentage terms, individually for each of the four segments. Individual segment. We may not be able ready, we can give you afterwards but overall utilization around 80%. Segment wise is not possible. Immediately. Not possible, but we can tell you afterwards. Malhar Mane Okay. Sure. Second question was that we have we have mentioned our volume growth, I think around 17.7% but revenue growth is 66%. So, there seems to be an improvement in realization per metric tonne. So, what is driving thi
Q
Goodafternoon sir, Hello Sir, Congratulations for the good set of numbers. I have a couple of questions. So, first question is related to the balance sheet. Are we moving to reduce our long term borrowing to zero? Sanjay Bansal Yes. This is the target of the Company to reduce the borrowings.
Aniket Redkar
Sir, I just want to know the status of L&T LOI.? Ram Aggarwal L&T LOI work has already started. Most of the infrastructure work has been completed and the required approvals are on the way. So, from June onwards, we can we can see the project on the floor. Okay. And Sir, what is the reason behind a good export performance and which other geographies and for which segment we are getting more export order? Mahesh Garg It is a precision tube and galvanized pipe. There has been a good demand overseas because there was a shortage in the world over of the product. Okay. As you said that the Company
Q
I would like to take this opportunity to thank each member of Goodluck India family. I would also like to thank our clients, creditors, banks, financial institutions and other stakeholders. And we look forward for your interest of all our stakeholders. And for any further queries or information, please get in touch with our investor relations team. Thank you very much.
Management
Speaking time
Aniket Redkar
11
Management
6
Moderator
5
Mahesh Garg
5
Malhar Mane
4
Ram Agarwal
1
Sanjay Bansal
1
Ram Aggarwal
1
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Opening remarks
Mahesh Garg
Good afternoon, everyone. Welcome to Goodluck India Ltd Earnings Conference Call for the fourth quarter and full year ending 31st March 2022. I would like to begin by expressing my gratitude to you all for taking the time to join us. On the call with me today are Mr. Ram Agarwal – CEO and Mr. Sanjay Bansal – CFO. The Company is an established manufacturer of engineered steel products. It was incorporated in the year 1986. It is headquartered in Ghaziabad with 364,000 tonne manufacturing capacity. This capacity is spread across six facilities, five in Sikandrabad, Uttar Pradesh, and one in Kutch, Gujarat, employing over 3,000 personnel with over 3 generation of hands-on experience of promoters. This year we have added 18,000 metric ton in forging division and 20,000 metric tonnes in precision tube engineering division. Goodluck is into four major vertical, which are ERW Steel Tube, Precision tube, Precision engineering and fabrication and forging. We have started our solar in a separate
Ram Agarwal
Thank you, sir, and welcome all of you to this call. After the opening remarks by Mr. Garg, I would like to take you through Company in a bit more detail. I would like to dwell on each of the segment. Now we can start with engineering structures and precision fabrications, a key segment, not only in terms of our engineering expertise and passion, but also in terms of growth opportunities. In this, we are evolving to provide both fabrication and services for infrastructure solution. Be it road bridges, smart city structures, or supercritical bridges for high-speed railways corridor and many others. Company has a total capacity of 60,000 MTPA for this segment. The order, backed by the Company from L&T for the bullet train under high-speed railway corridor, is on course. Work has started and we are hopeful that the project will get over as per the schedule. Here we are working alongside the Japanese engineers. There is a huge scope of growth and expansion in this segment and we envision a
Sanjay Bansal
Thank you, sir. Good afternoon. At the outset, I Sanjay Bansal – CFO, on behalf of Goodluck, welcome you all for joining us for conference on performance of the Company in Q4 and Financial Year 2022. Regarding Q4 performance, total income from operations was increased to Rs.702.02 crores against 484.36 crore during Q4 of previous year registering a growth of 45%. EBITA for the quarter stood to Rs.53.57 crore as against Rs.31.28 crores during Q4 of FY2021. Registering a growth in EBITDA margin at the rate of 71% on year-on-year basis. The profit before tax, including other comprehensive income, was Rs.24.30 crores in Q4 of 2022 as compared to 8.18 Cr. in Q4 of 2021. Performance for the full financial year is substantially improved as compared to previous year. Turnover increased by 66% to Rs.2,617.10 crores. EBIDTA increased by 53% to Rs.186.89crores and PAT stood at Rs.75.02 crores as compared to Rs.30.05 crores. The volume stood at264,418 tons as against 224,603 tonne in FY2021 a grow
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