India's Prism Johnson posts bigger-than-expected Q2 loss on tepid cement demand

Prism Johnson

13/11/2024 07:42

Nov 13 (Reuters) - Indian construction materials maker
Prism Johnson  PRIS.NS  on Wednesday posted a
bigger-than-expected quarterly loss, as cement prices
persistently declined and demand remained tepid.
    The company's consolidated net loss stood at 897.9 million
rupees ($10.6 million) in the three months ended Sept. 30,
marking a second straight quarter of losses. Prism Johnson had
reported a net profit of 1.83 billion rupees a year ago.
    The reported loss is also bigger than the analysts'
estimates of a 122.8 million rupee loss, as per data compiled by
LSEG.
    Average cement prices slumped to a 51-month low around
July-end and the first half of August, and only rose marginally
in the later part of the quarter, Elara Capital said in a note.
    Prices for the overall quarter declined 7% year-on-year, the
brokerage added.
    Demand in the reported quarter was also largely muted as the
industry, already hit by an election-linked slowdown in
construction activity in the June quarter, did not see any
improvement due to above-average rainfall in the country.
    The company's net sales dropped 5.2% to 16.39 billion
rupees, owing to a 17% decline in its cement business, which
makes up 37% of the revenue.
    Prism Johnson's other two businesses - tiles and concrete
mix - posted a 1% and 0.4% drop in revenues in their respective
segment.
    The company's shares, which were in the red ahead of
results, fell 2.5% post results.
    India's top cement maker, UltraTech Cement,  ULTC.NS  missed
second-quarter profit estimates on lower prices and bleak
demand.

($1 = 84.3900 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Sumana Nandy)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))