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Godawari Power drops after temporary suspension of mining operations

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Capital Market
Last Updated : Jun 22 2016 | 12:02 AM IST

Godawari Power & Ispat lost 0.85% to Rs 58.55 at 12:54 IST on BSE after the company said it has temporarily suspended mining operations at its Boria Tibu iron ore mines situated in Chhattisgarh due to labour unrest.

The announcement was made during market hours today, 21 June 2016.

Meanwhile, the S&P BSE Sensex was down 59 points or 0.22% at 26,807.92.

On BSE, so far 4,525 shares were traded in the counter as against average daily volume of 6,340 shares in the past one quarter. The stock was volatile. The stock lost as much as 2.62% at the day's low of Rs 57.50 so far during the day. The stock rose as much as 6.68% at the day's high of Rs 63 so far during the day. The stock had hit a 52-week low of Rs 48 on 25 February 2016. The stock had hit a 52-week high of Rs 88.25 on 23 June 2015. The stock had underperformed the market over the past one month till 20 June 2016, sliding 8.59% compared with Sensex's 6.19% rise. The scrip had, however, outperformed the market in past one quarter, surging 7.76% as against Sensex's 7.67% rise.

The small-cap company has equity capital of Rs 32.76 crore. Face value per share is Rs 10.

The annual rated capacity at its Boria Tibu iron ore mines is 7.05 lakh tonnes per annum (TPA) as per approved mining plan, Godawari Power & Ispat said. However, mining operations in these mines were started in the last financial year with very low volume and mines were partially under development stage and therefore, there is no major financial impact on the performance of the company since the contribution from mines in the profitability of the company was negligible till now, Godawari Power said.

On consolidated basis, Godawari Power & Ispat reported net loss of Rs 48.73 crore in Q4 March 2016, higher than net loss of Rs 16.75 crore in Q4 March 2015. Net sales declined 43% to Rs 340.68 crore in Q4 March 2016 over Q4 March 2015.

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Godawari Power & Ispat is a flagship company of Raipur-based Hira Group of Industries having dominant presence in the long product segment of the steel industry. The company is an end-to-end manufacturer of mild steel wires.

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First Published: Jun 21 2016 | 12:55 PM IST

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