Godawari Power and Ispat Ltd (GPIL) in Q4 FY08 reported revenue of Rs2.6bn, a growth of 139.0% yoy on account on a rise in production and improved realization. On qoq basis, it registered a 21.1% growth on the back of lower ferro manganese and sponge iron sales. Sponge iron, billets and ferro manganese realizations on qoq basis rose 13.2%, 11.7% and 13.2% respectively.
For the full year, standalone revenue for the company registered a growth of 87.6%yoy to Rs8.3bn. The growth in revenue was account of a rise in production of sponge iron and billets. GPIL increased its sponge iron capacity to 0.5mtpa from 0.2mtpa, billet making to 0.4mtpa from 0.25mtpa and wire rod facility to 120,000tpa from 41,600tpa during the year. The new capacities are expected to show results from FY09.
OPM in Q4 FY08 expanded by 100bps to 18.6% from 17.6% witnessed in the same period last year. The company witnessed a bottomline growth of 139.9% yoy to Rs288.3mn in Q4FY08 from last year’s Rs120.2mn. Capacity additions of the sponge iron and billet making capacity has been completely ooperatinla during the quarter and will lead to robust volume growth for the company.