Prakash Industries Limited is an integrated steel manufacturing company engaged in the business of manufacturing and sale of steel products and generation of power. The company was incorporated on July 31, 1980, as Prakash Pipes and Industries Limited and later changed its name to Prakash Industries Limited. The company is headquartered in New Delhi, India and has established itself as a significant player in the Indian steel industry with operations spanning across multiple states.
The company is also engaged in iron ore and coal mining businesses, with extraction operations at Sirkaguttu Mine in Keonjhar district of Odisha and focuses on operating Bhaskarpara Coal Mine in Chhattisgarh. This vertical integration strategy allows Prakash Industries to control its raw material supply chain, reducing dependency on external suppliers and providing better cost control.
The company's comprehensive product portfolio includes sponge iron, steel billets, ferro alloys, wire rods, HB wires, and TMT bars. The company produces wire rods and HB wire products for use in binding wires, GL wires, fencing barbed wires, armored sealed wires for heavy electrical cables, nut bolts, nails, screws, alpine products, wire ropes, wire mesh products, and TMT bars for construction and infrastructure projects.
The company operates a captive power plant to meet the requirement of power in steel making at its Integrated Steel Plant using Waste Heat Recovery Boilers and Fluidized Bed Boilers. It also engages in the generation of wind power, diversifying its power generation capabilities and supporting India's renewable energy initiatives.
The company has a market capitalization of ₹2,910 crores as of recent data. The company reported annual revenue of ₹4,014 crores and profit of ₹355 crores for FY25. For the quarter ending March 2025, the company achieved an operating profit margin of 15.58% and profit after tax of ₹90.83 crore, though net sales declined to ₹844.64 crore.
The company's net profit jumped 2.32% compared to the same period last year to ₹90.83 crore in Q4 2024-2025. The company's consolidated net profit increased 3.9% to ₹83.74 crore in Q3 FY25 compared with ₹80.56 crore in Q3 FY24, with net sales rising 4.6% YoY to ₹925.95 crore in Q3 FY25.
• Market Capitalization: ₹2,910 crores (as of recent data)
• Revenue (FY25): ₹4,014 crores
• Net Profit (FY25): ₹355 crores
• Q4 FY25 Performance: Revenue of ₹844.64 crores, Net Profit of ₹90.83 crores
• Operating Margin (Q4 FY25): 15.58%
• Dividend Yield: 0.74%
• P/E Ratio: 8.18
• Book Value: ₹185
The company announced that coal extraction from its Bhaskarpara Commercial Coal Mine has commenced and coal dispatches to its Integrated Steel plant at Champa, Chhattisgarh started from February 15, 2025. The supplies of coal from the mine are expected to result in substantial cost reductions and efficiencies in plant operations.
On November 22, 2024, the company announced that the Government of Chhattisgarh had executed the mining lease for mining of coal over a 30-year period at its Bhaskarpara Commercial Coal Mine in Surajpur, Chhattisgarh. This development is significant as it provides the company with long-term access to coal resources, a critical raw material for steel production.
The company's plants are located in Uttar Pradesh, Madhya Pradesh (two), Punjab and Orissa. The company has modernized its fourth Rolling Mill at Raipur, Chhattisgarh to improve production of value-added products like wire rods and continues to improve operational efficiencies in the Steel Melting Shop by setting up new energy-efficient furnaces and modernizing existing furnaces.
The company has technical collaboration with Lurgi, Germany, for the sponge iron project, demonstrating its commitment to adopting advanced technology in its manufacturing processes.
Prakash Industries is an integrated manufacturer of finished steel products using the direct reduction iron (DRI) route. The company's strategic focus on vertical integration, from raw material mining to finished steel products, positions it well in the competitive steel industry landscape. The recent commencement of coal mining operations at Bhaskarpara is expected to significantly improve the company's cost structure and operational efficiency.
The company's diverse product portfolio catering to construction, infrastructure, and industrial applications provides it with multiple revenue streams and reduces dependency on any single market segment. With India's continued focus on infrastructure development and urbanization, Prakash Industries is well-positioned to benefit from the growing demand for steel products in the domestic market.
