Gujarat Intrux Ltd Management Discussions.


Our Company "Gujarat Intrux Limited" is engaged in Manufacturing and supply of Stainless Steel, Non - Alloy Steel and alloy steel Castings. The present production capacity of foundry is 300 tons per month. The plant is equipped with all necessary infrastructure, equipment and Advanced Machineries.

The company is connected with 1800KVA high tension power Connection.


Our Company manufactures Steel and Alloy steel Sand casting single piece weight of from few Kgs. to 2200 kgs. The Industry has decent demand in the market and will be there in future too. Valve and other allied products are manufactured by using sand casting process in Gujarat Intrux Limited. There are also overseas demands of like products and we are exporting the same.


Financial Performance is highlighted as under:

Particulars 2018-2019 2017-2018 % wise Up/Down
Production(in MT) 1285.71 1162.62 10.58% Up
Export Sales (Rs. In Lakhs) 1847.55 1793.69 03.00% Up
Domestic Sales ( Lakhs) 2012.85 1669.87 20.53% Up
Total Sales (Rs. In Lakhs) 3860.40 3463.65 11.45% Up
Other Income (Rs. In Lakhs) 84.37 83.59 00.93% Up
Earnings Per Share 12.82 10.05 27.56% Up
Dividend % 20% 15% -

In the year 2018-19 Company has performed very well in all aspects, Company stood up in the production, export sales, domestic sales, so as profitability and EPS.

The Companys operational functions are well designed and having almost all facilities in house i.e. Two Induction furnace, Moldings Unit, Sand-Reclaimation Plant, Shot-Blasting Unit, Heat Treatment, MPI, PMI, UT, RT, SPECTRO, IGCT, FARO CMM MACHINE, CNC, VMC etc.

All this Operational measures lead to increase in Financial Performance of the Company.


The significant changes in the financial ratios of the Company, which are more than 25% as compared to the previous year are summarised below.

Ratio Particulars 2018-19 2017-18 % Change Reason for change
Interest Coverage Ratio Standalone 723.77 28.43 2445.79 Ratio is positively higher, as profit of the company increased and interest cost is decreased.
Current Ratio Standalone 6.42 11.76 45.41 Increase in the current liabilities then the previous year.
Debt Equity Ratio Standalone 0.16 0.09 77.78 Debt portions Increased then the previous year and slight increase in the profitability.


The return on Net worth for the financial year 2018-19 has gone up from 100 % to 128 % as compared to preceding financial year due to increase in the Net Profit of the Company.


The Company has only one segment i.e Sand Casting unit only. The Company has total sales of Rs. 3860.40 Lacs in comparison to previous year of Rs. 3463.65 Lacs.

In the year 2018-19, market conditions of the industry were stagnant although, Company has achieved notable growth.

Company has achieved upward trends in during the year. Company has risen up Domestic Sales and Export Sales than the last year.


As per latest World Economic Prospects report by World Bank, Indias GDP is estimated to grow at 7.5%, growing scenario of our Country may get upward trend in Iron and Steel Industry. At global level there may have more trade agreements which may lead to the path of export expansion. We are committed to manufacture and supply Quality Steel and Alloy Steel Castings to meet customers need both for domestic and global market.

Company shall continue to be Indias leading quality Steel and Alloy Steel sand castings manufacturer through innovative and improved technology and method. We aim to take our Quality Management System, Technology and Commitment to the next level. The Company has strengthened its performance stability and also expecting to get rise in the market situation.


Indian economy is amongst the fastest economy of the world. India has attained tremendous growth in the recent times. It states that such growth is proof of notable performance of manufacturing units. Industry like us aiming for more such developments. We as Gujarat Intrux Limited Steel and Alloys Steel industry expect infrastructural developments in the refineries of the India as well outside India.

The Company has enhanced its production capacity by adding new furnace structure last year and in the recent year we have started adding one more machining unit, So that we can come out with large production at a stretch with fine castings. Progressive country always catches the demand and in such scenario your Company also will get such demand from the Domestic as well as Export Market.

We are not relied on the export market but our biggest opportunity of the Company remains in Exports. The Companys exports, which constitutes around more than 47% of its turnover, however such opportunity comes with certain threats of change in foreign exchange rates, Interest rates, raw material prices and other market factors.

Inflationary scenario in raw material price may give untoward financial performance and profitability. The prices of sand castings depends on raw material price, forex, cost of procces materials and other costs. The prices of exported sand castings will be mainly affected by the exchange rate; therefore, the prices are not stable.


India observing volatility in oil prices, raw iron 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 a key challenge for the industry.

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.


Adequate internal control procedures and systems are in place.

Company has also appointed Internal auditor who looks after internal control system and its adequacy.


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 current financial year. 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


The Gujarat Intrux Limited is continuing feat of quality excellence. Entire companys manufacturing process takes extreme care for proving quality. Your Company has achieved benchmark in providing quality castings. The Company has only motto of providing quality castings. The Company has separate and dedicated team to assure desired quality.


The Company is always focuses toward the workforce. Your Company has created performance based culture within the organization and emphasize on employees training and development.

During the year under review, the Company organized various programs and trainings of Process Management, Safety precautions, Time management, refreshment programs like 5-S, MUDA, ENERGY AUDIT etc. which involves workforce into the Company and improves skills. The Company always has positive approach towards human relation development. Industrial relations remained cordial throughout the year and there was no incidence of strike, lock-out, etc.

The company also have safe working environment with prescribed safety standards which are periodically reviewed which builds the trust.


Your Company is committed to conduct its business in a socially responsible manner irrespective of statutory obligation. However, in the year 2018-19 company has not attracted the provisions of Section 135 of the Companies Act, 2013. Further Companys Corporate Social Responsibility Committee regularly reviews the Companys CSR Policy.


The Company always makes way for large exports irrespective of market scenario, in the year under review Company has marginal expanded ratio of export too. Your company having dedicated marketing team which focusing on continual relation with the customers with ethics and complying with commitments. Company is regularly participating at International Exhibitions.


Statement in this Management Discussion and Analysis Report, describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or Regulations. Actual results might differ materially from those either expressed or implied. Some parts of the content of this annual report are taken from sources like World Bank, IMF.

for and on behalf of the Board of

Gujarat Intrux Limited

Ramankumar D. Sabhaya (Chairman)

DIN: 00569058

Place : Shapar (Dist.: Rajkot)

Date : 29th July, 2019