Godawari Power soars on regulatory nod for capacity expansion

Godawari Power & Ispat jumped 5.91% to Rs 595 after the company said it received environmental clearance to operate the enhanced capacity of iron ore pellet plant and set up manufacturing facilities in other divisions.

Chhattisgarh Environment Conservation Board, Raipur has accorded its approval for "Consent to Operate" enhanced capacity of iron ore pellet plant from 21,00,000 to 24,00,000 tons per annum with immediate effect.

The Board has also accorded its approval for expanding and modernizing the company's existing manufacturing facilities located at Siltara industrial Area, Raipur. Subsequently, the capacity of company's steel billets plant will be increased to 7,00,000 MTA per annum (from current 4,00,000 MTA per annum) and that of the the H.B. wire plant will be increased to 2,00,000 MTA per annum (from present 1,00,000 MTA per annum)

Further, the capacity of the iron ore beneficiation plant will also be increased to 32,84,000 MTA per annum from its existing capacity of 10,00,000 MTA per annum. The capex required for the above expansions will be invested out of internal accruals of the company.

Godawari Power & Ispat is an integrated steel manufacturer. The company is mainly engaged in generation of electricity, Iron ore mining and manufacturing of sponge iron, iron ore pellets, steel billets, ferro alloys and H.B. wire.

The company's consolidated net profit surged 442.79% to Rs 160.83 crore in Q3 FY21 from Rs 29.63 crore in Q3 FY20. Net sales during the quarter increased by 35.24% YoY to Rs 1131.65 crore.

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