Gala Precision Engineering Limited — PPTs, 28-05-2025: Investor Presentation

1. Financial Highlights:

Operational revenue for FY25 rose 17.4% YoY to INR 237.8 Cr, with EBITDA at INR 40.8 Cr, reflecting a 17.16% margin, down 200 bps YoY. PAT grew 20.2% YoY to INR 26.8 Cr, an 11.27% margin. Q4 revenue jumped 31% YoY and 30% QoQ to INR 75.3 Cr, while Q4 PAT surged 45% YoY and 89% QoQ to INR 10 Cr. Net fixed asset turnover improved from 3.05x to 3.65x. Equity strengthened to INR 256.3 Cr, borrowings reduced, and working capital days remained healthy at 116.

2. Strategic Initiatives & Growth Drivers:

Expansion includes a new facility near Chennai in an industrial hub, soon to start commercial production, with INR 37 Cr capex funded by IPO proceeds. Additional INR 11.1 Cr spent on capacity ramp-up near Mumbai. Focus is on precision engineering, moving up the value chain via in-house design to broaden product range and address larger markets. New product development features Griplock Washers for construction equipment.

3. Business Developments:

Gala initiated bolt development targeting an incremental USD 1 Bn market, securing the first industrial US order. Special fasteners segment gained approval from a key industrial client, with sales starting next quarter. The Chennai plant is commissioned, undergoing client audits and visits to drive early commercial traction.

4. Market Position & Competitive Advantage:

With 30+ years in the industry and a 70% domestic market share in Disc & Strip Springs, Gala leads in Special Fastening Solutions, exporting to 25+ countries and serving 175+ clients including major OEMs and Tier-1 suppliers. State-of-the-art manufacturing and in-house tool design enable scalability and flexibility. Export contribution increased to 38% in FY25, showcasing a rising global footprint.

5. Investor Implications:

Strong double-digit revenue and profit growth with stable margins signal positive growth potential. Capacity expansion and entry into the new USD 1 Bn bolt market support future scale-up. Execution risks around new plant ramp-up and growing order book in new verticals merit monitoring. A solid balance sheet and efficient asset use add confidence in sustained operational performance.