Prakash Industries

The company has reported growth of 9.20% in total operating income (TOI) to ₹4,014.35 crore in FY25, compared to ₹3,677.77 crore in FY24, considering improved demand despite sales realisation declining. The growth in scale was largely supported by volume growth in the company’s products to 9.78 lakh metric tonne (PY: 8.55 lakh metric tonne) owing to healthy domestic demand. However, this growth was partially offset by a decline in average sales realisation from ₹42,934 per metric tonne (per

PIL’s steel manufacturing unit in Champa is strategically located in the vicinity of coal reserves, iron ore mines in Chhattisgarh and the Bhaskarpara commercial coal mine, facilitating economical transportation of raw material and finished goods. The coal supply from the Bhaskarpara coal mine is expected to result in substantial cost reductions and efficiencies in its plant operations. Moreover, the iron ore mine allocated at Sirkaguttu is also in vicinity of the plants, leading to lower freigh

PIL has a comfortable operating cycle of 37 days in FY25, though elongated from 21 days in FY24, primarily due to an increase in average inventory holding period to 40 days (PY: 35 days). The rise in inventory days is attributable to inventory build-up in March 2025, driven by both the anticipation of an expected increase in steel prices and the commencement of the company’s coal mine operations in February 2025, which resulted in higher raw material stocking. The collection period increased to

The company has a comfortable capital structure marked by a strong net worth base of ₹3,318.65 crore as on March 31, 2025 (PY: ₹3,023.75 crore). The increase in the net worth base was primarily due to accretion of profits. Overall gearing stood comfortable at 0.13x as on March 31, 2025 (PY: 0.12x), though the debt levels increased to ₹432.15 crore in FY25 from ₹362.28 crore in FY24, owing to infusion of ₹88.85 crore unsecured loans from promoter in FY25, to support CAPEX requirement of the

PIL is presently being managed by Ved Prakash Agarwal (Chairman) with over four decades of experience in similar business and by Vikram Agarwal (Managing Director) with over two decades of experience into similar business. The company has a professional management team to support the smooth operations on day-to-day basis, though it has a history of debt restructuring in 1998 and 2017. The Syndicate Bank-related case, arising from a 2014 CBI FIR alleging bribery, was quashed by the Delhi High Cou

Applicable criteria Policy on Default Recognition Financial Ratios – Non financial Sector Liquidity Analysis of Non-financial sector entities Assigning ‘Outlook’ or ‘Rating Watch’ to Credit Ratings Manufacturing Companies Iron & Steel

PIL’s major raw materials are steel scrap, coal, iron ore, and alloys, prices of which are linked to the market and determined periodically. This exposes the company to raw material volatility, which may have a bearing on its profitability margins. This risk is partially mitigated as the company has a long -term contract for supply of coal with Coal India Limited at notified prices and expects stabilisation of operations in its Bhaskarpara coal mine unit in FY26 onwards for which commencement of

Steel sector has low entry exit barriers and thus has presence of many unorganised players catering to the local and regional demands. The metal industry moves closely with the business cycles including growth in the economy and seasonal changes in the demand-supply situations in the end-user segments. Majority players tend to benefit in the upside of the cycle as is the current market scenario. Regular deposits towards FCCB obligations in accordance with payment schedule set by the Court

The company has been adhering to the payment schedule set by the Delhi High Court and is regularly depositing the scheduled instalments toward its FCCB obligations. A substantial portion of the amount directed by the court has already been deposited . The company had issued USD 60 million, 5.25% FCCBs with a tenor of five years on April 26, 2010, maturing on April 30, 2015, which were subsequently restructured. As of March 31, 2025, PIL ha d outstanding FCCBs of USD 11.15 million (equivalent to

Growth in scale of operations with sustained profitability margins The company has reported growth of 9.20% in total operating income (TOI) to ₹4,014.35 crore in FY25, compared to ₹3,677.77 crore in FY24, considering improved demand despite sales realisation declining. The growth in scale was largely supported by volume growth in the company’s products to 9.78 lakh metric tonne (PY: 8.55 lakh metric tonne) owing to healthy domestic

PIL’s steel manufacturing unit in Champa is strategically located in the vicinity of coal reserves, iron ore mines in Chhattisgarh and the Bhaskarpara commercial coal mine, facilitating economical transportation of raw material and finished goods. The coal supply from the Bhaskarpara coal mine is expected to result in substantial cost reductions and efficiencies in its plant operations. Moreover, the iron ore mine allocated at Sirkaguttu is also in vicinity of the plants, leading to lower freigh

PIL has a comfortable operating cycle of 37 days in FY25, though elongated from 21 days in FY24, primarily due to an increase in average inventory holding period to 40 days (PY: 35 days). The rise in inventory days is attributable to inventory build-up in March 2025, driven by both the anticipation of an expected increase in steel prices and the commencement of the company’s coal mine operations in February 2025, which resulted in higher raw material stocking. The collection period increased to