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Prakash Industries sales up 27% at Rs 2107 cr

Announcement  |  Corporate 

Profit after Tax at 268 crore; Declares 10% Dividend

Prakash Industries Ltd (PIL), a steel and power company has reported net sales growth of 27% to Rs 2107 crore for the year ended March 2012 from Rs 1673 crore for the year ended March 2011. The EBIDTA and Profit after Tax for the year were Rs 368 crore and Rs 268 crore respectively.

The Board has recommended dividend @ 10% per Equity Share of Rs 10 each of the company for the second consecutive year.  The proposed dividend translates to a payout ratio of 6% of the profits for the year.

The performance of the company has been eventful during the year. The company has achieved its first milestone towards its plan to set up 625 MW power capacity by successfully commissioning the first phase of 100 MW. It has further stepped up its level of integration by setting up a Sponge Iron kiln, which shall contribute substantially towards cost savings. With addition in capacities, the company has achieved highest ever production in steel & power.

Further expansion in the Sponge Iron capacity by setting up an additional module is already under implementation.  In addition, the Company is also taking up expansion in its Steel and Ferro Alloys capacity to further optimize its level of integration. On the power front, the balance capacity expansion shall be taken up in a phased manner in due course of time. The iron ore mines allotted to the Company are under advanced stages of clearances with the Government departments, which once operational shall give further boost to the profitability of the Company in the coming yeaRs

About Prakash Industries Limited:
Prakash Industries Ltd (PIL) is a business house with interests in steel, mining & power. Over the last 6 years, the Net Sales have grown from Rs 800 crore in 2006 to Rs 2106 crore in 2012 and EBDITA has gone up from Rs 153 crore in 2006 to Rs 368 crore in 2012 registering CAGR of of 17.5% and 15.5% respectively.

Prakash Industries Limited (PIL) is operating its integrated Steel & Power plant along with captive mines in the state of Chhattisgarh with facilities for Sponge Iron, Steel Billets/Blooms, Ferro Alloys along with power generation. As a step towards further integration, the company has also set up facilities to manufacture Wire Rod, HB Wire, TMT bars and Structurals which puts forth the concept of forward integration in the company to give highest value addition.

Prakash Industries Limited (PIL) has always emphasized on backward integration to ensure uninterrupted supply of quality raw materials. Captive coal mines of the Company in the state of Chhattisgarh are already in operation with modern methods of mining, resulting in operational excellence.

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First Published: Tue, May 29 2012. 18:32 IST