Godawari Power and Ispat Limited (GPIL) – one of the largest steel producers based in central India has released its operational results for the second quarter of FY’20 ending Sep’19.
Key operational performance highlights in Q2 FY20-:
1) Pellet production up 6% in Q2 FY20: Company has produced 504,100 MT pellets in Q2 FY20, up by 6% against 476,700 MT in Q1 FY20. However, on yearly basis, output fell 2% compared to the same time frame last year at 5,12,050 MT (Q2 FY19). Pellet production from its ASL stood at 1,90,834 MT in Q2 FY20 (up 49% Y-o-Y).
2) Pellet sales up 12% Q-o-Q: Company sold 363,604 MT pellets in Q2 FY20, up 12% compared to 325,823 MT in Q1FY20. However, on yearly basis company’s pellet sales fell 5% as against 384,035 MT in Q2 FY19. Pellet sales from its ASL stood at 215,129 MT in Q2 FY20 (Up 67% on quarterly basis). Ex plant realization increased to INR 6,617 in Q2 FY20 against INR 6,353 in previous quarter.
3) Captive iron ore production down 32% for the quarter: Iron ore production from its captive mines stood at 307,286 MT for second quarter FY20, recorded 32% fall against 448,914 MT in Q1 FY20. On yearly premises, output increased marginally as compared to Q2FY19 at 305,207 MT.
4) Steel billet production up 4% Q-o-Q: Company’s Steel Billet production has increased to 79,290 MT in Q2 FY’20, up 4% compared to last quarter at 76,465 MT. On yearly basis, the company has increased production by 25% against 63,618 MT in Q2 FY19.
5) MS Rounds output up in Q2 FY20: Company’s MS Rounds production was 47,923 MT in Q2FY’20, up 2% compared to 46,914 MT in last quarter ending June’19. On yearly basis, the company’s production increased by 7% against Q2 FY19 at 44,911 MT.
6) HB Wire Production: Company’s HB wire production in the quarter ending Sep’19 (Q2 FY20) was up by 2% to 33,785 MT compared to 33,052 MT in last quarter. On yearly basis, the production fell slightly against Q2 FY19 at 34,419 MT.
Business Strategy for next quarter-
–Further value addition on steel billet through the manufacture of rolled product by commissioning the new rolling mill of 200,000 MT. Rolling mill consent to operate is awaited from state pollution control board which is expected to be received by Q4FY20. Expected savings of INR 1,000/MT on incremental production of rolled products.
–New product addition for the manufacture of fabricated galvanized which lead to further improve in operating profitability.
–Billet production increased through long term supply of power under PPA with Jagdamba.
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