Annual volume target of 36 million tons for FY2024
Management maintained its full-year volume guidance despite Q1 beating expectations; expects to potentially do slightly better than 36M tons.
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INR 3,500 crore CapEx cash outflow for FY2024
Annual CapEx guidance for FY2024 set at approximately INR 3,500 crore, with similar outflow expected for FY2025.
68 million tons capacity by completion of current expansion phase
New announcements add 3.65M tons clinker (Pali) + 6M tons cement (Pali/Etah) + 6.65M tons (Kodla) + 6M tons cement (Kodla/Bangalore). All plants include WHRS.
Premium products to reach 15% of trade sales by FY2025
Special products mix has grown from 6% to 9% of trade sales in one year; company targets 15% through continued focus on high-performance concrete segment.
Q2 FY25 demand to remain weak
Government budget still pending presidential assent (expected third week August), followed by resource allocation and tendering. Major demand revival only expected from September/October onwards.
Q3 FY25 also unlikely to show improvement
Even if government tenders float by end-September, Q3 loses ~10 working days due to Diwali and Chhath Puja festivals. Only Q4 FY25 expected to see meaningful demand recovery.
Green power mix to reach 62% by June 2025
Current 54% green power share will increase to 62% with commissioning of 135 MW additional solar capacity across manufacturing locations.
Annual depreciation guidance at ₹2,600 crore
With commissioned capacity now at 56 mtpa, annual depreciation charge is expected at approximately ₹2,600 crore going forward.
Full Year Volume Growth: 12% YoY
Management expects cement volume growth of approximately 12% for FY24, supported by 14% H1 performance and new capacity additions coming online in Q4 (Guntur, Nawalgarh).
Capacity Roadmap: 62 MTP by March 2025
Current capacity will reach 56 MTP by end FY24, adding 6 MTP more by March 2025 (Guntur and Nawalgarh commissioning in Q4 FY24, delayed by ~3 months). Target of 80 MTP by March 2028 at 12% CAGR.
Fuel Cost Guidance: INR 1.90 per kcal for H2
Cost per kcal expected at INR 1.90 for the next six months (vs INR 2.05 in Q2), reflecting benefit of lower pet coke/coal prices and new green power capacity coming online.
Premiumization Target: 12% of Sales
Premium products currently at 9.5-10% of sales, expected to reach approximately 12% in the next six months through focused pricing strategy over volume chasing.
Volume growth in line with industry
Management expects to grow volumes broadly in line with industry demand growth over the next couple of years, with occasional quarters slightly above or below.
Capacity expansion Apr-Jun 2025
Ongoing expansion projects at Jaitaran, Kodla, Baloda Bazar, and Etah on track for commissioning between April and June 2025.
INR 4,000 crore annual CapEx
The company plans to spend approximately INR 4,000 crore every year for the next four years to fund expansion toward 80 MTPA by 2028.
80 MTPA capacity by 2028
The company remains committed to reaching over 80 million tons annual capacity by 2028, actively identifying growth opportunities to meet this target.
Full-year volume guidance of 37-38 million tonnes
Management expects to achieve 37-38MT volume for FY2026, implying H2 recovery after H1 decline of 2% YoY. Q2 showed 6.8% cement volume growth versus industry estimate of 3-5%.
Capacity expansion to 72-75MT by March 2027
Current capacity of 66.8MT will expand to 72-75MT by March 2027 with Jatara kiln commissioned and Kodla integrated plant expected shortly. CapEx of INR 3,000 crore planned for FY2027.
RMC expansion to 40 plants by FY2028
Company has 24 operational RMC plants currently, with target of 40 plants by FY2028. Entered East India with Raipur plant. Focus on understanding profit levers before accelerating deployment.
Capacity Target: 56 MMT by March 2024
Currently at ~52.5 MMT. Guntur plant (3 MMT) to commission by March 6, 2024. This will bring total capacity to approximately 56 MMT.
Capacity Roadmap: 62 MMT (Mar 2025), 75 MMT (Mar 2027), 80+ MMT (Mar 2028)
65 MMT by September 2025. Ras expansion of 3 MMT at INR 600 crore (brownfield). Total CapEx of INR 12,500 crore through 2027, funded by INR 6,000 crore cash on hand and internal accruals.
Power Capacity: 1,110 MW by 2024-25
Current capacity at 977 MW. 73 MW green power commissioned January 2024 (33 MW waste heat + 40 MW solar). Additional 133 MW to be commissioned in phases through 2025, taking power sufficiency from 61% to 65%.
Premium Product Target: 15% of sales mix by FY25
Currently at ~11% and rising. Magna brand priced INR 50-60/bag above base brand. Goal is to narrow price gap over time through brand equity development and quality improvements.
Q4 Volume Run-Rate: 9-9.5 Million Tons
Management expressed confidence that January trend mirrors December (3.3M tons) and expects no letup through March due to government budget spending deadline. Likely 1-2% YoY volume growth.
FY27 CapEx: INR 500 Crore
INR 150 crore for 26-30 RMC plants, INR 200 crore for railway sidings, INR 100-150 crore routine maintenance. Caveat: further capacity addition plans not yet finalized, which could substantially increase the number.
RMC Expansion to 45 Plants by September 2026
Accelerating from current 19 plants to 45 within 6-8 months, a pace management contrasted with UltraTech's 100 plants over 25 years. All RMC plants will consume captive cement (~44-45%).
Industry Demand Growth: 7.5%-8% for FY27
Based on RBI's 7.4% GDP growth projection and cement sector typically growing at 1-1.1x GDP. Management expects demand to sustain due to government spending compulsion through March 2026.
FY25 Volume Target: 40 million tons
Management maintained its 40 million tons volume guidance for FY25, expecting H2 to be much stronger as government projects kick into full swing after the election period.
Capacity expansion: 9-10 million tons in FY25
Out of the 18 million tons announced expansion pipeline, 9-10 million tons expected to be commissioned in FY25 itself, taking total capacity to 62+ million tons. Guntur (3 MT) already commissioned in April 2024.
Capacity utilization target: 80%
Management aims to reach 80% capacity utilization in FY25, which would translate to 39-40 million tons production. Lost ~400,000 tons in Q4 due to SAP migration and brand launch events.
Magna premium brand: 12-15% of sales
New premium brand Bangur Magna, launched as part of the rebranding exercise, is expected to reach 12-15% of total sales as brand awareness builds through mass media and social media campaigns.
FY26 Volume Target: ~39 Million Tons
Management expects to achieve approximately 39 million tons volume in FY26, implying growth roughly in line with or slightly ahead of industry expectations of 6.5-7.5% demand growth.
Industry Demand Growth: 6.5-7.5%
Cement demand expected to grow by 6.5-7.5% during FY2026, fueled by infrastructure projects, rural recovery, real estate momentum, and softening interest rates.
Capacity Expansion: FY26 Comissions
Integrated cement units at Jaitaran (Rajasthan) and Kodla (Karnataka) scheduled for commissioning by Q1 FY26 and Q2 FY26 respectively. Cement capacity expected to reach 68.8 million tons by end of FY26.
CapEx Guidance: INR 3,000 Crore
Total CapEx for FY26 earmarked at approximately INR 3,000 crore for ongoing expansion projects. Depreciation expected at INR 3,000-3,200 crore.
FY27 Volume Target: 40 Million Tons
Management targets cement volume of approximately 40 million tons for FY27, implying ~10% growth over FY26's 36.4 million tons, growing 1% above industry average.
CapEx Guidance: INR 1,500 Crore for FY27
Company plans to spend approximately INR 1,500 crore during FY27 focused on RMC expansion to 50-55 plants, railway sidings, and preliminary work on Meghalaya plant.
Depreciation Guidance: INR 1,600-1,700 Crore
Full-year depreciation for FY27 maintained at INR 1,600-1,700 crore as per previous guidance.
80 Million Ton Capacity Target by 2029
Long-term target of 80 million tons by 2029 remains stated but management acknowledges dynamic situation and has slowed CapEx aggression given industry peers also moderating expansion.