Gujarat Poly

Gujarat Poly Electronics Ltd Management Discussions

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Apr 10, 2026|05:30:00 AM

Gujarat Poly Electronics Ltd Share Price Management Discussions

OVERVIEW:

GUJARAT POLY ELECTRONICS LIMITED (GPEL) was incorporated in the year 1989 to manufacture Multilayer Ceramic Capacitors in Leaded & SMD configurations.Over the period of time, Single Layer (Disc) Ceramic Capacitors, both low & high voltage, were added to the product line. Subsequently, all the products have been outsourced from Imports under our brand & maintaining the same quality standards. Since then, your Company has also started marketing of other types of Capacitors, Diodes etc. GPEL products are well received in the Indian market place.

INDUSTRIAL STRUCTURE & DEVELOPMENT:

Electronic Components are primarily divided into Passive & Active categories. Ceramic Capacitors are classified under Passive Components & find wide application Industry at large. Our products are marketed directly to OEMs. In addition, GPEL also markets products through a wide network of Dealers 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 findapplications

Electronic Industry.

OPPORTUNITIES:

Ceramic Capacitors are characterizedbytheirminiaturesize & Industrial Electronics & are cost effective.

They exhibit excellent Electrical characteristicsin comparison to other types of capacitors.

Ceramic Capacitors can be cast into any shape & available in a wide range of capacitances.

Capacitors are Energy storage devices & find applications in Tuning circuits, Coupling/Decoupling, Frequency Filtering, Power factor compensation, Harmonic suppression etc. in any Electronic circuit/system.

They are the most widely used capacitors.

THREATS:

Ceramic Capacitors are particularly from China.

All types of capacitors can be easily imported with zero Custom Duty.

Metal prices & currency volatility can adversely impact on our bottom lines.

It is easy & convenient for Original Equipment Manufacturers (OEMs) to import all components in kit form.

Similarly, with the popularity of the EMS segment, have led to increase in competitiveness, as they have access to global sourcing. in the Electronic

Dependence on Import sourcing can cause disruption in the supply chain.

RISKS & CONCERNS:

Due to the highly competitive work on Markets, manufacturers have to continuously design development & offer customers. Accordingly, prices & obsolescence are a continuous process & a cause of concern.

Due to outsourcing of products, Currency variations are likely to have a direct impact on the margins.

Due to faster turnaround, ex stock deliveries becomes a prime requirement for satisfying customer needs & making a sale. This requires higher stocking levels & an efficient supply chain.

PERFORMANCE BY SECTOR:

The markets in FY 2024-25 were subdued, except in Q1. of prime concern was the Instrumentation segment, as the UPS/Inverter markets were slow to pick up. Automotive, Consumer & too were sluggish throughout the FY.

There was a perceptible shift changing to SMDs. Similarly, SLCC requirements were slow due to price competitiveness. However, other products exceeded last year sales.

Despite above your company achieved a sale of Rs. 1778.89 lakhs against sales of Rs 1691.39 lakhs previous year, an increase of 5%.

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 comparedtotheimmediatelypreviousfinancialyear) in key financial ratios.

The Company has identified the following ratios as key financial ratios:

Sr. No. Ratios	2024-25	2023-24	% Deviation	Reason for more than 25% Deviation
1 Current Ratio	14.22	6.02	136.08%	The current ratio has improved as there is substantial fall in trade payables compared to last year (around 98%) and consequently in current liabilities (around 7.5%). Moreover the 14.98% rise in trade receivables have also positively impacted current ratio.
2 Debt-to-equity Ratio	0.96	1.14	-15.62%	-
3 Debt Service Coverage Ratio	33.13	35.21	-5.91%	-
4 Return on Equity Ratio	0.21	0.26	-20.67%	-
5 Inventory Turnover Ratio	4.39	4.21	4.41%	-
6 Receivables Turnover Ratio	4.03	3.89	3.43%	-
7 Payables Turnover Ratio	23.49	20.91	12.34%	-
8 Net Capital Turnover Ratio	1.93	2.18	-11.17%	-
9 Net Profit Ratio 0.12		0.13	-5.52%	-
10 Return on Capital employed Ratio	0.23	0.21	8.67%	-
11 Interest Coverage ratio	71.18	61.22	16.27%	-
12 Operating Profit Margin	14.64	8.00	83.00%	This is mainly due to increase in revenue and decrease in other expenses.
13 Net Profit Margin %	11.51	11.00	4.64%	-
14 Return on Net Worth %	19.01	20.00	-0.99%	-
15 Return on Investment %	8.22	10.60	-2.38%	-

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 34 permanent employees in the Company.

Gujarat Poly Electronics Ltd Management Discussions

Gujarat Poly Electronics Ltd Share Price Management Discussions

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