Prakash Industries Ltd. — Earnings Release 2019

Oct 29, 2018

Prakash Industries Limited

Near 1.0.C.L. Depot, Najafgarh - Bijwasan Road, Bijwasan, New Delhi-110061. CIN : L27109HR1980PLC010724 Tel. : 25305800, 28062115, Fax: 91-11-28062119 E-mail : pilho@prakash.com, Website : www.prakash.com

PIUSE/PR/02/2018

29th October, 2018

Listing Department National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/1 G Block,Bandra-Kurla Complex, Bandra (E) Mumbai - 400051

Company Symbol: PRAKASH

Listing Department BSE Ltd. Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400001

Company Code : 506022

Sub: Press Release

Dear Sir,

In terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing a press release given today by the Company for your information and record.

Thanking you,

Yours faithfully, For Prakash Industries Limited

C\2\_ I ' , ,.. 4~'l i"' 1 1-v f:-J-1 rY\ C>-../

Ashwini Kumar Company Secretary

Encls : as above

Date: 29th October, 2018

FINANCIAL RES UL TS

FOR THE QUARTER AND HALF YEAR ENDED 30T" SEPTEMBER, 2018

QUARTERLY RESULTS

Q2FY2019 vs Q2FY2018 (Rs. in Crores)

During Q2FY2019, the Company has achieved Net Sales of Rs. 950 Crores and EBITDA of Rs. 192 Crores, reflecting growth of 47% and 55% respectively over the corresponding quarter of the last financial year. After providing for interest, depreciation and tax, the Net Profit of the Company for Q2FY2019 zoomed by 86% to Rs. 130 Crores as against Rs. 70 Crores in Q2FY2018. The increase in the profitability is due to operational efficiencies, higher production volumes and better sales realisation.

HALF YEARLY RESULTS

During H1 FY2019, the Company has achieved Net Sales of Rs. 1936 Crores and EBITDA of Rs. 434 Crores, reflecting growth of 49% and 85% respectively over the corresponding period of the last financial year. After providing for interest, depreciation and tax, the Net Profit of the Company for H1 FY2019 jumped by 127% to Rs. 298 Crores as against Rs. 131 Crores in H1 FY2018.

Highlights:

• Highest Ever Sales Volume

Despite monsoon season, the Company has achieved highest ever quarterly sales volume of 2,40,375 tonnes in Q2FY2019, registering growth of 28% as against corresponding quarter of the last financial year. This was achieved due to higher capacity utilisation and operational efficiencies.

• Steel & Power Division

~Sponge Iron Kiln 6 with 15MW WHRB

The company expects completion of 5 th Sponge Iron Rotary Kiln project having capacity of 0.20 Million tonnes alongwith 15 MW Waste Heat Power cogeneration by end of January, 2019. Subsequent to the installation of the 5 th Kiln, the dependence on external procurement of sponge iron will be reduced, which shall significantly add to the bottom line of the company.

~Captive Iron Ore Mine

The company had received Stage-I approval for diversion of Revenue Forest Land from Ministry of Environment, Forest & Climate Change for its Sirkaguttu Iron Ore Mine in Odisha. The company is awaiting final clearances from the competent authorities and expecting the mining operation to commence by end of December, 2018.

• PVC Pipes Division

~PVC Pipes Business

The company has a strong brand presence in North India. The company is extending its brand "Prakash" by penetrating into new territories and enhancing the product mix.

~Flexible Packaging Business

The commercial production of the newly ventured flexible packaging business has started during the quarter and is getting favourable response from the user industry due to utmost focus on quality and timely delivery to the customers.

);.- Demerger of PVC Pipes Division

Subsequent to the approval of the Scheme of Demerger by the Stock Exchanges, Shareholders and the Creditors, the scheme is now under final stages of approval. In view of above, the company expects the Demerger to be effective very shortly.

Disclaimer: This release contains forward-looking statements based on the currently held beliefs and assumptions of the management of Prakash Industries Limited (PIL), which ore expressed in good faith and, in their opinion, reasonable. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or industry results, ta differ materially from the results or performance implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document ore cautioned not to place undue reliance an these farward-looking statements. "" -·