The ratings upgrade factors in significant improvement in business and financial profile.

According to the credit rating report, GIL’s business risk profile improvement is supported by consistent growth in scale of operations, a strong order book of Rs. 1,200 crore and sustained operating margins.

Healthy demand from end-user industries such as the auto, construction, power, and oil and gas sectors further support the business risk profile.

In contrast, an improvement in liquidity profile and debt service coverage metrics supports the financial profile, which is expected to improve further, considering no significant debt-funded capex is on the horizon coupled with GIL’s ability to raise funds continuously.

Goodluck India manufactures sheets, pipes, engineering structures, fabricated structures, forgings, and automobile tubes. The company has five manufacturing facilities in Sikanderabad (Uttar Pradesh) and one recently operational in Kutch (Gujarat), with a total installed capacity of more than 300,000 tonne per annum.

The company’s net profit stood at Rs 63.29 crore in H1 FY24 against 40.59 crore in H1 FY23, up by 55.9%. It has reported an 8.9% growth in total revenue to Rs 1,744.01 crore in the first six months of this fiscal from Rs 1,601.51 crore in the same period of the previous year.

The scrip fell 1.27% to end at Rs 885.05 on the BSE on Friday.

Domestic equity markets are shut today on account of Guru Nanak Jayanti.