India's Prism Johnson posts Q1 loss on bleak cement demand, lower prices

Prism Johnson

09/08/2024 08:32

BENGALURU, Aug 9 (Reuters) - India's Prism Johnson
 PRIS.NS  posted a loss for the first quarter on Friday, as
bleak demand and lacklustre prices in its key cement business
weighed on the construction materials maker. 
    The company posted a consolidated net loss after tax of 77
million rupees (about $918,000) for the quarter ended June 30,
versus a profit of 178.9 million rupees a year earlier.
    Net sales dropped 8% to 17.47 billion rupees, pulled down by
a 15% fall in its cement segment that makes up 44% of the
topline. 
    During the April-June period, cement makers have grappled
with cement prices hovering around their lowest levels in more
than three years. Demand was also tepid due to the general
elections and heatwaves, which led to a construction slowdown. 
    India's top cement producer UltraTech Cement  ULTC.NS 
missed estimates for first-quarter earnings last month, but
forecast a pick-up in prices and demand from October onwards. 
        "Upcoming capacity additions in Central India by other
cement companies to intensify competition," Prism Johnson said
on Friday, at a time when cement makers are ramping up supply
capacity in the prospect of sustained demand. 
        The company has two cement mills - one each in Madhya
Pradesh and Maharashtra. 
    Prism Johnson also makes ceramic tiles in its much-smaller
HRJ segment, which witnessed a nearly 2% revenue drop
year-on-year. 
    Shares of Prism Johnson dropped as much as 3.7% after the
results were announced.

    ($1 = 83.8900 Indian rupees)
    

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))