CMP Rs105, Target Rs154, Upside 46.3%
Godawari Power & Ispat (GPIL) reported a 24.6% qoq jump in its topline to Rs4.2bn on the back of higher production across all steel segments and higher realisations. This quarter numbers cannot be compared on a yoy due to merger of group companies. Production of iron ore dipped sharply due to extended rains and logistics issues. The management has indicated that the issues related to logistics have been resolved and it would achieve the optimum rate this quarter. Pellet production declined marginally to 150,150 tons from 152,700 tons in Q2 FY12, but continued to operate at +100% utilization rates. Sponge iron production declined by 5.2% qoq, but was higher by 1.7% yoy. Billet production during the quarter jumped 61% qoq and 60% yoy due to lower power realizations and higher realisations for steel products. Steel product realizations were higher on a qoq basis, whereas that of ferro alloys declined marginally on a qoq basis. Sales of sponge iron, ferro alloys and power declined on a qoq basis due to higher internal consumption for steel products. Pellet production under Ardent Steel declined due to a decline in supply of iron ore.
Quarterly operational data