Prism Johnson Ltd Management Discussions

Economic Overview

Global Economic Overview

According to the World Economic Outlook report released in April 2025 by the International Monetary Fund (IMF), global growth is projected to slow from an estimated 3.3% in 2024 to 2.8% in2025 due to escalating trade tensions and elevated policy-induced uncertainty. It also cautions that shifts in policy stances or worsening market sentiment could further tighten global financial conditions. Global headline inflation is anticipated to declineto 4.3% in 2025 and 3.6% in 2026.

The IMF anticipates that Emerging and Developing Asia will grow by 4.5% in 2025 and 4.6% in 2026, down from 5.3% in 2024, reflecting the broader impact of global trade disruptions.

Indian Economic Overview

According to the Economic Survey 2024-25, Indias real GDP growth is estimated at 6.4% for 2024-25, aligning with the nations decadal average. This growth is primarily driven by an increase in private final consumption expenditure, reflecting a rebound in rural demand. Indias GDP is expected to grow between 6.3% and 6.8% in 2025-26, underpinned by strong rural consumption, continued capital inflows, and improving business expectations. However, these projections are subject to potential risks, including geopolitical tensions and trade uncertainties, which could impact growth.

In the Union Budget for 2025-26, the Government of India has allocated Rs. 11.21 Lakh Crores towards capital expenditure, representing a 10% increase over the revised estimate of Rs. 10.18 Lakh Crores for 2024 25. This reflects the Centres continued commitment to infrastructure-led growth, even amidst fiscal consolidation efforts. The capex outlay accounts for approximately 3.1% of GDP for 2025-26, sustaining momentum in public investment across key sectors, such as roads, railways, housing and urban development.

Industry Overview

Cement Industry

As of March 31, 2025, India was the second largest producer of cement globally after China, with an estimated installed capacity of around 700 mn tonnes per annum (MTPA) as per the Cement Manufacturers Association (CMA) website. Per capita annual cement consumption stood at 290 kg during 2024-25. According to the Ministry of Commerce and Industry, cement production in India rose by an estimated 6.3% in 2024-25. This was primarily driven by increase in demand from the infrastructure and real estate sectors. Increased capital expenditure by the Government of India, especially under the National Infrastructure Pipeline (NIP), Bharatmala and Sagarmala projects and accelerated urban housing construction have contributed to an uptick in cement consumption in the second half of 2024-25. Moreover, state-led programmes like Pradhan Mantri Awas Yojana (PMAY), Smart Cities Mission, and Jal Jeevan Mission have also contributed to overall demand for cement.

According to the FY26 CemenToutlook published by India Ratings and Research (Ind-Ra), the Indian cement industry is expected to register mid-single-digit growth in demand during 2025-26, following a subdued 2024-25. This growth is likely to be supported by a revival in infrastructure activity post-general elections, a recovery in rural housing led by improved real wage growth and continued momentum in urban residential demand, albeit at a moderated pace due to high base effect.

The cement industry has announced capacity additions of around 160 MTPA from 2024-25 to 2026-27. However, as per Ind-Ra estimates, only 75-80% of the planned capacity is likely to be commissioned within this period. Ind-Ra expects capacity utilisation to remain range-bound at 67-68% in 2025-26.

In the past few years, the cement sector witnessed significant consolidation among the large players. This trend is likely to continue in 2025-26. As per Ind-Ra estimates, the market share of the top 10 cement companies in India is likely to have increased to around 78% by the end of 2024-25. up from 69% in 2019-20.

Despite a favourable long-term outlook, the sector continues to face certain risks. These include volatility in input costs, especially petcoke and coal, logistics and transportation bottlenecks, and environmental regulations related to emissions and sustainability compliance. Demand-side risks such as inflationary pressures, uneven monsoon affecting rural incomes, and delayed execution of budgeted capex by central and state governments could also weigh on short-term growth.

Nevertheless, the sector remains well-positioned to capitalise on Indias long-term infrastructure ambitions and increasing focus on sustainable development. With continued investment in capacity, technology upgrades, alternative fuels, and clinker efficiency, the Indian cement industry is expected to remain a key enabler of the countrys growth trajectory.

Ceramic Tiles and Sanitaryware

India is the second-largest producer of ceramic tiles globally, with the Morbi cluster in Gujarat accounting for a large share of Indias tile production.

The tile industry is poised for growth in the medium-term, driven by rising demand from the real estate sector, rapid urbanisation and the aspirations of Indias expanding middle class.

Government-led initiatives such as ‘Pradhan Mantri Awas Yojana, ‘Housing for All, and the ‘Smart Cities Mission are actively boosting construction activity, particularly in affordable housing and sanitation infrastructure, thereby elevating the demand for tiles, sanitaryware and bathroom fittings.

In addition to new construction, the growing trend of home renovations and replacement projects continues to support tile consumption. Higher disposable incomes, a desire for larger and aesthetically appealing living spaces and evolving consumer preferences are further contributing to increased demand for stylish and durable tile solutions across both urban and semi-urban markets.

The tiles market in India is projected to increase from an estimated Rs. 51,200 Crores in 2024-25 to around Rs. 55,000 Crores by 2025-26, driven by strong momentum in exports and demand from the real estate sector. The share of organised sector has risen significantly, from around 30% in 2016-17 to 44% in 2023-24, led by evolving consumer preferences and increasing focus on quality.

With Indian consumers becoming increasingly conscious about hygiene and wellness, the demand for hygiene-focused and feature-rich sanitaryware products is on the rise. This shift is driving sustained growth in the sanitaryware segment, as consumers increasingly seek bathrooms that combine functionality, aesthetics, and modern features. Several Government of India programmes and private sector initiatives aimed at improving living standards and sanitation infrastructure have also played a pivotal role. Supported by these efforts, India is fast emerging as a key hub for sanitaryware manufacturing, catering to both domestic and export markets.

Ready-Mix Concrete (RMC)

As per the India Ready-Mix Concrete

Market Report 2024 by IMARC Group, the RMC sector in India is projected to record a 9.6% compound annual growth rate (CAGR) from 2025 to 2033. This is driven by several factors, such as strong growth in infrastructure and real estate projects, several government initiatives, such as smart city developments and highway expansion, increasing focus on cost efficiencies and sustainability, leading to an increase in demand for durable building materials, among others.

Ready-mix concrete offers numerous benefits, including enhanced construction quality and strength, reduced construction time and minimal pollution at project sites. These advantages are driving its adoption across various construction segments.

There is a noticeable transition from site-mixed concrete to RMC, attributed to its superior quality, consistency, and convenience. This shift is expected to continue, with RMC demand outpacing that of traditional concrete methods.

Additionally, focus on sustainability is increasingly shaping the industry, driven by environmental regulations, green building certifications, and corporate ESG goals. The adoption of green concrete, incorporating fly ash, GGBS, and recycled aggregates, is on the rise.

Leading manufacturers are investing in product innovations, such as pervious and self-compacting concrete.

Business Overview

Prism Cement,

Prism Cement, a prominent cement manufacturer in the Satna cluster of central India, remains steadfast in its commitment to driving sustainability and operational excellence. The Company operates two integrated cement plants at a single location in Satna, Madhya Pradesh, with a combined installed cement capacity of 5.6 mn tonnes per annum (MTPA).

These facilities are equipped with cutting-edge technology and are supported by the technical expertise of leading global partners including FLSmidth & Co. A/S (Denmark), KHD (Germany), IKN GmbH (Germany), ThyssenKrupp (Germany) and Holtec Consulting Private Limited (India).

To support its market reach and improve logistics, Prism Cement has strategic partnerships with three grinding units in Uttar Pradesh, with a combined capacity of 1.08 MTPA as of March 2025. This outsourced grinding capacity is expected to increase to 1.44 MTPA during 2025-26 following the ongoing capacity expansion aTone of its partner facilities.

The Company manufactures both Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC). Its PPC products are marketed under the following trusted brands: Champion Champion Plus Champion Duratech Champion All WeatherWith an extensive distribution network of over 2,400 effective dealers and 5,800 effective retailers, Prism Cement maintained its market presence throughout 2024 25.

As part of its ongoing sustainability efforts, Prism Cement commissioned an additional 8 MW of solar power during the year, increasing its total installed solar capacity to 30.5 MW at the Satna plants. The Company also operates a 22.4 MW Waste Heat Recovery System (WHRS).

Key Highlights of 2024-25

Cement and clinker sales volumes increased by 0.6%, from 6.58 mn tonnes in 2023 24 to 6.62 mn tonnes in 2024 25.

Premium products maintained growth momentum, accounting for 42% of total cement sales volume, compared to 34% in 2023 24.

EBITD A per tonne declined from Rs. 523 in 2023-24 to Rs. 351 in 2024-25, primarily due to lower realisations.

Realisations declined by 9.5%, from Rs. 5,045 per tonne in 2023-24 to Rs. 4,568 per tonne in 2024-25.

Power and fuel cost per tonne reduced by 14.8% to Rs. 1,286 during the year.

Performance Overview

Particulars	2020-21	2021-22	2022-23	2023-24	2024-25
Cement Sales Mix
Trade (%)	75	75	76	71	72
Non-Trade (%)	25	25	24	29	28
Cement and Clinker Sales Volume (MT)	5.82	5.22	5.92	6.58	6.62
Share of Premium Products (%)	28	29	31	34	42
Regional Sales Break-Up (% of Cement Sales Volume)
Central and Eastern Uttar Pradesh	53	55	55	60	59
Madhya Pradesh	25	26	21	18	19
Bihar	22	19	24	22	22

H & R Johnson (India)

With a rich legacy spanning 67 years, H & R Johnson (India) (‘HRJ) is the pioneer of the Indian ceramic tile industry. HRJ offers an extensive product portfolio including ceramic and vitrified tiles, sanitaryware and bath fittings, and engineered marble and quartz, offering a comprehensive solution to its customers.

As of March 31, 2025, the Company, along with its joint ventures, operated tiles manufacturing capacity of approximately 64 mn m2 per annum, spread across 11 manufacturing plants in India. The Company also operates two faucet manufacturing plants.HRJs brands, namely Johnson Tiles, Johnson Marbonite, Johnson Porselano, Johnson Endura, Johnson Bathware, Johnson International, Johnson Elite and Johnson Marble & Quartz, are well-recognised for their quality and design innovation. HRJ continues to invest in product innovation, developing performance-led solutions tailored to Indias diverse market needs. Its portfolio includes anti-static, stain-free, solar-reflective, maxgrip anti-skid, tactile and radiation-shielding tiles, as well as germ-free sanitaryware. These innovations address the evolving demands of customers in several applications.

As of March 31, 2025, HRJ operated 21Experience Centres across several prime locations in India, offering customers an immersive product discovery and design consultation experience.

Key Highlights of 2024-25

HRJs re venue grew by 0.3% from Rs. 2,386 Crores in 2023-24 to Rs. 2,393 Crores in 2024-25.

Revenue from sanitaryware and bath fittings grew by 11.1% in 2024-25 to Rs. 306 Crores.

Tile sales volume grew marginally by 0.1% from 57.6 mn m² in 2023-24 to 57.7 mn m² in 2024-25. Domestic tile sales volume grew by 0.5%, while export volume declined by 6.7%.

Capacity utilisation stood at around 66% in 2024-25.

EBITD A margin increased by basis points to 5.8% in 2024-25.

During 2024 25, HRJ focussed on a distribution network with over 900 dealers and continued its retail expansion, adding 3 new House of Johnson (HoJ) stores and bringing the total to 108. To enhance its market presence and connect with a wider audience, HRJ recently launched an advertising campaign, reinforcing its brand presence across key media platforms.

In August 2024, HRJ completed modernisation of its tile manufacturing plant at Vijayawada, Andhra Pradesh, to focus on producing higher-value, premium products in line with evolving market demand. The Panagarh plant in West Bengal, which commenced commercial production during 2023-24, further strengthened the Companys market position in eastern India in 2024-25 due to its competitive advantage in terms of time to market, product assortment and freight costs.

During the year, HRJ strengthened its presence in the sanitaryware segment by making a strategic investment in Sunbath Sanitaryware Private Limited (‘Sunbath), a company engaged in manufacturing sanitaryware at Morbi, Gujarat. Sunbath operates a state-of-the-art sanitaryware manufacturing plant with an annual production capacity of approximately 11,000 tonnes. This arrangement will help the Company with uninterrupted supply of sanitaryware in a continuously growing market at a competitive price. Since completion of this transaction,Sunbath has become a Joint Venture of the Company, wherein the Company holds 50% of equity share capital on a fully diluted basis.

In February 2025, the Company announced sale of a part of the Industrial Premises at Pen on an ‘as is where is basis for consideration of approximately Rs. 165 Crores, which resulted in a post-tax exceptional gain of around Rs. 149 Crores in 2024-25.

Prism RMC

RMC (India) (‘Prism RMC) is amongst the top three ready-mix concrete (RMC) companies in India, with a strong pan-India presence. As of March 31, 2025, Prism RMC operated 98 RMC plants across 45 towns and cities, including franchisee plants, serving a wide range of customers, including infrastructure and real estate companies.

As one of the most trusted names in the industry, Prism RMC stands out for its comprehensive range of concrete solutions, innovative product offerings and fully computerised production and quality assurance systems. RMC Plants are equipped with computerised batching mixers and automated control systems that monitor the entire production process to deliver high-performance concrete.

The Companys infrastructure includes compartmentalised storage for sand and aggregates and silos for cement, fly ash and ground granulated blast furnace slag (GGBS). These facilities ensure a high level of process control and product quality, consistently outperforming site-mix concrete in strength, durability and reliability.

The Company operates two state of the art technical laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL), ensuring rigorous quality control and product consistency.

The key focus areas for Prism RMC include:

Enhancing plant utilisation levels to improve operational profitability. Cater to future growth requirements, primarily through franchisee plants. Optimising fleet and pump efficiency to drive cost and delivery effectiveness.

Expanding the share of environment-friendly and value-added products as part of the Companys sustainability agenda.

Enhance focus on the individual home builder segment.

Focus on reducing lead distance.

Key Highlights of 2024-25

Ready-mix concrete sales volumes declined by 5.1%, from 4.1 mn m3 in 2023 24 to 3.8 mn m3 in 2024 25.

Share of value added products increased from 9.1% of total ready-mix concrete sales volumes in 2023-24 to 13.4%.

Re venue declined by 3.8% to Rs. 1,415 Crores in 2024-25, primarily due to the decline in ready-mix concrete sales volumes.

EBITD A grew by 111.1% from Rs. 39 Crores in 2023-24 to Rs. 82 Crores in 2024-25.

Raheja QBE

Raheja QBE General Insurance Company Limited (RQBE) is a material subsidiary, with the Company owning 51% and the balance held by QBE Insurance, Australias second-largest global insurer. RQBE specialises in providing a range of general insurance products, including health insurance, motor insurance, home insurance and insurance.

During the year, RQBE added 170 new partners taking the count of total partners to over 3,700, including agents, brokers, posp, imf, misp, web aggregators, corporate agents and OEMs.

Key Highlights of 2024-25

Gross Written Premium grew by 62% YoY from Rs. 316 Crores in 2023-24 to Rs. 512 Crores.

Net L oss After Tax increased from Rs. 41 Crores during 2023-24 to Rs. 48 Crores.

Combined Ratio stood at 127% in 2024-25 vs. 137% in 2023-24.

R QBE is well capitalised with solvency ratio of 1.72x as against regulatory minimum of 1.5x.

A UM increased by 10.9% from Rs. 884 Crores as of March 31, 2024 to Rs. 980 Crores.

Consolidated Financial Overview

During the year 2024-25, Prism Johnsons revenue declined by 1.6% from Rs. 7,427 Crores in 2023-24 to Rs. 7,310 Crores. This was primarily driven by a decrease in the Cement Divisions revenue due to lower cement realisations, as well as reduced revenue from Prism RMC Division owing to lower ready-mix concrete sales volumes.

Consolidated EBITDA declined from Rs. 489 Crores in 2023-24 to Rs. 418 Crores primarily due to decline in Prism Cements EBITDA per tonne, which declined from Rs. 523 per tonne in 2023-24 to Rs. 351 per tonne in 2024-25, impacted by lower cement realisations. Furthermore, the Companys EBITDA margin contracted by 90 basis points to 5.7% in 2024-25.

Prism RMCs EBITDA margin increased from 2.7% in 2023-24 to 5.8% in 2024-25, while HRJs EBITDA margin increased from 5.7% in 2023-24 to 5.8% in 2024-25.

Additionally, during 2024-25, the Company received favourable orders from the Income Tax Appellate Tribunal for assessment years 2006-2007 to 2010-2011, resulting in an additional interest income of around Rs. 82 Crores, recorded under other income. The Company also executed definitive agreements for the sale of a part of its industrial premises at its tile plant at Pen, Maharashtra, resulting in a post-tax exceptional gain of Rs. 149 Crores.

Key Financial Ratios (Consolidated)

Particulars	2023-24	2024-25	% Change YoY
Debtors Turnover Ratio (Days)	34.1	41.9	22.8 %
Inventory Turnover Ratio (x)	14.5	13.7	(5.6%)
Interest Coverage Ratio (x)	4.5	3.8	(14.3%)
Current Ratio (x)	0.9	0.8	(9.7%)
Net Debt-to-Equity Ratio (x)	0.5	0.4	(29.2%)
Operating Profit Margin (%)	6.7	5.8	(13.0%)
Net Profit Margin (%)	2.2	0.6	(71.5%)
Return on Net Worth (%)	9.9	2.6	(74.1%)
Return on Capital Employed (%)	5.3	3.7	(30.3%)
Net Debt to EBITDA (x)	1.7	1.5	(11.0%)
FCF (Pre-Capex and Investments) (Rs. Crores)	299	543	82.0%

Financial Performance Highlights

Debtors Turnover Ratio increased from 34.1 days in 2023-24 to 41.9 days in 2024-25 as the debtors increased by 20.9% to Rs. 840 Crores.

Inventory Turnover Ratio decreased from 14.5x in 2023-24 to 13.7x in 2024-25 due to a decline in average inventory during 2024-25.

Interest Coverage Ratio declined from 4.5x in 2023-24 to 3.8x in 2024-25, following a 14.4% decline in EBITDA.

Current Ratio decreased from 0.9x in 2023-24 to 0.8x in 2024-25, due to a decrease in current assets.

Net Debt to EBITDA improved from 1.7x in 2023-24 to 1.5x in 2024-25, despite lower EBITDA, as the Company successfully reduced net debt from Rs. 827 Crores to Rs. 630 Crores.

Return on Capital Employed declined from 5.3% in 2023-24 to 3.7% in 2024-25, due to decline in EBIT before exceptional gains. Capital Employed declined by 5.5% to Rs. 2,214 Crores during 2024-25.

Net Debt-Equity Ratio reduced from 0.5x in 2023-24 to 0.4x in 2024-25, reflecting significant deleveraging and improved equity position. The Company decreased net debt by 23.8% to Rs. 630 Crores, reinforcing balance sheet strength.

Operating Profit Margin declined from 6.7% in 2023-24 to 5.8% in 2024-25, mainly led by the decline in profitability of the Cement Division. Prism Cements EBITDA per tonne declined to Rs. 351 per tonne in 2024-25, impacted by lower cement realisations.

Return on Net Worth decreased from 9.9% in 2023-24 to 2.6% in 2024-25, due to lower profit margin

Net Profit Margin decreased from 2.2% in 2023-24 to 0.6% in 2024-25. This was partially supported by receipt of favourable orders from the Income Tax Appellate Tribunal that resulted in an additional interest income and gain on the sale of part of the industrial premises at the Companys tile plant at Pen, Maharashtra.

Free Cash Flow (FCF) – Pre Capex and Investments increased from Rs. 299 Crores in 2023-24 to Rs. 543 Crores due to an improvement in inventory levels and receipt of income tax refund.

Outlook for 2025-26

Prism Cement

The demand for cement is likely to benefit from growth in the infrastructure and housing sectors in the medium term. As per a report by India Ratings and Research, cement demand is likely to grow by mid-single digit in 2025-26 led by the recovery in demand from the infrastructure segment and continued growth in urban housing.

To address the growing requirements in the near term, Prism Cement has outsourcing agreements in place for procurement of 1.08 MTPA of cement per annum from three grinding units, located in Uttar Pradesh. Further, the outsourced cement grinding capacity is expected to increase to 1.44 MTPA during 2025-26. This will help Prism Cement in improving the local availability of cement in its strategic markets of Uttar Pradesh, which constituted around 59% of cement sales volume in 2024-25. The enhanced outsourced grinding capacity, along with the Companys cement plant at Satna, will help Prism Cement meet the increasing demand over the next two years.

Prism Cement is actively pursuing strategic initiatives that embed sustainability into its core operations.

These efforts include reducing its carbon footprint, minimising waste generation, leveraging alternative fuels and raw materials and implementing AI-driven automation in its mills. As part of its decarbonisation roadmap, the Company is focussed on increasing its Thermal Substitution Rate (TSR) and expanding its use of green and renewable energy sources, including Waste Heat Recovery Systems (WHRS). Currently, Prism Cement has 22.4 MW of WHRS and 30.5 MW of solar power operational at its Satna plant. This includes 8 MW of additional solar plant that got commissioned in 2024-25.

Furthermore, the Company leverages digital technologies for marketing and advertising, using social media to enhance brand visibility and engagement with customers.

HRJ

With a strong brand reputation, a diverse portfolio of Tile and Bathware products and a firm commitment to sustainability, HRJ is well-positioned to capitalise on the rising demand in the domestic market. Its extensive manufacturing capabilities, combined with a robust nationwide distribution network, enable it to effectively serve customers across the country. HRJ has introduced several innovative products in the past, including Cool Roof SRI, Maxgrip Anti-Skid, and Tactile, which differentiate its offerings and reinforce its competitive edge in the market.

To further strengthen its presence, the Company manages a wide range of new

Prism RMC

With a robust pan-India presence comprising 98 plants across 45 cities and towns (including franchisee plants), Prism RMC is well-positioned to capitalise on the growing demand for ready-mix concrete in India, driven by accelerating infrastructure development and construction activities. The Divisions strong market position, emphasis on quality and continued focus on sustainable practices serve as key differentiators, enhancing its competitive advantage.tile products (designs), aligned with evolving customer preferences and operates 21 large-format Experience Centres. These strategic initiatives underscore HRJs focus on growth and market expansion, setting the stage for continued growth in the coming years. In May 2025, HRJ launched a comprehensive multimedia advertising campaign in several regional languages aimed at regional audiences, with a special focus on several key markets including Tamil Nadu, Kerala, Andhra Pradesh, Telangana, West Bengal, Bihar, and Jharkhand. This strategic initiative is designed to strengthen HRJs brand visibility and connect more deeply with diverse consumers across the country.

Looking ahead, Prism RMCs strategic initiatives around capacity expansion and cosToptimisation are expected to further improve operational efficiency and support long-term profitability. In line with its growth strategy, the Company plans to expand its manufacturing footprint primarily through the franchisee model, enabling scalable and asset-light expansion across key markets.

Opportunities and Threats

The building materials sector in India is poised for sustainable growth in the near to medium term, underpinned by strong macroeconomic fundamentals and the Government of Indias continued emphasis on infrastructure development, urbanisation and housing for all. Some of the key national initiatives such as the Pradhan Mantri Awas Yojana (PMAY), Smart Cities Mission and substantial investments by the Government of India in roads, railways, airports and industrial corridors are expected to drive robust demand for construction materials in future. These developments present a favourable environment for Prism Johnson to scale its presence and enhance its market share across its business verticals.

However, the Companys growth prospects remain closely aligned with the overall economic environment. Any deceleration in GDP growth, fluctuations in interest rates or reduction in government spending on infrastructure could impact construction activities, thereby posing challenges to the Companys growth and profitability. Furthermore, input cost volatility, supply chain disruptions and regulatory changes could affecToperational efficiencies.

The competitive landscape also continues to evolve rapidly, with both organised and unorganised players striving for market share. Intense pricing pressures and regional competition in the building materials segment, particularly in cement, ready-mix concrete, and tile and bathware products, could impact the Companys profitability.

Despite these headwinds, Prism Johnson is strategically positioned to benefit from the anticipated uptrend in construction activity. The Companys diversified product portfolio, pan-India presence, strong brand equity and commitment to innovation and sustainability provide a solid foundation for future growth. By continuing to invest in operational excellence, customer-centric product developments and digital transformation, Prism Johnson aims to mitigate some of these risks, adapt swiftly to changing market conditions and strive to deliver long-term value to its stakeholders.

Human Resources

Human resources management plays a vital role in ensuring the long-term success of any company. At Prism Johnson, employees are regarded as the foundation of the Companys progress. The Company places strong emphasis on employee welfare by creating a safe, inclusive, and supportive workplace through well-defined, employee-focused policies and initiatives. As of March 31, 2025, the total workforce of the Company stood at 10,272, including both permanent employees and contract workers.

Prism Johnsons human capital strategy is built around attracting, developing and retaining top talent. The Company offers robust training and development programmes to support career progression and maintains consistent employee engagement to foster satisfaction, motivation and long-term commitment.

Talent Attraction and Retention

Prism Johnson places strong emphasis on building a diverse, skilled and competent workforce. The Companys recruitment practices are guided by the principle of meritocracy, ensuring equal opportunity and fostering an environment where every employee feels valued and empowered to grow within the Company.

To enhance employee well-being, the Company offers a comprehensive benefits package, which includes life insurance, health insurance, Group Personal Accident insurance, disability coverage, retirement benefits, and maternity leave.

Moreover, employee retention initiatives are centred on fostering professional development, facilitating internal career progression and nurturing a robusTorganisational culture that supports both personal and professional well-being.

Campus Outreach Programme

Prism Johnson has consistently placed a strong emphasis on nurturing future talent through its robust Campus Outreach Programme. This initiative aims to build meaningful connections with some of the leading educational institutions, nurturing a steady pipeline of skilled and enthusiastic young professionals who align with the Companys vision and values.

As part of this programme, Prism Johnson conducts campus engagement sessions led by senior leaders and HR professionals to offer students valuable insights about the building materials industry, career prospects and the Companys work culture. The students join the Company directly from campus in various departments of the Company, including technical, marketing, finance, commercial and HRM.

The Campus Outreach Programme noTonly helps attract top talent but also reinforces the Companys commitment to empowering the next generation of professionals.

Learning and Development (L&D)

At Prism Johnson, the L&D strategy is designed to equip employees with the necessary tools for enhanced productivity and superior performance. This year, the Company strengthened its annual training calendar, introducing targeted and structured learning opportunities that address both industry dynamics and specific employee needs. The efficacy of some of these programmes is continuously monitored through pre and post session evaluations, alongside detailed surveys, ensuring the highest standards of training effectiveness.

Key Areas of Training

Functional and technical training Leadership and managerial training Health and safety training, including road safety

Business Responsibility & Sustainability Reporting (BRSR) Training Product management training Risk management training

Environment, Social and Governance (ESG) and sustainability training, including specific training sessions on human rights, energy management, water and waste management Behavioural training

To deepen engagement, a blend of digital learning modules and interactive training mechanisms have been integrated, promoting a more immersive and effective learning experience.

Training Need Identification	Preparation of Annual Training Plan	Planning of Monthly Schedule
The L&D team conducts a needs assessment study and engages with various department heads to identify learning priorities.	An annual training plan is developed to cater to the learning requirements of employees.	The annual training plan is then translated to a monthly training schedule.
Nomination from Departments	Training Implementation	Learning Outcomes
Based on the monthly training schedule, employees from different departments are nominated for participation.	Training is conducted by subject matter experts. The effectiveness of the training is evaluated through feedback surveys.	Each employees performance is closely evaluated to gauge learning outcomes.

Endeavour to Promote Government Apprenticeship Schemes

Prism Johnson remains steadfast in its commitment to skill development and youth empowerment through active participation in various government-led apprenticeship programmes.

The Company has been diligently implementing initiatives such as the National Apprenticeship Promotion Scheme (NAPS), and the National Apprenticeship Training Scheme (NATS), among others. These schemes are designed to bridge the gap between academic learning and practical industry exposure, thereby enhancing employability and contributing to the nations workforce development. By aligning with these programmes, Prism Johnson noTonly supports the Government of Indias vision of Skilled India but also nurtures a culture of continuous learning and hands-on experience within the Company.

The Company continues to onboard apprentices across multiple functions, offering structured training, mentorship and opportunities to grow in a real-time industrial environment, ultimately fostering long-term professional growth for young individuals entering the workforce.

During 2024-25, Prism CemenTorganised the Udaan Training Programme aimed at enhancing the skills and knowledge of its contractual workers. Focused on improving productivity and operational efficiency, the programme witnessed active participation from over 1,000 workers. Through this initiative, the Company reaffirmed its commitment to workforce development, safety awareness and continuous improvement at the grassroot level.

Performance Evaluation

Prism Johnson maintains an equitable and transparent performance management framework that acknowledges and rewards exceptional contributors, and offers avenues for career advancement. Employees participate in an annual evaluation process, with assessments based on Key Result Areas, ensuring alignment with both corporate goals and personal career aspirations. The Company remains dedicated to enhancing its evaluation systems to foster a high-performance culture that nurtures innovation and excellence.

Employee Engagement and Communication

At Prism Johnson, a culture of open and constructive communication is integral to its human resources strategy. Employees actively engage in various initiatives.

Open Forums and Senior Management-Led Town Halls

Employee Engagement Surveys

The Companys dedication to responding to feedback and continuously refining HR policies has resulted in a marked increase in employee engagement scores over the years. This progress reflects a work environment that champions inclusivity, teamwork, and the development of professional potential.

Health and Safety Initiatives

Prism Johnson is committed to maintaining the highest standards of occupational health and safety across all its operations. In alignment with international frameworks such as ISO 45001, the Company has established dedicated Safety Governance Committees within its business divisions to ensure robust implementation of its health and safety policies.

These committees conduct regular performance evaluations, identify potential risks, and develop corrective and preventive action plans. The Company provides ongoing training programmes to enhance safety awareness and competence among employees. Reviews of routine and non-routine activities are conducted to proactively address emerging risks. In addition, OHS assessments at plant level are carried out periodically to assess the safe operations and proper maintenance of tools, equipment and machinery.

Through these structured initiatives, Prism Johnson fosters a proactive safety culture and ensures compliance with applicable legal and regulatory requirements.

Internal Control Systems and Their Adequacy

A fundamental aspect of effective corporate governance is the presence of strong internal control systems and processes.

Prism Johnsons internal control framework is meticulously crafted and resilient, tailored to match the Companys operational scale, geographic footprint, and the dynamic risk landscape influenced by diverse internal and external factors.

The Company has implemented a robusTorganisational framework to consistently assess and adapt systems and procedures, ensuring they remain in sync with the Companys evolving growth trajectory and increasing complexity. The Company has detailed Standard Operating

Procedures (SOPs) to ensure process uniformity and approach clarity for its various operations.

These SOPs are periodically vetted and updated to take care of any changes in business scenario and system updates.

Prism Johnson has established robust internal control systems customised to its operational requirements. These systems include policies and procedures designed to streamline operations, safeguard assets, optimise resource utilisation, ensure the accuracy of financial information, and promote compliance. Additionally, external auditors are engaged to provide thorough oversight of the Companys internal control systems, augmenting the efforts of the internal Management Assurance team.

The Companys risk-based internal audit plan for internal audits, approved by the Audit Committee, provides assurance by evaluating the adequacy and effectiveness of internal controls.

The Management reviews the internal audit reports and initiates corrective actions to strengthen controls and enhance the effectiveness of existing systems. Significant audiTobservations and subsequent corrective measures are also presented to the Companys

Audit Committee.

Risk Management Framework

Operating within a dynamic and challenging environment, Prism

Johnson is committed to proactively managing its risks, while striving to achieve its objectives. To achieve this, the Company has developed a comprehensive Risk Management Policy, and established protocols for updating the Risk Management Committee of the Board on key risks and its mitigation plans. The senior management of Prism Johnson has identified several key business risks, including those related to economic conditions and market positioning, production costs, compliance with laws, environmental sustainability, information technology and talent management.

The scope of risk assessment extends to long-term strategic risks, medium- term risks, short-term risks, and isolated one-time events. It involves analysing the likelihood and impact of events on business and finances to devise mitigation strategies.

The table below summarises the top enterprise-wide potential risks for the Company and their respective mitigation measures.

Risk External Risks	Risk Description	Mitigation Approach Optimising Energy
Energy Cost and Availability Risk	Energy costs represent a significant expense for cement and tile manufacturing at Prism Johnson. The Company is exposed to the risk of rising energy costs, strained supply, and availability, as well as price fluctuations. These factors could pose major concerns and impact the Companys operational costs and profitability.	The Company continuously strives to improve its processes to optimise energy consumption and reduce overall energy costs.
		Diversification of Energy Sources Prism Johnson aims to diversify its energy sources and fuel mix. This strategy intends to safeguard the Company against price fluctuations and supply shortages. To achieve this, the Company negotiates appropriate supply contracts to ensure a steady and cost-effective fuel supply.
		Regular Tracking and Planning Prism Johnson monitors coal and pet coke prices and fuel consumption on a regular basis. This proactive approach helps in scheduling procurements in advance and making optimal decisions regarding fuel choices and procurement timing.
		Utilisation of Waste-Derived Alternative Fuels Prism Johnson works towards increasing the use of waste-derived alternative fuels, both hazardous and non-hazardous, to reduce its reliance on traditional energy sources and mitigate cost fluctuations.
		Adoption of Green Energy The Company utilises green and renewable energy sources, including the Waste Heat Recovery System (WHRS) and solar power, to reduce dependency on thermal power. This helps in optimising costs and aligns with the Companys environmental sustainability goals.

Risk	Risk Description	Mitigation Approach
Information Technology	Prism Johnson relies on IT systems, including Enterprise Resource Planning (ERP), to streamline its business operations. The Company faces IT- related risks, encompassing data integrity and physical asset protection. These risks primarily stem from the potential unavailability of systems or the loss or manipulation of information.	To mitigate these risks, the Company employs ERP systems to support its core business operations, such as sales, logistics, procurement, finance, and production. The Company periodically assesses IT risks and invests in strengthening its IT infrastructure. These efforts are aimed at enhancing the reliability and resilience of the Companys IT systems, ensuring the secure and efficient functioning of its business processes.
Cybersecurity Risk	With the increasing interconnectedness of IT systems and the adoption of digitalisation initiatives, cybersecurity has emerged as a growing concern for many companies. Prism Johnson, like numerous others, could be susceptible to cyber attacks, potentially compromising sensitive data, disrupting operations, and/or damaging the Companys goodwill and brand image.	Prism Johnson has proactively installed firewalls with stringent configuration to limit the access controls. Further, it has implemented robust processes and tools for data backup and data security, enforcing detective and preventive controls. The Company adopts a risk-based approach to cybersecurity, ensuring effective practices for protecting the organisation. Additionally, Prism Johnson conducts regular employee training sessions to raise awareness of cybersecurity risks and promote a culture of cybersecurity awareness within the Company.
Raw Material Availability Risk	The unavailability of raw materials at an affordable cost could impact the Companys overall profitability.	For its key raw materials, the Company explores strategic sourcing options, including price contracts, and also evaluates alternative raw materials while maintaining minimum reserve levels to minimise or eliminate any disruptions. Additionally, the Company recently participated in limestone blocks auctions and was declared as the preferred bidder for two mining leases by the Directorate of Geology and Mining, Mining Resource Department, Government of Madhya Pradesh in March 2025. These blocks are situated in Satna, Madhya Pradesh, with rich limestone reserves.
Commodity Price Risk	At Prism Johnson, commodity price risk primarily revolves around unanticipated changes in the prices of various commodities, including imported fuels like coal and pet coke. These price fluctuations directly affect production costs and, therefore, the Companys profitability.	Prism Johnson employs comparative analysis and regularly tracks commodity prices to ascertain trends, enabling informed decision making. To mitigate the impact of fuel price fluctuations on profit margins, the Company diversifies its fuel mix and sources. Procurement decisions are made based on the prevailing price trend and consumption plan, ensuring prudent management of commodity price risk. Additionally, the Company has taken several measures to increase the use of waste-derived alternative fuels.
Economic Risk	Any moderation in economic activity could lead to negative consequences for the real estate and infrastructure sector, consequently impacting the demand for Prism Johnsons products and its financial performance.	Prism Johnson devises its business strategies with a keen understanding of the prevailing economic environment. The Company endeavours to minimise risks to the extent possible by aligning its operations to adapt to the changing economic conditions.

Risk	Risk Description	Mitigation Approach
Climate Change or Extreme Weather Conditions	Climate change poses a potential threat to Prism Johnson in the long term, as it may result in an increase in the frequency and severity of natural disasters and calamities. Such events could adversely impact the Companys operations, infrastructure, and assets.	To mitigate the risk associated with climate change, the Company has implemented several measures. Firstly, it ensures adequate insurance coverage for all natural calamities. Additionally, the Company takes proactive steps and preventive actions to minimise damages in the event of unforeseen natural disasters. For instance, at flood-prone operating sites, the Company has raised boundary walls to reduce the risk of flooding. Furthermore, as part of its sustainability initiatives, the Company actively tracks the impact of extreme climate change on its operations and financials.
Environment Risk	Prism Johnson faces environmental risks across various aspects of its operations, including GHG emissions, water consumption, generation and discharge of trade effluents, management of hazardous waste, noise generation, and utilisation of forest land and wildlife areas. Compliance with the Environmental Acts and Regulations set by the Ministry of Environment and Forests (MoEF) is crucial to managing these risks.	To address these environmental risks, Prism Johnson has developed a detailed sustainability strategy and execution roadmap. The Company prioritises regular monitoring and compliance with applicable government norms and regulations. Additionally, the Company implements several measures and initiatives to promote sustainable business practices, ensuring good governance processes to minimise its environmental impact.
Credit Risk	Prism Johnson faces a significant risk of potential delays in payments from existing clients, which could adversely impact its cash flow.	The Company maintains a strong focus on efficient working capital management, with a particular focus on debtors to ensure timely collections. Prism Johnson has a robust credit control process in place to minimise the risk of payment delays. Additionally, the Company has a diversified customer base, consisting of both institutional and retail clients. This customer base is spread out geographically, reducing the Companys exposure to credit concentration risk. This diversification helps Prism Johnson mitigate the risk of relying heavily on any single type of customer for its revenue.
Regulatory Risk	The risk of inadvertently violating laws governing business conduct poses a challenge. The regulatory framework in the country is everchanging, increasing the risk of non-compliance and penalties, which could ultimately damage the Companys reputation.	To address this risk, Prism Johnson has implemented a comprehensive risk-based compliance programme. This programme includes extensive training for employees and strict adherence to the Companys Code of Conduct. Additionally, the Company has established a robust compliance framework and mechanism for policies, SOPs and advisories related to statutory compliance and potential litigation. These measures aim to ensure that Prism Johnson remains compliant with applicable laws and regulations, mitigating/minimising the risk of inadvertent violations and their associated consequences.

Risk	Risk Description	Mitigation Approach
Internal Risks
Health and Safety	Ensuring good health and safety of employees is paramount to Prism Johnson. This includes safeguarding employees, contractors, and third parties from injury, illness, or fatalities, both onsite and offsite.	The Company has incorporated stringent measures to ensure ‘Zero Harm and protect its workforce. Additionally, the Company emphasises managing day-to-day operations and surge requirements, prioritising personal behaviour while at work. These measures intend to promote a safe and healthy work environment for all stakeholders.
HR Risk (Talent Management)	The Company might encounter operational challenges if there is a shortage of qualified personnel with the necessary skills to compete, innovate, expand, and grow in the market.	Prism Johnson acknowledges its human capital as its most valuable asset, focussing on developing a team of motivated individuals committed to achieving success in their respective fields. The Company conducts regular training and team-building activities to enhance performance and maintain competitiveness and innovation.
Strategic Risk
Digital Advancement	The adoption of digital technologies is reshaping traditional business operations, offering new avenues to enhance efficiency and improve engagement with customers and employees. Nevertheless, achieving this transformation requires significant initiative from top management, commitment from employees, and cultural change within the organisation.	The Company has devised a comprehensive digital advancement roadmap spanning its entire business value chain. This roadmap encompasses key areas such as manufacturing, logistics and supply chain, commercial operations, and customer relationship management. By implementing this roadmap, Prism Johnson aims to enhance business efficiency, improve productivity, and achieve overall business goals and success in the digital era.

Cautionary Statement

The statements in the Management Discussion and Analysis section describing the

Companys objectives, projections, estimates and predictions may be considered ‘forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the Companys strategy for growth, product development, market positioning, expenditures and financial results, are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Companys actual results, performance or achievements may, therefore, differ materially from those projected in such ‘forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any ‘forward-looking statemenTon the basis of any subsequent developments, information or events.