Godawari Power declares dividend 20 pc for FY 2007

Mumbai, Jun 26 (UNI) The directors of Godawari Power and Ispat Ltd has recommended a final dividend of 20 per cent (Rs two per share) in addition to an interim dividend of 10 per cent for the Financial Year ended March 31 2007 as against a dividend of 10 pc paid for the year FY06.

Godawari Power and Ispat Ltd, an integrated manufacturer of wire rods, sponge iron, captive power, steel billets and ferro alloys reported a 132 per cent increase in its net profit to Rs 52.21 crore for the full year ended March 31, 2007 as compared to Rs 22.50 crore (before extraordinary items) in FY06. Net sales for FY07 increased to Rs 442.09 crore as against Rs 233.48 crore in FY06 registering a growth of 89 pc.

During the forth quarter, the net sales rose by 29 per cent to Rs 110.23 crore as compared to Rs 85.74 crore during the same period last fiscal. Net Profit in Q4 FY07 rose by 19 per cent to Rs 11.95 crore from Rs 10.03 crore in the corresponding quarter of FY06. The overall growth in profit for the last quarter was restricted on account of normal shut down of plant during February, 2007 for annual maintenance.

Earnings per share (EPS) for the year ended March 31, 2007 works out to Rs 21.02 per share on expanded share capital (post IPO) as against Rs 13.93 per share in FY06 (before extra ordinary items) registering a growth of 51 per cent on fully diluted equity.

Commenting on the results, Managing Director B L Agrawal said ''The Company's outstanding performance is on account of continuous expansion in capacity backed up by forward and backward integration in manufacturing facilities. Cost savings measures adopted by the Company coupled with robust demand for sponge iron and finished steel products also fueled the growth.'' UNI