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					                                     Investor Update
April 29, 2011

Prism Cement Limited today announced audited financial results for the year ended
March 31, 2011

Financial Overview (Consolidated and Audited for the year ending March 31, 2011)

                                             (Figures in Rs. Crores unless mentioned otherwise)
 Particulars                                                                2010-11     2009-10
 Sales                                                                          3605        3027
 Profit before finance cost, tax, depreciation, and exceptional items             386         563
 Profit before finance cost, tax, and exceptional items                          260         460
 Profit before tax                                                               147         380
 Net Profit after tax                                                             104         257
 Share of minority interest                                                         1           3
 Net Profit                                                                      105         260
 EPS* (Rs.)                                                                      2.14        5.29

     •   EPS has been computed on capital base excluding the shares issued to the Prism

Segmental Revenue
                                                       (Figures in Rs. Crores)
                               2010-11        2009-10
                          Cement TBK RMC Cement TBK RMC
                  Revenue   1062 1472  913 1021 1188  680

Performance Review and key developments

During the year, the Company produced 27.17 lakh tons of clinker and 31.56 lakh tons of
cement and dispatched 2.42 lakh tons of clinker and 31.49 lakh tons of cement, aggregating to
total dispatches of 33.91 lakh tones. In the previous year, the Company had dispatched 3.53
lakh tons of clinker and 25.65 lakh tons of cement, aggregating to total dispatches of 29.18 lakh

The sharp increase in raw material, power and fuel costs, coupled with subdued price
realisations impacted the margins of the Cement Division substantially during the year under
review, despite a growth in volumes.

H & R Johnson (India) (HRJ) Division operates in the TBK (Tile Bath Kitchen) Segment. The
Division’s sales revenue during the year were Rs. 1,472 Crores, thereby achieving a growth
rate of 24% when compared to last year. Increase in fuel cost, excise duty, and marketing
activities have resulted in reduced profitability for the Division during the year.

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The Division continued to strengthen its brands and build its distribution network. It participated
in ACETECH exhibitions at Mumbai and Chennai, India Ceramics exhibition at Ahmedabad and
Yatra Kitchens Exhibition at Bangalore to showcase its products and received very positive
response. ‘House of Johnson’ retail outlets were inaugurated in Mumbai, Pune and Bangalore
during the year.       Based on the strong brand equity and leadership, ‘Johnson’ brand was
awarded the Reader’s Digest Trusted Brand Award 2010 (Gold) in the category of Wall and
Floor tiles. In addition, Marbonite brand was conferred with the ‘Power Brand’ status during the

HRJ Division received very positive response on trend-setting innovative products last year—
Marbonite StainFree, Endura ScratchFree and Johnson Germ-Free. Moreover, Johnson
Digital, which is manufactured using state-of-the art Inkjet Printing System, was launched
during the year and the response from the market has been encouraging. HRJ is also entering
into the segment of Quartz and Agglomerated Marble. During the year, the Division has started
setting-up of the team and initiated the process to establish these new product categories.

Ceramic World Review, a reputed magazine published from Italy, conducted a study in 2010 of
the world’s top ceramic tile manufacturers. H & R Johnson (India) was listed at number 16 in
the list of 25 companies being the only Indian entity to feature in the ranking.

During the year, RMC Readymix (India) took efforts to increase productivity from its operating
plants. It further added capacities in new markets where the demand was good and its
presence was not there. As a result, the Division’s revenue grew by 34% with improved


The Company commenced commercial production at its second cement plant - Unit II at Satna,
Madhya Pradesh during the year under review.

The Company is awaiting clearance for land alienation from the State Government for its
cement plant at Kurnool District, Andhra Pradesh, after which further project activity will

The Company has been allotted a Coal Block in the Chhindwara District of Madhya Pradesh
and has received the requisite approvals. It is planned to acquire land and start the initial mines
development activity in the current year.

H & R Johnson (India) has successfully installed and commissioned the Inkjet Printing System
at its Pen Plant. The commercial production commenced during the year.

During the year, LNG facility was commissioned at Kunigal tile manufacturing plant. Also, the
turbine at Pen tile manufacturing plant was upgraded during the quarter. These initiatives
would enable the Division to minimise the impact of cost increases on account of fuel.

During the year, remaining 50% stake in Milano Bathroom Fittings Pvt. Limited (MBF) was
acquired. Post acquisition, MBF has become a wholly-owned subsidiary of the Company and
continues to be managed through HRJ Division. MBF has a manufacturing plant in Baddi,
Himachal Pradesh. The Plant’s capacity has been increased from 3 lakh pieces per annum to
6 lakh pieces per annum in March, 2011. It is now putting-up another plant in Jammu to
manufacture bath fittings with a capacity of 3 lac pieces per annum which is likely to be
operational by Q4, 2011-12.

The Company increased its stake in the subsidiary Silica Ceramica Pvt. Limited (SCPL) from
65.7% to 92.6% during the year under review. SCPL has increased its capacity from 7,500 m2
per day to 16,500 m2 per day in April, 2011. Subsequent upgrade to manufacture value-added
products is likely to be completed by Q2 of FY 2011-12. A further capacity expansion for the
Plant is in progress to increase the capacity by 9,000 m2 per day. This further expansion is

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likely to be completed by Q4 of FY 2011-12 and would increase the Plant capacity to 25,500 m2
per day.

RMC Readymix (India) added twenty-one new plants during the year. This includes own plants
in commercial vertical as well as some in the Mega Project vertical. In addition, the Division
operated customer plants in its Mega project vertical.

In Aggregate operations, RMC Readymix (India) started operations in Mangalore and added
another plant in Orissa. Towards the year end, the division has commenced operating an
aggregate crusher in Vasai, Thane.

Industry Scenario / Future Outlook

Although cement demand was muted with a growth of about 5% for the year under review, the
demand in the markets of Cement Division’s interest witnessed a growth of around 10% during
the same period. The government's continued thrust on infrastructure and housing is expected
to help the cement demand to grow at an annual rate of 9-10% in the current year. In the
markets where the Cement Division operates, the pace of demand growth is expected to be

Bulk of H & R Johnson (India)’s products are targeted towards affordable housing segment
which is growing at a healthy rate and is likely to continue in future as well due to India’s
economic growth and changing demographics. The robust distribution network, strong brand
equity, wide-spread manufacturing locations, and a comprehensive product portfolio of tiles,
baths, and kitchens enable us to enjoy a distinct competitive advantage over others in the

The Ready-mixed Concrete Industry is over 15 years old and has been growing at a healthy
rate over the last few years. With the Mega Projects Vertical, RMC Readymix (India) is
focusing on the infrastructure segment as well. The markets in 2-tier & 3-tier cities have also
been showing maturity which will help the industry’s growth.

About Prism Cement Limited

Prism Cement Limited is one of India’s leading Building Materials Company, with a wide range
of products from cement, ready-mixed concrete, tiles, bath products to kitchens. The company
has three Divisions, viz. Prism Cement, H & R Johnson (India), and RMC Readymix (India).
Prism Cement Limited also has a 74% stake in Raheja QBE General Insurance Company
Limited, a JV with QBE Group of Australia.

The equity shares of the company are listed on the Bombay and National Stock Exchanges.

Prism Cement
Prism Cement commenced its production in August 1997 and manufactures Portland
Pozzollana Cement (PPC) with the brand name 'Champion' and Ordinary Portland Cement
(OPC). It has the highest quality standards due to efficient plant operations with automated
controls. It caters mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km
of its plant at Satna, MP. It has a wide marketing network with about 2,400 dealers serviced
from 70 stocking points.

H & R Johnson (India)
Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles in
India. HRJ has consistently maintained its leadership position in the field of tiles over the past
five decades. Today, HRJ enjoys the reputation of being the only company in India to offer end-
to-end solutions of Tiles, Sanitaryware, Bath Fittings and Kitchens.

Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath products,
kitchens, laminate and engineered wooden flooring. Marbonite brand offers a complete range

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of vitrified tiles, and Endura offers industrial tiles and tiles for special applications like
bathrooms / high traffic areas / swimming pools etc.

RMC Readymix (India)
RMC Readymix (India) is one of India’s leading ready-mixed concrete manufacturers. Set-up in
1996, RMC currently operates 80 ready-mixed concrete plants in 31 cities/towns across the
Country. RMC has also ventured into the Aggregates business and operates large quarries and
crushers. At present, RMC has 8 quarries across the country. RMC has been at the forefront in
setting high standards for plant and machinery, production and quality systems and product
services in the ready-mixed concrete industry.

Investor Relations

Prism Cement Limited is committed to creating long-term sustainable shareholder value
through successful implementation of its growth plans. The company’s investor relations
mission is to maintain an ongoing awareness of its performance among shareholders and
financial community.

For additional information, please contact:

Mr. Aditya Bob Mahendru
Deputy General Manager (Corporate Planning)
Prism Cement Limited
Tel: 91-22-3064-7488 / 91-22-2654-7689

Windsor, 7th Floor, CST Road
Kalina, Santacruz (E)

Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number
of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The
company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the

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