Gujarat Intrux Ltd Management Discussions

During the year 2023-2024 Company has performed well and registered strong and positive top line compare to previous year.

This financial year in 2023-2024, Production is increased by more than 27.10% compare to previous year where as numbers for export sales are not as comparatively high as per previous year, but we registered a good growth in domestic sales as its almost 36.87% higher than previous year.

The Companys operational functions are well designed and having almost all facilities in house i.e. Two induction furnace, Moulding Unit, Sand-Reclamation Plant, Shot Blasting Unit, Heat Treatment, MPI, PMI, UT, RT, SPECTRO, IGCT, FARO and fully equipped Machine Shop having CNC, VMC, VTL and HMC etc..

FINANCIAL RATIOS:

The significant changes in the financial rations of the company, which are more than 25% compare to the previous year are summarised below:

Further, details pertaining to other financial ratios also mentioned in this annual report. Please refer audited financial statements Note no. 26 (17)

CHANGE IN RETURN ON NET WORTH:

The return on Net worth for the financial year 2023-24 has increased from 167.74 % to 215.84% as compare to preceding financial year as profit of the Company has increased.

DISCLOSURE OF ACCOUNTING TREATMENT:

The financial statements of the company are prepared as per the prescribed accounting standards and no other treatment or practices are being followed.

SEGMENT/PRODUCT WISE PERFORMANCE:

The company has only one segment i.e. Sand Casting unit only. The Company has total sales of RS.5493.96 Lacs in compare to previous year of Rs. 4842.21 Lacs. (viz. represents 13.46% YOY growth).

INDUSTRY WISE REVENUE CONTRIBUTION:

The company has generated major of its revenue from valve industries.

GEOGRAPHIC REVENUE CONTRIBUTION:

Domestic sales = 61.93% , Export Sales= 38.07%

FUTURE OUTLOOK:

The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India.

With the industry accounting for about 2% of the nations GDP, India ranks as the worlds second-largest producer of steel and is poised to overtake China as the worlds second-largest consumer of steel. Both the industry and the nations export manufacturing capacity have the potential to help India regain its favorable steel trade balance.

India is the worlds second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23.

The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output.

Management of your company understands the trend and scope of Metal industry and hence we shall continue to be quality Steel and Alloy Steels casting Manufacture Company through innovative and improved technology. We strive to provide value addition to our stakeholders.

*(MT stands for Million Ton)

The Company has strengthened its safety policy, performance stability and also expecting to get rise in the market situation. During the year company able to developed more than 100 new items and some new customers also, and which results in growth of sales. Management of your company put e(orts to keep this trend going in future as well.

OPPORTUNITIES AND THREATS :

The company is mainly producing castings which are used in valves industries and demand are growing and company marketing team are constantly making e(orts for capture market thereof. The company has added in-house machine shop facilities for catering demand of machining parts.

One of the main challenges of the steel industries is it is highly capital and labour intensive. Yet another challenge of the steel industry is fluctuating demand. As it fluctuates from time to time, it becomes di*cult for steel makers to predict the demand and produce accordingly. This results in delayed returns on investment. Like most other industries, logistics, and supply chain management remain key areas of challenge for the steel industry. The steel industry is known to be an extremely energy-intensive industry. In fact, it is known to be the second most energy-intensive industry a+ er the chemical sector.

RISK FACTORS:

The Key risks are global demand scenario, domestic demand, economic slowdown, increase in financial charges, non-availability or undue increase in cost of raw materials, and labour etc., coupled with market fluctuations. The Company does not apprehend any inherent risk in the long run, with the exception of certain primary concerns that have a,icted the progress of our industry in general, like: Rising manpower and material costs.

Further, India observing volatility in oil prices, nickel prices and other metal prices. In such case India may face upward inflation, which may impact Companys performance. Further, fluctuation in exchange rate, liquidity issues, rising power and labour cost continues to be key challenge for the industry.

The company manufacturing castings by sand casting process and availability of zircon sand, Chromite sand and other sand is depend upon government/ mining department. Policies and procedures may affect the business.

Prices of Natural resources such as Natural Gas and carbon dioxide (CO2) are some other risk factors which affect the business of the company.

Additionally, migration of skilled workers and getting fresh workers and training them to efficient level which may likely to give impact of the performance of the Company. Your Company regularly monitors the various risks associated with its business and the company continues to take suitable steps to minimize risks and their impact on Companys overall performance.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has comprehensive internal control systems which are commensurate with the nature of its business, its size and the complexity of its operations. They provide reasonable assurance on the effectiveness and efficiency of its operations, reliability of financial reporting and compliance with the applicable laws and regulations. The internal control systems that deploy an amalgam of modern and traditional processes are routine invested and upgraded for both design and operational effectiveness by the Management, and the same is Audited by the Statutory Auditors. Significant audit observations followup actions, and recommendations thereon are reported to the Audit Committee for their review.

LEGAL COMPLIANCE TOOL:

In order to ensure transparency and full compliance of the applicable laws, Company has developed a comprehensive tool which covers the entire gamut of compliances applicable to the companys business. The same has been made operational during the year under review. This tool will enable the company to track and ensure compliance to the regulations in the prescribed time frame. At the same time, it also provides opportunity to develop an efficient plan for go to market strategy for its projects.

QUALITY OF PRODUCTS:

The Gujarat Intrux Limited is known for quality excellence. Entire companys manufacturing process takes extreme care for providing quality. Your Company has achieved benchmark in providing quality casting. The Company has only mo. o of providing quality casting. The Company has separate and dedicated team to assure desired quality and we are maintaining it.

Certifications

HUMAN RESOURCE AND DEVELOPMENT:

Human resources are the most important resources in an organization and need to be used efficiently. because the success, stability and growth of an organization depended on its ability in acquiring , utilizing and developing human resources for the benefit of the organization. Employees a. end a series of training sessions on Technical and so+ skills as part of the Employee Development Program. Special Onsite Program and In-house Training program were conducted on safety. During the year, industrial relations have continued to be cordial, conducive, and mutually productive.

Your Company has taken a group policy of the employees and Company is very co-operative with all the employees. HR department always focuses toward the workforce. and successfully created performance based culture within the organization and emphasize on employees training and development. The company has MOU with government industrial training institute (ITI, Rajkot) about the project "Cluster-Based Local Institute of Vocational Education (Live)".

The Company located at National Highway Rajkot-Gondal and due to its location, the company gets skilled manpower at minimal cost. The companys total manpower comprised 233 employees as on 31st March, 2024. The average age of 81.12% of employees was between 18-45 years as on 31st March, 2024. The company has professionals comprising the following competencies: Metallurgy, Mechanical, finance, sales, operations, quality assurance, procurement and others.

CORPORATE SOCIAL RESPONSIBILITY:

Your Company is committed to conduct its business in a socially responsible manner irrespective of statutory obligation. During the year company has contributed in the healthcare and education sector. Further Companys Corporate Social Responsibility Committee regularly reviews the Companys CSR Policy. CSR Policy is available at the web site of the Company at h. p://www.gujaratintrux.com/investors.php

EXPORTS:

The company has always makes way for large export irrespective of market scenario. Your company having dedicated marketing team which focusing on continual relation with the customers with ethics and complying with commitments. The company is regularly participating at international exhibition. As compare to last year companys export Decreased by 11.23%. The Company has reported 38.07% Export sales out of total sales during the FY 23-24, catering revenue from six countries i.e. Germany, Israel, USA, UK, Spain, and Finland.

CAUTIONARY STATEMENT:

The Management Discussions and Analysis describe Companys projections, expectations or predictions and forward looking statements are within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand and supply and price conditions in domestic and international market, changes in Government regulations, tax regimes, economic developments and other related and incidental factors.