Central India’s leading steelmaker, Godawari Power and Ispat Limited (GPIL), recorded the highest-ever production of iron ore and steel billets in Q1FY’22.
- Total iron ore production in Q1 FY’22 was at 0.56 million tonnes (mn t) against 0.48 mn t in Q4FY’21.
- The company’s total pellets production from the parent company stood at 0.602 mn t, lower by 4% q-o-q. Ardent Steel (ASL) contributed 0.18 mn t to the total pellets output.
- The company’s total pellets sales from parent GPIL stood at 0.38 mn t to which Ardent Steel (ASL) contributed 0.19 mn t.
- Total steel billets output for the quarter was at 0.12 mn t compared to 0.09 mn t in Q4FY’21.
Highlights of the investors’ call:
- Aiming at carbon-neutral growth: The company is to set up a 250 megawatt (MW) solar power plant to replace coal-based thermal capacity. This is going to be for complete captive use. Also, the company is to set up a 70-MW power plant for use at Hira ferro Alloys.
- Cost of captive iron ore output: Cost of the captive iron ore production in Q1FY’22 was at around INR 3,000/tonne (t) compared to INR 4,000/t in Q4FY’21. The entire additional iron ore production will be used for captive purposes. Previously, the company was dependent on the merchant market for sourcing 20% of its iron ore requirements.
- Pellets production ramped up: The company has ramped up pellets production capacity to 2.4 mn t against 2.1 mn t pa in FY’21. Domestic demand is on the weaker side due to the monsoon and uncertainties due to production cuts in China. But, since bigger players like Rio Tinto are unable to meet demand, queries for the material will remain at elevated levels this year too.
- Rise in costs of thermal coal: In Q4FY’21, average thermal coal prices were at INR 7,500/t which increased to INR 8,500/t in Q1FY’22. However, the company has enough supplies till Nov’21.
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