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Prakash Industries hits 52-week high on robust Q3 results

The stock rallied 9 per cent to Rs 224 in noon deal, after the company reported 5.8 times jump in net profit at Rs 101 crore in Q3FY18 against Rs 17 crore in Q3FY17.

SI Reporter  |  Mumbai 

Steel makers, metal, industry, steel firms

has moved higher to its fresh 52-week high of Rs 224, up 9 per cent on BSE in noon deal, after the company reported 5.8 times jump in net profit at Rs 1 billion in December quarter (Q3FY18). It had profit of Rs 117 million in Q3FY17.

primarily engaged in business said the growth of profitability was on the back of better sales realisation, higher volumes and major cost savings.

During the quarter under review, the company’s turnover grew 55 per cent at Rs 7.26 billion against Rs 4.69 billion in the corresponding quarter of previous fiscal.

The earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved from 19 per cent in Q2FY18 to 21 per cent in Q3FY18.

The company is expecting a further improvement in the margin to around 25 per cent in Q4FY18 (January-March). The company’s capacity utilisation in Q4FY18 is expected to near 100 per cent which will help it to achieve higher sales volume and turnover.

Owing to above factors and favourable market outlook, the sales volume and turnover are likely to witness growth of around 35 per cent and 60 per cent respectively in Q4FY18, year on year, it added.

At 01:25 PM; the stock was up 7 per cent at Rs 218 against 0.52 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 12.39 million shares changed hands on BSE and NSE so far.

First Published: Mon, January 08 2018. 13:28 IST