Prism Cement annual net profit up by 25%

Prism Cement Limited has posted a PAT of Rs. 242 Crores for the year ended June 30, 2008 as against a PAT of Rs.193 Crores for the previous year ended June 30, 2007, registering a growth of 25%.

Sales grew @ 15% from Rs.883 Crores to Rs. 1020 Crores in the same period, crossing the Rs.1000 Crores mark for the first time. The company is debt-free and has liquid investment of over Rs. 251 Crores as on June 30, 2008.

The significant growth in net profits is driven by increase in sales volume, improved realizations and reduced finance charges, despite increase in input costs. Blended cement contributed to 87% of sales.

The company caters mainly to markets of Eastern UP, North Eastern MP and Western Bihar which are within the radius of 360 kms of its plant at Satna, MP.

The company has the highest quality standards due to modern plant with automated controls.

The strength and other characteristics of its cement are much higher than the BIS requirements. This together with brand building exercise has placed it in the premium price segment. The company has strong marketing network with over 2000 dealers serviced from 46 stocking points without any wholesalers.

The Company’s plan, for a four fold increase in cement capacity to 10 million tonnes by 2011, through its brown field expansion at Satna – Unit II and greenfield plant at Andhra Pradesh, is making headway. The Company has frozen the technical specifications for the brownfield expansion at Satna and the orders for the major equipment will placed in due course. For its greenfield unit at Kurnool District, Andhra Pradesh, the Company has acquired most of the land for its limestone mining operations. The Company has been allotted a coal block in Chindwara District of Madhya Pradesh. The mining plans have been submitted to the concerned authorities for requisite approvals.

The Company’s subsidiary Raheja QBE General Insurance Company Limited is awaiting the requisite approval from the regulatory authorities and is expected to commence business during 2008-09.

Sourced From: Equicorp