The shares of this Sponge Iron manufacturer gained up to 4 percent after the company announced the capacity expansion of the steel melting shop from 4,00,000 Metric Tons per annum to 5,25,000 Metric Tons per annum.
With a market capitalization of Rs 9,584.80 crores, the shares of Godawari Power & Ispat Ltd were trading at Rs 705.05 per share, increasing around 2.46 percent compared to the previous closing price of Rs 688.10 per share.
According to the company filing, Godawari Power & Ispat Ltd announced the capacity expansion of the steel melting shop from 4,00,000 Metric Tons per annum to 5,25,000 Metric Tons per annum at the existing plant site at Siltara Industrial area, Raipur, Chhattisgarh.
The board of the company authorizes the operation of the Steel Bill manufacturing facility at a higher capacity. The company will consume all of the sponge iron it produces internally, adding value and improving operating margins.
Additionally, the recently commissioned higher efficiency power generating turbine will provide the extra power needed to run the SMS plant’s higher capacity.
The company, whose captive iron ore mines and manufacturing facilities are strategically located in Chhattisgarh, offers a wide range of products, from iron ore pellets to sponge iron, steel billets, wire rods, HB wire, ferroalloys, and galvanized fabricated goods.
Looking into Godawari Power & Ispat Ltd’s performance, revenue decreased by 1.2 percent from Rs 1,307 Crore in Q2FY23 to Rs 1,291 Crore in Q2FY24. During the same duration, net profit increased by 52 percent from Rs 169 crore to Rs 257 crore.
The company has decided to set up additional pellet capacity to increase annual pellet production from 2.7 million tonnes to 5.7 million tonnes. The company has decided to build a new steel plant with a one million-ton annual capacity. As a result, integrated steel capacity will reach 1.5 million tons annually.
Godawari Power & Ispat is primarily involved in the mining and manufacturing of iron ore pellets, sponge iron, steel billets, wire rods, H.B. wire, and ferroalloys while producing electricity.
Written by:- Abhishek Singh
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