Goodluck India Ltd (NSE: GOODLUCK) Q2 2025 Earnings Call dated Nov. 13, 2024
Corporate Participants:
Mahesh Chandra Garg — Chairperson
Ram Agarwal — Chief Executive Officer
Analysts:
Prateek Bhandari — Analyst
Sumant Kumar — Analyst
Rakesh Roy — Analyst
Abhishek Dixit — Analyst
Disha — Individual Investor
Deepak Pandey — Analyst
Vinit Agarwal — Analyst
Yash Master — Analyst
Chirag Mehta — Analyst
Presentation:
Operator
Ladies and gentlemen, good morning, and welcome to the Q2 FY 2025 Earnings Conference Call for Goodluck India Limited. We have with us today, Mr. M.C. Garg, Chairperson; and Mr. Ram Agarwal, Chief Executive Officer.
[Operator Instructions] I would now like to hand the conference over to Mr. M.C. Garg, Chairman and Managing Director of Goodluck India Limited for his opening remarks. Thank you, and over to you, sir.
Mahesh Chandra Garg — Chairperson
Hello, everyone. Good morning. I’m pleased to welcome you all to this earning conference call of Goodluck India Limited. I am honored to have this opportunity to discuss our company’s Q2 FY ’25 performance along with my team and answer any questions or query you may have.
Let me begin by defining the broad economic trends we witnessed during the quarter and company performance. It is a matter of — the results of Q2 are in your hand. And company has performed well under the most adverse condition during the quarter as you must have noticed. The geopolitical tensions and the headwinds going worldwide and Indian demand also looking down, the company has done well and has shown a growth in volume and value. The steel prices were very volatile during the whole quarter, but company performance, in my opinion, is exemplary in all respects. Our business model has stood with us in this difficult time.
And in this quarter, a new milestone has been achieved by the company. We commissioned the plant, a large diameter heavy wall thicker pipe for making hydraulic tube in month of September, which is one of the very few plants in the world and commercial production will start any time in last part of this year, any time after January. This facility have been started with an investment of INR200 crores with a capacity of 50,000 metric tonnes.
Our subsidiary Goodluck Defense and Aerospace progress is going at a very fast pace, and we are likely to commission that plant by end of this financial year. Hence, as per our information today, our demand for the product, which we are going to make is very frantic, and our production coming out is going to be a game changer for the company.
Geopolitical tensions — however, geopolitical tensions have disrupted our export. U.S. elections have thrown uncertainty in the business. The rupee volatility and steel prices and basic commodity prices have become unpredictable and volatile for some time till they stabilize.
In conclusion, we remain committed to delivering value to our stakeholders through innovation, efficiency and sustainability practices and confident to achieve our performance as per the guidance provided earlier.
Thank you for your attention and look forward to all your questions.
Ram Agarwal — Chief Executive Officer
This is Ram Agarwal. Thank you for joining us today. Ram Agarwal, CEO of Goodluck India Limited. I appreciate your participation in our earning con call for the quarter ending September 30, 2024.
During Q2 FY ’25, we recorded a total operating income of INR976 crores compared to INR885 crores in Q2 FY ’24. This substantial growth was driven by operational efficiency. Our EBITDA for the period is INR87.45 crore, up from INR73.68 crore in FY ’24. This improvement in EBITDA can be attributed to the cost optimization measures and increased operational efficiencies. However, market was not favorable, but still, by these two measures, we did this.
On the profit front, our PAT for Q2 FY ’25 is INR45.06 crores, up from INR34.70 crores in Q2 FY ’24. For the half year ended September 30, 2024, the company’s net profit on a stand-alone basis increased by 25.66% at INR79.53 crore as against INR63.29 crore, while total income grew by 9.25% at INR1,908.33 crore as compared to INR1,746 crore last year.
Sales volumes fell by nearly 9.4% at 2,00,489 MT in H1 FY ’25 against 1,83,256 MT in H1 FY ’24. Goodluck India, in my opinion, stands as a testament to the power of innovation and resilience. From its origin in manufacturing regular steel products through its evolution as a premier provider of engineering solutions, the company’s journey is marked by relentless pursuit of excellence. With decades of experience, Goodluck India Limited has successfully navigated market dynamics and technological advancement, positioning itself as a leader of the industry.
The company’s strategic initiatives such as enhancing plant capacity utilization, commissioning new facility by hydraulic tube production underscores its commitment to meeting market demands with forward-thinking solutions. This proactive approach is further highlighted by its expansion into the European, Canadian and Mexican markets; a bold move that not only broadens its global footprint, but also imposes its competitiveness on the international stage.
The company’s focus on increasing its range of value-added products reflected deep understanding of evolving customer needs and the dedication to deliver superior and tailored solutions. This theme captures the essence of company’s journey, leveraging engineering excellence to carve out new pathways for sustainable growth and solidifying its role as a trailblazer in the industry.
We remain committed to creating stakeholder value through sustained performance. We have invested in our future and continue to uphold the tenets of quality, innovation, customer trust in everything we do. We thank our stockholders and the investor community for their sustained support.
I now request the moderator to open the floor for Q&A session. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Prateek Bhandari from AART Ventures. Please go ahead.
Prateek Bhandari
Yeah. Hi, sir. Thanks for the opportunity. Can you tell me about the EBITDA per tonne that we clocked in for this particular quarter?
Ram Agarwal
It is almost INR8,100 approximately.
Prateek Bhandari
So does it mean that we have seen a degrowth in the realization?
Ram Agarwal
How? How did you calculate that?
Prateek Bhandari
So last quarter, we did EBITDA per tonne for INR8,350. And for this quarter, you are stating it’s INR8,100.
Ram Agarwal
Please check your records. It was — in my opinion, it was almost INR7,700 and — INR8,000? It was approximately INR8,000, it remains the same, almost same, flat.
Prateek Bhandari
Okay. And what was the volume for this quarter?
Ram Agarwal
Value of the EBITDA — total EBITDA?
Prateek Bhandari
Volumes. Volume per tonne.
Ram Agarwal
Hello?
Prateek Bhandari
Yes.
Ram Agarwal
In April, it is 2,00,489 metric tonnes.
Prateek Bhandari
How much?
Ram Agarwal
2 lakh tonnes approximately, in exact terms 2,00,489 metric tonnes.
Prateek Bhandari
Okay. So does it mean that we have doubled our volumes on a quarter-on-quarter basis?
Mahesh Chandra Garg
No, no, no, absolutely. I think there is some miscommunication. I can tell you what was the volume in the first quarter.
Prateek Bhandari
So last quarter, you mentioned that you did a volume of 1,02,000 tonnes.
Mahesh Chandra Garg
In this quarter, we have done a volume of 1,03,000 tonnes.
Ram Agarwal
So it is a H1. This is a H1.
Prateek Bhandari
No, no, I’m asking for this particular quarter.
Ram Agarwal
Yeah, yeah. It is — you are talking about quarter, we are talking about H1. So H1, it is 2,00,489 metric tonnes.
Prateek Bhandari
2,04,000 metric tonnes approximately?
Ram Agarwal
Yeah, yeah, yeah.
Prateek Bhandari
And for this particular quarter?
Ram Agarwal
Like 1,03,000 tonnes.
Prateek Bhandari
1,03,000 tonnes. All right. So sir, going forward, where do we see the EBITDA per tonne shaping up to for FY ’26? What would be the approximate range for EBITDA per tonne?
Mahesh Chandra Garg
Every year, the EBITDA has improved. The improvement will depend on the volatility. If it subsides, then we expect EBITDA improvement anything between 5% to 10% EBITDA improvement on a year-to-year basis.
Prateek Bhandari
On an annual basis?
Mahesh Chandra Garg
Yes.
Prateek Bhandari
All right. Thank you, sir. Thanks for the — thanks for answering my questions.
Operator
[Operator Instructions] The next question is from the line of Sumant Kumar from Motilal Oswal. Please go ahead.
Sumant Kumar
Yeah. Hi, sir. Can you talk about the new plant ramping up? How is — what is the utilization currently?
Mahesh Chandra Garg
New plant, trials are being done. Plant has been commissioned. There are a lot of sizes for which equipments are still coming in. The ramping up is going to take three more months. However, inquiries and orders are coming more than what we expected. But some supplies have also been affected. It is a time consuming process. The actual user will get their material, will test it, approve it, and then we will start getting regular orders. But ramping up is going as per schedule.
Sumant Kumar
Okay. And when we see the operating level growth in last two quarters, okay, it is not encouraging. So can you talk about with the new plant ramping up in the coming quarter, and also — and so how is the growth is going to be in next couple of quarters or H2? How is the order book?
Mahesh Chandra Garg
Sir, one thing I disagree with you, the growth in demand or growth in — has not been encouraging. Taking into consideration the headwind growing domestically and internationally, we are still able to grow. And I think that’s a very — compared to the industry as a whole in India, if you see, in our sector, only we are the one to grow. Others have fallen behind. We have been able to not only maintain our EBITDA, we’ve improved our EBITDA in the most difficult situation. Our diversified business model has stood with us in the difficult time. It is a difficult time for industry, processing industry as such. With market steel price going down every month, you can imagine what kind of situation in which we are. But I feel the company has done very well.
Sumant Kumar
Okay, okay.
Mahesh Chandra Garg
And in the time ahead, I look forward the next two quarters must be better than the first two quarters.
Sumant Kumar
Any incremental update in defense side, the sale of defense?
Ram Agarwal
In defense sector?
Sumant Kumar
Yes.
Ram Agarwal
Implementation of the — erection of the product is going on. Machines are on the sea, and it is likely to be a trial run. It is likely to be commissioned by March ’25. And from April ’25, we are likely to start the trial for the commercial production. So it is going on as per our schedule. However, as I said, it is before schedule.
Sumant Kumar
Okay. So you can start before schedule of April 2025, right?
Ram Agarwal
Basically, it’s a trial run and commercial production, it will be starting in April ’25 onwards. Erection will be completed by March ’25.
Sumant Kumar
Okay. So can you talk on solar support structure, how is it growing for the company and the target for us?
Mahesh Chandra Garg
Solar support structure, we are already supplying about 200 megawatts. Already, we are supplying for solar support structure. And it is doing well. We have the good order book there. And we — almost everybody we are supplying. Almost everybody we are servicing solar support structure. And we see good visibility for at least next one year.
Sumant Kumar
Okay. Thank you so much.
Operator
Thank you. The next question is from the line of Rakesh Roy from Boring AMC. Please go ahead.
Rakesh Roy
Hi, sir. Morning, sir. My first question is regarding, sir, for Q1. In Q1, you have guidance — you gave the guidance for 15% to 20% growth, still you’re intact for this growth for whole year?
Ram Agarwal
Can you repeat the question, please?
Rakesh Roy
My question is, sir, in Q1 con call, you have guided — given the 15% to 20% book — top end. So still, you have intact for 15% to 20% growth for FY ’25? Or you have downgraded this growth? Any idea, sir?
Mahesh Chandra Garg
15% to 20% growth is our conservative target for time to come. However, in Q2, the geopolitical situation with disrupted the exports and slowing domestic demand, Indian elections, heavy monsoon, they affected the domestic demand, but still we recorded a growth of — 8%?
Ram Agarwal
10%.
Mahesh Chandra Garg
10% we recorded a growth. And I think that’s a wonderful achievement under the situation.
Rakesh Roy
You have — earlier you had said 15% to 20%, now you are saying 10%.
Ram Agarwal
Basically, due to these conditions, the growth target for this quarter, it has gone down. But now the monsoon is over, election is over, U.S. election is over, so we hope in this H2 or Q3 and Q4, market demand will persist and the guidance what we had given, we are likely to achieve it.
Rakesh Roy
So you are still intact — sir told now it is 10%, but you’re saying 15% to 20% is achievable?
Ram Agarwal
In the coming quarter, it will be; however, a blended one, it may be a little lesser.
Mahesh Chandra Garg
It is definitely achievable. Management is confident we will achieve the growth as guided earlier. However, in the second quarter, I told you the heavy monsoon all over the country, elections, Indian elections, U.S. election. We are an export first company. Disruption in export definitely affected the demand, but still we were able to record a moderate growth of 10%.
Rakesh Roy
Okay, agree sir. My next question regarding, sir, as you said, you were saying the EBITDA per tonne for this quarter is nearby INR8,100. This EBITDA will maintain in near future Q3, Q4 or this will be come down?
Mahesh Chandra Garg
It will be maintained. It has to improve year after year. There is no reason. I don’t see any reason for it to go down.
Rakesh Roy
I agree, sir. Because why I’m asking because iron ore price is increasing. So that’s why I am asking you?
Mahesh Chandra Garg
Sir, I’m not questioning why you are asking. I’m happy that you’re asking. And you should ask these positive questions. [Speech Overlap] to satisfy you. I’m happy you asked these questions.
Rakesh Roy
Okay. Sir, my next question is regarding defense business. Earlier you were saying you have the capacity of 1.5 lakh tonne…
Mahesh Chandra Garg
We are fully confident, we will not only maintain EBITDA, we’ll improve it year after year.
Rakesh Roy
I agree, sir. Good, sir. Sir, my third question is regarding defense business. Earlier, you were saying you have the capacity of nearby 1.5 lakh tonne every year. So for this year, you are — can we assume — is a 70% utilization you make nearby or how much utilization you are targeting for FY ’26?
Ram Agarwal
See, I have already told you that the erection work machinery will be — machinery will be commissioned by March ’25. So, in this current financial year, there will be no production. But in the next year, when we start from April ’25, yes, we will aim for minimum 60% to 70% of the production target in the coming financial year.
Rakesh Roy
Okay sir. Great sir. Great sir. Thank you sir.
Operator
Thank you. [Operator Instructions] The next question is from the line of Abhishek Dixit from Hem Securities. Please go ahead.
Abhishek Dixit
Hi sir. Sir, my question is regarding on other income. Like for this quarter, there has been surge in other income. It’s around INR18 crores. Whereas in earlier quarters it was INR1 core and in the same quarter last year, it was INR4 crores. So what was the reason for surge?
Ram Agarwal
It is a — actually, our other income is an interest income and export rebates and some other income also. So further details, you can e-mail us, we will clarify you.
Abhishek Dixit
Interest income and export rebate…
Ram Agarwal
Export rebates, interest income, and many other miscellaneous income.
Abhishek Dixit
Okay sir. Sir, like if we consider this a normal, what rate was earlier in the quarter then our PAT has been flat, like it has not grown much. It was down to INR100 odd crore?
Mahesh Chandra Garg
Your voice is not clear. Can you speak a little louder?
Abhishek Dixit
Yes. Now it’s clear.
Mahesh Chandra Garg
Yeah, yeah.
Abhishek Dixit
Hello? Yeah. Sir, I was asking, like if you consider the other income as normalized, what it was in earlier quarters. So our PAT is like it is flat. There has been a growth in PAT due to mainly other income only.
Ram Agarwal
Basically, when you will see these conditions in the market, in the Q2, if you consider it from Y-o-Y, then there is a good — despite all these problems, company has been able to maintain the things. Otherwise, it was very difficult because monsoons was almost four, four-and-a-half months. All the projects were delayed. There was no site was working, no supplies were going, and geopolitical, after election, no new projects have been declared. U.S. election, all the export was down. But still, in this difficult quarter, we have navigated our company to maintain, if you — in your words, we have maintained the status quo.
Abhishek Dixit
Okay. So sir, can we expect second half of the year, it would be much better than the first half?
Ram Agarwal
Definitely, it is always. You go for last four, five years, it is always better. And moreover now the monsoon has subsided, U.S. results have come. So I hope it should be normal now.
Abhishek Dixit
Okay. And sir, for this hydraulic plant, what’s our max potential turnover?
Mahesh Chandra Garg
Right now, what we have — we have done a capacity of 50,000 metric tonne. And we hope to achieve it in 12 to 18 months. And as soon as we get 80% and 90%, then again, we will have to do a certain capex to double its capacity because market is ebullient to accept this product.
Abhishek Dixit
Okay. And sir, how is the demand for these hydraulic pipes in India and export market?
Mahesh Chandra Garg
The market is excellent. Demand is excellent. It is a replacement of seamless tubes.
Abhishek Dixit
Yeah.
Ram Agarwal
So demand is there. There is no drought of demand basically. It is only the production, how fast we can ramp up our production, and we can feed the thirst of the market. Market needs this because it is a construction material. The construction — it is being used in a construction machine. And everywhere, construction is going on. Destruction is going on, so construction is the next step, and it has already started.
Abhishek Dixit
Okay. And you have said in your filing also that it will act as an import substitution.
Ram Agarwal
Definitely, it is. Domestically it’s — lot Chinese seamless pipes are coming into the country, and the samples are going to the people who are using these seamless pipes and their approval is awaited. This approval will take some time.
Abhishek Dixit
Okay, sir. That was all from my side. Thank you and best of luck.
Operator
Thank you. The next question is from the line of Disha, an Individual Investor. Please go ahead.
Disha
Hi. I would like to know, can you help me with the update on the bullet train project?
Ram Agarwal
Yes. The bullet train project, as far as we are concerned, we have got an order of 22,000 metric tons. And out of that, we have produced almost 65% order. And in next eight to nine months, maximum to 12 months, it will be completed. But as far as the total bullet train operation is concerned, for which L&T and NHRCL are entrusted the duty. So, I hope in the — by 2026, it should be operational as per the government estimates.
Disha
Okay. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Deepak Pandey from Sagun Capital. Please go ahead.
Deepak Pandey
Hi sir. Thank you for the opportunity. Sir just want to understand, at large for the company right now, the CR coil business is a low-margin and high-volume business. So going ahead, do you see some kind of demerger for the business in the medium to long term?
Mahesh Chandra Garg
We don’t plan to do this. It is a business running for last 25 years at the same capacity at which it was installed. But it is just a low-margin and same volume product, which we are doing, because we have some committed customers who buy from us, and we are servicing them. It is not of much significance to our overall volumes in the company.
Deepak Pandey
Understood sir. Understood. And do we see any further expansion in the same, CR coil business?
Ram Agarwal
No, we don’t plan to do this.
Deepak Pandey
Okay. My second question, sir, pertains to the defense vertical. Has there been any development on the product side or have you spoken to the potential buyers in this quarter?
Mahesh Chandra Garg
We are speaking to a lot of potential buyers, rather potential buyers are speaking to us. And several of them domestically and from overseas have visited our plant. And we find lot of interest in the buyers to buy our product, only awaiting the commissioning of the plant.
Deepak Pandey
Understood, sir. Sir, on the defense part, is there some sort of demand and supply scenario that you have for Indian market?
Ram Agarwal
Indian market, definitely Indian market has a good demand, because in the last two, three years, if you see, because in India MIL is the nodal authority which purchases it. Earlier it was purchasing a very little quantity. But you must have gone through a news item, where they have placed the order of almost 2,50,000 plus requirement for 2027.
So, along with all the world, India is also looking up to increase its bin size for this particular product, because all these ammunition, it is being standardized to 155 mm, what we are doing here. I hope your query is clarified.
Deepak Pandey
Understood sir. Understood. And for the sir, hydraulic tube plant that we inaugurated recently, how long do you see the plant to get stabilized and commercial production to start?
Mahesh Chandra Garg
It may take anything between four to six months. Commercialization is going to start. It’s a long-drawn process. The tubes are made, they go into line, equipment, they are tested, approved. Then only they can be commercialized. Approval is a long term process.
Deepak Pandey
Got it. Got it Thank you very much sir. Congrats on a good set. Thank you.
Mahesh Chandra Garg
Thank you.
Operator
The next question is from the line of Vinit Agarwal from Aditya Birla Money. Please go ahead.
Vinit Agarwal
Thank you. Good morning sir — good afternoon sir. Thank you for the opportunity and congratulations on good numbers. So I just have one question. Like, we have seen government capex this first half was only 37%, which was lower compared to last year. And in second quarter also, we have not seen that much improvement compared to what was expected. So how you are seeing on ground reality? Like will it improve further in the second half? And like what is that you are expecting?
Ram Agarwal
What we are looking — what I perceive as per the market report, and the infra sector, the projects, which were basically — which were basically not coming, not being announced after the election results, now they have started coming up. From the month of October, I see there is a demand in the government projects because March is coming and all the funds are to be spent.
So, there should be a normal activity in the government procurement, rather it should be an improved activity comparing to H1. This is my perception, and my team is working on this.
Vinit Agarwal
Okay. Okay. Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Yash from Unifi Capital. Please go ahead.
Yash Master
Hello? Yeah, hi. Last quarter, you mentioned that your auto capex will start contributing to revenue from Q2, and it is expected that capex will contribute to INR250 crores this year and next year INR500 crores. And now you are saying that the capacity will take another three to four months for commissioning. So can you give a clarity on that?
Ram Agarwal
Basically, the long, large dia [Phonetic] tube plant, for which we have invested, that plant is under trial right now. And from the last quarter, let’s say in January, we will start its commercial production. However, what you are asking ramping up the production, yes, definitely, it may take three, four months more, and from the first quarter of the next financial year, I hope it will be online because it’s a normal process to take three, four months, whenever a new product however from the approved source, but it takes a three, four months’ time to get approval because it’s a long cycle. So, that was the only purpose to telling, but it is online. Commercial production will start from this January ’25 and will be ramped up from April ’25.
Mahesh Chandra Garg
By the way, I must tell you, this is the first of its kind plant in India. There is no plant of this size. It is going to replace Chinese seamless piping products.
Yash Master
Got it. So, will this capex contribute to revenue this year or it will start from next year itself?
Mahesh Chandra Garg
Next year only.
Ram Agarwal
This year, from the fourth quarter, it will give a bit contribution. But from April ’25, it will give full contribution.
Yash Master
Okay. Okay.
Ram Agarwal
This year, only one quarter will be…
Yash Master
So without — yeah, so, this is not going to contribute to this year’s revenue, but still you expect to grow to 15%, 20% in next two quarters?
Ram Agarwal
Yes, we hope that we should almost reach INR4,000 crores this financial year. Last year, it was INR3,500 crore. And this year, we should reach almost INR4,000 crores, nearby INR4,000 crores.
Yash Master
Okay. And when will your EBITDA margins start to improve? Will it be only after the defense capex and the auto capex start contributing to revenue significantly?
Ram Agarwal
Yes, naturally, when this defense capex is completed and this is — this LDP plant is ramped up. So, there will be a real significant improvement in the EBITDA margins, and — which are most likely to — you can see in the next financial year.
Yash Master
And when is the Defense capex expected to start contributing to revenue?
Ram Agarwal
It should start from — trial run will commence from April ’25. So for the second quarter of next financial year, it will start contributing. I hope so.
Yash Master
Oh, second quarter. So, the potential is around INR300 crores, right?
Ram Agarwal
Almost. When it will reach its full capacity of 1,50,000 shells then it is likely to give INR300 crores to INR350 crores. However, it will again depend on the market prices and the conditions [Speech Overlap].
Yash Master
But according to the demand right now that you are seeing — the demand is very good, and you’re getting so many inquiries. So you should hope to achieve this number. Hello? Hello?
Ram Agarwal
Hello?
Yash Master
Yeah. Am I audible?
Ram Agarwal
Yeah, yeah, you are audible now.
Yash Master
Yeah. And this will — the Defense capex margin will be more than 20%, right?
Ram Agarwal
We hope so.
Yash Master
Yeah. Okay, that’s it. Thank you for answering my questions.
Operator
Thank you. [Operator Instructions] The next question is from the line of Chirag Mehta from Chirag Mehta and Co. Please go ahead.
Chirag Mehta
Yeah. Sir, congratulations on a great set of numbers. Now my only question is that what are the listing plans of that Goodluck Defense? And how much fund raise you may plan for that IPO?
Ram Agarwal
So, it will all depend on the ramping up of the production of the company. It should start from the — as I have told from the next financial year. As soon as the plant is stabilized, then we will start pondering over the issue. But definitely, it is on the — it is to be done, but the time is to be decided.
Chirag Mehta
But sir, approximately, we have some internal working, like what is a — just a thought process of how much funds should be raised from the market.
Ram Agarwal
You are not audible sir. Can you just repeat?
Chirag Mehta
Yeah, yeah. One minute. Hello? Now, I was just saying that if you have some internal figures regarding how much funds raised approximately you are planning like from the market?
Ram Agarwal
So right now, it has not been decided so far because now our total focus is on the erection of the plant, to start the plant. Once it gets started, then we will start working on it.
Operator
Sorry to interrupt, sir. The current participant has been disconnected. We’ll move on to the next question. It’s from the line of Disha, an Individual Investor. Please go ahead.
Disha
Hi, I have one more question. So is there any plan to increase exports going forward? And what kind of a revenue contribution shift in percentage terms to — like do we see?
Mahesh Chandra Garg
We are export thirst company. Our exports are nearly INR1,000 crores annually. However, in the first half, second quarter of this year, export took a hit due to geopolitical tensions on the sea routes, Red Sea problem. However, we — our emphasis is once again on export only, our new plant, which has been commissioned, the most of the products we go for export only. So we expect to get a good growth in export.
Disha
Okay. Okay. Thank you.
Operator
Thank you. As there are no further questions from the participants. I now hand the conference over to Mr. Ram Agarwal, Chief Executive Officer from Goodluck India, for their closing comments.
Ram Agarwal
I thank all of you for taking your time out to attend the earnings con call of Goodluck India Limited today. In case you have any further questions, any query, please feel free to reach out to our Investor Relations team. Thank you. Thanks once again.
Operator
[Operator Closing Remarks]