Thanks for sharing.
Don’t understand why this measure is being taken.
Thanks for sharing.
Don’t understand why this measure is being taken.
Reason only comes to public when nothing left to be done indication given in advance and that is very high pledging by promoters, which is not being discussed as it should have done.
Prakash Industries AR 2018 highlights.
2935 crores as against
2174 crores in the previous year. The EBITDA for the year was 596 crores in comparison to
265 crores in the previous year reflecting a growth of 125%. profit after tax of the Company grew by more than 390% to 384 crores as against
78 crores in the previous year, which resulted in EPS of 25.58 in the current year as against
5.97 in the previous year.2,741 lakhs for the year ended on March 31, 2018 has been adjusted against Securities Premium Account by the Company in terms of a court order. Further, the MAT Credit Entitlement not availed within the time allowed aggregating to
4,931 lakhs for the year ended March 31, 2018 has been adjusted against retained earnings. Had these been accounted for pursuant to Ind AS -12 ‘Income Taxes’, net profit and total comprehensive income after tax for the year ended on March 31, 2018 would have been lower ` 7,672 lakhs.On Taxation Matter.
Company shows it’s major profits from Power Segment as profits from generation of power is exempt u/s 80-IA of income tax act. 100% profits is deductible for a period of 10 years for the plants commissioned before 31st March 2017. As per 2012 Annual Report of the company, it commenced 100 MW power plant capacity in 2012 (plan was to add 625 MW by 2015). Thereafter they have kept on adding capacity every year (for e.g. 15 MW in 2018). We need better understanding of the following points.
Did anyone know the status of CBI case against Prakash Industries ? I googled, but couldn’t find the answer.
Hi,
Thanks for the summary. I have a few questions. If anyone can throw light, it will be very useful.
When steel is doing great, what is the need to get into flexible packaging? Is there a connection at all? Am I missing some synergy here?
Company is saying, it will triple its steel capacity from 1 m to 3m in next few years. Is it a doable target or too aggressive? What could the demand situation down the years?
Is there any talk or plan on dividends?
Regards
Madhvaan.
Disc: hold in my portfolio.
Can money be siphoned in the name of capital work in progress? The AR has no detail on the capital expenditure.
Regards
The current Power capacity is around 230 MW.
Yes, the company is enjoying tax benefits, however the same is subjected to MAT.
I presume that the capacity utilization is around 70% and 100% of it is for captive consumption.
The power transfer to Steel Division is at market determined rate and there guidelines have been defined for fixing this rate.(It is not at arbitrary rate.) They cannot overcharge on their will.
Yes, If the management is not trust worth then money can be siphoned off in a number of ways including CPIW. The discount at which this company is available is only because the Mr. Market does not have a trust on the promoters.
When steel is doing great, what is the need to get into flexible packaging? Is there a connection at all? Am I missing some synergy here?
The flexible packaging is part of their plastic business. Plastic business is altogether a different vertical. The company is in plastic bushiness for the last more then 15 years .
hope it clarifies
Company is saying, it will triple its steel capacity from 1 m to 3m in next few years. Is it a doable target or too aggressive? What could the demand situation down the years?
It is very aggressive target and alos very capital intensive. The demand of steel however seems to be robust in coming 2 to 3 years.
Is there any talk or plan on dividends?
The company has never been a very good dividend payer and looking to the CAPEX plans the dividend payout if any will also be very less.
Thanks a lot. Sure, it clarfies.
If you consider next 5-10 years, demand is certainly not a problem. Fact of the matter is that for the Indian economy to accelerate , which is the most likely scenario, steel supply is a constraint. If India and China both do well simultaneously then steel demand will certainly outweigh supply.
Look at the recent example of Railways alleging SAIL for not being able to supply the rails at required pace.
Regards
Prakash Industries commences trial production of flexible packaging
Heard that it will be out of ASM on 20th July. Can anybody confirm? I looked at all important sites but could not find the source, hence asking here
My view is whether the stock is in ASM or out of ASM it hardly matters for investors, it affects only traders.
I think, if true, it is positive for price movement. ASM induces negative sentiment and depresses the prices. Let us try to get confirmation of this development. One can surely expect a very positive Q1. We also need to know if Jhunjhunwala has increased /decreases his holding in Q1.
PRAKASH INDUSTRIES REGISTERS HIGHEST EVER
QUARTERLY SALES VOLUME IN Q1 FY2019