Godawari Power inks 7-year regasified LNG supply pact with GAIL for upcoming pellet plant

Godawari Power and Ispat Ltd (GPIL) on Wednesday (December 11) said it has entered into a seven-year agreement with GAIL (India) Ltd for the supply of regasified liquefied natural gas (RLNG).

"We would like to inform you our company has entered into an agreement with GAIL (India) Ltd and exchanged the document at Raipur on 10.12.2024 for the supply of RLNG Gas for the company's upcoming pellet plant in the ordinary course of business for a period of 7 years," the company said in a regulatory filing.

Godawari Power and Ispat reported a 38.1% year-on-year (YoY) decline in net profit at ₹159.1 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, Godawari Power and Ispat posted a net profit of ₹256.9 crore.

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The company's revenue from operations dropped 1.8% to ₹1,267.6 crore against ₹1,291 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA slid 31.7% to ₹246.7 crore in the second quarter of this fiscal over ₹361.4 crore in Q2 of FY24.

The EBITDA margin stood at 19.5% in the reporting quarter versus 28% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The RLNG will support operations at Godawari Power's upcoming pellet plant. The agreement was formalised on December 10, 2024, at Raipur. GPIL, part of the Raipur-based Hira Group of Industries, manufactures long products of steel, mainly steel wire. It also produces sponge iron, billets, ferro-alloys, among others.

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Shares of Godawari Power and Ispat Limited ended at ₹234.60, up by ₹4.20, or 1.82%, on the BSE.