Goodluck India Ltd

Few Insights from Jan FY22 Concall :

• Target 8000 rs EBIDTA/Ton (achieved 6920 in FY23 against 7060 in FY22). A metric to track in future as it’s an indicator of Value Migration
• Goodluck steel works (Train bridge, where the co got order from L&T for 198cr) expects 1000 cr order book in next 2-3 years. It’s including high speed rail and rapid rail, Not just from high speed rail
• Targte ROCE of 15% in next 2 years i.e. by FY24. But as per AR they acheived ROCE of ~17% in both FY22 and 16% in FY23
• Mgmt talks about Order book in Solar structured business to build up in future as the GOI and Reliance targets 100 gw solar power capacity by FY30 and the capacity for these structures is limited at the moment. Need to see how things pan out few years in future or if they conduct a concall
• Value added to non VA mix: Target 75-25 raitio in 2-3 year i.e. Fy24 or FY25
• Target of 5000 cr topline in next 5 years i.e. by FY27.

But recent managemet meet, the the target for FY25 is mentioned as 4200 cr. If they can grow at this rate they may achieve the 5000 cr target by FY27 or slightly before

Interview with ET now: link

• Target 3400cr – 3500 cr in FY24. Target 8000 ebidta/ton
• Making specialized and customized forgings. Marins are good and deliveries started in June 2023 (So, the Spe quarter performance should be good in terms of margin expansion)

I’ll update this post after listening to latest concall again and add more notes from management meet posted above. Plan to use these as KPIs to see if management walks the talk or not. But they seem to be on track, as long as the current demand environment continues