Annual Report: 2024
GG Automotive Gears Ltd 50th Annual Report 2023-24 Summary
GG Automotive Gears Ltd (GGAG), established in 1974, is a manufacturer of traction gears and pinions located in Central India. With over 50 years of legacy, GGAG is a dominant force in the locomotive gear market. The company pivoted from smaller automotive gears to medium to large gears. GGAG is a fully integrated organization proficient in developing and manufacturing locomotive and industrial gears, pinions, gearboxes, and forged components, serving various industries like railways, metro systems, oil & gas, defense, wind energy, and power transmission. More than 500 clients endorse the quality of GGAG's products.
Facts & Figures:
Mission: To drive continuous growth by providing high-quality, innovative components and engineering solutions that power essential industries worldwide.
Vision: To be the global benchmark in gear manufacturing, continually expanding our impact by advancing technology and fostering long-term partnerships across critical industries.
Company History:
Key Financial Indicators (in INR Lakhs):
| | 2023-24 | 2022-23 | 2021-22 | 2020-21* | 2019-20 | | :------------- | :------ | :------ | :------ | :-------- | :------ | | Total Income | 9,528 | 7,686 | 4,750 | 3,003 | 5,575 | | EBITDA (%) | 12.65 | 9.97 | 12.19 | 6.43 | 15.28 | | PAT | 443 | 194 | 42 | -246 | 173 |
*Performance Impacted due to Covid-19
FY 2023-2024 Key Metrics:
GGAG serves a broad range of industries and applications. GGAG adheres to the principle of OTIF (On Time, In Full) to adhere to delivery schedules and maintains the highest quality standards through integrated management systems. The industries served include Railway/Locomotive, Metro, Industrial, Mining, and Wind Energy, among others. GGAG has made significant investments in machining, heat treatment, metallurgy, and quality control, and has expanded its facilities with new sheds totaling over 30,000 square feet.
Chairman and Managing Director's Message (Kennedy Ram Gajra):
GGAG achieved a total income of Rs. 95.28 crores in FY2023-24, a 24% increase from the previous year, and reported an operating income of Rs. 12.05 crores, up by 57%. GGAG's order book is at a record high.
Overview of the Economy and Industry:
The fiscal year 2023-24 was remarkable for India, emerging as one of the fastest-growing major economies globally. The Indian economy grew by 8.2% during FY 2022-23. GGAG anticipates expansion in the metro gear sector and also is experiencing rising demand in sectors including oil and gas, power transmission, wind energy, cooling towers, mining, and automotive.
Key Initiatives:
GGAG implemented initiatives that successfully reduced costs per component and improved lead times, while maintaining quality control. The company retrofitted and refurbished existing machinery and invested in new equipment, adding 30,000+ square feet of space. Improved industrial engineering practices and focus on reducing consumable costs were also implemented.
Future Outlook:
GGAG is optimistic about achieving similar growth levels and plans to mitigate impacts of business cycle fluctuations and dependencies by expanding into diverse markets.
The 50th Annual General Meeting of the members of GG Automotive Gears Limited will be held on Saturday, 21st September, 2024 at 11:30 AM. Resolutions to be considered include the adoption of audited financial statements, the reappointment of Mr. Kennedy Ram Gajra as Managing Director, and the appointment of Mr. Pravin Kumar Shishodiya and Mr. Kamlesh Joshi as Non-Executive Directors. To approve the revision in the Managerial Remuneration of Mr. Anmol Gajra, being Whole-Time Director of Company. To make investments, give loans, guarantees and security in excess of limits specified under section 186 of the Companies Act, 2013.
Board of Directors and Key Managerial Personnel:
Directors' Report Key Highlights:
Auditor's Report:
The report expresses an unmodified opinion on the company's standalone financial statements, which comply with Indian Accounting Standards. Key audit matters include the adoption of Ind AS 116 Leases. The report also mentions that 100% of Promoter Shareholding is not in Demat Mode and 2,37,399 Equity shares of Rs. 10 each are yet to be dematerialized.
Ratio Analysis:
| Particulars | 2023-24 | 2022-23 | Change in % | | :-------------------------- | :------ | :------ | :---------- | | Debtors Turnover Ratio | 4.93 | 6.17 | -20.10% | | Inventory Turnover Ratio | 3.48 | 3.42 | 1.75% | | Interest coverage Ratio | 3.86 | 1.69 | 128.40% | | Current Ratio | 1.25 | 1.15 | 8.70% | | Debt Equity Ratio | 0.86 | 1.52 | -43.43% | | Operating Profit Margin Ratio (%) | 34.92 | 27.04 | 29.14% | | Net Profit Margin Ratio (%) | 0.05 | 0.03 | 67% | | Return on Net worth (%) | 13.95 | 8.69 | 60.53% |
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