Godawari Power & Ispat (GPIL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong YoY growth: revenue up 12% to ₹1,342 crore, EBITDA up 33%, and PAT up 24%, driven by higher production, cost reductions, and capacity expansions.

• Production and sales volumes increased across all key product lines, notably pellets (up 24% production, 49% sales YoY), steel billets, HB wires, and ferro alloys.

• Operational efficiency gains and cost reductions drove margin expansion despite lower finished steel realizations.

• Completed share buyback, special 25% dividend, and share split to reward shareholders for the 25th anniversary.

• Net profit after tax for Q1 FY25 was ₹286.89 crore, up from ₹230.88 crore in Q1 FY24.

Financial highlights

• Q1 FY25 consolidated revenue: ₹1,342 crore (+12% YoY); EBITDA: ₹408 crore (+33% YoY); PAT: ₹287 crore (+24% YoY); EBITDA margin improved to 30% from 23% YoY.

• Net cash position of ₹1,261 crore as of June 30, 2024; zero net debt.

• EPS (diluted) for Q1 FY25: ₹23 (consolidated), ₹21 (standalone); basic EPS at ₹22.97.

• Total income for Q1 FY25 was ₹1,372.42 crore; total expenses at ₹987.30 crore.

• Net worth: ₹4,554 crore (FY24); paid-up equity share capital at ₹62.36 crore.

Outlook and guidance

• On track to meet annual volume guidance; pellet plant expansion to 4.7 million tons expected by June 2026.

• FY25 production guidance: iron ore mining 3.0 MnT, pellets 2.44–2.45 MnT, sponge iron 0.6 MnT, steel billets 0.5 MnT, ferro alloys 0.113 MnT, rolled products 0.325 MnT.

• Mining capacity expansion approvals anticipated by December 2024, with synchronized ramp-up of mining, beneficiation, and pellet operations.

• Capex plans to double mining, pellet, and steel capacities by FY26 remain on schedule.

• Results reviewed and approved by the Audit Committee and Board on 6th & 7th August 2024.