Corporate Feature     

Published: August 15, 2023
Updated: August 15, 2023

G G Engineering

New fiscal starts on buoyant note: Bags fresh orders worth 320 million

GG Engineering, a leading player in infrastructural & Structural steel, and Engineering products industry, has bagged fresh orders for infrastructural steel valued at about Rs 320 Million which will be completed within the Q2 of current FY.

The company is targeting a 20%+ growth in revenue from the Infrastructural Steel business during the current fiscal year as compared to the preceding year. The company achieved Rs 995 Million in revenues from Infrastructural Steel during FY 2022 23 and has already executed Rs 332 Million during 2023 24 so far and the fresh orders will take it up to Rs 652 Million by 30th September 2023.

The company is also in advanced stages of exploring to add new products including steel pipes and hollow sections to the infrastructure business which will add further to the targets set for the business. Recently the company also announced that it won orders valued Rs. 210 million for supplying Iron Raw Material to prominent Industrial houses of repute consuming steel as the primary Raw Material. The company will be completing these supplies within next 30 45 days and is anticipating additional orders as well for Q3 of the current financial year.

On 4th August, 2023, the company also approved the allotment of 49,88,20,215 Fully Paid-up Rights Equity shares of face value of Re. 1/- each at a price of Rs. 1/- per Rights Equity share to the eligible applicants.

Earlier, the company announced stellar earnings for Q1FY24. On a standalone basis, the company reported that its Revenue from Operations grew by 143.42% from Rs. 778.35 Lakhs in Q1 FY23 to Rs. 1894.66 Lakhs in Q1 FY24. EBITDA increased by 226.88% from Rs. 16.22 Lakhs in Q1 FY23 to Rs. 53.02 Lakhs in Q1 FY24. EBITDA margins increased from 2.08% in Q1 FY23 to 2.79% in Q1 FY24 by 71 bps. PAT increased by 144.79% from Rs. 13.84 Lakhs in Q1 FY23 to Rs. 33.88 Lakhs in Q1 FY24.

Commenting on the Q1FY24 Performance, Management said “We are pleased to announce the remarkable financial results for the Q1FY24, which demonstrate our continued commitment to growth, efficiency, and value creation. We have achieved significant improvements YoY in revenue, EBITDA, EBITDA margins, and profit after tax, reflecting the success of our strategic initiatives and the dedication of our team.

The stellar performance in this quarter is highlighted by a remarkable 143.42% growth in Revenue from Operations, reaching Rs. 1894.66 Lakhs, compared to Rs. 778.35 Lakhs in the same period last year. This revenue growth reflects the strength of our product offerings and the effectiveness of our sales and marketing strategies. Our EBITDA witnessed an impressive surge of 226.88%, reaching Rs. 53.02 Lakhs in Q1 FY24, compared to Rs. 16.22 Lakhs in Q1 FY23. This improvement in EBITDA underlines our relentless focus on operational efficiency and cost management.

Furthermore, we are delighted to report an enhancement in our EBITDA margins by 71 basis points, rising from 2.08% in Q1 FY23 to 2.79% in Q1 FY24. This improvement is a testament to our disciplined approach to managing costs without compromising on product quality and customer satisfaction. The bottom-line performance has been equally impressive, with Profit After Tax (PAT) surging by 144.79% to reach Rs. 33.88 Lakhs in Q1 FY24, compared to Rs. 13.84 Lakhs in Q1 FY23.

Despite the prevailing economic challenges and uncertainties, we are confident in our ability to navigate the landscape and capitalize on opportunities that lie ahead. We will continue expanding our market presence to drive sustained growth and shareholder value. We extend our gratitude to our customers, business partners, and stakeholders for their unwavering support and trust in our company. Together, we will continue to build on these achievements, steering the company towards a prosperous and rewarding future.”

G.G. Engineering Limited, incorporated in 2006, is in the business of Quality Metal Products including Heavy Steel Products. The company, diversifying from the conventional businesses, has been eyeing Bulk Steel Processing. G.G. Engineering Limited recently ventured into the segment starting with Supplying Steel Products to the Infrastructure Development Sector with an aim to eventually start manufacturing of Steel Products including TMT Bars, TOR Steel, Structural Steel like Girders and Steel Sections. The company is in various stages of studying and negotiating leasing/acquiring facilities aiding the aim to process and produce Infrastructural Steel Products. With a reputation built on trust, reliability, and unwavering dedication to excellence, G G Engineering Limited continues to forge ahead. It shapes a better future for both its stakeholders and the global community.