Godawari Power & Ispat (GPIL) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 performance was impacted by annual maintenance shutdown of the pellet plant, lower realization of sponge iron and finished steel, and challenging market conditions, but H1 FY25 showed consistent results.

• Backward-integrated steel producer with captive iron ore mines, diversified product portfolio, and strong ESG focus.

• Five-year CAGR: Revenue 10%, EBITDA 11%, PAT 30%.

• Net cash balance sheet with zero net debt and ₹998 Cr net cash.

• Ongoing capacity expansions in mining, pellets, and steel to drive future growth.

Financial highlights

• Q2 FY25 consolidated revenue was ₹1,268 Cr, EBITDA ₹247 Cr, and PAT ₹159 Cr, with a production loss of 150,000 tons due to shutdown and lower product realizations.

• H1 FY25 revenue remained stable at ₹2,610 Cr, with EBITDA and PAT (excluding exceptional items) dropping 2% and 5% YoY to ₹654 Cr and ₹445 Cr, respectively.

• Q2 revenue, EBITDA, and PAT were negatively impacted by ₹65 Cr due to pellet plant shutdown and ₹60 Cr from lower product realizations.

• Net cash position at ₹998 Cr; cash flow from operations at ₹564 Cr for H1.

• Sales volume for sponge iron, steel billet, and wire increased 56%, 20%, and 39% YoY, respectively.

Outlook and guidance

• Iron ore mining and beneficiation capacity expansion approval delayed; now expected by Q4 FY25.

• Revised FY25 iron ore production guidance from 3 million tons to 2.3–2.35 million tons.

• Pellet capacity expansion to 4.7 million tons on schedule, commissioning expected by June-July 2025.

• Greenfield integrated steel plant approval expected by December 2024; construction to start post-approval.

• Q3 expected to see normalization of margins and improved demand post-Diwali.