Godawari Power & Ispat jumped 5.61% to Rs 804.30 after the company informed about the grant of environment clearance for expansion of iron ore pelletization plant from 2.7 million tonnes capacity (MTPA) to 4.7 MTPA.
The said clearance has been granted by the Ministry of Environment, Forest and Climate Change, Government of India.
"The entire project cost of expansion shall be met out of internal accruals of the company and the commercial operation of the expansion program is expected to be commissioned in Q1 FY26, Godawari Power said in a statement.
The company has also announced its earnings for the quarter ended on 31 December 2023.
Godawari Power & Ispat has reported 79% jump in consolidated net profit to Rs 229 crore despite a 11% fall in net sales to Rs 1,309 crore in Q3 FY24 as compared with Q3 FY23.
Total expenses dropped by 24% YoY to Rs 978 crore during the quarter. This was primarily on account of lower stock-in-trade purchases in Q3 FY24, which stood at Rs 0.18 crore. The stock-in-trade purchases in corresponding period last fiscal were Rs 220.07 crore.
Consequently, EBIDTA increased by 80% to Rs 331 crore in the third quarter from Rs 183 crore recorded in the same period last year. EBIDTA margin was 25% in Q3 FY24 as against 13% in Q3 FY23.
Profit before tax in Q3 FY24 stood at Rs 296 crore, up by 71% from Rs 174 crore in Q3 FY23.
The board of Godawari Power has approved the proposal for setting up of green field integrated steel plant with an enhanced capacity of 2 million tones from 1 million tones proposed earlier, at an estimated cost of Rs 6,000 crore.
The project is estimated to be completed within a period of 36 months, from the receipt of environmental clearance and other statutory approvals.
It will be funded mainly from internal accruals. The company is undertaking the said capex to meet the "robust and growing demand for steel product in domestic market.
Godawari Power & Ispat is the flagship arm of Chhattisgarh-based Hira Group of Industries. The company has two captive iron ore mines, pellet plant and a vertically integrated steel plant in Raipur. The steel plant manufactures sponge iron, billets, MS rounds, HB wires, ferro alloys and pre-fab structures.
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