Prism Johnson Ltd

Meeting Details

• Date: Tuesday, August 25, 2026; Time: not specified.
• Type: One-on-One and Group.
• Mode: Physical.
• Organizer: HDFC Securities Limited.
• Place: Prism Johnson Ltd office premises, Mumbai.
• Company participant: Chief Investor Relations Officer.
• Purpose: Participation in analyst/investor conference.

Coal linkage expansion

• ECL to supply 24,000 MT per year; SECL to supply 104,000 MT per year.
• Total incremental linkage 128,000 TPA, expanding to 2,79,400 TPA.
• Existing linkage 1,51,400 TPA, with 1,11,400 TPA expiry Feb 2027.
• Contract period: 10 years from execution of Fuel Supply Agreement.
• Total annual contract value approx Rs 70.49 crore.
• Execution within 90 days from LOI dated Aug 17, 2026.
• Domestic entities; no related party involvement.
• No governance or management changes reported.

Business overview & strategy

• Core segments are cement, tiles, RMC, and construction chemicals.
• Raheja QBE divestment sharpens focus on Prism Johnson's core materials.
• Asset-light model includes outsourced cement grinding, strategic tile sourcing, and franchised RMC.
• Balance sheet aims for leverage reduction post-divestment.

Operational highlights (Q1 FY27)

• Q1 FY27 EBITDA ₹221 Cr; margin 12.0%, YoY +26.6%.
• Raheja QBE divestment completed July 1, 2026; effect in Q2 FY27.
• Standalone gross debt ₹493 Cr as of Aug 6, 2026.
• Prism Cement capacity 5.6 MTPA; premium mix 54%.
• RMC volumes 9.0 lakh m3; revenue ₹419 Cr; EBITDA ₹42.9 Cr.

Financial performance (Ex-RQBE)

• Revenue (Ex-RQBE) ₹1,844 Cr in Q1 FY27; QoQ -13%, YoY +2.7%.
• EBITDA ₹221 Cr; margin 12.0%.
• Cash & equivalents ₹606 Cr; LC & CAD Bills ₹77 Cr.
• Net debt (standalone) ₹577 Cr as of Jun 30, 2026.

Strategic priorities & outlook

• Focus on cement, tiles, RMC, and construction chemicals driving growth.
• Maintain asset-light model; pursue selective capacity expansions in target markets.
• Launch AI ACORN platform to optimize concrete mix designs.
• Indo-Sweden decarbonisation program participation; LeadIT partnership.

Risks & mitigation

• Headwinds include higher fuel costs and raw material inflation.
• Mitigations: cost discipline, calibrated pricing, asset-light mix, energy pass-through.
• Market pricing pressure and cement competition addressed via premium products.

Governance & leadership

• Board comprises 33% independent directors; one woman director.
• Average director tenure above eight years.
• Leadership: MD Vijay Aggarwal; Cement CEO Raakesh Jain; HRJ Chandak; RMC Roy.

Capital structure & liquidity

• Raheja QBE divestment completed July 1, 2026; sale value ₹325.87 Cr.
• Standalone gross debt ₹493 Cr as of Aug 6, 2026.
• Cash, bank balances ₹606 Cr as of Jun 30, 2026.

Financial results approved

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Limited Review Reports by auditors attached; reviewed and recommended by Audit Committee.
• Results available on company website.

Bank Guarantee forfeiture

• Bank Guarantee of ₹10 Lakhs forfeited; MPCB directed Kotak to encash for alleged consent non-compliance.
• Communication received from Kotak Mahindra Bank on July 17, 2026.
• Company has not received any communication from MPCB regarding the alleged non-compliance.
• Immediate financial impact limited to encashment of ₹10 Lakhs; no material impact on operations.

Overview

• Standalone BRSR for FY2025-26; main activities cement, tiles, ready-mixed concrete.
• Standalone reporting boundary with limited assurance by BDO India Service Private Limited.
• Core units: Prism Cement, H&R Johnson India, and RMC Readymix.
• Renewable energy share reached about one-third of total power; TSR 4.15%.
• CSR spend of Rs 0.77 crore focused on Satna community.

Key ESG Risks & Opportunities

• Energy/GHG risks; mitigated by AFR, renewables expansion, WHRS, and efficiency programs.
• Water stress risk; ZLD, rainwater harvesting, groundwater recharge, and recycled water use.
• Waste management and circular economy risk; 4R principles and safe disposal via SPCB recyclers.
• Biodiversity risk; LEAP assessments, TNFD alignment, afforestation and mine rehabilitation.
• Human rights risk; formal policy, due diligence, SA 8000 certification, grievance mechanism.
• Innovation & sustainable products opportunity; investment in lower-carbon building materials.
• Diversity & inclusion opportunity; diverse workforce supports resilience.
• Data protection and privacy risk; cybersecurity measures in place.

Governance & Policy Highlights

• Risk Management Committee oversees sustainability; Executive Committee guides strategy.
• Policies include Anti-Bribery & Anti-Corruption, Whistle-blower, Human Rights, POSH.
• BDO India provided limited assurance on select BRSR indicators.
• No material penalties; compliance reviewed quarterly.
• Cyber Security and Data Privacy policy in place.
• ABAC policy with Vigilance Officer oversight and whistleblower safeguards.

Social Responsibility & Workforce

• Total employees 4,238; female 235; total workers 5,627; female 113.
• 4% of revenue spent on employee well-being.
• 7% of employees and 1.3% of workers trained on human rights.
• Return-to-work rate after parental leave: 75% for female employees and workers.
• POSH complaint filed: 1; resolved through conciliation.
• CSR spend Rs 0.77 crore; Satna-focused community initiatives.
• Board representation of women: 11.11%.

Environmental Performance

• Renewable energy share: about 32.7% of Prism Cement power; solar 9.8%, WHRS 22.8%.
• Scope 1 emissions: 4,059,586 tCO2e; Scope 2: 257,930 tCO2e.
• Total energy: 1,78,01,685 GJ; energy intensity 0.00024 GJ per turnover.
• Total water withdrawal: 17,40,754 kl; consumption: 19,21,185 kl; ZLD across operations.
• Total waste generated: 65,410 tonnes; 21,747 recycled; 41,602 disposed.
• REC purchases: 13,433 (Unit-1) and 9,023 (Unit-2) to support renewables.
• Afforestation: ~57,099 trees planted; Green belt initiatives.

Stakeholder Engagement & Complaints

• Stakeholder groups: Customers, Government, Employees, Suppliers, Investors, Local Communities; need-based frequency.
• Customer satisfaction index: 93% (Prism Cement); 91% (Prism RMC).
• Grievances: POSH complaint filed; others nil; compliance email provided.
• Compliance email: compliance@prismjohnson.in.
• CSR policy governed stakeholder engagement; Stakeholder Engagement Policy on website.

Other Notable Metrics

• 94% of critical suppliers signed Supplier Code; 51% of procurement from critical suppliers.
• No data breach reported; cyber security policy in place.
• No product recalls reported; labeling complies with regulations.
• Affiliations with 10 trade associations; no public policy advocacy.
• REC purchases and potential carbon credits under newer schemes.

AGM Details

• Date and time: 7 August 2026 at 4:30 PM IST.
• Mode: VC/OAVM.

Key Resolutions

• Ordinary: Adoption of standalone and consolidated financial statements for FY2025-26.
• Ordinary: Re-appointment of Aggarwal as Director (retiring by rotation).
• Ordinary: Re-appointment of Jain as Director (retiring by rotation).
• Special: Ratification of remuneration of Cost Auditors (₹10.50 lakh plus taxes).
• Special: Private placement of NCDs/other debt up to ₹1,250 crore.
• Special: Fund-raising via equity/securities up to ₹500 crore.

Director Changes

• Sanjay Roy appointed as Executive Director & CEO (RMC) w.e.f. 2 Mar 2026.

Other Material Approvals

• Divestment of Raheja QBE General Insurance Company Limited approved via postal ballot; IRDAI clearance noted.