India`s Prism Johnson posts quarterly profit on strong construction demand
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India's Prism Johnson reported a profit for the third quarter on Thursday, compared to a loss a year earlier, as the building materials maker benefited from a government push for construction projects ahead of the general elections.
The cement and tiles maker said its net profit after tax came in at 17.8 million rupees ($214,537.96) for the quarter ended Dec. 31, compared to a loss of 447.4 million rupees in the year-earlier period. This was the company's fourth straight quarterly profit.
Net sales rose 3% to 16.50 billion rupees. Revenue from the cement segment, which accounted for nearly half of the company's overall sales, climbed 6.8%, led by higher cement and clinker sales volumes. Raw materials costs rose 5%.
Construction activity has accelerated over the past couple of quarters as the Indian government has increased spending for the housing and infrastructure sectors ahead of this year's general elections due by May.
Last month, cement makers UltraTech Cement and ACC posted quarterly profits above analysts' expectations, helped by price hikes and sustained demand from the housing and infrastructure sectors.
Shares of Prism Johnson climbed 1.5% to a session high of 183.40 rupees after the results came on Thursday. However, the stock later reversed its course and was last down 2.9%.
Prism Johnson shares jumped more than 40% in the October-December period to register their fourth straight quarterly gain.
