ACC Ltd — Q4 FY26

ACC Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IKzeYdCyg4U Published: 9 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Ambuja Simmons Limited Q4 FI26 earnings call hosted by JM 0:09 9 seconds Financial Institutional Securities Limited. As a reminder, all participant lines will be on listenonly mode and there will be an opportunity for you to 0:17 17 seconds ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on your touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Dhmesha from JM Financial. Thank you and over to you. 0:37 37 seconds Thank you everyone. Without much delay, I will transfer the call to Mr. Deepak Balawani, head of investor relations. 0:45 45 seconds Mr. Deepak, over to you. 0:48 48 seconds Uh thank you Dhi. On behalf of Ambuja Cement, I'm pleased to welcome all the participants to our earnings call for 0:54 54 seconds the fourth quarter of FI 26. Ambuja Cement is the ninth largest building material solution company globally and part of the diversified Adani portfolio. 1:05 1 minute, 5 seconds Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may 1:14 1 minute, 14 seconds involve unfortunate risk and uncertaintity. We remain committed to further strengthening our disclosure standards and improving the quality of 1:22 1 minute, 22 seconds our capital market communication to the best in the industry. We are pleased to have with us on the call Mr. Vinodi, chief executive officer and Mr. Roy 1:30 1 minute, 30 seconds Coney, chief financial officer. Now I invite Mr. Bi to provide his valuable insight on the quarterly performance. 1:37 1 minute, 37 seconds Yeah, thank you Deepak. Thanks DHS. Good evening. U everyone uh FY26 was a year 1:46 1 minute, 46 seconds of resilience for the Indian cement sector marked by industry consolidation and the GST 2.0 O reforms on one side 1:54 1 minute, 54 seconds while the adverse and the extended weather conditions, global geopolitical factors and the various state elections 2:02 2 minutes, 2 seconds also affected the industry and demand in some or the other way. Against this 2:09 2 minutes, 9 seconds backdrop, Abuja delivered a resilient performance for the year achieving its 2:16 2 minutes, 16 seconds highest ever annual sales volume of 73.7 million tons. 2:22 2 minutes, 22 seconds up 16% Yon Year on year in that manner and on a normalized basis the IBIDA of 2:30 2 minutes, 30 seconds Rups 6,539 crores up 31% at rupes 887 per metric ton which is on 2:40 2 minutes, 40 seconds a PMT which is up 12% and the fat of rups 2,647 cr up 17%. 2:48 2 minutes, 48 seconds The company continues to remain debt free and with highest credit rating. 2:54 2 minutes, 54 seconds Annual volumes grew well ahead of the industry. Trade sales volume grew steady at 10% while the premium cement 3:02 3 minutes, 2 seconds accounted for 35% of the trade sales during the year reflecting sustained progress on premization. 3:10 3 minutes, 10 seconds During uh the year company's cement capacity increased to 109 million tons 3:17 3 minutes, 17 seconds supported by commissioning of 10.7 million tons of new grinding capacity at various locations like Marwa, Faraka, 3:26 3 minutes, 26 seconds Sankril, Sundri, Krishna Patnam and the additional cleaner capacity of 7 million tons at Japur and Batapara. 3:36 3 minutes, 36 seconds During financial year 26, we also made meaningful progress on the portfolio integration. Successful amalgamation of 3:45 3 minutes, 45 seconds Shangi Industries and Pena cement with Ambuja cement is now completed while APC 3:51 3 minutes, 51 seconds and Orient cement is under process. The one cement platform is a strategic initiative and will help to bring 3:59 3 minutes, 59 seconds sharper focus on the operational performance business synergies and the overall higher degree of compliances. 4:08 4 minutes, 8 seconds Therefore, this time the balance sheet of Abuja consult now has finalized 4:16 4 minutes, 16 seconds purchase price allocation of Orient and Pena. Till December it was on a provisional basis. The numbers you will 4:24 4 minutes, 24 seconds find marginally changes in the balance sheet. This is the classification of goodwill and the other intangible assets while in the P&L you will find some 4:33 4 minutes, 33 seconds changes in terms of amounts for depreciation and the defer tax accounting treatments. 4:40 4 minutes, 40 seconds Further friends you will see in the notes of the accounts you will see various tax related provisional uh note with respect to reversals details are there in the published financials. 4:51 4 minutes, 51 seconds Please also note financial year 25 and financial year 26 are not comparable like to like since FI25 does not have 5:01 5 minutes, 1 second orient cement while panina was acquired and consolidated from 16th of of August 25 that is only 7 and a half months for 5:09 5 minutes, 9 seconds the FI25 uh as against 12 months for FI26 and while Orient is only for 11 months in 5:16 5 minutes, 16 seconds FI26 and was not there in FI25. Now let's again come back to the business part. My green power share increased 5:24 5 minutes, 24 seconds almost uh 32% now in Q4 compared to 26% before. 5:29 5 minutes, 29 seconds Uh the newly acquired assets particularly Sangi and Pena they witnessed lower utilization levels. Uh 5:36 5 minutes, 36 seconds Sangi still remains at around for the full year at 57% on cement capacity utilization while Penna is 46%. However, 5:45 5 minutes, 45 seconds last time I mentioned to you that in uh December quarter we have seen a good improvement especially for Sangi. Uh the turnaround initiatives have taken little 5:53 5 minutes, 53 seconds longer than the expected timelines and some of these uh plants especially of Pena needed higher than u uh expected 6:03 6 minutes, 3 seconds uh time for maintenance effort and um overall uh upkeep of the assets. Uh so 6:10 6 minutes, 10 seconds on a cost front we have seen bit of uh higher cost compared to our own expectations and therefore some disappointments. Uh primarily if I have 6:18 6 minutes, 18 seconds to look at the reasons uh higher freight cost uh due to increase in the overall say lead primary and secondary board uh 6:26 6 minutes, 26 seconds increase in some of the uh state like the additional good stack especially in Himachel. Uh then in terms of the higher 6:34 6 minutes, 34 seconds packing cost which we more so have seen that in the month of March we have seen some abruptions given the west Asia war 6:42 6 minutes, 42 seconds uh the higher fuel uh cost on account of uh little higher than expected heat consumption what we have and more so for 6:50 6 minutes, 50 seconds the acquired effects uh the higher branding cost uh now that we have uh uh focused more on trade sales uh starting 6:59 6 minutes, 59 seconds from the Q4 uh and While we have also improved our trade sales to 74% compared to in December quarter of 25 it was 68%. 7:09 7 minutes, 9 seconds So which would really mean uh uh we are focusing on blended cement and if you also see material factor has improved 7:15 7 minutes, 15 seconds from uh 67% in December quarter to now 65%. Uh this has also u uh uh one of the 7:24 7 minutes, 24 seconds uh cost which is the banding cost and the trace promotion cost have gone up and some of the other issues like the raw model costs uh which we could have 7:31 7 minutes, 31 seconds uh improved in terms of the fly but uh trending some of the uh railway infrastructure which will be completed in coming months and you will see a good 7:40 7 minutes, 40 seconds level of improvement on that. But uh pending that uh we have uh we have not been able to meet our [clears throat] uh 7:48 7 minutes, 48 seconds uh some of the normal costs uh to our desired levels. Uh essentially uh there there is a uh 3 to 6 months delay on 7:57 7 minutes, 57 seconds some of the efficiency capexes which has happened and uh uh hopefully like in coming quarter uh which we we should be 8:04 8 minutes, 4 seconds gaining momentum to to complete and get the benefits of it. So therefore in FY27 our focus formally uh remains on 8:13 8 minutes, 13 seconds streamlining the operations and margin expansion. So uh we will continue to focus on trade sales uh and uh more so 8:22 8 minutes, 22 seconds on the premium product sales uh which we have a huge leadership almost 36% of my trade sales has been premium cement uh 8:30 8 minutes, 30 seconds sales for for Q4. uh we will uh uh continue to improve the uh reliability at Fenma and Sanji and the overall asset 8:38 8 minutes, 38 seconds utilization uh [clears throat] together they have 19 million tons of capacity and the target is to uh 8:46 8 minutes, 46 seconds increase utilization by at least 5 to 10% for these ships. Uh in terms of the cost uh so while we are cognizant of the 8:54 8 minutes, 54 seconds overall ongoing global geopolitical situation and uh we have already seen a cost escalation in Q4 more so in the 9:02 9 minutes, 2 seconds month of March uh almost uh by 25 rupees a bag uh closer to let us say ballpark 400 to 500 rupees if I have to go on a 9:11 9 minutes, 11 seconds full full-blown basis our cost uh increase uh is there in the industry and so it's to our company uh So we are 9:19 9 minutes, 19 seconds rec-alibrating our cost for this financial year. Uh I [clears throat] have mentioned earlier about our journey to achieve uh cost of almost 4,000 9:29 9 minutes, 29 seconds rupees a ton by March 26 exit. Meanwhile uh uh in terms of the full year of 26 we 9:37 9 minutes, 37 seconds uh have given a figure we have achieved a figure of 4,400 rupees a return which is almost 10% higher to our own um target uh for the reasons which I 9:46 9 minutes, 46 seconds mentioned before. uh although in in the month of March we are closer to at uh 14,100 rupees a ton uh since there are 9:55 9 minutes, 55 seconds these are like fast moving global situations and u and dynamisms over the energy costs and other basically 10:03 10 minutes, 3 seconds expected heights uh in the in the in the fuel and uh diesel and all. Therefore it will be very difficult to provide any 10:11 10 minutes, 11 seconds long-term estimate for right now uh till the time things stabilize over the next two three quarters. uh before 10:18 10 minutes, 18 seconds I would say that on on strong conviction on certain components of costs uh for example which I have uh a is in terms of 10:26 10 minutes, 26 seconds the overall pay raw material cost uh led by flyers and in terms of the green energy cost for example which is going to be substantial improvement further in 10:35 10 minutes, 35 seconds in our overall supplyation. Therefore, I strongly believe 150 to 200 rupees will uh savings will come from this uh components. on the overall console 10:44 10 minutes, 44 seconds volumes we are expecting it to grow uh in FI28 27 by almost uh by almost say 8% 10:52 10 minutes, 52 seconds to around 80 million or turns and we are cognizant of the fact that we will will uh focus on uh value with the trade 11:00 11 minutes volumes and premium cement uh and therefore we are keeping it till uh moderate uh overall say growth uh in the 11:08 11 minutes, 8 seconds volumes card uh at at an industry level we we believe that Given the headlines of inflation and weak monsoon uh the 11:17 11 minutes, 17 seconds industry may grow at around say five to five and a half%. Uh we continue to remain committed to our end state sales 11:25 11 minutes, 25 seconds volumes targeted uh supported by a transfer focus on higher of the capacities and while operationalizing the uh new capacities and stabilizing 11:34 11 minutes, 34 seconds them. Therefore with this proposed uh ongoing additions of 10 millions of ZU which you are aware of which I have 11:41 11 minutes, 41 seconds already shared with you in the investor day some of them for example Salaiwa and Ligant and so and so forth. We are 11:50 11 minutes, 50 seconds expecting to hit capacity of almost 119 million tons by end of FY uh 27. 11:58 11 minutes, 58 seconds uh capacity expansion plans. We are recalibrating in line with our uh approach to take the advantages of the recent railway policies on bulkman 12:06 12 minutes, 6 seconds terminals uh with additions pursued more gradual uh in terms of first focusing on optimizing the current capacities in 12:14 12 minutes, 14 seconds hand. Uh this will uh also help in terms of a very disciplined allocation of capital and a steadfast commitment to 12:21 12 minutes, 21 seconds maximizing the return on the capital employed. Looking ahead, India's long-term infrastructure story uh 12:28 12 minutes, 28 seconds remains uh fundamentally very strong and particular. However, with the expected inflationary pressure, weak monsoon and 12:36 12 minutes, 36 seconds the cement demand is expected to remain soft. Against this backdrop, uh Amuda remains focused on discipline execution, 12:44 12 minutes, 44 seconds strengthening brand penetration, scaling trade sales, driving premium cement sales and maintaining the cost and capital discipline. Thank you. and uh I 12:53 12 minutes, 53 seconds will now hand it back to uh the moderator back. 12:57 12 minutes, 57 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 13:06 13 minutes, 6 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 13:15 13 minutes, 15 seconds question. Ladies and gentlemen, we will wait for a moment while the question assembles. 13:22 13 minutes, 22 seconds We'll take our first question from the line of Naven Sardu from ICA securities. Please go ahead. 13:28 13 minutes, 28 seconds So friends also just to inform you that we also have u our fulltime director and 13:35 13 minutes, 35 seconds um uh senior Mr. Karani also on the call. He has just joined us. So I welcome Saran Bay and uh uh yeah I just 13:43 13 minutes, 43 seconds basically did the opening remark and u uh we are now on the Q&A. So over back to the uh moderator please. 13:51 13 minutes, 51 seconds Yes, we have a question from Naven Si. Naven. Yeah. Yeah. Hi. Please go ahead. 13:59 13 minutes, 59 seconds Yeah. U Thank you uh for the opportunity. Uh my first question was on the volume growth front. So in this 14:07 14 minutes, 7 seconds quarter as per the investor uh volumes have grown by about 10 odd percent. But if I adjust them to the orient cement 14:17 14 minutes, 17 seconds volumes, uh they are more like flattish on a Y basis. And here my question is that if 14:26 14 minutes, 26 seconds if we are seeing some pressure on volume because for FY27 we have given a guidance of 80 million 14:33 14 minutes, 33 seconds tons which is roughly a growth of 9 to 10%. against the backdrop that we are 14:40 14 minutes, 40 seconds expecting a much softer industry growth of 5%. So I'm just wanting to uh request a overall color on your volume. 14:53 14 minutes, 53 seconds Hello. Yeah, N sorry. Yeah, sorry for the snag. So Naven um so you're right absolutely in terms of the volume uh 15:02 15 minutes, 2 seconds especially for this March quarter it has been little uh muted uh but now 15:07 15 minutes, 7 seconds [clears throat] 15:08 15 minutes, 8 seconds uh for the FY27 uh when I given you indication of 80 million which is around closer to say 8% 15:15 15 minutes, 15 seconds uh we have the visibility in terms of uh a stabilizing the acquired assets of u 15:23 15 minutes, 23 seconds sanit uh B the u uh ongoing expansion which 15:30 15 minutes, 30 seconds will get commissioned in the next few months like between let us say now to uh September we'll see uh the capacities 15:39 15 minutes, 39 seconds will get commissioned and we'll also then stabilize then so I have the uh incremental volume also coming from 15:46 15 minutes, 46 seconds these capacities which I mentioned almost around 10 million tons and of course stabilizing the the acquired 15:53 15 minutes, 53 seconds assets of penna and sani Uh yeah so on that basis basically uh we are expecting 16:01 16 minutes, 1 second uh uh although with a with a softer demand uh for the year. 16:07 16 minutes, 7 seconds Did I answer your question nin? Um yeah yeah thank you. My my second question then was on the overall capeex uh uh 16:15 16 minutes, 15 seconds plan. So as mentioned in this presentation we are re-calibrating our entire uh uh growth plan. we have visibility of taking that to overall 16:24 16 minutes, 24 seconds capacity to 119 but I'm just trying to understand by when will uh like you know 16:30 16 minutes, 30 seconds uh we get a color on the next leg of it because the first day uh when the asset was acquired the vision was to like you 16:39 16 minutes, 39 seconds know I think uh double the capacity and take it to 140 in the inter we increased it to 155 and now we are taking a 16:48 16 minutes, 48 seconds slightly a step back so my question was from a growth point of view uh is there a by when first of all can we get a 16:56 16 minutes, 56 seconds color of the big picture or the next longerterm plan and in the same breath is it that we are more open to pursue 17:06 17 minutes, 6 seconds inorganic growth which helps us catapult to that uh overall growth target or we still believe organic uh is the is the 17:13 17 minutes, 13 seconds uh way to go uh that thank you so so so namin uh our primary focus 17:20 17 minutes, 20 seconds remains organic in terms of stabilizing our ongoing expansions and also already 17:28 17 minutes, 28 seconds acquired assets. So therefore I would say that that remains the primary focus. 17:32 17 minutes, 32 seconds I think we have a good headroom uh to improve our overall say market share by improving the capacity utilizations of 17:39 17 minutes, 39 seconds these plants and therefore uh as I said we are going to follow a quite a disciplined uh capital allocation and uh 17:46 17 minutes, 46 seconds uh given the headwinds right now for the industry uh it makes sense to push little bit of the capex uh but without 17:54 17 minutes, 54 seconds uh losing eyesight on the overall say market share and the volume volume improvement from the existing assets and the ongoing u expansions 18:02 18 minutes, 2 seconds uh to answer your question I think um maybe uh what I would say that u uh the target plans of FI28 18:10 18 minutes, 10 seconds it it could move uh a year or two let us say on a safer set I would say that uh uh FI30 but as I said it doesn't really 18:19 18 minutes, 19 seconds matter what matters is how you are able to ramp up the volume from your overall existing assets and I have a substantial good headroom to ramp up over there even 18:27 18 minutes, 27 seconds if I hit 120 million tons by end of 27 it will give a good uh leverage of the overall market opportunity. 18:38 18 minutes, 38 seconds Helpful. Thank you so much. 18:41 18 minutes, 41 seconds Thank you. Next question is from the line of Rashi Chopra from City. Please go ahead. 18:48 18 minutes, 48 seconds Thank you. Just uh on the continue on the previous question. What is the cleaner capacity as of now? 18:56 18 minutes, 56 seconds So Rashi as of now we are sitting on um 73 uh million tons of cleaner uh capacity 19:07 19 minutes, 7 seconds and you will be adding another 4 million this year. 19:10 19 minutes, 10 seconds Yes. Uh so at uh uh Maraka and uh at u at like Pa Marwward you will be adding 19:18 19 minutes, 18 seconds up almost like 5 million. So Pam Marad is 3 million uh sorry 2 million and Marata is another 2 million 4 million. 19:28 19 minutes, 28 seconds Yeah. 19:29 19 minutes, 29 seconds Okay. And you mentioned earlier on that the uh 56% utilization was for the year and 10 hours was 47. Is that correct? 19:39 19 minutes, 39 seconds That is true. That is true. 19:42 19 minutes, 42 seconds Okay. And uh the next question on cost now for for for the full year the cost is 4,400. 19:49 19 minutes, 49 seconds For the quarter what was the average cost? 4500. 19:56 19 minutes, 56 seconds For the quarter rashi, we are uh sitting at almost 4,250 rupees uh for the for 20:04 20 minutes, 4 seconds the u for the uh for the overall say uh quarter and plus some of these increases what we have seen from the overall 20:12 20 minutes, 12 seconds escalation. So I would like let us say that a normalized was almost 4250 and was another uh 250 rupees which we have seen increases. So almost we are at now 20:21 20 minutes, 21 seconds 4,500 rupees a turn for the quarter of March right and you were saying that the the 20:29 20 minutes, 29 seconds industry costs have gone out by anywhere gone up by anywhere in the range of 400 to 500. So is it safe to assume that because of the crisis you will see 20:38 20 minutes, 38 seconds another 2 200 250 rupees increase in costs which will get offset by your fly 20:45 20 minutes, 45 seconds ash green energy etc. Is that the is that how you should be thinking about it? 20:50 20 minutes, 50 seconds Sorry I I I I I So you indicated that so we at 4500 now on cost. You're you said 150 to 200 is a 20:59 20 minutes, 59 seconds reduction that you're expecting because of fly ash gene energy right? So that's 150 to 200 but the overall industry cost 21:06 21 minutes, 6 seconds has gone up by more right because of the West Asia crisis. So is that 150 to 200 already capturing the increase in 21:13 21 minutes, 13 seconds industry cost or this 180 150 to 200 decline in your internal cost and then there's an increase in cost because of the war beyond this. 21:24 21 minutes, 24 seconds So I see like as I said the 4500 which is for the March quarter has already 21:31 21 minutes, 31 seconds taken the heat of existing increases of of almost say 250 rupees. So I would say that 4500 uh safety I would say is on a 21:40 21 minutes, 40 seconds on a peak basis let us say on a higher basis which we have seen bearing like any aberation of plus - 50 rupees but otherwise you will see a journey which 21:49 21 minutes, 49 seconds will actually start coming down uh in passing quarters. uh so uh although like 21:57 21 minutes, 57 seconds for example with the overall situation how the overall energy uh situation emerges I would not give with conviction 22:04 22 minutes, 4 seconds but I strongly believe that yeah this is like uh the peak which we have hit and should see a progressive improvement. 22:12 22 minutes, 12 seconds So if I can just rephrase this if nothing increases further in terms of uh global prices you will see a decline of at least 130 to 200. 22:22 22 minutes, 22 seconds Absolutely. Well summarized absolutely okay and on the pricing what has happened to offset these cost pressures cement pricing 22:30 22 minutes, 30 seconds so that's interesting rashi uh so you're hitting on both the right questions uh on the pricing u like industry has seen 22:37 22 minutes, 37 seconds um a modest uh improvement of u I would say 10 rupees u in few pockets let us 22:45 22 minutes, 45 seconds say 15 20 rupees but that's like in a very selected u uh area geographies otherwise 22:52 22 minutes, 52 seconds ballpark for the quarter of March it around ballpark to 10 rupees. Now with 23:00 23 minutes uh with the demand getting little softer uh the pressure on pricing uh uh 23:06 23 minutes, 6 seconds definitely is higher and uh despite the circumstances of costs gone up uh 23:14 23 minutes, 14 seconds unfortunately u uh industry is still uh under the uh relentless pressure and not able to pass on the price. 23:25 23 minutes, 25 seconds Got it. And this last section what was the capex for the year? 23:30 23 minutes, 30 seconds So capex for the year we are keeping it little moderate and ballpark when you say this. So you're thinking for fi 26 23:37 23 minutes, 37 seconds fi 26 is closer to about 7, 500 or uh I will just answer because there will be another question. uh so 23:46 23 minutes, 46 seconds for FY27 we are keeping estimate of almost 6,000 to 6,500 CR and that will also that is 23:55 23 minutes, 55 seconds how things pan out. It may change uh couple of hundred cr here and there but that's the estimate what we have. 24:02 24 minutes, 2 seconds Thank you. 24:04 24 minutes, 4 seconds Thank you. Next question is from the line of Indrajit Agarwal from CLSA. Please go ahead. 24:11 24 minutes, 11 seconds Hi, thank you for the opportunity. Uh congratulations on increasing both trade sales and premium mix. But on that note 24:18 24 minutes, 18 seconds if I look at slide 27 uh the realization has hardly moved QQ versus appears it is up some somewhere between one and a half 24:26 24 minutes, 26 seconds to 2%. So is it mainly because of mix or what is I think this week so in the gate absolutely you're right I 24:34 24 minutes, 34 seconds think uh the journey has just begun uh when we change the gear and therefore you will see it more uh differentiated 24:42 24 minutes, 42 seconds uh uh uh benefits coming in the subsequent quarters. uh what we have done is we have sustained the price 24:48 24 minutes, 48 seconds levels uh at uh 254 rupees a bag uh compared to in December. So from our own December quarter we are up by say 24:57 24 minutes, 57 seconds modestly at say 1 rupee uh and uh compared to say last year we were at 255. So yes the journey would further 25:05 25 minutes, 5 seconds see improvements uh with higher blended cement and more uh premium uh cement sales. So uh it is just begun. 25:17 25 minutes, 17 seconds Sure. Thank you. Uh second if I look at your blended utilation for next year would we add west 71 72% on your 25:25 25 minutes, 25 seconds expanded let's say weighted average capacity. So on that note probably you will not need additional capacity in FI28 as well. Um is that what is driving a more calibrated capex approach? 25:38 25 minutes, 38 seconds So I have uh nai also to um to answer this question. Uh this is yeah so so I 25:45 25 minutes, 45 seconds think the way we are looking at this uh new uh how we would look at defics is two three things. One is when we look at 25:53 25 minutes, 53 seconds our performance uh we need to we we know where are the places we need to improve on. Uh there are certain uh uh capacity 26:04 26 minutes, 4 seconds which is uh which is there which is in the wrong places. Uh and we and so we 26:11 26 minutes, 11 seconds will be adding few capacity in places which will help us in terms of reducing our cost logistics cost especi 26:17 26 minutes, 17 seconds especially as well as uh help us uh improve our uh penetration into into 26:25 26 minutes, 25 seconds those markets. uh I'm talking specifically into the markets where we have uh where we have high uh high market share and high uh recall value. 26:36 26 minutes, 36 seconds Uh so so those are the places that we would uh definitely look at uh uh expanding our uh our um our capacity 26:46 26 minutes, 46 seconds over there. The second thing is uh as we uh we would be looking at uh ex um uh as 26:54 26 minutes, 54 seconds we are expanding our clinker capacity uh the correspondingly geo capacity will also increase and uh uh this year we we 27:04 27 minutes, 4 seconds are uh apart from um apart from u Rajasthan and Maharashtra as you know 27:11 27 minutes, 11 seconds that we have won a u a limestone block in Assan again that's a completely new territory 27:18 27 minutes, 18 seconds for us. So that is one new area which we will start uh in maybe end of this year. 27:25 27 minutes, 25 seconds Uh and the second uh new area that we will be starting is in Mundra uh which is again uh completely new new clinker 27:33 27 minutes, 33 seconds line. So these are the two new projects apart from the new GU that uh will help us in terms of reducing our uh reducing our costs. 27:44 27 minutes, 44 seconds Thank you so much for the lovely answer. 27:46 27 minutes, 46 seconds One last one if I may. In light of this, how would we see any inorganic opportunity that comes up? Would you be interested or the focus would squarely be on organic growth right now? 27:56 27 minutes, 56 seconds Inorganically, we keep uh we keep evaluating but our focus right now is on 28:03 28 minutes, 3 seconds uh on green uh on organic development and green field expansion. Um that is our number one priority. 28:12 28 minutes, 12 seconds Sure. Thanks a lot. 28:14 28 minutes, 14 seconds Thank you ladies and gentlemen. In order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at 28:23 28 minutes, 23 seconds a time. You may join by the queue for follow-up questions. 28:27 28 minutes, 27 seconds We'll take our next question from the line of Jashindep Singh Cha from Namora. Please go ahead. 28:34 28 minutes, 34 seconds Hello. Uh thank you for the opportunity. 28:37 28 minutes, 37 seconds So my first question is regarding the cost structure especially in the fourth quarter also we saw that the fixed cost 28:44 28 minutes, 44 seconds which is employed to other cost has increased significantly y versus you know when we compare it to peers also I 28:52 28 minutes, 52 seconds I just uh wanted to understand uh while you say there was some you know vstation conflict uh that impacted the cost 28:59 28 minutes, 59 seconds however the conflict started towards the end of February and the packaging cost was also in the mid of March which impacted the industy I want to 29:07 29 minutes, 7 seconds understand why you know among all the peers Abuja is seeing such a increase in 29:15 29 minutes, 15 seconds you know the its cost of sales and secondly uh in your presentation you've also also mentioned that the freight cost was high because of some planned 29:24 29 minutes, 24 seconds shutdowns if I'm not wrong in third quarter also you took planned shutdowns you know normally the industry takes shutdowns in the second quarter so in 29:32 29 minutes, 32 seconds quarter three and quarter four where the volume growth was really strong the management decided to take plant shutdowns which resulted in higher cost. 29:39 29 minutes, 39 seconds So I just want to understand what is the you know rational behind taking plan shutdowns in volume push quarter and why are you know Abuja's fixed cost is 29:48 29 minutes, 48 seconds increasing way higher than its peers. My first confusion is I think so Jasp 29:55 29 minutes, 55 seconds uh uh when uh Rashi asked this and we have tried to explain u uh so in terms of picking out on our cost at 4500 which 30:05 30 minutes, 5 seconds I mentioned and from here you will see improvements but yeah your question is in terms of uh compared to the 30:12 30 minutes, 12 seconds competition why now few components which are relevant to my business uh I 30:18 30 minutes, 18 seconds mentioned about higher focus now on the branding advertisement to promote the u uh trade sales and premium cement. 30:27 30 minutes, 27 seconds Second is in terms of u higher repairs and maintenance cost and you're right that ideally one should do it during the 30:36 30 minutes, 36 seconds off uh of seasons like uh monsoons but not all the machines can be done uh during that period and uh there have 30:44 30 minutes, 44 seconds been few breakdowns also of the acquired assets of fennas and all. So under u uh under the planning and also under out of 30:52 30 minutes, 52 seconds planning you will do it. So therefore there have been those additional expenses of repairs and maintenance. Uh 30:58 30 minutes, 58 seconds then in terms of uh the back cost which although yeah came it in the in the last week of February to the overall say full 31:07 31 minutes, 7 seconds month of March. Uh when you promote and sell more premium cement then there are also some additional costs of logistics 31:14 31 minutes, 14 seconds and handling which also sits into uh to increase your cost. I also mentioned to you uh the uh journey which we want to 31:23 31 minutes, 23 seconds achieve in terms of uh improved uh uh heat uh consumption uh it is still uh uh 31:31 31 minutes, 31 seconds not coming in the range and therefore we still have a higher heat consumption and I would say ballpark 3540 kilo calories 31:40 31 minutes, 40 seconds u minimum which we have to improve. uh again I will attribute to some of the acquired assets actually when I look at 31:47 31 minutes, 47 seconds the IBIDA of uh AUA and ATC minus of the acquire assets the is actually higher by 70 80 rupees uh so it will be almost 31:55 31 minutes, 55 seconds like 800 rupees u uh uh uh and actually more than I normalize it but it is at least 800 rupees so uh I would say that 32:05 32 minutes, 5 seconds the acquired assets still are not uh basically uh coming in the range to our desire levels and for which uh I had 32:14 32 minutes, 14 seconds mentioned that the first priority is stabilize the overall operations achieve a good level of performance improvement. 32:22 32 minutes, 22 seconds Hence uh in the I think uh maybe couple of months uh we had taken the the entire 32:29 32 minutes, 29 seconds investor uh community uh to Sani plant just to showcase that how Sani is now in state of readiness and uh uh give higher 32:39 32 minutes, 39 seconds improved volume improvement. This I think we did in somewhere like March itself right okay March itself now that 32:46 32 minutes, 46 seconds is like for example we want to showcase that yes some of the assets have taken time but now they are states they're in the state of readiness uh sooner that I 32:54 32 minutes, 54 seconds will take you take all of you to penets also but before that we took you to Marwa now so so so the is known the 33:03 33 minutes, 3 seconds issues are known and uh therefore uh in my opening remarks also I mentioned about certain disappointments to us also 33:10 33 minutes, 10 seconds where We we think that 4500 is on a higher side and we are uh uh we are basically in a position to bring it down 33:18 33 minutes, 18 seconds in coming quarters. So uh therefore like uh you will see uh this is picked out and you will see an improvement prospectively from here. 33:28 33 minutes, 28 seconds Thank thank you for the detailed answer sir. Uh my next question is you know largely taking forward Naven's uh 33:35 33 minutes, 35 seconds question. So you know it first of all Ambuja is the only company which has given such a bearish scenario for F27 33:42 33 minutes, 42 seconds and I understand the rational that you have given behind it but you know with 5% industry growth and Ambuja expecting 33:49 33 minutes, 49 seconds an 8% growth uh there are certain capacities which are coming I completely you know understand that but what is 33:56 33 minutes, 56 seconds your target utilization from the assets of Shangi Orient and Pena for FI27 34:03 34 minutes, 3 seconds and uh and I understand there are some challenges So will there be additional capex required uh to bring the acquired assets to Abuja's uh set of standards? 34:14 34 minutes, 14 seconds We just want to understand this. 34:17 34 minutes, 17 seconds Thank you. So like uh Orient for example is operating at full capacity. So far as 34:24 34 minutes, 24 seconds u uh Sangi is concerned uh I will uh peg myself at uh almost like 65 to 70% and 34:33 34 minutes, 33 seconds so far as u uh Pena is concerned I will consider uh around 55 uh to 60%. In 34:41 34 minutes, 41 seconds terms of the utilization factors and the existing assets of Ambuja and FC I would 34:47 34 minutes, 47 seconds uh peg it to closer to around u uh 75 to 80%. So on a overall basis as an as a at 34:55 34 minutes, 55 seconds the omega concern level uh average uh in the situation the scenario which I have mentioned to you I would say 70 75% uh 35:05 35 minutes, 5 seconds ballpark utilization uh for a and you're right I'm like uh we have we we anticipate this software demand and 35:12 35 minutes, 12 seconds therefore we would go with this uh belief but if for any surprises positive in the industry and uh which we would all wish to uh this number will 35:21 35 minutes, 21 seconds definitely look positive but as of now situation is uh softer and sir any further capex uh to bring 35:29 35 minutes, 29 seconds these assets to a major summit. So as mentioned by Karanvai uh the the overall 35:36 35 minutes, 36 seconds say disciplined approach of capex where we want to now uh set up uh in the uh high potential market which we have now 35:44 35 minutes, 44 seconds completely done a uh mapping where we have market leadership. So which we will uh we have so he has already indicated few of the assets in in his nar 35:53 35 minutes, 53 seconds narrative but uh progressively now for example let me first commission the existing assets in hand which are 36:01 36 minutes, 1 second ongoing basically this 10 million and come to you all with the stabilizing and achievement of the capacities for them but passing quarters then we will also 36:09 36 minutes, 9 seconds highlight to you the capex program as its up. Sure. Mundra mentioned Mundra is very much now in the 36:17 36 minutes, 17 seconds in the in the pipeline and so are few updates which he mentioned. Thank you. Thank you so much. 36:26 36 minutes, 26 seconds We'll take a next question from the line of Manish Somaya from Caner. Please go ahead. 36:33 36 minutes, 33 seconds Uh good evening and uh thank you for taking my questions. uh you know b I just wanted to ask uh we have talked quite a bit about uh fiscal 27 and 36:42 36 minutes, 42 seconds outlook but what I'm trying to reconcile is how should we reconcile between the 36:50 36 minutes, 50 seconds improvements that you're planning in fiscal 27 is that dependent how much of that is dependent on internal execution versus 36:59 36 minutes, 59 seconds external normalization maybe if you can just uh help us understand apps I would say manage by uh thank you very 37:08 37 minutes, 8 seconds a very good question um I would say that the external factors will affect most of the industry players therefore I 37:16 37 minutes, 16 seconds will give more weightages on the internal uh factors and uh the uh execution of the same uh which will uh 37:25 37 minutes, 25 seconds bring the overall uh differentiation and uh uh leadership uh leverage on that so 37:32 37 minutes, 32 seconds that I would I I would put it in this money. So, so Manish if I may just come here. uh current year I think if you 37:40 37 minutes, 40 seconds look at our performance uh uh you know we realize that uh where where where where the gaps are and uh and that's 37:50 37 minutes, 50 seconds exactly where we are hyper focused on and improving on those performance and u you know based on what whatever guidance 37:59 37 minutes, 59 seconds uh we are giving uh this is 100% which is controllable uh uh which is controllable by us and if you're not 38:08 38 minutes, 8 seconds able to achieve the guidance. It's purely because of our internal execution and not not any other factor and um uh 38:16 38 minutes, 16 seconds and that's where that's where uh the whole team uh is uh really focused on and delivering on on on the numbers now 38:25 38 minutes, 25 seconds that we are talking about and and we very and we're very confident that uh uh that 38:32 38 minutes, 32 seconds uh this year we we will be able to hit the numbers that we are talking about. Yeah, thank you. 38:40 38 minutes, 40 seconds The the other my second followup is on the premium products. Now they constitute about 35 to 36% of trade. 38:48 38 minutes, 48 seconds What should be the realistic target uh that should that we should have in our models uh as we go out to fiscal 27 and 38:55 38 minutes, 55 seconds maybe even beyond you know what's the upside to that uh 35 or 36%. 39:02 39 minutes, 2 seconds So Manish uh right now for example uh I would say that 36 is a good number for us to sustain and therefore u that is 39:11 39 minutes, 11 seconds what for example uh can be considered uh in terms of the share of premium cement as percentage of trade sales. 39:22 39 minutes, 22 seconds Okay, wonderful. Thank you so much. I'll get back in the queue. Thank you. 39:27 39 minutes, 27 seconds Thank you. We request participants to restrict to one question at a time too. 39:32 39 minutes, 32 seconds We'll take our next question from the line of Pratik Kumar from Jeff. Please go ahead. 39:40 39 minutes, 40 seconds Yeah. Good evening. Uh my question is on cost again. Yeah. So um in the last third quarter corn call uh which 39:48 39 minutes, 48 seconds happened like around start of the February management talked about uh uh like cost of 4,000 rupees. Yes, we 39:55 39 minutes, 55 seconds talking about 4,100 rupees, 4,000 rupees in January. We're talking about 4,100 rupees in exit of this 40:04 40 minutes, 4 seconds quarter. So, how the C quarter cost is 4,500. I'm unable to understand. Now, the question is on the balance sheet. 40:12 40 minutes, 12 seconds Uh, so your ACC's operating cash flows are negative, sharply negative for the year. 40:19 40 minutes, 19 seconds uh and uh your overall consolidated Amuja's uh cash flows uh also like negatively impacted by negative working 40:27 40 minutes, 27 seconds capital. Can you throw some light on this? Thank you. Uh thanks I will take the second question sir. In terms of the 40:35 40 minutes, 35 seconds ACC, Ambuja if you see uh ACC has receivable from Abuja under the NSA and uh you also uh would be aware that we 40:44 40 minutes, 44 seconds have taken shareholders approval in terms of the ICD wherein u uh uh uh this receivables will get paid off. So like 40:52 40 minutes, 52 seconds you'll find u in the in the coming quarter this will get knocked off with the ICD number one. So uh it's like as a 41:00 41 minutes one uh consult business under the MS the receivables are therefore ATC you will find uh negative uh operating cash flow. 41:08 41 minutes, 8 seconds uh so far as Amuja is concerned I think if you would have seen we have a good level of inventory which is higher but 41:16 41 minutes, 16 seconds when it comes to receivables these are under good control uh with the higher degree of trade sales and therefore on a 41:24 41 minutes, 24 seconds overall working capital of Ambuja you will see only improvement for the uh March quarter compared to December quarter. uh your question about um about 41:33 41 minutes, 33 seconds the cost uh so Katik I think u uh uh what we had envir to what is the reality 41:42 41 minutes, 42 seconds yes there are differences because of the overall uh acquired asset situations and u uh many times uh those anticipations 41:51 41 minutes, 51 seconds uh uh for example have not worked upon and then suddenly the packing bag situation which have come up and also 41:59 41 minutes, 59 seconds for example when Um Nam mentioned about taping the 10% growth. Uh we also lost a good level of volume because of the packing bag issues and all. So there are 42:08 42 minutes, 8 seconds these situations which will which will have to be dealt with. But luckily now at least we know that this is the peak level of a cause which we have hit and 42:15 42 minutes, 15 seconds from here for example as per also mentioned that the uh number will be uh tapering down with every passing 42:22 42 minutes, 22 seconds quarter. Uh so reasons I have already explained right from branding to repairs and maintenance to the higher freight 42:30 42 minutes, 30 seconds cost the higher lead for example the AGT or the uh for example when it comes to IGIDA the lower government incentives 42:38 42 minutes, 38 seconds which we are now that also for example we we we have a lower government incentive a because of the GST rates which have come down B we also exhausted 42:47 42 minutes, 47 seconds some of the plants which were giving uh having the incentives and third in some of the uh state we are now acrewing on 42:55 42 minutes, 55 seconds incentive on um on uh virtual uh uh uh visibility basis basically certainty basis basically so that uh we don't want 43:03 43 minutes, 3 seconds to have spending the long-term approvals and all so there are combination of these accounting policies and um and u 43:11 43 minutes, 11 seconds the the uh situation of uh some of the plants which have uh uh not matured to what we thought more so for the acquired assets. Yeah. 43:22 43 minutes, 22 seconds Uh sure I get some clarification when you Yeah go ahead please. 43:28 43 minutes, 28 seconds Yeah one clarification uh in the opening remarks it was said that you had like 4,100 rupees of cost. Is it just a day 43:36 43 minutes, 36 seconds cost or a month cost or a last like what is that cost? we we we had uh basically 43:42 43 minutes, 42 seconds hit it 4,100 for the month of March uh uh fatigue but then um but as I said 43:49 43 minutes, 49 seconds that except those the escalations of war for example almost 250 rupees which which affected us so on a normalized 43:57 43 minutes, 57 seconds basis I was paying 4100 for the month of March 44:05 44 minutes, 5 seconds sure okay thank you I'll get back to thank Thank you. Next question is from the line of Amar Singha from Nepon India AMC. Please go ahead. 44:16 44 minutes, 16 seconds Yeah. Uh hi gentlemen. Thanks for taking my question. Uh u my person is also following up with 44:23 44 minutes, 23 seconds the question uh on the first run. Uh so if you see on the first week of February when we had the last phone call and if I 44:32 44 minutes, 32 seconds quote uh the average cost for the quarter was 4,500 rupees along with the one off whereas we had exited December quarter went below 4,000 rupees of cost. 44:43 44 minutes, 43 seconds Uh that was the commentary on the first week of I understand we do carry a good amount of inventory as well. at least a 44:51 44 minutes, 51 seconds month on on that account for most of the uh RO and important 44:57 44 minutes, 57 seconds part. Uh furthermore, we had some oneoff in the P3. We have uh 45:06 45 minutes, 6 seconds increased or enhanced our uh contribution in this quarter. Pricing was slightly better than the previous quarters. Usually this is a better 45:15 45 minutes, 15 seconds quarter. This logically contribute towards the better profitability. 45:20 45 minutes, 20 seconds um despite everything and also uh with the previous answer that last month was 4,100 45:27 45 minutes, 27 seconds uh uh which is cost trying to understand how to add one add up the entire cost for the quarter on 45:36 45 minutes, 36 seconds the life of commentary of December 400 uh that was given on first of February 45:44 45 minutes, 44 seconds with the inventory which generally the people carry along with your community currently on the March 4 to 100° average 45:51 45 minutes, 51 seconds cost. Uh also the which mentioned most of them are micro factors this should 45:59 45 minutes, 59 seconds impact every player or most of the players in the in the industry. So far whatever results we have seen from the 46:08 46 minutes, 8 seconds large guys with the smaller guys uh the factors are not affecting too 46:13 46 minutes, 13 seconds much or in a totality uh in this quarter in just wanted to understand how should the 46:22 46 minutes, 22 seconds reason your last commentary along with the exact resulted along with the peer uh uh peers who have 46:30 46 minutes, 30 seconds reported numbers then how should we look been our outlook on that. 46:38 46 minutes, 38 seconds Thank you very much. 46:40 46 minutes, 40 seconds Okay. Thank you. No, I think see basically when uh in the December for example, we have been very upbeat in terms of some of the turnarounds which 46:47 46 minutes, 47 seconds you will see in some of our acquired assets of Pena for example more so specially and as you know Pena is uh uh 46:54 46 minutes, 54 seconds geographically uh more uh in in south and uh if you if you actually look at the numbers and south for example has 47:01 47 minutes, 1 second been one of the most affected geography for the March water. So we have taken some of the machines on shutdown and 47:09 47 minutes, 9 seconds basically there have been couple of breakdowns also and therefore which has increased my higher repairs and maintenance for the uh quarter of March. 47:18 47 minutes, 18 seconds Number one. Number two uh in terms of uh some of the acceleration which we have to give uh to our uh uh sales and 47:26 47 minutes, 26 seconds branding and advertisement is what we have given and the results of the same we will uh we will get actually as an 47:33 47 minutes, 33 seconds investment on u on our supply chain but this will more be accounted as a operating cost. So that is where for 47:41 47 minutes, 41 seconds example the uh branding and advertisement costs are higher. uh then uh uh of course for the month of March 47:49 47 minutes, 49 seconds there have been this abnormal cost for the packing for example and uh we have also uh seen a higher fuel cost and 47:58 47 minutes, 58 seconds higher fuel consumption also for example the moment uh if you don't have a right blend of fuel uh the consumption of the u uh uh uh fuel or the the heat 48:07 48 minutes, 7 seconds consumption is also higher so those also for example technically the technical KPIs have uh have got affected Now 48:16 48 minutes, 16 seconds that was when we also in December our quarter was at 4500 rupees cost uh for the for this quarter 4500 and uh March also for example we are almost at 4500. 48:28 48 minutes, 28 seconds Yeah. So I think look it in this manner that uh uh certain planned uh movements for the March could not rectify or we 48:37 48 minutes, 37 seconds could not also fulfill and therefore we have uh basically uh uh been at the same level to what we were in December 25. 48:49 48 minutes, 49 seconds Thank you. 48:50 48 minutes, 50 seconds I understand that part of 4500 versus 4500. I'm just trying to reconcile the 48:57 48 minutes, 57 seconds commentary quarter of 4,000 exit in December. This is a current commentary of 4,100 for the month of March. Uh just 49:05 49 minutes, 5 seconds because one month in February uh the I'm just trying to understand how the entire cost up because of that when we move 49:14 49 minutes, 14 seconds that inventory gets carried on for a couple of months. uh uh it is there uh and I I will appreciate if you can share 49:23 49 minutes, 23 seconds us uh uh quantification of cost item large cost item along with the benefits also which is coming uh from exit of 49:32 49 minutes, 32 seconds 4,000 rupees now exit of uh in March may not be now but later on also we can release that 49:39 49 minutes, 39 seconds so I know I the commentary the commentary I think uh again even if you remember the last call uh I had always 49:47 49 minutes, 47 seconds said at the exit month of March. So while you are considering for the whole March quarter of 26, no that was not the 49:55 49 minutes, 55 seconds the commentary was more about our uh aspiration and our uh plan to uh get uh 50:02 50 minutes, 2 seconds closer to 4,000 by month of March. Now uh basically uh therefore while the average would still be higher than not 50:10 50 minutes, 10 seconds at 4,000, therefore please don't don't mistaken with 4,000 as average for the March quarter. uh number one. Number two 50:19 50 minutes, 19 seconds uh of course like uh therefore I was uh highlighting that month of March for example barring this uh admiration of 50:26 50 minutes, 26 seconds the uh west Asia prices and uh you might say that we would have got little bit affected more compared to degree as 50:34 50 minutes, 34 seconds compared to others could be but yes we have uh uh we got affected with the overall uh packing bags and all uh and 50:43 50 minutes, 43 seconds therefore the pressure of volumes and therefore the pressure on um sales is and hence the higher advertisement branding or sales promotion happening 50:52 50 minutes, 52 seconds there. So therefore like uh uh we unfortunately could not uh uh come below 50:59 50 minutes, 59 seconds 4500 for this uh uh entire quarter of March 26. Thank you. 51:07 51 minutes, 7 seconds Yeah. Yeah. 51:09 51 minutes, 9 seconds Amber I request you to join back the Thank you. 51:15 51 minutes, 15 seconds We'll take our next question from the line of Kulkit Partney from Goldman Sach. Please go ahead. 51:21 51 minutes, 21 seconds Uh sir, thank you for taking my questions. 51:23 51 minutes, 23 seconds I have a couple of them. One is sir, for the Sanangei plant which is operating at 57% utilization, how important is for 51:31 51 minutes, 31 seconds the Nalia railway line to be ready and how far do you see Nalia being connected and ramped up in volumes at at Sani? 51:41 51 minutes, 41 seconds That's question number one, sir. 51:45 51 minutes, 45 seconds So pool kit our base model is not linked to uh Nadi railway line. Uh it is more 51:52 51 minutes, 52 seconds with the overall our marine intra for example and therefore u uh as we know that we have already ordered seven 52:00 52 minutes vessels uh which will be delivered u uh in a a progressive manner starting from next year. So that is what for example 52:08 52 minutes, 8 seconds Sangi will bring the trains and then otherwise we are counting on the uh road movement from Sangi. Uh the railway line 52:16 52 minutes, 16 seconds only will be an add-on but not being considered in the base model. 52:21 52 minutes, 21 seconds Sure. So so so the plan is to ramp up even if Nalia takes a little longer to be ready. Is that the right way to look at it? 52:28 52 minutes, 28 seconds Yes. Yes. for right now although in Sangi we don't have a ramp up per se of capacity expansion but yes ramp up of the existing capacity the utilization 52:36 52 minutes, 36 seconds part correct absolutely sir so my second question is is it fair to assume that as and when there is a final resolution on 52:44 52 minutes, 44 seconds the JP assets that those assets would come uh to to uh us or is there a possibility given that we already have 52:53 52 minutes, 53 seconds our own organic growth plan uh a lot of work to do on on increasing in capacity utilization that we could also not be 53:02 53 minutes, 2 seconds considering uh having those assets. How should we look at it? 53:06 53 minutes, 6 seconds So bolit I will still consider that for JP uh the RP is uh another listed company and therefore it would be 53:15 53 minutes, 15 seconds inappropriate from my side to enter anything on that. Uh but as things progress uh whatever development happens we'll come to know. 53:26 53 minutes, 26 seconds Thank you. We'll take our next question from the line of Pinatian from HMBC. Please go ahead. 53:33 53 minutes, 33 seconds Uh thank you. So I have two questions. 53:35 53 minutes, 35 seconds Uh my first question is um given Abuja is the fourth company to have reported earnings uh and the AIDA pan is uh is the lowest with uh high cost inflation. 53:46 53 minutes, 46 seconds Uh do you see uh the industry and the company raising cement prices in the next few months to pass on to the full 53:53 53 minutes, 53 seconds cost inflation or can we expect further margin deterioration? uh with the inability to raise prices. 54:02 54 minutes, 2 seconds So bakin u um I would say that uh given the uh scenario of demand will be very 54:10 54 minutes, 10 seconds important to uh basically see the price uh price uh being passed on to the uh to 54:16 54 minutes, 16 seconds the customers and as of now I anticipate uh the the overall demand looks to be 54:24 54 minutes, 24 seconds for right now when I look at say April and uh now in May uh with little subdued 54:31 54 minutes, 31 seconds and soft. Therefore uh uh therefore for example when you attempt for say X uh I 54:38 54 minutes, 38 seconds would be happy even uh even if the industry gets uh uh half of the same. So that is like for example right now uh uh 54:46 54 minutes, 46 seconds the situation is but yes uh cost on the other side has gone up by at least 25 rupees. So that is like uh uh the only 54:55 54 minutes, 55 seconds way then to to resolve and protect the margin is to to focus on our uh own cost of production. Uh and that is therefore 55:03 55 minutes, 3 seconds I was highlighting the internal factor will be playing more important what Manish Sumaya had asked the internal factor will be more important compared to the uh external factor. 55:16 55 minutes, 16 seconds Sure. My second question is given Abuja's cost delivery has been uh all over the place over the last few quarters. Uh can you give us some 55:24 55 minutes, 24 seconds guidance uh where you move away from cost to AIDS person uh you know by FI28? 55:30 55 minutes, 30 seconds Uh given where your ADITA pan is today and over the next two years where do you see the AIDA perton reach? Uh and what are the building blocks of that margin? 55:38 55 minutes, 38 seconds Uh what kind of price increases? What kind of cost savings? What kind of turnaround do you want to see or do you expect in the next two years? 55:46 55 minutes, 46 seconds So pinakin u I think uh it will be a coolant task for any industry person to give any estimate of IIDA per turn at 55:54 55 minutes, 54 seconds this stage. I would rather uh still uh continue my my efforts on cost and therefore for example uh one thing is 56:02 56 minutes, 2 seconds like 4500 rupees a term uh let us say it picks out and then it starts coming down from here uh to what journey we will go 56:10 56 minutes, 10 seconds I think progressively we'll keep you posted uh and especially next two three quarters as things looks more brighter and clear but for right now uh cost 56:20 56 minutes, 20 seconds remains the key focus area obviously like when you focus on trade sales and when you focus on premiums in this will 56:27 56 minutes, 27 seconds keep giving you more mitigations. Uh but I think any guidance on IDA will be difficult at this stage. But but let me 56:34 56 minutes, 34 seconds just add that cost we are looking at roughly to 250 rupees a ton reduction this year and then another reduction of 56:40 56 minutes, 40 seconds 250 rupees next year as well that that is the minimum reduction that we are looking at. Okay. Thank you. Thank you very much. 56:49 56 minutes, 49 seconds Thank you. 56:51 56 minutes, 51 seconds Participants are requested to do requested to restrict to one question at a time. Please next question is from the line of Rahul 57:00 57 minutes Gupta from Morgan Stanley. Please go ahead. 57:03 57 minutes, 3 seconds Yeah. Hi, thank you for taking my question. My first question is um um now that you have talked about um cumulatively 500 rupees per ton of cost 57:11 57 minutes, 11 seconds improvement over the next couple of years. Uh are we shying away from the earlier target of rupees 3650 that you 57:18 57 minutes, 18 seconds had shared earlier? That is my question number one. 57:22 57 minutes, 22 seconds So we are not shying away from our target. I think uh uh as we as we told earlier also we need to focus on our 57:31 57 minutes, 31 seconds execution. We we still have there are multiple steps on the cost that we need to take uh between manufacturing between 57:38 57 minutes, 38 seconds raw material and between logistics. Uh and we are confident that uh we we will be able to achieve that number. I think 57:46 57 minutes, 46 seconds it's just we are giving you a realistic in terms of where we will be able to achieve in next two two years time. Uh but that does not mean that we don't 57:54 57 minutes, 54 seconds have the runway to go to the earlier target that we have set. We we know what are the steps we need to take. We know where where we need to where where where 58:02 58 minutes, 2 seconds we need to improve in terms of our uh efficiency and that's where that's where we are focused on. But this is something 58:09 58 minutes, 9 seconds uh 500 is what we can commit right now for the next two years. 58:14 58 minutes, 14 seconds Got it. Got it. So I have I have one more clarification that I want um Karan is um you talked about um um uh shifting 58:23 58 minutes, 23 seconds away from 155 million ton capacity. So just the clarification that the company had earlier guided for 15 million t of 58:30 58 minutes, 30 seconds deep bottlenecking exercises across assets. So does that stay or there will be some change on that as well? 58:37 58 minutes, 37 seconds So so that those those still continues. 58:40 58 minutes, 40 seconds I think it's just timing which will differ based on based on where we get the maximum return of the return on the on the investment. 58:50 58 minutes, 50 seconds Got it. Thank you. One final question. I remember in second quarter and third quarter the company was already accelerating your branding and 58:57 58 minutes, 57 seconds advertisement cost. So it would be helpful if you can help us understand what would be overall branding and advertisement cost for full fiscal 26. 59:05 59 minutes, 5 seconds Thank you. 59:07 59 minutes, 7 seconds So uh for the full fiscal year uh 26 we are uh closer to almost like uh almost 59:15 59 minutes, 15 seconds like u uh 700 rupees a turn basically uh 70 rupees a turn basically. Yeah 70 59:24 59 minutes, 24 seconds rupees a turn basically uh on the 4 year basis of 26. Thank you. 59:31 59 minutes, 31 seconds Next question is from the line of invest. Please go ahead. Yeah, thanks for the opportunity. One question for Karan by one for Vinuji. Uh uh Karan by 59:40 59 minutes, 40 seconds one question. What prompted us uh for a reset right now? Uh if you could highlight five key monitorables that probably has set for yourself for last 59:49 59 minutes, 49 seconds for next one year and uh how does SF cut in overall scheme of things after the reset? Sorry, can you repeat the question? I couldn't hear you properly. 59:59 59 minutes, 59 seconds So the first question is uh what prompted us for a reset right now? 1:00:04 1 hour, 4 seconds Second uh what are the five key monitorables that you have laid out for yourself and third how does SLA fit in overall scheme of things after the reset? 1:00:15 1 hour, 15 seconds Yeah. So I think why why the reset? I mean u it's it's quite evident our performance has not been great. Uh we've 1:00:22 1 hour, 22 seconds not been able to uh we've not been able to deliver what we have promised to our shareholders and uh uh and so that is 1:00:31 1 hour, 31 seconds number one. I think if we have to if we have to assess ourself uh we we really need to improve on our on our cost. Uh 1:00:40 1 hour, 40 seconds that is number one. I think the key KPIs that we are putting uh for for ourself is we need to reduce we need to uh two I 1:00:50 1 hour, 50 seconds would say five things that we need to focus on. One is uh L1 plants delivering to the market uh the discipline on L1 1:00:58 1 hour, 58 seconds plants delivering to the to the respective market. Second discipline is on uh uh on on on trade versus non-trade 1:01:09 1 hour, 1 minute, 9 seconds uh sales. Uh number three is on our uh raw material consumption uh reducing our 1:01:16 1 hour, 1 minute, 16 seconds cost on raw material as well as on the on the electricity front uh energy consumption. 1:01:23 1 hour, 1 minute, 23 seconds uh and and uh number four is uh improving our uh improving our uh uh I I 1:01:32 1 hour, 1 minute, 32 seconds would say channel network in terms of to help us increase our uh increase our sales. So so I think these are the five 1:01:39 1 hour, 1 minute, 39 seconds things but predominantly if I would say 80% of it is to do with the cost and we really need to we really need to get our 1:01:47 1 hour, 1 minute, 47 seconds u act in order in terms of to make sure that we are able to reduce our cost. And uh so so that that that is what we are 1:01:55 1 hour, 1 minute, 55 seconds looking at. Until the time we are not able to deliver on what we are promising um I don't think it makes sense to to 1:02:03 1 hour, 2 minutes, 3 seconds make more uh to make more uh capital investment because you don't get the returns on those on those capital 1:02:10 1 hour, 2 minutes, 10 seconds invested as well and on uh you had a second question. Yeah on uh 1:02:20 1 hour, 2 minutes, 20 seconds service agreement I think for a few of the plans that we have tied up with how how should we look at that on overall yeah sure so so based uh contracts this 1:02:30 1 hour, 2 minutes, 30 seconds is something that uh uh is is part of uh part of these initiatives because we do believe that what we need to what we 1:02:38 1 hour, 2 minutes, 38 seconds need our teams to focus on and what uh where they where do they need to put their energy on uh we do believe that 1:02:44 1 hour, 2 minutes, 44 seconds there are uh at least in India Now there are enough competent uh partners out there who can who can run uh who can run 1:02:54 1 hour, 2 minutes, 54 seconds the plants uh uh at the at the efficiency level that we we would aspire to and and that's how uh that's how 1:03:02 1 hour, 3 minutes, 2 seconds we're looking at and second obviously given the uh history of Abuja in ECC I 1:03:08 1 hour, 3 minutes, 8 seconds think uh uh the SLA partners help us in terms of uh cleaning up all the past uh you know union issues and all of that. 1:03:18 1 hour, 3 minutes, 18 seconds So, so, so from that perspective, it really helps us uh in terms of reducing our cost and improving our efficiency. 1:03:26 1 hour, 3 minutes, 26 seconds Thank you. 1:03:27 1 hour, 3 minutes, 27 seconds Uh, thank you so much. 1:03:31 1 hour, 3 minutes, 31 seconds Next question is from the line of Ashi Shien from McQuary. Please go ahead. 1:03:37 1 hour, 3 minutes, 37 seconds Uh, hi sir, good evening. uh sir uh you know it is it is great to see uh you know explicit capital discipline but in 1:03:44 1 hour, 3 minutes, 44 seconds that context you know I just want to understand this 65 to 70 billion rupees of annual capex uh for the next two 1:03:52 1 hour, 3 minutes, 52 seconds years uh that we're talking about can you break it down uh ballpark in terms of uh you know growth versus cost 1:04:00 1 hour, 4 minutes efficiency versus any other initiative that it includes yes so so roughly roughly 4 billion is 1:04:08 1 hour, 4 minutes, 8 seconds what uh is already the capex which is already under execution uh and it is implementation of that uh 1:04:15 1 hour, 4 minutes, 15 seconds which includes uh which includes uh capacity which includes uh WHS which 1:04:22 1 hour, 4 minutes, 22 seconds includes your fly uh uh transportation system that we need and the balance is 1:04:28 1 hour, 4 minutes, 28 seconds uh is uh uh I would say uh debottle making plus uh uh plus uh maintenance 1:04:35 1 hour, 4 minutes, 35 seconds kept Yeah. 1:04:40 1 hour, 4 minutes, 40 seconds So, yeah. Yeah. So, yeah. Basically, I hope that answers your question. Yeah. 1:04:48 1 hour, 4 minutes, 48 seconds Ash. Yeah. Yeah. Thank you. 1:04:52 1 hour, 4 minutes, 52 seconds Next question is from the line of Amit Murala from Access Capital. Please go ahead. Uh, hi. Uh, thanks for the opportunity. 1:05:00 1 hour, 5 minutes Uh I just wanted to understand more from a strategic perspective uh like u when Adani had acquired the incident assets 1:05:09 1 hour, 5 minutes, 9 seconds uh you had voiced out a ambition to kind of uh become the industry leader and double capacity and volume. So in that context the current guidance seems to be 1:05:18 1 hour, 5 minutes, 18 seconds quite subdued. So is it fair to say that there is a reset in ambition uh kind of from from the earlier kind of thought 1:05:26 1 hour, 5 minutes, 26 seconds that was there at the time of acquisition? 1:05:29 1 hour, 5 minutes, 29 seconds So uh uh we'll be honest with you uh yes partially there is a reset uh we are not 1:05:37 1 hour, 5 minutes, 37 seconds moving away from the target yes we moving away from the timeline uh that is to do with the uh we we know 1:05:45 1 hour, 5 minutes, 45 seconds that we are not delivering uh in terms of what we have uh what we had committed and so it definitely makes sense to step 1:05:54 1 hour, 5 minutes, 54 seconds back to look back and to see where we are going wrong and to course correct and uh and then to and then then that's 1:06:02 1 hour, 6 minutes, 2 seconds where we are and that's why we're giving you the new guidance in terms of where what is the capacity uh revised capacity enhancement that we are looking at and 1:06:10 1 hour, 6 minutes, 10 seconds the time frame that we sure thanks and is there a target IR in mind when you are doing your KEX program now 1:06:18 1 hour, 6 minutes, 18 seconds it's it's uh kex I mean the project IR has to be 18% you have to this is all equity money so you have to look at uh equity return like anybody Sure. 1:06:30 1 hour, 6 minutes, 30 seconds Thanks a lot. 1:06:32 1 hour, 6 minutes, 32 seconds Thank you. Next question is from the line of Rajes Ravi from HDFC Securities. Please go ahead. 1:06:40 1 hour, 6 minutes, 40 seconds Hi, [clears throat] my audible. Yes, Rajes, please go ahead. 1:06:44 1 hour, 6 minutes, 44 seconds Yeah, thanks for the opportunity and uh I'm happy to know that the management focus is more graded on capex and also 1:06:52 1 hour, 6 minutes, 52 seconds focus on cost execution. My only question while you're being candid on the uh you know the guidance uh this 1:07:01 1 hour, 7 minutes, 1 second when you say 250 rupees cost reduction you're looking for FI27 over FYI 26 and at the same time from 1:07:09 1 hour, 7 minutes, 9 seconds exit Q4 [clears throat] we are seeing around 250 to 300 rupees cost inflation uh because of the 1:07:16 1 hour, 7 minutes, 16 seconds packaging and fuel rise. So is this 250 net off or you know net net you will see 300 of rupees increase and 250 decline. 1:07:25 1 hour, 7 minutes, 25 seconds So from current level you would still see our cost going up by 50 to 100 rupees in Q1 or in FY 27. 1:07:35 1 hour, 7 minutes, 35 seconds So Raj uh uh thank you. Uh what you would uh put it is uh 3500 is the peak 1:07:43 1 hour, 7 minutes, 43 seconds and uh this 250 uh reduction is from here. So second then it would mean to 1:07:49 1 hour, 7 minutes, 49 seconds 4250 as a target uh 427 right this is factoring in the cost inflation that we have already used. 1:07:57 1 hour, 7 minutes, 57 seconds Yes that is true. 1:08:00 1 hour, 8 minutes Okay and in Q1 also you're looking at similar cost structure in Q1 versus Q4 versus Q1 what sort of 1:08:08 1 hour, 8 minutes, 8 seconds cost you're looking at basically the current costation and your cost. 1:08:14 1 hour, 8 minutes, 14 seconds So right now uh uh for example the headwind still continues and therefore uh it it it could be flattish for Q1 and 1:08:23 1 hour, 8 minutes, 23 seconds uh as [clears throat] things uh uh comes out uh better that it will start tapering. 1:08:30 1 hour, 8 minutes, 30 seconds Sorry for that. Flattish means your current cost which is some of the cost inflation is factored in Q1 you know the 1:08:37 1 hour, 8 minutes, 37 seconds energy and the packaging almost like 4500 I would peg it for say Q1 and then from there uh we will uh have the 1:08:47 1 hour, 8 minutes, 47 seconds reduction journey continue and uh for the year therefore we are targeting to have a reduction of 250 rupees. 1:08:53 1 hour, 8 minutes, 53 seconds Right. Right. And on the non-por working capital if I look at your core working capital has come down year on year from 30 days to 20 days but if I look at your 1:09:02 1 hour, 9 minutes, 2 seconds non-core working capital X like cash that seems to have gone up significantly. So is there any strategic reason from all 14 days it has now gone 1:09:11 1 hour, 9 minutes, 11 seconds up to 49 days you know uh that is where your total non-cast working capital seems to have shot up significantly 1:09:18 1 hour, 9 minutes, 18 seconds uh you know from 3000 that is therefore like for example some of the uh some of the point which I 1:09:25 1 hour, 9 minutes, 25 seconds mentioned that on certain incentives and all now we will be looking to book it on a actual basis when received than the 1:09:32 1 hour, 9 minutes, 32 seconds actual basis for example so that this non-core working capital or of uh operating working capital can be 1:09:39 1 hour, 9 minutes, 39 seconds controlled. Uh second is uh I think some of these are uh which you are referring to could be purely uh accounting u uh 1:09:48 1 hour, 9 minutes, 48 seconds working capital. So uh maybe uh separately we can connect but uh generally uh the core working capital as 1:09:55 1 hour, 9 minutes, 55 seconds you also mentioned has come down uh and that efficiency of working capital will continue. uh which specific uh nonp you 1:10:03 1 hour, 10 minutes, 3 seconds are referring to for example uh you can uh connect to me offline and sir and two unit which you just 1:10:14 1 hour, 10 minutes, 14 seconds two plants which you're looking forward to one was Mindra not clinker but quite clinker and what is the other beyond 1:10:20 1 hour, 10 minutes, 20 seconds what is getting commissioned right now so two the the one which I mentioned was 1:10:26 1 hour, 10 minutes, 26 seconds one was u uh so in our 73 for example the the 4 million and just to correct 1:10:33 1 hour, 10 minutes, 33 seconds what Rashi asked me the first question my current capacity say 69 and this 4 million turn will have one at Pa Jpur 2 1:10:40 1 hour, 10 minutes, 40 seconds million and 2 million at Marata uh that that would be like 73 now on top of it 1:10:46 1 hour, 10 minutes, 46 seconds uh the upcoming uh Mundra will be another uh 2 million of 1:10:54 1 hour, 10 minutes, 54 seconds uh so that will be over and above this 4 million which I mentioned and then the Assam one which will be another uh 2 1:11:01 1 hour, 11 minutes, 1 second million. So that will be pair of additional new assets and that would actually take you three years from now. 1:11:08 1 hour, 11 minutes, 8 seconds Uh that let us say 24 to 28 years. 28 months is what we are targeting. 1:11:14 1 hour, 11 minutes, 14 seconds Yes, that's all from my side. Thank you and all the Thank you. 1:11:19 1 hour, 11 minutes, 19 seconds Thank you. Next question is from the line of Shraan Sha from Dollar Capital. Please go ahead. 1:11:26 1 hour, 11 minutes, 26 seconds Yeah. Uh thank you. Uh sir just to uh clarify this uh 250 rupees uh uh cost 1:11:32 1 hour, 11 minutes, 32 seconds reduction this is on a full year average FI27 that we are saying. 1:11:38 1 hour, 11 minutes, 38 seconds Yeah. So so so thanks S. This is u for the full year FI27 uh as a average and therefore for 1:11:47 1 hour, 11 minutes, 47 seconds example when I said that June quarter will be flat from the March quarter then the degree of acceleration will have to 1:11:55 1 hour, 11 minutes, 55 seconds be more for the rest three quarters. So you're right the 250 will be average for the year. Got it. And second uh when you 1:12:04 1 hour, 12 minutes, 4 seconds mention about the prices was it 10 rupees and the 15 20 rupees hike that you mentioned this was for the 1:12:12 1 hour, 12 minutes, 12 seconds April view you are wanted to say or this is for March so currently on an average from the exit of March have the prices 1:12:21 1 hour, 12 minutes, 21 seconds for us have have increased by 10 odd rupees that's what we are trying to say uh yes basically I was thinking on that 1:12:30 1 hour, 12 minutes, 30 seconds only So April over March as a trend for the high cost. 1:12:37 1 hour, 12 minutes, 37 seconds Okay. And lastly for full year FRA 26 RNC bid in Q4 you mentioned 102 K but 1:12:44 1 hour, 12 minutes, 44 seconds for full year FRA 26 what would be the number? 1:12:49 1 hour, 12 minutes, 49 seconds Uh just a I just uh uh dig on this number. So full year RMX IITA you're asking right? 1:12:56 1 hour, 12 minutes, 56 seconds Yes sir. 1:12:58 1 hour, 12 minutes, 58 seconds Okay. uh around 300 CR. So full year RX is number of 300 C basically for the FI26. 1:13:09 1 hour, 13 minutes, 9 seconds Yeah. What it s Thank you and hope we will be achieving our cost reduction targets and maybe uh uh revisiting and 1:13:18 1 hour, 13 minutes, 18 seconds then upgrading the uh uh the original target. Thank you. Yes sir. 1:13:24 1 hour, 13 minutes, 24 seconds Thank you. Next question is from the line of Rago Maheshwari from Equirus Securities. Please go ahead. 1:13:32 1 hour, 13 minutes, 32 seconds Yeah. Hi sir, good afternoon. So just one question from the capeex side. Our capex is continuously getting delayed as 1:13:40 1 hour, 13 minutes, 40 seconds a adani standard. We are known for a pro capex and a very fast execution. But at the cement side we are continuously 1:13:47 1 hour, 13 minutes, 47 seconds getting delayed especially like marata plant we have we have already delayed. 1:13:51 1 hour, 13 minutes, 51 seconds Plus our earlier plant also got got delayed for um this one chapter one. 1:13:58 1 hour, 13 minutes, 58 seconds What is the issue behind the contin and the continuously we are getting some breakdowns at our bigger plant. Uh is it the maintenance related issue or what we 1:14:06 1 hour, 14 minutes, 6 seconds are facing currently right now? So you're right uh your observation is right that keex capeex has not been uh 1:14:14 1 hour, 14 minutes, 14 seconds up to the mark and that's one of the reasons why uh we are we are pausing and correcting ourselves and we want to 1:14:21 1 hour, 14 minutes, 21 seconds first complete our uh projects that we have taken in our hand before we start any new new projects. One of the main 1:14:30 1 hour, 14 minutes, 30 seconds reasons why uh we have not been able to deliver as per what what what our standards are is uh two two three things 1:14:39 1 hour, 14 minutes, 39 seconds I think uh one is uh we did not choose the right contractor uh when execute for 1:14:46 1 hour, 14 minutes, 46 seconds for execution. Number two is uh you know we started these projects when we acquired Abuja and ACC and at that time 1:14:54 1 hour, 14 minutes, 54 seconds there was no team. So it took us time to build up that team as well. Um and uh we are confident that at least now we will 1:15:02 1 hour, 15 minutes, 2 seconds be able to uh able to complete this projects in the timeline that were given. And number three is a lot of these projects were started without uh 1:15:11 1 hour, 15 minutes, 11 seconds full engineering being done in place. Uh so so we are using this 6 months uh to complete all our engineering for the new 1:15:19 1 hour, 15 minutes, 19 seconds projects that we are thinking of starting and once that is in place then we will be we will be looking at starting the project. So, so that's 1:15:27 1 hour, 15 minutes, 27 seconds that's where uh yeah, but you're right that that's a correct observation that uh we've not been uh able to deliver 1:15:34 1 hour, 15 minutes, 34 seconds projects uh in the stipulated time. Uh number two I think the uh breakdown I would say it is predominantly in the 1:15:42 1 hour, 15 minutes, 42 seconds acquisition assets where where we have seen u uh major breakdowns happening especially penna and pangi uh and that's 1:15:49 1 hour, 15 minutes, 49 seconds where the problem problem area has been for us and that's where the team is focused on in terms of improving the uh 1:15:56 1 hour, 15 minutes, 56 seconds improving the reliability of the plants and uh and that's one of the reasons why uh you are seeing a higher R&M costs uh 1:16:05 1 hour, 16 minutes, 5 seconds in this here uh partially because a lot of the uh repairs and maintenance which was uh which was supposed to be done was 1:16:14 1 hour, 16 minutes, 14 seconds not done and uh which which is why we are uh why one of the reasons for this uh breakdown as well. 1:16:22 1 hour, 16 minutes, 22 seconds Thank you. Thank you. 1:16:24 1 hour, 16 minutes, 24 seconds I request you to join back please as we have other participants waiting for their turn. Thank you. 1:16:33 1 hour, 16 minutes, 33 seconds Next question is from the line of Harsh Mittal from MK Global. Please go ahead. 1:16:38 1 hour, 16 minutes, 38 seconds Yeah, good evening to the manager. Thank you for the opportunity. So my first question is I think your pursuit to focus on seniorization. 1:16:46 1 hour, 16 minutes, 46 seconds Uh what is the current average gap between Ambuja brands uh versus the nearest competitor currently and what is 1:16:55 1 hour, 16 minutes, 55 seconds the target to narrow it further? My first question. 1:17:00 1 hour, 17 minutes So uh you are referring to premium cement and uh I can highlight that the gap between my base product and the 1:17:09 1 hour, 17 minutes, 9 seconds premium cement product is closer to let us say 50 55 rupees for the super premium and 2025 rupees for the premium 1:17:17 1 hour, 17 minutes, 17 seconds one. I think that was like first then second your question is about the gap between our price and compared to that 1:17:24 1 hour, 17 minutes, 24 seconds competition. I think see everyone um uh uh looks to his price better than others and therefore every every time when the 1:17:32 1 hour, 17 minutes, 32 seconds industry people try and compare there is always different opinions. uh I would say that uh the u the uh uh the plan 1:17:40 1 hour, 17 minutes, 40 seconds India players like us and uh uh basically the other players number one ultra trade I think the prices are more or less in the similar range in few 1:17:48 1 hour, 17 minutes, 48 seconds districts 5 10 rupees here and there either they are higher or we are lower or whatever reward but uh that's how the 1:17:56 1 hour, 17 minutes, 56 seconds trend has been and that is also reflected in the overall say NSP of the quarter which is close to each other for 1:18:02 1 hour, 18 minutes, 2 seconds the number one and number two sure thank H I request you to join back please as we have participants waiting for their term. 1:18:11 1 hour, 18 minutes, 11 seconds Thank you. Next question is from the line of Satya Jen from Ambbit Capital. Please go ahead. 1:18:18 1 hour, 18 minutes, 18 seconds Hi thank you. U this question is for current. I just want to understand um the comment u you made about um 1:18:26 1 hour, 18 minutes, 26 seconds recalibrating capacities that earlier um the capacities were not in the right location. Now the capacities are in the 1:18:33 1 hour, 18 minutes, 33 seconds right location. So where were you initially looking at these capacities? I believe Sani was also there in terms of expansion initially. So maybe could you 1:18:42 1 hour, 18 minutes, 42 seconds just discuss um where is this recalibration coming from in terms of capacities? 1:18:48 1 hour, 18 minutes, 48 seconds No. So uh the re-calibration is coming uh basically you know especially where we have the integrated units uh those 1:18:57 1 hour, 18 minutes, 57 seconds are the locations where we are re reccalibrating because uh uh we find that the grinding units uh uh the the 1:19:06 1 hour, 19 minutes, 6 seconds operating cost the logistics cost one of the reasons for the logistics cost being so high compared to competition is 1:19:12 1 hour, 19 minutes, 12 seconds because uh uh the the the in distance traveled by the integrated units is quite higher than than what uh what it 1:19:21 1 hour, 19 minutes, 21 seconds should be. Uh so so one of the things that we are working towards is uh uh you know shutting down the grinding units in 1:19:28 1 hour, 19 minutes, 28 seconds uh in lot of these places and moving them closer to the market. So that is the recalibration we are looking at. Uh I don't think we are looking at 1:19:35 1 hour, 19 minutes, 35 seconds recalibration of uh let's say units. Uh the second is uh uh via uh we sangi is predominantly a uh prinker plus cement. 1:19:48 1 hour, 19 minutes, 48 seconds We are moving towards in the next years you will see sani moving uh predominantly into prinker and you will see new capacities coming up on the 1:19:56 1 hour, 19 minutes, 56 seconds coastal coastal region of Puja. uh and the H line 2 is one of the classic classic examples of of that where we 1:20:05 1 hour, 20 minutes, 5 seconds would look at Sandi supplying clinker and uh moving and cement being supplied from these tubes. Uh so some of these 1:20:12 1 hour, 20 minutes, 12 seconds recalibration is happening majority of the recalibration is happening in the north uh UP and Bihar's region and uh 1:20:20 1 hour, 20 minutes, 20 seconds and southern Gujarat southern Gujad and Maharashtra. 1:20:24 1 hour, 20 minutes, 24 seconds So this is not um something ACC specific because I believe ACC had more integrated with it but you're mentioning 1:20:31 1 hour, 20 minutes, 31 seconds it's both ACC and Abuja it's ACC and Abuja both both both of them had issues. 1:20:37 1 hour, 20 minutes, 37 seconds So I'll give you example like uh today we move we supply our Bihar market through Chhattisgarh 1:20:44 1 hour, 20 minutes, 44 seconds uh and in that and though we get the ITA but uh it is not the optimal movement of the of the cement uh that we are seeing. 1:20:53 1 hour, 20 minutes, 53 seconds So so that's why we are looking at we need to set up uh grinding units in Bihar to serve uh to serve the Bihar market and and Chhattisgarh unit should be just a clinker unit. 1:21:04 1 hour, 21 minutes, 4 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand the conference over to Mr. Deepak Balwani for closing comments. 1:21:14 1 hour, 21 minutes, 14 seconds Over to you sir. 1:21:16 1 hour, 21 minutes, 16 seconds Yeah. Thank you sai for joining the call and sharing your insight. Thank you all. 1:21:20 1 hour, 21 minutes, 20 seconds I trust most questions have been answered. You have my contact number. Please feel free to call me. Thank you. 1:21:25 1 hour, 21 minutes, 25 seconds Thank you on behalf of JM Financial Institutional Securities Limited. That concludes this conference. Thank you for joining us and you may not disconnect your lines.