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Prakash Industries hits 7-year high on strong Q2 results

The stock rallied 9% to Rs 149 on the BSE in intra-day trade, its highest level since November 2010.

SI Reporter  |  Mumbai 

steel, iron, Essar, Bhushan

rallied to its almost seven-year high of Rs 149, up 9% on the BSE in intra-day trade after the company reported nearly five-fold jump in net profit at Rs 65 crore in September quarter (Q2FY18). It had posted profit of Rs 14 crore in the same quarter last fiscal year. The stock is trading at its highest level since November 2010.

The company’s turnover increased by 29% to Rs 648 crore in Q2FY18 against Rs 501 crore in the corresponding quarter of previous fiscal.

said the growth in the profitability is on the back of major cost savings, higher volumes and better sales realisation.

EBITDA (earnings before interest, tax, depreciation and amortization) margins improved to 19.1% in Q2FY18 from 11.4% in Q2FY17.

The company said it is expanding its sponge iron and power capacity by setting up 6th sponge iron rotary kiln of 0.2 million TPA with 15 MW co-generation plant by September, 2018 which will take the integrated steel capacity to 1.2 million TPA. The company has secured an additional long term coal linkage of 0.21 million TPA. With this additional quantity, the company has fulfilled its 100% requirement of coal for sponge iron plants though linkages.

Owing to the above factors and favourable market outlook, the sales volume and turnover are likely to witness growth of over 60% and 80% respectively in Q3FY18, year on year.

At 02:13 PM; the stock was up 4% at Rs 142 on the BSE, as compared to 0.07% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 8.03 million shares changed hands on the BSE and NSE so far.

First Published: Tue, October 17 2017. 14:17 IST