Prakash Industries Q1 PAT jumps 19%

Prakash Industries said its profit after tax increased 18.64 per cent to Rs 70 crore.

Steel manufacturer Prakash Industries said its profit after tax increased 18.64 per cent to Rs 70 crore for the quarter ended June 30 on robust demand for its products.

The company had registered a profit after tax of Rs 59 crore in the corresponding quarter of the previous fiscal,Prakash Industries said in a statement.

Sales in the April-June quarter jumped 27.12 per cent to Rs 464 crore compared to Rs 365 crore in the year-ago period,it added.

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“The wire rod division witnessed strong volumes and achieved highest-ever production contributing significantly to the bottom line,” the company said.

The ferro alloys division also showed marked improvement with strong volumes,higher selling prices and better margins,it added.

“Production volumes in steel increased by more than 25 per cent compared to the corresponding period in the previous year,” the company said.

Talking about its expansion plans,Prakash Industries said it aims to achieve full integration of its steel operations in the next two years.

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Besides,the company has taken up plans to expand power generation capacity by 625MW in different phases.

“The first phase is in an advanced stages of implementation and is expected to commence production in the current financial year. The balance capacity is proposed to be set up in modular fashion in a phased manner over the next three years,” the statement said.