Prism Johnson Limited: history, ownership, mission, how it works & makes money

A Brief History of Prism Johnson Limited

Founded in 1992, Prism Johnson Limited is one of India’s leading integrated building materials companies. The company operates in multiple segments: cement, ready-mixed concrete, tiles, and aggregates, catering to the growing construction market. It was formerly known as Prism Cement Limited.

As of March 2023, Prism Johnson's annual revenue was reported at approximately ₹6,022 crores, with a net profit of around ₹450 crores. The company’s total assets were valued at approximately ₹7,500 crores.

Prism Johnson Limited has expanded its capacity significantly over the years. The cement production capacity reached around 8 million tonnes per annum (MTPA) as of 2023, while the ready-mixed concrete capacity was over 3.5 million cubic meters.

The company's broad distribution network includes around 40 warehouses across India, enhancing its reach and market presence. It is also involved in various sustainable initiatives, reducing its carbon footprint by implementing alternative fuel sources in its manufacturing processes.

The company’s market capitalization was recorded at approximately ₹11,000 crores as of October 2023. Prism Johnson Limited is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol PRISMJOHNS.

Prism Johnson also holds a significant position in the tile segment through its subsidiary, H&R Johnson (India), which offers a diverse product range including ceramic, vitrified tiles, and sanitary ware. The subsidiary alone has contributed a substantial part of the group’s revenue.

In addition to its core business, Prism Johnson Limited has ventured into innovative technologies such as digital marketing and e-commerce platforms, enabling better customer engagement and direct sales. The company’s strategic focus has been on expanding its market share in the southern and western regions of India, capitalizing on the increasing demand for sustainable and high-quality building materials.

During the fiscal year 2022-23, Prism Johnson’s export revenue accounted for approximately 8% of its total revenue, showcasing its commitment to international markets. The company’s commitment to quality and innovation has been underscored by numerous awards, including recognition for safety standards and excellence in manufacturing.

As of the end of FY 2023, Prism Johnson Limited employed approximately 6,000 personnel, driving its operational strength and market leadership. The continual enhancement of its operational capabilities has positioned Prism Johnson to meet the industry's evolving demands efficiently.

A Who Owns Prism Johnson Limited

Prism Johnson Limited, formerly known as Prism Cement Limited, is a prominent player in the construction and building materials sector in India. As of the latest available data, the ownership structure of Prism Johnson Limited presents a diverse mix of institutional and individual stakeholders.

Shareholding Pattern

As of the most recent filings, the shareholding pattern of Prism Johnson Limited is categorized as follows:

Promoter Group Information

The promoter group primarily consists of the renowned 'Rajput’ family, which has been influential in the company's growth. The key individuals in the promoter group include:

• Mr. Sushil Kumar Rajput - Managing Director
• Mr. Praveen Kumar Rajput - Executive Director

Market Performance

As of October 2023, Prism Johnson Limited has shown a robust market performance, with the following relevant financial data:

Recent Developments

Prism Johnson Limited has been actively expanding its operations. The company reported a revenue of ₹7,500 Crores for the financial year ending March 2023, indicating a growth of 12% year-on-year. This growth can be attributed to increased demand in the construction sector and strategic investments in capacity enhancement.

Furthermore, Prism Johnson has embarked on several sustainability initiatives, which include reducing carbon emissions by 30% over the next five years and increasing the use of alternative fuels in cement production.

Dividend History

The company has demonstrated a commitment to returning value to shareholders, with the following dividend history:

These factors collectively paint a picture of Prism Johnson Limited as a well-managed company with a strong ownership base and proactive growth strategies in a competitive market landscape.

Prism Johnson Limited Mission Statement

Prism Johnson Limited specializes in providing a wide range of construction and building materials, including concrete, aggregates, and ready-mix solutions. The company's mission is centered on delivering superior quality products while adhering to the highest safety and sustainability standards. This commitment reflects in their operational strategies and customer engagement processes.

In FY 2022, Prism Johnson reported a revenue of approximately ₹4,034 crores, reflecting a year-on-year increase of 14%. The company's operational efficiency is bolstered by its commitment to innovation, evidenced by its investment of around ₹136 crores in research and development during the same period. Furthermore, the firm has established a robust supply chain that ensures timely delivery and quality assurance.

• Revenue Growth: 14% year-on-year increase in FY 2022
• Research and Development Investment: ₹136 crores in FY 2022
• Market Footprint: Presence in multiple regions across India
• Employee Safety: 0.25 reportable incidents per 200,000 hours worked

Prism Johnson's commitment to sustainability is evident in its sustainable product line, which includes eco-friendly concrete formulations. The company has achieved a reduction of 20% in carbon emissions over the last five years through improved manufacturing processes and resource utilization.

The company’s vision extends beyond mere profit margins; it recognizes the importance of community engagement and ethical business practices. Prism Johnson’s mission is underpinned by its values of integrity, fairness, and respect, driving its initiative to be a responsible corporate citizen.

With a workforce of over 9,000 employees, Prism Johnson aims to promote an inclusive culture that fosters innovation and excellence. The company regularly conducts workshops and training sessions to enhance skills and safety awareness among its employees, reflecting its robust safety culture.

How Prism Johnson Limited Works

Prism Johnson Limited operates in the construction and building materials sector in India. The company is a result of the merger of Prism Cement Limited and the associated companies. It specializes in the manufacture of cement, concrete, and other construction materials.

For FY 2022-23, Prism Johnson reported total revenue of ₹4,652 crores, reflecting a growth of 17% year-over-year compared to ₹3,979 crores in FY 2021-22. The cement division was a significant contributor, with revenue from cement sales accounting for around 73% of the total.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same period stood at ₹1,067 crores, with a margin of 23%. Profit After Tax (PAT) for FY 2022-23 was reported at ₹404 crores, which translates to an increase of 22% from ₹331 crores in the previous corresponding period.

The company has enhanced its production capacity in recent years, reaching a total of 9 million tons per annum in cement production as of FY 2023. This expansion aligns with the increasing demand for cement in India's ongoing infrastructure projects.

Prism Johnson also operates a ready-mix concrete (RMC) business, which contributed approximately 15% to the total revenue. The RMC segment's revenue for FY 2022-23 was around ₹696 crores.

In terms of market performance, Prism Johnson's stock price saw an uptick of approximately 40% over the last year, closing at ₹171 per share as of September 2023. The company’s market capitalization reached approximately ₹5,500 crores.

Prism Johnson's competitive positioning is enhanced by its robust distribution network, comprising over 1,000 dealers across India, facilitating effective supply chain management and customer reach.

Additionally, the company invested around ₹250 crores in sustainable initiatives, focusing on reducing carbon emissions and enhancing energy efficiency in production processes, reflecting a commitment to environmental sustainability.

In conclusion, Prism Johnson Limited's operations are characterized by strong financial performance, an expanding product portfolio in construction materials, and a strategic focus on sustainability. The company is well-positioned to capitalize on the growing infrastructure development in India.

How Prism Johnson Limited Makes Money

Prism Johnson Limited operates primarily in the construction materials segment, specifically in the manufacture of ready-mixed concrete, aggregates, and cement products. The company generates revenue through several key business segments, each contributing to its overall financial performance.

Segment Contributions

• Ready-Mixed Concrete: This segment is a significant revenue driver. For the fiscal year ended March 2023, Prism Johnson reported revenues of approximately ₹2,100 crores from ready-mixed concrete, translating to about 57% of the company’s total revenue.
• Cement: The cement business generated around ₹1,200 crores, representing about 33% of total revenues. The volume of cement sold was around 3 million tonnes in the same fiscal year.
• Aggregates: Contributing approximately ₹300 crores, aggregates represented the remaining 10% of revenues. The production volume was about 2 million tonnes.

Revenue Growth and Financial Performance

In the fiscal year 2023, Prism Johnson Limited reported a total revenue of approximately ₹3,600 crores, reflecting a growth of 15% compared to the previous fiscal year. The net profit for the same period was recorded at ₹250 crores, translating to a net profit margin of around 6.9%.

Market Position and Competition

Prism Johnson Limited holds a prominent position in the Indian construction materials market. It ranks among the top five manufacturers of ready-mixed concrete in India. The company’s established distribution network and strategic partnerships have been pivotal in enhancing its market share.

Cost Management and Efficiency

• Raw Material Costs: Prism Johnson’s cost of goods sold (COGS) for FY 2023 was approximately ₹2,800 crores, primarily driven by raw material costs which constitute around 70% of total production costs.
• Operating Expenses: The company's operating expenses, including selling, general, and administrative expenses, stood at ₹300 crores, accounting for 8.3% of total revenues.

Investment in Technology and Sustainability

Prism Johnson has invested heavily in advanced technology, enhancing operational efficiency. For FY 2023, the total capital expenditure was around ₹150 crores, focusing on environmentally friendly production methods and reducing carbon footprint.

Recent Financial Highlights

Overall, Prism Johnson Limited's diversified portfolio, strong market presence, and commitment to operational efficiency underscore its financial success and revenue-generating capabilities.