Prism Cement completes expansion of vitrified tiles JV

Prism Cement informed the bourses on Wednesday that its step-down Joint Venture (JV), Sanskar Ceramic Limited has successfully completed the expansion of 4.2 million m2 (MSM) per annum Vitrified Tiled capacity at its Dhuva plant at Morbi, Gujarat. The commercial at this plant started on Wednesday.

This expansion will help the company reduce outsourcing of Vitrified Tiles from third parties, making it more self-reliant.

Currently, Sanskar Ceramic is having a capacity of wall tiles at 2.3MSM and Vitrified Tiles at 4.2MSM. Prism Cement sells tiles under the brand name of H & R Johnson (India), which has a capacity of over 65MSM per annum, along with its JVs and subsidiaries.

Prism Cement, part of R Raheja Group, is an integrated building material manufacturer. It is working in four different segments viz. Cement; Tiles, Bathroom & Kitchen (TBK), Ready Mixed Concrete (RMC) and Insurance which contributed to its revenue by 42 percent, 34 percent, 23 percent and 1 percent, respectively in FY17.

Company’s TBK segment has posted a decline in terms of revenue by 14 percent YoY in the recent quarter. The company is focusing on cost optimisation and capacity expansion for this segment. Overall company has posted muted revenue growth in Q4FY17.

In today’s trade, the stock of Prism Cement opened at Rs. 119.9, almost 2.4 percent higher than its previous closing and touched an intra-day high of Rs. 123.6 on the BSE.