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 1,820 Cr.
  • Current Price 517
  • High / Low 560 / 80.5
  • Stock P/E 7.91
  • Book Value 422
  • Dividend Yield 0.00 %
  • ROCE 16.2 %
  • ROE 14.5 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Company has delivered good profit growth of 35.45% CAGR over last 5 years

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

Consolidated Figures in Rs. Crores / View Standalone

Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020
672 743 720 804 903 894 834 828 837 787 711 967
503 536 536 600 689 707 659 662 708 634 554 732
Operating Profit 169 207 184 204 214 188 175 166 129 153 158 234
OPM % 25% 28% 26% 25% 24% 21% 21% 20% 15% 19% 22% 24%
Other Income 0 -15 1 1 1 3 1 1 4 -10 1 1
Interest 65 66 63 65 62 63 56 55 52 50 47 43
Depreciation 33 33 33 34 33 33 33 35 33 35 36 36
Profit before tax 71 93 88 107 120 95 87 77 47 58 77 156
Tax % -3% -10% 36% 36% 39% 38% 35% 32% 36% 41% 34% 33%
Net Profit 72 101 58 67 68 59 54 49 30 33 46 104
EPS in Rs 20.46 28.53 16.48 18.90 19.32 16.85 15.44 14.02 8.41 9.47 13.19 29.55
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

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
1,091 822 1,118 2,059 2,355 2,113 2,384 1,976 1,799 2,506 3,294 3,270 3,302
968 691 883 1,763 2,024 1,766 2,026 1,759 1,508 1,909 2,505 2,647 2,628
Operating Profit 123 131 235 296 331 347 358 217 291 597 790 623 674
OPM % 11% 16% 21% 14% 14% 16% 15% 11% 16% 24% 24% 19% 20%
Other Income 11 4 13 11 15 16 60 14 16 6 9 -1 -4
Interest 36 34 73 130 121 165 224 252 259 263 253 212 191
Depreciation 28 34 55 68 71 105 118 126 120 132 133 137 140
Profit before tax 70 67 119 110 154 92 77 -147 -73 208 414 273 337
Tax % 12% 16% 17% 20% -3% 24% 8% 32% -1% -3% 37% 35%
Net Profit 62 57 86 84 149 58 66 -89 -75 208 252 167 214
EPS in Rs 22.20 20.39 27.04 26.54 45.43 17.66 20.21 -27.07 -21.15 58.93 71.55 47.33 60.62
Dividend Payout % 11% 12% 9% 9% 6% 14% 5% 0% 0% 0% 0% 0%
Compounded Sales Growth
10 Years:15%
5 Years:7%
3 Years:22%
TTM:-5%
Compounded Profit Growth
10 Years:12%
5 Years:35%
3 Years:64%
TTM:-6%
Stock Price CAGR
10 Years:11%
5 Years:55%
3 Years:-2%
1 Year:114%
Return on Equity
10 Years:11%
5 Years:10%
3 Years:21%
Last Year:15%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

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
27 27 32 32 33 33 33 32 34 34 64 34 34
Reserves 419 471 573 646 745 831 892 763 663 889 1,135 1,291 1,453
Borrowings 355 518 765 961 1,684 2,084 2,038 2,007 2,214 2,124 1,856 1,697 1,370
89 112 323 376 655 566 786 613 342 405 486 459 583
Total Liabilities 890 1,128 1,693 2,015 3,116 3,514 3,748 3,415 3,253 3,452 3,511 3,482 3,439
411 634 971 1,051 1,070 2,328 2,403 2,289 2,326 2,264 2,249 2,269 2,204
CWIP 202 194 94 285 1,190 137 187 238 136 171 130 137 148
Investments 10 12 22 18 18 51 67 114 108 131 132 123 138
267 288 606 662 839 998 1,091 774 683 885 1,000 951 949
Total Assets 890 1,128 1,693 2,015 3,116 3,514 3,748 3,415 3,253 3,452 3,511 3,482 3,439

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
155 101 45 305 321 56 551 377 15 451 550 551
-200 -250 -250 -371 -982 -276 -268 -6 14 -121 -66 -150
25 125 312 -11 644 213 -279 -374 -21 -354 -491 -401
Net Cash Flow -20 -24 106 -76 -18 -7 4 -2 8 -24 -7 -0

Ratios

Consolidated Figures in Rs. Crores / View Standalone

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% 11% 16% 16% 13% 10% 9% 4% 6% 16% 22% 16%
Debtor Days 10 17 22 17 17 18 24 18 23 23 17 20
Inventory Turnover 5.55 3.72 3.09 4.76 4.97 3.81 4.06 3.58 3.49 4.27 3.93 3.51

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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