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Prakash Inds jumps on emerging highest bidder for Chhattisgarh coal mine

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Prakash Industries rose 4.39% to Rs 53.50 after the company announced on Wednesday that it emerged as highest bidder for Bhaskarpara coal mine in Chhattisgarh.

Prakash Industries participated in the 8th tranche of coal blocks auction, conducted by Ministry of Coal and has emerged as the highest bidder for the Bhaskarpara coal mine in Chhattisgarh.

The mine has an extractable reserve of 24.06 million tonnes and its coal is highly suitable for use in our Integrated steel plant at Champa (Chhattisgarh). Presently the company is buying coal through the linkages allotted by Coal India and also through imports. It is expected that the vesting order for the mine by the Nominated Authority of Ministry of Coal may be issued to the company in the due course of time. Availability of coal from the Bhaskarpara Coal Mine will substantially enhance the operating margins of the company.

Meanwhile, Prakash Industries announced after market hours on Wednesday, 6 November 2019, that its net profit fell 74.65% to Rs 33.14 crore on 19.78% decline in net sales to Rs 762.30 crore in Q2 September 2019 over Q2 September 2018.

The sponge iron division and finished steel division achieved highest ever quarterly production of 2.05 lakh tonnes and 2.16 lakh tonnes respectively during Q2FY20, up by around 10% over Q2FY19.

The company said it commenced the mining operations at its Sirkaguttu Iron and Manganese ore mine in the state of Odisha and the extraction of minerals from the mine is expected to scale up within November 2019. This is an important mile stone for the company and will result in significant cost reduction in the cost of iron ore, which is a key input for steel making.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 07 2019. 11:54 IST