Prism Cement Ltd. |Q2FY15 Result Update :: IndiaNivesh

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Prism cement reported Q2FY15 standalone numbers below our expectation due to
lower margin from all segment like cement, TBK and RMC business. Revenue
increased by 15.4 YoY to Rs 133.7 bn (slightly ahead of our expectation of Rs 125.2
bn) on account of 20% growth in Cements business and 15.6% growth in TBK
segment. EBITDA decreased by 75% YoY and 59% QoQ to Rs. 462 mn in Q2FY15.
EBITDA margins were at 3.1%, below our expectation of 7.5% dragged by higher
finished goods purchase, freight outward expenses and increase in other expenses.
Increase in TBK segment trading activity led to 27% YoY increase in Purchase of
traded goods. The company reported loss of Rs. 198 mn due to sharp contraction of
operating margin and higher interest cost. Due to de-allocation of coal Sial Ghogri
coal block by Supreme Court, we cut our FY16E cement EBITDA margin from 13.1%
to 10%, accordingly we reduce our SOTP based target price to Rs. 103 from Rs. 117
earlier

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