Prism Johnson (500338) Q2 25/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue declined to ₹1,538 crore (ex-RQBE) and ₹1,685.38 crore (reported), mainly due to a 17.3% YoY drop in cement revenue; HRJ and RMC revenues were largely flat YoY.

• EBITDA fell 36.1% YoY to ₹57 crore, with margin down 170 bps YoY to 3.7% due to lower realizations and higher costs in cement and HRJ segments.

• Net loss after tax for Q2 FY25 was ₹(91) crore to ₹89.79 crore, compared to a profit in the prior year, reflecting operational pressures and higher finance costs.

• The company acquired 50% equity in Sunbath Sanitary Private Limited in August 2024, making it a subsidiary.

Financial highlights

• Prism Cement revenue dropped 17.3% YoY to ₹623 crore; HRJ down 1.1% YoY to ₹575 crore; RMC down 0.4% YoY to ₹340 crore; Insurance segment revenue was ₹151.34 crore.

• EBITDA per ton for cement plunged from ₹364 in Q2 FY24 to ₹58 in Q2 FY25, mainly due to lower realizations and maintenance shutdowns.

• Free cash flow (pre-capex) was negative ₹181 crore, impacted by large LC payments.

• Net debt increased to ₹1,188 crore; outstanding consolidated debt was ₹1,358.83 crore as of September 30, 2024.

• EPS for Q2 FY25 was ₹(1.78), compared to ₹3.63 in Q2 FY24.

Outlook and guidance

• Management targets to regain past peak performance in the medium term, focusing on cost competitiveness, premium product mix, and capacity utilization.

• Cement demand outlook remains strong, but competition is expected to intensify with new capacity additions in Central India.

• The results include the impact of the Sunbath Sanitary acquisition from August 22, 2024, making current period results not directly comparable to previous periods.