Godawari Power & Ispat Shares in Focus: Released Q2 & H1 FY25 Results

Godawari Power & Ispat Ltd, a fully integrated player in the steel industry, has released its financial results for the second quarter and the first half of FY25.

Q2 FY25 Key Financial Highlights  

During Q2 FY25, the company experienced a decline in consolidated revenues from operations, EBITDA, and profit after tax (PAT) compared to both the previous quarter and the same quarter last year. This downturn was primarily attributed to reduced production volumes of iron ore pellets, lower sales realisations for finished products—including sponge iron, steel billets, MS rounds, and HB wires—and increased operational costs associated with the maintenance of the pellet plant.

1H FY25 Key Financial Highlights  

In the first half of FY25, consolidated revenues from operations remained stable when compared to H1 FY24, reflecting consistent operational performance. However, the revenue growth from higher volumes of value-added products was offset by lower realisations for these products, including sponge iron, billets, and rolled products. Consequently, both consolidated EBITDA and PAT experienced declines due to these realisations. Despite the challenges, the company maintains a robust balance sheet, reporting a net cash balance of ₹998 crore and strong cash flow from operations amounting to ₹564 crore.

Mr. B.L. Agrawal, Chairman and Managing Director, commenting on results said that “GPIL has maintained steady performance on a half-yearly basis, even amidst lower realizations. On a 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.” 

He further added, “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.” 

On October 28, 2024, Godawari Power & Ispat’s share price opened at ₹160.15 and touched the day low of ₹160.15 at 09:30 AM, reflecting a fall of ~4.29% from the previous close.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.