Prakash Industries Ltd's Q1FY19 standalone net profit rises 184% yoy to Rs169cr

The company’s standalone revenue stood at Rs985cr, up 36.4% yoy and 8.2% qoq

Jul 10, 2018 06:07 IST India Infoline Research Team

Prakash Industries Ltd Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 985 36.4
EBITDA 242 121.1
EBITDA Margin (%) 24.6 940
Net Profit (adjusted) 169 184
***EBITDA margin change is bps

Prakash Industries reported strong revenue and earnings growth for Q1FY19 on the back of strong volume and realization growth in the steel business. Revenue grew by 36.4% yoy to Rs985cr, while EBITDA stood at Rs242cr, up 121% yoy. EBIDTA margin expanded by 940bps yoy to 24.5%. Net Profit stood at Rs169cr, a rise of 184% yoy.
  • Prakash Industries saw the revenues for its power, steel and PVC pipes segments grow by 55%, 41% and 5% yoy respectively in Q1FY19. Sales volume for the steel business stood at 2.4 lakh tonnes for Q1FY19, an increase of 26% yoy.
  • EBIT for the power and steel segments grew by 150% and 231% yoy respectively in Q1FY19 supported by the strong volume growth. EBIT for the PVC pipes segment was flat for Q1FY19 on a yoy basis due to higher raw material costs.
  • Gross Margins for Q1FY19 stood at 40.6%, a contraction of 141bps yoy.

Technical View:

Prakash Industries Ltd is currently trading at Rs. 159.80, up by 0.9 points or 0.57% from its previous closing of Rs. 158.90 on the BSE.
The scrip opened at Rs. 161 and has touched a high and low of Rs. 166.80 and Rs. 159 respectively. So far 35,38,741 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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