Prism Johnson posts net loss of Rs 77 million in Q1 FY25, Real Estate News, ET RealEstate
BENGALURU: India’s Prism Johnson 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 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)
