RACL Geartech Limited

Stock Opportunities
435

Here are my notes from their FY23 AR.

Miscellaneous

  • Forex gain : 7.35 cr. (vs 2.66 cr. in FY22)
  • Unique business model of well diversified Premium Niche segment and a strong resilient supply chain network
  • Defect free quality product with 100% On-Time deliveries . Have earned a dominant position in the fiercely competitive Gear market
  • Commissioned 558 Kwp Roof Top Solar Power Plant in Gajraula which will lead to savings of >26 lakh per annum . Instead of capital investments, company entered 25 years OPEX model agreement with an external company . Aim to source 40% electricity from solar energy by March 2024
  • They are a zero water discharge company
  • Broad basing product mix by producing Chassis, Suspension and Steering Components and sub-assemblies for Passenger cars and Engine Gears for Heavy Commercial vehicles as part of an extension and diversification strategy
  • Also supplying components for Electric Vehicles in local and international markets
  • Realizes invoice value of goods via bill discounting from RBL Bank Limited, Citi Bank and Standard Chartered Bank. Did bill discounting of 28.49 cr. (vs 13.87 cr. in FY22)
  • Bankers : Bank of India, RBL, Citi, IndusInd, Standard Chartered, Yes, SBI (new)
  • Share price : 954.15 (high), 444.4 (low)
  • Shareholders : 12’826 (vs 13’929 vs in FY22)
  • R&D : Is in the process of segregating R&D and capex investments from normal business activities
  • Purchase of fixed assets : 61.83 cr. (vs 56 cr. in FY22)
  • Advances given : 15.94 cr. (vs 6.08 cr. in FY22)
  • Auditor remuneration : 6.45 lakhs (vs 6.35 lakhs in FY22)

Segment share

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Geographical breakup and forex outgo

  • Exports: 249.97 cr.; Domestic: 88.41 cr.
  • Present in 4 states in India, exports to 10 countries
  • Forex outgo: 42.34 cr.
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Employee:

  • 538 (vs 494 in FY22)
  • Gursharan Singh remuneration was 2.07 cr. (vs 2.16 cr. in FY22)
  • Dev Raj Arya remuneration was 78.27 lakhs (vs 82.15 lakhs in FY22)
  • Prabh Mehar Singh drew only 27.42 lakhs
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Imported technology

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Customers

  • BMW Mottarad (Germany), Kubota Corporation (Japan, Thailand and USA) , IT Switzerland (Same Group Company), KTM AG (Austria) Schneider Electric (Germany), Dana (Italy and China), etc.

Important resolutions

  • Anil Sharma to be given retainer fees of 2.5 lakhs per month
  • Narinder Paul Kaur to be given retainer fees of 2.5 lakhs per month
  • Increase borrowing limit to 250 cr.

Disclosure: Invested (position size here)

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