Like in every quarter, this third quarter too Prism Cement maintains its record of being the first company to announce its results. And compared to the performance of Q2, that of Q3 ended 31st Dec 2009 has been good, both QoQ as well as YoY.
Net sales, QoQ was almost stagnant at Rs.230.65 crore while YoY it was up 7%. In Q2, the higher costs were the bane so this Q3, it corrected this. Operating expenses as a percentage of net sales was lower at 69% compared to 73% in Q2FY10 and 74% in Q3FY09. And this has been reflected in the operating margins to. OPM was up at 31.39% v/s 26.93% in Q2 and 27.40% in Q3FY09. Interest costs which were earlier high have now come down as the investment made in its ongoing brownfield expansion at Satna, Madhya Pradesh, and greenfield plant at Andhra Pradesh are now nearing completion. These projects are likely to come on stream by 2011. NPM was up at 18.20% as against 15.23% QoQ and 14.41% sequentially.
Net profit was up at Rs.41.97 crore, 20% rise QoQ and 35% surge on a YoY.
Once the Madhya Pradesh and Andhra plants are commissioned, the total capacity from the present 2.5 milion tonne would go up to 7.5 million tonne. This is just another addition to the situation of glut already expected in the sector. Also given the agitations in Andhra, the new Greenfield project could see a delay in getting commissioned.
Realisations are up but that is after the lean period it witnessed on account of the monsoon in Q2. Q4 is expected to be more robust as realty is picking up and so are infra projects.
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