Shares of Godawari Power & Ispat fell 5% in morning trade on May 22, reacting to a disappointing third-quarter performance for the 2022-23 financial year.

The company’s consolidated operating income fell to Rs 1,316.59 crore from Rs 1,437.93 crore a year earlier. Profit from continuing operations in the March quarter was Rs 169.57 crore, down from Rs 406.52 crore a year earlier, the company said on May 20.

Iron ore mining at Godawari Power was down 15% year-on-year, while iron ore pellet production rose 8% to 6,62,200 tonnes. Iron ore pellet sales increased to 5,73,278 tonnes, up 13% YoY, while pellets and sponges achieved 19% and 6% QoQ growth to Rs 9,883 per tonne and Rs 33,707 per tonne, but fell 17% and 3% respectively, from the same period last year.

It commissioned the 30 MW solar power plant in Bemetara on March 29, 2023, and has sought environmental approval from the Ministry of Environment, Forests and Climate Change to expand the Ari Dongri mine, the company said in its investor presentation. ore mining capacity.

The world steel association (WSA) expects demand to grow by 2.3% in 2023 and a further 1.7% in 2024, the company said. Demand will support prices at current levels, it said.

Global iron ore prices hit $133 a tonne in mid-March after the Chinese economy reopened. However, a sharp increase in supply from major global suppliers and weaker-than-expected Chinese demand led to a correction to $108 per tonne.

On the domestic front, India remains one of the bright spots in global steel demand, it said. The WSA forecasts steel demand in India to grow by 7.3% by 2023. The government’s infrastructure push, with a 33% increase in capital spending and a 75% increase in rail spending, bodes well for steel demand, especially for long steel products.

Recently, iron ore prices have risen to Rs 4,010 per ton from Rs 3,660 in January 2023.

Shares of Godawari Power & Ispat traded at Rs 369.10 at 11.01 am, down 3.94%.