Prakash Industries Reports 32% Decline in Q2 Net Profit to 616 Million Rupees
Prakash Industries Limited announced its Q2 FY2025 results, reporting a net profit of 616 million rupees, down 32% from 904 million rupees in Q2 FY2024. Net sales decreased to 7,232 million rupees, a 32.8% decline year-over-year. The company's performance was impacted by extended monsoons, affecting coal extraction from its Bhaskarpara mine. Despite challenges, Prakash Industries remains optimistic about future prospects, citing GST reforms and resumption of construction activities as potential catalysts for increased steel demand.
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Prakash Industries Limited , a prominent player in the Indian steel sector, has announced its financial results for the second quarter ended September 30, 2025, revealing a significant decline in net profit compared to the same period last year.
Financial Performance
The company reported a net profit of 616.00 million rupees for Q2, down 32% from 904.00 million rupees in the corresponding quarter of the previous year. This decline reflects a challenging period for the company's financial performance.
Key Financial Metrics
| Particulars (in million rupees) | Q2 2025 | Q2 2024 | % Change |
|---|---|---|---|
| Net Sales | 7,232.00 | 10,769.00 | -32.8% |
| Operating Profit | 1,080.00 | N/A | N/A |
| Profit After Tax | 616.00 | 904.00 | -32.0% |
The company's net sales for the quarter stood at 7,232.00 million rupees, showing a significant decrease from the previous year's figure. The operating profit was reported at 1,080.00 million rupees.
Half-Year Performance
For the half-year ended September 30, 2025, Prakash Industries achieved:
- Net Sales: 17,602.00 million rupees
- Operating Profit: 2,460.00 million rupees
- Profit After Tax: 1,530.00 million rupees
- Earnings Per Share (EPS): 8.54 rupees
Operational Highlights
The company's performance during the quarter was affected by extended monsoons. However, Prakash Industries remains optimistic about future prospects, citing recent GST reforms and the resumption of construction and infrastructure activities as potential catalysts for increased steel demand in the coming quarters.
Coal Extraction
During Q2, Prakash Industries extracted approximately 197,000 MT of coal from its Bhaskarpara Commercial Coal Mine. Of this, 3,000 MT was sold, while the remaining quantity was used for steel production at the company's integrated steel plant in Champa. Despite lower coal extraction due to prolonged monsoons, the company maintains its target of extracting over 1 million tonnes of coal in the current financial year.
Management Commentary
The company's management expressed hope for improved performance in the ensuing quarters, driven by favorable market conditions and internal operational efficiencies.
Looking Ahead
While the current results show a decline in profitability, Prakash Industries appears to be positioning itself for potential growth opportunities in the steel sector. The company's focus on coal extraction and optimism regarding increased steel demand suggest a strategic approach to navigating current market challenges.
Investors and market observers will likely keep a close watch on how Prakash Industries capitalizes on the expected boost in steel demand and manages its operational costs in the coming quarters.
Historical Stock Returns for Prakash Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -6.08% | -8.42% | -7.52% | -18.60% | -13.08% | +237.50% |
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