Godawari Power & Ispat Q4FY25 Results: Healthy Balance Sheet with Strong Net Cash Position

On May 21, Godawari Power & Ispat shares will be on investors’ radar as the steel manufacturing company announced its financial results for Q4FY25 and FY25. Godawari Power & Ispat Ltd. (GPIL) has demonstrated operational strength, steady performance, and strategic execution across segments.

GPIL Q4 FY25 Financial Performance

During the fourth quarter of FY25, GPIL reported consolidated revenues of ₹1,468 crore, registering a sequential (QoQ) increase. However, revenues were marginally lower on a year-over-year (YoY) basis due to a decline in realisations. Notably, the company recorded a robust jump in profitability, with EBITDA rising to ₹318 crore and PAT reaching ₹221 crore. This improvement was driven by higher production and increased sales volumes across key segments, including Pellets, Galvanised Fabricated Products, and Rolled Products.

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GPIL FY25 Results Highlights

Over the last 5 years, GPIL has delivered consistent growth with a CAGR of 10% in revenue, 14% in EBITDA, and an impressive 36% in PAT, showcasing its resilient financial foundation. While consolidated revenues for FY25 remained largely flat in comparison to FY24, growth in production and sales volumes was offset by a decline in realisations, particularly in value-added products. As a result, both EBITDA and PAT registered a slight decline. Despite these headwinds, the company maintained healthy profitability margins with an EBITDA margin of 22% and a PAT margin of 15%. The balance sheet remains strong, supported by a solid net cash position of ₹863 crore.

Operational Achievements and Strategic Updates

FY25 marked a milestone year for GPIL in terms of operational output. The company achieved record-high production in Sponge Iron, Steel Billets, Silico Manganese, and Power. It also exceeded its volume guidance targets for FY25, surpassing 100% of the committed output for most product categories. In recognition of its strong performance, the Board has declared a dividend of ₹1 per share.

GPIL Outlook

Looking ahead to FY26, GPIL has laid out ambitious volume guidance: 3 million tonnes each for iron ore mining and pellets, 0.594 million tonnes for sponge iron, and 0.5 million tonnes for steel billets. In a strategic win, GPIL has also received approval from the Power Grid Corporation of India Ltd (PGCIL) to supply steel billets for manufacturing applications, further validating its product quality and market relevance.

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