Dalmia Bharat Limited — Q2 FY26

Dalmia Bharat Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=e3YblOd4IY0 Published: 7 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the earnings conference call of Dalmia Bharat Limited for the quarter ended 30th September 2025. 0:12 12 seconds Please note that this conference call will be for 60 minutes and for the duration of this conference call all participant lines will be in the 0:20 20 seconds listenon mode. This conference call is being recorded and the transcript will be put on the website of the company. 0:28 28 seconds After the management discussion, there is an opportunity for you to ask questions. Should you need any an 0:36 36 seconds assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:43 43 seconds As a reminder, all participant lines will be in the listen only mode. Before I hand over the conference to the management, I would like to remind you 0:51 51 seconds that certain statements made during the course of this call may not be based on historical information or facts and may 0:58 58 seconds be forward-looking statements. These statements are based on expectations and projections and may involve a number of 1:05 1 minute, 5 seconds risk and uncertaintities such that the actual outcome may differ materially from those suggested by such statements. 1:14 1 minute, 14 seconds On the call, we have with us Mr. Punit Dalmia, managing director and CEO, Mr. 1:20 1 minute, 20 seconds Darendra Tuta, CFO and other management of the company. 1:26 1 minute, 26 seconds I would now like to hand the conference call over to Miss Aditi Mittal, head investor relations. Thank you and over to you. 1:35 1 minute, 35 seconds Good evening everybody. Welcome to quarter 2 earnings call of Dalmia Bharat Limited. uh we've declared our results 1:42 1 minute, 42 seconds today and all the relevant data and presentations have been uploaded on the website. I hope you've had a chance to go through it. This is that time of the 1:50 1 minute, 50 seconds year. I'm sure all of you are in a rush to go back home. So I'll not take much time and hand over the call. But before that wish you and your family a very happy, prosperous and safe Diwali. Over to you Mr. Dary. 2:00 2 minutes Thank you Aditi. I also would like to extend my warm wishes to everyone for a happy and prosperous Diwali. 2:08 2 minutes, 8 seconds And I want to jump straight away into what has been one of the biggest gifts for India this festive season and 2:15 2 minutes, 15 seconds without a doubt it has been the GST rate cuts. This is a commendable initiative by the Indian government aimed at 2:23 2 minutes, 23 seconds boosting consumption and demand at a time when the economy is navigating through external geopolitical pressures. 2:30 2 minutes, 30 seconds Together with this, the RBI rate cuts, income tax rebates announced in the FY26 budget, and easing inflation. 2:41 2 minutes, 41 seconds These measures create strong levers for driving a consumption-led recovery in the economy. 2:48 2 minutes, 48 seconds The reduction in GST on cement from 28% to 18%. Is a long awaited fiscal relief 2:55 2 minutes, 55 seconds and a very welcome step. As a responsible citizen, we had pledged to pass on the entire benefit to the consumers and we have accordingly 3:04 3 minutes, 4 seconds undertaken the same. This significant reform is expected to boost consumption and support housing demand over the 3:11 3 minutes, 11 seconds medium to long term. Additionally, the 10% tax cut on cement will ease working 3:19 3 minutes, 19 seconds capital requirements for channel partners, thereby improving liquidity across the supply chain. 3:25 3 minutes, 25 seconds Now I turn to industry demand prices and supply. 3:30 3 minutes, 30 seconds Coming to the demand side, while I believe that the Indian cement demand should continue to grow at a kagger of 7 to 8% during this decade, 3:39 3 minutes, 39 seconds the current year has started a bit softer than expected. 3:44 3 minutes, 44 seconds Both Q1 and Q2 demand grew at about low single digit driven largely by erratic and heavy rains and flash floods across the country. 3:54 3 minutes, 54 seconds Last month of September was slightly slow as the change in GST regime further led to slowdown in inventory pickup by 4:01 4 minutes, 1 second the channel and postponement of non-critical purchases. 4:06 4 minutes, 6 seconds Having said that, I believe that the second half of the year should witness pick up in momentum with improvement in 4:13 4 minutes, 13 seconds customer sentiment, pent-up demand and consecutive good monsoon. 4:18 4 minutes, 18 seconds In fact, the recent RBI move to potentially allow ECBS for the real estate sector could further support 4:25 4 minutes, 25 seconds cement demand from the housing sector in the medium to long term. 4:30 4 minutes, 30 seconds On the pricing front, cement prices largely held up during quarter 2 as well despite a much heavier rainfall which I believe is a big positive. 4:41 4 minutes, 41 seconds Now I turn to Dalmia performance during this quarter. 4:45 4 minutes, 45 seconds Coming to Dalmaria's performance, profitable growth remains our top priority and we are focused on driving 4:53 4 minutes, 53 seconds it through sustained improvement in revenues and deepening our cost leadership. I'm personally working with the team to strengthen our brand 5:01 5 minutes, 1 second positioning in the market and I'm happy with the progress we have made so far. 5:07 5 minutes, 7 seconds During the quarter, our revenues improved by 11% YI to 3 rupees 3417 cr 5:15 5 minutes, 15 seconds while EIA grew by 60% YI to rupees 696 cr which works out to be rupees 1013 5:23 5 minutes, 23 seconds rupees per ton for the quarter. This is the second consecutive quarter where we have delivered fourdigit cement ibida 5:32 5 minutes, 32 seconds per ton driven by better realization and our control on costs. 5:39 5 minutes, 39 seconds Coming to the capacity growth plans of Dharma Bharat. In the last earnings call I had detailed out our capacity expansion roadmap and in continuation of 5:48 5 minutes, 48 seconds the same I would like to mention that both Bgam and Karapa expansion projects are progressing as per plan which will give us 12 million tons peranom of 5:57 5 minutes, 57 seconds cement capacity for west and south markets in the next couple of years. 6:04 6 minutes, 4 seconds Beyond this, we have commenced the trial run production of the new 3.6 million 6:10 6 minutes, 10 seconds ton peranom clinker line in Omrangu Assam in September and are expecting 6:17 6 minutes, 17 seconds commercial production to begin in Q3 of FY26. 6:22 6 minutes, 22 seconds This clinker capacity will give give us an additional opportunity to add two to two and a half million tons of split 6:29 6 minutes, 29 seconds grinding capacity in future in the fast growing markets of northeast and potentially east India. 6:37 6 minutes, 37 seconds Furthermore, the insolveny process for 6:51 6 minutes, 51 seconds ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Thank you. 10:53 10 minutes, 53 seconds Hey, there. 11:12 11 minutes, 12 seconds Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Sir, you can proceed. Thank you. 11:21 11 minutes, 21 seconds Yeah, Darendra here. Sorry for this uh brief interruption. Uh I'll start my address once again. Let me give an overview of our financial performance. 11:31 11 minutes, 31 seconds As Puniji mentioned, our performance for the quarter was continued to be guided by profitable growth. During the 11:38 11 minutes, 38 seconds quarter, we witnessed an impressive revenue growth of 10.7% Y to rupees 11:44 11 minutes, 44 seconds 3,417 cr supported by increase in realization by about 7.6% Y and volume 11:52 11 minutes, 52 seconds growth of about 2.9% on Y basis. Our trade share stood at 52% while premium 11:59 11 minutes, 59 seconds product share was at 22% during the quarter. Coming to the cost line items, our raw material cost per ton of 12:08 12 minutes, 8 seconds production marginally increased by 1% Y 2 rupees 799 per ton despite the impact 12:16 12 minutes, 16 seconds of mineral tax imposed by the government of Tamil Nadu. Further, our corn fuel cost per ton of production marginally 12:24 12 minutes, 24 seconds increased by 1% Y by to rupees 1,17 per ton. During the quarter, we have 12:32 12 minutes, 32 seconds achieved AR share of 48% on consumption basis. Power cost efficiencies will continue to improve with the rising 12:40 12 minutes, 40 seconds share of renewable energy in our consumption mix. We have commissioned 93 megawatt of AR capacity this year. this 12:48 12 minutes, 48 seconds quarter mostly through group captive mode 12:59 12 minutes, 59 seconds and we are on track to scale our operational renewable capacity to 576 megawatt by end of financial 26. 13:07 13 minutes, 7 seconds During the quarter our blended petco and coal consumption cost has remained rangebound at about $100 per ton on a Q 13:15 13 minutes, 15 seconds basis. Landed fuel cost during the quarter stood at rupees 1.38 on per kcal basis while the cc ratio was 1.62 times. 13:26 13 minutes, 26 seconds Our logistic cost during the quarter declined by 3.8% y to rupees 1,60 13:34 13 minutes, 34 seconds per ton. Our DD% stood at 60% this quarter while lead distance was at 287 km. 13:43 13 minutes, 43 seconds We continue to strengthen our position as one of the lowest cost shiman producers. 13:48 13 minutes, 48 seconds Our abita per ton stood at 1,3 per ton and we achieved an absolute abita of rupees 696 crores. 13:57 13 minutes, 57 seconds This is a significant improvement of 55% plus y on both absolute and perm capac 14:04 14 minutes, 4 seconds on perm basis. Our beta margin during the quarter stood at 20.4% 4% in Q2 FI26 14:11 14 minutes, 11 seconds compared to 14.1% in the same quarter last year which is again a big jump of almost 1.5 times over 12 months. 14:23 14 minutes, 23 seconds On the GST front as you are aware the government has reduced GST on cement sales from 28% to 18% which is a big 14:32 14 minutes, 32 seconds welcome move. One another implication of of the same for the sector will be on the approval of incentive income. With 14:41 14 minutes, 41 seconds the lower GST rate, the approval of incentives will now get deferred. 14:46 14 minutes, 46 seconds Therefore, we expect total incentive approval for the year to be around rupes 240 crores compared to our earlier guidance of rupees 300 crores. 14:56 14 minutes, 56 seconds However, at the same time, government has also removed the school compensation set which will give us benefit of about rupees 20 crores during H2 this year. 15:08 15 minutes, 8 seconds During Q2, we have acred incentives of rupees 64 crores and received rupees 50 crores. For H1 FI26, 15:16 15 minutes, 16 seconds the total acrual was at rupes 138 crores and collection was rupees 91 crores. At the end of Q2 of FI26, our total 15:26 15 minutes, 26 seconds incentive outstanding is rupee is rupes 800 crores. 15:30 15 minutes, 30 seconds During H1 of FI26, we have incurred capex of about 1,189 crores and our 15:37 15 minutes, 37 seconds capex spend for FI26 is estimated to be about 3,000 crores. We have already started the trial runs into Mangu 15:46 15 minutes, 46 seconds linkization project in September. Bilgam and Pune projects are also on track to bring to to being commissioned as per 15:53 15 minutes, 53 seconds announced schedule. The work on Karafa projects has also commenced on expected lines. FI26 capex spent will be lower 16:02 16 minutes, 2 seconds versus earlier announced estimate due to favorable credit terms we have been able to negotiate from equipment suppliers 16:09 16 minutes, 9 seconds and some postponements of non-pudget capex to next year. 16:15 16 minutes, 15 seconds On the debt front, at the end of the quarter, our gross debt during quarter quarter end stood at rupes 6,621 crores 16:24 16 minutes, 24 seconds and our net debt stood at rups 1,602 crores. 16:28 16 minutes, 28 seconds The increase in net debt is largely attributable to reduction in the value of ex shares which is part of our treasury. Our cost of waring also 16:37 16 minutes, 37 seconds reduced to 6.9% during the quarter as we had taken most of the long-term loans linked to the external benchmark like T 16:45 16 minutes, 45 seconds bill rates which are corrected in line with the repo rate cuts while the bank and takes longer to correct. 16:53 16 minutes, 53 seconds Our balance sheet position remains strong and our net debt to stood at 0.56 times. Lastly, the board has declared an entry dividend of rupees 4 per share. 17:05 17 minutes, 5 seconds With this, I open the floor for Q&A. 17:07 17 minutes, 7 seconds Thank you and wish all of you a very happy and prosperous Diwali. 17:13 17 minutes, 13 seconds Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a 17:20 17 minutes, 20 seconds question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 17:31 17 minutes, 31 seconds Participants are requested to use their handset while asking a question. 17:36 17 minutes, 36 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 17:42 17 minutes, 42 seconds The first question comes from the line of Ahmed Muraka from Access Capital. Please go ahead. 17:52 17 minutes, 52 seconds Yeah. Hi, uh, good evening. Thanks for the opportunity. Um so the first question is on the update on the planned 17:59 17 minutes, 59 seconds expansions at Jalmare and Northeast. So in the last call you had alluded to that. So what is the status and by when do you think it can be actioned? 18:10 18 minutes, 10 seconds I think northeast has already started trial run and um I think 18:18 18 minutes, 18 seconds yeah go ahead. Sorry, I was talking about the 22 to2.5 million and new grinding unit that you had uh highlighted in the last quarter. 18:31 18 minutes, 31 seconds So uh a um last year we had added 2.4 million t of grinding in the mi. The 18:38 18 minutes, 38 seconds idea of starting work on another split GU we will probably do it as we ramp up the GU that we added last year. So as 18:47 18 minutes, 47 seconds you we expand capacity and uh the clinker comes on board and we ramp up utilization of a previously added unit we'll start work on the next split GU. 18:56 18 minutes, 56 seconds So I think we are still a couple of quarters away before we give clarity on that one. And on Jesselme the work on 19:04 19 minutes, 4 seconds land acquisition and getting permissions and working towards the EC the work is on and we have time up until March 2026 19:14 19 minutes, 14 seconds before which we can break ground and come back to you. By then we are reasonably also optimistic that we'll have an outcome on what happens in the 19:22 19 minutes, 22 seconds JP transaction. So I think wait till March 26 before we'll update you on both the northeast and the jester main expansion. 19:34 19 minutes, 34 seconds Sure. Thanks. Also on um on on on the uh statement on profitable growth uh which uh I think was mentioned last quarter 19:41 19 minutes, 41 seconds and this quarter too. Uh but when I see realization actually surprisingly it has dropped 4.3% actually which is higher I believe than industry uh price behavior. 19:51 19 minutes, 51 seconds So one why would that I mean the declines be higher uh than the industry. 20:00 20 minutes I think um again as I said every quarter there are uh there will be you know 20:07 20 minutes, 7 seconds regional mix there will also be segment mix which will impact I think directionally we are heading in the 20:14 20 minutes, 14 seconds right direction and I think uh you know uh we we will not be able to comment quarter to quarter because there are lots of variables which which are at 20:23 20 minutes, 23 seconds play in every micro market but directionally you will see that you know after five quarters of three-digit uh eB 20:30 20 minutes, 30 seconds beta uh Q1 of this year and Q2 of this year is fourdigit and I think consistently we think we are improving our price positioning in every market 20:39 20 minutes, 39 seconds and um I think um you know we are uh we are on the right track 20:46 20 minutes, 46 seconds got it and and any guidance on volume generally like I believe you've been growing one and a half times of market so any number that you would want to 20:54 20 minutes, 54 seconds give for that I don't want to give any number but I just I think H2 will be better than H1 hopefully. 21:04 21 minutes, 4 seconds And just lastly if I can uh the KPIX cut that was highlighted at 3,000 crores. Uh 21:10 21 minutes, 10 seconds so what exactly has led to that? Better credit terms is what was said but generally if you can explain it a bit more. 21:24 21 minutes, 24 seconds Yeah. Go ahead. 21:25 21 minutes, 25 seconds Yeah. As I said uh with some of the critical uh equipment suppliers we were able to negotiate uh better credit terms. So that is uh reflected in lower 21:33 21 minutes, 33 seconds outgo uh cash flows in this year still the next year. 21:38 21 minutes, 38 seconds Our projects are on schedule in terms of you know commissioning time. So there is no uh you know delay in that it's you know both the projects are on time. 21:49 21 minutes, 49 seconds Okay. Sure. I'll I'll come back in the queue. Thank you so much. Thank you. 21:54 21 minutes, 54 seconds Thank you. We take the next question from the line of Satya Jen from Ambit Capital. Please go ahead. 22:02 22 minutes, 2 seconds Hi, thank you so much. Uh just had a question on the compensation structure change. That seems interesting. Can you 22:09 22 minutes, 9 seconds maybe it seems like there was no variable compensation structure earlier. 22:13 22 minutes, 13 seconds Correct. And what are the changes um outlined in this? 22:20 22 minutes, 20 seconds Uh sorry uh can you repeat the question please once again just wanted to ask on the variable um in the presentation it is mentioned that 22:28 22 minutes, 28 seconds there is a variable compensation structure that has been introduced does it mean there was no variable compensation earlier and what are the changes just want to understand the 22:36 22 minutes, 36 seconds metrics yeah so earlier I think before this year 22:42 22 minutes, 42 seconds it was all 100% pay was fixed pay um you know we have we have introduced a variable pay structure for the senior 22:50 22 minutes, 50 seconds Senior and middle management from this year onwards which is uh financial year 26 onwards and this will be the first 22:57 22 minutes, 57 seconds year and uh the there are three uh you know variables which will impact this. 23:04 23 minutes, 4 seconds One is the company performance, second is the individual performance and third is safety. So these are the three metrics and the weight is different at 23:12 23 minutes, 12 seconds uh senior level and middle level. At a senior level, company performance has a larger weight. At a mid-level, a individual performance has a slightly, 23:20 23 minutes, 20 seconds you know, larger weight than company performance. So, I think overall uh you know, we just want to uh start this journey this year and from next year 23:29 23 minutes, 29 seconds onwards or over the next few years, we'll make it more broader and the total amount of variable pay will be around 23:37 23 minutes, 37 seconds you know uh 15 to you know 25% of total pay. 23:44 23 minutes, 44 seconds And how do you define company performance? Is it um ROC? Is it um volume? Is there any metric that you would use to measure the performance? 23:57 23 minutes, 57 seconds I think uh these will be our internal metrics uh where we will have we we have certain budgets in terms of what we need 24:04 24 minutes, 4 seconds people to perform on but um these metrics will basically align um management compensation to shareholder outcomes. 24:14 24 minutes, 14 seconds Okay. And secondly, maybe uh touching on the question that Amit had asked earlier in terms of um maybe directionally um if 24:25 24 minutes, 25 seconds you look at volumes maybe for um this year and next are you looking to grow in line with market is what is the thought process 24:33 24 minutes, 33 seconds um generally on I know profitable growth but just wanted to ask this question another way. Would you grow in line with industry? would you look to take market share? 24:43 24 minutes, 43 seconds I think I've said this repeatedly uh that our strategy will be different in different micro markets uh depending 24:49 24 minutes, 49 seconds upon what our objectives are and um I think other than that I just you know uh 24:56 24 minutes, 56 seconds cannot say more because depending upon the demand supply situation depending upon the uh you know strategic 25:04 25 minutes, 4 seconds importance of a micro market to us we will decide uh and depending upon how much excess capacity we have we will decide our strate strategy based on uh based on these these parameters. 25:15 25 minutes, 15 seconds So I think um uh you know I I cannot reveal more than that because there there will be a different strategy in 25:23 25 minutes, 23 seconds every market. In some markets we will go for share and some markets we'll go for margin. 25:28 25 minutes, 28 seconds Okay fair enough. Uh thank you and uh wish everyone happy. Thank you. 25:35 25 minutes, 35 seconds Thank you. We take the next question from the line of Sumangal Natia from Kotto Securities. Please go ahead. 25:43 25 minutes, 43 seconds Uh yeah, good evening everyone. Uh so my first question is on the capacity expansion plan. So we are still continuing with the 75 million t milestone for FI28. 25:53 25 minutes, 53 seconds So my question is uh just want to understand the 14 million ton gap which we have uh 13 and a half. Do we have uh 26:02 26 minutes, 2 seconds are we uh uh uh uh do we have a bottomup uh organic plan or there is JPA or some 26:09 26 minutes, 9 seconds other uh inorganic uh contribution uh also in this 75 million tons. 26:19 26 minutes, 19 seconds So Mangal I've said this earlier also I think uh you know we are waiting for the JP outcome and uh which we expect 26:26 26 minutes, 26 seconds hopefully this quarter. So let's see how it plays out and parallelly we are developing uh all other projects to be 26:33 26 minutes, 33 seconds in the state of readiness. So um basically I think we will be able to give you you know some more color on 26:40 26 minutes, 40 seconds this by you know March March 26 and I as I said you know we still have two years after that. So we we we don't 26:49 26 minutes, 49 seconds see a u you know we don't see a major challenge. We also have two 2 and a2 million tons of low lead time expansion possible based on the northeast linker. 27:00 27 minutes So I think I will be able to give more visibility only in March 26. 27:06 27 minutes, 6 seconds Understood. And uh okay uh okay maybe I'll keep this discussion for later. Uh 27:13 27 minutes, 13 seconds second question sir is on uh uh uh the volumes uh 3% odd growth. uh do we think 27:21 27 minutes, 21 seconds we have kind of compromised some market share for uh the realization and profitability as we discussed earlier or 27:30 27 minutes, 30 seconds our sense is that the market itself was quite weak in the second quarter. 27:36 27 minutes, 36 seconds So mangal as I said you know our goal is profitable growth in some markets uh based on uh you know what is uh our 27:45 27 minutes, 45 seconds unutilized capacity and the demand supply situation uh and in some and and you know what is our strategic goal we 27:52 27 minutes, 52 seconds will go for market share in some markets where you know we have high utilization of capacity and again depending upon the 27:59 27 minutes, 59 seconds competitive dynamics we may go for you know better margins so I think there is no you know one size fits all approach 28:07 28 minutes, 7 seconds here. I think we want to be very very focused and balanced in our approach and I think u you know I cannot reveal more 28:15 28 minutes, 15 seconds than this micro market by micro market how we are going to play it. Understood. And just one last question. 28:22 28 minutes, 22 seconds Uh it was good to see that we've offloaded some uh stake in ex. So are we continuing here and do we expect in the 28:29 28 minutes, 29 seconds next I mean any timeline you would like to indicate as to when do we completely exit? 28:36 28 minutes, 36 seconds I think u you know I think there was a recent u a steady order on uh the fact 28:44 28 minutes, 44 seconds that there was some uh insider trading in ex shares uh you know by the uh some 28:53 28 minutes, 53 seconds people involved in the regulatory agency. So let us see you know what happens and how this uh will play out. I 29:02 29 minutes, 2 seconds think this is we have said that this is not a core investment for us. It's a short-term investment. There is a overhang uh because of this um you know 29:11 29 minutes, 11 seconds regulation but it seems like you know there is you know probably some investigation happening by the government. Uh so we need to just figure 29:19 29 minutes, 19 seconds out you know how this plays out and I think um I I cannot say more than this. 29:25 29 minutes, 25 seconds We have already you know sold more than half our position and the rest of it you know we will liquidate as and when we need the money. 29:33 29 minutes, 33 seconds Got it. Got it. Thank you and all the best. Thank you. 29:38 29 minutes, 38 seconds Thank you. We take the next question from the line of Pinakin from HSBC. Please go ahead. 29:45 29 minutes, 45 seconds Yeah. Uh thank you very much. Uh so I have three quick questions. My first is on cost. uh we have seen uh petco prices 29:53 29 minutes, 53 seconds uh uh in international markets inch higher USD INR has changed uh so should we assume that the costs have bottomed 30:00 30 minutes out and they would move higher in the second half or or the seasonally high volumes uh should offset any variable 30:07 30 minutes, 7 seconds cost increase uh the petco prices currently are around 30:14 30 minutes, 14 seconds 116 so naturally there will be some pressure of uh cause pressure on the external front um coming into the cost 30:21 30 minutes, 21 seconds uh but of course we are also on track to reduce our variable cost. So we'll try to partly cover this 30:28 30 minutes, 28 seconds and uh ensure that the impact on the candle is minimum. 30:32 30 minutes, 32 seconds Uh sure. Uh my second question is again on going back to pricing just trying to square uh the uh you know the price 30:39 30 minutes, 39 seconds decline that Dalvia reported versus flat prices in the market. uh have has there been a material change in the trade mix 30:47 30 minutes, 47 seconds or uh the ratio premium cement being sold this quarter versus the previous quarter which would partly explain uh 30:54 30 minutes, 54 seconds the headline ASP decline the trade percentage is 62% which is 31:03 31 minutes, 3 seconds lower than the previous quarter so that is one of the reasons uh you see the relations seem lower 31:10 31 minutes, 10 seconds sure uh and my third question uh is uh again on industry pricing. Uh do we uh 31:17 31 minutes, 17 seconds if the demand does improve in the second half of the year as government capex picks up uh and the other initiative um 31:24 31 minutes, 24 seconds the economy starts flowing through uh can we see higher prices by the industry especially given the way Petco prices have moved higher or cement price hikes 31:33 31 minutes, 33 seconds look difficult uh in the current uh regulatory environment. 31:40 31 minutes, 40 seconds I think right now the industry has passed on the entire you know reduction of GST and I think our you know focus 31:48 31 minutes, 48 seconds right now is to ensure that we comply with the you know um uh you know law 31:56 31 minutes, 56 seconds that whatever is the gain has been completely passed on to all our customers. I think how will prices behave in the future is anybody's guess. 32:04 32 minutes, 4 seconds All I can say is if I look at the last quarter, the last quarter, you know, was despite being a monsoon quarter, prices were reasonably stable. So I think um 32:14 32 minutes, 14 seconds I'm a little bit more, you know, optimistic in terms of price stability. 32:19 32 minutes, 19 seconds Um you know, if demand improves, you know, hopefully prices should remain stable from there. 32:31 32 minutes, 31 seconds Uh does that answer all your questions? Yes, it does. 32:37 32 minutes, 37 seconds Thank you. We take the next question from the line of Naven Sahadeo from ICI Securities. Please go ahead. 32:48 32 minutes, 48 seconds Yeah, good evening and uh thank you for the opportunity also congratulations on maintaining the four-digit a bit of a 32:55 32 minutes, 55 seconds number. Only one question uh in this reduced GST rate regime are you 33:01 33 minutes, 1 second witnessing any trend of premiumization in the sense uh as you mentioned that prices uh is anybody's guess and maybe 33:10 33 minutes, 10 seconds like you know we want all the consumers to benefit first before the prices take their own course but from the 33:16 33 minutes, 16 seconds premiumization front is there any gain that you are seeing either for you or at a broader industry uh level and in the 33:25 33 minutes, 25 seconds same breath. If I may also ask, if the prices on its own have come down, then is there a way that uh like you know uh 33:34 33 minutes, 34 seconds certain uh volume push schemes to dealers could be controlled a bit so as to fetch a better uh like you know 33:43 33 minutes, 43 seconds profitability or maybe a better realization for us. These were my questions. Thank you. 33:51 33 minutes, 51 seconds I think a premium product uh you know percentage is flat only uh from last quarter to this quarter. I mean on a buy 34:00 34 minutes basis and as far as again dealer margins are concerned um you know this will depend upon the competitive pressures in 34:07 34 minutes, 7 seconds every market. You have to make sure that your value proposition for your channel is competitive compared to what other brands offer. And it also depends on how 34:15 34 minutes, 15 seconds fast your rotation is, how quickly uh your product sells so that they can make um you know they can turn their inventory quickly. So you know I I think 34:25 34 minutes, 25 seconds um the only good news is that because uh GST rates have come down there is more liquidity in the system. Uh so I think 34:34 34 minutes, 34 seconds uh that should um uh you know that should that should impact the uh ability 34:43 34 minutes, 43 seconds of the channel to you know to take more cement than or finance more as as compared to what they would do earlier. 34:52 34 minutes, 52 seconds Thank you. 34:55 34 minutes, 55 seconds Thank you. We take the next question from the line of Rashi from city. Please go ahead. Thank you. Just from the cost 35:03 35 minutes, 3 seconds side, uh how much is the petco or the fuel consumption cost today versus $100 in the second quarter? 35:14 35 minutes, 14 seconds Currently, it has come to about 1.38 uh on per kal basis and you can expect a marginal increase in the coming quarter. 35:23 35 minutes, 23 seconds And are you still maintaining a cost reduction target of 150 to 200 over the next two years? Yes please that is on track. 35:32 35 minutes, 32 seconds Okay just on the um incentive the acrual you said was 60 cr and receive was 50 cr just double checking the number. 35:40 35 minutes, 40 seconds Yeah 64 cr approval and 50 cr collection and we expect to catch up on the collection in the quarter three. 35:51 35 minutes, 51 seconds Got it. uh capex for X527 that we expect to be about uh close to 35:59 35 minutes, 59 seconds about 4,000 crores and just last question on the uh on the 36:10 36 minutes, 10 seconds volume front for the industry and for your like I think earlier you were quantified that you were expecting a 6 to 7% industry volume growth for FI26 36:20 36 minutes, 20 seconds um is there still some quantific ification from your side and second is are you likely to sort of be in line with the industry or higher 36:32 36 minutes, 32 seconds next can you repeat the question please Rashi sorry so FI20 I think earlier you had highlighted that you are expected the 36:40 36 minutes, 40 seconds industry volumes to grow 6 to 7% in FI26 so is like are you still is there still a quantification to your FI26 36:48 36 minutes, 48 seconds expectation industry And where do you stand with the Vi industry for this year? 36:57 36 minutes, 57 seconds Say uh the first two quarters growth has not been to the expectations but still we expect that uh uh in the second half 37:05 37 minutes, 5 seconds the growth should be much better and of course our focus continues to be on the profitable growth and exact levels will not be able to hazard against. 37:17 37 minutes, 17 seconds All right. Thank you. 37:21 37 minutes, 21 seconds Thank you. The next question comes from the line of Pratik Kumar from Jeff. Please go ahead. 37:31 37 minutes, 31 seconds Yeah. Good evening. Uh congrats for the set of numbers. My first question is on benefit of removal of cold sets. You said 20 cr for first second half. So 37:40 37 minutes, 40 seconds full year benefit uh analyze like is like kind of 40 cr benefit from this and 60 cr loss from your other incentives which you are acrewing. Is that right? 37:50 37 minutes, 50 seconds Yeah. 37:51 37 minutes, 51 seconds Yeah. Current year benefit is about 40 crores because we are still carrying some opening stock but next full year it'll be close to about uh 50 to 55 37:58 37 minutes, 58 seconds crores for say next year benefit is 50 to 55 cr. That's what you said. 38:07 38 minutes, 7 seconds That's right. Yes. Because current year impact gets slightly reduced due to the opening stock which we are carrying. 38:15 38 minutes, 15 seconds Okay. And coal prices have generally been languishing versus pet stock. it has been rising. So is there an evaluation on increasing pole mix in the 38:23 38 minutes, 23 seconds business also in context of the SP rate changes uh benefit related to that? 38:30 38 minutes, 30 seconds Yeah, we do take a call depending on the uh suitability of the pricing between coal and petco and uh whatever is the cheapest uh fuel mix we try to use it. 38:42 38 minutes, 42 seconds Um okay one other question uh we recently announced uh KMP key management from BCG. Uh can you discuss that role please? 38:56 38 minutes, 56 seconds We've hired a person who our chief strategy officer and his name is Aneruda. 39:02 39 minutes, 2 seconds He has come from Boston Consulting Group and he has 15 years of experience in building materials and also leading growth and transformation for several of his clients. 39:15 39 minutes, 15 seconds So uh so uh he's like kind of replacing Mr. Bansil who was earlier transformation officer as well. 39:27 39 minutes, 27 seconds No, I think he's the chief strategy officer of the company and um uh you know uh 39:34 39 minutes, 34 seconds I don't think he's uh you know that role is shared between the CFO and the chief strategy officer. 39:45 39 minutes, 45 seconds Sure. Thank you. All the best. Thank you. Thank you. 39:51 39 minutes, 51 seconds The next question comes from the line of Rajesh Ravi from HDSC securities. Please go ahead. 39:59 39 minutes, 59 seconds Hi team, good evening. And uh my first question pertains to this incentive run rate. Uh you mentioned to come down to 40:06 40 minutes, 6 seconds 240 cr is for this financial year or this is like or next year onward the run rate you're talking about? 40:16 40 minutes, 16 seconds 250 cr which I mentioned was for the current financial year which is taking a GST cut impact of the first second half 40:23 40 minutes, 23 seconds and next year it can be around again 200 crores. 40:27 40 minutes, 27 seconds Okay. So from 100 rupees per ton which we are currently seeing for the last few quarters this should come down to 60 rupees per ton. Is this understanding correct? 40:36 40 minutes, 36 seconds Yeah close to 60 55 rupees or so. Yeah understood. And second if I look at your trade sales share you which you mentioned at 62% is almost at 4 year 40:45 40 minutes, 45 seconds low. So any specific uh reason or strategic thought behind uh you know being more aggressive in nontrade 40:59 40 minutes, 59 seconds sorry what's what can you please repeat your question. So your trade sales you 41:05 41 minutes, 5 seconds know which I mentioned is 82% for Q2 if I look uh at the numbers shared earlier 41:14 41 minutes, 14 seconds this is almost 4 year low this quarter trade sales shares so is there any specific thought uh to be aggressive in 41:21 41 minutes, 21 seconds the non-trade segment and hence the trade sales is lower 41:28 41 minutes, 28 seconds I don't think so I think um a few percentage point var ation may happen quarter to quarter but uh you know I I don't think it's material. 41:39 41 minutes, 39 seconds Okay. So broadly can we assume that you would be targeting to keep a trade mix a trade sales sales between 60 to 65%. 41:48 41 minutes, 48 seconds I don't think we want to give a trade sales target. Um I think it's again as I said a strategy that we will follow in 41:55 41 minutes, 55 seconds terms of achieving profitable growth. Um and uh I I don't think we want to give you a guidance on what will be our trade mix. 42:04 42 minutes, 4 seconds Okay. Okay. And third is on the uh cement prices. What we understand from channel check that east market cement 42:12 42 minutes, 12 seconds prices in October have come up more than uh the GST pass through. Any comments on that? 42:21 42 minutes, 21 seconds I've already given the comment in my opening remarks. We have passed on the entire GST benefit. 42:26 42 minutes, 26 seconds Right. Yes. No, what we hear is that the prices have come down beyond the GST pass through. Not just the GST pass 42:34 42 minutes, 34 seconds through 30 odd rupees but even prices have corrected beyond that and given that Tamiladu market uh December quarter is generally weak given it's a monsoon 42:43 42 minutes, 43 seconds quarter. So would it be that Q3 we would be looking at a NSR decline Q1 Q? 42:51 42 minutes, 51 seconds I think we cannot forecast prices and um I think u as I said earlier also we are 42:59 42 minutes, 59 seconds in the business of making long-term investments and making sure that um you know uh we create um structural 43:07 43 minutes, 7 seconds advantages on cost and deepen our cost leadership and you know build a panindia footprint and build scale in our 43:15 43 minutes, 15 seconds business. I don't think we'll be able to predict prices quarter on quarter and I think we are you know uh you know not in the business of predicting quarterly prices. 43:24 43 minutes, 24 seconds Okay. Last question on the freight expenses per ton which has come down to around uh 80 rupees per ton while lead 43:31 43 minutes, 31 seconds distance number which we look at is come up by 7 km on a quarteron quarter basis. 43:37 43 minutes, 37 seconds So uh how do we explain this reduction in pattern number while lead distance is higher. 43:44 43 minutes, 44 seconds We are on our uh cost reduction journey logistic also. So that is also uh contributed and of course very small portion is also because of the railway 43:53 43 minutes, 53 seconds season search charge this year we had a 2 months uh relief from the business search only one month. 44:00 44 minutes Okay. Okay. And did you share that uh because of this coalition what will be the savings? Yeah, you can answer and uh 44:10 44 minutes, 10 seconds saving the coal the question the savings from the recent reduction in the coal sales by 400 500 rupees per 44:18 44 minutes, 18 seconds month. How much that would relate into? 44:23 44 minutes, 23 seconds Yeah, the coal benefit uh in the second half this year is about 20 cr and next 44:30 44 minutes, 30 seconds year be full year basis will be about 50 to 55 cr. So, Okay. And happy Diwali to the team. 44:40 44 minutes, 40 seconds Thank you and same to you. 44:42 44 minutes, 42 seconds Thank you. We take the next question from the line of Shraan Sha from Dollar Capital. Please go ahead. 44:50 44 minutes, 50 seconds Yeah. Uh thank you sir. Uh sir just wanted to understand sir uh when we in the opening remarks when we said that we 44:59 44 minutes, 59 seconds are looking at 7 to 8% kind of kegger for the decade and when two to three people have asked in terms of the growth 45:07 45 minutes, 7 seconds for this year for industry also we are we are hesitant hesitant to even answer uh that so just trying to understand why 45:14 45 minutes, 14 seconds can't even the 1h is already is there so I understand we can't uh guide for our volume growth But at for industry a ballpark number would would also help. 45:25 45 minutes, 25 seconds So just trying to understand what's uh what is stopping us to even even give a give us some number. 45:33 45 minutes, 33 seconds I think what is stopping us from giving a number is that it is hard for us to predict quarter on quarter what will happen and I think on a longerterm basis 45:42 45 minutes, 42 seconds we have seen that there is a easier um uh you know model that is easier to predict because even though some 45:50 45 minutes, 50 seconds investments may get postponed one year but next year they catch up you know so uh quarteron quarter it's very hard but 45:58 45 minutes, 58 seconds on a long-term basis we have seen that in a cycle where the growth is infra infrared infrared 46:07 46 minutes, 7 seconds u the the cement growth is typically 1.2 to two times the GDP growth and I think that is something that we have seen over 46:16 46 minutes, 16 seconds you know many many years across cycles and year on year it may sometimes be quite bumpy and unpredictable but then 46:24 46 minutes, 24 seconds it it it catches up so if there is a growth which is lower some year it catches up the next year or the year after and the reverse also happens so 46:33 46 minutes, 33 seconds overall the you know thing that we've seen is 1.2 two times GDP growth is what the cement sector is likely to grow at. 46:40 46 minutes, 40 seconds Yeah. And second sir just wanted to Yeah sir. Yeah I got it. Uh 46:50 46 minutes, 50 seconds yeah I understand sir second is on on the capex capex front. So just wanted to understand I understand we will be announcing the Jelmmeare expansion 46:58 46 minutes, 58 seconds obviously depends on the uh JP in terms of the timing but by March but broadly so currently whatever the bilgam pune 47:06 47 minutes, 6 seconds karapa which is already announced and ongoing and the the Assam one where trial run is there so just wanted to 47:13 47 minutes, 13 seconds understand how much is is still pending to be spent on that and broadly even if let's say Jason where we go for a five 47:21 47 minutes, 21 seconds or six odd million tu uh broad understanding would be will it be a 56,000 odd k so I was just trying to 47:29 47 minutes, 29 seconds understand so roughly it seems like a 14 15,000 cr needs to be spent by fi 28 if 47:36 47 minutes, 36 seconds if you want to achieve uh so I am not even including the JP so then the number would even go higher so ultimately that 47:43 47 minutes, 43 seconds will impact our net date decently so uh if you can help us 47:56 47 minutes, 56 seconds So if you see the last two projects that we've announced each Delgo and Karapa at about 32 to 3,800 Kes uh for the green 48:04 48 minutes, 4 seconds field that we'll do at Jesselme because it'll be a pure green field in the newer market. It'll be close to what the industry is used to achieving between 48:12 48 minutes, 12 seconds $90 to $100 per ton. So that translates to about 5,000 N cores for a 5 million ton plant. 48:20 48 minutes, 20 seconds ballpark as the size of the kill may go up and down by a million. The numbers could change but I think ballpark $9200 48:27 48 minutes, 27 seconds per ton is achievable even in that market where it's going to be a green field. 48:34 48 minutes, 34 seconds Yeah. Yeah. So, so that's what I am saying. So, this Belgam Kaddapa put together is 6,800 K. Jelmer is 5,000 K. 48:42 48 minutes, 42 seconds that comes at 12,000 odd crus if you can help us in terms of assam what is left to be spent and then there will be and 48:50 48 minutes, 50 seconds maintenance capex will also will be there so that's the way I just wanted to understand even even to reach a kind of 48:58 48 minutes, 58 seconds a 50 70 million t also we need to spend 15 49:04 49 minutes, 4 seconds 16,000 odd k by fy 28 so how one can look at in terms of the net 49:14 49 minutes, 14 seconds Based on the announcements which you have made currently you can expect the uh capex to be about 10,000 to 10,500 crores and additional 49:23 49 minutes, 23 seconds capex which comes uh maybe about uh then take a ballpark of 3500 to 3800 crores 49:30 49 minutes, 30 seconds or so for 6 million tons capacity sorry 49:38 49 minutes, 38 seconds sir can you repeat this 10,000 to 10,500 K you said for uh which year? For the announcement till Ap 28. 49:47 49 minutes, 47 seconds Okay. Okay. Got it. Got it. Okay. Okay. 49:51 49 minutes, 51 seconds I think but this is this is this is ballpark. I think firm park aics plan. I think we'll give you a better sense for March of 26. 49:59 49 minutes, 59 seconds Yeah. Yeah no no no no sir that I understand what the the point point is that the the uh uh even if we let's say the difficulty is that the given the 50:08 50 minutes, 8 seconds supply which will be coming in terms of the capacity which will are are there for next two years particularly 27 uh 50:15 50 minutes, 15 seconds and the way or maybe the GST cut has happened and maybe the focus can shift to the non-trade the in terms of the 50:23 50 minutes, 23 seconds price high growth would be a very very difficult uh so the only option increase the cost reduction to to improve the 50:32 50 minutes, 32 seconds profitability uh that also kind of to limit it. So the net debt would be significantly rising from here on. So that's the worry. 50:47 50 minutes, 47 seconds The net debt as we said earlier also uh with all these suspensions also will be comfortably below 2 is to1. Net to beta will not cross 2 is to1. 50:56 50 minutes, 56 seconds Okay. Thank you sir and happy Diwali. Yes, thank you sir and happy Diwali. 51:03 51 minutes, 3 seconds Thank you. We take the next question from the line of Milan Ragenwire from B Capital Markets Limited. Please go ahead. 51:13 51 minutes, 13 seconds Thank you for this opportunity. 51:16 51 minutes, 16 seconds Just wanted to uh understand the management assessment on the headwinds on the cost side probably from here on 51:25 51 minutes, 25 seconds to say the next two quarters or beyond that. 51:33 51 minutes, 33 seconds I think um we see some uh rise in Petco cost uh 51:40 51 minutes, 40 seconds recently but um again it is very very driven by geopolitical factors which is quite volatile and uncertain. 51:50 51 minutes, 50 seconds Um other than petco I think we do not see any major cost spikes in any other 51:56 51 minutes, 56 seconds area and um I think as Dhander said we will try to minimize this cost spike as 52:04 52 minutes, 4 seconds much as possible because the second half base is uh 52:10 52 minutes, 10 seconds slightly uh lower. So that that was the reason uh the the the question was uh my 52:18 52 minutes, 18 seconds next question is on the uh the the uh the CFO earlier mentioned that the second quarter industry growth was weak. 52:27 52 minutes, 27 seconds Any number that you would like to put on that? 52:32 52 minutes, 32 seconds I think we think it's likely to be low single digit. 52:37 52 minutes, 37 seconds Okay. And and finally just if you can allow me one uh any any clinker fields in the in in our uh volume. 52:49 52 minutes, 49 seconds No not really marginal no nothing. 52:59 52 minutes, 59 seconds Okay, thank thank you. That is all my Thank you. We take the next question 53:06 53 minutes, 6 seconds from the line of Sakit Kapoor from Kapoor and company. Please go ahead. 53:14 53 minutes, 14 seconds And thank you for the opportunity. As you alluded to the fact that the impact of the higher petco prices and also the 53:22 53 minutes, 22 seconds the lowering of uh the the GS the compensation also it will get mitigated 53:29 53 minutes, 29 seconds uh with uh the uh other uh costalization. So so what should be the steady state number for AITA pattern 53:37 53 minutes, 37 seconds that that we can look uh look look forward for the sec second half. uh and uh so we we have seen this decline of uh AITA quarterly AITA from 883 to uh 696. 53:50 53 minutes, 50 seconds So if you could just give the the the the factors that has led to the decline because the volume decline was uh was 53:58 53 minutes, 58 seconds only marginalizability 54:09 54 minutes, 9 seconds I'll try to cover your answer question the reduction of the profitability from Q1 to Q2 this is a seasonal impact which 54:16 54 minutes, 16 seconds comes in the Q2 every year because uh first the monsoon season uh leads to lower volume and the some of the plants 54:23 54 minutes, 23 seconds go into shutdown. So those costs will come into picture and since we have seen in the current year the prices they have held up uh so ultimately the 54:31 54 minutes, 31 seconds profitability of second half will largely be dependent on how the prices behave but we are quite confident that the profitability will be much higher 54:39 54 minutes, 39 seconds volumes will also be much healthier in the second half giving exact guidance may not be the right way. Right sir sir 54:46 54 minutes, 46 seconds can you give me the last year annual numbers what was our volume we have the first half right now and how was the 54:54 54 minutes, 54 seconds second half numbers where s full year numbers were 28.8 million tons 55:02 55 minutes, 2 seconds and minus the first half 29.2 29 25 okay so we we are equitable in in that 55:10 55 minutes, 10 seconds way the first the H1 and the H2 have remained almost the same for the last fiscal year that that is the fair understanding so we are expecting on the 55:19 55 minutes, 19 seconds on the on the base of what H2 was last year to we will be growing uh just like 55:27 55 minutes, 27 seconds the industry trend will be that is what the uh base understanding should sorry the last year numbers were 29 29.4 55:35 55 minutes, 35 seconds million t and this year first half we are at about 13.9 million t h1. 55:42 55 minutes, 42 seconds Okay. Last year it was 29.4 and this year we have done 13 13.9. 55:50 55 minutes, 50 seconds Okay. That that translates into 15.5 for H2. So as as sir was alluding to the fact that we are looking to we are 55:58 55 minutes, 58 seconds looking to uh exhibit volumes in excess of this for for 15.5 for the H2. This is 56:06 56 minutes, 6 seconds what the our endeavor will be depending upon how the market uh conditions are. 56:13 56 minutes, 13 seconds Yes please. Yeah. 56:16 56 minutes, 16 seconds Uh right sir and taking into account the on the infrastructure part of the story and uh so we have seen that in lot in 56:24 56 minutes, 24 seconds lot of EPC players uh have been facing the cash crunch uh over over the last 9 56:30 56 minutes, 30 seconds to 12 months. So uh how uh have you factored uh have you factored that also in in your in your growth number because 56:39 56 minutes, 39 seconds uh cement, steel and other element goes into the infrastructure and and those and and your and your main buyers are these EP A E A E A E A E A E A E A E A E 56:47 56 minutes, 47 seconds A E A EC pairs only who who goes who are the people who who are building these infrastructures. So how do those th 56:54 56 minutes, 54 seconds those cash for them works out in terms of uh the payment which will be made to you? I'm just talking about the 57:01 57 minutes, 1 second ecosystem getting choked up because of this receable payable mismatch. 57:15 57 minutes, 15 seconds I'm there. Hello. 57:17 57 minutes, 17 seconds Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Thank you. 58:29 58 minutes, 29 seconds Hey, hey, hey. 59:38 59 minutes, 38 seconds ladies and chairman we have the management line reconnected sake if you can please repeat your question. Yes, I will repeat it sir. 59:46 59 minutes, 46 seconds Sir, as we have seen that our uh we are more inclined towards the the the non-trade mix that is the sales of institute. 1:00:00 1 hour Hello sake are you there? 1:00:05 1 hour, 5 seconds We are not able to hear you. Could you please unmute from your end? No. 1:00:11 1 hour, 11 seconds Yes. Now we can hear you sake. Please go ahead. Yeah, you can hear me. Yeah. Yeah. Can you hear me now? Hello. Yes, I can. 1:00:19 1 hour, 19 seconds Yeah. Yeah. Thank you, sir. Uh uh as you were mentioning in your opening remark that uh we have a higher uh tra 1:00:27 1 hour, 27 seconds non-trade mix that means majority of the sales is towards institutional uh that is the government. So how are the re 1:00:34 1 hour, 34 seconds receable days uh being from the government side? Since we are hearing lot a lot of payment uh delays from uh 1:00:42 1 hour, 42 seconds uh those funds, we do not see any spike in receivables and I think um you know the receivable days are normal as it was earlier. 1:00:56 1 hour, 56 seconds Thank you ladies and gentlemen. We take that as the last question and I now hand the 1:01:03 1 hour, 1 minute, 3 seconds conference over to Mr. Punit Dalmia for his closing comments. 1:01:08 1 hour, 1 minute, 8 seconds Uh thank you very much uh you know for for your interest in um Dalmia. I once again uh wish all of you a very happy 1:01:17 1 hour, 1 minute, 17 seconds prosperous and safe Diwali and I look forward to seeing you next year in after the third quarter in 2026. 1:01:25 1 hour, 1 minute, 25 seconds Thank you. 1:01:25 1 hour, 1 minute, 25 seconds Have a great time. Bye. On behalf of Dalmia Bharat Limited, that concludes this conference call.