Prakash Industries rises 5%

Prakash Industries is doing very well today morning; the stock price surged to an intra day high at Rs.166.80, up 5%, hitting the UC.

The company posted very good numbers for Q1FY19 today morning.

The company posted a Net Sales of Rs. 985 crore and EBIDTA of Rs. 242 crores, reflecting growth of 51 % and 122% respectively over the corresponding quarter of the last financial year. After providing for interest, depreciation and tax, the Net Profit of the company came in at Rs. 168 crores as against Rs. 59 crores in Q1FY18.

The growth in the profitability is on the back of better sales realisation, higher volumes and major cost savings through operational efficiencies.

The company achieved highest ever quarterly sales volume of around 2.4 lac tonnes in Q1 FY2019, registering growth of around 26% (YoY). This was achieved as a result of better capacity utilization supported by steady supply of raw materials from coal linkages and long term supply agreements of high grade iron ore from Odisha.

The company has received Stage-I approval for diversion of Revenue Forest Land from Ministry of Environment, Forest & Climate Change for its Sirkaguttu Iron Ore Mine. The company is now proceeding with other required clearances, and steps are being taken to operate the mine by next month