Prakash Industries soars post strong sales in Q3
Prakash Industries created a new 52-week high after the company reported 459 per cent increase in profit at Rs. 101.3 crore for the third quarter of FY18 as against Rs. 18.10 crore in the same period last year.
The company credited growth in profitability to better sales realisation, higher volumes and major cost savings. The domestic steel and ferro alloy prices witnessed an increase of more than 20 per cent in Q3 which in turn improved turnover and profitability margins. Operating profit also more than doubled to Rs. 150.5 crore from Rs 62.1 crore on YoY basis.
The company has reduced debt by around Rs. 160 crore during the first three quarters of FY18 and plans to be debt-free in the next two years. The company also said that they are expecting a near 100 per cent capacity utilisation in the current quarter which will help achieve higher sales volumes and turnover.
On Monday, the stock of Prakash Industries closed at Rs. 218.40 per share, up Rs. 13.90 or 6.80 per cent on NSE. The scrip opened at Rs. 207.20 and created a 52-week high of Rs. 223.45 on NSE. The stock attracted a traded volume of 1,44,87,251 on NSE.