Prakash Industries Ltd's Q2FY19 standalone net profit rises 98.59% yoy to Rs130.73cr

The company’s standalone revenue stood at Rs950.30cr, up 46.67% yoy but down 3.56% qoq.

Oct 29, 2018 09:10 IST India Infoline Research Team

Prakash Industries Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 950 46.7
EBITDA 190 60.2
EBITDA Margin (%) 20 168
Net Profit (adjusted) 130.7 84.0
***EBITDA margin change is bps

Prakash Industries reported strong revenue and earnings growth for Q2FY19 on the back of strong volume and realization growth in the steel business. Revenue grew by 46.7% yoy to Rs950cr, while EBITDA stood at Rs190cr, up 60.2% yoy. EBIDTA margin expanded by 168bps yoy to 20%. Net Profit stood at Rs130.7cr, a rise of 84% yoy.
  • Prakash Industries saw the revenues for its power, steel and PVC pipes segments grow by 35%, 49% and 25% yoy respectively in Q2FY19. Sales volume for the steel business stood at 2.4 lakh tonnes for Q2FY19, an increase of 28% yoy.
  • EBIT for the power, steel and PCV pipes segments grew by 68%, 140% and 12% yoy respectively in Q2FY19 supported by the strong volume growth.
  • Gross Margins for Q2FY19 stood at 38.3%, an expansion of 215bps yoy.
  • The company plans to complete expansion of the sixth sponge iron kiln and a 15MW waste heat recovery unit by the end of January 2019.

Technical View:

Prakash Industries Ltd ended at Rs. 105, up by 3.7 points or 3.65% from its previous closing of Rs. 101.30 on the BSE.
The scrip opened at Rs. 103.65 and touched a high and low of Rs. 111.80 and Rs. 102 respectively. A total of 25,77,947 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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