Prism Johnson Dec qtr results: Net profit at Rs 48.12 cr, sales up 6%

Indian construction materials maker Prism Johnson reported a profit for the first time in five quarters on Thursday, helped by tax gains related to previous periods.

The company reported a net profit of Rs 48.12 crore ($5.5 million), during the October-December period, compared with a loss of Rs 3.45 crore a year ago. 

 

Shares of the Hyderabad-based company spiked up to 8 per cent after the results, before losing all of its gains.

However, at a pre-tax basis, the company's net loss widened to Rs 33.71 crore, from Rs 8.97 crore a year earlier.

Net sales rose 6 per cent on strong performance in its insurance and tilemaking segments, which cushioned weakness in cement and ready-made concrete businesses.

Cement companies have so far reported a mixed set of earnings in the quarter, where they grappled with soft demand and weak prices.

Strong volumes boosted market leader UltraTech, its rival Adani Group's cement businesses Ambuja and ACC, while smaller company Dalmia Bharat took a hit in the quarter due to lower prices.

Cement business, which formed around 39 per cent of the topline, saw a 2.5 per cent drop in sales. Revenue from ready-made concrete businesses also saw a fall of 6.5 per cent.

However, other businesses helped offset the impact. The tilemaking segment rose 4.8 per cent, while insurance business surged over threefold.