From Prism to Prison: Why Johnson’s Balance Sheet Needs Rehab
📌 At a Glance
Prism Johnson Ltd is a diversified building materials company with interests in cement, ready-mix concrete (RMC), and TBK (tiles, bathware, and kitchen solutions). Despite a decade in the industry and some serious real estate tailwinds, its profits seem allergic to permanence — with ROCEs flatter than a bathroom tile and net profits playing hide and seek.
1. 🧱 The “Three-Legged” Business Model
a) Cement Division
- Brand: “Champion” cement
- Operates in MP, UP, and Bihar
- FY25 Cement revenue: ~₹4,260 Cr
- EBITDA margin? Cement-ary level: 6–7% average over 3 years
b) TBK (Tiles, Bathware, Kitchen)
- Brand: Johnson Tiles
- Competes with Kajaria, Somany
- FY25
- Revenue: ~₹2,000 Cr
- Margins? Even Kajaria won’t feel threatened
c) RMC (Ready-Mix Concrete)
- Used in infra projects, commercial real estate
- FY25 revenue: ₹700–800 Cr
- OPM? Mix thoda zyada dilute ho gaya
🔍None of the 3 legs are industry-leading. Instead of a tripod, Prism’s standing on a wobbly stool.
2. 💸 The “Other Income” Illusion
- FY25 PBT: ₹5 Cr
- Other Income: ₹293 Cr
- You read that right —other income is 58x operating profit
- Without it, Prism would’ve looked like a real estate developer stuck in 2012
🕵️ Most of this is
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