Prakash Steelage Q2FY11 Net at Rs 7.12 cr; Net Sales at Rs 111.7 cr

Prakash Steelage Ltd, (PSL) a leading manufacturer of high quality stainless steel seamless pipes and tubes, has reported net profit of Rs. 7.12 crore for the quarter ended September 30, 2010. PSL was listed on Bombay Stock Exchange and National Stock Exchange on August 25, 2010.

Net sales of the Company for the quarter ended September 30, 2010 stood at Rs. 111.7 crore. The EBIDTA margin stood at Rs 14.82 crore and the EPS at Rs. 5.05.

Gross sales for half-year period, at Rs. 222 crore, registered a growth of 14.45% over the corresponding period of last year. The EBIDTA for the six-month period stood at Rs. 27.4 crore, showing increase of 47% while PAT registered 73% increase at Rs. 12.8 crore. This has been possible due to value addition created by the Company by way of backward integration.

Having developed high value-added products like duplex, super duplex and martensitic grades like 410, the Company is on growth track. The recently bagged international quality accreditation, API 5L, allows PSL products to enter niche areas of oil and gas sector.

Mr. Prakash Kanugo, Chairman & Managing Director of Prakash Steelage Ltd, said: “We are striving to enhance value of the stake holders by working hard in the right direction.”

Mr. Ashok Seth, Executive Director of Prakash Steelage Ltd said, “We are in line with our vision of becoming key supplier of stainless steel. In the long run, we wish to diversify to different product mix such as carbon steel, forgings etc. We have bagged some important tie-ups and international quality certification which would boost our growth going forward.” The company perceives to benefit from India’s continued move on the growth path, especially the increased spending in infrastructure, power and oil and natural gas sector.

About Prakash Steelage Ltd:

Prakash Steelage Limited is a leading manufacturer of High Quality Stainless Steel Seamless and Welded Pipes and Tubes. The company has two industrial units at Silvassa and Umergaon for the manufacture of stainless steel tubes and pipes with the capacity of 19,000 MT per annum.

The company has customers from diverse sectors such as Oil & Gas, Power, Pharmaceutical, Petrochemical, Sugar, Dairy, Automobile, Desalination etc. Products of the company have found wide acceptance in the markets of North America, South East Asia, Africa, Middle-East and Europe.