Prakash Industries Limited – an integrated steel & power making unit has released quarterly result for the quarter ended on 31st Mar 2018 today i.e. on 30th Apr’18.
During FY’18, the company achieved Net Sales of INR 2,935 Crore and EBIDTA of INR 596 Cr, reflecting a growth of 35% and 125% respectively over the last financial year.
The company is going to start operation at its Sirkaguttu iron ore mine in Odisha from the current quarter (Apr-Jun’18). The mine has EC limit of 1.325 MnT pa.
Further, the company is likely to make operational its Kawardha iron ore mine in Chhattisgarh by April 2019.
The company has tied up for the supplies of iron ore from Odisha miners and NMDC on the long-term basis.
Prakash Industries’ may lower its merchant iron ore sourcing – According to iron ore movement data maintained with SteelMint, Prakash Industries sourced around 0.89 MnT iron ore from Odisha merchant mines primarily – Indrani Patnaik, Rungta Mines and Essel Mining. It also procured 0.02 MnT iron ore from NMDC (C.G.). After the steelmaker commences operations at its captive mine, it may lower its sourcing from merchant mines.
Steel and sponge iron expansion Plans of Prakash Industries – The steelmaker has unveiled its expansion plan of integrated steel plant capacity from 1.20 MnTpa to 3 MnT pa over the next 5 years through internal accruals at its existing location in Champa, Chhattisgarh.
The company is planning to increase its capacity of sponge making by 0.20 MnT p.a. in Sept’18 and 0.2 MnT p.a. till Mar’19.
Future outlook: The Revenue of the Company is likely to grow over 60% in FY 2019(YoY) to around Rs. 4,700 crores with improved EBITDA margin of around 25% owing to expansion, higher utilisation of capacities, better sales realisation and start of mining operations at its Sirkaguttu Iron Ore Mine in Odisha this quarter.
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