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

Executive summary

• Strong Q1 FY25 performance with revenue up 12% YoY to ₹1,342.48 crore, EBITDA up 33% YoY, and PAT up 24% YoY, driven by cost reductions, capacity expansions, and increased production and sales volumes across key product lines.

• Net profit after tax for Q1 FY25 was ₹286.89 crore, up from ₹230.88 crore YoY, and the company maintains a net cash balance of ₹1,261 crore.

• Completed share buyback, declared a special 25% dividend for the 25th anniversary, and approved a share split from ₹5 to ₹1 face value, pending shareholder approval.

• Production volumes increased YoY across all regions, with captive iron ore and pellet production up 3% and 24% YoY, respectively; sales volumes for pellets up 49% YoY.

• Maintains a net cash balance sheet with zero net debt.

Financial highlights

• Q1 FY25 consolidated revenue: ₹1,342.48 crore (+12% YoY); EBITDA: ₹408 crore (+33% YoY); PAT: ₹286.89 crore (+24% YoY); EPS (diluted): ₹23, up 23% YoY.

• EBITDA margin improved to 30% from 23% YoY; standalone margin at 33% (up from 25% YoY).

• Net cash position as of June 30/Q1 FY25: ₹1,261 crore.

• Total expenses for Q1 FY25 were ₹987.30 crore, down from ₹1,261.34 crore in Q4 FY24.

• Paid-up equity share capital at ₹62.36 crore; reserves excluding revaluation reserve at ₹4,433.52 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 0.65 MnT, steel billets 0.50 MnT.

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

• CapEx plans on track: pellet capacity expansion, integrated steel plant, and solar power projects progressing as scheduled.

• Full-year pellet production guidance lowered to 2.45 million tons due to planned shutdowns.