G G Engineering Reports Robust Q1 Results with ₹204.40 Lakh Profit
G G Engineering Limited announced a significant financial turnaround for Q1 ended June 30. Total income rose 8.4% YoY to ₹6,883.50 lakhs, with revenue from operations up 7.7% to ₹6,763.30 lakhs. The company achieved a profit after tax of ₹204.40 lakhs, compared to a loss in the same quarter last year. The Trading Division - Infrastructure segment contributed 99.4% of total revenue. Operational efficiency improved with total expenses increasing only 2.5% while achieving higher revenue growth. The company maintains high customer concentration with four major customers accounting for 49.9% of total revenue.
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G G Engineering Limited has announced a significant financial turnaround for the first quarter, demonstrating strong growth and a return to profitability. The company's board of directors approved the unaudited financial results for the quarter ended June 30, in a meeting held on August 11.
Financial Highlights
- Total Income: Rose by 8.4% year-over-year to ₹6,883.50 lakhs
- Revenue from Operations: Increased by 7.7% to ₹6,763.30 lakhs
- Profit After Tax: Achieved ₹204.40 lakhs, compared to a loss of ₹218.03 lakhs in the same quarter of the previous year
- Earnings Per Share: Improved to ₹0.01 from ₹(0.01) in the previous year
Segment Performance
The Trading Division - Infrastructure segment dominated the company's revenue, contributing 99.4% of the total revenue at ₹6,725.29 lakhs. This segment also showed a significant improvement in results before tax and interest, rising to ₹115.97 lakhs from ₹58.34 lakhs in the same quarter last year.
Operational Efficiency
G G Engineering demonstrated improved operational efficiency with total expenses increasing marginally by 2.5% while achieving higher revenue growth. Notably, other expenses decreased significantly by 67.9%, from ₹179.91 lakhs to ₹57.76 lakhs, contributing to the improved profitability.
Customer Concentration
The company maintains a high customer concentration, with four major customers accounting for 49.9% of the total revenue. For the quarter, these customers represented approximately ₹1,021.90 lakhs, ₹926.00 lakhs, ₹749.86 lakhs, and ₹681.37 lakhs of the total revenue.
Quarter-on-Quarter Performance
Compared to the previous quarter, G G Engineering showed even stronger growth:
- Total income increased by 46.3% from ₹4,703.72 lakhs to ₹6,883.50 lakhs
- The company returned to profitability from a loss of ₹18.44 lakhs in the previous quarter
Management Commentary
Atul Sharma, Managing Director of G G Engineering Limited, stated in the company's filing, "We are pleased with the strong start to the fiscal year. Our focus on operational efficiency and the robust performance of our Trading Division - Infrastructure segment have contributed significantly to this turnaround. We remain committed to sustaining this growth trajectory and creating value for our shareholders."
The financial results demonstrate G G Engineering's resilience and ability to navigate market challenges, positioning the company for potential growth in the coming quarters. Investors and stakeholders will be watching closely to see if the company can maintain this positive momentum throughout the fiscal year.
| Particulars (₹ in Lakhs) | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue from Operations | 6,763.30 | 6,278.33 | 7.7% |
| Total Income | 6,883.50 | 6,351.68 | 8.4% |
| Total Expenses | 6,691.28 | 6,528.62 | 2.5% |
| Profit/(Loss) Before Tax | 192.22 | (176.94) | N/A |
| Profit/(Loss) After Tax | 204.40 | (218.03) | N/A |
| Basic EPS (₹) | 0.01 | (0.01) | N/A |
The company's shares are listed on the BSE. Investors can access detailed financial results on the company's website at www.ggelimited.com and on the BSE website.
Historical Stock Returns for G G Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.43% | -1.39% | +18.33% | -29.00% | -63.02% | -85.33% |
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