Godawari Power Ispat, the moment it opened for trading, was locked at the 5% UC. On Friday, it has closed at Rs.495.35 and today it opened and got frozen at Rs.520.10. Its 52-week high is at Rs.560.

The company posted a very good set of numbers for Q3FY18 and this has obviously thrilled the markets.

Its consolidated revenue rose by a good 58% (YoY) at Rs.672 crore and net profit came in at Rs.72 crore v/s loss of Rs.10 crore.

Operating profit was up by a very good 88% at Rs.169 crore wile margins rose from 21.1% to 25.1%.

The company, apart from generating 73MW of captive power, is an end-to-end manufacturer of mild steel wires. In the process, the company manufactures sponge iron, billets, Ferro alloys, captive power, wires rods (through subsidiary company), steel wires, Oxygen gas, fly ash brick and last but not the least pallets. It has also rights for Iron Ore and Coal Mining for captive consumption.

Apart from increase in overall production, all segments posting their highest ever quarterly increase, the higher price realisations is what led to this turnaround.

The company has a substantial debt burden – its finance cost for Q3Fy18 stood at Rs.65 crore and at Rs.205 crore for 9MFY18.