Gallantt Ispat (GALLANTT) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue from operations rose to Rs 1,15,969.44 lakh and net profit to Rs 12,186.94 lakh; EBITDA was Rs 215.75 crore, supported by volume growth and cost efficiencies.

• Strong demand and cost reduction were cited as supports for sustaining operating and financial performance.

Financial highlights

• Revenue from operations was Rs 1,15,969.44 lakh, versus Rs 1,03,617.41 lakh in Q1 FY24 and Rs 1,17,738.95 lakh in Q4 FY24.

• EBITDA was Rs 215.75 crore, versus Rs 71.94 crore in Q1 FY24; PAT was Rs 12,186.94 lakh, versus Rs 3,070.67 lakh YoY and Rs 9,539.39 lakh in Q4 FY24.

• Profit before tax was Rs 17,933.97 lakh, compared with Rs 4,114.00 lakh in Q1 FY24 and Rs 14,527.40 lakh in Q4 FY24.

• Total income was Rs 1,16,084.67 lakh and total expenses were Rs 98,150.70 lakh.

Outlook and guidance

• FY25 EBITDA margin target is 13%, up from 11% in FY24 and 9% in FY23; guidance cites 200 bps expansion in FY25.

• FY26 revenue target is ~Rs 5,000 crore, +/-5%, supported by capacity utilization targeted above 90%.

• Efficiency initiatives target increasing utilization from 80% to 95%; the pellet plant and railway rake benefits are expected to contribute through FY25.

• A 1,65,000 MTPA DRI unit at Gorakhpur is expected by December 2024; a 30-ton-per-heat furnace is expected to improve production capability by 10%.