Godawari Power and Ispat Ltd's Q2 Profit Plummets 38% as Revenue Declines

27 Oct 2024 , 06:14 PM

Godawari Power and Ispat Ltd (GPIL) reported a 38.1% year-on-year (YoY) decline in net profit for Q2 FY24, totaling ₹159.1 Crore compared to ₹256.9 Crore in Q2 FY23. Revenue from operations also fell by 1.8%, amounting to ₹1,267.6 Crore, down from ₹1,291 Crore in the same quarter of the previous fiscal year.

Godawari Power and Ispat Ltd shares has witnessed a total of 42% in the last one year, and 12% since the beginning of the year.

The operating EBITDA experienced a significant decline of 31.7%, reaching ₹246.7 Crore, down from ₹361.4 Crore year-on-year. The EBITDA margin contracted to 19.5% in the reporting quarter, compared to 28% in Q2 FY23.

Executive Director Abhishek Agrawal indicated that subdued market conditions contributed to the decline in realizations during the second quarter.

He expects an improvement in pellet prices for Q3 FY24. Over the past six months, GPIL has not engaged in exports, citing more favorable pricing in domestic markets.

Agrawal also confirmed there have been no imports from China currently, indicating a strategic focus on domestic operations. GPIL remains committed to adjusting its strategies in response to market dynamics to enhance profitability.