OVERVIEW:
Your company GUJARAT POLY ELECTRONICS LTD (GPEL) was set up in 1989 to manufacture Multilayer Ceramic Capacitors (MLCCs) in the Electronic Estate in Gandhinagar, Gujarat. Subsequently other products like Single Layer Disc Ceramic Capacitors, both low and high voltage were added to our range of products. Keeping in view the customer requirements GPEL has, over a period of time, added other electronic components for trading like other types of capacitors, Diodes etc. The company has outsourced our products from imports & marketing the same in our brand name maintaining the same quality standards. GPEL products are well received in the Indian market place.
INDUSTRIAL STRUCTURE AND DEVELOPMENT:
Electronic components are the building blocks of any electronic system and are basically classified into Active & Passive components. Our capacitors are characterized by their miniature size, low cost, wide range etc. and fall under the category of passive components. Our products are meant for the Electronics Industry, at large, primarily to major Original Equipment Manufacturers (OEMs). GPEL also markets our products through a wide Dealer network all over India.
Our customers are segmented according to the product applications as follows:
1) Computer & Computer Peripherals
2) Instrumentation & Industrial Electronics
3) Strategic Electronics
4) Consumer Electronics
5) Telecommunication
6) Dealers
7) Electronic Manufacturing Services (EMS)
GPEL Products find applications in all the above sectors of the Electronic Industry.
OPPORTUNITIES:
- Ceramic capacitors are the most widely used passive component due to their excellent electrical characteristics over other types, as well as by way of its flexibility in casting into any shape.
- Ceramic capacitors are also characterized by their miniature size, wide range of products, low cost, variable dielectric constant etc.
- Capacitors find application in Tuning circuits, Coupling, Filtering, Harmonic Suppression, Power factor compensation etc.
- GPEL has diversified its bouquet of products to our customers, by offering other types of capacitors.
THREATS:
- Electronics Components can be easily sourced through imports at zero custom duty.
- Due to the low cost of our components they are fiercely competitive.
- Market volatility in Currency & Metals impact our bottom lines.
- The EMS segment is the fastest growing market. Since requirements are high, customers have access to global sourcing.
- Outsourcing can cause supply chain disruption on import supplies.
RISKS AND CONCERNS:
- The electronic market is highly competitive due to which the manufacturers resort to new development in the design and offer the consumer more value for money. Consequently, the obsolesce rate is high.
- Due to changing requirements & to meet customers expectations, faster deliveries and high stocking levels are of prime concerns.
- It is easy for OEM customers to import in kit form, which helps them to turnaround faster.
- The dependence on imports exposes your company to be sensitive to foreign currency volatility.
PERFORMANCE BY SECTOR:
The market sentiment throughout the FY 2023-24 was dull except for Q1. Most of market segments were slow to pick up. The Instrumentation & Industrial requirements increased marginally & the EMS customers insisted on immediate deliveries and at a very competitive price. Consequently, Radial MLCC sales were low in comparison to previous FY. However, the other regular products like SMDs & SLCCs/HLCCs exceeded the last year Sales figures. Also dealers resorted to aggressive prices to dispose of the high inventories piled up with them, due to low market requirements.
Despite above your company achieved a sale of Rs 1691.39 lakhs against sales of Rs 1596.34 lakhs previous year, an increase of 6%.
key financial RATIOS:
In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios.
The Company has identified the following ratios as key financial ratios:
| Sr.No. | Ratio | 2023-24 | 2022-23 | % Deviation | Reason for more than 25% Deviation |
| 1 | Current Ratio | 6.02 | 8.74 | -31.06% | The current ratio has declined as there is fall of 3.82 % in current assets and rise of 50.59% in current liability (due to comparatively higher trade payables) |
| 2 | Debt-to-equity Ratio | 1.14 | 1.51 | -24.48% | - |
| 3 | Debt Service Coverage Ratio | 30.53 | 82.09 | -62.80% | Despite rise of 5.95% in operating revenue, there has been significant fall in earnings available for debt servicing (as there is fall in other income by 83.79%) as such the ratio has fallen dramatically |
| 4 | Return on Equity Ratio | 0.20 | 0.74 | -73.17% | Shareholders equity has improved by 29.67%(improving profit since last few years) whereas PAT has declined by 65.21 resulting in decline in return on equity |
| 5 | Inventory Turnover Ratio | 3.78 | 5.28 | -28.37% | Although the sales has increased by 6%, the growing average inventory(48% increase) in current year has lowered inventory turnover ratio |
| 6 | Receivables Turnover Ratio | 3.89 | 3.88 | 0.37% | - |
| 7 | Payables Turnover Ratio | 22.10 | 132.97 | -83.38% | The average trade payables has recorded a remarkable rise (1012.5%) causing a notable fall in payable turnover ratio |
| 8 | Net Capital Turnover Ratio | 2.18 | 2.01 | 8.42% | - |
| 9 | Net Profit Ratio | 0.11 | 0.33 | -67.18% | Profit after tax has materially declined in the current year as compared to last year , Since last year there is profit from sale of land lease rights |
| 10 11 | Return on Capital employed Ratio Interest Coverage ratio | 0.002 61.22 | 0.006 358.15 | -71.68% -82.91% | The lower EBIT in current year compared to last year (-65%) and higher capital invested (24.75%) has reduced return on capital in current year Though the interest cost has almost doubled, yet the substantial decline in PBIT has resulted in significant fall in ratio |
| 12 | Operating Profit Margin | 0.08 | 0.07 | 16.19% | - |
| 13 | Net Profit Margin | 0.11 | 0.33 | -67.16% | The net profit has declined due to lower other operating income although sales have improved by 5.95% |
| 14 | Return on Net Worth | 0.20 | 0.74 | -73-17% | Notable (-65.21%) fall in net profit after tax and improving net worth (29.67%) due to rising profit trend since last few years have reduced significantly the return on Net worth |
| 15 | Return on Investment | 1.06 | 1.02 | 3.91% | - |
OUTLOOK:
The directors are hopeful of increasing the sales turnover by increasing sales of our products to active segments and market recovery. The company is cautiously optimistic about the growth in the current financial year.
INTERNAL CONTROL SYSTEM:
The Company has adequate internal control procedures commensurate with the size of the Company and nature of its business. HUMAN RESOURCES:
The Company has good relation with its employees. There are 36 permanent employees in the Company.
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
