GPIL: Net Profit Falls 37% in Q3 FY 2024-25

Godavari Power and Ispat Limited (GPIL), an Indian steel and pellet producer, reported a sharp fall in its consolidated net profit in the third quarter (October-December) of the current fiscal year 2024-25. For the quarter ending in October 2023, the company declared a net profit of INR 1,447.80 million (USD 16.73 million), indicating a significant drop of 36.85% YoY.

The company’s top line from operations dropped as well, with revenue of INR 12,976 million (approximately $150.01 million). It generated 847.4 million euros ($967 million) in gross revenue, reflecting a 0.86% year-on-year decline in a challenging market environment for the firm.

While profits and revenue have fallen, GPIL is keeping a positive long-term outlook on its performance. B L Agarwal, the chairman of the company, said that weak results were due to lower production of iron ore and pellets, in addition to lower sales realizations for finished products. They, however, assured the stakeholders that GPIL has been performing consistently for nine months despite these adversities.

We are facing lower realizations and production challenges but are hopeful to restore our pellet production and sale to normalcy in the near term heading to the last quarter of FY 2024-25,” Agarwal said.

They are working through these obstacles, and the company is planning to increase their pellet production and sales going forward. GPIL, which is focusing on its recovery, is looking forward to regaining the lost ground and returning to a robust growth plan in months to come.