Prakash Industries’ FY2019-2020 sponge iron production rose by 9pc to 820,000mt from the prior year, achieving the company’s highest-ever production figures, according to a company release.
The production increase is attributed to the commissioning of 6th sponge iron rotary kiln during the year. The company has also expanded the installed capacity of its steel melting shop to 1.176mn mt per year by commissioning new energy-efficient induction furnaces. These installations also resulted in cost reductions.
During the fiscal, Prakash Industries secured an additional allocation of long-term coal linkage of 169,000mt for the next five years for its 6th sponge Iron kiln. The company has recently commenced the extraction of Iron ore at its Sirkaguttu iron ore mine in Odisha. This is an important milestone for the company and will result in significant cost reduction.
Demand for long steel products has been steady since May due to timely restart of the manufacturing and re-commencement of infrastructure and construction activities across the country, stated the company.
For FY2020, Prakash Industries reported net sales of Rs2,974 crore ($393.75mn), EBITDA of Rs355 crore and net profit of Rs114 crore.