Prism Cement Limited

About The Company
Prism Cement Limited is an ISO 9001:2000 certified company promoted by the Rajan Raheja Group. It operates one of the largest single kiln cement plants in the country at Satna, Madhya Pradesh. Equipped with state-of-the-art machinery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in cement technology
About The Financial Results


Prism Cement @52/-is the first major company to announce its results for the first quarter ended 30th September 2009. And the performance was disappointing to say the least, which was amply reflected in the share price yesterday. The stock closed 6.59% lower.
For Q2FY10, the performance on a QoQ is bad while that on a YoY is trailblazing. This indicates two things – The good tidings which it saw in Q1, on account of higher realisations and increased demand was not repeated in Q2. Secondly, YoY performance appears so good due to the base effect, so it is not really time to bring out the bugle and blow the sound of victory.
Net sales, QoQ was down 15% at Rs.229.65 crore while on a YoY was up 41%. EBIDTA was down 49% on a QoQ at Rs.61.85 crore but YoY it was up by a whopping 95%. Net profit was down 53% at Rs.34.97 crore on a QoQ but YoY, it left mouth open with a 133% rise.
Prism’s annual production capacity stands at 2.5 million tonnes, where 80% is sold in UP and Madhya Pradesh. It has undertaken a 2 mtpa brownfield clinker expansion at Satna, to be commissioned in the second half of FY10 and also a 3 mtpa green field clinker expansion at Kurnool, Andhra Pradesh, to be commissioned by the second half of FY11. These will together take capacity to at least 7.5 million tonnes by 2011. This is just another addition to the situation of glut already expected in the sector.

Q2 is usually a lean period for cement as its monsoon when all construction slows down. September is when dispatches are at their lowest. So to some extent, it can also be blamed on the weather. Also prices in September, on an average, dipped Rs 5 a bag across the country. Many new capacities have gone on stream and this has already started putting pressure on the price.
About The Stock
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