Orient Cement Ltd — Q4 FY26

Orient Cement Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=iA7foe25U7k Published: 9 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Ambuja Simmons Limited Q4 FYI26 earnings call hosted by JM 0:09 9 seconds Financial Institutional Securities Limited. As a reminder, all participant lines will be on listenonly mode and there will be an opportunity for you to 0:17 17 seconds ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:25 25 seconds zero on your touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Dhmesha from JM Financial. Thank you and over to you. 0:37 37 seconds Thank you everyone. Without much delay, I will transfer the call to Mr. Deepak Balawani, head of investor relations. 0:45 45 seconds Mr. Deepak, over to you. 0:48 48 seconds Uh thank you. On behalf of Ambuja Cement, I'm pleased to welcome all the participants to our earnings call for 0:55 55 seconds the fourth quarter of FY 26. Ambuja Cement is the ninth largest building material solution company globally and part of the diversified Adani portfolio. 1:05 1 minute, 5 seconds Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not 1:12 1 minute, 12 seconds guarantees of future performance and may involve unforced risk and uncertaintity. 1:17 1 minute, 17 seconds We remain committed to further strengthening our disclosure standards and improving the quality of our capital market communications to the best in the 1:24 1 minute, 24 seconds industry. We are pleased to have with us on the call Mr. Vinodi, chief executive officer and Mr. Roy Coney, chief financial officer. Now I invite Mr. Bi 1:34 1 minute, 34 seconds to provide his valuable insight on the quarterly performance. 1:37 1 minute, 37 seconds Yeah, thank you Deepak. Thanks DHS. Good evening u everyone. uh FY26 was a year 1:46 1 minute, 46 seconds of resilience for the Indian cement sector marked by industry consolidation and the GST 2.0 reforms on one side 1:54 1 minute, 54 seconds while the adverse and the extended weather conditions global geopolitical factors and the various state elections 2:03 2 minutes, 3 seconds also affected the industry and demand in some or the other way. Against this 2:09 2 minutes, 9 seconds backdrop, Ambuja delivered a resilient performance for the year, achieving its 2:16 2 minutes, 16 seconds highest level annual sales volume of 73.7 million tons up 16% Y on Year on 2:26 2 minutes, 26 seconds year in that manner and on a normalized basis the IBIDA of rupees 6,539 2:33 2 minutes, 33 seconds crores up 31% at rupes 88. 87 per metric ton which is 2:40 2 minutes, 40 seconds on a PMT basis of 12% and with fat of rupes 2647 cr up 17%. 2:48 2 minutes, 48 seconds The company continues to remain debt free and with highest credit rating annual volumes grew well ahead of the 2:57 2 minutes, 57 seconds industry. Trade sales volume grew steady at 10% while the premium cement accounted for 35% of the trade sales 3:05 3 minutes, 5 seconds during the year reflecting sustained progress on premization. 3:10 3 minutes, 10 seconds During uh the year company's cement capacity increased to 109 million tons 3:17 3 minutes, 17 seconds supported by commissioning of 10.7 million tons of new grinding capacity at various locations like Marwa, Faraka, 3:26 3 minutes, 26 seconds Sankril, Sundri, Krishna Patnam and the additional cleaner capacity of 7 million tons at Japur and Batapara. 3:36 3 minutes, 36 seconds During financial year 26, we also made meaningful progress on the portfolio integration. Successful amalgamation of 3:45 3 minutes, 45 seconds Sangi Industries and Kenya cement with Ambuja cement is now completed while ACC 3:51 3 minutes, 51 seconds and Orient cement is under process. The one cement platform is a strategic initiative and will help to bring 4:00 4 minutes sharper focus on the operational performance business synergies and the overall higher degree of compliances. 4:09 4 minutes, 9 seconds Therefore, this time the balance sheet of Ambuja consult now has finalized 4:16 4 minutes, 16 seconds purchase price allocation of Orient and Pena till December. It was on a provisional basis. The numbers you will 4:24 4 minutes, 24 seconds find marginally changes in the balance sheet that is the classification of goodwill and the other intangible assets while in the P&L you will find some 4:33 4 minutes, 33 seconds changes in terms of amounts for depreciation and the deferred tax accounting treatments. 4:40 4 minutes, 40 seconds Further friends you will see in the notes of the accounts you will see various tax related provisional uh note with respect to reversal details are there in the published financials. 4:52 4 minutes, 52 seconds Please also note financial year 25 and financial year 26 are not comparable like to like since FI25 does not have 5:01 5 minutes, 1 second orient cement while penna was acquired and consolidated from 16th of of August 25 that is only 7 and a half months for 5:09 5 minutes, 9 seconds the FI25 uh as against 12 month for FI26 and while Orient is only for 11 months in 5:16 5 minutes, 16 seconds FI26 and was not there in FI25. Now let's again come back to the business part. My green power share increased 5:24 5 minutes, 24 seconds almost uh 32% now in Q4 compared to 26% before. 5:29 5 minutes, 29 seconds Uh the newly acquired assets particular part particularly Sangi and Pena they witness lower utilization levels. Uh Sangi still remains at around for the 5:38 5 minutes, 38 seconds full year at 57% on cement capacity utilization while Penna is 46%. However, last time I mentioned to you that in uh 5:47 5 minutes, 47 seconds December quarter we have seen a good improvement especially for Sangi. Uh the turnaround initiatives have taken little longer than the expected timelines 5:56 5 minutes, 56 seconds and some of these uh plants especially of Pena needed higher than um uh expected uh time for maintenance capex 6:05 6 minutes, 5 seconds and overall uh upkeep of the assets. Uh so on a cost front we have seen bit of u 6:13 6 minutes, 13 seconds higher cost compared to our own expectations and therefore some disappointment. Uh primarily if I have to look at the reasons uh higher freight 6:21 6 minutes, 21 seconds cost uh due to increase in the overall say lead primary and secondary both uh increase in some of the uh state like 6:29 6 minutes, 29 seconds the additional good tax especially in Himachel. Uh then in terms of the higher packing cost which we more so have seen 6:36 6 minutes, 36 seconds that in the month of March we have seen some abruptions given the west Asia war uh the higher fuel uh cost on account of 6:45 6 minutes, 45 seconds uh little higher than expected heat consumption what we have and more so for the acquired assets uh the higher 6:52 6 minutes, 52 seconds branding cost uh now that we have uh uh focused more on trade sales uh starting 6:59 6 minutes, 59 seconds from the Q4 uh And while we have also improved our trade sales to 74% compared to in December quarter of 25 it was 68%. 7:09 7 minutes, 9 seconds So which would really mean uh we are focusing on blended cement and if you also see my cleaner factor has improved 7:16 7 minutes, 16 seconds from uh 67% in December quarter to now 65%. Uh this has also u uh uh one of the 7:24 7 minutes, 24 seconds uh cost which is the banding cost and the trail promotion cost and one up and some of the other issues like the rail costs uh which we could have uh improved 7:32 7 minutes, 32 seconds in terms of the fly but uh spending some of the uh railway infrastructure which will be completed in coming months and you will see a good level of improvement 7:40 7 minutes, 40 seconds on that. But uh pending that uh we have uh we have not been able to meet [clears throat] our uh uh some of the 7:49 7 minutes, 49 seconds costs uh to our desired levels. Uh essentially uh there there is a uh 3 to 6 months delay on some of the efficiency 7:58 7 minutes, 58 seconds capacities which has happened and uh uh hopefully like in coming quarter uh we we should be gaining momentum to to 8:05 8 minutes, 5 seconds complete and get the benefits of it. So therefore in FI27 our focus firmly uh 8:13 8 minutes, 13 seconds remains on streamlining the operations and margin expansion. So uh we will continue to focus on trade sales uh and 8:21 8 minutes, 21 seconds uh more so on the premium product sales uh which we have a huge leadership almost 36% of my trade sales has been 8:29 8 minutes, 29 seconds premium cement uh sale for for Q4. uh we will uh uh continue to improve the uh reliability at Senma and Sanji and the 8:38 8 minutes, 38 seconds overall asset utilization uh together they have 19 million tons of capacity and the target is to uh 8:46 8 minutes, 46 seconds increase the utilization by at least 5 to 10% for these assets. Uh in terms of the cost uh so while we are cognizant of 8:53 8 minutes, 53 seconds the overall ongoing global geopolitical situation and uh we have already seen a cost escalation in Q4 uh more so in the 9:02 9 minutes, 2 seconds month of March uh almost uh by 25 rupees a bag uh closer to let us say ballpark 400 to 500 rupees if I have to go on a 9:11 9 minutes, 11 seconds full full-blown basis our cost uh increase uh is there in the industry and so is to our company uh so We are 9:20 9 minutes, 20 seconds rec-alibrating our cost for this financial year. Uh I have mentioned earlier about our journey to achieve uh 9:26 9 minutes, 26 seconds cost of almost 4,000 rupees a ton by March 26 exit. Meanwhile uh uh in terms 9:35 9 minutes, 35 seconds of the full year of 26 we uh have given a figure we have assured a figure of 4,400 rupees return which is almost 10% 9:43 9 minutes, 43 seconds higher to our own um target uh for the reasons which I mentioned before. uh although in in the month of March we are 9:50 9 minutes, 50 seconds closer to at uh 14,100 rupees a ton uh since there are these are like fast moving global situations and u and 9:59 9 minutes, 59 seconds dynamisms over the energy costs and other basically expected heights uh in the in the in the fuel and uh diesel and 10:08 10 minutes, 8 seconds all. Therefore, it will be very difficult to provide any long-term estimates for right now uh till the time things stabilize over the next two three 10:15 10 minutes, 15 seconds quarters. Uh therefore I would say that on on strong conviction on certain components of costs uh for 10:23 10 minutes, 23 seconds example which I have uh a is in terms of the overall pay raw material cost led by flyers and in terms of the green energy 10:31 10 minutes, 31 seconds cost for example which is going to be uh substantial improvement further in in our overallation. Therefore, I strongly 10:39 10 minutes, 39 seconds believe 150 to 200 rupees will uh savings will come from this uh components. on the overall console volumes we are expecting it to grow uh 10:47 10 minutes, 47 seconds in FI 28 27 by almost uh by almost say 8% to around 80 million odd terms and we 10:55 10 minutes, 55 seconds are cognizant of the fact that we will will uh focus on uh value with the trade volumes and premium cement uh and 11:03 11 minutes, 3 seconds therefore we are keeping it till uh moderate uh overall say external [clears throat] growth uh in the volumes part uh at at an industry level we we 11:12 11 minutes, 12 seconds believe that Given the headlines of inflation and weak monsoon uh the industry may go at around say five to 11:20 11 minutes, 20 seconds five and a half%. Uh we continue to remain committed to our end state sales volume targeted uh supported by a 11:27 11 minutes, 27 seconds sharper focus on higher inflation of the existing capacities and while operationalizing the uh new capacities and stabilizing them. Therefore with 11:36 11 minutes, 36 seconds this proposed uh ongoing additions of 10 million tons of GU which you are aware of which I have already shared with you in the investor deck some of them for 11:45 11 minutes, 45 seconds example Salaiwa andal and so and so forth. We are expecting to hit capacity of almost 119 million tons 11:53 11 minutes, 53 seconds by end of FY uh 27. 11:58 11 minutes, 58 seconds uh capacity expansion plans. We are recalibrating in line with our uh approach to take the advantages of the recent railway policies on Gulf 12:06 12 minutes, 6 seconds terminals. Uh with additions pursued more gradual uh in terms of first focusing on optimizing the current 12:13 12 minutes, 13 seconds capacities in hand. Uh this will uh also help in terms of a very disciplined allocation of capital and a steadfast 12:21 12 minutes, 21 seconds commitment to maximizing the returns on the capital employed. Looking ahead, India's long-term infrastructure story 12:28 12 minutes, 28 seconds uh remains uh fundamentally very strong and popular. However, with the expected inflationary pressure, weak monsoon and 12:36 12 minutes, 36 seconds the cement demand is expected to remain soft. Against this backdrop, uh Amuda remain focused on discipline execution, 12:44 12 minutes, 44 seconds strengthening brand penetration, scaling trade sales, driving premium cement sales and maintaining the cost and capital discipline. Thank you. And uh I 12:54 12 minutes, 54 seconds will now hand it back to uh the moderator back. 12:57 12 minutes, 57 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 13:06 13 minutes, 6 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 13:15 13 minutes, 15 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 13:22 13 minutes, 22 seconds We'll take our first question from the line of Naven Sardu from ICA securities. Please go ahead. 13:28 13 minutes, 28 seconds So friends u also just to uh inform you that we also have u our utime director 13:35 13 minutes, 35 seconds and um uh senior Mr. Karani also on the call. He has just joined us. So I welcome Karan Bay and u uh yeah I just 13:43 13 minutes, 43 seconds basically did the opening remark and u uh we are now on the Q&A. So over back to the uh moderator please. 13:51 13 minutes, 51 seconds Yes, we have a question from Naven Sadi. Naven. Yeah. Yeah. Hi. Please go ahead. 13:59 13 minutes, 59 seconds Yeah. Uh thank you uh for the opportunity. Uh my first question was on the volume growth front. So in this 14:07 14 minutes, 7 seconds quarter as per the investor edge volumes has grown by about 10 odd% but if I 14:14 14 minutes, 14 seconds adjust them to the orient cement volumes uh they are more like flattish on a y 14:22 14 minutes, 22 seconds basis and here my question is that if if we are seeing some pressure on volume because for FY27 14:31 14 minutes, 31 seconds we have given a guidance of 18 million tons which is roughly a growth of 9 to 10% % against the backdrop that we are 14:40 14 minutes, 40 seconds expecting a much softer industry growth of 5%. So I'm just wanting to uh request the overall color on your volumes. 14:53 14 minutes, 53 seconds Hello. Yeah, sorry. Yeah, sorry for the snag. So Naven um so you're right absolutely in terms of the volume 15:02 15 minutes, 2 seconds especially for this March quarter it has been little uh muted uh but now [clears throat] uh for the F527 15:10 15 minutes, 10 seconds uh when I given you indication of 80 million which is around closer to say 8% uh we have the visibility in terms of uh 15:20 15 minutes, 20 seconds a stabilizing the acquired assets of u sanangi penna uh which I told you uh be 15:27 15 minutes, 27 seconds the u uh an ongoing expansion which will get commissioned in the next few months 15:34 15 minutes, 34 seconds like between let us say now to uh September we'll see uh the capacities will get commissioned and we'll also 15:41 15 minutes, 41 seconds then stabilize then so I have the uh incremental volume also coming from these capacity which I mentioned almost 15:49 15 minutes, 49 seconds around 10 million tons and of course stabilizing the the acquired assets of penna and sani Uh yeah so on that basis 15:58 15 minutes, 58 seconds basically uh we are accepting uh uh although with a with a softer demand uh for the year. 16:07 16 minutes, 7 seconds Did I answer your question nin um yeah yeah thank you. My my second question then was on the overall capex uh uh 16:16 16 minutes, 16 seconds plan. So as mentioned in this presentation we are re-calibrating our entire uh uh growth plan. we have visibility of taking the overall 16:24 16 minutes, 24 seconds capacity to 119 but I'm just trying to understand by when will uh like you know 16:30 16 minutes, 30 seconds uh we get a color on the next leg of cap because the first day uh when the asset was acquired the vision was to like you 16:39 16 minutes, 39 seconds know I think uh double the capacity and take it to 140 in the interim we even increased it to 155 and now we taking a 16:48 16 minutes, 48 seconds slightly a step back so my question was from a growth point of view uh is there a by when first of all can we get a 16:57 16 minutes, 57 seconds color of the big picture or the next longerterm plan and in the same breath is it that we are more open to pursue 17:06 17 minutes, 6 seconds inorganic growth which helps us catapult to that uh overall growth target or you still believe organic uh is the is the 17:13 17 minutes, 13 seconds uh a way to go uh that thank you so so so namin uh our primary focus 17:21 17 minutes, 21 seconds remains organic in terms of stabilizing our ongoing expansions and also already 17:29 17 minutes, 29 seconds acquired assets. So therefore I would say that that remains the primary focus. 17:32 17 minutes, 32 seconds I think we have a good headroom uh to improve our overall say market share by improving the capacity utilizations of 17:39 17 minutes, 39 seconds these plants and therefore uh as I said we are going to follow quite a disciplined uh capital allocation and uh uh given the head headwinds right now 17:48 17 minutes, 48 seconds for the industry uh it makes sense to uh push little bit of the capex uh but without uh losing eyesight on the 17:55 17 minutes, 55 seconds overall say market share and the volume volume improvement from the existing assets and the ongoing u expansions questions. Uh to answer your question, I 18:04 18 minutes, 4 seconds think u maybe uh what I would say that u uh the target plans of FI28 18:11 18 minutes, 11 seconds it it could move uh a year or two let us say on a safer side I would say that uh FI30 but as I said it it doesn't really 18:19 18 minutes, 19 seconds matter what matters is how you are able to ramp up the volume from your overall existing asset and I have substantial good headroom to ramp up over there even 18:28 18 minutes, 28 seconds if I hit 120 million tons by end of 27 it will give a good uh leverage of the oral market opportunity. 18:38 18 minutes, 38 seconds Helpful. Thank you so much. 18:41 18 minutes, 41 seconds Thank you. Next question is from the line of Rashi Chopra from City. Please go ahead. 18:48 18 minutes, 48 seconds Thank you. Just uh only continue on the previous question. What is the trainer capacity as of now? 18:57 18 minutes, 57 seconds So Rashi as of now we are sitting on um 73 uh million tons of cleaner uh capacity 19:07 19 minutes, 7 seconds and you will be adding another 4 million this year. 19:10 19 minutes, 10 seconds Yes. Uh so at uh uh Marata and uh at u at like Pa Marad we will be adding up 19:20 19 minutes, 20 seconds almost like 5 million. So Pena Marad is 3 million uh sorry 2 million and Marata is another 2 million we have 4 million. 19:28 19 minutes, 28 seconds Yeah. 19:29 19 minutes, 29 seconds Okay. And you mentioned earlier on that the uh 56% utilization was for the year and 10 hours was 47. Is that correct? 19:40 19 minutes, 40 seconds That is true. That is true. 19:42 19 minutes, 42 seconds Okay. And uh the next question on cost now for for the full year the cost is 4,400. 19:49 19 minutes, 49 seconds For the quarter what was the average cost? 4500 right 520 19:58 19 minutes, 58 seconds Rashi we are uh sitting at almost 4,250 rupees uh for the for the uh for the uh 20:06 20 minutes, 6 seconds for the overall say uh quarter and plus some of these increases what you have seen from the overall escalation. So I 20:14 20 minutes, 14 seconds would like let us say that a normalized was almost 4250 and was another uh 250 rupees which we have seen increases. So 20:20 20 minutes, 20 seconds almost we are at now 4,500 rupees a turn for the quarter of March right and you were saying that the the 20:29 20 minutes, 29 seconds industry costs have gone out by anywhere gone up by anywhere in the range of 400 to 500. So is it safe to assume that because of the crisis you will see 20:38 20 minutes, 38 seconds another 2 200 250 rupees increase in costs which will get offset by your fly 20:45 20 minutes, 45 seconds ash green energy etc. Is that the is that how you should be thinking about it? 20:50 20 minutes, 50 seconds Sorry I I I I I so you indicated that so we at 4500 now on cost you're you said 150 to 200 is a 20:59 20 minutes, 59 seconds reduction that you're expecting because of fly ash green energy right? So that's 150 to 200 but the overall industry cost 21:06 21 minutes, 6 seconds has gone up by more right because of the West Asia crisis. So is that 150 to 200 already capturing the increase in 21:14 21 minutes, 14 seconds industry cost or 180 150 to 200 decline in your internal cost and then there's an increase in cost because of the war beyond this. 21:24 21 minutes, 24 seconds So I see like as I said the 4500 which is for the March quarter has already 21:31 21 minutes, 31 seconds taken the heat of existing increases of of almost say 250 rupees. So I would say that 4500 uh safely I would say is on a 21:40 21 minutes, 40 seconds on a peak basis let us say on a higher basis which we have seen buying like any aberation of plus - 50 rupees but otherwise you will see a journey which 21:49 21 minutes, 49 seconds will actually start coming down uh in passing quarters uh so uh although like 21:57 21 minutes, 57 seconds for example with the overall situation how the overall energy uh situation emerges I would not give with conviction 22:04 22 minutes, 4 seconds but I strongly believe that yeah this is like uh the peak which we have hit and should see a progressive improvement. So 22:13 22 minutes, 13 seconds if I can just rephrase it, if nothing increases further in terms of uh global prices, you will see a decline of at least 130 to 200. 22:22 22 minutes, 22 seconds Absolutely. Well summarized. Absolutely. 22:24 22 minutes, 24 seconds Okay. And on the pricing, what has happened to offset these cost pressures pricing? 22:31 22 minutes, 31 seconds So that's interesting Rashi. Uh so you're hitting on both the right questions. uh on the pricing uh like industry has seen um a modest uh 22:40 22 minutes, 40 seconds improvement of uh I would say 10 rupees u in few pockets let us say 15 20 rupees 22:46 22 minutes, 46 seconds but that's like in a very selected uh uh area geographies otherwise ballpark for 22:53 22 minutes, 53 seconds the quarter of March it around ballpark say 10 rupees now with uh with the 23:00 23 minutes demand getting little softer uh The pressure on pricing uh uh definitely is 23:07 23 minutes, 7 seconds higher and uh despite the circumstances of costs gone up uh unfortunately u uh 23:16 23 minutes, 16 seconds industry is still uh under the uh relentless pressure and not able to pass on the price. 23:25 23 minutes, 25 seconds Got it. And this last section what was the cape for the year? 23:30 23 minutes, 30 seconds So capex for the year we are keeping it little moderate and ballpass when you pay this so you're paying for fi26 fi 26 23:38 23 minutes, 38 seconds is closer to about 7,00 500 or uh I will just answer because there will be another question so for fi 23:46 23 minutes, 46 seconds 27 we are keeping estimate of almost 6,000 to 6,500 cr and that two will also 23:54 23 minutes, 54 seconds that is how things pan out it may change uh couple of hundred cr here and there but that's the estim what we have. 24:01 24 minutes, 1 second Got it. Thank you. 24:04 24 minutes, 4 seconds Thank you. Next question is from the line of Indrajit Agarwal from CLSA. Please go ahead. 24:11 24 minutes, 11 seconds Hi, thank you for the opportunity. Uh congratulations on increasing both trade sales and premium mix. But on that note, 24:18 24 minutes, 18 seconds if I look at slide 27, uh the realization has hardly moved QQ versus appears it is up somewhere between one 24:26 24 minutes, 26 seconds and a half%. So is it mainly because of mix or what is driving this weaker? 24:32 24 minutes, 32 seconds So Indrajit absolutely you're right. I think uh the journey has just begun uh when we change the gear and therefore 24:39 24 minutes, 39 seconds you will see it more uh differentiated uh uh uh benefits coming in the subsequent quarters. Uh what we have 24:46 24 minutes, 46 seconds done is we have sustained the price levels uh at uh 254 rupees a bag uh compared to in December. So from our own 24:55 24 minutes, 55 seconds December quarter we are up by say modestly at say 1 rupee uh and uh compared to say last year we were at say 25:02 25 minutes, 2 seconds 255. So yes the journey would further see improvements uh with u higher blended cement and more u human uh 25:11 25 minutes, 11 seconds cement sales. So uh it is just begun. 25:17 25 minutes, 17 seconds Thank you. Uh second if I look at your blended utilation for next year would we add west 71 72% on your expanded let's 25:26 25 minutes, 26 seconds say weighted average capacity. So on that note probably you will not need additional capacity in FI28 as well. Um 25:32 25 minutes, 32 seconds is that what is driving a more calibrated capex approach? 25:38 25 minutes, 38 seconds So I have uh also to um to answer this question. Uh Mr. Yeah. So, so I think 25:46 25 minutes, 46 seconds the way we are looking at this uh uh how we would look at is two three things. 25:51 25 minutes, 51 seconds One is when we look at our performance uh we need to we we know where are the places we need to improve on. Uh there 26:00 26 minutes are certain uh uh capacity which is uh which is there which is in the wrong 26:07 26 minutes, 7 seconds places. uh and we and so we will be adding few capacity in places which will help us in terms of reducing our cost 26:16 26 minutes, 16 seconds logistics cost especi especially as well as uh help us uh improve our uh 26:23 26 minutes, 23 seconds penetration into into those markets. Uh I'm talking specifically into the markets where we have uh where we have 26:32 26 minutes, 32 seconds high uh high market share and high uh recall value. uh so so those are the places that we would uh definitely look 26:40 26 minutes, 40 seconds at uh uh expanding our uh our um our capacity over there. The second thing is 26:48 26 minutes, 48 seconds uh as we uh we would be looking at uh ex um uh as we are expanding our clinker 26:56 26 minutes, 56 seconds capacity uh the correspondingly GU capacity will also increase and uh uh 27:03 27 minutes, 3 seconds this year we we are uh apart from um apart from u Rajasthan and Maharashtra 27:11 27 minutes, 11 seconds as you know that we have won a u a limestone block in Assam. 27:16 27 minutes, 16 seconds again that's a completely new territory for us. So that is one new area which we will start uh in maybe end of this year. 27:25 27 minutes, 25 seconds Uh and the second uh new area that we will be starting is in Mundra uh which is again uh completely new new clinker 27:33 27 minutes, 33 seconds line. So these are the two new projects apart from the new GU that uh will help us in terms of reducing our uh reducing our costs. 27:44 27 minutes, 44 seconds Thank you so much for the elaborate answer. One last one if I may. In light of this, how would we see any inorganic opportunity that comes up? Would you be 27:52 27 minutes, 52 seconds interested or the focus would squarely be on organic growth right now? 27:56 27 minutes, 56 seconds So inorganically we keep uh we keep evaluating but our focus right now is on 28:03 28 minutes, 3 seconds uh on green uh on organic development and green field expansion. Um that is our number one priority. 28:12 28 minutes, 12 seconds Sure. Thanks a lot. 28:14 28 minutes, 14 seconds Thank you ladies and gentlemen. In order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at 28:23 28 minutes, 23 seconds a time. You may join back the queue for follow-up questions. 28:27 28 minutes, 27 seconds We'll take our next question from the line of Jesa from Namora. Please go ahead. 28:34 28 minutes, 34 seconds Hello. Uh thank you for the opportunity. 28:37 28 minutes, 37 seconds So my first question is regarding the cost structure especially in the fourth quarter also we saw that the fixed cost 28:44 28 minutes, 44 seconds which is employee capable cost has increased significantly Y overn versus you know when we compare it to your peers also I I just uh wanted to 28:53 28 minutes, 53 seconds understand uh while you say there were some you know we're facing a conflict uh that impacted the cost however the 29:01 29 minutes, 1 second conflict started towards the end of February and the packaging cost was also in the middle of March which impacted industry. I want to understand why you 29:10 29 minutes, 10 seconds know among all the peers Abuja is seeing such a increase in you know the its cost excess and secondly uh in your 29:18 29 minutes, 18 seconds presentation you have also also mentioned that the freight cost was high because of some planned shutdowns if I'm not wrong in third quarter also you took 29:27 29 minutes, 27 seconds planned shutdowns you know normally the industry takes shutdowns in the second quarter so in quarter three and quarter four where the volume growth was really 29:35 29 minutes, 35 seconds strong the management decided to take plant shutdowns which resulted in higher cost. So I just want to understand what is the you know rational behind taking 29:43 29 minutes, 43 seconds plant shutdowns in volume push quarters and why are you know Abuja's fixed cost is increasing way higher than its peers. 29:50 29 minutes, 50 seconds My first question is the audience. 29:53 29 minutes, 53 seconds So this is definitely uh uh I think uh uh when uh Rasi asked this and we have tried to explain um uh so in terms of 30:02 30 minutes, 2 seconds picking out on our cost at 4500 which I mentioned and from here you will see improvements but yeah your question is 30:09 30 minutes, 9 seconds in terms of uh compared to the competition why now few components which 30:16 30 minutes, 16 seconds are relevant to my business uh I mentioned about higher focus now on the branding advertisement uh to promote the u uh trade sales and premium cement. 30:28 30 minutes, 28 seconds Second is in terms of u higher repairs than uh maintenance cost and you're right that ideally one should do it 30:35 30 minutes, 35 seconds during the off uh of seasons like uh monsoons but not all the machines can be done uh during that period and uh there 30:44 30 minutes, 44 seconds have been few breakdowns also of the acquired effects of penas and all. So under uh uh under the planning and also 30:51 30 minutes, 51 seconds under out of planning you will do it. So therefore there have been those additional expenses of repairs and maintenance. Uh then in terms of uh the 31:01 31 minutes, 1 second back cost which although yeah came it in the in the last week of February to the overall say full month of March. uh when 31:09 31 minutes, 9 seconds you uh promote and sell more premium cement then there are also some additional costs of logistics and handling which also chips into uh to 31:17 31 minutes, 17 seconds increase your cost. I also mentioned to you uh the uh journey which we want to achieve in terms of uh improved uh uh 31:27 31 minutes, 27 seconds heat uh consumption uh it is still uh uh not coming in the range and therefore we 31:34 31 minutes, 34 seconds still have a higher heat consumption and I would say ballpark 3540 kilo calories uh minimum which we have to improve. uh 31:42 31 minutes, 42 seconds again I will attribute to some of the acquired assets actually when I look at the IITA of uh Muja and ATC minus of the 31:51 31 minutes, 51 seconds acquire assets the is actually higher by 70 80 rupees uh so it will be almost like 800 rupees u uh uh uh and actually 32:00 32 minutes more than I normalize it but it is at least 800 rupees so uh I would say that the acquired assets still are not u 32:09 32 minutes, 9 seconds basically uh coming in the range to our desire level and for which u I'd mentioned that the first priority is 32:16 32 minutes, 16 seconds stabilize the overall operations achieve a good level of performance improvement. 32:23 32 minutes, 23 seconds Hence uh in the I think uh maybe couple of months uh we had taken the the entire 32:29 32 minutes, 29 seconds investor uh community uh to Sani plant just to showcase that how Sani is now in state of readiness and uh uh give higher 32:39 32 minutes, 39 seconds improved volume improvement. This I think we did in somewhere like in March itself right okay March itself now that 32:46 32 minutes, 46 seconds is like for example we want to showcase that yes some of the states have taken time but now they are st in the state of readiness uh soon enough that I will 32:54 32 minutes, 54 seconds take you take all of you to penal six also but before that we took you to Marva now so so so the journey is known 33:03 33 minutes, 3 seconds the issues are known and uh therefore uh in my opening remarks also I mentioned about certain disappointments to us also 33:10 33 minutes, 10 seconds where We we think that 4500 is on a higher side and we are uh uh we are basically in a position to bring it down 33:18 33 minutes, 18 seconds in coming quarter. So uh therefore like uh you will see uh this is pinned out and you will see an improvement prospectively from here. 33:28 33 minutes, 28 seconds Thank thank you for the detailed answer sir. Uh my next question is you know largely taking forward Naven's uh 33:35 33 minutes, 35 seconds question only. So you know first of all Ambuja is the only company which has given such a bearish scenario for FI27 33:42 33 minutes, 42 seconds and I understand rational that you have given behind it but you know with 5% industry growth and Ambu expecting an 8% 33:50 33 minutes, 50 seconds growth uh there are certain capacities which are coming I completely you know understand that but what is your target 33:57 33 minutes, 57 seconds utilization from the assets of Shangi Orient and Pena for FI27 and uh and I understand there are some 34:06 34 minutes, 6 seconds challenges So will there be additional capex required uh to bring the acquired assets to Abuja's uh set of standards? 34:14 34 minutes, 14 seconds We just want to understand this. 34:17 34 minutes, 17 seconds Thank you Jaz. So like uh Orient for example is operating at full capacity. 34:24 34 minutes, 24 seconds So far as u uh Sanangi is concerned uh I will uh peg myself at uh almost like 65 34:31 34 minutes, 31 seconds to 70% and so far as u uh Pena is concerned I will consider uh around 55 34:39 34 minutes, 39 seconds uh to 60%. In terms of the utilization factors and the existing assets of Ambuja and FC I would uh peg it to 34:48 34 minutes, 48 seconds closer to around uh 75 to 80%. So on a overall basis as an as a at the omega 34:56 34 minutes, 56 seconds confirmed level uh average uh in the situation the scenario which I have mentioned to you I would say 70 75% uh 35:05 35 minutes, 5 seconds ballpass utilization uh for a and you're right I'm like uh we have uh we we anticipate this software demand and 35:12 35 minutes, 12 seconds therefore we would go with this uh belief but if for any surprises positive in the industry and uh which we would 35:19 35 minutes, 19 seconds all wish to uh this number will definitely look positive but as of now situation is uh softer 35:27 35 minutes, 27 seconds and sir any further capex uh to bring these ethics to a a bigger standard. So as mentioned by Karan Bay uh the the 35:36 35 minutes, 36 seconds overall say disciplined approach of capex where we want to now uh set up uh in the uh high potential market which we 35:44 35 minutes, 44 seconds have now completely done a uh mapping where we have market leadership. So which we will uh uh we have so he has already indicated few of the assets in 35:52 35 minutes, 52 seconds in his nar narrative but uh progressively now for example let me first uh commission the existing assets 36:00 36 minutes in hand which are ongoing basically this 10 million and come to you all with the stabilizing and achievement of the capacities for them but passing quarters 36:08 36 minutes, 8 seconds then we will also highlight to you the capex program as its up. Sure. 36:16 36 minutes, 16 seconds Mundra is very much now in the in the in the pipeline and so are few updates which he mentioned. 36:23 36 minutes, 23 seconds Thank you. Thank you so much. 36:27 36 minutes, 27 seconds We'll take our next question from the line of Manish Somaya from Caner. Please go ahead. 36:33 36 minutes, 33 seconds Uh good evening and thank uh thank you for taking my questions. uh you know Brian I just wanted to ask uh we have talked quite a bit about uh fiscal 47 36:42 36 minutes, 42 seconds and outlook but what I'm trying to reconcile is how should be reconciled between the 36:51 36 minutes, 51 seconds improvements that you're planning in fiscal 27 is that dependent how much of that is dependent on internal execution versus 36:59 36 minutes, 59 seconds external normalization maybe you can just uh help us understand that I would say manage by uh thank you a 37:07 37 minutes, 7 seconds very a very good question. Um I would say that the external factors will affect most of the industry players. Therefore 37:16 37 minutes, 16 seconds I will give more weightages on the internal uh factors and uh the uh execution of the same uh which will uh 37:25 37 minutes, 25 seconds bring the overall uh differentiation and uh uh leadership uh leverage on that. So 37:32 37 minutes, 32 seconds that I would like I would put it in this money. So, so Manish if I may uh just come here. uh current year I think if 37:40 37 minutes, 40 seconds you look at our performance uh uh you know we realize that uh where where where where the gaps are and uh and 37:50 37 minutes, 50 seconds that's exactly where we are hyperfocused on and improving on those performance and uh you know based on what whatever 37:58 37 minutes, 58 seconds guidance uh we are giving uh this is 100% which is controllable uh uh which 38:05 38 minutes, 5 seconds is controllable by us and if you're not able to achieve the guidance. It's purely because of our internal execution 38:12 38 minutes, 12 seconds and not not any other factor and um uh and that's where that's where uh the 38:18 38 minutes, 18 seconds whole team uh is uh really focused on and delivering on on on the numbers now 38:25 38 minutes, 25 seconds that we are talking about and and we very and we're very confident that uh uh that 38:32 38 minutes, 32 seconds uh this year we we will be able to hit the numbers that we are talking about. Yeah, thank you very much. 38:40 38 minutes, 40 seconds The the other my second followup is on the premium products. Now they constitute about 35 to 36% of trade. 38:48 38 minutes, 48 seconds What should be the realistic target uh that should that we should have in our models uh as we go out to fiscal 27 and 38:55 38 minutes, 55 seconds maybe even beyond you know what's the upside to that uh 35 to 36%. 39:03 39 minutes, 3 seconds So Manish uh right now for example uh I would say that 36 is a good number for us to sustain and therefore u that is 39:11 39 minutes, 11 seconds what for example uh can be considered uh in terms of the share of premium cement as percentage of trade sales. 39:22 39 minutes, 22 seconds Okay wonderful thank you so much I'll get back in the queue. Thank you. 39:27 39 minutes, 27 seconds Thank you. We request participants to proceed to one question at a time please. 39:33 39 minutes, 33 seconds We'll take our next question from the line of Satikumar from Jeff. Please go ahead. 39:40 39 minutes, 40 seconds Yeah. Good evening. Uh my question is on cost again. Yeah. So um in the last third quarter conall uh which happened 39:49 39 minutes, 49 seconds like around start of the February management talked about uh uh like cost of 4,000 rupees. Yes. We talking about 39:56 39 minutes, 56 seconds 4,100 rupees 4,000 rupees in January. We talking about 4,100 rupees in exit of this 40:04 40 minutes, 4 seconds quarter. So how the C quarter cost is 45,00 I'm unable to understand. Now the question is on the balance sheet. Uh so 40:13 40 minutes, 13 seconds your ACC's operating cash flows are negative sharply negative for the year. 40:19 40 minutes, 19 seconds uh and uh your overall consolidated Amuja's uh cash flows uh also like negatively impacted by negative working 40:27 40 minutes, 27 seconds capital. Can you throw some light on this? Thank you. 40:31 40 minutes, 31 seconds Thanks. I will take the second question first. In terms of uh the ACC, Ambuja, if you see uh ACC has receal from Abuja 40:40 40 minutes, 40 seconds under the NSA and uh you also uh would be aware that we have taken shareholders approval in terms of the ICD wherein u 40:49 40 minutes, 49 seconds uh uh uh this receivables will get paid also like you'll find u in the in the coming quarter this will get mounted up 40:56 40 minutes, 56 seconds with the ICD number one. So uh it's like as a one uh consult business under the MHS the receivables are therefore ATC 41:04 41 minutes, 4 seconds you will find uh negative uh operating cash flow. uh so far as AMU is concerned I think if you would have seen we have a 41:13 41 minutes, 13 seconds good level of inventory which is higher but when it comes to receivables these are under good control uh with the 41:21 41 minutes, 21 seconds higher degree of trade sales and therefore on a overall working capital of Ambuja you will see only improvement for the uh March quarter compared to 41:30 41 minutes, 30 seconds December quarter. uh your question about um about the cost uh so Patik I think u 41:38 41 minutes, 38 seconds uh uh what we had envir to what is the reality yes there are differences because of the overall uh acquired asset 41:46 41 minutes, 46 seconds situations and u uh many times uh those anticipations uh uh for example have not 41:54 41 minutes, 54 seconds worked upon and then suddenly the packing bag situation which have come up and also for example when um Namin mentioned about tapping the 10% growth. 42:03 42 minutes, 3 seconds Uh we also lost a good level of volume because of the packing bug issues and all. So there are this situations which will which will have to be dealt with. 42:11 42 minutes, 11 seconds But luckily now at least we know that this is the peak level of course which we have hit and from here for example as per also mentioned that the uh numbers 42:20 42 minutes, 20 seconds will be uh tapping down with every passing quarter. uh so reasons I have already explained right from branding to 42:28 42 minutes, 28 seconds repairs and maintenance to the higher freight cost the higher lead for example the AGPS or the uh for example when it 42:36 42 minutes, 36 seconds comes to IGIDA the lower government incentives which we are now that also for example we we we have a lower government incentive a because of the GT 42:44 42 minutes, 44 seconds rates which have come down B also exhausted some of the plants which were giving uh having the incentives and 42:51 42 minutes, 51 seconds third in some of the uh state we are now acrewing on incentive on um on uh virtual uh uh uh visibility basis 43:00 43 minutes basically certainty basis basically so that uh we don't want to have spending the long-term approvals and all so there are combination of these accounting 43:08 43 minutes, 8 seconds policies and u and u the the uh situation of uh some of the plants which have uh uh not matured to what we thought mostly for the acquired assets. 43:19 43 minutes, 19 seconds Yeah. 43:22 43 minutes, 22 seconds Uh sure. Just some clarification and you Yeah, go ahead please. 43:29 43 minutes, 29 seconds Yeah, one clarification. Uh in the opening remarks it was said that you had like 4,100 rupees of cost. Is it just a 43:36 43 minutes, 36 seconds day cost or a month cost or a last like what is that cost? we we we had uh basically hit it 4,100 for the month of 43:45 43 minutes, 45 seconds March uh uh Pratik but then um but as I said that except those the escalations of war for example almost 250 rupees 43:54 43 minutes, 54 seconds which which affected us so on a normalized basis I was paying 4100 for the month of March. 44:05 44 minutes, 5 seconds Sure. Okay. Thank you. I'll get back to you. Thank you. 44:09 44 minutes, 9 seconds Next question is from the line of Amar Singha from Nepon Indiac. Please go ahead. 44:16 44 minutes, 16 seconds Yeah. Uh hi gentlemen. Thanks for taking my question. Um yes uh u my question is also following up with the question uh 44:25 44 minutes, 25 seconds on the cost right. Um so if you see on the first week of February when we had the last one call and if I may the 44:34 44 minutes, 34 seconds average cost for the quarter was 4,500 rupees along with the one off whereas we have exited December quarter went below 44:42 44 minutes, 42 seconds 4,000 rupees of cost uh that was the commentary on the first week of I understand we do carry a good amount of 44:49 44 minutes, 49 seconds inventory as well at least a month on on that account from most of the uh raw material and import uh on the part. Uh 44:59 44 minutes, 59 seconds furthermore, we had some one off in the future. We have uh 45:06 45 minutes, 6 seconds increased or enhanced our uh contribution in this quarter. Pricing was slightly better than the previous quarter. Um this is a better quarter. 45:15 45 minutes, 15 seconds This logically contribute towards the better profitability. 45:20 45 minutes, 20 seconds um despite everything and also uh with this previous answer that last month was 4,100 45:27 45 minutes, 27 seconds uh uh cost trying to understand how could add one add up the entire cost for the quarter 45:36 45 minutes, 36 seconds on the light of commentary of December 4,000 uh that was given on first of February 45:44 45 minutes, 44 seconds with the inventory which generally the people carry along with your currently on the March 4 to 100° average cost. Uh 45:52 45 minutes, 52 seconds also the mentioned most of them are many micro factors which would impact every player 46:01 46 minutes, 1 second or most of the players in the in the industry. So for whatever results we have seen from the large 46:09 46 minutes, 9 seconds guys or size uh the factors are not affecting too much or in totality uh in 46:17 46 minutes, 17 seconds this quart wanted to understand how should we reconcile your last commentary along 46:25 46 minutes, 25 seconds with the exact number reported along with the peer uh uh peers who have reported numbers. 46:33 46 minutes, 33 seconds Then how should we look at been our outlook on that? Just help us in the thank you very much. 46:40 46 minutes, 40 seconds Okay. Thank you. No, I think see basically when uh in the December for example we have been very upbeat in terms of some of the turnarounds which you will see in some of our acquired 46:49 46 minutes, 49 seconds assets of Pena for example more so especially and as you know Pena is uh uh geographically uh more uh in in south 46:57 46 minutes, 57 seconds and uh if you if you actually look at the numbers and south for example has been one of the most affected geography for the March quarter. Therefore, we 47:05 47 minutes, 5 seconds have taken some of the machines on shutdown and basically there have been couple of breakdowns also and therefore 47:12 47 minutes, 12 seconds which has increased my higher repairs and maintenance for the uh quarter of March. Number one. Number two uh in 47:20 47 minutes, 20 seconds terms of uh some of the acceleration which we have to give uh to our uh uh sales and branding and advertisement is 47:28 47 minutes, 28 seconds what we have given and the result of the same we will uh we will get actually as an investment on u on our supply chain 47:36 47 minutes, 36 seconds but this will more be accounted as a operating cost. So that is where for example the uh branding and 47:43 47 minutes, 43 seconds advertisement costs are higher. uh then uh uh of course for the month of March there have been this abnormal cost for 47:51 47 minutes, 51 seconds the packing for example and uh we have also uh seen a higher fuel cost and 47:58 47 minutes, 58 seconds higher fuel consumption also for example the moment uh if you don't have a right blend of fuel uh the consumption of the u uh uh uh fuel is the the heat 48:08 48 minutes, 8 seconds consumption is also higher so those also for example technically the technical KPIs have uh have got affected Now 48:16 48 minutes, 16 seconds that was when we also in December our quarter was at 4500 rupees cost uh for the for the quarter 4500 and uh March 48:26 48 minutes, 26 seconds also for example we are almost at say 4500. Yeah. starting look in this manner that uh uh certain planned uh movements 48:34 48 minutes, 34 seconds for the March could notify or we could not also fulfill and therefore we have uh basically uh uh been at the same level to what we were in December 25. 48:49 48 minutes, 49 seconds Thank you. 48:50 48 minutes, 50 seconds I understand that part of 4500 versus 4500. I'm just trying to reconcile the 48:57 48 minutes, 57 seconds commentary quarter of 4,000 exit in December. This is a current commentary of 4,100 for the month of March. uh just 49:05 49 minutes, 5 seconds because one month in February uh the I'm just trying to understand how the entire cost up because of that when we move 49:14 49 minutes, 14 seconds that inventory gets carried on for a couple of months which is there uh and I I mean I will 49:21 49 minutes, 21 seconds appreciate if you can share us quantification of various cost item large cost item along with the benefits 49:30 49 minutes, 30 seconds also which has come in uh from exit of 4,000 rupees to now exit of uh in March may not be now but later on also we can release that. 49:39 49 minutes, 39 seconds So I know I think because the commentary the commentary I think uh again even if you remember the last call uh I had 49:46 49 minutes, 46 seconds always said that the exit month of March. So while you are considering for the whole March quarter of 26, no that 49:55 49 minutes, 55 seconds was not the commentary was more about our uh expiration and our uh plan to uh 50:01 50 minutes, 1 second get uh closer to 4,000 by month of March. Now uh basically uh therefore while the average would still be higher 50:10 50 minutes, 10 seconds than not at 4,000 therefore please don't mistaken with 4,000 as average for the March quarter. uh number one. Number two 50:19 50 minutes, 19 seconds uh of course like uh therefore I was uh highlighting that month of March for example barring this uh aberration of 50:26 50 minutes, 26 seconds the uh west prices and uh you might say that we would have got little bit affected more compared to degree as 50:34 50 minutes, 34 seconds compared to others could be but yes we have uh uh we got affected with the overall uh packing bags and all uh and 50:43 50 minutes, 43 seconds therefore the pressure of volumes and therefore the pressure on um sales and hence the higher advertisement, branding or sales promotions have been 50:52 50 minutes, 52 seconds there. So therefore like uh uh we unfortunately could not uh uh come below 50:59 50 minutes, 59 seconds 4500 for this uh uh entire quarter of March 26. Thank you. 51:08 51 minutes, 8 seconds Yeah. Yeah. 51:09 51 minutes, 9 seconds Amber, I request you to join back the Thank you. 51:15 51 minutes, 15 seconds We'll take our next question from the line of Kulkit Partney from Goldman Sach. Please go ahead. 51:21 51 minutes, 21 seconds Uh sir, thank you for taking my questions. 51:23 51 minutes, 23 seconds I have a couple of them. One is sir for the Sanangei plant which is operating at 57% utilization. How important is for 51:32 51 minutes, 32 seconds the Nalia line to be ready and how far do you see Nalia being connected and 51:39 51 minutes, 39 seconds ramp up in volumes at at Sani? That's question number one sir. 51:45 51 minutes, 45 seconds So PKIT our base model is not linked to uh Nazi railway line. Uh it is more with 51:52 51 minutes, 52 seconds the overall our marine intra for example and therefore u uh I would know that we have already ordered seven vessels uh 52:01 52 minutes, 1 second which will be delivered uh in a a provisive manner starting from next year. So that is what for example 52:08 52 minutes, 8 seconds Tangi will bring the trains and then otherwise we are counting on the uh road movement from Tangi. Uh the railway line 52:16 52 minutes, 16 seconds only will be an add-on but not being considered in the base model. 52:21 52 minutes, 21 seconds Sure. So so so the plan is to ramp up even if Malia takes a little longer to be ready. Is that the right way to look at it? 52:28 52 minutes, 28 seconds Yes. Yes. So right now although in Sani we don't have a ramp up per se of capacity expansion but yes ramp up of the existing capacity the utilizing part correct abs. 52:38 52 minutes, 38 seconds Absolutely sir. So my second question is is it fair to assume that as and when there is a final resolution on the JP 52:45 52 minutes, 45 seconds assets that those assets would come uh to to uh us or is there a possibility 52:51 52 minutes, 51 seconds given that we already have our own organic growth plan uh a lot of work to do on on increasing capacity utilization 53:00 53 minutes that we could also not be considering uh having those assets. How should we look at it? 53:06 53 minutes, 6 seconds So bulkit I will still consider that for JP uh the RP is another listed company 53:13 53 minutes, 13 seconds and therefore it would be inappropriate from my side to enter anything on that. 53:19 53 minutes, 19 seconds Uh but as things progress uh whatever development happens we'll come to know. 53:26 53 minutes, 26 seconds Thank you. We'll take our next question from the line of Pinat from HBC. Please go ahead. 53:33 53 minutes, 33 seconds Uh thank you. So I have two questions. 53:35 53 minutes, 35 seconds Uh my first question is um given Abuja is the fourth company to have reported earnings uh and the Adida Pton is uh is the lowest with uh high cost inflation. 53:46 53 minutes, 46 seconds Uh do you see uh the industry and the company raising cement prices in the next few months to pass on to the full 53:53 53 minutes, 53 seconds cost inflation or can we expect further margin deterioration uh with the inability to raise cement prices? 54:02 54 minutes, 2 seconds So Pakin u um I would say that uh given the uh scenario of demand will be very 54:10 54 minutes, 10 seconds important to uh basically see the price uh price uh being passed on to the uh to 54:16 54 minutes, 16 seconds the customers and as of now I anticipate uh the the overall demand looks to be 54:25 54 minutes, 25 seconds for right now when I look at say April and uh now in May uh with little subdued 54:31 54 minutes, 31 seconds and soft. Therefore uh uh therefore for example when you attempt for say X uh I 54:38 54 minutes, 38 seconds would be happy even uh even if the industry gets uh uh half of the same. So that is like for example right now uh uh 54:46 54 minutes, 46 seconds the situation is but yes uh cost on the other side has gone up by at least 25 rupees. So that is like uh uh the only 54:55 54 minutes, 55 seconds way then to to resolve and protect the margin is to to focus on our uh own cost of production. Uh and that is therefore 55:04 55 minutes, 4 seconds I was highlighting the internal factor will be playing more important what Manish Sumaya had asked the internal factor will be more important compared to the uh external factor. 55:16 55 minutes, 16 seconds Sure. My second question is given Abuja's cost delivery has been uh all over the place over the last few quarters. Uh can you give us some 55:24 55 minutes, 24 seconds guidance uh where you move away from cost to ADIA port you know by FI28 uh given where your ADIA port is today 55:32 55 minutes, 32 seconds and over the next two years where do you see the ADIDA port reach uh and what are the building blocks of that margin? Uh what kind of price increases what kind 55:40 55 minutes, 40 seconds of cost savings what kind of turnarounds do you want to see or do you expect in the next few years? 55:46 55 minutes, 46 seconds So pinakin u I think u it will be arculent task for any industry person to give any estimate of ibida per turn at 55:54 55 minutes, 54 seconds this stage. I would rather uh still uh continue my my efforts on cost and therefore for example uh one thing is 56:02 56 minutes, 2 seconds like 4500 rupees a turn uh let us say it picks out and then it starts coming down from here uh to what journey we will go 56:11 56 minutes, 11 seconds I think progressively we'll keep you posted uh and especially next two three quarters as things looks more brighter 56:17 56 minutes, 17 seconds and clear but for right now uh cost remains the key focus area obviously like when you focus on trade sales and 56:25 56 minutes, 25 seconds only focus on premiums inventory will keep giving you more mitigations. Uh but I think any guidance on IDA will be difficult at this stage. But let me just 56:34 56 minutes, 34 seconds add that cost we are looking at roughly two 250 rupees a ton reduction this year and then another reduction of 250 rupees 56:41 56 minutes, 41 seconds next year as well that that is the minimum reduction that we are looking at. Okay. Thank you. Thank you very much. 56:49 56 minutes, 49 seconds Thank you. 56:51 56 minutes, 51 seconds Participants are requested to do requested to restrict to one question at a time. Please next question is from the line of Rahul 57:00 57 minutes Gupta from Morgan Stanley. Please go ahead. 57:03 57 minutes, 3 seconds Yeah. Hi, thank you for taking my question. My first question is um um now that you have talked about um cumulatively 500 rupees per ton of cost 57:11 57 minutes, 11 seconds improvement over the next couple of years uh are we shying away from the earlier target of rupees 3650 that you 57:18 57 minutes, 18 seconds had shared earlier? That is my question number one. 57:22 57 minutes, 22 seconds So we are not shying away from our target. I think uh uh as we as we told earlier also are we need to focus on our 57:31 57 minutes, 31 seconds execution. We we still have there are multiple steps on the cost that we need to take uh between manufacturing between 57:39 57 minutes, 39 seconds raw material and between logistics. Uh and we are confident that uh we we will be able to achieve that number. I think 57:46 57 minutes, 46 seconds it's just we are giving you a realistic in terms of where we will be able to achieve in next two two years time. Uh but that does not mean that we don't 57:54 57 minutes, 54 seconds have the runway to go to the earlier target that we have set. We we know what are the steps we need to take. We know where where we need to where where where 58:02 58 minutes, 2 seconds we need to improve in terms of our uh efficiency and that's where that's where we are focused on. But this is something 58:09 58 minutes, 9 seconds uh the 500 is what we can commit right now for the next two years. 58:14 58 minutes, 14 seconds Got it. Got it. So I have I have one more clarification that I want um Karan is um you talked about um um uh shifting 58:23 58 minutes, 23 seconds away from 155 million ton capacity. So just a clarification that the company had earlier guided for 15 million t of 58:30 58 minutes, 30 seconds deep bottlenecking exercises across assets. So does that stay or there will be some change on that as well? 58:37 58 minutes, 37 seconds So so that those those still continues. 58:40 58 minutes, 40 seconds I think it's just timing which will differ based on based on where we get the maximum return of the return on the on the investment. 58:50 58 minutes, 50 seconds Got it. Thank you. One final question. I remember in second quarter and third quarter the company was already accelerating your branding and 58:58 58 minutes, 58 seconds advertisement cost. So it would be helpful if you can help us understand what would be overall branding and advertisement cost for full fiscal 26. 59:05 59 minutes, 5 seconds Thank you. 59:07 59 minutes, 7 seconds So uh for the full fiscal year uh 26 we are uh closer to almost like uh almost 59:15 59 minutes, 15 seconds like u uh 700 rupees a ton basically uh 70 rupees a turn basically. Yeah 70 59:24 59 minutes, 24 seconds rupees a ton basically uh on the full year basis of 26. Thank you. 59:31 59 minutes, 31 seconds Next question is from the line of sha from invest. Please go ahead. 59:36 59 minutes, 36 seconds Yeah. Thanks for the opportunity, one question for Karan by one for Vini. Uh uh Karan by one question. What prompted us uh for a research right now? Uh if 59:45 59 minutes, 45 seconds you could highlight five key monitorables that probably have set for yourself for last for next one year and uh how does SSA fit in in overall scheme 59:54 59 minutes, 54 seconds of things after the reset? Sorry, can you repeat that question? I couldn't hear you properly. 59:59 59 minutes, 59 seconds So the first question is uh what prompted us for a reset right now? 1:00:05 1 hour, 5 seconds Second, uh what are the five key monitorables that you have laid out for yourself? And third, how does SL a fit in overall scheme of things after the reset? 1:00:15 1 hour, 15 seconds Yeah. So, I think why why the reset? I mean, um it's it's quite evident our performance has not been great. Uh we've 1:00:23 1 hour, 23 seconds not been able to uh we've not been able to deliver what we have promised to our shareholders. And uh uh and so that is 1:00:31 1 hour, 31 seconds number one. I think if we have to if we have to assess ourself uh we we really need to improve on our on our cost. Uh 1:00:41 1 hour, 41 seconds that is number one. I think the key KPIs that we are putting uh for for ourself is we need to reduce we need to uh two I 1:00:50 1 hour, 50 seconds would say five things that we need to focus on. One is uh L1 plants delivering to the market uh the discipline on L1 1:00:58 1 hour, 58 seconds plants delivering to the to the respective market. Second discipline is on uh uh on on on trade versus non-trade 1:01:09 1 hour, 1 minute, 9 seconds uh sales. Uh number three is on our uh raw material consumption uh reducing our 1:01:16 1 hour, 1 minute, 16 seconds cost on raw material as well as on the on the electricity front uh energy consumption. 1:01:23 1 hour, 1 minute, 23 seconds uh and and uh number four is uh improving our uh improving our uh uh I I 1:01:32 1 hour, 1 minute, 32 seconds would say channel network in terms of to help us increase our uh increase our sales. So, so I think these are the five 1:01:39 1 hour, 1 minute, 39 seconds things but predominantly if I would say 80% of it is to do with the cost and we really need to we really need to get our 1:01:48 1 hour, 1 minute, 48 seconds u act in order in terms of to make sure that we are able to reduce our cost and uh so so that that that is what we are 1:01:55 1 hour, 1 minute, 55 seconds looking at until the time we are not able to deliver on what we are promising um I don't think so it makes sense to to 1:02:03 1 hour, 2 minutes, 3 seconds make more uh to make more uh capital investment because you don't get the returns on those on those capitals 1:02:10 1 hour, 2 minutes, 10 seconds invested as well and on you had a second question. Yeah on uh 1:02:20 1 hour, 2 minutes, 20 seconds service agreements I think for a few of the plans that we have tied up with how how should we look at that on overall yeah sure so as based uh contracts this 1:02:30 1 hour, 2 minutes, 30 seconds is something that uh uh is is part of uh part part of these initiatives because we do believe that what we need to what 1:02:38 1 hour, 2 minutes, 38 seconds we need our teams to focus on and what uh where they where do they need to put their energy on uh we do believe that 1:02:44 1 hour, 2 minutes, 44 seconds there is uh at least in India now there are enough competent uh partners out there who can who can run uh who can run 1:02:54 1 hour, 2 minutes, 54 seconds the plants uh uh at the at the efficiency level that we we would aspire to and and that's how uh that's how we 1:03:02 1 hour, 3 minutes, 2 seconds are looking at and second obviously given the uh history of Abuja in ECC I 1:03:09 1 hour, 3 minutes, 9 seconds think uh uh the SLA partners help us in terms of uh cleaning up all the past uh you know union issues and all of that. 1:03:18 1 hour, 3 minutes, 18 seconds So, so, so from that perspective, it really helps us uh in terms of reducing our cost and improving our efficiency. 1:03:26 1 hour, 3 minutes, 26 seconds Thank you. 1:03:27 1 hour, 3 minutes, 27 seconds Uh, thank you so much. 1:03:31 1 hour, 3 minutes, 31 seconds Next question is from the line of Ashen from McQuary. Please go ahead. 1:03:37 1 hour, 3 minutes, 37 seconds Uh, hi sir, good evening. uh sir uh you know it is it is great to see uh you know explicit capital discipline but in 1:03:45 1 hour, 3 minutes, 45 seconds that context you know I just want to understand this 65 to 70 billion rupees of annual capex uh for the next 2 years 1:03:53 1 hour, 3 minutes, 53 seconds uh that we're talking about can you break it down uh ballpark in terms of uh you know growth versus cost efficiency 1:04:01 1 hour, 4 minutes, 1 second versus any other initiative that it includes yeah so so roughly roughly 4 billion is what uh is already the capex which is 1:04:10 1 hour, 4 minutes, 10 seconds already under execution uh and it is implementation of that uh which includes uh which includes uh capacity which 1:04:19 1 hour, 4 minutes, 19 seconds includes uh WHS which includes your flash uh uh transportation system that 1:04:26 1 hour, 4 minutes, 26 seconds you need and the balance is uh is uh uh I would say uh debottle making plus uh uh plus uh maintenance skeptics. 1:04:37 1 hour, 4 minutes, 37 seconds Yeah. 1:04:40 1 hour, 4 minutes, 40 seconds So, yeah. Yeah. So, yeah. Basically, yeah, I hope that answers your question. Yeah. 1:04:48 1 hour, 4 minutes, 48 seconds Ash. Yeah. Yeah. Thank you. 1:04:52 1 hour, 4 minutes, 52 seconds Next question is from the line of Amit Murala from Access Capital. Please go ahead. Uh, hi. Uh, thanks for the opportunity. 1:05:00 1 hour, 5 minutes Uh I just wanted to understand more from a strategy perspective uh like uh when Adani had acquired these cement assets 1:05:09 1 hour, 5 minutes, 9 seconds uh you had foed out a ambition to kind of uh become the industry leader and double capacity and volume. So in that context the current guidance seems to be 1:05:18 1 hour, 5 minutes, 18 seconds quite subdued. So is it fair to say that there is a reset in ambition uh kind of from from the earlier kind of thought 1:05:26 1 hour, 5 minutes, 26 seconds that was there at the time of acquisition? 1:05:30 1 hour, 5 minutes, 30 seconds So uh we'll be honest with you uh yes partially there is a reset uh we are not 1:05:37 1 hour, 5 minutes, 37 seconds moving away from the target yes we moving away from the timeline uh that is to do with the uh we we know 1:05:45 1 hour, 5 minutes, 45 seconds that we are not delivering uh in terms of what we have uh what we had committed and so it definitely makes sense to step 1:05:54 1 hour, 5 minutes, 54 seconds back to look back and to see where we are going wrong and to course correct and uh and then to and then then that's 1:06:02 1 hour, 6 minutes, 2 seconds where we are and that's why we're giving you the new guidance in terms of where what is the capacity uh revised capacity enhancement that we are looking at and 1:06:10 1 hour, 6 minutes, 10 seconds the time frame that we sure thanks and is there a target IR in mind when you doing your capex program now 1:06:18 1 hour, 6 minutes, 18 seconds it's it's uh capex I mean the project IR has to be 18% your this is all equity money so you have to look at equity return or anybody else. 1:06:30 1 hour, 6 minutes, 30 seconds Sure. Thanks a lot. 1:06:32 1 hour, 6 minutes, 32 seconds Thank you. Next question is from the line of Rajes Ravi from HDFC Securities. Please go ahead. 1:06:40 1 hour, 6 minutes, 40 seconds Hi, good evening. Am I audible? Yes, Rajes, please go ahead. 1:06:44 1 hour, 6 minutes, 44 seconds Yeah, thanks for the opportunity and uh happy to know that the management focus is more graded on capex and also focus 1:06:53 1 hour, 6 minutes, 53 seconds on uh you know cost execution. My only question while you have been candid on the uh you know the guidance uh this 1:07:01 1 hour, 7 minutes, 1 second when you say 250 rupees cost reduction you're looking for FI27 over FYI 26 and at the same time uh from 1:07:09 1 hour, 7 minutes, 9 seconds exit Q4 we are seeing around 250 to 300 rupees cost inflation uh because of the 1:07:16 1 hour, 7 minutes, 16 seconds packaging and fuel wise increase. So is this 250 net off or you know net net you will see 300 of rupees increase and 250 1:07:25 1 hour, 7 minutes, 25 seconds decline. So from current level you would still see our cost going up by 50 to 100 rupees in Q1 or in FY27. 1:07:35 1 hour, 7 minutes, 35 seconds So Rajes uh uh thank you. Uh what we would uh put it is uh 4500 is the peak 1:07:43 1 hour, 7 minutes, 43 seconds and uh this 250 uh reduction is from here. So essentially then it would mean 1:07:49 1 hour, 7 minutes, 49 seconds to 4250 as a target uh for 27 right this is factoring in the cost inflation that we have already used. 1:07:58 1 hour, 7 minutes, 58 seconds Yes that is true. 1:08:00 1 hour, 8 minutes Okay and in Q1 also you're looking at similar cost structure in Q1 versus Q4 versus Q1 what sort of cost 1:08:09 1 hour, 8 minutes, 9 seconds you looking at this is the current cost inflation and your cost savings. So right now uh uh for example the headwind 1:08:18 1 hour, 8 minutes, 18 seconds still continues and therefore uh it it it could be flattish for Q1 and uh as 1:08:24 1 hour, 8 minutes, 24 seconds things uh uh comes out uh better that it will start tapering. 1:08:30 1 hour, 8 minutes, 30 seconds Sorry for the flattish means your current cost which is some of the cost inclusion is factored in Q1 you know the 1:08:38 1 hour, 8 minutes, 38 seconds energy and the packaging almost like 4500 I would peg it for say Q1 and then 1:08:44 1 hour, 8 minutes, 44 seconds from there uh we will have the reduction journey continue and uh for the year therefore we are targeting to have 1:08:51 1 hour, 8 minutes, 51 seconds reduction of 250 rupees right and on the non-p working capital if I look at your core working capital has come down year 1:08:59 1 hour, 8 minutes, 59 seconds on right from 30 days to 20 days but if I look at your nonpor working capital X cash that seems to have gone up 1:09:06 1 hour, 9 minutes, 6 seconds significantly so is there any strategy reasons from what 14 days it has now gone up to 49 days you know that is 1:09:14 1 hour, 9 minutes, 14 seconds where your total noncast working capital seems to have shot up significantly uh you know from 30500 1:09:22 1 hour, 9 minutes, 22 seconds that is therefore like for example some of the uh some of the point which I mentioned that on certain incentives and all now we'll 1:09:29 1 hour, 9 minutes, 29 seconds looking to book it on a actual basis when received then the actual basis for example so that this non-core working capital or of the of operating the 1:09:38 1 hour, 9 minutes, 38 seconds working capital can be controlled uh second is uh I think some of these are uh which you are referring to could be 1:09:45 1 hour, 9 minutes, 45 seconds purely uh accounting u uh working capital so uh maybe uh separately we can connect but uh generally uh the core 1:09:54 1 hour, 9 minutes, 54 seconds working capital as you also mentioned has come down uh and that efficiency of working capital will continue. uh which 1:10:01 1 hour, 10 minutes, 1 second specific uh nonpore you are referring to for example uh you can u connect to me offline and 1:10:08 1 hour, 10 minutes, 8 seconds sir and two clinker which yeah just two clinker plants which you're looking 1:10:16 1 hour, 10 minutes, 16 seconds forward to one was not clinker but clinker and what was the other beyond what is getting commission right now 1:10:24 1 hour, 10 minutes, 24 seconds so two the the ones which I mentioned was one was u uh so in our 73 for example the the 4 million and just to 1:10:33 1 hour, 10 minutes, 33 seconds correct what Rashi asked me the first question but my current capacity is say 69 and this 4 million turn will have one at Pa Jpur 2 million and 2 million at Marata uh that that would be like 73. 1:10:45 1 hour, 10 minutes, 45 seconds Now on top of it uh the upcoming uh mundra will be another uh 2 million of 1:10:53 1 hour, 10 minutes, 53 seconds clim uh so that will uh be over and above this 4 million which I mentioned and then the atam one which will be 1:11:00 1 hour, 11 minutes another uh 2 million so that will be pair of additional new assets and that would actually take you to 1:11:06 1 hour, 11 minutes, 6 seconds three years from now uh that say let us say 24 to 28 years 28 months is what we are delivering 1:11:14 1 hour, 11 minutes, 14 seconds Great. That's all from my side. Thank you and all the Thank you. 1:11:19 1 hour, 11 minutes, 19 seconds Thank you. Next question is from the line of Shraan Shia from Dollarat Capital. Please go ahead. 1:11:26 1 hour, 11 minutes, 26 seconds Yeah. Uh thank you. Uh sir, just to uh clarify this uh 250 rupees uh cost reduction. This is on a full year average FI27 that we are seeing. 1:11:38 1 hour, 11 minutes, 38 seconds Yeah. So so so thanks S. Now this is u for the full year FI27 uh uh as a average and therefore for 1:11:48 1 hour, 11 minutes, 48 seconds example when I say that June quarter will be flat from the March quarter then the degree of acceleration will have to 1:11:56 1 hour, 11 minutes, 56 seconds be more for the red three quarter so you're right the 250 will be average for the year got it and secondh when you 1:12:04 1 hour, 12 minutes, 4 seconds mention about the prices was it 10 rupees and the 15 20 rupees hike that you meion This was for the 1:12:12 1 hour, 12 minutes, 12 seconds April you are wanted to say or this is for March. So currently on an average from the exit of March have the prices 1:12:21 1 hour, 12 minutes, 21 seconds for us have have increased by 10 odd rupees that's what we are trying to say. 1:12:27 1 hour, 12 minutes, 27 seconds Uh yes basically I was hitting on that only uh so April was March as a trend for the high cost. 1:12:38 1 hour, 12 minutes, 38 seconds Okay. And lastly for full year FRA 26 RMC bid in Q4 you mentioned 102 cr but 1:12:44 1 hour, 12 minutes, 44 seconds for full year FR26 what could be the number uh just I will just uh uh dig on this 1:12:52 1 hour, 12 minutes, 52 seconds number. So full year RMX IITA you're asking right? Yes sir. 1:12:58 1 hour, 12 minutes, 58 seconds Okay. Uh around 300 CR. So full year RX is number of year basically for the FY 26. 1:13:09 1 hour, 13 minutes, 9 seconds Yeah. Got it sir. Thank you. And I hope we will be achieving our cost reduction targets and maybe uh uh revisiting and 1:13:18 1 hour, 13 minutes, 18 seconds then upgrading the uh uh the original target. Thank you. Yes. Thank you very much. 1:13:24 1 hour, 13 minutes, 24 seconds Thank you. Next question is from the line of Ra Maheshwari from Equir Securities. Please go ahead. 1:13:32 1 hour, 13 minutes, 32 seconds Yeah. Hi sir, good afternoon. So just one question from the keex side. Our keex is continuously getting delayed as 1:13:40 1 hour, 13 minutes, 40 seconds a adani standard. We are known for a pro capex and a very fast execution. But at the cement we are continuously getting 1:13:48 1 hour, 13 minutes, 48 seconds delayed. At the especially like marata plant we have we have already delayed plus our earlier plant also got got 1:13:54 1 hour, 13 minutes, 54 seconds delayed for um this one chaser one. What is the issue behind the contin and the continuously we are getting some 1:14:01 1 hour, 14 minutes, 1 second breakdowns at our bigger plant? Uh is it the maintenance related issue or what we are facing currently right now? So 1:14:09 1 hour, 14 minutes, 9 seconds you're right uh your observation is right that capex capeex has not been uh up to the mark and that's one of the 1:14:16 1 hour, 14 minutes, 16 seconds reasons why uh we are we are pausing and correcting ourself and we want to first complete our uh projects that we have 1:14:25 1 hour, 14 minutes, 25 seconds taken in our hand before we start any new new new projects. One of the main reasons why uh we have not been able to 1:14:34 1 hour, 14 minutes, 34 seconds deliver as per what what what our standards are is uh two two three things I think uh one is uh we did not choose 1:14:44 1 hour, 14 minutes, 44 seconds the right contractor uh when execute for for execution. Number two is uh you know we started these projects when we 1:14:52 1 hour, 14 minutes, 52 seconds acquired Abuja and ACC and at that time there was no team. So it took us time to build up that team as well. Um and uh we 1:15:00 1 hour, 15 minutes are confident that at least now we will be able to uh able to complete these projects in the timeline that were given. And number three is a lot of 1:15:09 1 hour, 15 minutes, 9 seconds these projects were started without uh full engineering being done in place. Uh so so we are using this 6 months uh to 1:15:17 1 hour, 15 minutes, 17 seconds complete all our engineering for the new projects that we are thinking of starting and once that is in place then we will be we will be looking at 1:15:25 1 hour, 15 minutes, 25 seconds starting the project. So, so that's that's where uh you are but you're right that that's a correct observation that uh we've not been uh able to deliver 1:15:34 1 hour, 15 minutes, 34 seconds projects uh in the stipulated time. Uh number two I think the uh breakdown I would say it is predominantly in the 1:15:42 1 hour, 15 minutes, 42 seconds acquisition assets where where we have seen u uh major breakdowns happening especially Panda and Tangi uh and that's 1:15:49 1 hour, 15 minutes, 49 seconds where the problem area has been for us and that's where the team is focused on in terms of improving the uh improving 1:15:57 1 hour, 15 minutes, 57 seconds the reliability of the plants and uh and that's one of the reasons why uh you are seeing a higher R&N costs uh in this 1:16:06 1 hour, 16 minutes, 6 seconds here uh partially because a lot of the uh repairs and maintenance which was uh which was supposed to be done was not 1:16:14 1 hour, 16 minutes, 14 seconds done and uh which which is why we uh why one of the reasons for this uh breakdown as well. 1:16:22 1 hour, 16 minutes, 22 seconds Thank you. Thank you. 1:16:24 1 hour, 16 minutes, 24 seconds I request you to join back please as we have other participants waiting for their turn. Thank you. 1:16:33 1 hour, 16 minutes, 33 seconds Next question is from the line of Hersh Mitel from MK Global. Please go ahead. 1:16:38 1 hour, 16 minutes, 38 seconds Yeah, good evening man. Thank you for the opportunity. So my first question is that in your pursuit to focus on premiumization 1:16:46 1 hour, 16 minutes, 46 seconds uh what is the current average gap between brands uh versus the nearest 1:16:53 1 hour, 16 minutes, 53 seconds competitor currently and what is the target to narrow it further. My first question. 1:17:00 1 hour, 17 minutes So uh you are referring to premium cement and uh I can highlight that the gap between my base product and the 1:17:09 1 hour, 17 minutes, 9 seconds premium cement product is closer to let us say 50 55 rupees for the super premium and 20 25 rupees for the premium 1:17:17 1 hour, 17 minutes, 17 seconds one. I think that was like first then second your question is about the gap between our price and compared to that 1:17:24 1 hour, 17 minutes, 24 seconds competition. I think see everyone u uh uh looks to his price better than others and therefore uh every every time when 1:17:32 1 hour, 17 minutes, 32 seconds the industry people try and compare there is always different opinions. Uh I would say that uh the u the uh uh the 1:17:40 1 hour, 17 minutes, 40 seconds pan India players like us and uh uh basically the other players number one altered I think the prices are more or less in the similar range in few 1:17:48 1 hour, 17 minutes, 48 seconds districts 5 10 rupees here and there either they are higher or we are lower or whatever reverse way but uh that's 1:17:55 1 hour, 17 minutes, 55 seconds how the trend has been and that is also reflected in the overall NSP of the quarter which is close to each other for the number one and number two. 1:18:05 1 hour, 18 minutes, 5 seconds Sure. Thank you Harish. I request you to join back please as we have participants waiting for their turn. Sure. 1:18:11 1 hour, 18 minutes, 11 seconds Thank you. Next question is from the line of Satya Jen from Ambit Capital. Please go ahead. 1:18:18 1 hour, 18 minutes, 18 seconds Hi thank you. U this question is for current. I just want to understand um the comment u you made about um 1:18:26 1 hour, 18 minutes, 26 seconds recalibrating capacities that earlier um the capacities were not in the right location. Now the capacities looking in 1:18:33 1 hour, 18 minutes, 33 seconds the right location. So where were you initially looking at these capacities? I believe Sani was also there in terms of expansion initially. So maybe could you 1:18:42 1 hour, 18 minutes, 42 seconds just discuss um where is this recalibration coming from in terms of capacities? 1:18:48 1 hour, 18 minutes, 48 seconds No. So uh the recalibration is coming um basically you know especially where we have the integrated units uh those are 1:18:57 1 hour, 18 minutes, 57 seconds the locations where we are re reccalibrating because uh uh we find that the grinding units uh uh the the 1:19:06 1 hour, 19 minutes, 6 seconds operating cost the logistics cost one of the reasons for the logistics cost being so high compared to competition is 1:19:12 1 hour, 19 minutes, 12 seconds because uh uh the the the in distance traveled by the integrated units is quite higher than than what uh what it 1:19:21 1 hour, 19 minutes, 21 seconds should be. Uh so so one of the things that we are working towards is uh uh you know shutting down the grinding units in 1:19:28 1 hour, 19 minutes, 28 seconds uh in lot of these places and moving them closer to the market. So that is the recalibration we are looking at. Uh I don't think we are looking at 1:19:35 1 hour, 19 minutes, 35 seconds recalibration of uh let's say pinker units. Uh the second is uh uh via uh 1:19:43 1 hour, 19 minutes, 43 seconds vasi is predominantly a uh plinker plus cement. We are moving towards in the 1:19:50 1 hour, 19 minutes, 50 seconds next years you will see Sani moving uh predominantly into Prinker and you will see new capacities coming up on the 1:19:56 1 hour, 19 minutes, 56 seconds coastal coastal region of Puja. Uh and the H line 2 is one of the classic classic examples of of that where we 1:20:05 1 hour, 20 minutes, 5 seconds would look at Sandy supplying linker and moving and cement being supplied from these tubes. Uh so some of these 1:20:12 1 hour, 20 minutes, 12 seconds recalibration is happening majority of the recalibration is happening in the north uh UP and Bihar's region and uh 1:20:20 1 hour, 20 minutes, 20 seconds and southern Gujarat southern Gujarat and Maharashtra. 1:20:24 1 hour, 20 minutes, 24 seconds So this is not um something ACC specific because I believe ACC had more integrated unit but you're mentioning 1:20:31 1 hour, 20 minutes, 31 seconds it's both ACC and Abuja. It's ACC and Ambuja both both of them had issues. So I'll give you example like uh today we 1:20:40 1 hour, 20 minutes, 40 seconds move we supply our Bihar market through Chhattisgarh uh and in that and though we get the IDA 1:20:48 1 hour, 20 minutes, 48 seconds but uh it is not the optimal movement of the of the cement uh that we are seeing. 1:20:53 1 hour, 20 minutes, 53 seconds So so that's why we are looking at we need to set up uh grinding units in Bihar to serve uh to serve the Bihar market and and Chhattisgarh unit should be just a clinker unit. 1:21:05 1 hour, 21 minutes, 5 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand the conference over to Mr. Deepak Balwani for closing comments. 1:21:14 1 hour, 21 minutes, 14 seconds Over to you sir. 1:21:16 1 hour, 21 minutes, 16 seconds Yeah. Thank you sai for joining the call and sharing your insight. Thank you all. 1:21:20 1 hour, 21 minutes, 20 seconds I trust most questions have been answered. You have my contact number. Please feel free to call me. Thank you. 1:21:26 1 hour, 21 minutes, 26 seconds Thank you on behalf of JM Financial Institutional Securities Limited. That concludes this conference. Thank you for joining us. And even now disconnect your lines.