Goodluck India held a conference call on 10 February 2025 to discuss the results for the quarter ended December 24 and way forward. Mr. M C Garg- Chairman and Managing Director, and Mr. Ram Aggarwal - CEO of the company addressed the call.

Highlights of the Concall

• The company PAT increased by 26% for the quarter, while its sales increased 7%. This has happened because of its emphasis on quality and value-added products, reflecting its strategy of producing high-margin products.

• The company mentioned that globally, economy is perhaps undergoing a slowdown. Inflation continues to be cause of concern, not in India only, but almost all developed and other countries as well.

• However, the macro fundamentals of Indian economy continue to be in-place and it expect resurgence of moderate growth in the next few quarters, driving on government expense and private consumption.

• The steel industry witnessed witness initial slowdown in terms of demand and oversupply in China, but in the fake end-of-the quarter under review is back to growth and staged with post-monsoon demand in India owing to the manufacturing push across key sectors, especially defense, automotive and ancillary industries, as well as rising demand from real-estate and water management sectors.

• Sales volume surged by nearly 21% at 111,078 tonne during Q3FY25, as against 92023 tonne same period last year witnessing buoyant demand for its products across all sectors

• The company recently inaugurated hydraulic tubes manufacturing unit with an installed capacity of 50,000 tonne at Sikandrabad in Bulandshahr district in Uttar Pradesh. The highly specialised hydraulic tubes will replace seamless tubes and act as an import substitute thereby leading to significant savings on foreign exchange besides boosting the company’s topline and bottomline. This will increase existing capacity of 4,50,000 tonne to 5 lakh tonne per annum.

• The company foresees potential of Rs 500 crore from this hydraulic fuel plant.

• Commercial production of the new hydraulic tubes manufacturing unit at Sikandrabad is likely to start in January 25 and will ramp up over the next 3 months. Full benefits is expected to accrue in FY26. The company expects to reach full capacity utilisation over the next 12-18 months. Once it achieves around 80%-90% capacity utilization, the company targets do a capex to double its capacity to 100,000 tonne.

• Goodluck India hopes to commence trial production at new facility of its subsidiary company - M/s Goodluck Defence and Aerospace Limited at Sikandrabad by Q1FY26. Cold run has now started and in March hot run will be done. April '25, trial and run will start. Company hopes to go to commercial production in Q2 FY '26. The unit, which has a capacity to produce approximately 150,000 pieces per annum, will carry out the business of forging, machining, treatment and coating of steel, stainless and special steel, alloys, with a view to cater to the extensive needs of defence & aerospace industry.

• The company, which had recently supplied and fabricated steel bridges for the high-speed bullet train project, expects a good demand for critical steel bridges in the country on the back of recent government proposal to initiate feasibility studies for bullet train corridors in North, South and East India.

• Goodluck India currently has six manufacturing facilities with a total capacity of 4,50,000 tonne per annum spread across two states - Uttar Pradesh and Gujarat. The company has been strategically focused on high margin value-added products catering to high-growth segments such as auto, solar, railways and defence.

• The company expects revenue of Rs 4,500 crore (excluding defence business) in FY26 with volumes expected to expand around 15%-20% YoY.