Prism Cement's loss wides in Q2; divest stake in insurance JV

Prism Cement's standalone net loss widened to Rs 33.26 crore for the quarter ended September 30, against a net loss of Rs 19.76 crore in the year-ago period.

Total standalone income rose by 5% to Rs 1,398.34 crore in the July-September quarter of the current fiscal from Rs 1,337.19 crore in the same quarter of 2014-15, it said in a BSE filing.

The firm said, during the September quarter, its Board approved the sale of 23% stake in the firm's joint venture (JV) with Australia's QBE Group -- Raheja QBE General Insurance Company Ltd (Raheja QBE) -- for about Rs 103 crore.

Prism Cement sold 13.45 lakh tonnes (LT) of cement and clinker in the second quarter this fiscal against 12.92 LT during the same quarter of 2014-15.

It also paid Rs 7.33 crore as contribution towards the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET), the company said.

"The company had taken various cost rationalisation measures in 2014-15 such as resorting to imported coal, increase in imported pet coke consumption, reduction in power consumption among others," it added.

During the quarter ended September 30, 2015, the Board has, subject to requisite regulatory approvals, agreed to reduce its stake in Raheja QBE General Insurance Company Ltd (Raheja QBE), the general insurance subsidiary of the company, from 74% to 51%.

"The existing partner in Raheja QBE, mainly QBE Group, Australia, has agreed to acquire the same for an approximate consideration of Australian Dollar 21,500,000 (equivalent to approximately Rs 103 crore)," the firm said.

On outlook, Prism Cement said the short term scenario remains "challenging", however government initiatives such as housing, smart cities and the push to infrastructure aided by a stable inflation and rate cut bodes well for the medium and long term economic outlook.

Company shares were trading at Rs 89.30 apiece, down over 4%, on the BSE in the afternoon trade.