Prism Cement Q1 net profit at Rs 13.24 crore

The company had clocked Rs 47.87 crore net loss in the same quarter last fiscal

Prism Cement today reported Rs 13.24-crore net profit for the April-June quarter on higher sales and margins from the construction raw material business.

The Mumbai-based firm, which is also into tiles (TBK) and ready-mix concrete (RMC), had clocked Rs 47.87 crore net loss in the same quarter last fiscal, it said in a statement.

Total income during the period rose to Rs 1,389 crore mainly due to higher revenue from cement and TBK businesses, as against Rs 1,134 crore in the year-ago quarter. It sold 15.39 lakh tonnes cement and clicker during the June quarter, generating Rs 600 crore sales.

"The margins of the cement division improved as compared to the corresponding quarter last year on account of cost saving measures implemented and revival of demand in the markets of interest," it said.

The Tile Bath Kitchen (TBK) segment's revenue grew by 27% to Rs 490 crore due to higher capacity utilisastion.

The company said RMC division witnessed some early signs of recovery, but the profitability of the division continued to be under pressure due to lower capacity utilisation and increase in costs, especially fuel.

"During the quarter, Prism Trust has sold its entire holding of 1,23,51,600 equity shares held in the company. The company is the beneficiary of the Trust...The Trust has realised approx Rs 88 crore at an average price of about Rs 71.50 per share from this sales transaction," it said.

"The proceeds have been used to reduce borrowings of the company," it added.