Prakash Industries rose 4.33% to Rs 127.60 at 12:00 IST on BSE after the company announced the expansion of sponge iron capacity by 0.2 million tonnes per annum.
The announcement was made during market hours today, 10 October 2017.Meanwhile, the S&P BSE Sensex was up 89.74 points, or 0.28%, to 31, 936.63. The S&P BSE Small-Cap index was up 137.41 points, or 0.82%, to 16,870.44.
On the BSE, 3.02 lakh shares were traded on the counter so far as against the average daily volumes of 2.17 lakh shares in the past one quarter. The stock had hit a high of Rs 129.50 and a a low of Rs 121.70 so far during the day. The stock had hit a 52-week low of Rs 146.60 on 31 July 2017. The stock had hit a 52-week low of Rs 42.05 on 5 December 2016.
Prakash Industries said that the company has sponge iron capacity of 1 million tonnes per annum at its integrated steel plant in Chattisgarh. In order to become self reliant with respect to the requirement of sponge iron in its steel melting shop, the company has implemented its fifth sponge iron rotary kiln having capacity of 0.2 million tonnes per annum (mtpa) in April 2017.
Subsequent to this, the company has now taken up further expansion of 0.2 mtpa in the sponge iron capacity which will take the integrated steel plant capacity to 1.2 mtpa.
The new rotary kiln shall also generate additional 15 megawatts power through co-generation route, without any additional fuel cost, by harnessing gases emanating from the kiln.
All statutory approvals required for taking up the said project are in place along with the necessary infrastructure. The company is geared up to implement the sixth kiln by September 2018.
Prakash Industries' net profit spurted 323.14% to Rs 59.41 crore on 13.04% rise in revenue to Rs 722.33 crore in Q1 June 2017 over Q1 June 2016.
Prakash Industries has diversified interests in steel, power and rigid PVC pipes.
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