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Prakash Industries Q1 net up 54% at Rs 66 crore

Company had clocked a net profit of Rs 43.06 crore in the corresponding quarter of a year-ago period

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Press Trust of India New Delhi
Last Updated : Aug 08 2014 | 6:03 PM IST
Prakash Industries Ltd today reported 53.9% rise in standalone net profit at Rs 66.31 crore for the first quarter ended June 30 on account of higher income.

The integrated steel and power company had clocked a net profit of Rs 43.06 crore in the corresponding quarter of a year-ago period, it said in a filing to BSE.

The total income from operations of Prakash Industries rose to Rs 811.01 crore, over Rs 640.46 crore in the same period of the last fiscal, it said.

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Commenting on the result, Prakash Industries Ltd Whole- time Director and CFO P L Gupta said, "The company has performed satisfactory despite the challenges being faced by the steel industry. The company shall continue to strive for better performance in the upcoming quarters."

Prakash Industries production volumes in steel went up by more than 8% on Q-o-Q basis.

The performance of the ferro alloys division has been remarkable during the quarter with introduction of new product--Ferro Manganese, the company said adding that the performance of other divisions has also been satisfactory.

Commenting on it outlook the company said, it has already undertaken setting up of additional capacities in phases in sponge iron, steel and ferro alloys, which is expected to be completed by the end of the current fiscal.

"This will further strengthen the bottom line of the company in the near future," the company said.

On the recent media reports on the Syndicate Bank issue, the company clarified that it has not availed any loan at any point of time from the Bank and denied "allegations of impropriety and of financial ill health".

"The company is a consistent profit making entity and is regular in servicing of loans to all its lenders. All loan accounts of the company are classified by the respective lenders as 'Standard Assets'," Gupta said assuring that "this matter will not have any impact on the operations of the company.

Shares of the company closed at Rs 81.50 apiece, down 2.57% from previous close on the BSE today.

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First Published: Aug 08 2014 | 5:16 PM IST

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