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Godawari Power Q4 Review - Export Tax Set To Spoil The Pellet Party: Reliance Securities

Godawari Power Q4 Review - Export Tax Set To Spoil The Pellet Party: Reliance Securities

<div class="paragraphs"><p>Godawari Power &amp; Ispat Ltd.'s iron ore pelletization plant. (Source: Company website)</p></div>
Godawari Power & Ispat Ltd.'s iron ore pelletization plant. (Source: Company website)

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Reliance Securities Report

Godawari Power and Ispat Ltd.’s Q4 FY22 standalone Ebitda and margins were lower than our estimate, due to the lower sponge iron production that was marred by a delay in securing environmental clearance for the plant.

However, the pellet division continued to perform well during the quarter under review. Iron ore pellet sales at 508,187 tonnes increased 14.9% YoY and 19.1% QoQ, ahead of our estimate of 485,000 tonnes.

Pellet realisation at Rs 11,905/ tonne rose by 2% YoY and 9.9% QoQ and was Rs 381/tonne lower than our estimate.

Godawari Power's revenue at Rs 13 billion increased by 5.1% YoY but fell 7.2% QoQ, against our estimate of Rs 14.98 billion.

Click on the attachment to read the full report:

Reliance Securities Godawari Power Q4FY22 Result Update.pdf

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