Godawari Power & Ispat Limited (GPIL) has reported a stable performance for the second quarter, maintaining strong margins despite softer realizations. The company has also unveiled significant expansion plans across its operations.

Financial Highlights

• Revenue remained stable year-over-year
• EBITDA margin: 22%
• PAT (Profit After Tax) margin: 14%
• Pellet sales surged by 71% compared to the same quarter last year

Operational Performance

• Iron ore mining production increased by 29%
• Pellet production rose by 31%
• Value-added steel products production grew by 5%

Expansion Plans

Iron Ore Mining Capacity

• Current capacity: 2.35 million tons per annum
• Planned expansion: 6 million tons per annum
• Public hearing for environmental approval completed
• Final environmental approval expected by December

Pellet Plant Expansion

• New capacity: 2 million tons
• Commissioning target: November
• Pre-commissioning trials underway

Integrated Steel Plant and CRM Complex

• Land acquisition completed: 452 acres secured
• Cold Rolling Mill (CRM) complex: 0.7 million tons capacity
• Project cost for CRM: INR 900 crores
• Financing: INR 600 crores through debt, remainder from internal accruals

Battery Energy Storage System (BESS)

• Planned capacity: 10 gigawatt
• Location: Maharashtra
• Land acquisition: 112 acres completed
• Project cost: INR 700 crores
• Financing: 60% debt, 40% internal accruals

Solar Power Capacity

• Additional 250 megawatts approved
• Total planned capacity: 375 megawatts (including previously announced 125 megawatts)
• Expected commissioning: Q4

Market Outlook

• Global iron ore prices expected to remain in the $90-$105 range for the calendar year
• Domestic iron ore prices (NMDC 64 AC fines) range-bound between INR 4,500 to INR 5,500 per ton
• Pellet prices stable around INR 8,500 to INR 10,000 per ton
• Indian steel demand forecast: 9% growth

GPIL's Executive Director, Mr. Dinesh Gandhi, commented on the results: "H1 has been a period of consistent performance with strong operational progress. Revenue remained stable, supported by higher pellet and galvanized product volumes, while EBITDA and PAT margins stood healthy at 22% and 14%, respectively, despite soft realization across the product range."

The company's focus on expanding its mining and pellet capacities, strengthening downstream capabilities, and integrating renewable energy sources positions it well for future growth. With a solid net cash position and a strategic capex pipeline, GPIL aims to capture emerging opportunities and deliver sustainable value to its stakeholders.

Godawari Power And Ispat Limited (GPIL) has successfully raised ₹124.95 crore through the issuance of preference shares to fund the expansion of its subsidiary's battery project. The capital infusion is earmarked for Godawari New Energy Private Limited (GNEPL), a wholly-owned subsidiary of GPIL, to support the development of a 10 GWh battery energy storage system (BESS) project.

Funding Details and Project Scope

The funding was secured through the allotment of 12,49,50,000 non-cumulative, optionally convertible, redeemable preference shares, each with a face value of ₹10. This strategic investment underscores GPIL's commitment to expanding its footprint in the energy storage sector, a crucial component of India's renewable energy infrastructure.

Project Specifications

Financial Implications

GPIL has already infused ₹175 crore into GNEPL, which has been utilized for land acquisition and other project-related expenses. This recent preference share issuance of ₹124.95 crore further solidifies GPIL's investment in the project.

Strategic Importance

The BESS project represents a significant step for Godawari Power And Ispat in diversifying its energy portfolio and aligning with India's growing focus on renewable energy and energy storage solutions. As the country aims to increase its renewable energy capacity, efficient energy storage systems become crucial for managing intermittent power generation from sources like solar and wind.

Market Position and Future Outlook

While the BESS market in India is becoming increasingly competitive, with players like Adani and Ola Electric announcing similar projects, GPIL's management expressed confidence in their strategic position. The company aims to be among the top 5 BESS providers in India in terms of volume.

GPIL plans to focus on supplying BESS containers directly to developers, competing with both domestic and international suppliers, including those from China. The company is banking on potential government policies that may support domestic manufacturing in the BESS sector, similar to the support provided to the solar industry.

Project Timeline

The BESS project is scheduled for commissioning by April 2027 (FY 2028), aligning with the company's other strategic initiatives, including a cold rolling mill (CRM) project.

As India's energy landscape evolves, Godawari Power And Ispat's investment in battery energy storage technology positions the company to play a significant role in the country's transition to a more sustainable and resilient power infrastructure.