Prakash Industries Business Updates
The demand of Steel in the country is robust and the production volume of the company has been increasing every month on account of modernization and enhancement initiatives undertaken by the Company. Prakash Industries is likely to record growth of around 30% in sales volumes and 40% in sales realization in Q3FY19 as compared to the same quarter last year.
Steel prices witnessed temporary weakness in the last two weeks due to demand disruption on account of Assembly Elections in four major states i.e. Chhattisgarh, Madhya Pradesh, Telangana, and Rajasthan. The slowdown in China's domestic steel demand also impacted the prices. However, presently, steel prices have started to improve and raw material prices (iron ore and coal) have come down, thereby securing the profitability of the Company.
The Company is meeting its enhanced working capital requirements and capital expenditure on projects entirely through internal accruals. The Company is on schedule to complete its 6th Sponge Iron Kiln with 15MW Co-generation Power Plant in Q4FY19, which will further improve the operational efficiencies and reduce dependence on expensive market purchases.
The demerger scheme of PVC Pipes undertaking is under active consideration of Hon'ble NCL T, Chandigarh, with next hearing scheduled for 11th December 2018.