India's Prism Johnson posts quarterly profit on strong construction demand

Prism Johnson

01/02/2024 07:53

BENGALURU, Feb 1 (Reuters) - India's Prism Johnson
 PRIS.NS  reported a profit for the third quarter on Thursday,
compared to a loss a year earlier, as the building materials
maker benefited from a government push for construction projects
ahead of the general elections.
    The cement and tiles maker said its net profit after tax
came in at 17.8 million rupees ($214,537.96) for the quarter
ended Dec. 31, compared to a loss of 447.4 million rupees in the
year-earlier period. This was the company's fourth straight
quarterly profit.
    Net sales rose 3% to 16.50 billion rupees. Revenue from the
cement segment, which accounted for nearly half of the company's
overall sales, climbed 6.8%, led by higher cement and clinker
sales volumes. Raw materials costs rose 5%.    
    Construction activity has accelerated over the past couple
of quarters as the Indian government has increased spending for
the housing and infrastructure sectors ahead of this year's
general elections due by May.
    Last month, cement makers UltraTech Cement  ULTC.NS  and ACC
 ACC.NS  posted quarterly profits above analysts' expectations,
helped by price hikes and sustained demand from the housing and
infrastructure sectors.
    Shares of Prism Johnson climbed 1.5% to a session high of
183.40 rupees after the results came on Thursday. However, the
stock later reversed its course and was last down 2.9%.
    Prism Johnson shares jumped more than 40% in the
October-December period to register their fourth straight
quarterly gain. 

($1 = 82.9690 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru; Editing by Subhranshu
Sahu)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))