GMDC soars as Q2 PAT jumps 69% YoY to Rs 129 cr

Profit before tax stood at Rs 182.53 crore in Q2 FY25, up 64.23% as compared with Rs 111.14 crore recorded in the corresponding quarter last year.

The company reported EBITDA of Rs 203 crore in Q2 FY25, marking a growth of 56% as against Rs 130 crore in Q2 FY24.

On the segmental front, revenue from mining was at Rs 553.58 crore (up 64.32% YoY) and revenue from power stood at Rs 39.45 crore (down 42.83% YoY) during the period under review.

In terms of lignite sales, GMDC achieved a total of 16.59 lakh MT in Q2FY25, representing an impressive 81% increase compared to 9.15 lakh MT in Q2 FY24. The sales value of lignite also saw significant growth, reaching Rs 541 crore, up 88.5% from Rs 287 crore in the previous year.

On half year basis, the company's standalone net profit rose 7.45% to Rs 313.75 crore on 22.88% increased in revenue to Rs 1,411.14 crore in H1 FY25 over H1 FY24.

Roopwant Singh, IAS, MD, GMDC said, Despite the extended monsoon and challenging conditions, our core business in lignite has produced 39.55 MT in H1 FY25, representing a 44% increase compared to the same last year. This achievement reflects our precision and careful planning in mining operations. In addition to delivering strong financial and operational performance, GMDC has made notable progress in its strategic initiatives. One of the key achievements this quarter was the successful implementation of Mission 18.0, aimed at boosting lignite sales during the monsoon quarter.

Despite the seasonal challenges, GMDC achieved an 81% increase in lignite production, demonstrating the Corporation's operational resilience. Moreover, the successful completion of the Public Hearing for the Baitarni-West Coal Block further reinforces GMDC's growth trajectory. In addition, GMDC signed a Supplementary Agreement with Gujarat Urja Vikas Nigam (GUVNL) to amend the Power Purchase Agreement (PPA) for its ATPS project.

Our forward-looking initiatives, such as the Baitarni-West Coal Block and the supplementary agreement with GUVNL, are expected to significantly contribute to our future revenue streams. Additionally, GMDC's commitment to rare earth element project, through the Ambadongar asset, positions the Corporation to play a crucial role in India's critical mineral supply chain.'

GMDC is India's second-largest Lignite-producing company and top merchant seller of Lignite. It is a State Public Undertaking of the Government of Gujarat. Company is engaged in mining lignite from deposit-rich areas across the state, company markets it to various high-growth industries, including textiles, chemicals, ceramics, bricks and captive power.