BWI: Prakash Industries Reports Net Profits of Rs. 204 Crores in FY 08-09

Press release from Business Wire India
Source: Prakash Industries Ltd
Thursday, May 28, 2009 06:27 PM IST (12:57 PM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Heavy industries, Mining companies, Stock exchanges
--------------------------------------------------
Prakash Industries Reports Net Profits of Rs. 204 Crores in FY 08-09


New Delhi, Delhi, India, Thursday, May 28, 2009 -- (Business Wire India) -- Prakash Industries Ltd. reported a net profit of Rs.204 cores for the year ended 31st March 2009 as against Rs.199 crores in FY 2007-08. The company reported net sales of Rs.1710 crores in FY 08-09 as against Rs.1420 crores in FY07-08 registering over 20% growth n sales volumes. The company attributes the growth in volumes to the highest ever production levels achieved by the units and robust demand for steel products.

The company has been able to maintain the EBIDTA and PAT levels as compared to the previous year despite the global slowdown. The EBIDTA stood at around Rs.304 crores in FY 08-09 as opposed to Rs.300 crores in FY 07-08. The integrated nature of the company's operations cushioned the margins despite price fluctuations during the course of the year.

The performance of the wire rod manufacturing unit has been exceedingly encouraging as the unit operated more than its rated capacity contributing significantly to the bottom line. In addition the company has taken several steps to further modernize and balance the capacities of the mill which were implemented towards the end of the year.

The company also augmented its ferro alloys capacity by setting up another submerged arc furnace. To cater to the increased power requirements of the steel operations, the company during the year has successfully commissioned a new 25 MW power plant, which is significantly helping in bringing down costs.

The captive coal mine operations performed exceedingly well and achieved record production during the year. The Director General of Mines has conferred the safety award for the 2nd year in succession to the company's mining operations.

Future Outlook

The company is already in the process of doubling its steel making capacities in the entire chain of integrated steel operations. Encouraged by the performance of the existing wire rod mill the company has taken steps to further augment its capacity wire rod production capacity. In addition, one of the existing mills is being modernized to expand its product mix to enable it to manufacture TMT bars as well, which is expected to be completed by August this year. All these expansion plans are expected to increase the present volumes by more than 50% in the ensuing year and the company is expected to maintain this growth momentum in the future years also.

The effort of the company in past so many years to become self reliant in iron ore supplies bore fruit with the grant of rights over the iron ore mines in Chattisgarh as well as in Orissa. The company is taking various steps to make these mines operational in the 2nd half of the current financial year. This is expected to result in substantial cost savings to the company. In addition, Madanpur coal block allotted to the company in JV with other companies is expected to be operational by end of the current financial year. This shall cater to the increased coal requirement of the steel and power operations of the company.

To view the press release with table, please click on the link given below:

Prakash Industries Annual Results
For picture(s)/data to illustrate this release click below:

http://www.BusinessWireIndia.com/attachments/Prakash Industries Annual Results (2).doc
Prakash Industries Annual Results (2).doc


CONTACT DETAILS
Vikas Mahajan, Mutual PR, +91 9953619912, vikas@mutualpr.com
Amit Arora, Mutual PR, +91 9811154140, amit@mutualpr.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, HEAVY INDUSTRIES, MINING, STOCK EXCHANGES

If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.

Submit your press release at http://www.businesswireindia.com