Garg Furnace Reports Strong Q2 Performance with Focus on Value-Added Steel

Garg Furnace Limited , a key player in the Indian steel industry, has announced robust financial results for the second quarter, showcasing significant growth and strategic shifts in its operations.

Financial Highlights

The company reported impressive financial metrics for Q2:

Metric	Q2	Change
Revenue	₹6,138.43 lakh	Up 2.04% QoQ
Operating Profit	₹3.11 crore	Up 111.5% QoQ, 4190.7% YoY
Operating Profit Margin	5.07%	Up 263 bps QoQ, 335 bps YoY
Net Profit	₹274.19 lakh	Up 119.5% QoQ, 272.3% YoY

Strategic Focus on Value-Added Steel

Garg Furnace attributes its strong performance to three key pillars:

Growing Contribution of Value-Added Steel: The company has expanded its supply of specialized steel grades tailored for automotive, agri-machinery, engineering, and precision industrial applications. These grades command superior realizations and customer stickiness.
Chemistry-Led Product Innovation: Investments in optimizing internal chemistry have allowed Garg Furnace to offer performance-led steel rather than commodity-driven steel. This shift has enabled the company to maintain 100% capacity utilization and improve margins independent of steel price fluctuations.
Disciplined Cost Control: Process optimization across melting and rolling operations has strengthened operational efficiency, enabling sharper cost competitiveness. Tight control over power, scrap sourcing, and yield losses has contributed meaningfully to margin expansion.

Expansion and Future Outlook

Garg Furnace's subsidiary, Vaneera Industries Ltd., is in the process of setting up a new facility for alloy steel. This expansion is expected to enhance the company's product mix and long-term profitability by providing access to:

Advanced metallurgy (LRF, EMS, VD)
Premium alloy steel grades
Auto, engineering, and defense-focused customers

The company is focusing on:

Scaling alloy steel volumes post Vaneera integration
Increasing the share of high-strength & performance-led steel
Continuing bottom-line-led growth

Management Commentary

Toshak Garg, Director of Garg Furnace Limited, commented on the results: "This year, we did not depend on market prices for growth—we created our own growth through science, innovation, and discipline. Our shift toward value-added steel has strengthened our margins, while our upcoming alloy steel expansion through Vaneera will position us among the most competitive mid-sized steel players in North India."

The company's focus on specialized steel grades and chemistry-led product innovation appears to be paying off, as evidenced by its strong financial performance. With its strategic initiatives and expansion plans, Garg Furnace Limited seems well-positioned for continued growth.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.92%	-1.87%	-6.65%	-20.70%	-47.63%	+1,252.04%

Garg Furnace Limited, a manufacturer of iron and steel products, has announced its unaudited financial results for the first quarter, along with significant changes to its board of directors.

Financial Performance

The company reported a revenue from operations of ₹6,015.31 lakh, compared to ₹6,232.84 lakh in the corresponding quarter of the previous year, marking a slight decrease of 3.49%. The total income for the quarter stood at ₹6,037.86 lakh, down from ₹6,245.39 lakh in the same period last year.

Garg Furnace's net profit for the quarter came in at ₹124.88 lakh, showing a decline from ₹156.37 lakh in the previous year's corresponding quarter. The company's basic earnings per share (EPS) for the quarter was ₹2.49, compared to ₹3.39 in the same period last year.

Board Changes

In a significant development, the Board of Directors has appointed Mrs. Mehak Jain as an Additional Director (Non-Executive, Independent) of the company, effective August 14. Mrs. Jain, aged about 36 years, is a B.Com graduate with over two years of experience as a Company Secretary. Her appointment is for a term of five consecutive years, subject to shareholder approval at the upcoming Annual General Meeting.

Simultaneously, the Board accepted the resignation of Ms. Purti Katyal as Independent Director, effective August 14. Ms. Katyal cited personal reasons and pre-occupancy for her departure. She also stepped down from her positions in various board committees, including the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee.

Other Key Decisions

The Board of Directors made several other important decisions during their meeting:

Approval of material related party transactions for the current fiscal year with promoter group entities and key management personnel, subject to shareholder approval.
Scheduling of the 52nd Annual General Meeting for September 15, at the company's registered office in Ludhiana.
Setting the record date for e-voting for the AGM as September 8.
Approving the closure of the Register of Members and Share Transfer Books from September 9 to September 15.

The unaudited financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors. Ashwani & Associates, the statutory auditors, have expressed an unmodified opinion on these results.

Garg Furnace Limited continues to operate in the manufacturing of iron and steel products such as M.S. Round, Ingot, and Wire Rod. The company's financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.