Prakash Industries surged 10.22% to Rs 56.10 after the company announced that it has secured long-term coal linkages for its sixth sponge iron kiln.
In the recent auction of coal linkages conducted by Coal India, Prakash Industries secured allocation of long-term coal linkages of 1.69 lakh MT per annum for the next five years for its sixth sponge iron kiln. The total long term coal linkages now stand at 17.04 lakh tonnes per annum, the company said in a filing after market hours on Wednesday.
These linkages will result in substantial cost savings in sponge iron production at its integrated steel plant at Champa, Chhattisgarh, it added.
Prakash Industries' net profit tumbled 74.7% to Rs 33.14 crore on 19.8% decline in net sales to Rs 762.30 crore in Q2 September 2019 over Q2 September 2018.
Prakash Industries is engaged in the production of ferro alloys, MS TMT/MS Coil and allied products, HB wire rod and PVC pipe and sockets.
Currently, the stock is trading 35.97% below its 52-week high of Rs 87.62 registered on 14 January 2019. It is 79.81% above its 52-week low of Rs 31.2 hit on 22 August 2019.
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