Q3 FY 24 Concall summary

BUSINESS

• The sales increased to Rs. 878.27 crores as against 705.94 crores during Q3 of previous year, registering a growth of 24%.
• PAT was at Rs. 31.75 crores in Q3 as compared to 18.40 crores in Q3 of previous year up 72%.
• QIP around Rs. 200 crore with good support from names such as Bank of America and Morgan Stanley.
• Exports are roughly in value terms, almost 25%.
• New plant in Sikandrabad, which is coming for hydraulic cooling, will also primarily mean for export and it will give a good boost to the exports.
• All the buses will be replaced by electrical vehicles and there is going to be huge demand for the tube which we manufacture.
• We are in the auto, defense and infra sectors.
• Completed ​​first bullet train project under a joint workshop of L&T, IHI Japan and Good Luck at Bhuj, Gujarat.
• Goodluck Defense And Aerospace Limited where we will make those parts for the Artillery and aerospace sector.
• CDW and DRW precision contribute 25%, forging division contribute 15% defense is part of forging but companies have created Subsidery for defense which will do 350-500 when it will be at the full capacity. margin profile should be 20% plus.
• We have taken almost 30 MW of solar power for our total plant and it is almost 30 to 40% of our demand. So, this way our power bill will be reduced in the coming future.
• Foot over bridge- , we are bidding with L&T, when they get it, so we will get a good portion of fabrication in that.
• The infrastructure section is almost 60% auto section, it is almost 25% and our forging division is almost 15%.
• Infrastructure section includes structure tubing which is being used in the bus bodies, we are giving solar structures and in railways, we are giving Foot Over Bridges, we are giving railway bridges like we are supplying to this bullet train first bullet train from Ahmedabad to Mumbai. We are talking of electrical towers talking of telecom towers.
• Railways and the electrical lines, there is normally 9 to 10% EBITDA and in the structural tubing because it is a general type of thing. So, there the margins may be 3 to 4%. In CDW it is normally 12 to 15%. In forging again it is 12 to 15%.

MANAGEMENT GUIDANCE

• Next year the topline should be 4000 plus and by FY26 it should be 4500 plus excluding the new defense subsidery which can do 350-400cr.

RISK

• The Red sea crisis will impact 75% of exports but 70% is FOB.

It is fairly overvalued!! And it has gone up significantly before this selloff!! also in last concall it was mentioned that they see a slight slow down in order pipe line along with slow down in engineering division!!

I update the PF here whenever I get the chance actually. I woidk want to be a lot mkre regular than I am. I do update it monthy on Twitter.

yes, same question from my side. is the promotor selling off its stake ?