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

Executive summary

• Achieved consolidated Q2 FY25 revenue of ₹1,268 crore and PAT of ₹159 crore, despite annual pellet plant shutdown, lower realizations, and challenging market conditions.

• H1 FY25 revenue stable at ₹2,610 crore; EBITDA and PAT (excluding exceptional items) dropped 2% and 5% YoY to ₹654 crore and ₹445 crore, with EBITDA and PAT margins at 25% and 17%.

• Net cash balance sheet with zero net debt and ₹998 crore net cash as of H1 FY25.

• Ongoing capacity expansions in mining, pellets, and steel to drive future growth, with strong ESG focus.

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

Financial highlights

• Q2 revenue, EBITDA, and PAT were impacted by INR 65 crore loss from pellet plant shutdown and INR 60 crore from lower finished product realization.

• Q2FY25 consolidated revenue at ₹1,268 crore, down 2% YoY; PAT at ₹159 crore, down 38% YoY.

• Consolidated EBITDA for H1 FY25 was ₹678.91 crore; Q2FY25 EBITDA margin at 19% (vs 28% YoY); H1FY25 EBITDA margin at 25%.

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

• Sales volumes for sponge iron, steel billet, and wire increased significantly YoY; pellet realization up 5–7% YoY to ₹10,569 per ton.

Outlook and guidance

• FY25 iron ore production guidance revised to 2.3–2.35 million tons due to delayed mining approvals and heavy rains; expect approval by Q4 FY25.

• Pellet capacity expansion to 4.7 million tons on track for June/July 2025 commissioning; over 50% construction completed.

• Greenfield integrated steel plant (2 million tons) awaiting regulatory approvals, expected by December 2024.

• Additional 70 MW solar power plant planned; current 165 MW operational, supporting cost savings and decarbonization goals.

• Q3 expected to see normalized margins and improved demand post-Diwali; pellet and sponge iron realizations anticipated to be higher or stable.