Moneycontrol
Oct 12, 2017 10:43 AM IST | Source: Moneycontrol.com

Prakash Industries gains 5%, secures 100% long term coal linkages for sponge iron

The company is going to sign fuel supply agreement (FSA) in the coming weeks and supply will commence from November 2017.

Prakash Industries gains 5%, secures 100% long term coal linkages for sponge iron

Moneycontrol News

Share priced of Prakash Industries rose 5.6 percent intraday Thursday as it has secured additional coal linkages of 2.10 lakh tonnes per annum for the next 5 years.

The company is going to sign fuel supply agreement (FSA) in the coming weeks and supply will commence from November 2017.

The company’s coal requirement had increased with commissioning of 5th sponge iron kiln in April 2017.

With this additional quantity, the company has fulfilled its 100 percent requirement for the sponge iron plants from linkages, which was earlier being met through spot auctions; thereby saving over 20 percent in coal costs.

With this additional linkage, the profitability will improve by over Rs 20 crore.

Rakesh Jhunjhunwala, partner RARE Enterprises raised stake in Prakash Industries to 1.64 percent in the September quarter from 1.01 percent at the end of the quarter ended June.

The company is planning to double its PVC pipes production capacity to 1,10,000 tonnes per annum by September 2019 in phases at its existing plant in Kashipur, Uttarakhand.

At 10:39 hrs Prakash Industries was quoting at Rs 136.50, up Rs 5.10, or 3.88 percent on the BSE.

Posted by Rakesh Patil
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