Godawari Power and Ispat’s (GPIL) steel billet production rose by 9pc to 91,785mt in the December quarter (Q3) from 84,130mt the prior year, due mainly to long term power supply from Jagdamba Power.
Iron ore pellet production grew by 33pc to 5,77,350mt from 4,35,300mt.
Sponge iron production rose by 10pc to 1,24,572mt in Q3 from 1,12,759mt in the prior year, the company announced on Wednesday.
Iron ore pellet production at the company’s subsidiary Ardent Steel grew by 4pc to 1,93,175mt, from 1,86,518mt in the prior year.
Sales volumes in Q3, however, dropped. Steel billet sales volumes fell by 20pc to 26,465mt, down from 32,988mt the prior year. Sponge iron sales volumes fell by 19pc to 15,969mt in the December quarter and iron ore pellets fell by 23pc to 5,742mt from 7,502mt sold in the prior year quarter. Sales volumes of most Godawari products have fallen, despite a rise in production.
The company’s net sales fell by 7pc to Rs8,360mn in the December quarter from the prior year. Operating income fell by 38pc to Rs1,323mn in the October-December quarter from the prior year. The company’s net profit fell by 56pc to Rs8.41mn from 19.32mn reported in the year prior. The company has planned a capex of Rs1bn, including maintenance.
Capacity expansion
GPIL has commissioned and conducted trial production of its rolling mills. The company expects Rs1,000/mt saving on incremental production of rolled products. The plant is expected to be operational in Q1.
Godawari Ispat’s capacity utilisation
| Asset | Capacity (mn mt) | Utilization (%) |
| Steel Billets | 0.4mn mt | 75 |
| Sponge Iron | 0.5mn mt | 93 |
| MS Rounds | 0.2mn mt | 85 |
| Ferro Alloys | 16,500 mt | 64 |
| Iron Ore Pellets | 2.7mn mt | 92 |
| Iron Ore Mining | 2.1mn mt | 77 |