Shares of Godawari Power and Ispat Ltd (GPIL) rallied over 9 percent in early trade deals on Wednesday after the company reported a multifold jump in March quarter earnings driven by higher revenues.

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The company’s consolidated net profit in Q4FY21 jumped to Rs 304.01 crore from Rs 34.22 crore, while total income rose to Rs 1,263.67 crore from Rs 787.74 crore in the same period a year ago.

The net profit of the company in FY2020-21 also rose to Rs 624.49 crore from Rs 174.43 crore in the previous year. Total income in the last fiscal year was higher at Rs 4,075.96 crore from Rs 3,293.18 crore in 2019-20.

GPIL’s long-term gross debt (standalone) reduced to Rs 457 crore from Rs 1,055 crore and further reduced to Rs 193 crore as on May 25, 2021.

The company’s board also recommended a final dividend of Rs 13.50 per equity share of Rs 10 each for 2020-21 in addition to an interim dividend of Rs 5 per equity share of Rs 10 each.

Additionally, the board also approved a proposal to set up a captive solar PV power plant of 250 MW capacity in Raigarh district of Chhattisgarh at an estimated cost of Rs 750 crore, the company said in a regulatory filing.

The project shall be funded mainly out of internal accruals. The power generated in this project shall be captively consumed in the company's plant at Silatra Industrial Area, Raipur, Chhattisgarh, it added.

The company has been trying to divest Godawari Green Energy for the last few years and now it is in advanced talks with potential buyers, Abhishek Agrawal, Executive Director, Godawari Power & Ispat told CNBC-TV18.

“We have been trying to disinvest those assets for last 4-5 years, but unfortunately we have not done till now. But the company is now self-sustainable, the good news is we are in advance talks with a couple of potential buyers. Nothing concrete but the talks are at an advanced stage and given a chance we will definitely disinvest," Agrawal said.

Whatever money comes back in form of equity in Godawari that will be invested into the going capex, he added.

“The current debt in the books is close to Rs 350 crore and valuation it is difficult to comment but somewhere around Rs 650-700 crore at the moment,” Agrawal said.

At 9:45 am, the shares of Godawari Power and Ispat were trading 3.47 percent higher at Rs 991.25 apiece on the BSE.

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(Edited by : Ajay Vaishnav)

First Published:May 26, 2021 10:05 AM IST