Prakash Industries Gains Stage-II Approval for Chhattisgarh Coal Mine

Prakash Industries Limited announced in a stock exchange filing that the Ministry of Environment, Forest and Climate Change, Government of India, has granted Final/Stage-II approval for the Bhaskarpara Commercial Coal Mine in Chhattisgarh, following the In-principle Stage-I approval received on August 21, 2023.

The company stated that the Permission to Establish has already been obtained from the Chhattisgarh Environment Conservation Board, and the development of the mine is progressing rapidly. The Mining Lease is expected to be executed by next month.

The coal supplied from this mine is set to enhance the stability of the company’s Integrated Steel operations while also leading to significant cost reductions. As a commercial mine, Bhaskarpara is anticipated to boost revenue and profitability through the sale of coal in the open market.

In terms of financial performance, Prakash Industries reported net sales of ₹3,678 crore for the FY 2024, reflecting a 7% growth compared to the previous financial year. The EBITDA stood at ₹556 crore, showing a remarkable increase of 31%. In FY 2024, the Profit After Tax (PAT) also witnessed a substantial growth of 83%, reaching ₹348 crore. Notably, the EBITDA figure includes a profit of ₹37 crore from the sale of certain assets.

Additionally, during FY 2024, the company achieved a sales volume growth of 20% over the previous year. The operating margin improved from 12.0% to 13.4%, attributed to a softening of raw material prices and enhanced operational efficiencies. This performance indicates the Company’s robust strategy and effective management, positioning it well for future growth.

Overall, the approval and development of the Bhaskarpara Commercial Coal Mine are expected to significantly contribute to Prakash Industries’ operational stability and financial success, reinforcing its commitment to growth in the integrated steel sector.

About Prakash Industries Ltd

Prakash Industries Ltd is involved in the manufacturing and sale of steel products and power generation.

On July 12, 2024, the Prakash Industries share price opened at ₹204.80, touching the day’s high at ₹208.80, as of 10:31 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.