Ambuja Cements Limited — Q2 FY26

Ambuja Cements Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=HVBXa_Q7wRA Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Ambuja Cement Limited Q2 and FI26 earning conference call hosted 0:09 9 seconds by BNP Paribal Securities. As a reminder, all participant line will be in the listenon only mode and there will be an opportunity for you to ask 0:17 17 seconds question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:26 26 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:33 33 seconds to Mr. Nash Jen. Thank you and over to you sir. 0:38 38 seconds Uh yeah hi thank you. Uh good evening everyone. On behalf of BNP Paripal Securities India we welcome you all to the Q2 FI26 earnings call of Ambita 0:47 47 seconds Fence Limited. Without any further delay I'll hand over the call to Mr. Deepak Palwani, head of investor relations. 0:54 54 seconds Over to you sir. 0:56 56 seconds Yeah, thank you. On behalf of Ambuja Seement, I'm pleased to welcome all the participants to our quarter 2 FI26 1:03 1 minute, 3 seconds earnings call. Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These 1:12 1 minute, 12 seconds are not guarantees of future performance and may involve unforeseen risk and uncertaintity. We remain committed to further strengthening our disloia 1:20 1 minute, 20 seconds standards and improving the quality of our capital market communications to the best in the industry. 1:26 1 minute, 26 seconds What a quarterly performance. Existing capacities increased to 107 MTP in quarter 2 with AIDA reaching 1060 PMT. 1:35 1 minute, 35 seconds The total target capacity is now set at 155 MTPA among other several notable updates. We are pleased to have with us 1:43 1 minute, 43 seconds on the call Mr. Vinodi, Chief Executive Officer and Mr. Rakkesh Tari, Chief Financial Officer. Now I invite Mr. Bi 1:50 1 minute, 50 seconds to provide his valuable insight on the quarterly performance. 1:54 1 minute, 54 seconds Thank you Deepak. Good afternoon. On my behalf and the behalf of my management team, welcome to all joining us for this second quarter of Fi 26 earnings call. 2:06 2 minutes, 6 seconds uh wishing you a very vibrant festive season which has also got extended with 2:12 2 minutes, 12 seconds our uh woman in blue winning the maiden ICC cricket world cup 25 2:20 2 minutes, 20 seconds likewise friends I'm equally jubilant to share the all round robust performance of Amuja cements maintaining a strong 2:28 2 minutes, 28 seconds momentum this was driven by concerted branding marketing ing and other initiatives 2:37 2 minutes, 37 seconds thereby increasing our customers preferences for premium products and a larger vibrancy amongst our dealers and supply chain partners. 2:48 2 minutes, 48 seconds This resulted in differentiated volume growth and improved realizations thereby 2:54 2 minutes, 54 seconds helping us achieve aida of rups,60 per metric ton a jump of 32% y on y 3:04 3 minutes, 4 seconds while Iida margin stood at 19.2% uptick of 5% compared to last year's of 14.2%. 3:15 3 minutes, 15 seconds This quarter has been noteworthy for the cement industry despite the headwinds from the prolonged monsoons. 3:22 3 minutes, 22 seconds The sector will benefit from the tailwinds of several favorable policy measures including GST 2.0 reforms. 3:32 3 minutes, 32 seconds Likewise, this quarter has been instrumental for Adani. 3:36 3 minutes, 36 seconds Our group's energies and efficiency measures have started yielding results. 3:42 3 minutes, 42 seconds total cost reduced by 5% Y on Y led by kon fuel cost at 1.65 rupees per,000 3:51 3 minutes, 51 seconds kilo calories and this is excluding the AFR. If I include the AFR it becomes 1.60 rupees per,000 kilo calorie at 1.65 3:59 3 minutes, 59 seconds 65 excluding the AFR it is lowest among the peers and it is likely to sustain oblit further reduce with increasing 4:08 4 minutes, 8 seconds trend of AFR exit of F526 we are targeting to deliver total cost 4:16 4 minutes, 16 seconds of Rs 4,000 per metric ton which is 5% reduction from the current levels of rupes 4,200 the exit of September has 4:25 4 minutes, 25 seconds been 4,200 cost per turn which I'm targeting to deliver at 4,000 by March 4:31 4 minutes, 31 seconds 26. Likewise, in FI27, we aim for 5% reduction and another 5% in FI28. So, by 4:39 4 minutes, 39 seconds end of March 27, we are aiming to hit 3,800 rupees a turn and by end of March 28, it would be around another 5% which 4:49 4 minutes, 49 seconds will be 3650 rupees per turn. Another important initiative we have launched during this quarter is the debuting of 4:57 4 minutes, 57 seconds our plants and the logistic infrastructure. 5:00 5 minutes These debuting initiatives across the plants will add 15 million tons in our capacity at a much lower capex of $48 5:09 5 minutes, 9 seconds per ton and this capex is on a integrated investment basis. There were some questions. So I want to clarify 5:16 5 minutes, 16 seconds this $48 per ton is on a integrated basis which would mean a combination of GU and IU investments. This is the 5:23 5 minutes, 23 seconds combined capex for cleanserizing plus grinding. As I mentioned with this additional 15 tons million tons. Uh we 5:31 5 minutes, 31 seconds now revise our uh target capacity from 140 to 155 by FY28. 5:40 5 minutes, 40 seconds Simultaneously my team capacity also goes up from the current target of 84 to almost 96 million tons by FY28. 5:50 5 minutes, 50 seconds In addition friends, we have also initiated logistics debottle making and this will improve current capacity 5:58 5 minutes, 58 seconds utilization by 3%. So which would mean that my current 107 million t will have a better evaporation of 3 million tons 6:06 6 minutes, 6 seconds and this we will achieve in over 24 months. 6:10 6 minutes, 10 seconds We are also installing 13 blenders at our plants over period of 12 months which will optimize the product mix and 6:19 6 minutes, 19 seconds increase the share of premium cement and thereby improving our overall realization. 6:25 6 minutes, 25 seconds Very importantly, we have launched CNO CIOC cement intelligent network operations center. This will enable a paradigm shift across the business operations. 6:38 6 minutes, 38 seconds AI will run deep into our enterprise fabric bringing efficiency, productivity and deeper engagement with the stakeholders across the value chain. As 6:47 6 minutes, 47 seconds a business, we are getting younger by the day with our average plant age falling by almost 50% by FI28. 6:58 6 minutes, 58 seconds Our average age of employees has also substantially improved from where we started and now we stand at almost 38 years. 7:10 7 minutes, 10 seconds Integration of Penna and Orient cement has been one of the fastest I would say uh wherein the entire sales 7:19 7 minutes, 19 seconds except the initial few days for Orient otherwise the entire sales has been under the Ambujan HC brands. This has been well received by the customer supply chain partners. 7:30 7 minutes, 30 seconds This has also resulted into sharp improvement in the profitability of these companies. 7:36 7 minutes, 36 seconds Adani workplace management system has been institutionalized and helping to reinforce plant working conditions and 7:43 7 minutes, 43 seconds overall help on reliability, environment, safety, quality which we call it as a rescue program. 7:52 7 minutes, 52 seconds We are also engaging and investing in R&D and technologies which will provide an edge in our PhD scores improvements. 8:02 8 minutes, 2 seconds Such programs have also helped us in the past to provide cement for several maki national projects. The most recently na 8:10 8 minutes, 10 seconds mumbai international airport few months back chennai chennab single arc railway bridge the upcoming world 8:18 8 minutes, 18 seconds tallest temple amongst so many other projects. In terms of the console financial performance friends I'm happy 8:26 8 minutes, 26 seconds to share we have achieved highest ever sales volume at 16.6 6 million turn up 8:32 8 minutes, 32 seconds 20% Y on Y which is almost five times higher in terms of the industry average 8:40 8 minutes, 40 seconds which has grew at the industry level 4% we have grew 20% Y on Y market share is also up 1% to now 16.6%. 8:52 8 minutes, 52 seconds Revenue stands at rups 9,174 crores up 21% y on y and there has been a price gain of 3%. 9:02 9 minutes, 2 seconds This is also supported by share of premium products as a percentage of total trade sales at 35%. 9:10 9 minutes, 10 seconds However, if I look at the expanded volume of the premium products on the larger capacity, there is an overall 9:17 9 minutes, 17 seconds growth of 28% Y on Y of sale of premium cement. Cost has improved by rupees 238 9:25 9 minutes, 25 seconds per metric tan Y on Y. This has also supported in achieving the quarterly of rupees 1,761 9:33 9 minutes, 33 seconds crores which is up 58% Y on Y. profit after tax is at rupees 232 crores up 9:41 9 minutes, 41 seconds 364% and of course you will have some of your questions on one time 1836 crores profit uh provision for the tax write back and all which I have already 9:49 9 minutes, 49 seconds highlighted in more detail in the investor debt but even if I exclude that there's a quantum substantial improvement on the profit after tax 9:58 9 minutes, 58 seconds earning per share is at 7.2 2 rupees per share for the quarter which is up 267%. 10:05 10 minutes, 5 seconds Net worth at 69,493 crores up 3,57 crores for the quarter 10:13 10 minutes, 13 seconds and company remains debt free with highest rating of crystal table stable and the short-term A1 plus ratings we have maintained that in the interest of 10:22 10 minutes, 22 seconds time friends I will not discuss the standalone financial performance of the listed companies as these details are already available on the stock exchanges 10:30 10 minutes, 30 seconds in terms of the operational excellence uh Green power shares has increased to 33% in second quarter with renewable 10:40 10 minutes, 40 seconds energy capacity at 673 megawatt expected to reach almost 900 megawatt by the end of this financial year and u 1122 megawatt by FI27. 10:53 10 minutes, 53 seconds We also strengthen the ecosystem engagement through collaborative efforts with kai initiatives like nmano. We 11:02 11 minutes, 2 seconds launched the adanisim and futures and which uh covers almost 400 academia uh both schools and institutions over 11:10 11 minutes, 10 seconds covering four lakh students. We deepened our B2B engagement with initiatives like Samad. 11:17 11 minutes, 17 seconds Then we launched Danveria the co club platforms and some of this you some of you would have already experienced it 11:25 11 minutes, 25 seconds strategic partnership with conc for the movement of the tank container it will support in terms of net zero emission 11:32 11 minutes, 32 seconds commitments and also there will be opportunity of setting up the bulk cement terminals. 11:39 11 minutes, 39 seconds In terms of my growth and expansion journey friends, my current capacity stands at 107 million metric tonses and 11:46 11 minutes, 46 seconds uh this is cement for so far as Kinker is concerned it is almost at 65 million metric tons. Uh the ratio is generally 11:54 11 minutes, 54 seconds around 0.6 to 0.62 of the cement. uh our FI28 target u uh 12:01 12 minutes, 1 second as I mentioned has been revised to cement at 155 million tons and kinker almost at 96 million tons. 12:11 12 minutes, 11 seconds The this incremental 15 tons as I million tons as I mentioned comes from de bottlenecking at a much lower capex on the integrated basis. Greenfield and 12:20 12 minutes, 20 seconds brownfield expansions progressing quite well uh at Salai Banana Marwa Munwa 12:27 12 minutes, 27 seconds sorry Pana Marwar Dah Kalamuli Batinda Jodpur Bisali Gun all of them will be up and running by end of this financial 12:36 12 minutes, 36 seconds year. uh three of them will be coming in Q3 which is U Salai Banwa this is CI and 12:41 12 minutes, 41 seconds U uh one more which is u uh DH uh and uh rest will be coming by end of this 12:50 12 minutes, 50 seconds financial year. uh trial runs have started for the Bhapara Tinder line and uh which is 4 million tons uh while I 12:59 12 minutes, 59 seconds already announced the operation oper operational of Krishna Patnham 2 million tons of grinding unit which takes up my capacity to 4 million tons at Krishna 13:08 13 minutes, 8 seconds Patnam we are adding uh so almost 11.2 2 million turns in FI26 and we will be 13:15 13 minutes, 15 seconds hitting almost 118 million turns by end of this year. Uh by FI 27 uh and FI28 we 13:22 13 minutes, 22 seconds should be then in a good shape to achieve 155 million tons. uh for this disciplined the capex management uh ensures timely execution scale 13:31 13 minutes, 31 seconds profitability and the optimize of the operating leverage on the cost shift trend which is our key focus area and from beginning we have been highlighting 13:40 13 minutes, 40 seconds this our cost has reduced by almost 5% Y on Y uh primarily led by the kill fuel cost uh and I mentioned the numbers uh 13:49 13 minutes, 49 seconds in terms of my second half by uh end of this financial year we should And we are actually aiming at almost 4,000 rupees a 13:58 13 minutes, 58 seconds turn followed by 38 and then 3650 by F28. Uh green power share is up by 14.3% 14:08 14 minutes, 8 seconds to almost 33% in Q2 and it is progressing very well. So by FY28 we should be hitting 60% in line with our earlier announcements. 14:17 14 minutes, 17 seconds And this will help me to achieve almost 1.5 rupees uh per unit cost reduction from my current levels of 6 rupees to 14:26 14 minutes, 26 seconds almost it should be hitting 4.5 rupees by FY28. 14:30 14 minutes, 30 seconds Uh the efficiency factor in terms of the kil the heat consumption and the power consumption are going to improve with 14:38 14 minutes, 38 seconds the additions of the new capacities which are with the latest technologies. 14:43 14 minutes, 43 seconds uh the kill and fuel cost including the AR reduced by 2% which I mentioned to 1.60 6 and so and so forth. Uh so far as 14:51 14 minutes, 51 seconds logistics is concerned uh logistics the primary lead distance is uh down by say 2 kilometers uh and now stands at 265 15:00 15 minutes and we're expecting another 50 kilometer reduction uh as we expand our uh geography in terms of the GUS uh for 15:09 15 minutes, 9 seconds this quarter logistics cost has come down by almost 7% Y on Y at 1224 Chino which is a key subject which we 15:17 15 minutes, 17 seconds are working uh in terms of digital trans transformation information uh and that is something which uh I will invite some of uh some of you to actually experience 15:26 15 minutes, 26 seconds it because that is in instrumental in terms of bringing a paradigm shift in my uh day-to-day business working 15:33 15 minutes, 33 seconds efficiency transparency and real-time uh collaboration across the value chain with the stakeholders from the ESG 15:40 15 minutes, 40 seconds leadership perspective friends um uh we have uh noteworthy improvements uh right from SBTI validating us for the 15:48 15 minutes, 48 seconds near-term to long-term And uh lots of developments are happening uh in this regards. I mentioned earlier we have signed an MOU 15:56 15 minutes, 56 seconds with the cool books of Finland and things are progressing quite well. We are water positive 12 times on analyze basis. Uh plastic negative and in terms of tree plantations and so and so forth. 16:08 16 minutes, 8 seconds Lots of works are going from a ESG perspective. CCTS u augers very well given that the new capacities are very 16:15 16 minutes, 15 seconds efficient ones and therefore u it will it will help me uh it will help the business in terms of generating uh 16:23 16 minutes, 23 seconds positive carbon credit and it will be also incremental in terms of uh generating uh income as and when the 16:31 16 minutes, 31 seconds overall model matures. uh as per my rough estimates uh uh it should provide at least 200 to 225 crores additional 16:39 16 minutes, 39 seconds income by virtue of positive carbon credits uh as in when this framework gets more mature. Uh this I have 16:47 16 minutes, 47 seconds calculated at dollar 8 to10 per turn of the carbon credit. Uh so far as u so far 16:55 16 minutes, 55 seconds as people at the core we are actually building future capability by blending the trace talent with digital skills and a culture of ownership and continuous 17:03 17 minutes, 3 seconds learning uh and empowering our people to deliver results. Uh lots of initiatives and actions are being done for community and social impact. Uh we are also 17:11 17 minutes, 11 seconds putting lots of efforts on brand and stakeholder engagement. uh the brand track uh research with IPSO IPS is the 17:18 17 minutes, 18 seconds agency and it has revealed recently the report which has come it has revealed quite positive trends in top of the mind awareness and strong Adani brand 17:26 17 minutes, 26 seconds association by the way some of you would know that now Adani brand has got shipped into our overallment business and it is giving us quite positive 17:35 17 minutes, 35 seconds results and uh so the synergies are really bringing that positive trend in the business uh we have through digital 17:44 17 minutes, 44 seconds and mass media we have touched this almost 300 million individuals pan India and the series of even initiatives like 17:51 17 minutes, 51 seconds heroes of adani and so and so forth for example which are available on digital platforms and I'm sure some of you have seen it it brings quite a stories of 18:00 18 minutes vibrant stories of our dealers and brings a very close emotional brands with uh uh connect with them uh 18:08 18 minutes, 8 seconds technical services which is like a very important uh focus area which was initiated long back uh within say Abuja 18:16 18 minutes, 16 seconds and HC that is like u seeing a very robust trend and we have now uh this year 35,000 contractors in uh enrolled 18:26 18 minutes, 26 seconds almost 14,000 sites what we say Adani certified technology sites which actually uses purely our premium cement and these numbers are growing and we do 18:35 18 minutes, 35 seconds lots of workshops and lots of technical events uh on the industry outlook uh and my closing thought friends u cement 18:42 18 minutes, 42 seconds demand uh uh I remain bullish uh in Q2 although it was moderate and grew by at the industry level say 4%. But my 18:51 18 minutes, 51 seconds overall yearly target remains between 7 to 8%. 18:55 18 minutes, 55 seconds uh GST reduction of from 28 to 18 where all the benefits have got passing to the customers and I'm sure uh this will 19:02 19 minutes, 2 seconds bring more u demand for especially a good brands uh like uh adani cement and 19:10 19 minutes, 10 seconds more so the demand for the premium cement uh [clears throat] there is a improved economic sentiment higher 19:17 19 minutes, 17 seconds investment in both public and private sector and uh in in summation it a very well for the industry I I would now uh 19:26 19 minutes, 26 seconds hand it over back to the moderator uh for the questions and answers. Over to you uh BNP team. Thank you. 19:35 19 minutes, 35 seconds Thank you sir. Thank you very much ladies and gentlemen. We'll now begin with the question and answer session. 19:40 19 minutes, 40 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 19:48 19 minutes, 48 seconds may press star and two. Participants are requested use headset while asking a question. 19:54 19 minutes, 54 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 20:00 20 minutes Our first question come from the line of Amit Muraka from Access Capital. Please go ahead with your question sir. 20:08 20 minutes, 8 seconds Uh yeah. Hi uh good evening and thanks for the opportunity. So the first question uh is on cost. So while uh uh while uh it's a great reduction on the 20:17 20 minutes, 17 seconds cost but just wanted to understand a bit more on other expenses because um like un unusually like other expenses per ton 20:26 20 minutes, 26 seconds as well are dropping uh in Q2 versus Q1 given that Q2 is a maintenance quarter. 20:32 20 minutes, 32 seconds Just wanted to understand like u like is it like lower kill maintenance has happened in Q2 or is there some other 20:40 20 minutes, 40 seconds factor like lower advertisement spend and all which has driven down other expenses? 20:46 20 minutes, 46 seconds No. So uh Amit thank you. So you're referring to uh so far as other expenses of 774 rupees a turn um uh versus 712 20:55 20 minutes, 55 seconds rupees a turn right and uh this primarily amid uh no of course uh the u gallons has gone through maintenances 21:04 21 minutes, 4 seconds and the benefits of the uh this maintenance will actually come in the coming quarters. cost for example remains a focal area for us and 21:12 21 minutes, 12 seconds therefore this uh reduction of almost 62 rupees per turn comes from the uh improved uh synergies and efficiency 21:22 21 minutes, 22 seconds gain in terms of uh we have also uh improved our overall sales promotion and marketing strategies uh with a very 21:31 21 minutes, 31 seconds analyt analyticdriven u uh branding and sales promotion uh which with the more u 21:38 21 minutes, 38 seconds effective u media media uh then the costly media. So for example, you see more of us into lots of digital and 21:45 21 minutes, 45 seconds other footprints. So I would say that uh other expenses is a factor of all of these initiatives but nothing to worry 21:53 21 minutes, 53 seconds about any maintenances etc uh which have been under underplayed in this quarter. 22:00 22 minutes Okay. Okay. Sure. Thanks for that. And and the secondly on uh on working capital like u your cash flow statement 22:07 22 minutes, 7 seconds shows a increase of about 2,000 cr in working capital in the 1. Uh and even earlier like last year also we saw some 22:15 22 minutes, 15 seconds increases in working capital. So uh just wanted to understand like what is what is the reason for this increase? Is it 22:23 22 minutes, 23 seconds like some um some receivable some advances? What would really are the reasons for this? 22:30 22 minutes, 30 seconds So yeah Amit uh so far as Q2 is concerned uh there are two factors one is u yes receivables when you have a 22:38 22 minutes, 38 seconds higher degree of sales on the non-trade side and Q2 being uh generally uh subdued given the monsoon and all this 22:47 22 minutes, 47 seconds tends to increase your overall say receivables to the B2B customers second is uh the overall say inventory and somewhere you will find our responses 22:55 22 minutes, 55 seconds that uh uh there is a uh higher closing stock of both finished goods and also when you said about uh maintenance so a 23:04 23 minutes, 4 seconds higher stock of the shared and consumable which is there for example so I have the numbers but essentially this 23:12 23 minutes, 12 seconds your uh 2,000 crores is a combination of this three factors and then what we have done is uh as part of the mitigation we 23:22 23 minutes, 22 seconds have built up almost uh two to three months of coal inventory and if you see this has moved very well uh in our favor 23:29 23 minutes, 29 seconds uh so therefore even for Q3 I'm optimistic to sustain the coal cost and remain the lowest cost uh on the kill 23:36 23 minutes, 36 seconds and coal uh in the industry because of this uh inventory of gold also available to us which is at a lower price. So uh 23:44 23 minutes, 44 seconds coal finished goods inventory then inventory of uh clean then uh inventory of shores and squares and then of course 23:52 23 minutes, 52 seconds receivables which are also uh tends to go up when it comes to quarters like September and then um these are like the 23:59 23 minutes, 59 seconds factors but uh I I I have very uh strong uh improvements plans in the in the Q3 on this front. 24:08 24 minutes, 8 seconds Understood. Understood. Thanks for the elaborate response. And just a very last question on the debuting while the uh cement debuting plantwise I think is 24:17 24 minutes, 17 seconds given in the presentation you mentioned that there is clinker debottling also uh can you provide maybe uh further details 24:25 24 minutes, 25 seconds on that as well as to which units will see the debottling at clinker level. 24:30 24 minutes, 30 seconds Yeah. Yeah. So like uh we will be setting up another three killers amid almost 12 million. So earlier we had 24:37 24 minutes, 37 seconds given 80 uh million uh sorry 82 million uh uh sorry it was uh uh 84 million 24:45 24 minutes, 45 seconds turns for FI28 target if you remember and now that 84 is becoming u uh 96 uh generally my kons are 4 million turns. 24:54 24 minutes, 54 seconds So three more kilons will come up broadly I remember one is going to come up in Bhapara itself. So we have like two major blocks over there. One is the 25:04 25 minutes, 4 seconds existing Batapara and second is Chilati which is about say 25 or kilometer from Batapara. So Chhattisgarh is like one 25:11 25 minutes, 11 seconds area which we have sizable limestone reserves. We are going to look at that. 25:15 25 minutes, 15 seconds Then um uh one more for example we have plans is in terms of as as we improve 25:22 25 minutes, 22 seconds and progress is like Sani which will u uh which will we will announce in in due course. But these are like my low 25:29 25 minutes, 29 seconds potentially uh low cost. Sangi for example has all the potentials of to become the one of the lowest cost of cleaning. So it has all the good probability of me setting up cleaning 25:38 25 minutes, 38 seconds there. Uh Batapara you know has been our strength and few more for example which will come up. So north and west primarily for example remains where we 25:46 25 minutes, 46 seconds have a substantial strong advantage and we have uh we have also seen a significant improvement in terms of our brand loyalty and all these are like uh 25:55 25 minutes, 55 seconds uh the fields which we'll see uh these expansions coming up. 26:00 26 minutes Okay. Okay. Thanks. Thanks a lot and best wishes. Thank you. 26:05 26 minutes, 5 seconds Thank you sir. Ladies and gentlemen, in order to ensure that the management will be able to address question from all the 26:12 26 minutes, 12 seconds participant and the conference, kindly limit the question to two question per participant. Should you have a follow-up question, please rejoin the queue. Our 26:22 26 minutes, 22 seconds next question comes from the line of Naven Sahadev from IC Securities. Please go ahead, sir. Yeah, good evening sir. Am I audible? 26:30 26 minutes, 30 seconds Hello. Yeah. 26:33 26 minutes, 33 seconds Great. Uh so thank you for the opportunity and congratulations on good set of numbers. Uh two questions. One is 26:40 26 minutes, 40 seconds on debottlenecking. So if my memory serves me right under the previous management, we never really heard ACC Amuja doing any sort of uh you know 26:49 26 minutes, 49 seconds debottlicking while every other company would have thrived on this uh this opportunity. Now in the presentation you've given 13 locations whereas I 26:58 26 minutes, 58 seconds believe you have 45 46 locations in total. So just wanted to 27:09 27 minutes, 9 seconds N you're not audible. We lost you. 27:17 27 minutes, 17 seconds N you're there. 27:21 27 minutes, 21 seconds Nin sir, if you're there, please response. Hello. 27:29 27 minutes, 29 seconds Yes. Yes. Please go ahead with the question. 27:32 27 minutes, 32 seconds Sorry I I lost again and I'll just repeat the question. Uh so uh I'm saying that uh if my memory serves me right 27:41 27 minutes, 41 seconds historically uh or in the previous management I mean to say uh there was never a debottlenecking kind of a uh 27:48 27 minutes, 48 seconds thing which we heard uh from ACC and Abuja and now that uh we are uh are hearing and congratulations for that. Uh 27:56 27 minutes, 56 seconds but my question is it is at 13 locations. So is it fair to say that this is all that we have identified or 28:03 28 minutes, 3 seconds given that we have 45 46 locations there is more scope and in the same uh you said we are adding new kil uh new 28:12 28 minutes, 12 seconds clinker lines altogether so this is not per se uh like you know uh debottlenecking of clinker in that sense 28:20 28 minutes, 20 seconds we'll be adding new clinker whereas uh adding more mills to get uh uh cement capacity. if you could just help us understand this overall debuting bit a bit. 28:30 28 minutes, 30 seconds Yeah, thank you Namin. I think debottlicking means cement first of all we should know that how it happens. Uh so like some of our u plants which are u 28:40 28 minutes, 40 seconds having the uh roller press and with sorry with some of these plants which have this ball mills for example uh you 28:47 28 minutes, 47 seconds actually put up a roller press also uh which will complement with this ball mill and that actually helps you to have a higher grinding capacity. So that is 28:55 28 minutes, 55 seconds like a simplified way of explaining the Bottle making. Uh now this is yes we have identified 13 locations and uh 29:03 29 minutes, 3 seconds which would mean that this certain location would have the u uh ball mills and which would be complementing with 29:10 29 minutes, 10 seconds the roller press. uh to your point of uh this is like our phase one Namin and uh which uh comprehensively covers it but 29:18 29 minutes, 18 seconds uh whether we will have more of them yes we will I think down the line but right now these are like low ending fruits for us to immediately move on that so far as 29:27 29 minutes, 27 seconds uh clinker is concerned clinker for us for example we'll keep uh we will keep adding it uh to also meet our expanding 29:34 29 minutes, 34 seconds GU and also this additional capacities of the bottleneck assets uh onetoone mapping you would do because uh these 29:42 29 minutes, 42 seconds are like all phase manners. But suffice to say that we are now going to add up almost three more lines which would take 29:50 29 minutes, 50 seconds my uh clinkering to almost 96 million turns and uh as I mentioned uh that Batapara and Marata will be uh 30:00 30 minutes commissioning sooner and Pena Marwward also will be coming coming sooner. Uh so this month for example uh we should be having light up of Pa Marwward as well. 30:10 30 minutes, 10 seconds So uh every parting quarter we are seeing a good moment of pins capacity additions also. So but what comes first 30:18 30 minutes, 18 seconds for example that is like a complete detailed planning uh we will be well balanced on and gu at 155 million. Yeah. 30:25 30 minutes, 25 seconds Third uh in the same brief then I would say debottlicking of logistics. Now this 3% when we look at it uh because we have 30:33 30 minutes, 33 seconds the uh the grinding but sometimes the u evacuation becomes a bottleneck and therefore this uh exercise which has 30:42 30 minutes, 42 seconds been done quite extensively uh through consultants and all and this 3% which will be straight 3 million tons of unlocking of capacity through logistics 30:51 30 minutes, 51 seconds debuting will get uh complimentary to us uh I would say then when we say blenders and all it is nothing but in a way 30:59 30 minutes, 59 seconds debottling making of the product portfolio because otherwise the silo stoages and all are very that way uh uh spec like limited to any plant. You 31:07 31 minutes, 7 seconds cannot have unlimited uh stoages and therefore when you can have blenders and all it will it will help us to have uh 31:15 31 minutes, 15 seconds much more optimized product balancing and move into the premium cement. All of this actually helps you to unfold uh the 31:23 31 minutes, 23 seconds uh the the overall capacity but clinker debuting also will will come through and for which we are actually doing studies 31:31 31 minutes, 31 seconds around that and I will come separately on that aspect. So my current 65 million tons of kimar capacity uh would 31:38 31 minutes, 38 seconds definitely also have a scope for debottlenecking. Yeah. 31:42 31 minutes, 42 seconds Oh thank you for clarifying. Thank you for clarifying because I that's what the clarification I saw that existing clinker you're saying there is scope to debottlenecking that as well. 31:51 31 minutes, 51 seconds Yes. Yes. Yes. So now like at Sani at say 6.5 million turn now sangi for example this 6.5 typically this kind of 32:00 32 minutes plants always have a 5 to 10% of 5 to 10% of inbuilt cushion also namin for 32:07 32 minutes, 7 seconds example and when I speak to my technical guys they tell me that if things all go well tangi can actually produce uh 7.5 32:16 32 minutes, 16 seconds million t so I think in cement the plants have inherent in intrinsic inbuilt capacity for 32:24 32 minutes, 24 seconds delivery bottlenecking. So start with these are like low ending food for meat on the grinding and clining will also follow soon. 32:33 32 minutes, 33 seconds Understood sir. My second question then was on the uh maintenance cost. So in the last couple of quarters the other expenses on the was on the higher side 32:40 32 minutes, 40 seconds and uh reason given was that uh acquired assets like you know uh uh there is a higher maintenance for the acquired assets so to say. Now in this quarter's 32:49 32 minutes, 49 seconds press release uh you've mentioned that uh these maintenance of these acquired assets is largely completed. Now what I 32:56 32 minutes, 56 seconds wanted to uh understand from you is that given the backdrop of digitalization or AI integration uh and also the overall 33:05 33 minutes, 5 seconds uh like you know modernization initiatives that the uh company was uh uh taking. Will this other expenditure 33:12 33 minutes, 12 seconds continue to be on the higher side or this is where we can say that it is peaked out and now it will taper down from here on? Thank you. 33:20 33 minutes, 20 seconds Yeah, thank you. I won't say this peaked out uh because the digital initiatives have to sip in Naven uh in terms of let 33:27 33 minutes, 27 seconds us say the operating leverage benefit will surely help you to get the benefit in the coming quarters. So when it comes to utilization of Penna or Sanangi for 33:36 33 minutes, 36 seconds example which are still lower at as compared to our estimates for example and therefore the benefits will surely flow in but that is the advantage of the 33:43 33 minutes, 43 seconds operating leverage but so far as technology is concerned and that is where comprehensively we are doing at the plant level and at the business 33:50 33 minutes, 50 seconds level. those for example will sustain uh maybe at least two quarters I will require to bring a strong strong uh uh 34:00 34 minutes revamping of the foundation and then put on the additional layers of u the uh uh the AIS and all platform. So like these 34:08 34 minutes, 8 seconds initiatives have been launched they will bring uh uh marginal improvements apart from the operating leverages which I mentioned but the real improvement will begin from the next financial years. 34:18 34 minutes, 18 seconds However, uh my uh optimism for 4,000 rupees a turn uh by end of this financial year 34:27 34 minutes, 27 seconds year uh remains there uh in terms of the overall uh total budget cost. Understood. Thank you sir. 34:39 34 minutes, 39 seconds Thank you. Our next question comes from the line of Rahul Gupta from Morgan Stanley. Please go ahead. 34:46 34 minutes, 46 seconds Yeah. Hi, thanks for taking my question. 34:48 34 minutes, 48 seconds few questions. So first uh continuing on the previous question um um uh you reported around 70 odd rupees per turn 34:56 34 minutes, 56 seconds of additional cost on back of uh both sales promotion and second on maintenance. Now how much of this 70 odd 35:03 35 minutes, 3 seconds would continue over the next uh two quarters. So that's my first question. 35:09 35 minutes, 9 seconds Yeah. uh Rahul U 70 rupees per turn uh will u receive now with uh improved 35:16 35 minutes, 16 seconds volumes coming from some of these acquired assets and uh uh because we are doing it in a very systematic manner and 35:23 35 minutes, 23 seconds therefore some of the time which some of these assets for example Pena and Tangi have taken now that investments have 35:30 35 minutes, 30 seconds gone uh results will start flowing in so far as brand is concerned see that is like a very uh continuous exercise and 35:39 35 minutes, 39 seconds therefore for uh you will see uh more uh benefits coming from it with the higher share of premium cement. So even for 35:46 35 minutes, 46 seconds example when I say that uh this will uh be uh maintained sustained and u and and improve in terms of cost for marketing 35:54 35 minutes, 54 seconds and sales promotion but the delta effect for example when I look at it it is far far superior the yon y growth of 20% volume for example or even if I remove 36:03 36 minutes, 3 seconds the acquired assets the yon y growth becomes 11% which which outbreads the industry in in in in all means and that is actually for example I would not be 36:12 36 minutes, 12 seconds so concerned about that I would be rather looking at how it is helping in my overall matrices of revenue and the uh the overall say vida and the premium 36:20 36 minutes, 20 seconds cement so forth. So so the opex part for the maintenance will now be controlled 36:27 36 minutes, 27 seconds sustained and reduced with the benefits of the uh improved capacity utilization for the acquired assets. 36:35 36 minutes, 35 seconds Got it. My second question is um uh just help me understand uh u it's more like a clarification uh when you say that you 36:44 36 minutes, 44 seconds would exit the year with 4,000 rupees per turn of cost uh is it fourth quarter end is it March end can you help us 36:52 36 minutes, 52 seconds understand that and secondly when you say 3650 by fiscal 28 uh is it the full 36:58 36 minutes, 58 seconds year or March f March 28 or is it fourth quarter March 28 u any clarification over here would be very helpful 37:07 37 minutes, 7 seconds I would say pick it as March so like 4,000 is exit of FY 26 therefore pick it as March 26 likewise March 27 and then 37:16 37 minutes, 16 seconds March 28 got it got it one final question is u 37:23 37 minutes, 23 seconds your RMC business is ramping up quite fast if I look at the numbers fiscal 25 uh share of RMC was more like 4% in 37:31 37 minutes, 31 seconds overall revenues this has become around 4 and a.5% and first half how should we look at this business from second half perspective and next couple of years 37:39 37 minutes, 39 seconds perspective what at what level share of RMC revenues would stabilize that's it from my thank you 37:47 37 minutes, 47 seconds a good observation also like RMX is building up quite well for us and uh on a full-blown basis let us say fi 28 uh 37:55 37 minutes, 55 seconds and when I say in terms of my cement consumption in RMX which will give you that clearance it would be around say ballpark around 5% so 5% of my full blow 38:04 38 minutes, 4 seconds capacity of cement RMX will consume. So almost we are targeting 365 odd RMX plants uh in uh in next couple of years 38:13 38 minutes, 13 seconds and um good thing is now RMX has also built up quite well on the margin as 38:19 38 minutes, 19 seconds well. So uh yeah around 5% by FY28 for the for the cement consumption in 38:26 38 minutes, 26 seconds RMX and how much does it reflect into your revenues if you can help us understand 38:36 38 minutes, 36 seconds uh in terms of revenue I think or let you could let me ask this way what would be the uh cement consumption 38:42 38 minutes, 42 seconds of RMC right now cement consumption of RMC is quite uh right now uh around between say two 38:51 38 minutes, 51 seconds around 2% odd and uh as I said this is ramping up to go up to 5%. 38:57 38 minutes, 57 seconds Okay, got it. Thank you so much. 39:05 39 minutes, 5 seconds Thank you sir. Next question come from the line of Manish Somaya from Caner Fisgirl London Company. Please go ahead. 39:14 39 minutes, 14 seconds Uh thank you so much uh and congratulations again on uh good set of numbers. Uh there's been a lot of 39:22 39 minutes, 22 seconds discussion about cost. So maybe I'll switch to volume growth. Uh I think you 39:28 39 minutes, 28 seconds had 20% volume growth uh in the latest quarter uh and obviously the industry is 39:35 39 minutes, 35 seconds growing at much less. My question is how sustainable is this growth? And then 39:42 39 minutes, 42 seconds secondly uh as you sort of go up market so more premium how are you balancing pricing and volume? 39:54 39 minutes, 54 seconds Yeah, thank you Manish. Very interesting question. Um, I would go with last quarter and the current quarter trend. 40:01 40 minutes, 1 second Manish, last quarter also we delivered 20% year on year and this uh uh quarter 40:07 40 minutes, 7 seconds also 20% year on year. Uh now in terms of sustainability I think uh quite bullish to achieve double digit growth. 40:16 40 minutes, 16 seconds uh may not be 20% when the acquired assets mature and therefore the base goes up but uh surely double digit growth is what we are targeting on 40:24 40 minutes, 24 seconds strength of the strong brands what we have with top of it now the aani brand also getting fed into it uh so far as uh 40:33 40 minutes, 33 seconds the the whole structure when it comes to premium cement uh versus the overall volume growth uh manage that will get 40:41 40 minutes, 41 seconds very well balanced out and therefore for example we are looking at both the market share on one side and also also the uh proportion of the growth of our 40:48 40 minutes, 48 seconds premium cement both will go uh very well and uh we'll see a good level of progression and I will be looking at 40:56 40 minutes, 56 seconds double digit growth uh for next uh uh many quarters from here with the kind of capacity expansions 41:04 41 minutes, 4 seconds what we have uh already uh planned now for example from 107 million tons we are 41:10 41 minutes, 10 seconds going uh to 118 million tons by end of this financial year uh then almost like 41:16 41 minutes, 16 seconds around 100 u uh 30 uh 100 30 35 million 41:22 41 minutes, 22 seconds tons uh by fi 27 and 155 by fi 28 one so that the capacity itself is growing by 41:30 41 minutes, 30 seconds almost uh 10 to 15% every year therefore I'm bullish about double digit growth 41:37 41 minutes, 37 seconds my my second question is uh as you talk about uh the integration of Orient penna sani 41:45 41 minutes, 45 seconds How should we think about uh volume growth, margin growth and market share growth over the next uh call it 12 to 15 months. 41:56 41 minutes, 56 seconds If you can help us understand that that would be really helpful. 42:00 42 minutes Thank you. Very interesting. Thank you again Manish. See I also highlighted excluding the acquired assets my IITA is 42:07 42 minutes, 7 seconds almost at the base capacity at around almost 1180 rupees per metric ton but with the acquired assets which have 42:17 42 minutes, 17 seconds which are right now giving me lower IIDA. So let us say uh the iidas for penna and sani for example on although 42:26 42 minutes, 26 seconds there's an MSA and all but with the capacity license improvement they should also get closer to the current levels 42:33 42 minutes, 33 seconds and uh even if I expect uh it to achieve four digits uh we we see a very healthy 42:41 42 minutes, 41 seconds improvement in terms of the IIDA to sustain four digits and then to grow from there. uh end target of FI28 42:50 42 minutes, 50 seconds uh we had given uh our uh uh aim to achieve 1,500 rupees IIDA and that is where for example this acquired asset 42:58 42 minutes, 58 seconds will mature apart from all our initiatives on the efficiency on the debuting on the green power and so and 43:06 43 minutes, 6 seconds so forth that also for example entire table which we have given in the investor day uh the journey of reduction 43:13 43 minutes, 13 seconds of 400 rupees of cost uh And this 400 rupees is from my exit of March. So like 43:20 43 minutes, 20 seconds 4,000 rupees exit of March minus 400 rupees 3600 is what for example 36 3650 will will actually come in. So if it 43:28 43 minutes, 28 seconds does uh I'm optimistic to uh achieve uh for this acquired asset also healthier and now that investments have gone into 43:36 43 minutes, 36 seconds the maintenance and all uh and there's also very good u uh uptick in the demand in those clusters. For example, we are seeing a very healthy uptick of demand 43:45 43 minutes, 45 seconds in the western market where Sani is there. We are seeing a very uh positive uptick of demand in the southern markets for example where uh penna assets are 43:53 43 minutes, 53 seconds there and of course orient cat cers to west as well as to south but primarily to west which is again a very healthy 44:00 44 minutes high uh high contribution highida market like Mumbai. So I think acquired assets are doing uh orient has got one of the 44:08 44 minutes, 8 seconds best like profitability and knowledge within short period of time. uh and Penna is also picked up quite well. 44:13 44 minutes, 13 seconds Sangi is now going to swing in into very substantial positive zone from this uh Q3 in terms of capacity and therefore 44:20 44 minutes, 20 seconds like from overall performances. I hope I've addressed your point Anish on both the and then the capacity and the acquired phase. 44:28 44 minutes, 28 seconds Yes, you have. Thank you so much. Thank you. 44:34 44 minutes, 34 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address question from all the 44:41 44 minutes, 41 seconds participant and the conference, kindly limit the question to one question per participant. Should you have a follow-up 44:47 44 minutes, 47 seconds question, please rejoin the queue. Our next question comes from the line of Rashi from City Group. Please go ahead. 44:56 44 minutes, 56 seconds Thank you. Just a couple of questions on the U balance sheet. Uh you did talk about the working capital. Could you 45:03 45 minutes, 3 seconds just give the bridge of the cash reduction from June until September? 45:11 45 minutes, 11 seconds From June to September. Just see for example I am in the investment date given you the bridge from March to 45:18 45 minutes, 18 seconds September. Right. March to September. Uh so if uh can I just refer to the particular page uh particular? Yeah. So 45:26 45 minutes, 26 seconds if you go to the slide number slide is right 37. If you please go to the slide number 37 Rashi. Uh over there there's a 45:34 45 minutes, 34 seconds bridge in terms of the u the starting point which is 10,125 crores and the closing tax of September which is 1,813 45:44 45 minutes, 44 seconds crores. in between uh June there was this 2971 doors and there is this capital market uh event of acquisition 45:52 45 minutes, 52 seconds of 5910 of Orient and then there's a whole lot of investment activities of u of capex programs and likewise so but if 46:01 46 minutes, 1 second uh if you have any specific details on this slide number 37 I will be happy to answer but this bridge uh uh is there in terms of cash flow 46:10 46 minutes, 10 seconds yeah I just want to understand 2971218 297121813. 46:17 46 minutes, 17 seconds Okay, give me one a minute more but if you can come up with the next question and I will just begin to detail. 46:22 46 minutes, 22 seconds So would the overall utilization would come up in this quarter utilation of capacity? 46:30 46 minutes, 30 seconds Yes on including all your acquired assets. So including all the acquired asset on a console basis roughly it will 46:37 46 minutes, 37 seconds be around 65 to 67% and of course uh uh therefore I have the benefit of to improve it further. Uh even at 65% for 46:46 46 minutes, 46 seconds example we are at this volume numbers and the advantage of operating leverage will flow in for the coming quarters. Yeah. So it's around 65 to 67%. 46:56 46 minutes, 56 seconds Also uh you know like you mentioned that Penna was there in last year only for 45 days and Orient was not in the base. So 47:04 47 minutes, 4 seconds if I were to exclude both the uh would you have grown in line with the market or would you have gained market share 47:12 47 minutes, 12 seconds this year this quarter? I would have grown almost uh rashi two and a half times uh better than market industry average let's say at 4% uh growth uh 47:21 47 minutes, 21 seconds without uh Orient and Penna I would be at 11% growth okay if I take PA for 45 days and no 47:30 47 minutes, 30 seconds it's 11 got it and just sorry one more question 47:37 47 minutes, 37 seconds on the clinker the expansion that you're talking about from um 84 to 96 billion 47:45 47 minutes, 45 seconds tons. Is this have a rashi not able to hear you please? 47:54 47 minutes, 54 seconds I can. Can you please repeat? 47:56 47 minutes, 56 seconds Sure. The thing like cement expansion you've given us the debottleneck expansion the clinker debottlenecking that you were talking about the 12 48:04 48 minutes, 4 seconds million tons that's 84 going to 96. Uh any of this is an ACC or the whole thing is moving? No, that is not debottlenecking Rashi. Uh I told 48:13 48 minutes, 13 seconds debutlenecking on the clinker will come out with more comprehensive separately that was for the incremental lines which I mentioned to Naven. 48:22 48 minutes, 22 seconds Okay, those are available. All right. 48:23 48 minutes, 23 seconds Sorry. So for the bottlenecking sorry sorry no. Okay. So you continue then I would 48:31 48 minutes, 31 seconds respond on your cash and that Yeah. So just then if I can just if you could just repeat the clinker expansion. 48:38 48 minutes, 38 seconds So we're going to get to 73 million tons of clinker by FI 26, right? By the close of FI 26. 48:45 48 minutes, 45 seconds And then what what are next steps from there? 73 goes to 73 goes to almost now FI28 numbers will 48:54 48 minutes, 54 seconds go to around 96 and in between FI27 I will just let you know. But coming to your uh uh uh so like just give me FI27 49:01 49 minutes, 1 second sir and so far as uh uh because we'll have Marvar and all uh so another you put uh say uh two 8 million tons in 49:09 49 minutes, 9 seconds between so from 73 it becomes 81 and from 81 becomes 96 rashi these are this is the journey so far as cash and cash 49:16 49 minutes, 16 seconds equivalent is concerned from 2971 majorly it is going in terms of the capex program uh almost uh 1400 share is 49:25 49 minutes, 25 seconds actually from capex program with respect respect to all these ongoing capexes, right? So, uh, which are going to get commissioned in Q3 and some of it going to get commissioned in Q4. 49:39 49 minutes, 39 seconds Got it. So, 1,400 was a capex in the second quarter and uh 2,800 is for the first half the capex. 49:46 49 minutes, 46 seconds Yeah. So, my hit rate for in average heat rate for the quarter is almost 2,000 of crores and we hit almost 8,000 crores of capex program in a year. So, that is right. 49:57 49 minutes, 57 seconds Okay. Thank you. 50:02 50 minutes, 2 seconds Thank you sir. Thank you ma'am. Next question comes from the line of Ritisha from Investic. Please go ahead. 50:10 50 minutes, 10 seconds Yeah. Hi sir. Thanks for the opportunity sir. Uh first question three parts. Uh sir. Uh somewhere in the mail we have written that we will be adopting latest technology on new capacities. 50:20 50 minutes, 20 seconds uh and it will improve operational efficiencies and also it will reduce the average age of plants by 40%. Uh sir how 50:28 50 minutes, 28 seconds should we read into this? One is if you could elaborate on the technology. The second is on the operational efficiency what you indicate on heat and power. If you could quantify something and third 50:37 50 minutes, 37 seconds basically uh I presume average age of plants that's only because of the new assets. Uh nothing to do with the old assets if at all with the old assets 50:44 50 minutes, 44 seconds would we look to uh reassess the residual uh life of the plant and hence uh also depreciation going forward. 50:55 50 minutes, 55 seconds So that's one by one. Uh let's uh first your question is in terms of the efficiency uh these technologies for example when 51:02 51 minutes, 2 seconds we say latest technologies there are all like uh the 4 million tons of clean for example uh when you look at that the 51:10 51 minutes, 10 seconds heat factor the heat consumption comes to almost 680 uh kilo calories u yeah and compared to 51:17 51 minutes, 17 seconds that for example uh the existing u uh heat consumption is almost like around 730 to 740 51:25 51 minutes, 25 seconds Now that that straight away for example this new tinkering lines will give the benefit in terms of the averaging the heat consumption. Now when it comes to 51:32 51 minutes, 32 seconds power consumption I'm aware of that our power consumption is slightly higher than the industry uh leaders and peers and that is where precisely we have an 51:41 51 minutes, 41 seconds advantage to catch up on that. Uh typically for example if the current consumption is uh upwards of say 60 51:48 51 minutes, 48 seconds units on an average the uh latest assets uh basically uh uh overall say uh uh 51:56 51 minutes, 56 seconds investments they will bring the new assets will come at less than 50 uh units per turn of say uh uh term now and 52:04 52 minutes, 4 seconds effectively when you look at composite basis also both cement and it will come down substantially. So nothing for example the only thing is when you add 52:12 52 minutes, 12 seconds up the new investments new assets it will help us to uh improve the overall average of new plus existing ones. So 52:19 52 minutes, 19 seconds that is like where for example we see a good advantage what we have despite a a little uh old assets or higher average 52:28 52 minutes, 28 seconds age our current performance therefore has to be looked upon in that context and then the improvement plan has to be seen in that context thus hope for us to 52:35 52 minutes, 35 seconds improve and hence I this time mentioned 40% reduction which happens in my overall average age by FI28 when you go 52:44 52 minutes, 44 seconds for this expansion plans. Uh you had couple of other questions. Uh so therefore for the journey of this 400 52:51 52 minutes, 51 seconds rupees a turn uh you will find 250 rupees in terms of power and fuel and these are like factors of consumption 52:59 52 minutes, 59 seconds apart from u apart from mitigating in terms of the rate and all which we have demonstrated. What is your second question which is I'm using that. 53:08 53 minutes, 8 seconds Yeah sir a related question. So would we look to reassess the useful life of the assets that we have after the debottlenecking and uh equipment upgrades that we're doing? 53:18 53 minutes, 18 seconds No. So we we have done that. I think uh one or two assets for example we will look at the mbaling and uh I will separately share with you the details 53:27 53 minutes, 27 seconds with all of you separately with the details but that is like insignificant in the overall scheme of things. uh so uh for example we constantly do that in 53:35 53 minutes, 35 seconds context of the market share and the overall additions of the new assets. So as and when the new assets keep adding 53:42 53 minutes, 42 seconds it we will look at the uh some of the very old assets in terms of mudaling and then look for another level of expansion 53:50 53 minutes, 50 seconds programs in those areas. Yeah but for right now all my assets are up and running. 53:56 53 minutes, 56 seconds Sure sir. This is quite useful for vi we have uh for vi the line number one for example I did mention to uh to all of 54:05 54 minutes, 5 seconds you before we we have stopped using vi line number one but that doesn't really affect my any kind of say uh source of 54:13 54 minutes, 13 seconds ka etc because that was pretty pretty old and uh we have dismantled it. 54:20 54 minutes, 20 seconds Sure. Uh sir second is just to have the comfort on the timelines for the commissioning. Uh because when we look at one of the slides uh what we just 54:28 54 minutes, 28 seconds when we compare it with the prior quarter we find six of the projects there is a delay of a quarter. Uh this includes Batinda Badpara 54:36 54 minutes, 36 seconds uh Marata Salaiwa Jodpur Krishna Patnam uh sir how should we read into this or is it something like uh it will come on 54:44 54 minutes, 44 seconds the revised timelines uh sir how should one get more confidence over here please? 54:50 54 minutes, 50 seconds In Bangladesh uh again for example you have torrential rains and you have got say flood like situations across many parts of the country and therefore for 54:57 54 minutes, 57 seconds example some of this has become an uh al result of some of the factors of delays but generally like for example when I 55:06 55 minutes, 6 seconds when I for example say anything operational I look at commercial operationalizing of the plant more than basically trial run and all. Therefore, 55:15 55 minutes, 15 seconds for example, you will find uh meaningful uh uh outcomes of all these for example ongoing when the commercial production will start definitely before the before the Q4 and start giving us the benefits. 55:27 55 minutes, 27 seconds Uh so some of them are at different stages of their pre uh pre-trials and all and the trials will commence and 55:35 55 minutes, 35 seconds then commercials are coming in. So I don't see any any any unreasonable uh delay. These are all part and parcel of the uh uh the situation when you have uh uh uh rent and u other issues. 55:49 55 minutes, 49 seconds All right. Uh sir, if I can just squeeze in one uh sir, you gave a very interesting data point that the average age has reduced by it has reduced to 38 55:57 55 minutes, 57 seconds years. Uh sir, how are you reading into this particular number like is it natural attrition or is it uh uh hiring 56:05 56 minutes, 5 seconds younger one younger workforce? uh how do you map it with the productivity of the firm? Uh how are you looking at this number? 56:13 56 minutes, 13 seconds This is important because I I I I would love to answer this. I think what we have done is now uh the CAD hire uh 56:20 56 minutes, 20 seconds program for example so we have hired almost 1,300 GS and GS and who are going through a 56:28 56 minutes, 28 seconds very well structured program of training uh almost by end of this year they will complete one year and they will be available uh in terms of absorption 56:37 56 minutes, 37 seconds right number one uh I think we are putting a lots of good focus on terms of uh the uh holistic training across our 56:45 56 minutes, 45 seconds uh uh the various functions in in the entire business I see productivity has has been improving uh substantially and on top of it when you put the layer of 56:53 56 minutes, 53 seconds technology uh therefore for example if if you look at the HR cost per ton of cement you will find adani cement HR 57:02 57 minutes, 2 seconds cost is one of the most efficient compared to uh my peers and all and I think uh the productivity will further 57:09 57 minutes, 9 seconds improve once the uh digitization will seep in on a on a full-fledged basis Sure sir. Thank you so much for the answers. 57:19 57 minutes, 19 seconds All the very best. Thank you. 57:24 57 minutes, 24 seconds Thank you sir. The next question come from the line of Patangjali Shinasan from Sundra Mutual Fund. Please go ahead. 57:32 57 minutes, 32 seconds Sir on a good set of numbers. I just have couple of doubts. uh one is uh we have done a very good job in uh ramping 57:40 57 minutes, 40 seconds up our capacities from the time we've acquired assets and uh we are going towards the uh cost reduction journey. 57:48 57 minutes, 48 seconds What is the hurry for us to expand very fast given that we are in a very good position where we are and uh our 57:55 57 minutes, 55 seconds utilization is slightly dropping because of this. 58:01 58 minutes, 1 second Uh okay Patanjali thank you. So I think uh you have a right observation in terms of uh the uh growth what we have achieved from 67.5 million when we 58:10 58 minutes, 10 seconds acquired uh in September 22 to now 107 million to almost like a million tons 58:17 58 minutes, 17 seconds per month is what we have grown uh but uh in terms of ramp up I think uh from beginning uh on first uh day of the uh 58:26 58 minutes, 26 seconds board meeting we have announced we will go up to 140 million tons and we are well on our journey to achieve that. uh there is uh quite a uh organized and uh well articulated strategy around that. 58:37 58 minutes, 37 seconds Uh what we have now just added is this 15 million tons of uh rebotting which will take me to 155 million and again that this will substantially help me in 58:45 58 minutes, 45 seconds terms of the overall uh uh efficiency and advantage of operating leverage. Uh so far as capacity utilization is 58:53 58 minutes, 53 seconds concerned uh I don't think that is a concern. So far as uh brands like uh Adani cement, AmujaC is concerned uh I 59:01 59 minutes, 1 second think uh from a capacity placing perspective we are more uh have been spending time in terms of the reliability of the machines especially 59:08 59 minutes, 8 seconds for the uh the acquired assets both our Amuja SEC more so like Sani and Pena for example and therefore I told you Sani 59:17 59 minutes, 17 seconds will have a a sizable uptick in terms of capacity so is Pena uh in in coming quarters and I'm quite optimist missed 59:25 59 minutes, 25 seconds on this part. So u I think our share of market uh will continue to go up as of now this quarter we have increased by 1% 59:33 59 minutes, 33 seconds and our target is to hit almost 20% uh to 22% by FY28 59:40 59 minutes, 40 seconds and uh this will continue uh uh on support of a very strong uh uh supply chain. For example, right now we are 59:48 59 minutes, 48 seconds selling almost 29,000 dealers, uh more than 50 60,000 retailers and almost uh 7 59:56 59 minutes, 56 seconds lakh contractors. Uh they're all for example quite bullishly looking at u at u the business uh and the business 1:00:03 1 hour, 3 seconds prospects on trend of Adani Abuja Nadani ECC. 1:00:09 1 hour, 9 seconds Yeah sure sir and just one last question slightly arithmetic so a consolidated 1:00:16 1 hour, 16 seconds term is 2016 uh standalone level I think it's seven for Abuja 1:00:22 1 hour, 22 seconds is around 900 uh how can you explain the bridge between this like does this mean that because of the MSA we get better uh 1:00:31 1 hour, 31 seconds profits at console leveling numbers that is true that is true because when So even that therefore like 1:00:40 1 hour, 40 seconds look at the volume you'll find individual companies will add up if you simple add up the volume will be higher but when it comes to console the volumes 1:00:47 1 hour, 47 seconds gets lower because uh in console the inter scale between the companies gets knocked off and hence this happens from 1:00:54 1 hour, 54 seconds arithmetics perspective okay so what would be the utilization of these assets acquired assets roughly 1:01:02 1 hour, 1 minute, 2 seconds see uh my base capacity assets are at a very good utilizing factor of upwards of 75 5% and my acquired assets will vary. 1:01:11 1 hour, 1 minute, 11 seconds Uh therefore for example, Orient is at a healthy level. It serves the western markets and more so Bombay and all. Pena is southern market therefore gets 1:01:19 1 hour, 1 minute, 19 seconds influenced with the with the typical trends of southern industry and Sanangi for example being a coastbased plant and 1:01:26 1 hour, 1 minute, 26 seconds having torrential rent and all for Q2. I would not say that it will be reflective of its trend but Sani should now be 1:01:33 1 hour, 1 minute, 33 seconds moving around in the range of 65 70% in Q three and Q4. 1:01:40 1 hour, 1 minute, 40 seconds Got it. Thank you. 1:01:44 1 hour, 1 minute, 44 seconds Thank you sir. Ladies and gentlemen, due to the time constraint that was the last question for today. I would now like to hand the conference over to Mr. Deepak 1:01:53 1 hour, 1 minute, 53 seconds Balwani for his closing comments. Thank you and over to you sir. 1:01:59 1 hour, 1 minute, 59 seconds Thank you. I trust most questions have been addressed. Should you wish to discuss any outstanding query, we are available for a separate conversation 1:02:06 1 hour, 2 minutes, 6 seconds from 5:15 to 5:45. You have my contact number. Please free to call me. Thank you. 1:02:14 1 hour, 2 minutes, 14 seconds Thank you so much. On behalf of BNP Paribas, that concludes this conference. 1:02:19 1 hour, 2 minutes, 19 seconds Thank you for joining us and you may now disconnect your line. Thank you team. Have a great day.