Godawari Power and Ispat (GPIL), engaged in the business of manufacturing the trading of iron ore pellets, sponge iron, steel billets, hard bright wires and generation of power, reported a rise of 95.96% in consolidated net profit to Rs 1,037.6 million in the quarter ended September 2020 as against Rs 529.5 million during the previous quarter ended September 2019.
The company’s revenue from operations grew 16.71% to Rs 9,667.7million in the quarter ended September 2020 as against Rs 8,283.5 million during the previous quarter ended September 2019.
Total expenses grew 7.98% to Rs 8,119.2 million in the quarter ended September 2020 as against Rs.7,519.4 million in the same quarter last fiscal.
Godawari Power and Ispat EPS have increased to Rs 29.55 in September 2020 from Rs 14.02 in September 2019.
The Board approved the partial divestment of its equity interest in Ardent Steel (ASL) (a material subsidiary) by way of sale of 40,66,200 equity shares of Rs.10 each fully paid up held by the Company and 3,85,000 equity shares held by Hira Energy (a step down subsidiary) to Transtek Coal and Minerals Pvt. Ltd. (Strategic Investor) at a price of Rs 214 a share in accordance with the prevailing market conditions and in the long term best interest of the Company, subject to approval of the shareholders of the Company. The entire proceedings shall be utilised for debt reduction of the company.
Consequent upon aforesaid divestment, GPIL's shareholding in ASL will reduced from 84,50,000 equity shares (79.98%) (i.e. 80,65,000 equity shares (76.34%) held by GPIL and 3,85,000 equity shares (3.64%) held by a step down subsidiary Hira Energy) to 39,98,800 equity shares (37.85%).
An extra-ordinary general meeting of the shareholders of the Company through video conferencing (VC) or other audio visual means (OAVM) for seeking their approval for the aforesaid divestment shall be held on Dec.10, 2020.
The Board approved appointment of CS Tanveer Kaur Tuteja, Practising Company Secretary, (FCS 7704, CP 8512), Raipur in place of Jain Tuteja & Associates, Practicing Company Secretaries, (Firm Regn. PCS A3179) as secretarial auditor of the company for the financial year 2020-21 since Jain Tuteja & Associates has been dissolved.
Shares of the company gained Rs 16.30, or 3.83%, to settle at Rs 441.75. The total volume of shares traded was 36,318 at the BSE (Wednesday).