Birla Corporation Ltd — Q4 FY26

Birla Corporation Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LK6orj0cZGs Published: 2 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Bila Corporation Limited Q4 and FY26 earnings conference call 0:08 8 seconds hosted by HDFC Securities Limited. As a reminder, all participant lines will be on listenonly mode and there will be an 0:15 15 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:22 22 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference 0:31 31 seconds over to Mr. Rajesh Kumar Ravi from HDFC Securities. Thank you and over to you. 0:37 37 seconds Thank you Hashurri. Uh good day everyone on behalf of HDFC Securities. I welcome 0:44 44 seconds you all to BLA cops corporations Q4 and FY26 earnings call. The BLAP manage will 0:52 52 seconds be represented by Mr. Sandep go MD and CEO and Mr. Adita Sarogi group CFO. I now hand over the call to the management 1:01 1 minute, 1 second for their opening remarks which will be followed by Q&A. Over to you Sandep sir. 1:08 1 minute, 8 seconds Very uh good morning uh or good afternoon to all of you. Uh thank you for joining in such numbers on a Monday 1:17 1 minute, 17 seconds morning. uh we know Mondays are busy days and uh lots of activities have happened around the country, lots of 1:24 1 minute, 24 seconds announcement. So uh we don't want to uh uh take too much of your time in today's 1:31 1 minute, 31 seconds call. Most of our um uh uh you know statements have been are contained in the press release which 1:39 1 minute, 39 seconds you have seen and which I find has been also captured by many of the analysts. 1:45 1 minute, 45 seconds uh so we will uh dive straight into uh some of the operating 1:52 1 minute, 52 seconds uh parameters and then uh get into your question. So this is Sep Kh managing 1:58 1 minute, 58 seconds director um cooperation with me I have missit sugi our group CFO and on the 2:07 2 minutes, 7 seconds operations side I have Mr. Rajat Krisht who is our CM OP chief of manufacturing and projects and 2:15 2 minutes, 15 seconds Mr. Khalidas Brahmanik who is our CMO, chief marketing officer uh he is present 2:21 2 minutes, 21 seconds here. Uh in short um uh you know uh as you would have seen uh we had during the 2:29 2 minutes, 29 seconds year a few challenges and uh marginal setbacks uh especially in regard to the operations of a couple of our plants. uh 2:39 2 minutes, 39 seconds but we were I think able to overcome them and also uh sticking to our strategy uh we were able to make the 2:47 2 minutes, 47 seconds most of the tailwinds which one observed during the last quarter and um make take 2:54 2 minutes, 54 seconds the uh most advantage of it uh in the uh marketplace as well as in our operation 3:02 3 minutes, 2 seconds site and been able to deliver a healthy set of numbers. we believe or which we 3:08 3 minutes, 8 seconds are we find satisfactory uh for ending the year on a reasonably good note as we 3:15 3 minutes, 15 seconds look forward uh I know we are all staring at many u uh uncertainties and variables so any kind of projection has 3:25 3 minutes, 25 seconds to be tempered with caution um uh for uh you know the unknowns uh which uh would 3:34 3 minutes, 34 seconds be applicable to all not just all companies in the industry but the country as a whole and maybe the entire 3:42 3 minutes, 42 seconds global economy especially uh some of our neighboring countries. So we are uh we will we are sort of taking it as it 3:50 3 minutes, 50 seconds comes and will not uh be making uh as it is we don't make much of forward-looking statements but even going forward I 3:59 3 minutes, 59 seconds think we will uh be cautious uh in our guidance uh for uh the months ahead you 4:07 4 minutes, 7 seconds know we are in a very very dynamic and volatile uh uh situation as you would know from the day we declared our 4:14 4 minutes, 14 seconds results on Saturday Till today we have had announcements from the prime minister no less than the prime minister 4:21 4 minutes, 21 seconds himself in terms of uh some of the clouds blooming on the horizon. Uh so we 4:28 4 minutes, 28 seconds have to look at each day uh separately and go forward but I think two things are there. We are as far as we are 4:36 4 minutes, 36 seconds concerned we are on a solid footing in whatever we have done and what we have demonstrated hopefully uh to the market 4:44 4 minutes, 44 seconds and to all of you who observe the company follow the company closely that we are not the ones who do knee-jerk 4:52 4 minutes, 52 seconds reactions or veer from strategy. uh we set our course in a particular way um uh three years or more than three years ago 5:01 5 minutes, 1 second postcoid and we have by and large been able to uh uh uh stick to that adhere to 5:09 5 minutes, 9 seconds that and uh without getting distracted uh by temporary ups and downs or some regional 5:18 5 minutes, 18 seconds imbalances and disturbances. So with that I hand over to Mashad Surroi um to uh give you a broad overview of the 5:27 5 minutes, 27 seconds numbers. He is just he's fresh from the CNBC interview wherein also he has given 5:33 5 minutes, 33 seconds um I think um an overview which many of you have heard and I found some of you have also um reported on that. So we 5:43 5 minutes, 43 seconds will get uh straight into it and uh conclude uh uh the meeting as soon as uh 5:51 5 minutes, 51 seconds we can. So we would also request you to be focused on your questions and what is relevant um because we may not be able 5:59 5 minutes, 59 seconds to unnecessarily you know speculate much in the future. So uh those uh futuristic 6:06 6 minutes, 6 seconds questions some of that which uh sometimes can't serve in a natural course ask only uh what is what you 6:13 6 minutes, 13 seconds think is immediately relevant uh for in the interest of time. Thank you very much. Good afternoon ladies and gentlemen. 6:22 6 minutes, 22 seconds Uh in of our performance for this financial year uh we have done a growth of about 4% in volume. are a bit for the 6:32 6 minutes, 32 seconds year was close to about 800 rupees and for the quarter ended March was close to,000 rupees. 6:41 6 minutes, 41 seconds Apart from the quantitative factor, there are certain qualitative factors uh where where we have done where we have 6:50 6 minutes, 50 seconds taken concerts and we have seen positive results. For instance, in in the blended 6:57 6 minutes, 57 seconds segment, we have moved from 82% in the last financial year to 88% the current financial year. In the trade segment 7:06 7 minutes, 6 seconds from 70% in last financial year, we have moved to 77% in this financial year. Our lead distance has come down from 350 7:15 7 minutes, 15 seconds kilometers to 37 kilometers in this financial year. and our mukbang volume has improved from 7:24 7 minutes, 24 seconds 24.6 lakh tons to 27.7 lakh times in this financial year. 7:30 7 minutes, 30 seconds With that I open the forum for ending and we'll be glad to answer specific questions that you have. 7:39 7 minutes, 39 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 their touchdown 7:48 7 minutes, 48 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 7:56 7 minutes, 56 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 8:08 8 minutes, 8 seconds We'll take our first question from the line of Sukrit Deepart from Eyesight Trade. Please go ahead. 8:15 8 minutes, 15 seconds Good afternoon team. Uh I have two questions. The first question to Mr. go is uh looking ahead, how do you see Berala Corporation shaping its growth in 8:24 8 minutes, 24 seconds the cement and building materials over the next uh coming quarters and particularly in terms of capacity uh ex 8:33 8 minutes, 33 seconds capacity expansion sustainability initiatives and brand uh uh placement in 8:41 8 minutes, 41 seconds the premium uh space. That's my first question. Last second question. Thank you. 8:49 8 minutes, 49 seconds It would be useful if helpful if you would have asked your second question as well. But I'll answer your first 8:55 8 minutes, 55 seconds question. Um, as you know that u our capacity we do not have any major 9:04 9 minutes, 4 seconds capacity expansion plans. uh unlike uh many others who have announced in the past, I I do notice that some people who 9:12 9 minutes, 12 seconds had announced capacity expansion are on a roll back or have announced some roll back or slow down in their 9:20 9 minutes, 20 seconds capacity. We have not done any uh aggressive capacity expansion announcements in the past. So uh we will 9:28 9 minutes, 28 seconds uh proceed according to that. There are no major changes from whatever is already there. We know our uh my line 9:37 9 minutes, 37 seconds two is you know um that are in work in progress. Along with that will come the 9:46 9 minutes, 46 seconds new Gandhi units uh which are linked to that which will eastern UP around Raj some of those uh 9:56 9 minutes, 56 seconds but beyond that we are not really looking at uh acquisitions expansions with the 10:03 10 minutes, 3 seconds Maher line to coming by financial year 29 we would go up to 10:10 10 minutes, 10 seconds uh 27.5 million tons is What are what you would see in terms of our strategy so far you 10:20 10 minutes, 20 seconds see our total numbers this year we have um reported the highest ever number with 10:27 10 minutes, 27 seconds our existing capacity. So what is happening is our uh strategy 10:34 10 minutes, 34 seconds moving uh uh progressively towards almost 100% capacity of blended cement. 10:42 10 minutes, 42 seconds Uh we are making steady progress despite the change in the market composition because in our markets core markets 10:50 10 minutes, 50 seconds where we are uh the way markets are expanding and with the investment in brands that we have done over a period of time uh we are finding there's 10:58 10 minutes, 58 seconds greater acceptance of our blended uh and value added cement. So you uh you'll find therefore the composition of our uh 11:08 11 minutes, 8 seconds premium uh volume in those uh in our total kitty uh is systematically 11:15 11 minutes, 15 seconds increasing uh not just across uh units but across regions also 11:21 11 minutes, 21 seconds how our uh mulban um uh you know volumes are progressing uh there again in our 11:29 11 minutes, 29 seconds core markets we are able to acquire greater market share and that to true are blended. So this this kind of uh efforts will continue. 11:38 11 minutes, 38 seconds We've installed our third line in Kundalin that will give us again uh some play in 11:46 11 minutes, 46 seconds the our code on profitable UP market and all of that will again come from blended cement unlike some people who have set 11:54 11 minutes, 54 seconds up new units grinding units in Uttar Pradesh we are aware of but they are grinding OPC over there. uh that's not 12:02 12 minutes, 2 seconds our idea. We want to do with a value added blended cement and that to our premium brands. Um so that is uh 12:11 12 minutes, 11 seconds basically how things will move. Uh we are not talking of any big bang uh expansion just now. There are some as 12:19 12 minutes, 19 seconds you know some mines acquisitions etc are happening but those are much more futuristic and we'll talk about that in the uh days to come or years to come. 12:30 12 minutes, 30 seconds Thanks. Thank you. My second question to Mr. Adita is uh from a forward-looking point of view uh want to understand your 12:38 12 minutes, 38 seconds plan of action on how you see capital allocation evolving to balance growth investments uh reduction in debt and 12:48 12 minutes, 48 seconds shareholder uh returns and what structural cost levers are being built today to ensure margin stays strong uh in the coming quarters. Thank you. 13:00 13 minutes See in terms of capital allocation we have got about 4,4,500 for capex plan undergoing right at this 13:09 13 minutes, 9 seconds juncture. So where we are taking our capacity one part we just included in the last financial year we went from 20 to 21.5. 13:19 13 minutes, 19 seconds Now in the next three years we are going to take it up to uh 27.5. 13:24 13 minutes, 24 seconds So most of our capex is most of our internal acur is going to be allocated towards cash capex program. So you will 13:34 13 minutes, 34 seconds not see any debt reduction major debt in fact the debt is going to 13:41 13 minutes, 41 seconds go up in a few terms. uh though in terms of get to a beta uh it cannot uh exceed 13:48 13 minutes, 48 seconds 2.5 is our uh is what our local outlook is and as far as cost reduction is 13:56 13 minutes, 56 seconds concerned one major river is that we have just started production or mining 14:04 14 minutes, 4 seconds in our become the full production is going to come from next financial year so that is going to be one major 14:12 14 minutes, 12 seconds lever in so far as possible Thank you and best wishes. 14:20 14 minutes, 20 seconds Thank you. Next question is from the line of Shan Sha from Dalat Capital. Please go ahead. 14:29 14 minutes, 29 seconds Uh hi sir. Uh thank you and congratulations on uh better operating performance uh this quarter. Uh sir uh 14:36 14 minutes, 36 seconds before asking question just to uh clarify or maybe uh uh reconfirm whatever the surrog has said on the CNBC 14:44 14 minutes, 44 seconds kind of a 20 million uh volume in F27 which is a close to kind of a 7% growth 14:51 14 minutes, 51 seconds 800 rupees bida per turn 900 cr capex for f27 and uh some 50 odd rupees price hike 14:59 14 minutes, 59 seconds which is there in April and 150 to 175 rupees cost per turn increase from Q1 onwards. So just wanted to recount from 15:06 15 minutes, 6 seconds uh that this is what that we are looking at. 15:10 15 minutes, 10 seconds Just one small version I said close to 21 million up to close to 20 million tons. I did not give a specific number in terms of volume growth. 15:21 15 minutes, 21 seconds Okay. Okay. So in in that scenario so first on the volume front if I if I exclude the mukun banan the entire other 15:29 15 minutes, 29 seconds capacity even for entire full year of f26 is one can say close to kind of a 99% utilization is there so whatever the 15:38 15 minutes, 38 seconds growth in the volume in F27 likely to come is primarily on the 1.4 4 million ton pundan kunch that we have started uh 15:47 15 minutes, 47 seconds that the way one also okay okay got it and uh uh uh uh now on 15:58 15 minutes, 58 seconds the couple of data points so particularly on the KKL front for Q4 what was the KKL 16:05 16 minutes, 5 seconds and in terms of fuel mix also so you have said the micrum core the full-fledged production will will come in the FI28 so this year how one can 16:14 16 minutes, 14 seconds look at and how much kind of a saving this year and maybe the next year once it it will reach the full-fledged uh so what's the cost difference how one can 16:23 16 minutes, 23 seconds look at that part coming to this year the annual capacity 16:31 16 minutes, 31 seconds is about 3.6 lakh tons and this year we expect to do about 1.2 two lakh tons or thereabouts and next year we expect to 16:40 16 minutes, 40 seconds achieve full capacity and to give you a sense on the cost or landed cost of 16:47 16 minutes, 47 seconds victims is going to be in the region of 1 to 1.05 and the current prices of domestic coal 16:56 16 minutes, 56 seconds around 1.45 45 you that will give you a sense of the cost arbitrage that we will get from 17:02 17 minutes, 2 seconds become cold what was your other question uh uh what was the KL cost 17:09 17 minutes, 9 seconds KL cost in Q4 it was 1.53 okay 1.53 and mostly the in Q1 the the 17:19 17 minutes, 19 seconds primarily the packing bag cost which will be 1 800 rupees and here also packing bag and fluid fuel. Okay. Okay. 17:28 17 minutes, 28 seconds And the digital cost will go towards increasing logistics cost a bit. 17:36 17 minutes, 36 seconds Okay. Okay. Got it. And just a clarity in terms of the capacity. So 1.4 million ton each for pri and ga phase 17:46 17 minutes, 46 seconds one. This we will be starting by FI28 and or it would be maybe Q3 Q4 FI 28. 17:54 17 minutes, 54 seconds Yes sir. Q3 Q4 Q3 Q4 Okay. Q3 Q4 uh that uh we will be uh 18:03 18 minutes, 3 seconds starting and uh uh uh in terms of the s uh you said that now we are looking at a 18:10 18 minutes, 10 seconds 100% kind of a blended cement which will be the and the premium s which will be keep on increasing. Uh so this current 18:18 18 minutes, 18 seconds 63% premium share how one can look at to inch up and the blended cement also 87% 18:26 18 minutes, 26 seconds when one can look at kind of a 100% kind of a number and how this will help us in terms of the extra 18:36 18 minutes, 36 seconds see it's difficult to predict exactly how but what you would see in our u uh you know trajectory 18:44 18 minutes, 44 seconds uh quarter to quarter year on year if you see we have been moving in that direction and this is despite the market 18:53 18 minutes, 53 seconds composition changing. There is you know in many most markets we have seen the growth in nate segment increasing and 19:02 19 minutes, 2 seconds consequently there is an OPC segment which has gone up but we have not been leared by that. uh we have stuck to our 19:10 19 minutes, 10 seconds position of pushing our blended cement and the premium cement up and that is a strategy which we will follow um 19:19 19 minutes, 19 seconds consistently. So we are not veering from that and that's the point to be noted u from your uh thing that you'll find that 19:26 19 minutes, 26 seconds we are doing that um in a a very consistent manner. uh but it's difficult to say when we will reach 100 or whether 19:35 19 minutes, 35 seconds we what is the level we are today whether that level will remain or they may there may be a uh you know slight uh 19:44 19 minutes, 44 seconds slippage or reversal on a quartertoquarter basis or something it can be those are subject to market 19:50 19 minutes, 50 seconds variations but we are extremely clear on that strategy what is further thing we are going to do on the brands etc that 19:59 19 minutes, 59 seconds only uh we we we can't talk about now but uh we were the ones who among the 20:07 20 minutes, 7 seconds um uh I I don't like to use that term the B category players we were the first to move heavily towards premiumization 20:16 20 minutes, 16 seconds and uh we are we have gone in there aggressively over the years created a new uh flagship brand perfect plus which 20:25 20 minutes, 25 seconds is now got a practically a foot footprint in all of northern India to 20:31 20 minutes, 31 seconds central India. Uh it is uh gaining gained traction and all of it. So uh 20:39 20 minutes, 39 seconds that strategy has worked. So we will also we hope to lead uh innovations in that category because others have also 20:47 20 minutes, 47 seconds moved in that direction subsequently who were the B segment. We have seen some 20:53 20 minutes, 53 seconds amount of dilution in the equity of uh the A category players without naming 21:00 21 minutes them in terms of their price positioning uh which has put us uh at par with many of them or even higher than many of them 21:09 21 minutes, 9 seconds in our core markets. So that's the direction we are moving. We are uh we have the advantage of being a smaller player with high capacity utilization. 21:20 21 minutes, 20 seconds So we are not really under pressure uh to uh ramp up you know as I said some people who have added capacity are 21:28 21 minutes, 28 seconds having to even grind uh OPC which is a very unusual thing uh in the grinding units uh rather than taking the OPC from 21:37 21 minutes, 37 seconds their mother unit plants which are fairly close by. U uh we are not doing any of that um even if there are 21:46 21 minutes, 46 seconds incentives available somewhere. So we will stick to that but you can't really predict uh exactly when we will reach 21:54 21 minutes, 54 seconds 100% or whether that 100% will remain uh constant or there may be a slight um uh 22:02 22 minutes, 2 seconds you know reversal on a quartertoquarter basis. 22:07 22 minutes, 7 seconds Yeah sir. Lastly, the incentive in revenue in Q4 is just a one odd cor and if that is the case, how one can look at 22:15 22 minutes, 15 seconds FI 27 incentive on a fullear basis in true for we have booked 140 course 22:25 22 minutes, 25 seconds out of the about 90 was relating to earlier years and 50 course were relating to the current year. Okay. And 22:34 22 minutes, 34 seconds uh there's a uh in the current year we have a average cost 22:40 22 minutes, 40 seconds about 24 crores. So you can say to 24 all the incentive will be booked in this 22:48 22 minutes, 48 seconds quarter was reding to the earlier quarter. In so far as the next year is concerned with punment coming on screen 22:56 22 minutes, 56 seconds we expect the incentives to go up to uh 130 around 130 cross. 23:04 23 minutes, 4 seconds Okay, got it sir. Thank you and all the best. 23:07 23 minutes, 7 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 23:16 23 minutes, 16 seconds a time. You may join back with you for follow-up questions. 23:20 23 minutes, 20 seconds Next question is from the line of Siddhan from Goodwill. Please go ahead. 23:25 23 minutes, 25 seconds Yeah. Hi, I wanted to understand why why the working capital got very tight. You know, it hurt the cash flows from operation. Any particular reason? 23:34 23 minutes, 34 seconds Yes, we consciously started building up stocks because of the geopolitical situation. 23:42 23 minutes, 42 seconds We were anticipating some tightness in so far as the particular coal is concerned coal and the fuel is concerned. So instead of the normal 23:51 23 minutes, 51 seconds strategy of driving down the inventory, we constantly build up inventories. 24:02 24 minutes, 2 seconds Understood. Uh what's the current debt at the end of the year? Because of the investments I couldn't get the net debt number about 2,100 cr. 24:12 24 minutes, 12 seconds 2,100 cr was the net debt number. Okay, great. And what do we expect the peak that you know just the range uh uh for the in the scape cycle? 24:22 24 minutes, 22 seconds In the scape cycle, our expectation is that the peak net should be in the range of 4,000 crores. 24:31 24 minutes, 31 seconds net is in the range of 4,000 crores. 24:32 24 minutes, 32 seconds Understood. And what are the interest cost assuming the current rates for that you are expecting for FY27? 24:41 24 minutes, 41 seconds Uh it's difficult to give a estimate on that because most of our term loans are 24:48 24 minutes, 48 seconds linked to external benchmarks EBLR. Okay. So, so that is fairly difficult. 24:54 24 minutes, 54 seconds Okay. Just one final question for Situ sir that you know we keep 25:02 25 minutes, 2 seconds I'm sorry you're sounding muffled Sidan we can't hear you Sudan 25:12 25 minutes, 12 seconds around that business uh Sudan please repeat your question we unable to hear you yeah hi can you hear me now 25:19 25 minutes, 19 seconds yes yeah just for the jute business have we considered uh getting in a strategic investor or turnaround because it's been taking quite a bit of time. 25:29 25 minutes, 29 seconds No, we don't have a problem in investing Jude business turnaround. Uh last year it was a very exceptional year when Jude 25:37 25 minutes, 37 seconds prices have uh uh reached uh abnormal highs, historical highs it has reached last year. Um and uh what uh kind of 25:46 25 minutes, 46 seconds levels which nobody has seen. It is due to multiplicity of factors including the stoppage of uh imports from Bangladesh 25:54 25 minutes, 54 seconds and uh variety of factors we feel and that has thrown many um uh people out of 26:02 26 minutes, 2 seconds uh uh gear. There are many JT plants which have actually shut down as Judas which have shut down or people have reduced their mandates uh the weekly 26:12 26 minutes, 12 seconds workings to 4 days or 3 days in a week all that has happened. So this has been a very abnormal thing Juke we uh we 26:20 26 minutes, 20 seconds don't need a strategic investor uh we know the business we have been in the business the longest among any of the 26:27 26 minutes, 27 seconds current players management uh as you know is the oldest Indian judment we know what is to be done but it's a 26:35 26 minutes, 35 seconds matter of time and the opportunity we expect now I uh was forwardlooking that with the change of government in West 26:43 26 minutes, 43 seconds Bengal uh juke will require uh receive a different kind of attention. Uh and there will be greater coordination 26:52 26 minutes, 52 seconds between the center and the state government because so far the uh you know Jud as you know is a central 26:59 26 minutes, 59 seconds textile ministry uh subject there has been a lot of interest uh especially from the current textile minister Girat 27:07 27 minutes, 7 seconds Singh but the uh center and the state have not always worked in sync. So Joot 27:15 27 minutes, 15 seconds whereas say to give an example uh whereas Joot is a textile is a PLI uh industry and there has been lot of PLI 27:24 27 minutes, 24 seconds activity has happened in textile for uh other um materials in Jude nothing has happened uh I have personally met the earlier the textile minister Mr. 27:36 27 minutes, 36 seconds uh who has visited they have been urging the industry to look at innovations, industry to look at new products rather than rely only on government orders etc. 27:46 27 minutes, 46 seconds None of that was really happening. There are a lot of structural systemic issues. 27:51 27 minutes, 51 seconds So hopefully if the government uh there is greater attention uh over there we 27:57 27 minutes, 57 seconds have a new head of um the NIFO uh who apart from being an economist uh he came 28:06 28 minutes, 6 seconds uh he was last time elected from the Jude belt uh he has gone so I am personally optimistic in a lot of 28:13 28 minutes, 13 seconds positive policy changes which will uh show improvement in the jute industry per 28:21 28 minutes, 21 seconds uh something which has not happened for many many years. Understood. Thank you. 28:29 28 minutes, 29 seconds Thank you. 28:31 28 minutes, 31 seconds Next question is from the line of Sakit Kapoor from Kapoor Company. Please go ahead. Yeah, sir. Hope I'm audible. 28:39 28 minutes, 39 seconds Yes, please go ahead. 28:41 28 minutes, 41 seconds Here you without the phone because you are just one one kilometer away from us. 28:48 28 minutes, 48 seconds Even if you don't speak into the phone, we'll be able to hear you, Sakit. 28:51 28 minutes, 51 seconds Okay. Thank Thank you sir for your comments. Uh sir, uh firstly uh our foray into the uh RNC and the 28:59 28 minutes, 59 seconds construction chemical business uh if so you can outline to us what are we eyeing and uh uh exactly uh in this space where we intend to make our mark. 29:12 29 minutes, 12 seconds First of all on RMC, our strategy of RMC is very different from others uh in the sense that many other people who are 29:20 29 minutes, 20 seconds investing in RNC including uh the largest players, they look at RNC as a 29:27 29 minutes, 27 seconds channel for their own cement because their own u uh capacity utilization of cement is much lower. So while they're 29:37 29 minutes, 37 seconds also trying to certainly move up the value chain but one of their main drivers is they can use their own cement 29:45 29 minutes, 45 seconds whereas for us the RNC is a a matter of uh certainly climbing up the value chain 29:54 29 minutes, 54 seconds but it's more importantly a question of brand extension is a question of leveraging we as a company I have said 30:01 30 minutes, 1 second this in the past when we look at assets we don't look at assets as just manufacturing assets. We look at our 30:09 30 minutes, 9 seconds marketing assets though you don't assign a value to them on the balance sheet. We are very conscious of our marketing and 30:17 30 minutes, 17 seconds sales and distribution assets and uh we think that just like one sweats the uh 30:24 30 minutes, 24 seconds manufacturing assets there is a scope to sweat uh the marketing and uh you know 30:30 30 minutes, 30 seconds go to market assets and that is what we intend doing with RMC. So our RNC u 30:38 30 minutes, 38 seconds progression so far uh has been uh uh slow but steady. We have now very soon 30:45 30 minutes, 45 seconds we'll have our fifth plant in Uttar Pradesh and that's because Uttar Pradesh is a core market for us uh where we have a strong brand equity for Perfect Plus. 30:56 30 minutes, 56 seconds So our RMC is being marketed and under the perfect plus brand name. Uh we are 31:02 31 minutes, 2 seconds doing so but we don't want to really uh uh go overboard on RMC. Uh we know how 31:10 31 minutes, 10 seconds many companies have burned their fingers. There are a lot of um you know issues in the RNC segment. it 31:19 31 minutes, 19 seconds particularly relating to outstandings uh your um uh you know uh recovery and 31:26 31 minutes, 26 seconds commercial aspects. So we don't want to do something aggressive uh overaggressive which is going to hurt our main business. So so far first of 31:34 31 minutes, 34 seconds all I think we are uh uh uh developing a reasonably good footprint in uh up 31:41 31 minutes, 41 seconds market uh which is giving us a lot of learnings. You will probably get to see our progressing now extending the same 31:49 31 minutes, 49 seconds format to other regions where we have a strong brand equity on uh uh chemicals. 31:57 31 minutes, 57 seconds Uh extension chemicals is there were two parts to it. Uh when we launched it there was a part of Walputi and there 32:05 32 minutes, 5 seconds was a construction chemical. Walputi is a market which we have seen is highly priced driven and lot of new entrance 32:14 32 minutes, 14 seconds have come in not only from the uh you know the cement and uh side but also 32:21 32 minutes, 21 seconds from the pain side. So it is a very very commoditized market. We don't see too much of value. So we are not going 32:28 32 minutes, 28 seconds aggressive on Walputi at the moment. But we are seeing a lot of traction in the chemicals uh side and um uh there again 32:38 32 minutes, 38 seconds we are having a brand synergy with our premium brand perfect plus and we are changing our supply chain model there um 32:47 32 minutes, 47 seconds over learning and you will see us trying to uh uh scale it up in the coming year. 32:53 32 minutes, 53 seconds It had because of in between COVID everything else it was put on the back burner for a while and we were focusing 33:00 33 minutes on other areas but you'll find now much more focused attention on chemicals but chemicals is never going to be a huge 33:08 33 minutes, 8 seconds number. It is going to give you again a brand extension um uh thing and which is 33:15 33 minutes, 15 seconds uh you know uh which will probably give us a sort of a multiplier effect on our 33:22 33 minutes, 22 seconds existing brands. We are not really looking at it in a huge number but it is going to uh certainly 33:29 33 minutes, 29 seconds we believe uh uh you know add value to our overall brand 33:37 33 minutes, 37 seconds assets and positioning and s in terms of capex any number any significant number we will be eyeing in 33:45 33 minutes, 45 seconds this segment these are all capex light products okay uh my next question 33:53 33 minutes, 53 seconds I requested to join back the queue please as we particip I was asking okay please go ahead. 34:02 34 minutes, 2 seconds Thank thank you ma'am. Uh sagi sir as as you have alluded in the uh in the interview also about the power and uh 34:09 34 minutes, 9 seconds fuel cost. So uh with the with the rising crude and the pet food prices, how are these going to affect uh uh our 34:17 34 minutes, 17 seconds our fuel fuel prices and what steps are we taking to improve our mix in terms of 34:24 34 minutes, 24 seconds uh further investment in the WHS and uh also please provide us the current maturity number uh of debt uh 34:33 34 minutes, 33 seconds for the current year and what number we are going to close for FI 267. Thank you. 34:40 34 minutes, 40 seconds See in terms of uh uh the total cost impact I have given an estimate of 150 34:47 34 minutes, 47 seconds to 175 rupees per ton that is mainly on two counts. One is the packaging cost and the other is the fuel cost. Okay. 34:57 34 minutes, 57 seconds And uh within the fuel our current mix of imported fuel is around 30%. But let 35:05 35 minutes, 5 seconds me share with you it's not only the emposed fuel cost which is going up even the domestic fuel uh although the cost 35:14 35 minutes, 14 seconds is relatively less but uh even the cost of domestic fuel is going up because uh many cement players are now switching 35:22 35 minutes, 22 seconds from imported fuel to domestic fuel because and also given the summer strong 35:30 35 minutes, 30 seconds summer season there's a strong demand for domestic fuel. Even the cost of domestic fuel is going up 35:38 35 minutes, 38 seconds and in so far as wastage recover is concerned we are trying to increase the optimize the capacity of existing wastage 35:47 35 minutes, 47 seconds recoveries wherever possible and in any case our new plants will have a 35:53 35 minutes, 53 seconds optimized level of wast didn't get your last Yeah. 36:05 36 minutes, 5 seconds No, there are two things Rajat here. Yes. Waste is recovery as said by Adit. 36:11 36 minutes, 11 seconds Yes, we are working on that to improve our efficiency in the wasted recovery including the new setup which is going to come for the my line too that will be 36:18 36 minutes, 18 seconds there and apart from that the solar and hybrid also we are continuously working on that and uh as of now you can see 36:27 36 minutes, 27 seconds that there is another plan of around 25 to 30 megawatt uh which is going to improve in uh next 1 to two years of time. 36:37 36 minutes, 37 seconds Thank you. 36:40 36 minutes, 40 seconds We'll take our next question from the line of Patanjali Shinias from Sundaram Mutual Fund. Please go ahead. 36:47 36 minutes, 47 seconds Hello sir, thank you for the opportunity. Uh good set of numbers. Uh I just have a couple of questions. So 36:54 36 minutes, 54 seconds firstly uh with respect to our operating cash flows. So we have uh generated more AIDA than last year. However, our 37:03 37 minutes, 3 seconds operating cash flow has uh kind of declined very sharply versus the previous year. Could you help me understand this bridge sir was versus the previous year why there's such a 37:12 37 minutes, 12 seconds sharp decline the some of the incentive that will occur because we are from Maharashtra 37:19 37 minutes, 19 seconds that we have not realized so hopefully by next year we'll start realizing that incentive so that is one secondly I will 37:26 37 minutes, 26 seconds explain the working capital has gone up because of the constant effort to increase the fuel inventory so that is 37:34 37 minutes, 34 seconds the second reason for lower cash flow in that sir. What could what would the 37:42 37 minutes, 42 seconds receivable amounts be sir pertaining to this uh incentives for us? So total receivable is about 500 cr. 37:50 37 minutes, 50 seconds Got it sir. And we expect this to be coming in the current year is it? 37:54 37 minutes, 54 seconds Yeah we should start the reduction from the current financial year. 37:59 37 minutes, 59 seconds Got it sir. And just one last question sir. What are the capex guidance for 27 and 28 and how much capacity commissioning for the next two years? 38:08 38 minutes, 8 seconds We have now given a guidance for the next financial year for FI27 it is 900 38:13 38 minutes, 13 seconds cr and our capacity addition by FI29 38:19 38 minutes, 19 seconds will be 6 million t from 21.5 to 27.5 38:26 38 minutes, 26 seconds got it sir any timeline when the first next set of capacity is coming in all 29 38:33 38 minutes, 33 seconds some at the beginning of the year and Thank you so much sir. 38:40 38 minutes, 40 seconds Thank you. Next question is from the line of Girija Ray from Nirmal Bank. Please go ahead. 38:48 38 minutes, 48 seconds Hi, thanks for the opportunity and many congratulation for good setup of number. 38:54 38 minutes, 54 seconds Uh appreciate the consistency level of the company and uh the fourth quarter is a kind of surprise to the street I can 39:02 39 minutes, 2 seconds say. So I have couple of questions. Uh so just wanted to check Brahmapuri and 39:08 39 minutes, 8 seconds Mariaka cold blood when uh when we can expect this has to be operated or something like that. If you can throw some light this is my first question. 39:21 39 minutes, 21 seconds As so far Brahmakuru is concerned, we are not pursuing that talk actively because uh uh the capacity which was 39:31 39 minutes, 31 seconds given in the uh build documents the actual capacity is much lower than that. 39:37 39 minutes, 37 seconds So we are contesting that particular job and in so far as virtual work is concerned we are in 39:45 39 minutes, 45 seconds touch with the government for certain regulatory issues. Uh so maybe by FI29 what we expect to start that job. 39:57 39 minutes, 57 seconds Okay. And uh do you think this uh bigram coal uh that we have started operating in April so this is going to uh reduce 40:07 40 minutes, 7 seconds our lead distance uh in terms of coal transportation overall company lead distance is it going to reduce our coal 40:14 40 minutes, 14 seconds distance because I can see uh Vikram coal mining is around know 50% distance reducing from your central region plans 40:23 40 minutes, 23 seconds so is this going to help us uh to mutban and central religions. If uh we we are 40:30 40 minutes, 30 seconds from this become pool main what matters with the land cost that we 40:39 40 minutes, 39 seconds pay for the fuel compared to the alternative if you were to buy from the market or from 40:46 40 minutes, 46 seconds co India subsidiaries so there as I explained there's a good delta our cost landed cost will be in the region of 1 40:55 40 minutes, 55 seconds to 1.05 5 rupees per million calories as again the current market price of 1.45 rupees per million calories. 41:05 41 minutes, 5 seconds Okay, the last question maker I may uh so uh I I just uh I could not hear it properly. What is the incentive we have 41:13 41 minutes, 13 seconds included in FI26 revenue full year basis and what is the amount we are going to add in FI27 the incentive 41:24 41 minutes, 24 seconds we have approved 140 cost out of which 90 cost pertain to earlier years and 50 calls pertaining to the current 41:31 41 minutes, 31 seconds financial year and for April 27 what is we expecting incentive 130 130 cr 41:40 41 minutes, 40 seconds okay thank Thank you sir. Thank you very much and all the best. 41:45 41 minutes, 45 seconds Thank you. Next question is from the line of Hershel Ma from AMS. Please go ahead. 41:54 41 minutes, 54 seconds Hello. I'm audible. Yeah, please use your handset mode. Is it better now? 42:02 42 minutes, 2 seconds Yes, please go ahead. 42:03 42 minutes, 3 seconds Okay. Thanks for the opportunity. Just one clarification in terms of incentives. So broadly for the full year you book around 50k incentive. Uh and how much is that for Q4 that number? 42:15 42 minutes, 15 seconds No no for the full year it is about 95 cr out of which no excluding the 90 that 42:23 42 minutes, 23 seconds was perfect to ear. So for this current year it is about 95 cr out of which about 48 will look in this current quarter. 42:35 42 minutes, 35 seconds So what is the number for this quarter? 42:36 42 minutes, 36 seconds Key4 Q4 we have booked 48 calls and 42:45 42 minutes, 45 seconds one can say probably 24 calls could have been booked in earlier quarters but because the clarification was received 42:53 42 minutes, 53 seconds in the current quarter that's why we have booked 48 calls annual run rate of Maharashtra incentive is expected to be 43:01 43 minutes, 1 second about 1995 cr Okay. Okay. Thank you. 43:08 43 minutes, 8 seconds Thank you. Next question is from the line of Nikil Gandhi from Bajage Life Insurance. Please go ahead. 43:21 43 minutes, 21 seconds Nikil, your line is unmuted. Please go ahead with your question. 43:28 43 minutes, 28 seconds Since there is no response, we'll move on to the next question from the line of Prashant Sha and individual investor. Please go ahead. 43:36 43 minutes, 36 seconds Hello. Uh is my voice audible? Yes, please go ahead. 43:41 43 minutes, 41 seconds Uh good and uh thanks for the opportunity. Congratulations team for excellent set of numbers. Uh Sadi S just 43:51 43 minutes, 51 seconds to confirm the lead distance now is 337 kilometers and the KAL is 1.53. 43:59 43 minutes, 59 seconds Are these numbers what I understand is correct? Yes. 44:05 44 minutes, 5 seconds Okay. For March. Uh for for March. Okay. Uh out of total energy. So my first question is out of the total energy cost for the current 44:14 44 minutes, 14 seconds fiscal how much total energy it is. 44:19 44 minutes, 19 seconds I'm sorry you're sounding muffled. Can you repeat the question again? Prash. So my question is how much of our energy consumption is coming from renewable 44:27 44 minutes, 27 seconds sources in in terms of percentage and how much is the non part 44:34 44 minutes, 34 seconds 31% renewable energy and how how much do we power there is no power 44:41 44 minutes, 41 seconds power consumpable assets okay okay and uh how much do we how uh 44:50 44 minutes, 50 seconds what is our expectation how much will it go for go to in the FI 27 28 period 44:57 44 minutes, 57 seconds 38% 37 to 38%. 37 38% is what we trying to get. 45:05 45 minutes, 5 seconds Okay. And what is our KAL? 45:08 45 minutes, 8 seconds Uh KL per ton of clinker you are asking or uh per ton of clinker per ton of clinker. 45:16 45 minutes, 16 seconds That varies from varies from plant to plant along the range of 700 710. 45:24 45 minutes, 24 seconds Okay. Okay. That's all from my sir. Thank you. 45:28 45 minutes, 28 seconds Thank you. Next question is from the line of Munil Sha from NSFO. Please go ahead. 45:34 45 minutes, 34 seconds Good afternoon sir. Uh what will be the total kix uh for this uh addition from 21.5 to 27.5? 45:44 45 minutes, 44 seconds 43 4760 crores including GST. X of GST it is 45:50 45 minutes, 50 seconds about 4,300 cr. Okay. And and mean I just missed the opening but uh there is some guidance of close to around 1,600 crores AIA for financial year 27. 46:04 46 minutes, 4 seconds Sorry there is a guidance of 1600 crores AITA for financial year 27. 46:10 46 minutes, 10 seconds So we are not going to give any specific guidance. Do you expect a beta to be some similar range to the previous? 46:21 46 minutes, 21 seconds No, because I I just just wanted to clarify. I heard somewhere that 2 million ton into 800 rupees a bit per ton 46:29 46 minutes, 29 seconds that you can do your own calculation right. Okay. Thanks a lot, sir. Thank you. Thank you very much. 46:38 46 minutes, 38 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand the conference over to management for closing comments. Over to you, sir. 46:51 46 minutes, 51 seconds Any closing comments? 46:52 46 minutes, 52 seconds Thank you very much. Uh thank you very much and we appreciate your support. We appreciate your interest in the company. 47:00 47 minutes Uh pleasure talking to you and uh hopefully we won't disappoint you uh 47:07 47 minutes, 7 seconds going forward. uh and uh despite as I said the uncertainty um hovering in the 47:13 47 minutes, 13 seconds horizon u we we will stick to our strategy and do our better than our best. Thank you very much. 47:23 47 minutes, 23 seconds Thank you on behalf of HDFC Securities. 47:26 47 minutes, 26 seconds That concludes this conference. Thank you for joining us and I connect your lines.