Godawari Power & Ispat (GPIL) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated net sales rose 13.07% to ₹2,394.98 crore; EBITDA was ₹418.43 crore and PAT before minority interest was ₹70.73 crore. Net profit after minority interest and associate loss was ₹66.21 crore.

• Reported consolidated EBITDA included a ₹40.19 crore gain on investment sales; excluding that gain, EBITDA was ₹378.24 crore, with a 15.79% operating margin.

Financial highlights

• Standalone net sales grew 25.58% to ₹1,935.05 crore; EBITDA was ₹279.82 crore, PBT ₹69.12 crore and PAT ₹62.11 crore, versus ₹55.94 crore in FY14.

• Consolidated total income rose 15.07% to ₹2,455.20 crore; net sales increased from ₹2,118.05 crore, while PBT declined to ₹76.60 crore from ₹92.29 crore.

• Standalone finance costs increased to ₹144.88 crore from ₹114.51 crore, reflecting full-year interest on the pellet plant and higher working-capital use; depreciation was ₹65.82 crore.

Outlook and guidance

• Ari Dongri mine capacity expansion from 0.7 MTPA to 1.4 MTPA was expected to start production in FY16; captive mines were targeted to meet iron ore needs in 2–3 years.

• Steel melting and rolling modernization, with an investment outlay of ~₹150 crore, was expected to complete in H2 FY17, raising capacity to 400,000 tonnes annually.

• Improved infrastructure spending was expected to support steel demand, while imports were expected to continue pressuring prices and margins absent policy action.