October 07, 2008

Prakash Industries net sales in Q3 of 2007 up by 28% YoY

Prakash Industries Limited has posted net sales of INR 329.13 crores in October to December 2007 quarter up by 28% YoY as against INR 257.36 crore in October to December 2006 quarter. EBIDTA increased by 41.57% YoY to INR 78.60 crore as against INR 55.52 crore. Profit after tax is up by 47% YoY to INR 55.46 crore as against INR 37.76 crore.

During the October to December 2007 quarter, Prakash Industries has acquired coal blocks in the state of Chhattisgarh for company’s captive use. Union ministry of coal has allotted a non coking Fatehpur coal block in Chhattisgarh for the expansion of capacities to 625 MW. The coal reserves in the block are estimated to be in excess of 45 million tonnes. It has earlier signed a MoU with Chattisgarh for these investments into the state. The implementation of this power projects would commence from the next quarter.

Prakash Industries had set up manufacturing units in Chhattisgarh such as coal based sponge iron plant, captive power plant, steel melting shop, development of captive coal mines, development of iron ore mines with crushing plant, submerged arc furnaces for producing ferro alloys, structural rolling mill and wire rod mill etc. It has also signed MoU with Madhya Pradesh government for installation of 1000 MW power plant in Madhya Pradesh.