Prism Cement today said it will acquire 15.23 per cent stake in BLA power Pvt Ltd for Rs 21 crore, a move that will reduce the firm’s production costs.
“The company has agreed to acquire 15.23 per cent (post acquisition) equity stake for approximately Rs 21 crore in BLA Power Pvt Ltd (BLA Power), which is in the sole business of generating thermal power,” it said in a regulatory filing.
Prism Cement shall enter into a Power Supply Agreement (PSA) with BLA Power for the purchase and consumption of 25 MW of RTC (Round The Clock) power, it added.
This power will be supplied to Prism’s cement plants — Unit I and Unit II at Satna, Madhya Pradesh — under the Group Captive Arrangement under the Electricity Rules, 2005, the filing said.
“This agreement is expected to reduce the cost of cement production,” it added.
For 2015-16 fiscal, the firm’s total standalone expenses were lower at Rs 5,399.70 crore against Rs 5,444.37 crore in 2014-15.
Prism Cement had reported a flat standalone net profit of Rs 61.88 for the quarter ended March 31, 2016, against a net profit of Rs 61.89 crore in the year-ago period.
Total standalone income of the firm fell to Rs 1,455.47 crore in January-March quarter of last fiscal from Rs 1,529.53 crore during the same quarter in 2014-15.
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