Prakash Industries posts 60% increase in Jan-Mar quarter net

Company had clocked a net profit of Rs 38.92 crore in the corresponding quarter of a year-ago period

Prakash Industries today reported 60% jump in net profit at Rs 62.36 crore for quarter ended March 31, 2014 on the back of higher sales and "strengthening" of steel prices.

The company, an integrated steel and power firm, had clocked a net profit of Rs 38.92 crore in the corresponding quarter of a year-ago period.

Total income from operations during the quarter was at Rs 717.02 crore, against 602.34 core in the same quarter of FY'13, it said.

"Softening of the input prices coupled with strengthening of steel prices, towards the end of the year, helped relieve cost pressures and enable margin improvements," Prakash Industries Managing Director Vikram Agarwal said.

"We have also utilised this financial year to lay a strong foundation for future growth through capacity additions. In the coming year, we expect to reap improved dividends for the efforts put in by the company," he added.

The company further said that it is setting up an additional sponge iron kiln and expects the same to be commissioned towards the end of the current financial year.

With full stream operations of steel and ferro alloys capacities set up in the last year along with fresh capacities coming up in the current year, the company expects significant growth in its production, sales volumes and EBIDTA margins in FY15, it added.

"As regards the captive iron ore mines allotted to the company in the states of Chhattisgarh and Orissa, it is making all efforts to open the mines at the earliest," the company said.