GPIL reports revenue of Rs 3,322 crore in FY 19 due to 31 pc growth in production

Mumbai (Maharashtra) [India], May 1 (ANI): Godawari Power and Ispat Ltd (GPIL) said on Wednesday that higher production led to 31 per cent growth in its consolidated revenue at Rs 3,322 crore in 2018-19 as compared to the previous year.
At the same time, EBITDA (earnings before interest, tax, depreciation, and amortisation) too moved up 31 per cent at Rs 795 crore. The profit after tax increased 21 per cent to Rs 261 crore, it said in a presentation for analysts and investors.
During the year, GPIL reported highest-ever production of pellets at 19.3 lakh tonnes (up 5 per cent y-o-y), steel billets at 2.98 lakh tonnes (up 51 per cent), mild steel rounds at 1.82 lakh tonnes (up 28 per cent) and hard black wire at 1.34 lakh tonnes (up 15 per cent).
The flagship company of Raipur-based Hira Group having a dominant presence in long product segment of the steel industry said billets production is expected to go over 90 per cent in the current financial year 2019-20 while iron ore mining could jump 85 per cent by next fiscal.
"The domestic steel demand is forecast to grow by 7 per cent in calendar 2019. Shortage of lumps in the domestic market is driving demand for iron ore pellets. Affordable housing and infrastructure projects will propel demand," said the company.
Pellet prices are expected to stay strong in India as there is an increased demand for high-grade ore from China on account of environmental concerns supply shortage of iron ore, it added. At the same time, there will be major domestic supply shortfall from March 2020 onwards as 288 mining leases lapse.
GPIL said it will drive sustainable growth with operational efficiencies, backward integration and value addition.
(ANI)