I am not sure if I am doing the math correctly. Prakash says in annual report(also in press release few quarters ago) that 10 Lakh ton per annum coal would be available to it. Let me consider the current price per ton for Coal is – $260/- (I have no knowledge about it and my guestimate might be very very wrong). That gives the additional revenue of ~2,000 Cr. to Prakash Ind assuming all the coal is sold in open market. Off course, they will use majority of this coal for making Steel. Despite that they will be left with some coal from 10 lakh ton per year to sell in open market. Even if I assume on 50% benefit, the potential benefit of about 1,000/- cr. once the coal mine becomes operational. There will be rise in expenses to mine and transport the coal, royalty etc. I tend to think, there is a meaningful upside to the earnings some time next financial year due to getting the coal mine operational.
Just wondering is I am missing or miss-calculating something?
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