Godawari Power & ISPAT , a leading integrated steel manufacturer, has announced significant strategic moves and its Q1 financial results, showcasing the company's commitment to growth and operational efficiency.

Strategic Developments

The Board of Directors has approved several key initiatives:

1. Merger with Wholly-Owned Subsidiary: The company will amalgamate its wholly-owned subsidiary, Godawari Energy Limited (GEL), with itself. This move is expected to streamline operations and improve overall efficiency.

2. Cold Rolling Mill Project: A 0.7 MTPA Cold Rolling Mill (CRM) Project for manufacturing heavy structural steel will be set up at Sarora, Tilda, Chhattisgarh. The estimated project cost is Rs 900.00 crore, to be funded through a mix of debt (Rs 600.00 crore) and equity (Rs 300.00 crore).

3. Battery Energy Storage System Plant: Through its wholly-owned subsidiary Godawari New Energy Pvt Ltd (GNEPL), the company will establish a 10 GWh Battery Energy Storage System Plant. The project, estimated at Rs 700.00 crore, will be funded by 60% debt raised by GNEPL and 40% equity infusion from Godawari Power & ISPAT.

4. Investment in Education: An investment of Rs 7.94 crore in Godawari Education and Research Foundation was approved to maintain the company's 81% stake in the subsidiary.

5. Leadership Continuity: The Board has re-appointed Bajrang Lal Agrawal as Chairman-cum Managing Director for a further five-year term, subject to shareholder approval.

Q1 Financial Performance

Godawari Power & ISPAT reported consolidated financial results:

The company attributed the decline in revenue and profitability primarily to a drop in realizations. However, it maintained robust operational performance, supporting strong margins despite market challenges.

Operational Highlights

• Iron ore mining production faced delays due to pending mining plan renewal approvals.
• Production volumes of pellets and value-added steel products remained largely stable.
• Ferro alloys production and sales volumes increased by 15% quarter-on-quarter and 13% year-on-year.
• Operations at Boria Tibu mines resumed after receiving approval for an updated 5-year mining plan.
• The company secured approval from PGCIL for supplying steel billets to manufacturers of galvanized steel structures for transmission projects.

Future Outlook

With its strategic expansion plans and focus on diversification into energy storage solutions, Godawari Power & ISPAT is positioning itself for sustainable growth. The company's strong net cash position and ongoing investments in mining and pellet capacity expansion further reinforce its growth trajectory.

The 26th Annual General Meeting is scheduled for September 20, where shareholders will have the opportunity to approve these strategic initiatives.

As the company continues to navigate market challenges, its focus on operational efficiency, strategic expansions, and diversification into new energy sectors demonstrates its commitment to long-term value creation for stakeholders.

Godawari Power & ISPAT has announced ambitious expansion plans worth Rs 1,600 crores along with strong financial results for the quarter ended June 30. The company's board meeting on August 5 revealed several key decisions aimed at strengthening its market position and diversifying its operations.

Quarterly Financial Performance

GPIL reported a solid financial performance for Q1:

• Standalone net profit: Rs 200.50 crores
• Consolidated net profit: Rs 216.41 crores

Major Expansion Initiatives

The company unveiled two significant expansion projects:

1. Cold Rolling Mill Project:

   • Capacity: 0.7 MTPA
   • Location: Village Sarora, Tehsil Tilda, District Raipur, Chhattisgarh
   • Estimated cost: Rs 900.00 crores
   • Funding: Rs 600.00 crores debt and Rs 300.00 crores equity

2. Battery Energy Storage System Plant:

   • Capacity: 10 GWh
   • To be established through wholly-owned subsidiary Godawari New Energy Pvt Ltd (GNEPL)
   • Estimated cost: Rs 700.00 crores
   • Funding: 60% debt (to be raised by GNEPL) and 40% equity infusion by GPIL

Strategic Corporate Actions

1. Amalgamation: Approved scheme to merge wholly-owned subsidiary Godawari Energy Limited (GEL) with GPIL.

2. Investment in Education: Approved Rs 7.94 crores investment in Godawari Education and Research Foundation.

3. Leadership Continuity: Re-appointed Bajrang Lal Agrawal as Chairman-cum Managing Director for 5 years, subject to shareholder approval.

Annual General Meeting

The 26th Annual General Meeting is scheduled for September 20, to be held via video conferencing.

Market Implications

These expansion plans signify GPIL's commitment to growth in the steel sector and its entry into the emerging battery energy storage market. The Cold Rolling Mill project aims to capitalize on the robust demand for CR coil, color-coated steel, and zinc-aluminum coated products. Meanwhile, the Battery Energy Storage System Plant positions GPIL to play a significant role in India's growing renewable energy and energy storage sector.

The amalgamation of GEL with GPIL is expected to lead to more efficient utilization of capital and assets, creating a stronger base for future growth and maximizing shareholder value.

GPIL's strong quarterly results, coupled with these forward-looking initiatives, indicate the company's resilience and strategic vision for long-term growth in both traditional and emerging sectors.