Gallant Ispat hits 52-week high on board nod to DRI kiln capacity addition

Gallant also expects additional revenues of approximately Rs 50 crore per annum on the sale of DRI (Sponge) produced in this new kiln.

Shares of Gallant Ispat Limited rallied 4 percent to a 52-week high of Rs 105 in early trade on September 12 after its board approved the setting up of a new direct reduced iron (DRI) kiln with an annual capacity of 1,65,00O tonnes at its Gorakhpur facility in Uttar Pradesh.

The project, which is expected to be operational in the first quarter of FY2025, is likely to attract an investment of Rs 125 crore. It will be fully financed out of internal accruals, the company said in an exchange filing on September 11. Internal accruals are funds generated by a company from its business operations.

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This gains significance as the new kiln will enable the company to completely utilise the output of its pellet plant. It will also reduce wastage and enhance operational efficiencies.

The company has highlighted that the new DRI kiln will help reduce
the overall power cost by 15 percent which will further reduce carbon emissions.

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Gallant also expects additional revenues of approximately Rs 50 crore per annum on the sale of DRI (sponge) produced in this new kiln. "These sales will further increase the State Goods and Services Tax (SGST) refund by Rs 25 crore under the incentive scheme of the Uttar Pradesh government," the disclosure said.

The company is involved in the manufacturing and marketing of sponge iron, mild steel billets, re-rolled products (TMT bars and Structurals) and wheat flour products.

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