Penny Stock Below Rs 2 Reports 153% PAT Growth In Q1: Do You Own?

G G Engineering Ltd is a micro-cap company which recorded a market cap of Rs 101.14 Cr on Monday's closing session. The firm reported outstanding results in the first quarter of FY24, which drove the shares up on the previous trading day.

The company reported a revenue from operations of Rs 18.94 Cr during Q1FY24 up by 143.44% YoY from Rs 7.78 Cr in Q1FY23. Its EBITDA stood at Rs 0.53 Cr up by 231.25% YoY from Rs 0.16 Cr posted in the same quarter of FY23 while EBITDA margin climbed by 71 bps from 2.08% to 2.79%.

G G Engineering said its net profit during the first quarter ended 30 June 2023 was Rs 0.33 Cr up by 153.84% from Rs 0.13 Cr posted during the corresponding quarter of FY23.

"We are pleased to announce the remarkable financial results for the Q1FY24, which demonstrate our continued commitment to growth, efficiency, and value creation. We have achieved significant improvements YoY in revenue, EBITDA, EBITDA margins, and profit after tax, reflecting the success of our strategic initiatives and the dedication of our team," said the management.

"The stellar performance in this quarter is highlighted by a remarkable 143.42% growth in Revenue from Operations, reaching Rs. 1894.66 Lakhs, compared to Rs. 778.35 Lakhs in the same period last year. This revenue growth reflects the strength of our product offerings and the effectiveness of our sales and marketing strategies. Our EBITDA witnessed an impressive surge of 226.88%, reaching Rs. 53.02 Lakhs in Q1 FY24, compared to Rs. 16.22 Lakhs in Q1 FY23.

This improvement in EBITDA underlines our relentless focus on operational efficiency and cost management," said the management of G G Engineering in a stock exchange filing.

"Furthermore, we are delighted to report an enhancement in our EBITDA margins by 71 basis points, rising from 2.08% in Q1 FY23 to 2.79% in Q1 FY24. This improvement is a testament to our disciplined approach to managing costs without compromising on product quality and customer satisfaction.

The bottom-line performance has been equally impressive, with Profit After Tax (PAT) surging by 144.79% to reach Rs. 33.88 Lakhs in Q1 FY24, compared to Rs. 13.84 Lakhs in Q1 FY23. Despite the prevailing economic challenges and uncertainties, we are confident in our ability to navigate the landscape and capitalize on opportunities that lie ahead.

We will continue expanding our market presence to drive sustained growth and shareholder value. We extend our gratitude to our customers, business partners, and stakeholders for their unwavering support and trust in our company. Together, we will continue to build on these achievements, steering the company towards a prosperous and rewarding future," said the management in a stock exchange filing.

On Monday, the shares of G G Engineering Ltd closed on the BSE at Rs 1.15 apiece up by 1.77% from the previous close of Rs 1.13.