Previews -Godawari Power and Ispat with Emkay 4 February, 2011

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Contents

n        Research Views

Godawari Power and Ispat Ltd Q3FY11 Result estimates

n    Godawari Power and Ispat is likely to post strong numbers for the Q3FY11 backed by higher realizations in steel and iron ore businesses

n    Ramping up of its pellet production and sales should be more visible

n    The company focused on its billet and ferro alloy businesses on lower power realizations.

n    We expect EBITDA margins to grow by 150 bps YoY to 17.2% , however, on QoQ it is likely to fall by 340 bps

Things to look at

n    Pellet sales volume- this would indicate the whether that plant has been stabilized.

n    Iron ore production volume during the quarter

n    Billets and ferro alloys production

n    Power realization

n    Update on Boria Tibu iron ore mine and coal mine