Prakash Industries Ltd (PIL), a steel and power company has reported net sales growth of 27% to Rs. 2107 crore for the year ended March 2012 from Rs. 1673 crore for the year ended March 2011. The EBIDTA and Profit after Tax for the year were Rs. 368 crore and Rs. 268 crore respectively. The Board has recommended dividend @ 10% per Equity Share of Rs. 10 each of the company for the second consecutive year. The proposed dividend translates to a payout ratio of 6% of the profits for the year.
The performance of the company has been eventful during the year. The company has achieved its first milestone towards its plan to set up 625 MW power capacity by successfully commissioning the first phase of 100 MW. It has further stepped up its level of integration by setting up a Sponge Iron kiln, which shall contribute substantially towards cost savings. With addition in capacities, the company has achieved highest ever production in steel & power.
Further expansion in the Sponge Iron capacity by setting up an additional module is already under implementation. In addition, the Company is also taking up expansion in its Steel and Ferro Alloys capacity to further optimize its level of integration. On the power front, the balance capacity expansion shall be taken up in a phased manner in due course of time. The iron ore mines allotted to the Company are under advanced stages of clearances with the Government departments, which once operational shall give further boost to the profitability of the Company in the coming years.