Ambuja Cements Ltd — Q4 FY26

Ambuja Cements Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7dJznDkORZE Published: 9 days ago

0:00 Ladies and gentlemen, good day and welcome to the Ambuja Simmons Limited Q4 FYI26 earnings call hosted by JM 0:08 8 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 0:16 16 seconds ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:24 24 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. 0:36 36 seconds Thank you everyone. Without much delay, I will transfer the call to Mr. Deepak Balawwani, head of investor relations. 0:44 44 seconds Mr. Deepak, over to you. 0:47 47 seconds Uh thank you Dhi. On behalf of Abuja Peement, I'm pleased to welcome all the participants to our earnings call for 0:53 53 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. 1:04 1 minute, 4 seconds Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not 1:11 1 minute, 11 seconds guarantees of future performance and may involve unforeseen risk and uncertaintity. We remain committed to further strengthening our disclosure 1:19 1 minute, 19 seconds standards and improving the quality of our capital market communications to the best in the industry. We are pleased to have with us on the call Mr. Biti, chief 1:27 1 minute, 27 seconds executive officer and Mr. Roy Koni, chief financial officer. Now I invite Mr. Bi to provide his valuable insights on the quarterly performance. 1:36 1 minute, 36 seconds Yeah, thank you Deepak. Thanks DHS. Good evening. Uh everyone, uh FY26 was a year 1:44 1 minute, 44 seconds of resilience for the Indian cement sector marked by industry consolidation and the GST 2.0 O reforms on one side 1:53 1 minute, 53 seconds while the adverse and the extended weather conditions, global geopolitical factors and the various state elections 2:01 2 minutes, 1 second also affected the industry and demand in some or the other way. Against this 2:08 2 minutes, 8 seconds backdrop, Abuja delivered a resilient performance for the year, achieving its 2:15 2 minutes, 15 seconds highest ever annual sales volume of 73.7 million tons. 2:21 2 minutes, 21 seconds up 16% Y on Year on in that manner and on a normalized basis the IBIDA of Rs 2:30 2 minutes, 30 seconds 6,539 crores up 31% at rupes 887 per metric ton which is on 2:39 2 minutes, 39 seconds a PMT basis up 12% and the PAT of rups 2647 crores up 17%. 2:46 2 minutes, 46 seconds The company continues to remain debt-free and with highest credit rating. 2:53 2 minutes, 53 seconds Annual volumes grew well ahead of the industry. Trade sales volume grew steady at 10% while the premium cement 3:01 3 minutes, 1 second accounted for 35% of the trade sales during the year reflecting sustained progress on premization. 3:09 3 minutes, 9 seconds During uh the year company's cement capacity increased to 109 million tons 3:16 3 minutes, 16 seconds supported by commissioning of 10.7 million tons of new grinding capacity at various locations like Marwa Faraka 3:24 3 minutes, 24 seconds Sankril Sundri Krishna and the additional clinical capacity of 7 million tons at Jodpur and Batapara. 3:34 3 minutes, 34 seconds During financial year 26, we also made meaningful progress on the portfolio integration. Successful amalgamation of 3:43 3 minutes, 43 seconds Sanangi industries and Pena cement with Ambuja cements is now completed while ACC and Orient cement is under process. 3:54 3 minutes, 54 seconds The one cement platform is a strategic initiative and will help to bring sharper focus on the operational performance 4:02 4 minutes, 2 seconds business synergies and the overall higher degree of compliances. 4:07 4 minutes, 7 seconds Therefore, this time the balance sheet of Abuja console now has finalized 4:15 4 minutes, 15 seconds purchase price allocation of Orient and Pena till December. It was on a provisional basis. The numbers you will 4:23 4 minutes, 23 seconds find marginally changes in the balance sheet which is the classification of goodwill and the other intangible assets while in the P&L you will find some 4:32 4 minutes, 32 seconds changes in terms of amounts for depreciation and the defer tax accounting treatments. 4:39 4 minutes, 39 seconds Further friends you will see in the notes of the accounts you will see various tax related provisional uh notes with respect to reversals details are there in the published financials. 4:50 4 minutes, 50 seconds Please also note financial year 25 and financial year 26 are not comparable like to like since FI25 does not have 4:59 4 minutes, 59 seconds orient cement while penna was acquired and consolidated from 16th of of August 25 that is only 7 and a half months for 5:08 5 minutes, 8 seconds the FI25 uh as against 12 months for FI26 and while Orient is only for 11 months in 5:14 5 minutes, 14 seconds FI26 and was not there in FI25. Now let's again come back to the business part. My green power share increased 5:22 5 minutes, 22 seconds almost uh 32% now in Q4 compared to 26% before. 5:28 5 minutes, 28 seconds Uh the newly acquired assets particularly Sangi and Pena they witness lower utilization levels. Uh Sangi still 5:35 5 minutes, 35 seconds remains at around say for the full year at 57% on cement capacity utilization while Penna is 46%. However, last time I 5:44 5 minutes, 44 seconds mentioned to you that in uh December quarter we have seen a good improvement especially for Sanangi. Uh the turnaround initiatives have taken a 5:52 5 minutes, 52 seconds little longer than the expected timelines and some of these uh plants especially of Pena needed higher than um uh 6:01 6 minutes, 1 second expected time for maintenance capex and um overall uh upkeep of the assets. Uh 6:08 6 minutes, 8 seconds so 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 6:17 6 minutes, 17 seconds to look at the reasons uh higher freight cost uh due to increase in the overall say lead primary and secondary both uh 6:25 6 minutes, 25 seconds increase in some of the uh state like the additional good stack especially in Himachel. Uh then in terms of the higher 6:33 6 minutes, 33 seconds packing cost which we more so have seen that in the month of March which has seen some abruptions given the west Asia 6:40 6 minutes, 40 seconds war uh the higher fuel uh cost on account of uh little higher than expected heat consumption what we have 6:47 6 minutes, 47 seconds and more so for the acquired assets uh the higher branding cost uh now that we have uh uh focused more on trade sales 6:57 6 minutes, 57 seconds uh starting from the Q4 uh And while we have also improved our trade sales to 74% compared to in December quarter of 7:05 7 minutes, 5 seconds 25 it was 68%. So which would clearly mean uh we are focusing on blended cement and if you also see my cleaner 7:13 7 minutes, 13 seconds factor has improved from uh 67% in December quarter to now 65%. Uh this has also u uh uh one of the uh cost which is 7:23 7 minutes, 23 seconds the banding cost and the sales promotion cost have gone up and some of the other issues like the raw material costs uh which we could have uh improved in terms 7:31 7 minutes, 31 seconds of the fly but uh spending some of the uh railway infrastructure which will be completed in coming months and you will see a good level of improvement on that. 7:40 7 minutes, 40 seconds But uh pending that uh we have uh we have not been able to meet our uh uh some of the raw material costs uh to our 7:49 7 minutes, 49 seconds desired levels. Uh essentially uh there there is a uh 3 to 6 months delay on some of the efficiency capexes which has 7:57 7 minutes, 57 seconds happened and uh uh hopefully like in coming quarter uh we we should be gaining momentum to to complete and get 8:05 8 minutes, 5 seconds the benefits of it. So therefore in FI27 our focus firmly uh remains on streamlining the operations and margin 8:14 8 minutes, 14 seconds expansion. So uh we will continue to focus on trade sales uh and uh more so on the premium product sales uh which we 8:23 8 minutes, 23 seconds have a huge leadership almost 36% of my trade sales has been premium cement uh sale for for Q4. uh we will uh uh 8:33 8 minutes, 33 seconds continue to improve the uh reliability at Fenma and San Changi and the overall asset utilization uh 8:40 8 minutes, 40 seconds together they have 19 million tons of capacity and the target is to uh increase the utilization by at least 5 to 10% for these assets. Uh in terms of 8:49 8 minutes, 49 seconds the cost uh so while we are cognizant of the overall ongoing global geopolitical situation and uh we have already seen a 8:58 8 minutes, 58 seconds cost escalation in Q4 more so in the month of March uh almost uh by 25 rupees 9:05 9 minutes, 5 seconds a bag uh closer to let us say ballpark 400 to 500 rupees if I have to go on a full full-blown basis cost uh increase 9:13 9 minutes, 13 seconds uh is there in the industry and so is to our company uh so We are rec-alibrating our cost for this financial year. Uh I 9:22 9 minutes, 22 seconds have mentioned earlier about our journey to achieve uh cost of almost 4,000 rupees a ton by March 26 exit. Meanwhile 9:32 9 minutes, 32 seconds uh uh in terms of the full year of 26 we have given a figure we have achieved a figure of 4,400 rupees a return which is 9:40 9 minutes, 40 seconds almost 10% higher to our own um targets uh for the reasons which I mentioned before. uh although in in the month of 9:48 9 minutes, 48 seconds March we are closer to at uh 4,100 rupees a ton uh since there are these are like fastmoving global situations 9:56 9 minutes, 56 seconds and u and dynamisms over the energy costs and other basically expected heights uh in the in the in the fuel and 10:05 10 minutes, 5 seconds uh diesel and all. Therefore, it will be very difficult to provide any long-term estimates for right now uh till the time things stabilize over the next two three 10:14 10 minutes, 14 seconds quarters. Uh therefore I would say that on on strong conviction on certain components of costs uh for 10:22 10 minutes, 22 seconds example which I have uh a is in terms of the overall say raw material cost led by flyers and in terms of the green energy 10:30 10 minutes, 30 seconds cost for example which is going to see uh substantial improvement further in in our overall circulation. Therefore, I 10:37 10 minutes, 37 seconds strongly believe 150 to 200 rupees will uh savings will come from this uh components. on the overall console volumes we are expecting it to grow uh 10:45 10 minutes, 45 seconds in FI28 27 by almost uh by almost say 8% to around 80 million odd turns and we 10:53 10 minutes, 53 seconds are cognizant of the fact that we will will uh focus on uh value with the trade volumes and premium cement uh and 11:01 11 minutes, 1 second therefore we are keeping it till uh moderate overall say growth uh in the volumes part uh at at an industry level 11:10 11 minutes, 10 seconds we we believe that uh Given the headlines of inflation and weak monsoon uh the industry may grow at around say 11:18 11 minutes, 18 seconds five to five and a half%. Uh we continue to remain committed to our end state sales volumes targeted uh supported by a 11:26 11 minutes, 26 seconds sharper focus on higher utilization of the existing capacities and while operationalizing the uh new capacities and stabilizing them. Therefore with 11:34 11 minutes, 34 seconds this proposed uh ongoing additions of 10 million tons of GU which you are aware of which I have already shared with you in the investor deck some of them for 11:43 11 minutes, 43 seconds example Salaiwa and Vasali and so and so forth we are expecting to hit capacity 11:49 11 minutes, 49 seconds of almost 119 million tons by end of FI uh 27. 11:57 11 minutes, 57 seconds uh capacity expansion plans. We are reccalibrating in line with our uh approach to take the advantages of the recent railway policies on bulk human 12:04 12 minutes, 4 seconds terminals uh with additions pursued more gradual uh in terms of first focusing on optimizing the current capacities in 12:12 12 minutes, 12 seconds hand. Uh this will uh also help in terms of a very disciplined allocation of capital and a steadfast commitment to 12:20 12 minutes, 20 seconds maximizing the returns on the capital employed. Looking ahead, India's long-term infrastructure story uh 12:27 12 minutes, 27 seconds remains uh fundamentally very strong and secular. However, with the expected inflationary pressure, weak monsoon and 12:35 12 minutes, 35 seconds the cement demand is expected to remain little soft. Against this backdrop, uh Amja remains focused on discipline execution, strengthening brand 12:44 12 minutes, 44 seconds penetration, scaling trade sales, driving premium cement sales and maintaining the cost and capital discipline. Thank you. and uh I will now hand it back to uh the moderator back. 12:56 12 minutes, 56 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 13:05 13 minutes, 5 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 13:14 13 minutes, 14 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:20 13 minutes, 20 seconds We'll take our first question from the line of Naven Sadu from ICA securities. Please go ahead. 13:27 13 minutes, 27 seconds So friends also just to inform you that we also have u our four-time director 13:33 13 minutes, 33 seconds and um uh senior Mr. Karani also on the call. He has just joined us. So I welcome Karan Bay and uh uh yeah I just 13:42 13 minutes, 42 seconds basically Karan by did the opening remark and u uh we are now to on the Q&A. So over back to the uh moderator please. 13:50 13 minutes, 50 seconds Yes, we have a question from Naven Sep. Naven. Yeah. Yeah. Hi. Please go ahead. 13:58 13 minutes, 58 seconds Yeah. Uh thank you uh for the opportunity. Uh my first question was on the volume growth front. So in this 14:06 14 minutes, 6 seconds quarter as per the investor deck uh volumes have grown by about 10 odd percent. But if I adjust them to the 14:15 14 minutes, 15 seconds orient cement volumes uh they are more like flattish on a y basis. And here my question is that if 14:24 14 minutes, 24 seconds if we are seeing some pressure on volume because for FY27 we have given a guidance of 80 million 14:32 14 minutes, 32 seconds tons which is roughly a growth of 9 to 10% against the backdrop that we are 14:38 14 minutes, 38 seconds expecting a much softer industry growth of 5%. So, I'm just wanting to uh request overall color on your volumes. 14:52 14 minutes, 52 seconds Hello. Yeah, sorry. Yeah, sorry for the snag. So Naven um so you're right absolutely in terms of the volume uh 15:00 15 minutes especially for this March quarter it has been little uh muted uh but now uh for the F527 15:09 15 minutes, 9 seconds uh when I given you indication of 18 million which is around closer to say 8% uh we have the visibility in terms of uh 15:18 15 minutes, 18 seconds a stabilizing the acquired assets of u sanangi pen uh which I told you uh see 15:25 15 minutes, 25 seconds the u uh ongoing expansions which will get commissioned in the next few months 15:33 15 minutes, 33 seconds like between let let us say now to uh September we'll see uh the capacities will get commissioned and we'll also 15:39 15 minutes, 39 seconds then stabilize them. So I have the uh incremental volume also coming from these capacity which I mentioned almost 15:48 15 minutes, 48 seconds around 10 million tons and of course stabilizing the the acquired assets of Penna and Sani. Uh yeah so on that basis 15:57 15 minutes, 57 seconds basically uh we are expecting uh uh although with a with a softer demand uh for the year. 16:06 16 minutes, 6 seconds Did I answer your question Nin? Um yeah yeah thank you. My my second question then was on the overall capeex 16:14 16 minutes, 14 seconds uh uh plan. So as mentioned in this presentation, we are re-calibrating our entire uh uh growth plan. We have 16:21 16 minutes, 21 seconds visibility of taking that overall capacity to 119. But I'm just trying to understand by when will uh like you know 16:29 16 minutes, 29 seconds uh we get a color on the next leg of JPEG because the first day uh when the asset was acquired the vision was to 16:37 16 minutes, 37 seconds like you know I think uh double the capacity and take it to 140 in the interim we even increased it to 155 and 16:46 16 minutes, 46 seconds now we taking a slightly a step back. So my question was from a growth point of view uh is there a by when first of all 16:54 16 minutes, 54 seconds can we get a color of the big picture or the next longerterm plan and in the same breath is it that we are more open to 17:04 17 minutes, 4 seconds pursue inorganic growth which helps us catapult to that uh overall growth target or we still believe organic uh is 17:11 17 minutes, 11 seconds the is the uh way to go uh that will thank you. So so so Namin uh our primary 17:19 17 minutes, 19 seconds focus remains uh organic uh in terms of u stabilizing our u ongoing expansions 17:26 17 minutes, 26 seconds uh and also already acquired assets. So therefore I would say that that remains the primary focus. uh I think we have a good headroom uh to improve our overall 17:34 17 minutes, 34 seconds say market share by improving the capacity utilizations of these plants and therefore uh as I said we are going to follow a quite a disciplined uh 17:42 17 minutes, 42 seconds capital allocation and uh uh given the head headwind right now for the industry uh it makes sense to uh push little bit 17:50 17 minutes, 50 seconds of the capex uh but without uh losing eyesight on the overall say market share and the volume volume improvement from 17:57 17 minutes, 57 seconds the existing assets and the ongoing u expansions questions. Uh to answer your question, I think um maybe uh what I 18:04 18 minutes, 4 seconds would say that u uh the target plans of FI28 it it could move uh a year or two let us 18:13 18 minutes, 13 seconds say on a safer side I would say that u uh FI30 but as I said it doesn't really matter what matters is how you are able to ramp up the volume from your overall 18:22 18 minutes, 22 seconds existing assets and I have substantial good headroom to ramp up over there even if I hit 120 million tons by end of 27 18:29 18 minutes, 29 seconds it will give me a good uh leverage of the overall free market opportunity. 18:37 18 minutes, 37 seconds Helpful sir, thank you so much. 18:40 18 minutes, 40 seconds Thank you. Next question is from the line of Rashi Chopra from City. Please go ahead. 18:46 18 minutes, 46 seconds Thank you. Just uh only continue on the previous question. What is the cleaner capacity as of now? 18:55 18 minutes, 55 seconds So Rashi as of now we are sitting on um 73 uh million tons of cleaner uh capacity 19:06 19 minutes, 6 seconds and you will be adding another 4 million this year. 19:09 19 minutes, 9 seconds Yes. Uh so at uh uh Marata and uh at u at like Pa Marad we will be adding up 19:18 19 minutes, 18 seconds almost like 5 million. So Pam Mar is 3 million uh sorry 2 million and the Marata is another 2 million we have 4 million. Yeah. 19:28 19 minutes, 28 seconds Okay. And you mentioned earlier on that the uh 56% utilization was for sani for 19:35 19 minutes, 35 seconds a year and 10 hours was 47. Is that correct? That is true. That is true. 19:40 19 minutes, 40 seconds Okay. And uh the next question on cost now for for the full year the cost is 4,400. 19:48 19 minutes, 48 seconds For the quarter what was the average cost? 4500 for 19:55 19 minutes, 55 seconds the quarter cost rashi we are uh sitting at almost 4,250 rupees uh for the for 20:03 20 minutes, 3 seconds the uh for the uh for the overall say uh quarter and plus some of these increases what we have seen from the overall 20:11 20 minutes, 11 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 20:20 20 minutes, 20 seconds 4,500 rupees a turn for the quarter of March right and you were saying that the the 20:28 20 minutes, 28 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 20:37 20 minutes, 37 seconds another 2 200 250 rupees increase in costs which will get offset by your fly 20:44 20 minutes, 44 seconds ash green energy etc. Is that the is that how we should be thinking about it? 20:49 20 minutes, 49 seconds Sorry, I I I I I I need your So you indicated that. So we are at 4500 now on cost. Your you said 150 to 200 is 20:57 20 minutes, 57 seconds a reduction that you're expecting because of fly ash green energy, right? 21:01 21 minutes, 1 second So that's 150 to 200. But the overall industry cost has gone up by more, right? Because of the West Asia crisis. 21:08 21 minutes, 8 seconds So is that 150 to 200 already capturing the increase in industry cost or this 180 150 to 200 decline in your internal 21:17 21 minutes, 17 seconds cost and then there's an increase in cost because of the war beyond this. 21:22 21 minutes, 22 seconds So I see like as I said the 4500 which is for the March quarter has already 21:30 21 minutes, 30 seconds taken the heat of existing increases of of almost say 250 rupees. So I would say that 4500 uh safely I would say is on a 21:39 21 minutes, 39 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 21:48 21 minutes, 48 seconds will actually start coming down uh in passing quarters. uh so uh although like 21:56 21 minutes, 56 seconds for example with the overall situation how the overall energy uh situation emerges I would not give with conviction 22:03 22 minutes, 3 seconds but I strongly believe that yeah this is like uh the peak which we have hit and should see a progressive improvement. 22:11 22 minutes, 11 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 150 to 200. 22:21 22 minutes, 21 seconds Absolutely. Well, it absolutely okay. And on the pricing, what has happened to offset these cost pressures? Cement pricing. 22:29 22 minutes, 29 seconds So that's interesting Rashi. Uh so you're hitting on both the right questions. uh on the pricing uh like industry has seen um a modest uh 22:38 22 minutes, 38 seconds improvement of uh I would say 10 rupees u in few pockets let us say 15 20 rupees 22:45 22 minutes, 45 seconds but that's like in a very selected u uh area geographies otherwise ballpark for 22:52 22 minutes, 52 seconds the quarter of March it around ballpark 10 rupees now with uh with the demand 23:00 23 minutes getting little softer uh The pressure on pricing uh uh definitely is higher and 23:08 23 minutes, 8 seconds despite the circumstances of costs gone up uh unfortunately u uh industry is 23:15 23 minutes, 15 seconds still uh under the uh relentless pressure and not able to pass on the price. 23:23 23 minutes, 23 seconds Got it. And this last question what was the cape for the year? 23:28 23 minutes, 28 seconds So capex for the year we are keeping it little moderate and ballpark when you say this so you're seeing for fi 26 fi 23:36 23 minutes, 36 seconds 26 is closer to about 7, 500 or uh I'll just answer because there would be another question uh so for fi 23:45 23 minutes, 45 seconds 27 we are keeping estimate of almost 6,000 to 6,500 cr and that two will also 23:53 23 minutes, 53 seconds that is how things pan out it may change uh couple of hundred cr here and there but that's the estimate what we have. Got it. 24:00 24 minutes Thank you. 24:03 24 minutes, 3 seconds Thank you. Next question is from the line of Indrajit Agarwal from CLSA. Please go ahead. 24:10 24 minutes, 10 seconds Hi, thank you for the opportunity. Uh congratulations on increasing both trade sales and premium mix. But on that note, 24:16 24 minutes, 16 seconds if I look at slide 27, uh the realization has hardly moved QQ versus appears it is up some somewhere between 24:24 24 minutes, 24 seconds one and a half to 2%. So is it mainly because of mix or what is driving this weaker element? 24:31 24 minutes, 31 seconds So Indrajit absolutely you're right. I think uh the journey has just begun uh when we change the gears and therefore 24:38 24 minutes, 38 seconds you will see it more uh differentiated uh uh uh benefits coming in the subsequent quarters. Uh what we have done is we have sustained the price 24:47 24 minutes, 47 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 24:56 24 minutes, 56 seconds modestly at say 1 rupee uh and uh compared to say last year we were at say 255. So yes the journey would further 25:04 25 minutes, 4 seconds see improvements uh with u higher blended cement and more uh premium uh cement sales. So uh it is just begun. 25:15 25 minutes, 15 seconds Sure. Thank you. Uh second if I look at your blended utilization for next year would we at west 71 72% on your expanded 25:24 25 minutes, 24 seconds let's say weighted average capacity. So on that note probably you will not need additional capacity in FI28 as well. Um 25:31 25 minutes, 31 seconds is that what is driving a more calibrated capex approach? 25:37 25 minutes, 37 seconds So I have uh also to um to answer this question. Uh just a sec. Yeah. So, so I 25:44 25 minutes, 44 seconds think the way we are looking at this uh new uh how we would look at keex is two three things. One is when we look at our 25:52 25 minutes, 52 seconds performance uh we need to we we know where are the places we need to improve on. Uh there are certain uh uh capacity 26:02 26 minutes, 2 seconds which is uh which is there which is in the wrong places. uh and we and so we 26:09 26 minutes, 9 seconds will be adding few capacity in places which will help us in terms of reducing our cost logistics cost especi 26:16 26 minutes, 16 seconds especially as well as uh help us uh improve our uh penetration into into 26:24 26 minutes, 24 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. 26:35 26 minutes, 35 seconds uh so so those are the places that we would uh definitely look at uh uh expanding our uh our um our capacity 26:44 26 minutes, 44 seconds over there. The second thing is uh as we uh we would be looking at uh ex um uh as 26:53 26 minutes, 53 seconds we are expanding our clinker capacity uh the correspondingly geo capacity will also increase and uh uh this year we we 27:02 27 minutes, 2 seconds are uh apart from um apart from u Rajasthan and Maharashtra as you know 27:10 27 minutes, 10 seconds that we have won a u a limestone block in Assan. 27:15 27 minutes, 15 seconds again that's a completely new territory for us. So that is one new area which we will start uh in maybe end of this year. 27:24 27 minutes, 24 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 27:32 27 minutes, 32 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. 27:43 27 minutes, 43 seconds Thank you so much for the love answer. 27:45 27 minutes, 45 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? 27:55 27 minutes, 55 seconds So inorganically we keep uh we keep evaluating but our focus right now is on 28:02 28 minutes, 2 seconds uh on green uh on organic development and green field expansion. Um that is our number one priority. 28:11 28 minutes, 11 seconds Sure. Thanks a lot. 28:13 28 minutes, 13 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 28:22 28 minutes, 22 seconds a time. You may join back the queue for follow-up questions. 28:26 28 minutes, 26 seconds We'll take our next question from the line of Jesa from Namora. Please go ahead. 28:33 28 minutes, 33 seconds Hello. Uh thank you for the opportunity. 28:35 28 minutes, 35 seconds So my first question is regarding the cost structure especially in the fourth quarter also we saw that the fixed cost 28:43 28 minutes, 43 seconds which is employed plus other cost has increased significantly y versus you know when we compare it to your peers 28:49 28 minutes, 49 seconds also. I I just uh wanted to understand uh while you say there was some you know vacation conflict uh that that impacted 28:57 28 minutes, 57 seconds the cost. However, the the conflict started towards the end of February and the packaging cost was also in the middle of March which impacted the 29:05 29 minutes, 5 seconds industry. I want to understand why you know among all your peers Abuja is seeing such a increase in you know the 29:14 29 minutes, 14 seconds its cost success and secondly uh in your presentation you've also also mentioned that the freight cost was high because 29:21 29 minutes, 21 seconds of some planned shutdowns if I'm not wrong in third quarter also you took planned shutdowns you know normally the industry takes shutdowns in the second 29:30 29 minutes, 30 seconds quarter so in quarter three and quarter four where the volume growth was really strong the management decided to take plant shutdowns which resulted in higher 29:37 29 minutes, 37 seconds cost. So I just want to understand what is the you know rational behind taking plan shutdowns in volume push quarters and why are you know Abuja's fixed cost is increasing way higher than its peers. 29:49 29 minutes, 49 seconds is my first question to the audience. 29:52 29 minutes, 52 seconds So Jasp uh I think uh uh when uh Rasi asked this and we have tried to explain 29:58 29 minutes, 58 seconds um uh so in terms of picking out on our cost at 4500 which I mentioned and from here you will see improvements but yeah 30:07 30 minutes, 7 seconds your question is in terms of uh compared to the competition why now few components which are relevant to my 30:16 30 minutes, 16 seconds business uh I mentioned about higher focus now on the branding advertisement uh to promote the u uh trade sales and 30:25 30 minutes, 25 seconds premium cement. Second is in terms of u higher repairs and maintenance cost and you're right that ideally one should do 30:33 30 minutes, 33 seconds it during the off uh of seasons like uh monsoons but not all the machines can be done uh during that period and uh there 30:42 30 minutes, 42 seconds have been few breakdowns also of the acquired assets of pennas and all. So under u uh under the planning and also 30:50 30 minutes, 50 seconds under out of planning you will do it. So therefore there have been those additional expenses of repairs and maintenance. Uh then in terms of uh the 31:00 31 minutes back cost which although yeah came it in the in the last week of February to the overall say full month of March. Uh when 31:08 31 minutes, 8 seconds you promote and sell more premium cement then there are also some additional costs of logistics and handling which also sips into uh to increase your cost. 31:17 31 minutes, 17 seconds I also mentioned to you uh the uh journey which we want to achieve in terms of uh improved uh uh heat uh 31:27 31 minutes, 27 seconds consumption. Uh it is still uh uh not coming in the range and therefore we still have a higher heat consumption and 31:35 31 minutes, 35 seconds I would say ballpark 3540 kilo calories uh minimum which we have to improve. uh again I will attribute to some of the 31:43 31 minutes, 43 seconds acquired assets actually when I look at the IITA of uh a muja and ACC minus of the acquired assets the iida is actually 31:51 31 minutes, 51 seconds higher by 70 80 rupees uh so it will be almost like 800 rupees u uh uh uh and 31:58 31 minutes, 58 seconds actually more when I normalize it but it is at least 800 rupees so uh I would say that the acquired assets still are not u 32:07 32 minutes, 7 seconds basically uh coming in the range to our desire levels and for which u I had mentioned that the first priority is 32:15 32 minutes, 15 seconds stabilize the overall operations achieve a good level of performance improvement. 32:21 32 minutes, 21 seconds Hence uh in the I think uh maybe couple of months uh we had taken the the entire 32:28 32 minutes, 28 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 32:38 32 minutes, 38 seconds improved volume improvement. This I think we did in somewhere like March itself right okay March itself now that 32:45 32 minutes, 45 seconds is like for example we want to showcase that yes some of these assets have taken time but now they are states they're in the state of readiness uh sooner that I 32:53 32 minutes, 53 seconds will take you take all of you to penna sets also but before that we took you to Marva now so so so the journey is known 33:02 33 minutes, 2 seconds the issues are known and uh therefore uh in my opening remarks also I mentioned about certain disappointments to us also 33:09 33 minutes, 9 seconds where We we think that 4500 is on a higher side and we are u uh we are basically in a position to bring it down 33:17 33 minutes, 17 seconds in coming quarters. So uh therefore like uh you will see uh this is pigged out and you will see an improvement prospectively from here. 33:27 33 minutes, 27 seconds Thank thank you for the detailed answer sir. Uh my next question is you know largely taking forward Naven's uh 33:34 33 minutes, 34 seconds question only. So you know first of all Abuja is the only company which has given such a bearish scenario for FI27 33:41 33 minutes, 41 seconds and I understand the rational that you have given behind it but you know with 5% industry growth and Abuja expecting 33:48 33 minutes, 48 seconds an 8% growth uh there are certain capacities which are coming I completely you know understand that but what is 33:55 33 minutes, 55 seconds your target utilization from the assets of Shangi Orient and Pena for FI27 34:02 34 minutes, 2 seconds and uh and I understand there are some challenges So will there be additional capex required uh to bring the acquired 34:09 34 minutes, 9 seconds asset to Abuja's uh set of standards? I just want to understand this. 34:15 34 minutes, 15 seconds Thank you Jaz. So like u Orient for example is operating at full capacity. 34:22 34 minutes, 22 seconds So far as u uh Sani is concerned uh I will uh uh peg myself at uh almost like 34:29 34 minutes, 29 seconds 65 to 70% and so far as u uh Penna is concerned I will consider uh around 55 34:38 34 minutes, 38 seconds uh to 60% in terms of the utilization factors and the existing assets of Ambuja and SEC I would uh peg it to 34:47 34 minutes, 47 seconds closer to around um uh 75 to 80%. So on a overall basis as an as a at the 34:55 34 minutes, 55 seconds console level uh average uh in the situation the scenario which I have mentioned to you I would say 70 75% uh 35:03 35 minutes, 3 seconds ballpark utilization uh for a and you're right I'm like uh we have we we anticipate this software demand and 35:11 35 minutes, 11 seconds therefore we would go with this uh belief but if for any surprises positive in the industry and uh which we would 35:17 35 minutes, 17 seconds all wish to uh this number will definitely look positive but as of now situation is uh softer 35:25 35 minutes, 25 seconds and sir any further capex uh to bring these assets to a muja standard. So as mentioned by Karan Vai uh the the 35:34 35 minutes, 34 seconds overall say disciplined approach of capex where we want to now uh set up uh in the uh high potential market which we 35:42 35 minutes, 42 seconds have now completely done a uh mapping where we have market leadership. So which we will uh uh we have so he has already indicated few of the assets in 35:51 35 minutes, 51 seconds in his nar narrative but uh progressively now for example let me first uh commission the existing assets 35:58 35 minutes, 58 seconds in hand which are ongoing basically this 10 million and come to you all with the stabilization and achievement of the capacities for them but passing quarters 36:07 36 minutes, 7 seconds then we will also highlight to you the capex program as its up. Sure. Mundra mentioned Mundra is very much now in the 36:16 36 minutes, 16 seconds in the in the pipeline and so are few which he mentioned. Thank you. Thank you so much. 36:25 36 minutes, 25 seconds We'll take our next question from the line of Manish Sumaya from Caner. Please go ahead. 36:32 36 minutes, 32 seconds Uh good evening and take 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 36:41 36 minutes, 41 seconds outlook but what I'm trying to reconcile is how should we reconcile between the 36:49 36 minutes, 49 seconds improvements that you're planning in fiscal 27 is that dependent how much of that is dependent on internal execution versus 36:58 36 minutes, 58 seconds external normalization maybe if you can just uh help us understand that I would say manage by uh thank you a 37:06 37 minutes, 6 seconds very a very good question. Um I would say that the external factors will affect most of the industry players. Therefore 37:14 37 minutes, 14 seconds I will give more weightages on the internal uh factors and uh the uh execution of the same uh which will uh 37:24 37 minutes, 24 seconds bring the overall uh differentiation and uh uh leadership uh leverage on that. So 37:31 37 minutes, 31 seconds that I would like I would put it in this manner. So, so Manish if I may uh just come here. uh current year I think if 37:39 37 minutes, 39 seconds you look at our performance uh uh you know we realize that uh where where where where the gaps are and uh and 37:48 37 minutes, 48 seconds that's exactly where we are hyperfocused on and improving on those performance and u you know based on what whatever 37:57 37 minutes, 57 seconds guidance uh we are giving uh this is 100% which is controllable uh uh which 38:04 38 minutes, 4 seconds is controllable by us and if you're not able to achieve the guidance. It's purely because of our internal execution 38:10 38 minutes, 10 seconds and not not any other factor and um uh and that's where that's where uh the 38:17 38 minutes, 17 seconds whole team uh is uh really focused on and delivering on on on the numbers now 38:23 38 minutes, 23 seconds that we are talking about and and we very and we're very confident that uh uh that 38:31 38 minutes, 31 seconds uh this year we we will be able to hit the numbers that we are talking about. 38:36 38 minutes, 36 seconds Yeah, thank you very much. Okay, the the other my second followup is on the premium products. Now they constitute about 35 to 36% of trade. 38:47 38 minutes, 47 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 38:54 38 minutes, 54 seconds maybe even beyond you know what's the upside to that uh 35 to 36%. 39:01 39 minutes, 1 second 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 39:09 39 minutes, 9 seconds what for example uh can be considered uh in terms of the share of premium cement as percentage of trade sales. 39:20 39 minutes, 20 seconds Okay wonderful thank you so much I'll get back in the queue. Thank you. 39:25 39 minutes, 25 seconds Thank you. We request participants to respect to one question at a time please. 39:31 39 minutes, 31 seconds We'll take our next question from the line of Pratik Kumar from Jeff. Please go ahead. 39:39 39 minutes, 39 seconds Yeah. Good evening. Uh my question is on cost again. Yeah. So um in the last third quarter con call uh which happened 39:47 39 minutes, 47 seconds like around start of the February management talked about uh uh like cost of 4,000 rupees. Yes, we talking about 39:55 39 minutes, 55 seconds 4,100 rupees, 4,000 rupees in January. We're talking about 4,100 rupees in exit of this 40:03 40 minutes, 3 seconds quarter. So, how the C quarter cost is 45,00 I'm unable to understand. Now, the question is on the balance sheet. Uh so, 40:11 40 minutes, 11 seconds your ACC's operating cash flows are negative, sharply negative for the year. 40:17 40 minutes, 17 seconds uh and uh your overall consolidated Amuja's uh cash flows uh also like negatively impacted by negative working 40:25 40 minutes, 25 seconds capital. Can you throw some light on this? Thank you. Uh thanks I will take the second question first in terms of 40:34 40 minutes, 34 seconds the ACC Ambuja if you see uh ACC has receal from Abuja under the MSA and uh 40:41 40 minutes, 41 seconds you also uh would be aware that we have taken shareholders approval in terms of the ICD wherein u uh uh uh this 40:49 40 minutes, 49 seconds receivables will get paid off. So like you will find in the in the coming quarter this will get knocked off with the ICD number one. So uh it's like as a 40:59 40 minutes, 59 seconds one uh console business under the MSH the receivables are therefore HC will find uh negative uh operating cash flow. 41:07 41 minutes, 7 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 41:15 41 minutes, 15 seconds when it comes to receivables these are under good control uh with the higher degree of trade sales and therefore on a 41:23 41 minutes, 23 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 41:32 41 minutes, 32 seconds the cost uh so Pratik I think u uh uh what we had envaged to what is the 41:40 41 minutes, 40 seconds reality yes there are differences because of the overall uh acquired asset situations and u uh many times uh those 41:49 41 minutes, 49 seconds anticipations uh uh for example have not worked upon and then suddenly the packing bag situation which have come up 41:57 41 minutes, 57 seconds and also for example when um Nam mentioned about depicting the 10% growth. Uh we also lost a good level of volume because of the packing bag issues 42:05 42 minutes, 5 seconds and all. So there are 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 say which 42:13 42 minutes, 13 seconds we have hit and from here for example as Kai also mentions that the uh numbers will be uh tapering down with every 42:21 42 minutes, 21 seconds passing quarter. Uh so visions I have already explained right from branding to repairs and maintenance to the higher 42:28 42 minutes, 28 seconds freight cost the higher lead for example the AGTS or the uh for example when it comes to IBIDA the lower government 42:36 42 minutes, 36 seconds incentives 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 42:45 42 minutes, 45 seconds exhausted some of the plants which were giving uh or having the incentives and third in some of the uh states we are 42:52 42 minutes, 52 seconds now acrewing on um incentive on um on uh virtual uh uh uh visibility basis basically certainty basis basically so 43:00 43 minutes that uh we don't want to have pending the long-term approvals and all so there are combination of these accounting 43:07 43 minutes, 7 seconds policies and um and u the the uh situation of uh some of the plants which have uh uh not matured to what we thought most of the acquired assets. 43:17 43 minutes, 17 seconds Yeah. Uh sure just one clarification you Yeah go ahead please. 43:27 43 minutes, 27 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 43:35 43 minutes, 35 seconds cost or a month cost or a last batch like what is that cost? we we we had uh basically hit it 4,100 for the month of 43:44 43 minutes, 44 seconds March uh uh Pratik but then um but as I said that except those the escalations of war for example almost 250 rupees 43:53 43 minutes, 53 seconds which which affected us so on a normalized basis I was paying 4100 for the month of March. 44:04 44 minutes, 4 seconds Sure. Okay. Thank you. I'll get back to you. Thank you. 44:08 44 minutes, 8 seconds Next question is from the line of Amar Singha from Nepal India AMC. Please go ahead. 44:15 44 minutes, 15 seconds Yeah. Uh hi gentlemen. Thanks for taking my question. Um just uh um my question is also following up with the question 44:23 44 minutes, 23 seconds uh on the cost front. Um so if I see on the first week of February when we had the last one call and if I quote u the 44:32 44 minutes, 32 seconds average cost for the quarter was 4,500 rupees along with the one off whereas we have exited December quarter well below 44:40 44 minutes, 40 seconds 4,000 rupees of cost. uh that was the commentary on the first week of February. I understand we do carry a good amount of inventory as well at 44:49 44 minutes, 49 seconds least at least a month on on that account for most of the uh raw material and import on that part. Uh furthermore 44:59 44 minutes, 59 seconds we had some oneoff in the Q3 we have uh increased or enhanced our premium uh 45:07 45 minutes, 7 seconds contribution in this quarter pricing was slightly better than the previous quarter seasonally this is a better quarter this logically contribute 45:16 45 minutes, 16 seconds towards the better profitability um despite everything and also uh with the just previous answer that mark month 45:24 45 minutes, 24 seconds was 4100 uh uh range cost trying to understand how should add one 45:32 45 minutes, 32 seconds add up the entire cost for the quarter on the light of the previous commentary of December 4,000 45:39 45 minutes, 39 seconds uh that was given on first of February with the inventory which generally the people carry along with your currently 45:47 45 minutes, 47 seconds on the March 4 to 100 average cost uh also the reasons which are mentioned 45:54 45 minutes, 54 seconds most of them are externally any micro factors this should impact every player or most of the players in the in the 46:02 46 minutes, 2 seconds industry. So far whatever results we have seen from the large guys or the smaller guys or size uh the factors are 46:11 46 minutes, 11 seconds not affecting too much or in a totality uh in this quarters in four just wanted 46:19 46 minutes, 19 seconds to understand how should we reconcile your last commentary along with the exact numbers reported along with the 46:27 46 minutes, 27 seconds peer uh uh peers who have reported numbers then how can we look been our outlook on that just help us like understand. Thank you very much. 46:39 46 minutes, 39 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 you will see in some of our acquired 46:47 46 minutes, 47 seconds assets of Pena for example more so especially and as you know Pena is uh uh geographically uh more uh in in south 46:56 46 minutes, 56 seconds and uh if you if you actually look at the numbers and south for example has been one of the most affected geography for the March quarter. Therefore, we 47:04 47 minutes, 4 seconds have taken some of the machines on shutdown and basically there have been couple of breakdowns also and therefore 47:11 47 minutes, 11 seconds which has increased my higher repairs and maintenance for the uh quarter of March. Number one. Number two uh in 47:19 47 minutes, 19 seconds terms of uh some of the acceleration which we have to give uh to our u uh sales and branding and advertisement is 47:27 47 minutes, 27 seconds what we have given and the results of the same you will uh we will get actually as an investment on u on our 47:34 47 minutes, 34 seconds supply chain but this will more be accounted as a operating cost. So that is where for example the uh branding and 47:42 47 minutes, 42 seconds advertisement costs are higher. uh then uh uh of course for the month of March there have been this abnormal cost for 47:49 47 minutes, 49 seconds the packing for example and uh we have also uh seen a higher fuel cost and 47:57 47 minutes, 57 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 is the the heat 48:06 48 minutes, 6 seconds consumption is also higher so those also for example technically the technical KPIs have uh have got affected Now 48:15 48 minutes, 15 seconds that was when we also in December our quarter was at 4500 rupees cost uh for the for the quarter 4500 and uh March 48:24 48 minutes, 24 seconds also for example we are almost at say 4500. Yeah. So I think look it in this manner that uh uh certain planned uh 48:32 48 minutes, 32 seconds movements for the March could not fractify or we could not also fulfill and therefore we have uh basically uh uh 48:41 48 minutes, 41 seconds been at the same level to what we were in December 25. Thank you. 48:48 48 minutes, 48 seconds So just I understand that part of 4500 versus 4500. I'm just trying to reconcile the commentary quarter of 48:57 48 minutes, 57 seconds 4,000 exit in December. This is a sudden commentary of 4,100 for the month of March. Uh just because one month in 49:05 49 minutes, 5 seconds February uh the I'm just trying to understand how the entire cost shoots up because of that when we move that 49:13 49 minutes, 13 seconds inventory gets carried on for couple of months which is there. uh I understand I and I 49:20 49 minutes, 20 seconds will appreciate if you can share us uh quantification of various cost item large cost item along with the benefits 49:28 49 minutes, 28 seconds also which is coming uh from exit of 4,000 rupees to now exit of uh in March may not be now but later on also we can 49:37 49 minutes, 37 seconds release that so I know I think because the commentary the commentary I think uh again even if you remember the last call uh I had 49:45 49 minutes, 45 seconds always said that the exit month of March. So while you are considering for the whole March quarter of 26, no that 49:53 49 minutes, 53 seconds was not the the commentary was more about our uh aspiration and our uh plan to uh get uh closer to 4,000 by month of 50:04 50 minutes, 4 seconds March. Now uh basically uh therefore while the average would still be higher than not at 4,000 therefore please don't 50:11 50 minutes, 11 seconds don't mistaken with 4,000 as average for the March quarter. uh number one. Number two uh of course like uh therefore I was 50:20 50 minutes, 20 seconds uh highlighting that month of March for example barring this uh aberration of the uh west Asia prices and uh you might 50:28 50 minutes, 28 seconds say that we would have got little bit affected more compared to degree as compared to others could be but yes we 50:35 50 minutes, 35 seconds have uh uh we got affected with the overall uh packing bags and all u and therefore the pressure of volumes and 50:44 50 minutes, 44 seconds therefore the pressure on um sales and hence the higher advertisement, branding or sales promotion have been 50:51 50 minutes, 51 seconds there. So therefore like uh uh we unfortunately could not uh come below 50:58 50 minutes, 58 seconds 4500 for this uh uh entire quarter of March 26. Thank you. 51:06 51 minutes, 6 seconds Yeah. Yeah. 51:07 51 minutes, 7 seconds Amber, I request you to join back the please. No worries. Thank you. 51:14 51 minutes, 14 seconds We'll take our next question from the line of Pulkit Partney from Goldman Sachs. Please go ahead. 51:20 51 minutes, 20 seconds Uh sir, thank you for taking my questions. 51:22 51 minutes, 22 seconds I have a couple of them. One is sir, for the Sanangei plant which is operating at 57% utilization, how important is for 51:30 51 minutes, 30 seconds the Nalia railway line to be ready and how far do you see Nalia being connected and ramp up in volumes at at Sani? 51:40 51 minutes, 40 seconds That's question number one, sir. 51:43 51 minutes, 43 seconds So, Pulkit uh our base model is not linked to uh Nadiad railway line. Uh it 51:50 51 minutes, 50 seconds is more with the overall our marine infra for example. And therefore u uh as you would know that we have already 51:58 51 minutes, 58 seconds ordered seven vessels uh which will be delivered u uh in a a progressive manner starting from next year. So that is what 52:06 52 minutes, 6 seconds for example Sani will bring the strength and then otherwise we are counting on the road movement from Sani. Uh the 52:14 52 minutes, 14 seconds railway line only will be an add-on but not being considered in the base model. 52:20 52 minutes, 20 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? 52:27 52 minutes, 27 seconds Yes. Yes. for right now although in Sani we don't have a ramp up per se of capacity expansion but yes ramp up of the existing capacity the utilization 52:35 52 minutes, 35 seconds part correct abs absolutely sir so my second question is is it fair to assume that as and when there is a final resolution on the JP 52:43 52 minutes, 43 seconds assets that those assets would come uh to to uh us or is there a possibility 52:50 52 minutes, 50 seconds given that we already have our own organic growth plan uh a lot of work to do on on increasing capacity utilization 52:59 52 minutes, 59 seconds that we could also not be considering uh having those assets. How should we look at it? 53:05 53 minutes, 5 seconds So bulkit I will still consider that for JP uh the RP is uh another listed company and therefore it would be 53:14 53 minutes, 14 seconds inappropriate from my side to answer anything on that. Uh but as things progress uh whatever development happens we'll come to know. 53:25 53 minutes, 25 seconds Thank you. 53:26 53 minutes, 26 seconds We'll take our next question from the line of Pinatin from HMBC. Please go ahead. 53:32 53 minutes, 32 seconds Uh thank you. So I have two questions. Uh my first question is um given Abuja is the fourth company to have reported 53:38 53 minutes, 38 seconds earnings uh and the Aida Pton is uh is the lowest with uh high cost inflation. 53:44 53 minutes, 44 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 53:52 53 minutes, 52 seconds cost inflation or can we expect further margin deterioration uh with the inability to raise cement prices? 54:01 54 minutes, 1 second So bakin u um I would say that uh given the uh scenario of demand will be very 54:08 54 minutes, 8 seconds important to uh basically see the price uh price uh being passed on to the uh to 54:15 54 minutes, 15 seconds the customers and as of now I anticipate uh the the overall demand looks to be 54:23 54 minutes, 23 seconds for right now when I look at say April and uh now in May uh bit little subdued 54:30 54 minutes, 30 seconds and soft. Therefore uh uh therefore for example when you attempt for say X uh I 54:37 54 minutes, 37 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 54:45 54 minutes, 45 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 54:54 54 minutes, 54 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 55:02 55 minutes, 2 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. 55:14 55 minutes, 14 seconds U 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 55:23 55 minutes, 23 seconds guidance uh where you move away from cost to AIDSA person uh you know by FI28 uh given where your AIDA pton is today 55:31 55 minutes, 31 seconds and over the next two years where do you see the AIDA port reach uh and what are the building blocks of that margins uh what kind of price increases what kind 55:38 55 minutes, 38 seconds of cost savings what kind of turnaround do you want to see or do you expect in the next two So pinakin u I think u it will be 55:48 55 minutes, 48 seconds herculent task for any industry person to give any estimate of iida per turn at this stage. I would rather uh still uh 55:56 55 minutes, 56 seconds continue my my efforts on cost and therefore for example uh one thing is like 4500 rupees a turn uh let us say it 56:05 56 minutes, 5 seconds picks out and then it starts coming down from here uh to what journey we will go I think progressively we'll keep you posted uh and especially in next two 56:14 56 minutes, 14 seconds three quarters as things looks more brighter and clear but for right now uh cost remains the key focus area 56:21 56 minutes, 21 seconds obviously like when you focus on trade sales and only focus on premiums in this will keep giving you more mitigations. 56:28 56 minutes, 28 seconds Uh but I think uh any guidance on IDA will be difficult at this stage. But but let me just add that cost we are looking 56:34 56 minutes, 34 seconds at roughly to 250 rupees a ton reduction this year and then another reduction of 250 rupees next year as well 56:42 56 minutes, 42 seconds that that is the minimum reduction that we are looking at. Okay. Thank you. Thank you very much. Thank you. 56:50 56 minutes, 50 seconds Participants are requested to do requested to restrict to one question at a time. Please. 56:57 56 minutes, 57 seconds Next question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead. 57:02 57 minutes, 2 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 turn of cost 57:09 57 minutes, 9 seconds improvement over the next couple of years uh are we shying away from the earlier target of rupees 3650 that you 57:17 57 minutes, 17 seconds had shared earlier? That is my question number one. 57:21 57 minutes, 21 seconds So we are not shying away from our target. I think uh uh as we as we told earlier also are we need to focus on our 57:30 57 minutes, 30 seconds execution. We we still have there are multiple steps on the cost that we need to take uh between manufacturing between 57:37 57 minutes, 37 seconds raw material and between logistics. Uh and we are confident that uh we we will be able to achieve that number. I think 57:45 57 minutes, 45 seconds it's just we're 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 57:53 57 minutes, 53 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 58:01 58 minutes, 1 second 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 58:08 58 minutes, 8 seconds uh 500 is what we can commit right now for the next two years. 58:13 58 minutes, 13 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 58:22 58 minutes, 22 seconds away from 155 million ton capacity. So just a clarification that um the company had earlier guided for 15 million t of 58:29 58 minutes, 29 seconds deep bottlenecking exercises across assets. So does that stay or there will be some change on that as well? 58:36 58 minutes, 36 seconds So so that those those still continues. 58:38 58 minutes, 38 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. 58:48 58 minutes, 48 seconds Got it. Thank you. One final question. I remember in second quarter and third quarter the company was already accelerating your branding and 58:56 58 minutes, 56 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. 59:04 59 minutes, 4 seconds Thank you. 59:06 59 minutes, 6 seconds So uh for the full fiscal year uh 26 we are closer to almost like uh almost like 59:14 59 minutes, 14 seconds u uh 700 rupees a turn basically uh 70 rupees a turn basically. Yeah 70 59:22 59 minutes, 22 seconds rupees a turn basically uh on the full year basis of 26. Thank you. 59:30 59 minutes, 30 seconds Next question is from the line of ret invest. Please go ahead. Yeah, thanks for the opportunity. One question for Karan by one for Vinoi. Uh uh Karan by 59:39 59 minutes, 39 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 59:48 59 minutes, 48 seconds for next one year and uh how does SFA fit in in overall scheme of things after the reset? Sorry, can you repeat that 59:56 59 minutes, 56 seconds question? I I couldn't hear you properly. 59:58 59 minutes, 58 seconds Yeah. So the first question is uh what prompted us for a reset right now? 1:00:03 1 hour, 3 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? 1:00:14 1 hour, 14 seconds Yeah, so I think why why the reset? I mean um it's it's quite evident our performance has not been great. Uh we've 1:00:21 1 hour, 21 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 1:00:30 1 hour, 30 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 1:00:39 1 hour, 39 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 1:00:49 1 hour, 49 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 1:00:57 1 hour, 57 seconds plants delivering to the to the respective market. Second discipline is on uh uh on on on trade versus non-trade 1:01:08 1 hour, 1 minute, 8 seconds uh sales. Uh number three is on our uh raw material consumption uh reducing our 1:01:15 1 hour, 1 minute, 15 seconds cost on raw material as well as on the on the electricity front uh energy consumption. 1:01:22 1 hour, 1 minute, 22 seconds uh and and uh number four is uh improving our uh improving our uh uh I I 1:01:31 1 hour, 1 minute, 31 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 1:01:38 1 hour, 1 minute, 38 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 1:01:46 1 hour, 1 minute, 46 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 1:01:54 1 hour, 1 minute, 54 seconds looking at until the time we are not able to deliver on what we are promising um I don't think so it makes sense to to 1:02:01 1 hour, 2 minutes, 1 second make more uh to make more uh capital investment because you don't get the returns on those on those capital invested as well. 1:02:12 1 hour, 2 minutes, 12 seconds And on you had a second question. 1:02:16 1 hour, 2 minutes, 16 seconds Yeah. On SLA uh service agreements I think for a few of the plans that we have tied up with how how should we look at that on overall? 1:02:24 1 hour, 2 minutes, 24 seconds Yeah, sure. So SLA based um uh contracts this is something that uh uh is is part 1:02:32 1 hour, 2 minutes, 32 seconds of uh part part of these initiatives because we do believe that what we need to what we need our teams to focus on and what uh where they where do they 1:02:40 1 hour, 2 minutes, 40 seconds need to put their energy on. uh we do believe that there are uh at least in India now there are enough competent uh 1:02:48 1 hour, 2 minutes, 48 seconds partners out there who can who can run uh who can run the plants uh uh at the at the efficiency level that we we would 1:02:57 1 hour, 2 minutes, 57 seconds aspire to and and that's how uh that's how we are looking at and second obviously given the uh history of Abuja 1:03:06 1 hour, 3 minutes, 6 seconds and ACC I think uh uh the SLA partners help us in terms of cleaning up all the 1:03:13 1 hour, 3 minutes, 13 seconds past uh you know union issues and all of that. So so so from that perspective it really helps us uh in terms of reducing our cost and improving our efficiency. 1:03:25 1 hour, 3 minutes, 25 seconds Thank you. Uh thank you. Thank you so much. 1:03:30 1 hour, 3 minutes, 30 seconds Next question is from the line of Ash Jen from McQuary. Please go ahead. 1:03:35 1 hour, 3 minutes, 35 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 1:03:43 1 hour, 3 minutes, 43 seconds that context you know I just want to understand this 65 to 70 billion rupees of annual capex uh for the next two 1:03:51 1 hour, 3 minutes, 51 seconds years uh that we're talking about can you break it down uh ballpark in terms of uh you know growth versus cost 1:03:59 1 hour, 3 minutes, 59 seconds efficiency versus any other initiative that it includes yes so so roughly roughly 4 billion is 1:04:06 1 hour, 4 minutes, 6 seconds what uh is already the capex which is already under execution uh and it is implementation of that uh 1:04:14 1 hour, 4 minutes, 14 seconds which includes uh which includes uh capacity which includes uh WHS which 1:04:20 1 hour, 4 minutes, 20 seconds includes your fly uh uh transportation system that we need and the balance is 1:04:27 1 hour, 4 minutes, 27 seconds uh is uh uh I would say uh debottlenecking plus uh uh plus uh maintenance kept Yeah. 1:04:39 1 hour, 4 minutes, 39 seconds So, yeah. Yeah. So, yeah. Basically, I hope that answers your question. Yeah. 1:04:47 1 hour, 4 minutes, 47 seconds Ash. Yeah. Yeah. Thank you. 1:04:51 1 hour, 4 minutes, 51 seconds Next question is from the line of Amit Murala from Access Capital. Please go ahead. Uh, hi. Uh, thanks for the opportunity. 1:04:59 1 hour, 4 minutes, 59 seconds Uh I just wanted to understand more from a strategy perspective uh like uh when Adani had acquired these cement assets 1:05:08 1 hour, 5 minutes, 8 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 1:05:17 1 hour, 5 minutes, 17 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 your 1:05:24 1 hour, 5 minutes, 24 seconds thought that was there at the time of acquisition? 1:05:28 1 hour, 5 minutes, 28 seconds So uh uh we'll be honest with you uh yes partially there is a reset uh we are not 1:05:36 1 hour, 5 minutes, 36 seconds moving away from the target yes we moving away from the timeline uh that is to do with the uh we we know that we are 1:05:44 1 hour, 5 minutes, 44 seconds not delivering uh in terms of what we have uh what we had committed and so it definitely makes sense to step back to 1:05:53 1 hour, 5 minutes, 53 seconds look back and to see where we are going wrong and to course correct and uh and then to and then then that's 1:06:00 1 hour, 6 minutes 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 1:06:08 1 hour, 6 minutes, 8 seconds the time frame that we sure thanks and is there a target IR in mind when you doing your capeex program now 1:06:16 1 hour, 6 minutes, 16 seconds it's it's uh cex I mean the project IR has to be 18% you this is all equity money so you have to look at uh equity return like anybody Sure. 1:06:29 1 hour, 6 minutes, 29 seconds Thanks a lot. 1:06:30 1 hour, 6 minutes, 30 seconds Thank you. Next question is from the line of Rajes Ravi from HDFC Securities. Please go ahead. 1:06:39 1 hour, 6 minutes, 39 seconds Hi, good evening. May I order? Yes, Rajes, please go ahead. 1:06:43 1 hour, 6 minutes, 43 seconds Yeah, thanks for the opportunity and uh happy to know that the management focus is more graded on capex and also focused 1:06:51 1 hour, 6 minutes, 51 seconds on uh you know cap cost execution. My only question while you have been candid on the uh you know the guidance uh this 1:07:00 1 hour, 7 minutes when you say 250 rupees cost reduction you're looking for FY27 over FYI 26 and at the same time uh from 1:07:08 1 hour, 7 minutes, 8 seconds exit Q4 we are seeing around 250 to 300 rupees cost inflation uh because of the packaging and fuel rise increase. So is 1:07:17 1 hour, 7 minutes, 17 seconds this 250 net off or you know net net we would see 300 of rupees increase and 250 decline. So from current level we would 1:07:26 1 hour, 7 minutes, 26 seconds still see our cost going up by 50 to 100 rupees in Q1 or in FY27. 1:07:33 1 hour, 7 minutes, 33 seconds So Rajes uh uh thank you. Uh what we would uh put it is uh 4500 is the peak 1:07:41 1 hour, 7 minutes, 41 seconds and uh this 250 uh reduction is from here. So essentially then it would mean 1:07:48 1 hour, 7 minutes, 48 seconds to 4250 as a target uh for 27 right this is factoring in the cost inflation that we have already in place. 1:07:56 1 hour, 7 minutes, 56 seconds Yes that is true. 1:07:59 1 hour, 7 minutes, 59 seconds Okay and in Q1 also you're looking at similar cost structure in Q1 versus Q Q4 versus Q1 what sort of cost 1:08:07 1 hour, 8 minutes, 7 seconds you are looking at basing the current cost inflation and your cost savings. So right now uh uh for example the headwind 1:08:16 1 hour, 8 minutes, 16 seconds still continues and therefore uh it it it could be flattish for Q1 and uh as 1:08:23 1 hour, 8 minutes, 23 seconds things uh uh comes out uh better that it will start tapering. 1:08:28 1 hour, 8 minutes, 28 seconds So sorry for the flattish means your current cost which is some of the cost inflation is faced in Q4 you know the 1:08:36 1 hour, 8 minutes, 36 seconds energy and the packaging almost like 4500 I would peg it for say Q1 and then from there uh we will uh 1:08:45 1 hour, 8 minutes, 45 seconds have the reduction journey continue and uh for the year therefore we are targeting to have a reduction of 250 rupees 1:08:52 1 hour, 8 minutes, 52 seconds right right and on the non-pore working capital if I look at your core working capital has come down year on from 30 days to 20 days but if I look at 1:09:01 1 hour, 9 minutes, 1 second your nonpor working capital X cash that seems to have gone up significantly so is there any strategic reasons from all 1:09:08 1 hour, 9 minutes, 8 seconds 14 days it has now gone up to 49 days you know uh that is where your total non-cast working capital seems to have shot up significantly 1:09:17 1 hour, 9 minutes, 17 seconds uh you know from 30500 that is therefore like for example some of the uh some of the point which I 1:09:24 1 hour, 9 minutes, 24 seconds mentioned that on certain incentives and all now we will looking to book it on a actual basis when received then the actual basis for 1:09:32 1 hour, 9 minutes, 32 seconds example so that this non-core working capital or of b of operating working capital can be controlled uh second is 1:09:40 1 hour, 9 minutes, 40 seconds uh I think some of these are uh which you are referring to could be purely uh accounting u uh working capital so uh 1:09:48 1 hour, 9 minutes, 48 seconds maybe uh separately we can connect but uh generally uh the core working capital as you also mentioned has come down uh 1:09:56 1 hour, 9 minutes, 56 seconds and that efficiency of working capital will continue. uh which specific uh nonpore you are referring to for example 1:10:03 1 hour, 10 minutes, 3 seconds uh you can u connect to me offline and sure and two clinker unit which you just 1:10:12 1 hour, 10 minutes, 12 seconds two clinker plants which you're looking forward to one was mundra not clinker but quasi clinker and what was the other beyond what is getting commission right 1:10:20 1 hour, 10 minutes, 20 seconds now so two the the ones which I mentioned was one was u uh so in our 73 for 1:10:28 1 hour, 10 minutes, 28 seconds example the the 4 million and just to correct what Rashi asked me the first question my current capacity say 69 and 1:10:36 1 hour, 10 minutes, 36 seconds this 4 million turn will have one at Penna Jpur 2 million and 2 million at Marata uh that that would be like 73 now 1:10:44 1 hour, 10 minutes, 44 seconds on top of it uh the upcoming Mundra will be another uh 2 million of clinko uh so 1:10:53 1 hour, 10 minutes, 53 seconds that will be over and above this 4 million which I mentioned and then the Assam one which will be another uh 2 1:11:00 1 hour, 11 minutes million. So that will be pair of additional new assets and that would actually take you 3 years from now. 1:11:07 1 hour, 11 minutes, 7 seconds Uh that's let us say 24 to 28 years. 28 months is what will be your target. 1:11:13 1 hour, 11 minutes, 13 seconds Yes, that's all from my side. Thank you and all the thank you. 1:11:18 1 hour, 11 minutes, 18 seconds Thank you. Next question is from the line of Shraan Sha from Dollar Capital. Please go ahead. 1:11:24 1 hour, 11 minutes, 24 seconds Yeah. Uh thank you. Uh sir just to uh clarify this uh 250 rupees uh cost 1:11:31 1 hour, 11 minutes, 31 seconds reduction this is on a full year average FI27 that we are seeing. Yeah. So so so 1:11:38 1 hour, 11 minutes, 38 seconds thanks S. This is u for the full year FI27 uh as a average and therefore for 1:11:46 1 hour, 11 minutes, 46 seconds example when I said that June quarter will be flat from the March quarter then the degree of acceleration will have to 1:11:54 1 hour, 11 minutes, 54 seconds be more for the red three quarter so you're right the 250 will be average for the year got it and secondh when you 1:12:02 1 hour, 12 minutes, 2 seconds mention about the prices was it 10 rupees and the 15 20 rupees hike that you mentioned This was for the 1:12:11 1 hour, 12 minutes, 11 seconds April you are wanted to say or this is for March. So currently on an average from the exit of March have the prices 1:12:20 1 hour, 12 minutes, 20 seconds for us have have increased by 10 odd rupees that's what we are trying to say. 1:12:26 1 hour, 12 minutes, 26 seconds Uh yes basically I was hinting on that only uh so April over say March as a trend for the high cost. 1:12:36 1 hour, 12 minutes, 36 seconds Okay. And lastly for full year FR26 RNC bid in Q4 you mentioned 102 K but for full year FR26 what could be the number? 1:12:47 1 hour, 12 minutes, 47 seconds Uh just I have to just uh uh dig on this number. So full year RMX IITA you're asking right? 1:12:55 1 hour, 12 minutes, 55 seconds Yes sir. 1:12:56 1 hour, 12 minutes, 56 seconds Okay. Uh around 300 CR. So cool is number of standards here basically for the FI26. 1:13:08 1 hour, 13 minutes, 8 seconds Yeah, got it sir. Thank you and hope we will be achieving our cost reduction targets and maybe uh uh revisiting and 1:13:16 1 hour, 13 minutes, 16 seconds then upgrading the uh uh the original target. Thank you. Yes sir. 1:13:23 1 hour, 13 minutes, 23 seconds Thank you. Next question is from the line of Ra Maheshwari from Equir Securities. Please go ahead. 1:13:30 1 hour, 13 minutes, 30 seconds Yeah. Hi sir, good afternoon. So just one question from the capeex side. Our capex is continuously getting delayed as 1:13:38 1 hour, 13 minutes, 38 seconds a adani standard. We are known for a pro capex and the very fast execution. But at the cement side we are continuously 1:13:46 1 hour, 13 minutes, 46 seconds getting delayed. At the especially light maratha plant we have we have already delayed plus our earlier plant also got got delayed for um this one chhattisgar. 1:13:56 1 hour, 13 minutes, 56 seconds What is the issue behind the contin and the continuously we are getting some breakdowns at our bigger plants. Uh is it the maintenance related issue or what 1:14:04 1 hour, 14 minutes, 4 seconds we are facing currently right now? So you're right your observation is right that cipex our capeex has not been uh up 1:14:13 1 hour, 14 minutes, 13 seconds to the mark and that's one of the reasons why uh we are we are pausing and correcting ourself and we want to first 1:14:20 1 hour, 14 minutes, 20 seconds complete our uh projects that we have taken in our hand before we start any new new new projects. One of the main 1:14:29 1 hour, 14 minutes, 29 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 1:14:38 1 hour, 14 minutes, 38 seconds I think uh one is uh we did not choose the right contractor uh when execute for 1:14:45 1 hour, 14 minutes, 45 seconds for execution. Number two is uh you know we started these projects when we acquired Abuja and ACC and at that time 1:14:53 1 hour, 14 minutes, 53 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 1:15:01 1 hour, 15 minutes, 1 second be able to uh able to complete these projects in the timeline that were given. And number three is a lot of these projects were started without uh 1:15:10 1 hour, 15 minutes, 10 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 1:15:18 1 hour, 15 minutes, 18 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 1:15:26 1 hour, 15 minutes, 26 seconds that's where uh you are but you're right that that's a correct observation that uh we've not been uh able to deliver 1:15:33 1 hour, 15 minutes, 33 seconds projects uh in the stipulated time. Uh number two I think the uh breakdown I would say it is predominantly in the 1:15:40 1 hour, 15 minutes, 40 seconds acquisition assets where we have seen u uh major breakdowns happening especially penna and sani uh and that's where the 1:15:48 1 hour, 15 minutes, 48 seconds problem problem area has been for us and that's where the team is focused on in terms of improving the uh improving the 1:15:56 1 hour, 15 minutes, 56 seconds reliability of the plants and uh and that's one of the reasons why uh you are seeing a higher R&M cost uh in this here 1:16:05 1 hour, 16 minutes, 5 seconds uh partially because a lot of the uh repairs and maintenance which was uh which was supposed to be done was not 1:16:13 1 hour, 16 minutes, 13 seconds done and uh which which is why we are uh why one of the reasons for this uh breakdown as well. 1:16:21 1 hour, 16 minutes, 21 seconds Thank you. Thank you. 1:16:23 1 hour, 16 minutes, 23 seconds I request you to join back please as we have other participants waiting for their turn. Thank you. 1:16:32 1 hour, 16 minutes, 32 seconds Next question is from the line of Harsh Mittal from MK Global. Please go ahead. 1:16:37 1 hour, 16 minutes, 37 seconds Yeah, good evening. Thank you for the opportunity. So my first question is that in your pursuit to focus on premiumization 1:16:44 1 hour, 16 minutes, 44 seconds uh what is the current average gap between Tambuja brands uh versus the nearest competitor currently and what is 1:16:54 1 hour, 16 minutes, 54 seconds the target to narrow it further is my first question. 1:16:59 1 hour, 16 minutes, 59 seconds So uh you are referring to premium cement and uh I can highlight that the gap between my base product and the 1:17:08 1 hour, 17 minutes, 8 seconds premium cement product is closer to let us say 50 55 rupees for the super premium and 2025 rupees for the premium 1:17:15 1 hour, 17 minutes, 15 seconds one. I think that was like first then second your question is about the gap between our price and compared to that 1:17:23 1 hour, 17 minutes, 23 seconds competition. I think see everyone u uh uh looks to his price better than others and therefore every every time when the 1:17:31 1 hour, 17 minutes, 31 seconds industry people try and compare there is always different opinions. Uh I would say that uh the u the uh uh the pan 1:17:39 1 hour, 17 minutes, 39 seconds India players like us and uh uh basically the other player number one ultra trade I think the prices are more or less in the similar range in few 1:17:47 1 hour, 17 minutes, 47 seconds districts 5 10 rupees here and there either they are higher or we are lower or whatever reverse way but uh that's 1:17:54 1 hour, 17 minutes, 54 seconds how the trend has been and that is also reflected in the overall say NSP of the quarter which is close to each other for the number one and number two. 1:18:04 1 hour, 18 minutes, 4 seconds Sure. Thank you Harish. I request you to join back please as we have participants waiting for their turn. 1:18:10 1 hour, 18 minutes, 10 seconds Thank you. Next question is from the line of Satya Jen from Ambbit Capital. Please go ahead. 1:18:17 1 hour, 18 minutes, 17 seconds Hi thank you. U this question is for current. Just want to understand um the comment u you made about um 1:18:25 1 hour, 18 minutes, 25 seconds recalibrating capacities that earlier um the capacities were not in the right location. Now the capacities are in the 1:18:32 1 hour, 18 minutes, 32 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 1:18:41 1 hour, 18 minutes, 41 seconds just discuss um where is this recalibration coming from in terms of capacities? 1:18:47 1 hour, 18 minutes, 47 seconds No. So uh the recalibration is coming uh basically you know especially where we have the integrated units uh those are 1:18:56 1 hour, 18 minutes, 56 seconds the locations where we are re reccalibrating because uh uh we find that the grinding units uh uh the the 1:19:04 1 hour, 19 minutes, 4 seconds operating cost the logistics cost one of the reasons for the logistics cost being so high compared to competition is 1:19:11 1 hour, 19 minutes, 11 seconds because uh uh the the the in distance traveled by the integrated units is quite higher than than what uh what it 1:19:20 1 hour, 19 minutes, 20 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 1:19:27 1 hour, 19 minutes, 27 seconds uh in lot of these places and moving them closer to the market. So that is the reccalibration we are looking at. Uh I don't think we are looking at 1:19:34 1 hour, 19 minutes, 34 seconds recalibration of uh let's say units. Uh the second is uh uh via uh we sangi is predominantly a uh plinker plus cement. 1:19:47 1 hour, 19 minutes, 47 seconds Uh we are moving towards in the next years you will see sani moving uh predominantly into plinker and you will see new capacities coming up on the 1:19:55 1 hour, 19 minutes, 55 seconds coastal coastal region of Gujarat. uh and the H line 2 is one of the classic classic examples of of that where we 1:20:03 1 hour, 20 minutes, 3 seconds would look at Sandi supplying clinker and uh moving and cement being supplied from these. Uh so some of these 1:20:11 1 hour, 20 minutes, 11 seconds recalibration is happening majority of the recalibration is happening in the north uh UP and Bihas region and uh and 1:20:19 1 hour, 20 minutes, 19 seconds southern Gujarat southern Gujad and Maharashtra. 1:20:23 1 hour, 20 minutes, 23 seconds So this is not um something ACC specific because I believe ACC had more integrated units but you're mentioning 1:20:30 1 hour, 20 minutes, 30 seconds it's both ACC and Abuja. It's ACC and Abuja both both both of them had issues. 1:20:36 1 hour, 20 minutes, 36 seconds So I'll give you example like uh today we move we supply our Bihar market through Chhattisgarh 1:20:43 1 hour, 20 minutes, 43 seconds uh and in that and though we get the IDA but uh it is not the optimal movement of the of the cement uh that we are seeing. 1:20:52 1 hour, 20 minutes, 52 seconds So, so that's where 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. 1:21:03 1 hour, 21 minutes, 3 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. 1:21:13 1 hour, 21 minutes, 13 seconds Over to you sir. 1:21:14 1 hour, 21 minutes, 14 seconds Yeah. Thank you sai for joining the call and sharing your insight. Thank you all. 1:21:19 1 hour, 21 minutes, 19 seconds I trust most questions have been answered. You have my contact number. Please feel free to call me. Thank you. 1:21:24 1 hour, 21 minutes, 24 seconds Thank you. On behalf of JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.