Godawari Power & Ispat (GPIL) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated revenue reached Rs. 937.48 crore, up 70% YoY; consolidated PAT rose 82% to Rs. 98.65 crore, supported by higher volumes and stronger realizations.

• Phase II capacity additions began commercial production; captive iron ore development and pelletization projects underpin the next stage of integration and growth.

Financial highlights

• Consolidated sales were Rs. 935.67 crore vs. Rs. 550.87 crore; PBDIT was Rs. 169.77 crore vs. Rs. 87.23 crore, and PBT was Rs. 112.51 crore vs. Rs. 62.04 crore.

• Consolidated PAT was Rs. 98.65 crore vs. Rs. 54.15 crore; standalone PAT was Rs. 94.98 crore vs. Rs. 52.21 crore.

• Standalone gross turnover increased 87.64% to Rs. 956.90 crore; PBT rose 96% to Rs. 108.12 crore, with operating margin at 19.62% vs. 18.45%.

• FY08 consolidated cash from operations was Rs. 66.31 crore; investing activities used Rs. 73.98 crore and financing activities generated Rs. 58.63 crore.

Outlook and guidance

• FY09 volume growth guidance was 20–25%, with operating margins expected to remain at current levels; captive iron ore production could further improve margins once operational.

• Production volumes were expected to rise 15–20% as FY08 capacity additions moved toward optimum utilization.

• Plans target steel capacity of 1 million tonnes per year over the next three years, alongside captive power; timing and financing details were to follow project finalization.

• Captive iron ore mining was expected to start after forest approval; coal mining operations were projected to commence in FY11 after development and statutory clearances.