Godawari Power & Ispat Ltd

About [ edit ]

Godawari Power & Ispat is mainly engaged in the business of Mining of Iron Ore and Manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys with generation of Electricity.

Key Points [ edit ]

Captive Iron Ore Mines:
Company has two capitve mines- Ari Dongri Mine & Boria Tibu Mine.
GPIL sources 85% of its iron ore needs captively from its mines for the production of steel.
Captive mining leads to huge raw material costs saving.
Subsidiary-ASL has to rely on merchant mines for its RM needs.

Capacity as of FY20: #
Iron Ore: 2.1 million tonne per annum
Iron Ore Pellet: 2.8 million tonne per annum (inclusive of ASL pellet capacity)
Sponge Iron: 0.5 million tonne per annum
Billet: 0.4 million tonne per annum
MS Rounds: 0.4 million tonne per annum
HB Wires: 0.15 million tonne per annum
Ferro Alloys: 16,500 tonne per annum
Power: 73 MW

Stake Sale in Subsidiary-Ardent Steel Ltd: #
GPIL has reduced its stake in ASL to 37.85%, from 76.34%, but will retain management control.
It will utilise the proceeds, of around 76.24 Cr (net of capital gain tax), towards debt reduction.

Environmental Clearance for expansion & modernization of existing facilities: #
This will increase forward integration and provide more capacity for beneficiation of iron ore.

MoU with the Government of Chhattisgarh: #
Cost of project is estimated at 1400 Cr for Raipur Region & 900 Cr for Bastar Region.
It will be implemented in phased manner mainly out of internal accruals.
The investment will be spread out over 4-5 years.

Power Subsidiary-Godawari Green Energy: #
Solar plant located at Jaisalmer, Rajasthan. The project was awarded under Jawaharlal Nehru National Solar Mission, Phase I of Govt. of India.
Operational since FY14, fixed price PPA with NTPC Vidyut Vyapar Nigam for 25 years at
12.20/unit. Solar plant is self sufficient to meet its debt obligation.

  • Market Cap 1,729 Cr.
  • Current Price 491
  • High / Low 560 / 80.5
  • Stock P/E 10.4
  • Book Value 373
  • Dividend Yield 0.00 %
  • ROCE 14.6 %
  • ROE 10.6 %
  • Face Value 10.0

Pros

  • Company has reduced debt.

Cons

  • Though the company is reporting repeated profits, it is not paying out dividend
  • Promoters have pledged 32.51% of their holding.

Peer comparison

Sector: Steel Industry: Steel - Medium / Small

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020
574 623 643 713 753 766 728 681 719 647 574 876
449 470 489 546 606 615 601 569 623 541 478 677
Operating Profit 124 153 154 167 147 151 127 112 96 105 96 200
OPM % 22% 25% 24% 23% 20% 20% 17% 16% 13% 16% 17% 23%
Other Income 0 -15 1 1 1 1 1 0 1 0 1 1
Interest 46 47 45 47 44 45 41 40 38 35 34 32
Depreciation 22 22 23 23 22 22 23 23 23 22 24 25
Profit before tax 57 69 87 97 81 84 65 49 36 48 39 144
Tax % -13% -28% 36% 36% 38% 46% 38% 33% 41% 44% 37% 35%
Net Profit 64 88 56 62 50 46 41 33 21 27 25 94
EPS in Rs 18.22 25.08 15.76 17.55 14.19 13.02 11.50 9.32 5.99 7.65 6.99 26.73
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 TTM
1,034 776 934 1,745 1,910 1,537 1,926 1,535 1,544 2,111 2,855 2,758 2,816
919 652 740 1,496 1,669 1,325 1,663 1,385 1,381 1,678 2,235 2,318 2,318
Operating Profit 115 123 193 249 241 212 263 150 163 432 620 440 497
OPM % 11% 16% 21% 14% 13% 14% 14% 10% 11% 20% 22% 16% 18%
Other Income 10 3 3 3 10 24 16 12 14 3 3 3 3
Interest 34 32 60 101 92 115 145 163 177 185 182 154 139
Depreciation 26 32 47 51 52 67 66 73 78 89 91 92 94
Profit before tax 65 62 89 100 106 55 69 -75 -78 161 350 198 267
Tax % 12% 17% 20% 21% -17% -1% 10% 35% 1% -13% 39% 39%
Net Profit 57 51 71 79 124 56 62 -48 -77 182 213 121 167
EPS in Rs 20.43 18.31 22.44 24.86 37.90 17.08 18.96 -14.72 -21.98 51.64 60.52 34.45 47.36
Dividend Payout % 12% 14% 11% 10% 7% 15% 5% -0% -0% -0% -0% -0%
Compounded Sales Growth
10 Years:14%
5 Years:7%
3 Years:21%
TTM:-4%
Compounded Profit Growth
10 Years:9%
5 Years:15%
3 Years:52%
TTM:-1%
Stock Price CAGR
10 Years:10%
5 Years:53%
3 Years:-5%
1 Year:109%
Return on Equity
10 Years:10%
5 Years:9%
3 Years:18%
Last Year:11%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Sep 2020
28 28 32 32 33 33 33 32 34 34 34 34 34
Reserves 405 452 527 597 671 732 788 699 651 833 1,043 1,163 1,282
Borrowings 332 392 644 685 1,015 1,182 1,189 1,330 1,551 1,499 1,320 1,210 954
77 97 85 168 299 293 521 481 153 217 266 219 345
Total Liabilities 842 968 1,288 1,483 2,017 2,240 2,530 2,541 2,389 2,584 2,663 2,627 2,614
380 581 686 677 691 1,248 1,339 1,362 1,435 1,408 1,425 1,472 1,428
CWIP 171 60 37 136 412 65 114 165 59 89 45 53 62
Investments 45 72 212 212 253 289 294 276 280 281 348 346 346
246 255 354 457 662 638 782 738 615 806 846 756 777
Total Assets 842 968 1,288 1,483 2,017 2,240 2,530 2,541 2,389 2,584 2,663 2,627 2,614

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
159 101 82 193 144 233 365 159 -75 323 480 396
-187 -148 -219 -166 -366 -273 -219 -127 -5 -100 -125 -132
5 19 126 -20 224 39 -142 -21 76 -237 -361 -263
Net Cash Flow -22 -27 -11 8 1 -2 4 12 -5 -14 -7 1

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
ROCE % 14% 12% 14% 16% 13% 9% 11% 4% 5% 15% 22% 15%
Debtor Days 11 17 21 17 20 18 22 20 17 19 16 21
Inventory Turnover 5.59 3.82 3.05 5.23 5.40 3.96 4.66 3.36 3.55 4.32 3.94 3.60

Shareholding Pattern

Numbers in percentages

Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
67.36 67.36 67.36 67.36 67.36 67.36 67.36 67.36 67.42 67.50 67.50 67.50
1.65 4.51 5.94 5.72 5.71 5.06 4.47 3.78 3.13 0.31 0.03 0.65
0.02 0.00 0.07 0.09 0.17 0.20 0.24 0.18 0.18 0.23 0.17 0.48
30.97 28.12 26.62 26.83 26.75 27.38 27.93 28.68 29.27 31.96 32.29 31.37

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