Godawari Power jumps 5%, hits new high on strong Q1 results

In past three months, the stock has gained 106%, as compared to a 4.8% rise in the S&P BSE Sensex

Shares of Godawari Power & Ispat were locked in the upper circuit of 5 per cent at Rs 1,777.65, also its new high, on the BSE in intra-day trade on Wednesday after reporting strong earnings for the quarter ended June 2021 (Q1FY22).

The company reported an over 16-fold year-on-year (YoY) jump in its standalone net profit at Rs 403 crore, on the back of healthy operational performance. It had reported a profit of Rs 25 crore in the year-ago quarter.

In Q1FY22, revenue from operations grew 96 per cent YoY at Rs 1,126 crore against Rs 574 crore in the corresponding quarter of the previous fiscal. The company recorded its highest-ever quarterly export turnover of Rs 639 crore during the quarter. It has reported the highest ever iron ore production of 559 kmt and the highest ever steel billets production of 115 kmt.

Ebitda (earnings before interest, taxes, depreciation, and amortization) was up 354 per cent YoY at Rs 573 crore. Ebitda margins improved to 50.9 per cent from 16.9 per cent in Q1FY21 and 37.9 per cent in Q4FY21.

The company said its long term debt is fully repaid in standalone business. While on consolidated debt/equity reduced to 0.15x as on date from the peak of 2.75x in FY17. The company achieved 95 per cent capacity utilisation across key product categories and enhanced iron ore production capacity. The company has also undertaken low cost debottlenecking in pellets, sponge iron, billets and beneficiation plant.

In the past three months, the stock of Godawari Power has gained 106 per cent, as compared to a 4.8 per cent rise in the S&P BSE Sensex. While, in the past one year, it has zoomed 955 per cent, as against a 35.5 per cent rally in the benchmark index.