Prakash Industries Ltd announces Q1FY23 results

During the quarter (Q1 FY23), Prakash Industries Ltd has achieved Net Sales of Rs.895 crores and EBITDA of Rs.103 crores. Profit after Tax for the quarter stood at Rs.43 crores.

This has been a challenging quarter for the Global and Indian economy marked with high inflation including sharp rise in coal prices, rising interest rates and continuing Russia Ukraine war crisis. In addition to this, the imposition of 15% export duty by the Government of India on certain steel exports further aggravated the situation. Despite all these multiple headwinds faced by the steel industry, the Company was able to deliver a strong performance. The EBITDA margin grew from around 9.6% to 11.4% (YoY) largely due to lower coal cost as the supplies of Long Term Coal Linkages from Coal India Limited have started during this quarter. Also, considering the market conditions, the Company strategically preponed its maintenance shutdown, which resulted in better inventory management. However, the inherent demand from construction and infrastructure segments remains strong.

Commercial Coal Mine

The Ministry of Coal had awarded Vesting Order for Bhaskarpara Coal Mine in favour of the Company on 18th November, 2021. The Company is taking all steps to open the mine by second half of the next year. This mine shall go a long way in enhancing the revenue and profitability of the Company, more so, in a scenario marked by global coal shortages and higher prices.

Shares of Prakash Industries Limited was last trading in BSE at Rs. 55.20 as compared to the previous close of Rs. 53.75. The total number of shares traded during the day was 151001 in over 1996 trades.

The stock hit an intraday high of Rs. 55.55 and intraday low of 53.60. The net turnover during the day was Rs. 8259172.00.

Source : Equity Bulls

Keywords

PrakashIndustries INE603A01013 Q1FY23 ResultUpdate