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Earnings Call Transcript

Gallantt Ispat Earnings Call Transcript: Key Takeaways

Revenue grew 13% YoY, but margins were squeezed by strategic shutdowns at the Gorakhpur plant and rising input costs.

Guidance and delivery
Management target EBITDA Margin FY28
Highlights
Revenue growthRevenue ₹1,146 Cr, up 13% YoY; volume impacted by plant shutdown.
MarginsEBITDA margin fell to 9.64% from 16.19% QoQ due to costs.
Demand visibilityStrong domestic demand led by infra, housing, and post-monsoon construction activity.
Management confidenceConfident; attributing margin pressure to one-time maintenance and expansion activities.

Growth

Volume-led growth muted by plant maintenance; TMT sales fell to 165,000 tons from 192,000 tons QoQ.

Outlook

Capacity expansion to 1.23 MTPA and captive iron ore/coal mines expected to add ₹2,000/ton to EBITDA by FY28.

Risks

High energy and freight costs; turbine issues delayed plant restart, impacting captive power availability and margins.

Last quarter's promises, checked

Delivered

  • Renewable energy 18MW Gujarat → commissioned H1 FY27 (= BEAT)
  • H2 FY27 expansion 1.23M tonnes → on track (= BEAT)
  • Zero term debt → net cash surplus (= BEAT)

Partly delivered

  • Kutch utilization 66% → 68% (= PARTIAL)

Missed

  • EBITDA margin 18% → 9.64% (= MISS)
  • TMT volume 192k tonnes → 165k tonnes (= MISS)
  • PAT margin 11% → 5.3% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: GALLANTT. Summary written with AI assistance from the document.

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Gallantt Ispat Ltd: key numbers

Share price
₹537.20
Market cap
₹12,962 Cr
Revenue (annual)
₹4,419 Cr
Net profit (annual)
₹484.3 Cr
P/E (TTM)
31.8×Sector 16.7×
Promoter holding
70.98%+0.95% QoQ
FII holding
0.03%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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