Gallantt Ispat (GALLANTT) Q4 23/24 earnings summary

Executive summary

• Q4 and FY24 profitability rose faster than revenue, supported by cost rationalisation, backward integration and operating efficiencies.

• Integrated steel operations include 950,000 TPA TMT capacity, a 792,000 TPA Gorakhpur pellet plant and a dealer network of over 2,700 across Uttar Pradesh and Gujarat.

Financial highlights

• FY24 consolidated revenue from operations was ₹422,711.75 lakh and profit ₹22,534.87 lakh, versus ₹405,670.32 lakh and ₹14,091.10 lakh in FY23; EBITDA was ₹455.04 crore versus ₹367.36 crore.

• Q4 FY24 consolidated revenue from operations was ₹117,738.95 lakh and profit ₹9,539.07 lakh, versus ₹109,438.61 lakh and ₹6,791.87 lakh in Q4 FY23; EBITDA was ₹186.91 crore versus ₹125.21 crore.

• Consolidated EPS was ₹9.34 in FY24 versus ₹5.84 in FY23; Q4 EPS was ₹3.95 versus ₹2.81.

• Lower selling prices, reflecting lower input costs, moderated revenue growth relative to EBITDA and PAT; production increased 9% YoY.

Outlook and guidance

• FY26 revenue target is ₹5,000 crore +/-5%, with capacity utilisation targeted to exceed 90%.

• FY25 EBITDA margin guidance is 13%, up 200 bps from FY24's 11%; FY23 margin was 9%.

• Capacity utilisation is targeted to rise from 80% to 95% through technological upgrades; full-year pellet plant and railway-rake benefits are expected in FY25.

• A 165,000 MTPA DRI kiln at Gorakhpur is expected by December 2024/FY25, at a stated cost of ₹125 crore.