Team News Riveting
Raipur, October 27
Godawari Power and Ispat Limited (GPIL), the flagship entity of Chhattisgarh-based Hira Group, has recorded fall in the revenue and profit in the first half (H1) and second quarter (Q2) of the financial year 2024-25 (FY25) ended September 30, 2024.
The consolidated revenues from operations, EBITDA (earnings before interest, taxes, depreciation, and amortization) and PAT (profit after tax) decreased on both quarter-to-quarter (QoQ) and year-on-year (YoY) basis, GPIL said in a regulatory filing. The net sales of the company in the first six months of the fiscal did not see any change at Rs 2,610 crore.
The EBITDA fell 2 percent to Rs 654 crore while the PAT attributable to owners registered a fall of 9 per cent to Rs 446 crore in the H1 of the FY25. Similarly, the net sales during the Q2 dropped 2 per cent to Rs 1,268 crore YoY, the company said, adding that the PAT attributable to owners saw a decline of 38 per cent YoY to Rs 159 crore.
“The fall in Revenue and Profitability was on account of lower production volumes of iron ore pellets, fall in sales realization of finished products like sponge iron, steel billets, MS rounds, HB wires etc. and increase in other operating cost for maintenance of Pellet plant,” the company said.
The consolidated revenues from operations remained flat with H1FY24 levels due to consistent operational performance. The revenue from higher volumes of value-added products was offset with lower realization in the value-added products like sponge iron, billets, rolled products etc. The consolidated EBITDA and PAT showed a drop due to decrease in realizations of value-added products.
The GPIL said it had a healthy balance sheet with a net cash balance of Rs 998 crore and strong cash flow from operations of Rs 564 crore.
B L Agrawal, Chairman and Managing Director of Hira Group, commenting on results said that “GPIL has maintained steady performance on a half-yearly basis, even amidst lower realizations. On quarterly basis, our financial performance reflects the impact of lower production volumes for iron ore and pellets, reduced sales realizations for finished products as well as increased maintenance costs for the pellet plant. As we transition into the second half of FY25, we are optimistic about getting our production and sales of pellets back on track. Our solid net cash position, coupled with a strategic capex plan aimed at significantly expanding our capacities in iron ore mining, pellets, and integrated steel, sets a strong foundation for growth. Enhanced operational efficiencies and cost savings from solar power will further bolster our performance. Additionally, the advantages of our captive iron ore mines and the production of high-grade pellets, along with unwavering support from our stakeholders, position us for exceptional achievements in the years to come.”
Godawari Power & Ispat Limited is a fully integrated steel company that operates across the entire steel value chain. The Company’s operations span from iron ore extraction from two captive iron ore mines to the production of iron ore pellets and high-value steel products. It is a prominent player in the Indian steel industry, renowned for its integrated steel plants and robust manufacturing capabilities. With a strong focus on efficiency and sustainability, the company has carved a niche for itself in the market. Leveraging state-of-the-art technology and a skilled workforce, Godawari Power and Ispat Limited consistently delivers high-quality steel products that meet the diverse needs of its customers across various sectors.
The Company has scaled its business through consistent reinvestments across market cycles. The Company has been responsible, committed to forward-looking investments in clean technologies and resources. The Company has deepened its sustainability through progressive debt repayments and business integration. The result is that the Company is a respected value-creator positioned to take its business to the next orbit. Through its relentless pursuit of excellence and dedication to sustainable growth, Godawari Power and Ispat Limited continues to strengthen its position as a leading player in the Indian steel industry.
