India: Godawari Power and Ispat's pellet production falls q-o-q in Q1FY24; full-year guidance intact

One of central India's leading steelmakers, Godawari Power and Ispat Limited (GPIL), has announced its Q1 FY'24 (April-June, 2023) results.

Performance highlights-

• Pellet production stood at 523,950 t, a fall of 21% q-o-q compared to 662,200 t in Q4 FY'23 due to planned maintenance shutdown.
  
  
• Total pellet sales stood at 297,656 t, a decrease of 48% q-o-q compared to 573,278 t in the same period last year. Sales decreased due to captive consumption of pellets in production of sponge iron.
  
  
• Total iron ore production was recorded at 572,523 tonnes (t), largely stable q-o-q compared to 570,276 t in Q4 FY'23.
  
  
• Total steel billet output for the period under review rose sharply to 100,535 t compared with 47,635 t in Q4 FY'23.
  
  

Other highlights-

• Average pellet sales realisation edges up q-o-q: GPIL's average sales realisation stood at INR 10,200/t in Q1 FY'24, a marginal increase of 3% q-o-q from INR 9,883/t in Q4 FY'23.
  
  
• EBIDTA up q-o-q: The company's EBIDTA was recorded at INR 305 crore, up by 14% q-o-q as against INR 268 crore in Q4 FY'23.
  
  
• FY24 production guidance: The company has kept its production guidance unchanged for iron ore pellets at 2.6 mnt in FY'24.
  
  
• Positive response for high-grade pellets: GPIL recently launched its new product, i.e., Fe 66% pellets which is getting positive response and better realisations than Fe 65% pellets. Currently, the pellet maker is selling the particular grade only in the domestic market, however, the company is planning to explore the export market in the future.
  
  
• Expanding solar power capacity: A 30 megawatt (MW) solar power plant (previously 25 MW) will be installed in Khairagarh. The land acquisition and procurement of solar modules have been completed, construction activities have commenced, and the commissioning of the project is expected by Q2 FY'24. Another plant's capacity has been reduced to 55 MW (earlier 60 MW) due to constraints in land acquisition. Out of 55 MW capacity, 30 MW already commenced operations on 29 March, 2023 while the balance 25 MW is expected to be commissioned by Q2 FY'24. Meanwhile, a 70 MW solar power plant at GPIL and one such 30 MW plant at Hira Ferro Alloys Ltd have been commissioned in the previous fiscal and have started contributing to coal savings.