Sagar Cements Ltd — Q4 FY26

Sagar Cements Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=0Dc6pmJKcx0 Published: 2 hours ago

0:00 Morning ladies and gentlemen. Welcome you all to 4qfi 26 results conference call of 0:07 7 seconds servicemen limited. From the management team we have with us today Mr. Shriant Radi joint managing director, Mr. K Prasad, chief financial officer, Mr. 0:18 18 seconds Rajesh Singh Chief Marketing Officer and Mr. Raja Reddi the company secretary. I would now like to hand over the call to 0:26 26 seconds Gavin Desa from CDR India for his opening comments post which we will hand over the call to management. Over to you Gavin. 0:35 35 seconds Uh thank you VA just to add uh we will begin this call with opening remarks for the management following which we will have floor open for an interactive Q&A 0:43 43 seconds session. I would also like to point out that while some statements made in today's discussion may be forward-looking in nature a note to this effect was stated in the phone call 0:51 51 seconds invite sent to you earlier. I would now like to hand over to Mr. Fikadra for his opening remarks. 1:01 1 minute, 1 second Thank you Gavin. Uh good morning everyone and welcome to Salisman's earnings call for the quarter and year ended March 31st 2026. 1:10 1 minute, 10 seconds Yeah, let me begin the discussion with a brief overview of the market post which I will move on to s specific developments. As indicated earlier, 1:18 1 minute, 18 seconds overall demand during the quarter remained resilient particularly in the first two months support supported by a sustained 1:26 1 minute, 26 seconds construction activity. However, momentum moderated towards the later part of the quarter due to labor shortages during the festive season and the impact of the 1:35 1 minute, 35 seconds unseasonal rates. The pricing environment also remained stable largely driven by improvement in realizations in 1:42 1 minute, 42 seconds the non- rate segment. Moving on to Saga specific developments. During the year we completed the minimum public 1:49 1 minute, 49 seconds shareholding requirement in Saga Cements in Andra Simments uh through OFS providing added financial flexibility at 1:58 1 minute, 58 seconds the parent level. We also closed the year on a strong note with volumes for both quarter and the full year growing 2:04 2 minutes, 4 seconds by 8% and 11% respectively. Our total volumes for the year stood at 6.1 million ton broadly in line with our 2:13 2 minutes, 13 seconds expectation reflecting steady execution despite a dynamic operating environment. 2:19 2 minutes, 19 seconds Demand remained resilient across our key markets particularly driven by sustained traction infrastructure and rural 2:26 2 minutes, 26 seconds segments which supported the topline growth of 20% during the quarter. 2:31 2 minutes, 31 seconds revenue were also added by favorable pricing trends in the non-trade segment leading to an improvement in overall realizations. Looking ahead, we remain 2:41 2 minutes, 41 seconds optimistic about the demand outlook across our core regions. Continued construction activity supported by 2:48 2 minutes, 48 seconds government-led infrastructure spending and stable rural demand provides a strong visibility. Based on this, we expect our volumes to be in the range of around 7 million ton for FI27. 3:01 3 minutes, 1 second On the operational front, our AITA per ton for the quarters stood today at rupes 445 as against rupees 218 per ton 3:09 3 minutes, 9 seconds reported during Q4 FI25. Going forward, we expect profitability to improve supported by structural cost efficiency 3:17 3 minutes, 17 seconds initiatives. This includes benefit from WHRS and increasing share of renewable energy through solar power, logistics 3:27 3 minutes, 27 seconds optimization and efficiency improvements from ongoing plant upgrades. Power and fuel cost today at rupees 1422 per ton 3:36 3 minutes, 36 seconds as against rupees 1406 per ton reported during Q4 FI25. Freight cost for the 3:43 3 minutes, 43 seconds quarter stood at rupees 848 per ton as against rupees 822 per ton during Q4 3:50 3 minutes, 50 seconds FI25 from an operational point of view plant operated at 59% utilization while 3:58 3 minutes, 58 seconds Guripadu Boram Jiraabad Jajpur and DJ pali plants operated at 84% 69% 95% 44% and 38% respectively during the quarter. 4:10 4 minutes, 10 seconds During the year, the group opted to be taxed under section 115BA of the Income Tax Act 1961. Accordingly, deferred tax 4:20 4 minutes, 20 seconds assets and liabilities have been remeasured. 4:23 4 minutes, 23 seconds The group has recognized the deferred tax asset on the car carry forward business losses and unabsorbed depreciation in Andra Simments Limited 4:32 4 minutes, 32 seconds based on projected future taxable income which provides convincing evidence 4:42 4 minutes, 42 seconds that sufficient taxable profits will be available to utilize the losses. Profit after tax for the quarter stood at rupees 100 cr. As far as the key balance 4:51 4 minutes, 51 seconds sheet items are concerned, the gross debt as on 31st March 2026 stood at rupees 1672 crores out of which 1379 5:00 5 minutes crores as a long-term debt and the remaining constitutes the working capital. The net worth of the company on 5:07 5 minutes, 7 seconds a consolidated basis as on 31st March 2026 stood at rupes 1861 crate equity 5:14 5 minutes, 14 seconds ratio stands at 74 is to1 cash and bank balances were rupees 107 crores as on 5:21 5 minutes, 21 seconds 31st March 2026 on the capeex front the company has successfully commissioned 2.8 8 megawatt of the waste heat 5:30 5 minutes, 30 seconds recovery system pertaining to the AQC boiler out of the 4.35 megawatt on 12th May 2026. The balance capacity of 1.55 5:40 5 minutes, 40 seconds megawatt relating to the preheater boiler is expected to be commissioned by end of June 2026. Further our expansion 5:47 5 minutes, 47 seconds projects at Dacapilli and Jerabad are progressing and we remain focused on executing these projects within defined timelines and budget. These expansions 5:56 5 minutes, 56 seconds along with our existing surplus capacity position us well to capture the incremental demand. The board board of directors of the company in their 6:05 6 minutes, 5 seconds meeting on 30th March 2026 have recorded in principal approval of amalgamation of the Andra cements limited subsidiary 6:13 6 minutes, 13 seconds company with Saga Cements subject to necessary approvals from the authorities concerned under section 230 and 232 of the company's act 2013. 6:23 6 minutes, 23 seconds Further, the board of directors in the meeting held on 13th March May May 2026 approved the establishment of a new 6:31 6 minutes, 31 seconds division, the super fine building materials to capitalize on the growing demand for advanced, durable and eco-friendly construction solutions. The 6:39 6 minutes, 39 seconds division will focus on high performance super fine materials derived primarily from our GGBS and fly ash getting into 6:46 6 minutes, 46 seconds precision construction and sustainable building applications. These products will support applications such as ultra high performance concrete, structural 6:55 6 minutes, 55 seconds repairs, interior finishing and cladding solutions. The initiative aligns with the company's long-term growth strategy and aims to strengthen its presence in advanced building materials segment. 7:06 7 minutes, 6 seconds Overall, we are confident of sustaining healthy growth over the medium to long term supported by capacity additions, 7:13 7 minutes, 13 seconds operational efficiencies and business diversification. That concludes my opening remarks. We would now be glad to take any questions that you may have. 7:22 7 minutes, 22 seconds Thank you. 7:24 7 minutes, 24 seconds Thank you sir. So we will now begin the question and answer session. Anyone who have the question can ask through raise of hand or through chat box. 7:34 7 minutes, 34 seconds We will wait for a minute for questions to assemble. 7:49 7 minutes, 49 seconds Meanwhile, sir, first question is from my side. Sir, can you please uh elaborate more on the expected cost uh 7:57 7 minutes, 57 seconds higher impact that we can see in the coming quarter because of the West Asia crisis? 8:06 8 minutes, 6 seconds Yeah, Viba as you would have seen uh the petco and the coal prices are on an uptrend uh which we did indicate in in 8:14 8 minutes, 14 seconds our presentation but fortunately in our case uh the inventories of the fuel is relatively available till uh middle of Q2. 8:24 8 minutes, 24 seconds uh we we do not expect a significant cost increase in a short term but on a high uh medium to longer term yeah we 8:33 8 minutes, 33 seconds have to see the outcomes of the war but as it stands the petco prices are on a increasing trend uh from what we used to 8:42 8 minutes, 42 seconds be close to around 120 is already hinging around 136 to 140 uh dollars uh 8:50 8 minutes, 50 seconds on a cif basis uh so that should uh invariably add up another 200 rupees up 8:58 8 minutes, 58 seconds to clinker level. Uh at cement level it should definitely add close to 100 to 150 on the current uh kind of a blending 9:06 9 minutes, 6 seconds for us. Uh but we we we expect things to shape up better uh and fairly quickly 9:13 9 minutes, 13 seconds but uh we we we have inventories all the way up to middle of Q2. 9:22 9 minutes, 22 seconds Thank you. Thank you sir. Uh next question we have from Mr. Rajat Satya. 9:27 9 minutes, 27 seconds Uh sir please go ahead with the question. 9:33 9 minutes, 33 seconds So sir you were saying that we won't be impacted till middle of uh next quarter 9:39 9 minutes, 39 seconds like you do uh and and the prices that have gone up so far uh the impact is 100 9:47 9 minutes, 47 seconds to 150 per turn basis. Is that what you are saying? 9:53 9 minutes, 53 seconds on a cement basis. Yes. Uh Mr. Rajit Sita uh uh at the current price trends 10:00 10 minutes that we see in the market uh where the petco landed cost and everything we did indicate in our presentation uh when it fully starts uh impacting us. 10:11 10 minutes, 11 seconds I think that should be the net impact on us uh to uh but we we we see that impacting us from middle of uh Q2 10:19 10 minutes, 19 seconds onwards. uh if prices don't uh uh come down uh okay from here 10:27 10 minutes, 27 seconds and and have we started stocking up inventory at current levels or we are waiting not yet not yet I think we we are still 10:36 10 minutes, 36 seconds in negotiation uh we we are we are switching to some amount of domestic coal so we are still 10:42 10 minutes, 42 seconds evaluating uh options to source mostly domestic uh uh 10:49 10 minutes, 49 seconds our ability to switch to any of the fuels is helping us to focus more on domestic coal. How much of imported coal 10:57 10 minutes, 57 seconds substitution would uh would be known probably by by end of this quarter itself Mr. Rajett. So we'll be in a much 11:05 11 minutes, 5 seconds better situation uh uh to to communicate exactly what the real impact is going to be for us by end of this quarter. 11:14 11 minutes, 14 seconds Okay. And sir uh other expenses have gone up by 28%. on Q onQ basis. So is there anything that you can share to understand this? 11:27 11 minutes, 27 seconds Yeah. 11:29 11 minutes, 29 seconds Yes sir. I will update on that. There are one of uh expenses for the quarter. 11:34 11 minutes, 34 seconds There is an minebearing lands. uh it's a close to 7 and a half cr we considered during the current year and also there 11:43 11 minutes, 43 seconds is a one district mineral foundation which is one of the subsidiary relates to one of the subsidiary company that is sager cement cm private limited is a 11:52 11 minutes, 52 seconds close to 3.24 to four cr we considered during the quarter both put together close to 10 and a half cr one of the 11:59 11 minutes, 59 seconds expenses we considered the current quarter okay that is the only one off but but the overall other expenses if you look 12:07 12 minutes, 7 seconds at they are 700 plus so even if we remove 100 you know 10 crores so then 12:14 12 minutes, 14 seconds the impact I mean the growth which has been 28% will come down to 26 so so everything else would you say is uh 12:22 12 minutes, 22 seconds normal or yeah yeah rest is normal in line with the operations. So these two elements are the one-off expenses. 12:30 12 minutes, 30 seconds Okay. So has anything shot up in this quarter in terms of the prices and why that's why this is up so much because 12:39 12 minutes, 39 seconds even on a uh yearon-year basis it is up 14%. I mean just trying to understand whether this 700 cr of cost base is the normal cost base on a quarterly basis. 12:52 12 minutes, 52 seconds No. 12:53 12 minutes, 53 seconds there are a couple of promotional activities we spend uh during the quarters. So so that that's what it's a 13:01 13 minutes, 1 second part of the other expenses. So I will give you in detail itself post this meeting. U 13:09 13 minutes, 9 seconds sure sure I mean the idea is to understand whether the cost base at 700 cr is going to sustain or or how how 13:15 13 minutes, 15 seconds should we look at it? And so second uh if you can talk about how is the current quarter progressing in terms of the volume and the pricing. 13:27 13 minutes, 27 seconds Mr. Rajit uh the the current quarter progress on a volume front yeah yearon-year number is up of uh 7%. 13:38 13 minutes, 38 seconds uh it's it's reasonably progressing in line with what we have indicated for a 7 million for the complete year in terms 13:45 13 minutes, 45 seconds of our volume outlook. Though there is some amount of slowdown because of the elections uh where the labor outgo and 13:53 13 minutes, 53 seconds they coming back we expect things to start stabilizing uh before end of this month. Uh but for that we we we we see a 14:02 14 minutes, 2 seconds very strong demand outlook for the current year uh for most of our operations. Mr. Raj answer pricing compared to 14:10 14 minutes, 10 seconds the pricing from middle of April to to now the prices have been stable from 14:17 14 minutes, 17 seconds exit of exit of uh March uh uh to the middle of uh or rather end of April the 14:24 14 minutes, 24 seconds prices picked up by almost uh 25 rupees per bat and more or less from then on it has remained flat in our case uh Mr. 14:32 14 minutes, 32 seconds Rajat. 14:34 14 minutes, 34 seconds Okay, thanks. The last one uh last couple of years uh I mean you must be seeing that the volume guidance that we 14:43 14 minutes, 43 seconds talk about at the beginning of the year we generally are not able to meet it uh because of various reasons. So now that 14:49 14 minutes, 49 seconds we are targeting 7 million tons which is 15 16% kind of volume growth uh maybe 15%. 14:59 14 minutes, 59 seconds You should note like last year we did indicate close to 6 million we crossed 6.1 million. So we do expect uh even in 15:07 15 minutes, 7 seconds the current year the 7 million target that we are trying to achieve is purely because of the ramp up because you should be aware that uh our Jiraabad 15:16 15 minutes, 16 seconds plant is upgrading itself and we are hopeful that before the end of this quarter the plant upgrade would happen 15:24 15 minutes, 24 seconds by additional half a million and at the same time ramp up of Andra cement also is happening both in terms of uh uh 15:33 15 minutes, 33 seconds capacity but uh Not withstanding the capacity expansion, we do expect a ramp up at Andra Andra level. The that is the 15:41 15 minutes, 41 seconds reason why we are expecting a a 9 million ton kind of additional volume. 15:47 15 minutes, 47 seconds Uh though the markets that we operate are likely to grow anywhere between 12 to 15%. We did not pencil in the entire 15:57 15 minutes, 57 seconds 15% growth for ourself in the region alone. uh there is an half a million ton 16:03 16 minutes, 3 seconds and for more than 3/4 uh the incremental half a million should be available in jiabad where we have always been 16:11 16 minutes, 11 seconds operating up of 90% uh Mr. Rajad so yeah we we are hoping that uh to be very close to the indicative target Mr. 16:20 16 minutes, 20 seconds Last couple of years as you know uh the prices did not support us for volume growth. Uh we we usually don't want to 16:28 16 minutes, 28 seconds lose cash uh for the sake of volume. So we we probably would have underperformed on the volumes purely on account of uh 16:36 16 minutes, 36 seconds not wanting to lose money uh we we don't chase market share. We actually conserve uh the cash that that is that is our 16:43 16 minutes, 43 seconds philosophy and that remains. But given the current demand outlook and the current pricing uh kind of a thing we are more than hopeful to achieve uh 7 million tons Mr. for the current year. 16:54 16 minutes, 54 seconds Thank you so much and wish you all the best. Thank you sir. 16:59 16 minutes, 59 seconds Thank you. We will take next question from Mr. Rah Malik. 17:04 17 minutes, 4 seconds Hi sir, thank you for the opportunity and congrats on a good set of numbers. 17:07 17 minutes, 7 seconds Uh just a few questions on this super fine building materials division that we're setting up. So uh I understand you know that's might might be a little 17:16 17 minutes, 16 seconds similar to you know the one existing player that uh has started off with GGBS. Is there some sort of cost 17:22 17 minutes, 22 seconds synergies uh we also have in this space or like what is is there some advantage to getting into this venture? 17:33 17 minutes, 33 seconds Yeah. Uh Mr. Raghav uh good morning. Uh see it's it's an extension for our existing business because we we we are 17:40 17 minutes, 40 seconds in GGBS space. We have we have been one of the old players in the GGBS space but we are limited to only two of our manufacturing facilities. One at Boram 17:49 17 minutes, 49 seconds that is close to Visak in Andra and Jajpur in Odisa. Uh we have access to 17:57 17 minutes, 57 seconds both fly ash as well as the GGBS. uh as I mentioned uh the there are advantages 18:04 18 minutes, 4 seconds because we we do produce GGBS and we need to invest very minimal amount uh to to separate super funds you know 18:12 18 minutes, 12 seconds currently the GGBS is sub 4,000 BL on a finance uh with a minimal investment we could we 18:20 18 minutes, 20 seconds could separate the fines that come out of the production uh our target is to look at anywhere between 10 to 20,000 18:28 18 minutes, 28 seconds kind of a blane separation for both fly ash as well as GGBS along with micro silica. Yeah, these products primarily 18:37 18 minutes, 37 seconds cater to advanced uh construction material and also into the high performance concrete. Sir, we we are 18:44 18 minutes, 44 seconds already in that segment especially we do have a very strong relationship with uh players who would definitely need this 18:51 18 minutes, 51 seconds product going forward especially into the pre-cast segment. Uh so we are leveraging on our relationship but at 18:59 18 minutes, 59 seconds the same time our target is to get into advanced building materials which are very sim to to to the product range that 19:06 19 minutes, 6 seconds we already have. Uh we are also looking at some of the innovations and the technical uh solutions that uh we that 19:15 19 minutes, 15 seconds we want to offer. part of that this is the first step towards uh giving advanced solutions where we could 19:23 19 minutes, 23 seconds definitely do lot of value add uh to ourself as well as to our customers Mr. 19:29 19 minutes, 29 seconds and we would be more than happy keeping uh the stakeholders updated on the progress that we are making. Uh this is 19:36 19 minutes, 36 seconds only a first step towards uh uh getting into a much uh higher higher end and 19:43 19 minutes, 43 seconds technically advanced kind of solutions and the materials that we uh as a company we would want to enter. Mr. 19:50 19 minutes, 50 seconds Raga, sure sir. And any kind of you know longerterm maybe volume targets from this and also like is there some 19:59 19 minutes, 59 seconds indication of versus you know current products and in the advanced space or uh just cement what would the kind of premium maybe be uh in terms of pricing 20:08 20 minutes, 8 seconds premium or discount uh for some of these products. 20:12 20 minutes, 12 seconds Yeah, I I I would not like to comment on the price premium because they are into very very different segment because GGBS as I mentioned for a low blame that is 20:21 20 minutes, 21 seconds sub 4,000 blame typically sells on an Xbox basis anywhere between 2 and a half,000 to 3,000 rupees per ton. Uh 20:29 20 minutes, 29 seconds whereas the super fines sell up of 30,000 rupees per ton Mr. ago that's the delta but volumes typically would be 20:37 20 minutes, 37 seconds very very low for these uh and these are more technomarketing related so this is not something which is sold like uh 20:46 20 minutes, 46 seconds commoditized kind of a product like cement it needs team it needs the technical capability it also needs lot of R&D 20:53 20 minutes, 53 seconds which we are already into it uh so we would want to come into that uh segment uh with lot of experience handling these 21:03 21 minutes, 3 seconds materials even in the class. So, so that's what I would like to highlight at this point of time, but we would be more than happy to come back to all of you at appropriate time and it's not too far. 21:14 21 minutes, 14 seconds So, we will be keeping you updated from time to time uh about the progress that we are making in this particular product. It's not 21:22 21 minutes, 22 seconds only this product but also into the solutions. Yeah, we we we did we we we have been engaged with some of the very 21:29 21 minutes, 29 seconds advanced uh uh construction solutions uh where there are not many players or no players uh in in some of the activities 21:38 21 minutes, 38 seconds that we have done which is purely technical in nature where we definitely like to add value to oursel as well as to to the clients that we have been 21:46 21 minutes, 46 seconds servicing. Mr. Sure sir. Thank you. 21:52 21 minutes, 52 seconds Thank you. We will take the next question from Mr. Rajesh Rai. 21:59 21 minutes, 59 seconds Mr. Rajes, you can go ahead with your question. Good. Uh good morning. Am I audible? 22:06 22 minutes, 6 seconds Yeah, very much. Good morning. 22:09 22 minutes, 9 seconds Okay, great sir. Sir, first question pertains to Jiraabad grinding expansion expected to come in Q1. uh would be we 22:17 22 minutes, 17 seconds engaging in clinker sales in FY27 also or you fully exhausted in your cement. 22:24 22 minutes, 24 seconds Yeah, I think in the current year we we do expect some amount of clinker sale. 22:29 22 minutes, 29 seconds Uh quantifying that at this point of time is going definitely going to be a challenge because you know the ramp up takes time. So during this time there is 22:37 22 minutes, 37 seconds a possibility that we still might uh do some clinker sale uh but it is subject to the price of the clinker. So we never 22:45 22 minutes, 45 seconds lost margin at the expense of the clinker. Uh but but we do expect some 22:51 22 minutes, 51 seconds amount of clinker sale as the uh uh grinding unit is likely to ramp up in a phased fashion. Uh so during that time 23:00 23 minutes we definitely would have some clinker sale Mr. Aish. 23:06 23 minutes, 6 seconds Okay sir clinker margin would be at the beta margin level would be similar to uh number which you have reported in yeah for that location. for that 23:13 23 minutes, 13 seconds location. Yes sir. For that location as a margin as a percentage uh we did not compromise in a in a big way because uh that location has its advantages. Uh Mr. 23:24 23 minutes, 24 seconds Rajesh correct understood understood. Second on the cost exceptional items on the 23:31 23 minutes, 31 seconds exceptional items in Q4 what exceptional cost line items are there in the operating cost or one off in nature? 23:41 23 minutes, 41 seconds Yeah Mr. Rajes Shad CFO did update but just for the clarity sake yeah there is an uh road infrastructure 23:48 23 minutes, 48 seconds uh as well as some DMF related expenditure at at our Jiraabad unit which actually needed clarity from 23:55 23 minutes, 55 seconds regulatory uh this thing uh so we did make uh the provisions uh I think from here on uh we we 24:04 24 minutes, 4 seconds accumulated for last many at least 3 years since we started the unit from here on it is going to be part of the operational income and it's not very very significant amount either way Mr. 24:14 24 minutes, 14 seconds Rajesh compounded it looks higher but from from a spread perspective from an operational 24:22 24 minutes, 22 seconds impact which we are going to make provision uh on a monthto month on a quarter to quarter yeah it may not significantly alter in a big way Mr. 24:31 24 minutes, 31 seconds Okay. So in Q4 uh the number which you would have acrewed uh would that be the number 10. So that would be for multiple quarters right? 24:41 24 minutes, 41 seconds Yeah it is for multiple years Mr. Rajes multiple years. So if I want to remove the impact for you know preceding period that would be how much? 24:53 24 minutes, 53 seconds Yeah I think Mr. Rajes we would regard to you with specific that information. Sure. Sure. 24:58 24 minutes, 58 seconds Yeah. But it spread over three three and a half years. So we would we would again it's a very volume specific kind of a number on ton of limestone. So we would be happy sharing that data offline Mr. 25:10 25 minutes, 10 seconds Radish but but it's it's three and a half year spread. So from a cost perspective uh once we normalize it it's 25:19 25 minutes, 19 seconds not a very very significant one. it should be less than 2 crores uh per year kind of an impact uh if I may have to 25:26 25 minutes, 26 seconds say but with increased volume of sale I think uh that number probably on a part-time basis is going to be well 25:33 25 minutes, 33 seconds tapered out uh to a much lower number Mr. 25:36 25 minutes, 36 seconds Okay. Okay. Okay. And on the in the other income uh there is a higher number 11 cr what is that pertains to and uh is 25:45 25 minutes, 45 seconds there any land monetization which has happened? 25:52 25 minutes, 52 seconds You're talking of information I think it's mostly to do with the incentives uh that we we we received Mr. 26:00 26 minutes Rajes during the current year quarter. 26:03 26 minutes, 3 seconds Oh, that would be what I understand that would be part of your revenues, right? The jira incentives. 26:10 26 minutes, 10 seconds Yeah. The other income is the income on YFS. So, see we diluted ST in Andra cement. 26:18 26 minutes, 18 seconds So, other income is inclusive of that. 26:23 26 minutes, 23 seconds Understood. Okay. Understood. And lastly, uh is there any guidance on the super fine business for on revenue and 26:30 26 minutes, 30 seconds ITA? I understand it would be too early but any ballpark number you're working with for FI2728. 26:37 26 minutes, 37 seconds Yeah Mr. Rajes I think we would we would revert with very specific presentation pertaining to that in due course of time. Uh kindly bear with us. Uh but 26:46 26 minutes, 46 seconds what what we do expect is up of 30% kind of a margin as a minimum uh in that business line but uh the top line and 26:55 26 minutes, 55 seconds the bottom line numbers we would be happy to uh come back to all of you. uh kindly bear with us uh till the next quarter end please. 27:04 27 minutes, 4 seconds Understood. And lastly on the uh operating cost uh with the clinical unit at Andra also stabilized uh so you know 27:12 27 minutes, 12 seconds excluding the fuel price increase and the packaging cost increase. Have our numbers stabilized are there rooms for further reduction in the operating cost? 27:29 27 minutes, 29 seconds Hello. Hello. 27:38 27 minutes, 38 seconds We can't hear you. 27:47 27 minutes, 47 seconds We can't hear you. 27:52 27 minutes, 52 seconds Yeah. Yeah. Rajesh. I think there is some disconnect. Uh okay. Conor will rejoin again. 28:00 28 minutes Sure. Okay. So maybe if you could answer uh you know what sort of cost normalization which is still expected in 28:09 28 minutes, 9 seconds uh you know on the company level now because the uh this is second quarter. 28:16 28 minutes, 16 seconds Yeah. Post commissioning of prehead at Antra. So it is in line with the sector right now. Say it is close to 200 to 250 28:25 28 minutes, 25 seconds rupees per ton higher when we compared with other units of us and even in line with the sector. So now post 28:32 28 minutes, 32 seconds commissioning uh yeah everything the fuel related and all it comes back to normal. So today we are incurring around 28:39 28 minutes, 39 seconds 700 to 700 kl per ton of clinker. So that's what earlier it is around 775 to 780. 28:48 28 minutes, 48 seconds So once uh now at clinker level it is normal. Going forward we are going to commission the 28:57 28 minutes, 57 seconds new VRM for the cement grinding that is going to be commissioned by September uh this year. So post that the overall 29:06 29 minutes, 6 seconds whatever cost saving we estimated the we are going to achieve with that sir. 29:12 29 minutes, 12 seconds Okay. And uh given the current scenario any guidance on the margins uh can we expect uh you know further improvement 29:20 29 minutes, 20 seconds in margins from uh you know this quarter uh margin performance 430 440 rupees level or yeah yeah definitely definitely it is 29:29 29 minutes, 29 seconds going to be in line with the sector right now. Yeah, it is going to be in line with other units of sag. Uh yeah, 29:36 29 minutes, 36 seconds we have to see going forward based on the cost and again it is correlate even 29:43 29 minutes, 43 seconds to the even onto the uh cement price. So probably this year we were expecting it is going to be better than the last financial year. 29:52 29 minutes, 52 seconds Understood. Great sir. Thank you. I'll come back in. Thank you sir. 30:03 30 minutes, 3 seconds Thank you. We will take the next question from Mr. Satyam Queserwani. 30:08 30 minutes, 8 seconds Satyam, you can go ahead with your question. Uh, hi. Hi. Thanks for the opportunity. 30:13 30 minutes, 13 seconds I'm audible. Uh, yes, you are audible. 30:17 30 minutes, 17 seconds Okay, great. Uh, so my first question would be about overall market sir. uh overall in in south particularly uh if 30:25 30 minutes, 25 seconds you could just uh tell us about the pricing trend uh you know across uh across south region and overall for all 30:32 30 minutes, 32 seconds markets as well it'll be great please yeah we we took the price increase uh 30:39 30 minutes, 39 seconds during uh second week of April yeah across all the regions of one 30:47 30 minutes, 47 seconds across all the regions u yeah we are able to achieve close to 25 to 30 rupees uh per bag. 30:55 30 minutes, 55 seconds most of the regions. Uh yeah let me let me address that uh see the the price 31:02 31 minutes, 2 seconds that we have seen right now in Hyderabad uh from a retail price perspective we are close to 295 rupees sir which which 31:11 31 minutes, 11 seconds was uh at 290 and the wholesale price was soing at uh 31:19 31 minutes, 19 seconds 225 which actually got increased to 268 uh uh by by by exit of April. to even 31:29 31 minutes, 29 seconds the current price. Yeah, as I mentioned earlier, we we did get 25 rupee kind of 31:35 31 minutes, 35 seconds uh per bag price hike. Uh if you look at Weisac, yeah, the current uh retail price is at 295 with the wholesale price 31:44 31 minutes, 44 seconds reading around 265. Again, it's product specific for each market there is a specific product. For Hyderabad, it is 31:53 31 minutes, 53 seconds PPC. Yeah. Now you look at uh Sholapur the current price is at 288. 31:59 31 minutes, 59 seconds Uh Barapur the price is at 28 295. Boneswar is at 300. Indoor is at 278. 32:08 32 minutes, 8 seconds Uh Bangalore is at 310. Uh Chennai would be close to again this is our for our 32:17 32 minutes, 17 seconds product we are typically in a B segment B category segment. 32:22 32 minutes, 22 seconds It's hinging anywhere between 290 to 295. Uh Mr. Satya, understood. Understood. Thanks for that 32:28 32 minutes, 28 seconds sir. Uh sir, uh is the price sort of is it sustaining like is the demand? 32:35 32 minutes, 35 seconds As I mentioned, sir, uh the price picked up primarily in an on trade segment uh in the middle of April. Uh though we 32:44 32 minutes, 44 seconds tried to increase few at few places uh price more or less uh remained where it 32:51 32 minutes, 51 seconds was uh without any kind of price increase uh uh till till 15th of this 32:59 32 minutes, 59 seconds month or rather till uh 12th of this month. uh in some places of course we did see whatever we tried to increase 33:07 33 minutes, 7 seconds especially in the eastern India and to certain extent to in indoor markets uh yeah the five rupees increase that we 33:14 33 minutes, 14 seconds attempted we could not sustain so prices more or less have been very very flat uh with slightly negative bias in uh uh in 33:23 33 minutes, 23 seconds the central as well as in the eastern markets for us whereas in south uh we we we could sustain the same price uh what 33:31 33 minutes, 31 seconds we have increased middle of April even uh so far it it is holding up. Though I have to admit that uh the additional 33:40 33 minutes, 40 seconds price increase we could not get but more or less uh the prices uh remained where they are. 33:48 33 minutes, 48 seconds Understood. Understood. So my next question would be about the incentives. 33:51 33 minutes, 51 seconds How much incentive did we book in this quarter and for the whole year and also what are we expecting for the for 20 uh FI27 if that could be given? 34:03 34 minutes, 3 seconds our our our incentives primarily receivables in uh uh Telangana remain where they are. So there there has not 34:11 34 minutes, 11 seconds been much but we we expect some amount of incentives to be picked up where we have accumulation of around 100 coursees 34:18 34 minutes, 18 seconds for last 10 years. Yeah, we have seen a small trickle down in Andra. Uh we are not penciling in either of them. Uh the only incentives which we have been 34:26 34 minutes, 26 seconds receiving consistently is from our Madhya Pradesh asset. Uh yeah we expect anywhere between 25 to 30 crores for the coming year. 34:35 34 minutes, 35 seconds Mr. Saty for the Madhya Pradesh. 34:39 34 minutes, 39 seconds Understood. So my last question would be the capital subsidy as well as some amount of electricity incentives that we have. 34:49 34 minutes, 49 seconds Okay. Okay. Got it. Got it. So my last question would be about uh your uh sale makes across the state like uh what percentage did you sell across? 35:00 35 minutes Yeah, I think we we we made it part of the presentation. If if you look at our investor presentation, it's on slide six. Uh Mr. Satyam, I think it is very 35:08 35 minutes, 8 seconds elaborate rather than giving you a number. Uh you need any further refinement into that, we will be more than happy to finish. uh uh but but we 35:17 35 minutes, 17 seconds we we did indicate those in our uh investor presentation uh investor presentation. 35:24 35 minutes, 24 seconds Sure. I'll have a look. I'll have a look. Thanks. 35:28 35 minutes, 28 seconds Thank you. We will take the next question from Mr. Kamsh Badmar. 35:35 35 minutes, 35 seconds Kamsh you can go ahead with the question. 35:38 35 minutes, 38 seconds Yeah, thanks for the opportunity sir. Uh sir, one question with regard to your MP uh plant. So just wanted to know like uh 35:47 35 minutes, 47 seconds how much incentives are available like say for will it continue till FI30 or how much we can expect there? 35:55 35 minutes, 55 seconds Yeah Mr. 35:57 35 minutes, 57 seconds uh the incentives there are to tune off around 171 crores so far we are also 36:04 36 minutes, 4 seconds eligible for the expansion project uh additionally but this 170 crores is spread over 7 years this is primarily on 36:11 36 minutes, 11 seconds the capital subsidies sir so is the case with the electricity incentive so these are valid for seven years out of that we we are close to completing uh uh three 36:21 36 minutes, 21 seconds and a three close to three years now uh so they are available for next four years. Uh Mr. Kamish uh I I'm talking 36:29 36 minutes, 29 seconds only of the the first asset that we have built uh for for the expansion project. 36:36 36 minutes, 36 seconds Uh yeah, they would be available for next seven years uh uh to to be paid in seven equal installments for the overall 36:43 36 minutes, 43 seconds kind of incentive. Yeah, we would we would revert to you once the uh the capeex is firmed up. Uh there there is a 36:50 36 minutes, 50 seconds government sanction which we need to get. So for for the expanded project once we get to know of the numbers we will be happy for. Uh the numbers that I 36:59 36 minutes, 59 seconds have indicated is for the first investments that we have done. 37:04 37 minutes, 4 seconds So in total for the first phase we are uh expecting 170 cr and out of that we 37:10 37 minutes, 10 seconds have already got roughly around 100 around 70 odd cr like say last time close to that number sir close to 65 odd 37:19 37 minutes, 19 seconds crores we we did receive uh yeah we have another 110 crores to be spread over four years time added to that we would also have an electricity incentive which 37:28 37 minutes, 28 seconds again is a performancedriven uh so we are not able to quantify that at this point of time but that should anywhere between 7 and a half to 10 37:36 37 minutes, 36 seconds crores additionally over what I have mentioned uh Mr. accomplish and lastly sir if you see standalone performance our margins look to be very 37:45 37 minutes, 45 seconds uh subdued like say below 150 mark so uh where do we see these margins I I do 37:52 37 minutes, 52 seconds understand that uh prices are not under our control and we can work only on our cost part but like 38:00 38 minutes year after year we are seeing this performance and on top of that we have seen a benefit of consolidation in the industry as well But overall the 38:09 38 minutes, 9 seconds performance looks to be very subdued and what are our aspirations like say over next one to two years where do we see 38:16 38 minutes, 16 seconds our these margins going Mr. Kesh I'm sure you would appreciate uh I I think the andra has been a 38:24 38 minutes, 24 seconds significant drag on us in terms of andra cement fortunately the capeex and everything is working out extremely well so you'd have seen even in the last 38:33 38 minutes, 33 seconds quarter uh yeah we are very close to the break even I think with with the turnaround in Andra uh I I think from a 38:40 38 minutes, 40 seconds cost perspective and everything we are we are back to where we were once uh uh but but for the pricing on the cost 38:47 38 minutes, 47 seconds front and all we are we are back to to a a very good kind of a position. Uh with Andra new preheater coming up uh the 38:56 38 minutes, 56 seconds efficiency of the new preheater is extremely good and at the same time our investments which we have done over last 39:02 39 minutes, 2 seconds three years uh we we are extremely confident on our margins going forward 39:10 39 minutes, 10 seconds uh irrespective of the prices I think we should we should start delivering the numbers from here on Mr. foundation. 39:22 39 minutes, 22 seconds Great sir. Thanks. Thanks. Thanks a lot and best of luck. Thank you. 39:27 39 minutes, 27 seconds Thank you. Uh we will take the next question from chat box. Uh Mr. Shikhar Nepal wants to understand uh about the 39:35 39 minutes, 35 seconds statewise price hike and demand outlook for the state. 39:41 39 minutes, 41 seconds Yeah, as I indicated for most of the southern states, we we we we did get 25 rupees per bag on an average uh kind of a hike uh starting from middle of April. 39:53 39 minutes, 53 seconds Uh as indicated earlier, we we are able to sustain most of it. uh the growth numbers uh from from from what we did 40:02 40 minutes, 2 seconds narrate even during the uh previous call. Yeah, we do expect a strong uh demand growth in both Telugu states of 40:10 40 minutes, 10 seconds AP and Telangana. Yeah, we we do expect uh anywhere between 5 to 10% growth in Tamil Nadu. Karnataka we expect a 5% 40:20 40 minutes, 20 seconds growth in uh for the coming year. 40:24 40 minutes, 24 seconds Going back to Odisa, yeah, our uh yeah, there has been a lag but fortunately the 40:32 40 minutes, 32 seconds government spend has started picking up but internally we did pencil a 5% growth for the demand for Odisa for Madhya 40:39 40 minutes, 39 seconds Pradesh we we are expecting anywhere between 5 to 7 and a half% growth for Madhya Pradesh markets. 40:48 40 minutes, 48 seconds Thank you. And another question is from Mr. Mahin Bhadwaj. Uh so he wants to understand the expected uh cost increase 40:56 40 minutes, 56 seconds like uh 101 150 per ton is attributable to petco cost. So what about the other uh high cost like for example bags etc. 41:06 41 minutes, 6 seconds Yeah, I think backs there has been a taper down. Uh from from what we have seen it we we we were paying extra 5 41:13 41 minutes, 13 seconds rupees uh to an average cost that we used to pay before. Uh we we have seen almost a 2 rupee kind of a drop per bag. 41:21 41 minutes, 21 seconds Uh it has come down. Uh but but you know the the real impacts of war I I I think 41:28 41 minutes, 28 seconds we just started seeing them. So given this scenario yeah what we have pencileled in is almost additional another 100 rupees on account of uh all 41:37 41 minutes, 37 seconds the miscellaneous things that includes the bags and uh at the same time availability and also the pricing of explosives. 41:45 41 minutes, 45 seconds Also there has been a uh 23 rupees 75 pis per liter hike in terms of uh 41:53 41 minutes, 53 seconds commercial diesel uh which has its impact on the mining. So we we we have penciled in almost additional 100 uh 42:00 42 minutes rupees. So we we are factoring around 225 to 250 rupees but but t done kind of 42:08 42 minutes, 8 seconds a price increase on account of both fuel and as well as miscellaneous expenditure. I'm talking this in general. Yeah, it could it could it could vary on the uh inventory and all. 42:18 42 minutes, 18 seconds Yeah, that's what uh is what we have penciled over a period of time. Uh again this this is kind of a moving number. Uh 42:27 42 minutes, 27 seconds as it stands that's what we have seen if everything had to be passed on at this point of time uh it is impacting almost 42:37 42 minutes, 37 seconds 250 rupees per ton on account of fuel and various other cost items uh that have gone up during this time. 42:47 42 minutes, 47 seconds You we will take the next question from Mr. Indra Priit Man Indra Pit you can go ahead with your question. 42:56 42 minutes, 56 seconds Sir just wanted to know actually I have joined late sir any update on the land disposable the timelines on the land 43:03 43 minutes, 3 seconds bank and what when can we expect the proceedings? 43:07 43 minutes, 7 seconds Yeah see you I'm assuming that you are talking of the wisak land of cements. Yes. Yes sir. Yeah we we we we got all the approvals. 43:15 43 minutes, 15 seconds So the government indicated that they are preparing a final go uh not for us alone but in general for monetizing all 43:22 43 minutes, 22 seconds the industrial lands which uh uh the grant has come from the government historically. So like in Telangana where 43:31 43 minutes, 31 seconds the government promulgated uh government order where you know there is a small fee 43:39 43 minutes, 39 seconds which we need to pay to the government and it automatically gets converted. So, so even Andra government is contemplating similar kind of an actu 43:47 43 minutes, 47 seconds we we are just awaiting for it but uh some of the critical uh approvals have already we have received primarily from 43:55 43 minutes, 55 seconds GVMC that is the greater municipal wisak municipality and uh the urban development authority. We we did get the 44:02 44 minutes, 2 seconds approvals but but uh yeah the JO from the government is awaited. uh we we we 44:09 44 minutes, 9 seconds were to receive the JVO but uh specific to us but government wanted to come up with a generalized 44:16 44 minutes, 16 seconds kind of a JVO to to get most of these conversions simplified they wanted to come up with the JO so we we are 44:23 44 minutes, 23 seconds expecting anytime it might come uh so at this point of time it is still 44:30 44 minutes, 30 seconds fluid but we are more than hopeful that over next six months we should we should have got the JO in place for us to monetize Nice Mr. Ind. 44:47 44 minutes, 47 seconds Thank you. We will take the next question from Mr. Rajat Saita. 44:53 44 minutes, 53 seconds Rajat, you can go ahead with the question. Yeah. 44:55 44 minutes, 55 seconds Yeah. Thanks again. Uh sir last year at the starting of the year we had guided for uh net debt position of around 1,300 45:03 45 minutes, 3 seconds cr while we ended the year at almost 1,550 plus. So what really uh happened 45:10 45 minutes, 10 seconds that you know we had to take more debt and what gives us confidence that the guy that the number that we have put up for the next year debt we will be able to achieve it. 45:20 45 minutes, 20 seconds Yeah. What what you have to remember Mr. 45:22 45 minutes, 22 seconds Rajatis this debt includes uh uh an unsecured debt from the promoter group for fulfilling the Andra project. 45:32 45 minutes, 32 seconds So we we were not wanting to draw the entire amount if you track us we we were to do the 45:40 45 minutes, 40 seconds rights issue for Andra. Yeah. Which we could not uh do the rights issue but we went for an OFS. Uh so that actually has 45:49 45 minutes, 49 seconds elevated uh we we always have indicated that the debt levels would not be higher than what it is. Uh uh so that we we 45:59 45 minutes, 59 seconds would not cross the current levels and at the same time uh yeah we we did accelerate some of the solar investments and everything uh which where the 46:07 46 minutes, 7 seconds payback period was fairly short. So that is actually adding up to our AITA or rather cost level. So we we we thought 46:16 46 minutes, 16 seconds that is more prudent than trying to keep uh debt at the static level. But uh having said that uh yeah from here on we 46:25 46 minutes, 25 seconds expect debt to be paid out fairly quickly with the operating income. Mr. Rajat. 46:32 46 minutes, 32 seconds So thanks sir. And uh in terms of our AIDA per turn there was a time when we used to do 6 700 uh rupees per turn 46:42 46 minutes, 42 seconds basis. Do you think uh we are in a position to go back to those levels in the next 1 two years? 46:47 46 minutes, 47 seconds I I think in the current year itself we should be very close to 600 because uh the significant improvement for us has 46:54 46 minutes, 54 seconds come from the cost itself Mr. Rajett. So the last year ended at almost 450 to 480 and we are more than hopeful that with 47:03 47 minutes, 3 seconds the Andra plant uh becoming as efficient with both the grinding plants becoming operationalized uh for us adding this 47:12 47 minutes, 12 seconds 150 is not an external issue it is more an internal issue and we believe that the current pricing may not deteriorate uh that that's the caveat that I need to 47:20 47 minutes, 20 seconds put even if it doesn't go up with the current prices remaining flat I think we should be close to that number Mr. 47:27 47 minutes, 27 seconds It's primarily on account of the savings that we are getting from the investments that we have made so far. 47:34 47 minutes, 34 seconds Okay. And these uh internal investments that will contribute uh the timeline wise uh by when they 47:41 47 minutes, 41 seconds will start kicking in from sir I think Andra is already operationalized uh especially on the clinker line the waste heat recovery as 47:49 47 minutes, 49 seconds well as the grinding capacity at uh Jiraabath should should be completed before end of this quarter itself uh 47:56 47 minutes, 56 seconds though 3/4 of the WHS is already operational uh as we speak uh but before end of the quarter 48:04 48 minutes, 4 seconds We are more than hopeful that these uh savings should start kicking in at the levels that I have indicated. Andra's 48:12 48 minutes, 12 seconds grinding capacity which again should also save on the energy side should be completed before end of uh September itself Mr. Rajat. So that also should 48:22 48 minutes, 22 seconds start contributing for half of the year uh half half year for the current financial year. Got it. Got it. Thank you. Thank you. 48:31 48 minutes, 31 seconds Thank you. Thank you. We will take the next question from Mr. Rahul Aarwal. 48:38 48 minutes, 38 seconds Thank you for the opportunity. Uh this is a continuation to the last participant's question. Uh how much capeex is pending for us to be incurred 48:46 48 minutes, 46 seconds on both the Jiraabad expansion as well as on the Andra cement side and how much will be incurred in FI27 and by when do 48:53 48 minutes, 53 seconds you expect both of these units to start commissioning? 48:58 48 minutes, 58 seconds Yeah, I would appreciate if you could look at slide number 16 on the presentations that we have uploaded. Uh 49:05 49 minutes, 5 seconds Mr. Rahul Araan. Yeah, just for the convenience. Uh uh the the Andra expansion uh the 49:14 49 minutes, 14 seconds pending capeex is close to 140 crores which we are likely to complete in the current financial year. Uh good part is at 17 cr and jerabad expansion we have 49:23 49 minutes, 23 seconds 33 crores pending. uh as mentioned uh the Jiraabath expansion should be completed before end of this quarter 49:31 49 minutes, 31 seconds itself. So is the case with the street recovery at Guripadu. 49:36 49 minutes, 36 seconds And Andra's uh expansion should be completed before September sir this September. 49:44 49 minutes, 44 seconds Got it. Got it. Got it. And on the Weisag land, you mentioned that a lot of clearances are in place and you're still awaiting uh the final notifications from 49:52 49 minutes, 52 seconds the government. But uh as of today, what is your assessment of the market value of that land? 49:58 49 minutes, 58 seconds Again, I'm going with the recar rate, sir. Though there has been some increase, but I'm going with the old rectner rate. It is at 4 crores an acre. 50:04 50 minutes, 4 seconds Uh net of expenditure, we we are likely to receive around three and a half crores per acre and we have around 100 acres. So we were expecting 350 crores 50:13 50 minutes, 13 seconds spread over two years time. when when the JO we get gets received in the first year we expect it to receive around 150 50:20 50 minutes, 20 seconds crores and the 200 course over the next uh uh 12 months time post that uh Mr. 50:29 50 minutes, 29 seconds Got it. And one last one, sir. On top of the expansion cape that you highlighted earlier, what are is there any recurring maintenance capex that we need to do and 50:38 50 minutes, 38 seconds what is the quantum of that that you expect on an ongoing basis? 50:43 50 minutes, 43 seconds Again, we we did uh uh present part of our presentation sir just for the convenience at each location uh the the 50:52 50 minutes, 52 seconds general maintenance capex across all the units should be around 50 crores, sir. 50:59 50 minutes, 59 seconds Got it. Got it. Thank you so much, sir. Thank you. 51:04 51 minutes, 4 seconds Thank you. We will take the next question from Mr. Pat, sir. 51:10 51 minutes, 10 seconds Hi, sir. So, thank you for the opportunity uh and congratulations on good set of numbers. Sir, I just had one question uh which is related to balance 51:18 51 minutes, 18 seconds sheet and uh more on working capital. uh your working capital days has increased significantly uh you know from March to 51:26 51 minutes, 26 seconds March 25 to 26 and this is largely driven by you know decline in payable days. Can you throw some light uh on like what happened during the year and also how do you see this going forward? 51:39 51 minutes, 39 seconds Yeah, I think when market situation is very very difficult sir the credit days and everything gets extended. uh at the 51:47 51 minutes, 47 seconds at the same time uh the as indicated the fuel prices were at elevated uh levels. 51:52 51 minutes, 52 seconds So when you stock up you end up using uh uh higher working capital. 51:58 51 minutes, 58 seconds Uh I I I think by end of the year we more or less have reached true stability and I think going forward yeah we would 52:05 52 minutes, 5 seconds like to minimize the utilization of the working capital but this happened because the business itself has expanded. Sir, if you if you look at the working capital limits were very 52:14 52 minutes, 14 seconds similar. Uh even for a 5 million sale, but the sale got extended. So so so was for some of the clients the the credit 52:23 52 minutes, 23 seconds days also got extended. So that definitely puts some amount of pressure on the overall kind of working capital utilization. But we expect a moderation 52:31 52 minutes, 31 seconds going forward. uh but but please keep in mind uh that we we are going to add another million ton sale into the overall kind of uh numbers what we have 52:40 52 minutes, 40 seconds done previously. So there is some amount of reassessment uh with especially the fuel with the 52:47 52 minutes, 47 seconds increased price uh for same volumes if we have to do still yeah we need to put in more money so I think uh uh that 52:55 52 minutes, 55 seconds that's the scenario that we are in but but with slightly better uh realizations and better margins uh we we do expect 53:04 53 minutes, 4 seconds moderation in the overall kind of utilization of the working capital uh Mr. back. 53:09 53 minutes, 9 seconds So largely payable billables is linked to basically or raw middle stocking up fuel stock up. 53:15 53 minutes, 15 seconds It's it's on either side. One is the credit days for the finished products and at the same time for for the for the raw material for the input. 53:25 53 minutes, 25 seconds In addition to that in Q4 in the month of March, we secured close to 76,000 tons of US NAP coal which is close to 80 53:34 53 minutes, 34 seconds cr worth of value. So that we took based on the uh by sharing the foreign letter of credit. So that is going to have 180 53:42 53 minutes, 42 seconds days uh credit period. So that is one of the reason to reflect the higher numbers. 53:48 53 minutes, 48 seconds Okay. Perfect. Got it sir. Thank you so much for answering my question. Thank you. You we will take next question from Mr. 53:55 53 minutes, 55 seconds Rajesh Rabi. 54:00 54 minutes Rajes you can go ahead with your Yeah. Hi sir. Yeah. Yeah. Thank you. Uh so my question pertains to uh your uh 54:07 54 minutes, 7 seconds discussion on saying that numbers would largely remain flat. So just wanted to understand first in the working capital 54:14 54 minutes, 14 seconds what is the incentive outstanding at the end of March 26 54:23 54 minutes, 23 seconds can you can you help me with that Raj it's around 23 cr we have to receive incentives 54:30 54 minutes, 30 seconds so most of the uh you know around 67 68 cr which is crude in P&L large chunk of that got received this year 54:39 54 minutes, 39 seconds yes even even this 23 core we were expecting in second quarter. Okay. 54:46 54 minutes, 46 seconds Yeah. Yeah. Suppose Yeah. Since now the numbers are in place. So now we have to uh reach 54:53 54 minutes, 53 seconds government to submit an application uh to get the money. So that we are going to initiate probably in the next week. 54:59 54 minutes, 59 seconds So we were expecting somewhere in mid of July we can get the incentives. 55:04 55 minutes, 4 seconds Understood. And sir uh when we talking uh this year we are talking of total capex of close to 300 to 320 cr 55:12 55 minutes, 12 seconds including maintenance capex and interest outgo if I'm not wrong would be close to 200 cr so somewhere north of 500 cr of 55:20 55 minutes, 20 seconds cash flow would be required and we assume all of that comes from iita we are talking about at 7 million tons you know 55:29 55 minutes, 29 seconds yeah Mr. Rajes I think yeah sorry for baring I think you should understand that capeex need not come from IITA 55:37 55 minutes, 37 seconds alone sir yeah we we have structured even some of the energy efficient projects through lease finance 55:44 55 minutes, 44 seconds but but uh yeah except for the spending three and the maintenance capex the other projects uh are subject to the 55:52 55 minutes, 52 seconds market conditions and at the same time uh based on the payback we would like to take a call with uh lease finance options that exist for us Mr. Rangish. 56:04 56 minutes, 4 seconds Okay. Okay. So from a cash flow perspective for FI27 capex outgo you're looking at I understand we have few lease out projects. 56:14 56 minutes, 14 seconds Yeah it is close to 14 140 to 190 crores is the total capeex that is pending for three ongoing projects Mr. Rajes but 56:22 56 minutes, 22 seconds there is unknown credit and our our draw plan is whatever we would have repaid that is what is required for us to implement the project 56:30 56 minutes, 30 seconds so so that is precisely is the plan and that's what we did indicate even in our presentation Mr. 56:36 56 minutes, 36 seconds I I was looking to your presentation where you mentioned two uh 290 odd cr is what we looking at out of 275 cr. 56:45 56 minutes, 45 seconds Yeah. There are three projects which are subject to kind the two of them are solar both at matelli as well as at 56:53 56 minutes, 53 seconds jirad uh and at the same time gurupadu in terms of optimization. Sir those are 57:01 57 minutes, 1 second those are options which we would like to exercise as we would progress. 57:05 57 minutes, 5 seconds uh but but our interest is to pay down the debt. Uh so we are looking at other alternatives to implement the project 57:12 57 minutes, 12 seconds primarily on something like an equipment finance kind of an option or lease finance option is what we are pursuing Mr. 57:22 57 minutes, 22 seconds So once you remove that we should be sub 240 odd crores if that includes the maintenance capex uh 57:30 57 minutes, 30 seconds okay so that would give you some any uh land sale you are factoring in in your assumptions when you expecting members 57:38 57 minutes, 38 seconds to be yeah we we we did pencil in close to 150 crores for the current financial year uh net of taxes 57:46 57 minutes, 46 seconds yeah that is net of expenditure yeah net of all the other expenditure Understood. 57:55 57 minutes, 55 seconds So that means you're factoring in close to 500 odd rupees you know at the beta margin level. And sir on cost side if I 58:03 58 minutes, 3 seconds look at your yeah please tell me sir. 58:07 58 minutes, 7 seconds Yeah from a budget perspective we are pencled in 580 crores sir which is 100 rupees more than what we have achieved last year. 58:14 58 minutes, 14 seconds uh as I mentioned before uh that 100 rupees is actually coming from the overall savings that we are likely to receive in the cost optimization alone. 58:24 58 minutes, 24 seconds Mr. Rajes uh what we have also penciled in is whatever would be the incremental costs that are likely to happen from 58:31 58 minutes, 31 seconds here on we are assuming that it would be a pass through where market should absorb them. Mr. 58:36 58 minutes, 36 seconds Understood. Correct. Correct. And if I just want to understand the opex break up between your standalone and Andra 58:43 58 minutes, 43 seconds cement, uh they are at quite different cost level. So if I look at your uh operating cost for your standalone 58:52 58 minutes, 52 seconds that averages out close to 3,800 rupees per and the Rajes, I'm sure you'll you'll appreciate that is one of the reason why even in a difficult time we 59:00 59 minutes went with an investment because whatever we invested in a has a very strong payback. 59:06 59 minutes, 6 seconds Now with the investment more or less coming to conclusion, yeah the gap between Andra and standalone should be very very minimal sir because the gap 59:14 59 minutes, 14 seconds again very specific to Matel to Andra the gap would be only the wasted recovery cost related issue or else more 59:23 59 minutes, 23 seconds or less there is a complete alignment on cost that that's what gives us confidence that from here on our margins 59:30 59 minutes, 30 seconds are going to be I would not say very high but healthier like how it used to be before uh that that is one of the 59:38 59 minutes, 38 seconds reason why we aggressively pursued the capeex uh even in a difficult time. 59:44 59 minutes, 44 seconds So I see a little bit difference between both the entities on costing sides 383900 versus 484900 59:53 59 minutes, 53 seconds so am I missing something close to 4900 or on a full year basis? 1:00:03 1 hour, 3 seconds Yeah Mr. Rajes again it depends on what are all the line items that you're looking at because the logistics cost could be very different because the 1:00:10 1 hour, 10 seconds market spread is very different uh but but I think we'll be more than happy to run through uh on and offline Mr. 1:00:18 1 hour, 18 seconds Rajesh. Sure. Sure sure. 1:00:21 1 hour, 21 seconds And lastly on the land sale, I understand the GR you're expecting from the Telangana government but in the interim have you lined up or are you are 1:00:30 1 hour, 30 seconds in some advanced stage of discussion with buyers? Uh so once the GR is out you may be able to dispose of and I 1:00:38 1 hour, 38 seconds think yeah there has been an engagement but as you know everybody needs clarity right? 1:00:45 1 hour, 45 seconds So, so we obviously yes have appointed a consultant who has helped us to reach out to few of them. 1:00:53 1 hour, 53 seconds Yeah, we are in discussion but nothing is concrete till you know the timeline and everything gets evolved. So that that I think uh and it should not be a big challenge selling a land in Weisac. 1:01:03 1 hour, 1 minute, 3 seconds Uh though that size of land for Weisak is very big but with the activity that is happening in Weisac now uh we we we 1:01:11 1 hour, 1 minute, 11 seconds are reasonably sure and confident of uh executing the transaction fairly quickly because our idea also is not to sell it 1:01:19 1 hour, 1 minute, 19 seconds as a single block. The idea is to make it into viable blocks so that you know we don't have to break it down into smaller pieces but some manageable 1:01:28 1 hour, 1 minute, 28 seconds pieces. I think sales should should not take longer than two years Mr. Rajish. 1:01:32 1 hour, 1 minute, 32 seconds Uh so that is the reason why we we penciled in the entire 350 crores sp over 18 to 24 months uh with bulk of it 1:01:42 1 hour, 1 minute, 42 seconds you know around 150 to be received in the first year and the rest in next 6 to 8 months the balance to be received. Uh 1:01:49 1 hour, 1 minute, 49 seconds Mr. Raj yeah that's all. Thank you sir and all the best. Thank you. 1:01:57 1 hour, 1 minute, 57 seconds We will take the last question from Mr. 1:01:58 1 hour, 1 minute, 58 seconds Rajat Satya. Rajat you can go ahead with your question. 1:02:10 1 hour, 2 minutes, 10 seconds You can unmute your line and go ahead with your question. 1:02:15 1 hour, 2 minutes, 15 seconds Uh since there are no response u and as there are no further questions we will request management to give the closing commentary. Over to you Shikhan sir. 1:02:24 1 hour, 2 minutes, 24 seconds Yeah thank you again. Uh appreciate each one of you for joining on the call. I I hope you could get all your uh queries 1:02:32 1 hour, 2 minutes, 32 seconds answered. If not please feel free to connect us at Sag at Saga or Celia. We would be more than happy to address 1:02:39 1 hour, 2 minutes, 39 seconds them. Thank you again. Have a great day here. Thank you. 1:02:47 1 hour, 2 minutes, 47 seconds Thank you.