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 capacity of foundry is 300 tons per month. The plant is equipped with all necessary infrastructure, equipment, and machineries. The company is connected with 1800KVA high tension power Connection.

In addition, world has recently been passing through a very difficult phase facing COVID-19 as an unprecedented Tsunami of total disruption of all our Industrial Activities; probably the biggest one in last 100 years. Industrial Activities had come to a Total Halt for almost everybody. Now, the question is how to get back Normalcy. But, with the past history of Businesses bouncing back and the Business Tenets pointing out a light at the end of the Tunnel we are in, we can also gear up to get into Bouncing Back to Normalcy and probably doing better than what it was pre-Lockdown. We GUJARAT INTRUX LIMITED shall certainly not get disheartened, further, at GUJARAT INTRUX LIMITED we are strictly adhering to Safety Measures as prescribed by the WHO and Indian Government to protect the health of all from COVID-19.


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 before the COVID-19 pandemic. As of now some variations were noted in the demand of the steel products but all the units of steel industry putting more efforts to maintain and create similar demand graph in future too. There were overseas demand of the product which was also slightly affected due to pandemic, but we always put emphasis to expand our horizon.


Financial Performance is highlighted as under:

Particulars 2019-2020 2018-2019 % wise Up/Down
Production(in MT) 1676.25 1285.71 30.37% Up
Export Sales (Rs. In Lakhs) 1315.92 1847.55 28.77% Down
Domestic Sales ( Lakhs) 3383.01 2012.85 68.07% Up
Total Sales (Rs. In Lakhs) 4698.93 3860.40 21.72% Up
Other Income (Rs. In Lakhs) 74.95 84.37 11.16% Down
Earnings Per Share 13.81 12.82 7.72% Up
Dividend % 30% 20% -

In the year 2019-20 Company has overall performed decently in terms of production, domestic sales and we noted slight decrement of profitability. Due to COVID-19 Lockdown our operation was inactive for some time and it was re-activated since last week of April and after that we were setting our new normals and we are operating smoothly now.

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, CNC, VMC, HMC and in house Machining facilities.

Better operational performances will improve Financial performance.


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

Ratio Particulars 2019-20 2018-19 % Change Reason for change
Inventory T/O Ratio Standalone 4.71 3.76 25.27 Ratio is positively higher as sales stood up comparing to last year.
Interest Coverage Ratio Standalone 102.38 723.77 (85.85) Ratio is negative due to interest expenses have been stood up comparing to last year, although EBIT has gone up comparing to last year.
Current Ratio Standalone 9.89 6.42 54.05 Current ratio improved comparing to last year as Current liabilities gone down significantly.
Debt Equity Ratio Standalone 0.10 0.16 (37.50) Debt to equity has improved as liabilities gone down and profit for the period gone up comparing to last year.


The return on Net worth for the financial year 2019-20 has increased from 128% to 139% as compare to preceding financial year due to increase in profitability of the Company.


The company has only one segment i.e. Sand Casting unit only. The Company has total sales of Rs. 4698.93 Lacs in compare to previous year of Rs. 3860.40 Lacs.

In the year 2019-20, market conditions stringent and difficult although, Company has achieved notable growth.


No one has fair idea about how fast economy will overcome the effects of COVID-19, and Countrys economy has just pressed RESTART button. Everyone is looking for pace at the same time no one can expect how and when situation will improve. But with the core and focused team we would try and get new horizons.

Situation after COVID-19 pandemic lockdown is not measurable yet, due to lockdown many of migrant workers went back to their native places, recent time every foundry might be going through gradual production, it will get back to normal very soon.

Company shall continue to be Indias leading quality Steel and Alloy Steel sand casting manufacture through innovative and improved technology and method. Company also following various Government initiatives to support the domestic market. We aim to take our Quality Management System, Technology and commitment to the next level. The Company has strengthened its safety policy, performance stability and also expecting to get rise in the market situation.


On the later part of the March 2020, India is also hit by Covid-19 Pandemic after that we had faced very tough time and before that worldwide spreading of COVID-19 caused pandemic situations and Industries were stopping their activities as per various governmental decisions. Market Demand of our product has been affected and revival of the demand is also cant be measured, because situations around the world is not yet normal.

Global Metal castings Production is >1120 lakh tonnes, Of this China produces 490 lakh tonnes, India 130 Lakh tonnes, USA also 130 Lakh tonnes. We are hoping that many of Countries now planning to shift their business from China to other countries. India is one of the destinations.

Foundries will have to play vital role in rapidly expanding Indian Economy. It is important for the foundrymen to be aware of the opportunities that lie ahead of them. The 2020 paradigm shift will enlighten the Foundrymen about what the future holds the tremendous changes that will unfold, and how to prepare for these.

Steel industries are highly deepening upon capital advancement and we are expecting that in the coming years. Further, biggest threat to the any business is its export demand. We were slightly downward toward our export demands and further more pandemic caused us to think upon it.

Being a quality casting manufacturer, we are catering domestic demands by our Customer support and best in quality casting products.

We are now able supply large number of machined castings, as we have increased capacity of our In-house Machining Unit during the year and which will be benefited in coming years to grab the high demand.

We will look into following points for betterment like; wastage reduction, R&D, quality standard, expanding market.


The COVID-19 crisis, with its disastrous consequences for public health, also represents an enormous crisis for the world economy. Our customers have been hit by a general freeze in consumption, by shutdowns and by disrupted supply chains. We therefore expect steel demand to decline significantly in most countries as well domestically. We expect the situation gradually improving as Government is restoring normalization, but the recovery path will be slow.

Further, 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 key challenge for the industry.

Additionally, migration of skilled workers and getting unskilled 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.


Adequate internal control procedures and systems are in place.

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


Indian Government is making tremendous efforts to revive the Country and Economy from the Consequences of the Lockdown due to Covid-19 pandemic. Further Government has also relaxed various Statutory Compliances to be made by giving extension and relaxations.

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 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 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 motto of providing quality casting. The Company has separate and dedicated team to assure desired quality and we are maintaining it.


Very known phrase " Health is Wealth", by quoting that, Gujarat Intrux Limited is very strict to follow and ensure Safety Standards to protect the health of all. Today we are faced with paradoxical proposition of "Lives vs Livelihood. Due to Lockdown and fear of COVID-19 to get back to work was not normal and easy, but precautions will leads to achieve what we want and we are adhering Standard Operating Procedure as guided by MHA India to protect everyone from Noval Coronavirus Disease 2019. 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, also arranged awareness training programme by which employee and worker got to know about all the relevant guidelines given by Government of India to sustain in the situation of pandemic. Company has also implemented monitoring policy by which company get to know that whether all the employees, workers and other staff members are continuing following all the safety measures or not. The company have safe working environment with prescribed safety standards which are periodically reviewed by dedicated team.

As per the government instruction all of our employees have been instructed to download "AROGYA SETU APPLICATION" launched by the Government of India. Company also organized various programs related to Time management, refreshment programs like 5-S, MUDA, ENEERGY AUDIT, Safety 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 except during the period of Nationwide lockdown due to COVID-19 pandemic wherein we have observed migration of our skilled workers and we are gradually getting back to the track.


Your Company is committed to conduct its business in a socially responsible manner. During the year company has contributed in the educational sector. Further Companys Corporate Social Responsibility Committee regularly reviews the Companys CSR Policy.


The company has always makes way for large export since many years. As per some data, Merchandise exports from India dropped by 34.57% @ USD 21.41 billion in March 2020 in comparison to USD 32.72 billion in March 2019. Iron are registered a growth rate of 58.43% in exports, whereas all other commodities/Commodity groups registered negative growth in exports in March 2020. Further, export scenario of the Country is likely to improve as Government of India has initiated various export promotion programs and relaxed various frameworks.

As compare to last year company has noted downward slope in export. Further, we expect the same in the coming year as world economies are facing COVID-19 Consequences. Company has framed various policies after pandemic situations, which will make way for export demands to cater. Your company having dedicated marketing team which focusing on continual relation with customers with ethics and complying with commitments. Company is regularly participating at International Exhibition.


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 materiality from those either expressed or implied. Some parts of the content of this annual report are taken from sources like World Bank, IMF, Business Magazines and other valuable institute & organization.