Godawari Power and Ispat: Q3FY20 Highlights

Godawari Power and Ispat Limited (GPIL) - one of the major pellet producers based in central India yesterday released its operational results for the third quarter of FY'20 ending Dec'19. SteelMint attended the investor conference call scheduled today. Below are the highlights:

1. The company has applied for pellet capacity expansion. Pellet capacity at Raipur will be increased from existing 2.1 MnT pa to 2.4 MnT. Thus additional 0.3 MnT is in pipeline.

2. High-grade pellet exports deals are delayed till towards Oct'20 amid awaited high grade pellet premium disclosure from Vale, which is expected to be out by end of Mar'20. The high grade pellet export price is expected to be above by around USD 15-20/MT over normal grade pellet.

3. The company has applied for approval of additional 2.2 MnT iron ore beneficiation plant, which will make the total capacity of 3.2 MnT.

4. Godawari is planning for sponge iron capacity expansion by 90,000 MT over and above existing capacity of 490,000 MT.

5. The company is also planning for an additional 400,000 MT Rolling mill capacity against current capacity of 200,000 MT.