Prism Johnson Limited

Home Sustainability Sustainability Approach Creating Stakeholder Value

CREATING STAKEHOLDER VALUE

The Company is committed to creating long term value for all stakeholders in an environmentally and socially responsible manner, while consistently exhibiting strong economic performance.

Its primary focus is to serve customers better, equip employees with requisite skill-sets, focus on product and process innovation by investing in R&D and support the communities in the regions where it operates. The Company strives to maximise returns for all stakeholders. The two financial parameters that drive key business decisions are Return on Capital Employed (ROCE) and Free Cash Flows (FCF). Prism Johnson uses an optimum capital structure, a judicial mix of debt and equity, in order to create value for its shareholders.

Economic Performance Economic Performance

During 2021-22, standalone revenues grew by 10.6% to INR 5,569 Crores, led by growth in the HRJ and Prism RMC divisions. Prism Cement’s revenue declined by 6.9% to INR 2,408 Crores primarily due to lower sales volume. EBITDA margin declined by 190 basis points to 10.3% led by decline in Prism Cement’s EBITDA due to steep rise in power and fuel costs. As a result, net profit declined by 33.4% to INR 133 Crores.

Cost control is of utmost priority for Prism Johnson, given the pressure on margins due to rising input costs, especially power and fuel costs. The Company is working on various initiatives to improve its energy efficiency through technology up-gradation, process optimisation and productivity improvement. Additionally, it has been focussed on reducing fixed costs and has taken several initiatives across divisions for the same.

FY 22 Standalone Revenue

INR 5,569 Crores

EBITDA

INR 576 Crores

Profit After Tax

INR 133 Crores

Return on Capital Employed

15.5%

Customer Relations Customer Relations

The Company understands that to remain competitive it must routinely engage with customers and potential customers to understand their needs and expectations. The Company engages in extensive business development activities to target potential customers. The sales and marketing department interacts with customers through post marketing audits and customer satisfaction surveys. This enables the Company to monitor service quality, enhance service delivery processes, help unravel the causes of customer dissatisfaction if any. All these insights help create an opportunity for internal actions to enhance customer experience.

CSI – Prism Cement

91%

CSI – Prism RMC

84%

NPS – Prism RMC

61%

Customer Grievance

Redressal 2021-22

5,070

Number of complaints raised

4,711

Number of complaints resolved

Incidents of noncompliance concerning the health and safety impacts of products and services in 2021-22

Nil

Incidents resulting in fines/penalty

Nil

Incidents resulting in warning

Supplier Sustainability Supplier Sustainability

Prism Johnson engages with a wide variety of suppliers to facilitate the requirements of its operations and business services. The Company believes that to truly incorporate sustainability in day-to-day operations, it must achieve the desired results in its supply chain as well. Recognising this fact, Prism Johnson’s objective is to leverage business relations with suppliers to integrate sustainability across the value chain.

As a part of a conscious effort to contribute to socioeconomic development of local communities, Prism Johnson prioritises local procurement of goods and services, wherever practicable.

Local Procurement in 2021-22

Prism Cement

Approx. 85% of total procurement locally

H & R Johnson

Nearly 70% of raw materials procured from within 500 kms of the respective plant locations

Prism RMC

Around 75% of its raw materials from within 500 kms of its operational boundary

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