Shree Cement Limited — Q4 FY26

Shree Cement Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=_nyD8djPCBA Published: 7 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Shri Cement Limited 0:10 10 seconds hosted by IC Security Limited. This conference call may contain forward-looking statement about the company which are based on the beliefs, 0:17 17 seconds opinion and expectation of the company as on date of this call. These statement are not the guarantee of future performance and involve risk and 0:25 25 seconds uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an 0:33 33 seconds opportunity for you to ask question after the presentation conclude. Should you need assistance during the conference call, please signal an 0:40 40 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Namin 0:49 49 seconds Sadelv from ICA securities. Thank you and over to you sir. 0:54 54 seconds Thank you Danish. Uh good evening everyone on behalf of ICICI securities I welcome you all to the Q4 FI26 earnings 1:03 1 minute, 3 seconds call of Shri Cement Limited from the management we have with us Mr. Nira Jakuri managing director Mr. Ashok 1:12 1 minute, 12 seconds Bandari senior adviser and Mr. Jaju, company CFO. So without any further ado, 1:20 1 minute, 20 seconds I hand over the floor to the management for their opening comments. Over to you, sir. 1:26 1 minute, 26 seconds Thank you. Thank you, Naven. Uh good afternoon. Uh uh and good evening, ladies and gentlemen. I welcome you to 1:34 1 minute, 34 seconds the earning call of Shri Cement Limited for the quarter and year ending March 26. 1:40 1 minute, 40 seconds So 202526 was a good year. uh a good year for us 1:48 1 minute, 48 seconds despite the challenges posed during the Middle East [music] in March. In March 26th quarter 1:58 1 minute, 58 seconds [clears throat] on a sequential basis, domestic cement sales volume increased by about 25% 2:05 2 minutes, 5 seconds from 8.48 million tons to in December 25 to 10.56 million tons in March 25. While year-on-year growth was at uh 11%. 2:18 2 minutes, 18 seconds Total volume including clinker sales also jumped from by about 9.4% 2:25 2 minutes, 25 seconds from 9.84 million tons to 10.77 million tons while increasing 23.2% on quarteronquarter basis. 2:36 2 minutes, 36 seconds The region were at were at rupes 4725 as against 4652 in December 25 registering 2:44 2 minutes, 44 seconds an increase of 1.6% during the quarter. [clears throat] Operating a bita also increased by 34% 2:52 2 minutes, 52 seconds from rupees 9 uh 9002 crores to rupees 1212 cr. Abita per ton increased from 3:01 3 minutes, 1 second rupees 1032 to rupees 1125 in March 26. 3:07 3 minutes, 7 seconds Capacitization during the quarter stood at 66% as compared to 56% during December 2025. 3:16 3 minutes, 16 seconds Uh for the full year sales volume including Shri Cement East increased by 3:22 3 minutes, 22 seconds 2.2% from 35.6 million tons to 36.4 4 million tons. Our strategy which we took 3:31 3 minutes, 31 seconds for the full year uh helped in increasing our realization from rupees 54569 3:37 3 minutes, 37 seconds per ton last year to 4732 per ton in 202526 registering an increase of 3.6%. 3:46 3 minutes, 46 seconds Total operating aida increased by 11% from rupees 3814 cr to rupees 422 cr 3:55 3 minutes, 55 seconds excluding an onetime impact of rupees 80 cr. A bit of peran stood at rupees 1161 as against 1071 last year. 4:07 4 minutes, 7 seconds Our uh other consu uh other uh company union cement uh uh performance has also improved significantly during the year 4:15 4 minutes, 15 seconds 2526 on back of robust demand and continuously improving pricing scenario. 4:22 4 minutes, 22 seconds Sales volume were up by 18% from rupees 38.61 lakh tons to rupe to 45.65 lakh 4:30 4 minutes, 30 seconds tons. revenue was up by 39% during the year from uh um AED 606 624 million to 4:39 4 minutes, 39 seconds AD870 million since last 2 months due to the tension prevailing in the Middle East sales have slowed down but with 4:46 4 minutes, 46 seconds ceasefire situation is gradually coming back to normal. We believe once peace is restored demand would bounce back due to the reconstruction work. 4:57 4 minutes, 57 seconds The uh the unit event continued with his impressive quarterly performance. Uh total volume increased uh from on a 5:05 5 minutes, 5 seconds yearly basis from 10.72 lakh tons to 11.65 lakh tons recording a growth of 9% 5:12 5 minutes, 12 seconds on Q on quarteron-quarter basis. Sales revenue was up by 18% from 82 210 5:19 5 minutes, 19 seconds million to AD247 million on on a quarterly basis. 5:25 5 minutes, 25 seconds During the quarter u uh the company commissioned its integrated project of 3.65 million tons clinker capacity and 5:33 5 minutes, 33 seconds 3.5 million tons cement capacity at at Kodla Karnataka. With this the company's installed cement production capacity in 5:40 5 minutes, 40 seconds India including its wholly owned subsidiaries increased to 69.3 million tons strengthening its position as 5:48 5 minutes, 48 seconds India's third largest cement group. The work on setting up a cement mill or 2.5 5:55 5 minutes, 55 seconds million ton in Union cement UAE is progressing well and is scheduled to be commissioned by September 26. 6:03 6 minutes, 3 seconds To further expand our capacity, the company is setting up an integrated cement plant with clinkers capacity of 6:10 6 minutes, 10 seconds 0.95 million tons and cement capacity of.9 million tons in the state of Mallaya. 6:17 6 minutes, 17 seconds During the quarter, company also incorporated a wholly owned subsidiary with a purpose to establish and operate cement blending, storage and packing facilities in Maicius. 6:28 6 minutes, 28 seconds The company continues to actively and strategically pursue multiple expansion opportunities currently at various stages of pre-RO development to 6:37 6 minutes, 37 seconds accelerate capacity buildup and firmly positioned to achieve its growth milestones. 6:43 6 minutes, 43 seconds The company is rapidly expanding its RMC business uh with 26 operational plans at the end of 2526. During the month of 20 6:51 6 minutes, 51 seconds March 26, company has inaugurated 10 new RMC plants which are currently under commissioning. With the commissioning of 6:58 6 minutes, 58 seconds these plans, the total RMC plant count will increase six plants significantly sending the company's operational footprint at the start of financial year 7:07 7 minutes, 7 seconds 27. The company f continues to focus on sustainability initiatives. Key highlights of the same are as follows. 7:16 7 minutes, 16 seconds Uh the company's share of green electricity in total electricity consumption stood at 61% in Q426. 7:23 7 minutes, 23 seconds Uh up from 59% on Q425 including its whole subsidiaries in India to be one of the highest in the 7:32 7 minutes, 32 seconds Indian and most probably global cement industry. The company is consistently ramping up its green power generation 7:38 7 minutes, 38 seconds capacity which currently stands at 666.5 megawatt including in its uh wholly own 7:46 7 minutes, 46 seconds subsidiaries in India. All the company's manufacturing locations are zero liquid discharge treating recycling and reusing 7:53 7 minutes, 53 seconds 100% of waste water generated from its operations. These efforts aided by a good rainfall have enabled the company 8:00 8 minutes to maintain uh its water positivity index 2 more than eight times in 2526. 8:08 8 minutes, 8 seconds The company continues to get AAA rated uh uh by leading rating agencies of India. Last year we also got our 8:17 8 minutes, 17 seconds long-term foreign currency rating done by Care Edge Global. The rating given was BBB plus uh which is stable. 8:26 8 minutes, 26 seconds Considering the strong cash position, the board of directors of the company have recommended a final dividend of rupees uh 70 per share in addition to 8:35 8 minutes, 35 seconds the interim dividend of rupees 80 per share for the year 2526 declared in October 25. The Total dividend for the 8:42 8 minutes, 42 seconds year stands at rupees 150 per share representing a 36% increase over the over the 110 per share dividend paid in 2425. 8:53 8 minutes, 53 seconds The final dividend shall be subject to appro approval of members of the next in the next annual general meeting. India's 9:01 9 minutes, 1 second macroeconomic environment remains resilient supported by steady domestic demand and continued policy focus on 9:07 9 minutes, 7 seconds infrastructure growth. Union budget 2627 has reinforced this momentum through a sustained thrust on public capital 9:16 9 minutes, 16 seconds expenditure with investment in roads, railways and urban infrastructure expected to drive construction activity 9:22 9 minutes, 22 seconds and cement demand. Favorable employment conditions, stable inflation and supportive uh fiscal and GSC 9:29 9 minutes, 29 seconds rationalization measures further strengthen SE sectors fundamentals. 9:34 9 minutes, 34 seconds Against this backdrop, the cement industry remains well positioned to benefit from healthy demand growth in the medium term. However, the 9:42 9 minutes, 42 seconds geopolitical conflict in Middle East and forecast of moderate monsoon conditions may act as headwinds for the sector and may impact its growth momentum in the 9:51 9 minutes, 51 seconds short term. With this, I will now open the floor for the Q&A. I have with me Mr. Shandari, uh Mr. Subhash Jaju, Mr. KK J and Mr. 10:02 10 minutes, 2 seconds This is Kandwal to take you through the Q&A session. Thank you everybody and again warm welcome to Shmen's quarter 4 webcast. 10:13 10 minutes, 13 seconds Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 10:23 10 minutes, 23 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested with 10:28 10 minutes, 28 seconds handsets while asking a question. Before we start the nar before we start the Q&A, can I make a point please? 10:38 10 minutes, 38 seconds Yes, please. Please go ahead. 10:41 10 minutes, 41 seconds Uh good evening everybody. I would like you to recall two specific communication 10:49 10 minutes, 49 seconds we had made. One was at the end of June 25 quarter when Mr. Bangar had gone on 10:57 10 minutes, 57 seconds television saying that he expects the growth for SW cement in last financial 11:03 11 minutes, 3 seconds year between 2 to 3% we have delivered 2.2%. 11:09 11 minutes, 9 seconds The second attention I would like to draw is towards the last quarter's corn call where unfortunately Mr. Akuri could 11:16 11 minutes, 16 seconds not attend where I had said that we have moved to a more stable pricing platform 11:22 11 minutes, 22 seconds narrowing the gap between the topmost player and us by almost 20 rupees a bag 11:29 11 minutes, 29 seconds 15 to 20 rupees a bag and now we will be chasing volumes. 11:35 11 minutes, 35 seconds We have delivered on both these accounts which explains our ethos of delivery and not proclamation. 11:42 11 minutes, 42 seconds Now I open the floor for any questions you have. 11:46 11 minutes, 46 seconds Thank you so much sir. Reminder to all the participant that you may press star and one on the touch on telephone in order to ask a question. Ladies and 11:55 11 minutes, 55 seconds gentlemen, we'll wait for a moment while the question Q assembles. 12:03 12 minutes, 3 seconds Our first question comes from the line of Rajes Ravi from HDFC security. Please go ahead. 12:10 12 minutes, 10 seconds Hi sir. Good afternoon. Uh good evening and congrats on strong volume and decent uh healthy margin performance continued 12:18 12 minutes, 18 seconds margin performance. So my question pertains to what next in terms of and the last cash surplus which is further 12:25 12 minutes, 25 seconds increasing to a strong you know internal career generation. 12:36 12 minutes, 36 seconds Okay Rabi Badari here. 12:39 12 minutes, 39 seconds uh as far as UPIC is concerned as on date as Mr. 12:44 12 minutes, 44 seconds has already informed you. We are pursuing three distinct places. One is we'll be keeping we will be increasing our RNC plans during 2627. 12:57 12 minutes, 57 seconds Number two, we are earnestly working on railway sidings and number three the megallay expansion for which orders have already been placed. 13:07 13 minutes, 7 seconds Uh however uh the total KEX estimation for the year 26 27 13:14 13 minutes, 14 seconds is approximately uh 1,500 uh crores 13:20 13 minutes, 20 seconds and uh it should take its own course we expect to close by year with about 50 to 13:28 13 minutes, 28 seconds 55 RMC plants railway sidings and preliminary work on Mega Correct. 13:40 13 minutes, 40 seconds Okay. And any thought on your uh long-term next two three year expansion plans uh because this meal will be a smaller. 13:50 13 minutes, 50 seconds Look my dear friend we are on record saying that we should reach 80 million tons by 2029. 13:58 13 minutes, 58 seconds But then please understand it's a dynamic situation. 14:02 14 minutes, 2 seconds We have slowed down the tubics because the uh even in uh in the last phone call 14:09 14 minutes, 9 seconds of one of our competitors they have also uh slowed their aggression. So we will 14:17 14 minutes, 17 seconds ride the wave as it is. We intend to reach 80 million t by 29 but let us see. 14:26 14 minutes, 26 seconds Yeah, and that's a great and on the cash surplus uh you know uh you have increased the dividend for sure that is a good news but anything further because 14:35 14 minutes, 35 seconds we are now close to 9,000 cr or surplus cash no no uh we are 6,700 14:43 14 minutes, 43 seconds yeah 8,400 cr roughly you are correct we will keep on finding the ways to reward 14:50 14 minutes, 50 seconds the shareholders as well as if the situation improve we can expedite our capital capital expenditure program by 14:58 14 minutes, 58 seconds front ending it. You'll appreciate that in last 15 years or so. We have not borrowed. We have generally uh funded 15:07 15 minutes, 7 seconds all our clips to our internal approvers and we intend to do the same. 15:14 15 minutes, 14 seconds Understood. Second only uh if I look at control minus standalone just for clarification would that give the UA performance uh or this would also 15:23 15 minutes, 23 seconds include your subsidiaries performance control minus standalone ITA. 15:29 15 minutes, 29 seconds Now listen console has two components 15:35 15 minutes, 35 seconds one is Shri Cement East Limited and one is UCC at Union C which is Union Cement in UAE. 15:44 15 minutes, 44 seconds Now Cement East priv Limited will be the engine for further capacity expansion in 15:51 15 minutes, 51 seconds India and UCC as Mr. Korea has already pointed out is on track to add another 2 16:00 16 minutes 3 million ton of uh capacity by September 26 and uh I think it should keep uh us in good uh good step. 16:14 16 minutes, 14 seconds Great. So given that a growth engine will be the instant facility uh should we not be looking at the company at a control level rather than at standalone level? 16:24 16 minutes, 24 seconds Yeah indeed indeed indeed I get your point and uh we had been uh looking at 16:32 16 minutes, 32 seconds this possibility maybe next quarter onwards we will talk on console only. 16:37 16 minutes, 37 seconds Fantastic sir I'll come back in queue uh meanwhile uh you know you may share the operating number as you really said as you said. Thank you. 16:48 16 minutes, 48 seconds Thank you. 16:50 16 minutes, 50 seconds Our next question come from the line of Harmita from MK Global Financial Service. Please go ahead. Yeah, thank you for the opportunity. 16:58 16 minutes, 58 seconds Good evening to the management. So my first question pertains to the freight cost which uh PS2 we have increased by 17:06 17 minutes, 6 seconds 80 rupees per turn kind of a number from on both YI and sequential basis. Any reason for the same sir? 17:13 17 minutes, 13 seconds No. What has happened is that uh the uh lead distance has increased by about 12 kilometers over last quarter. 17:23 17 minutes, 23 seconds We are uh seized of the fact and we are working towards reducing this and maybe 17:30 17 minutes, 30 seconds bring it back to uh sub 440 kilome and uh you see basically it is 17:38 17 minutes, 38 seconds completely dependent on the demand supply scenario of each region. Okay. 17:43 17 minutes, 43 seconds So we are working on it and we should be able to bring it under our control. 17:48 17 minutes, 48 seconds Yeah. So my second question is that in the last uh uh call call we mentioned about the deprecation guidance of around 17:55 17 minutes, 55 seconds 1,600 to 1700 crores. So are we sticking to the same number for FI27 or is there some upward revision? 18:04 18 minutes, 4 seconds Yes. Yes we are we are we are sticking to that? 18:09 18 minutes, 9 seconds Sure. Thank you. These are the question I joined. 18:23 18 minutes, 23 seconds Next question comes from the line of Amit Mura from his capital. Please go ahead. 18:30 18 minutes, 30 seconds Uh yeah, hi good evening and thanks for the opportunity. So on uh on on the strong volume growth delivery in Q4 18:37 18 minutes, 37 seconds which is like 11% YI on cement level is what I see. So going ahead how do we see it like full year is obviously at two 18:45 18 minutes, 45 seconds but Q4 is pretty high. So going ahead like should we expect uh full year run rate to also now be at similar levels. 18:54 18 minutes, 54 seconds Basically the guidance we have been maintaining is 1% over the average industry growth rate. However, we expect 19:02 19 minutes, 2 seconds to reach about 40 million tons in this year. 26 27 we should be around 40 million tons. 19:12 19 minutes, 12 seconds But of course there are a lot of macroeconomic factors which are beyond our control but hopefully things will will do well. 19:23 19 minutes, 23 seconds Uh so just to clarify 40 is cement including clinker or only cement? Look my dear friend, clinker is not our choice. 19:34 19 minutes, 34 seconds We would not love to we would not like to sell clinker because we are losing the value ad opportunity. 19:41 19 minutes, 41 seconds Clinker is basically for various small reasons it's not a meaningful volume at all. 19:49 19 minutes, 49 seconds So please do not look at clinical volumes at all. Look at cement first. 19:55 19 minutes, 55 seconds What I am saying is maybe including 200,000 300,000 tons of clinka otherwise it should be sim only. 20:06 20 minutes, 6 seconds Sure. Sure. Understood. 20:08 20 minutes, 8 seconds And u generally on this west Asia crisis uh uh while we know that there is cost inflation that everyone is facing um 20:16 20 minutes, 16 seconds what are the mitigation measures and I believe now coal probably is cheaper than petco. So uh are you switching into coal more than petco or how how are the 20:25 20 minutes, 25 seconds what are the mitigation measures basically my dear friend it's a dynamic exercise for us we keep on work evaluating the 20:34 20 minutes, 34 seconds technocommercial viability of various kind of fuel mix and as on date yes you are right coal is becoming cheaper than 20:42 20 minutes, 42 seconds petco but then petco prices also cool down by more than $10 a ton so we are not concerned with what fuel you We are 20:51 20 minutes, 51 seconds using we are concerned with land cost per kilo calorie on air dry basis at our plant. 21:00 21 minutes So we are constantly on that indeed. 21:03 21 minutes, 3 seconds Yes. The fuel cost which is standing at about 1 rupees 60 pesa per kilo calorie as on day will move up maybe by 10% or 21:13 21 minutes, 13 seconds something for next this quarter. But then uh yes we are uh this is our business to keep on maintaining our 21:21 21 minutes, 21 seconds sustainability and profitability. You may also note that in spite of whatever results whoever has declared 21:29 21 minutes, 29 seconds our emida per ton of cement for the year 2526 is by far the highest in the peer group. 21:41 21 minutes, 41 seconds Right. Right. Congratulations on that. 21:43 21 minutes, 43 seconds And just lastly if I may uh could you provide region wise capacity utilizations for you? 21:49 21 minutes, 49 seconds Look my dear friend all these details I'm now asking Mr. Ju and Mr. KKN to fill you up with these details. I don't 21:57 21 minutes, 57 seconds have these details in front of me. They must be having it. Mr. Ju can you answer please? Yes. uh for the three for the 22:06 22 minutes, 6 seconds this water for north the utilization is 70%, for east it is 60%, for south it is 22:13 22 minutes, 13 seconds 61%, as company as a whole the utilization is 66%. 22:18 22 minutes, 18 seconds As compared to December the number was 56% for the company as a whole. So from 56 we have increased it to 66%. 22:29 22 minutes, 29 seconds Got it. Thanks a lot. I'll just come back in for more questions. Thank you. 22:36 22 minutes, 36 seconds The next question come from the line of Sedhart Motra from India radius. Please go ahead. 22:44 22 minutes, 44 seconds Thank you sir for the opportunity. As a wig of complex also sort of going slow on expansion. Uh do you think there's an 22:52 22 minutes, 52 seconds uh there's a chance that demand might be sort of impacted in in the oncoming year? What are your thoughts on demand specifically for the next 12 months? Let 23:01 23 minutes, 1 second us let us understand my friend before the new series of GDP came into play the 23:09 23 minutes, 9 seconds demand was 1.3x the GDP growth rate now once the GDP series got the constituents 23:16 23 minutes, 16 seconds of GDP got reconstituted the demand was come to around 1 to 1.1 times the degree growth rate now there 23:25 23 minutes, 25 seconds are the the bedrock of growth economic growth is steel and cement 23:32 23 minutes, 32 seconds If India needs to grow at 7%, steel and cement should grow at least in tandem with that if not more. We expect this 23:41 23 minutes, 41 seconds year 6 and a half% to be the uh the uh GDP growth rate. So we should do about 23:49 23 minutes, 49 seconds 7.1 7.2% cement uh demand growth rate and as I have said that should be the industry average. we should grow at 23:57 23 minutes, 57 seconds about 8 to 8 and a half% but you can never say so let us see how the GDP moves it's still 24:05 24 minutes, 5 seconds thanks for your thoughts on this one just another question so we've seen a fair amount of cost inflation as you 24:12 24 minutes, 12 seconds rightly pointed out so I just wanted to check what are the prices looking like uh this quarter have we been able to 24:21 24 minutes, 21 seconds mostly pass those on to the customers or do you think we need more 24:28 24 minutes, 28 seconds No, no, no, no. Listen, the fundamental principle of any business is 24:36 24 minutes, 36 seconds so let us be very clear that whatever we can pass on on a sustainable basis to 24:43 24 minutes, 43 seconds the market after absorbing our cost cost uh push we should be we should be all 24:51 24 minutes, 51 seconds right. We it may we will aim to increase the profitability. Let us see how it pans out. And in any case, if the war in 25:00 25 minutes Middle East gets over in next two months, the fuel prices are about to come down. 25:07 25 minutes, 7 seconds So it is it is a completely dynamic situation as on date. 25:13 25 minutes, 13 seconds Got it sir. Any chance you could provide us some color on the hikes which has been taken say for example in the past month or so? about 25 rupees a bag 25:23 25 minutes, 23 seconds and this is across regions or uh I don't have that kind of a breakup but 25:30 25 minutes, 30 seconds uh south is okay and this you can of course ask Mr. Kam or Mr. 25:36 25 minutes, 36 seconds to send you a mail separately of this. 25:40 25 minutes, 40 seconds Got it. Sir, uh just one last bookkeeping question. The sales figure that we've mentioned that includes 25:47 25 minutes, 47 seconds volume sales from our holy and subpidly as well. Subsidiary is only in India. 25:54 25 minutes, 54 seconds Yes. It does. It does. It does. Okay. Sales from the Indian operations. 26:02 26 minutes, 2 seconds Okay. Okay. So that 10.77 number is including sleep and increase. Right. Got it. Yes. Thank you sir. Thank you. 26:12 26 minutes, 12 seconds Thank you. 26:14 26 minutes, 14 seconds Next question come from the line of Pakin from HSBC bank. Please go ahead. 26:20 26 minutes, 20 seconds Yeah. Thank you very first bookkeeping question is that what is the net cash balance as of March 26? We are at about 26:28 26 minutes, 28 seconds 6,400 uh 6,700 cr investments and 1,700 cr cash cash in bank. Yes. 26:37 26 minutes, 37 seconds Got it. My second question is sir on capacity expansion. So 69 million tons capacity as of March 26 and overall 26:45 26 minutes, 45 seconds annual full year utilizations would be in early 60s. Now that 80 million t target by F29 given the utilization 26:53 26 minutes, 53 seconds levels that are there uh can we expect this to get pushed out by a couple of years I can't say it's too early to comment we 27:01 27 minutes, 1 second have slowed down I have given a guidance of 1500 cr only for KPX in this year let us see how the situation plays 27:09 27 minutes, 9 seconds got it and this value over volume and now we are focusing on volume uh so is 27:16 27 minutes, 16 seconds it fair to say that seen volumes and price and eid thea margins while you're chasing volume uh aid the eida person is 27:25 27 minutes, 25 seconds also something you will keep on focusing on and not let it go down much look my dear friend let us understand 27:33 27 minutes, 33 seconds Q2 and Q3 of of last financial year we suffered to pull up our prices we did 27:41 27 minutes, 41 seconds not aggressively sell and once the prices have established to a level where the delta between the top 27:49 27 minutes, 49 seconds players and us has reduced significantly. We don't intend to give up that advantage. 27:55 27 minutes, 55 seconds We would like to have now our fair and proper market share. That doesn't mean 28:02 28 minutes, 2 seconds we'll go into a price war and push volumes. 28:06 28 minutes, 6 seconds Profitability is the prime focus. Volume and price price always the market gives. 28:13 28 minutes, 13 seconds Volume is what we can we are capable to produce. This is the situation. Now how it will put pressure on AIDA? We have 28:21 28 minutes, 21 seconds never in our uh history given any guidance on AIDA per turn. We have never given you any guidance on sale price per 28:30 28 minutes, 30 seconds turn because it is not in control of any commodity manufacturer. Leave aside cement. It is it is a complete 28:37 28 minutes, 37 seconds completely macrodriven uh uh equation and we would not like to a guess. We can 28:44 28 minutes, 44 seconds say what our costs are. We can say what our aspirational volumes are and then it's like [clears throat] whatever will 28:52 28 minutes, 52 seconds happen to everybody will happen to us as well. 28:55 28 minutes, 55 seconds Got it. This is very uh clear. Thank you very much sir. Thank you. 29:03 29 minutes, 3 seconds Next question come from the line of British from Invest. Please go ahead. 29:08 29 minutes, 8 seconds Yeah. Hi sir. Thanks for the opportunity. Uh sir couple of questions. 29:11 29 minutes, 11 seconds First is uh if you could sir put some details on the northeast expansion specifically around limestone sourcing. 29:20 29 minutes, 20 seconds If we have won a mine what is the auction premium that they have what we have paid and any indicative time timelines on the expansion that we have uh indicated. 29:33 29 minutes, 33 seconds Uh you know we have gone by the laws of local 29:39 29 minutes, 39 seconds government in Meala. the state laws uh where the state government allocates the 29:46 29 minutes, 46 seconds mice. What we have got uh is three blocks uh uh each block we have not 29:55 29 minutes, 55 seconds completed all the three blocks but the first block where we have done uh our detailing we we believe this we talking 30:03 30 minutes, 3 seconds about roughly about 600 million tons of limestone. Yeah. 30:07 30 minutes, 7 seconds Uh right. 30:10 30 minutes, 10 seconds Um uh so the premium that we have paid uh and if you have any secured any incentives for this project along with the timelines 30:18 30 minutes, 18 seconds mines are not auctioned they are allocated. Yeah. Allocated. Okay. 30:25 30 minutes, 25 seconds Answer incentives. 30:28 30 minutes, 28 seconds No. Uh we have not yet received any confirmed paper document from the government of Malia on incentives to be 30:35 30 minutes, 35 seconds given. Yeah. uh we have approached them but we have not got any confirmation from that. So this project is uh to to 30:44 30 minutes, 44 seconds our estimate uh strongly viable even without incentives. 30:49 30 minutes, 49 seconds Uh and sir, how should we look at the capeex number? It looks very high uh 1,800 crores. Is it because of the region or is it something different? 30:57 30 minutes, 57 seconds No my dear friend here the 1800 crx apparently looks very high 31:05 31 minutes, 5 seconds but then as Mr. Kuri just pointed out we have three blocks we have prospected one block which gives 600 million ton 31:12 31 minutes, 12 seconds ultimately we intend to reach four 4 and a half million ton of capacity there but then once you start looking at uh 31:19 31 minutes, 19 seconds setting up that kind of a capacity we are starting with 95 million t of clinker and 1 million t of cement but we 31:27 31 minutes, 27 seconds have to create the necessary infrastructure acquire the land draw the power lines according to our ultimate 31:33 31 minutes, 33 seconds plan so lot of brownfield expansion uh expenditure gets front ended and that is why this trigger is looking so high. 31:44 31 minutes, 44 seconds Perfect sir this helps. Uh sir my second question is on the cost levers. Uh any variables that you would like to highlight. So next 2 three years wherein we can actually improvise on the cost. 31:54 31 minutes, 54 seconds So probably if you can touch upon any targets on WHRS. Uh second is third is clinker factor and fourth is railway. I 32:01 32 minutes, 1 second think when I met you last time you had indicated uh the railway volumes we look to uh double it over next few years. Uh 32:10 32 minutes, 10 seconds some numbers over here also would help sir. Thank you so much. 32:17 32 minutes, 17 seconds So so uh no I mean no company runs out of arguments by which it can better its performance. uh um she of course has 32:26 32 minutes, 26 seconds many strong arguments where we can further work on our efficiencies and improve the performance. Last time we 32:33 32 minutes, 33 seconds spoke about railway projects. We have railway, we have uh AFR, um we have uh 32:41 32 minutes, 41 seconds uh uh we have uh the hyable power. Um all these are part of how do you improve 32:48 32 minutes, 48 seconds your cost position. Um and that is what we are working on on railway. Uh we are working on at least three four different 32:55 32 minutes, 55 seconds uh in different different sites u uh on the railway. Um at this moment it will be not fair for us to uh disclose a 33:04 33 minutes, 4 seconds number uh but be rest assured that uh all those arguments we are using very strongly to further improve our cost position. 33:14 33 minutes, 14 seconds Uh sir sorry sorry thanks for that. Uh any any numbers that you would like to qualify for WHS and re given we are already doing so well. Uh do we have 33:22 33 minutes, 22 seconds further room to Wr all our kils uh for today and for in future will be linked with WHS? Yeah. Uh 33:31 33 minutes, 31 seconds even currently all the kills that we are commissioning are are having WHS species. Yeah. Uh uh for very 33:39 33 minutes, 39 seconds deliberately I'm not giving you a number today. Uh maybe by next call we should be in a better position uh to to give 33:46 33 minutes, 46 seconds you that. Uh solar energy we are strongly. I mean you have seen that we're already at 61%. Yeah. And uh u so 33:54 33 minutes, 54 seconds wherever there is an opportunity where they will continue to invest in uh renewable energy solar included to make 34:01 34 minutes, 1 second sure that we take advantage of this of this uh to to further better our performance. Yeah. 34:08 34 minutes, 8 seconds To supplement Mr. Akuri's statement, we are also uh quite aggressively exploring the the 34:17 34 minutes, 17 seconds possibility of a viable battery energy storage system BS. 34:24 34 minutes, 24 seconds We have started experimenting on a few things. If that succeeds then there will be a huge potential of setting up further capacity especially in solar. 34:35 34 minutes, 35 seconds Perfect. and said clinker factor what it is right now and do we have any aspiration on this numbers at two years out I'm giving the line to Mr. KJ he will he 34:44 34 minutes, 44 seconds will give you the numbers yeah current uh uh for the current quarter the cla effect is 64 4.8% 8% 34:52 34 minutes, 52 seconds against 63.9% December 25 and 64 in March 25. 34:59 34 minutes, 59 seconds Answer any target for this uh 2 years out. 35:03 35 minutes, 3 seconds Well, that is dependent on what kind of market we are addressing too. There are some markets we are still uh they are 35:11 35 minutes, 11 seconds still on uh uh different kind of lines. Let me explain you further. for each for each 35:19 35 minutes, 19 seconds product we will be fully optimizing our clinker factor. Now the future will depend on the product mix. Yeah. Uh and 35:28 35 minutes, 28 seconds product mix will depend on the kind of segment that we will continue to cater to. So if it is OPC then of course there 35:35 35 minutes, 35 seconds is a problem there is a uh results in a lower clinker factor. Um and and and if it's PPC it is a better clinker factor. 35:45 35 minutes, 45 seconds uh for now I think our kinker factor is in in line with the bestin-class in the industry to my mind uh except people who 35:53 35 minutes, 53 seconds use slack I will I will stick I'll stick my neck out and say that probably we have the 36:00 36 minutes best factor perfect sir this is very helpful thank you so much all the very best sir thank you 36:09 36 minutes, 9 seconds thank you ladies and gentlemen in order to ensure that the management will be able to address all the question from the participant. We request you to 36:18 36 minutes, 18 seconds kindly limit your question to two question per participant. If you have a follow-up question, please rejoin the queue. 36:27 36 minutes, 27 seconds Our next question come from the line of Rashi from City Group. Please go ahead. 36:32 36 minutes, 32 seconds Thank you. Just on the cost sir, what has been the uh cost movement in this quarter? Cost of production versus the last quarter Rashi. 36:40 36 minutes, 40 seconds Uh let let me address this uh up front. 36:43 36 minutes, 43 seconds Our as I said our uh per kilo calalorie landed cost last quarter was a 1.60 36:52 36 minutes, 52 seconds we expect to creep this uh creep up to 1.76 or 1.80 80 and we will J will share the 37:01 37 minutes, 1 second exact calculation with you. But then please understand that we are trying to keep on increasing our thermal 37:09 37 minutes, 9 seconds efficiency our per kilo calorie consumption in last uh 37:16 37 minutes, 16 seconds no not the cost the quantum of quality calorie calorie. 37:26 37 minutes, 26 seconds Yeah, we used 733 kilo calorie in this quarter which are 70 741 in previous 37:34 37 minutes, 34 seconds quarter. So we are continuously trying to increase this and if we in sorry decrease this and if 37:42 37 minutes, 42 seconds we de decrease this then the quantum throughput also falls isn't it? 37:49 37 minutes, 49 seconds Yeah, got it. So for for this, so besides the u power and fuel cost, you would have also witnessed some increase 37:56 37 minutes, 56 seconds in packaging cost. So on a cumulative basis, what kind of a cost increase are you talking about? 38:02 38 minutes, 2 seconds Well, uh you should uh roughly take about 150 rupees a 7. Yes, Mr. Mr. 38:12 38 minutes, 12 seconds Yeah. Uh uh there there's some increase in the packing cost in the quarter. The impact is impacted is the mark and it is 38:21 38 minutes, 21 seconds around in if if we see the quarter figure then it is increased by 20 rupees per ton and uh now 38:32 38 minutes, 32 seconds and now going forward it would be around say 100 per there will be uh increase. 38:42 38 minutes, 42 seconds So on a total cost basis just going back to the fourth quarter you've had an increase in the power cost you've had an increase in freight as well as in 38:50 38 minutes, 50 seconds packaging for the blended cement cost of production would have gone up by how much during the fourth quarter sequentially 38:57 38 minutes, 57 seconds increase in would be uh should be 150 to 200 rupee per ton including faking and 39:05 39 minutes, 5 seconds the material cost as well as the this power fuel and all. This is in the fourth quarter. 39:13 39 minutes, 13 seconds No, no, in the coming quarter. In the fourth quarter almost say there's there in the fourth quarter almost 39:20 39 minutes, 20 seconds there's say the the impact of is around say uh 20 to 30 rupee in the fourth quarter compared to this. 39:31 39 minutes, 31 seconds Okay. So total cost increase is 20 30 rupees versus the first quart. 39:38 39 minutes, 38 seconds Okay. And just one, what was the percentage of blended cement and trade cement? 39:45 39 minutes, 45 seconds Yeah, it's uh 64%. 64% was the trade sale. Okay. Thank you. 39:52 39 minutes, 52 seconds You wanted the trade sale, right? No, blended. Blended is around 60. Blended is 62%. 39:59 39 minutes, 59 seconds Blended is 62 and trade is 64. Correct. Thank you. 40:07 40 minutes, 7 seconds Ashi, are you done with your question? Yes, I'm done. Thank you. Thank you. 40:13 40 minutes, 13 seconds Our next question comes from the line of Perves Kaji from Noam. Please go ahead sir and thanks for taking my question. 40:21 40 minutes, 21 seconds Uh I'm sorry if you've answered this question earlier but just wanted to get what was our cost in Q4. 40:29 40 minutes, 29 seconds Come back again please. Uh sir, what was our Kal cost in Q4? 40:36 40 minutes, 36 seconds It's a 1.6 6 1.60 per kilo calorie landed at our plant. 40:43 40 minutes, 43 seconds Sure. Uh and just one more question. Uh what would have been our fuel mix in Q4? 40:50 40 minutes, 50 seconds Uh the for Q4 it was petco was 54% coal was 32% and alternative fuel was 14%. 41:02 41 minutes, 2 seconds Sure. Thanks and all the best. Thank you. 41:09 41 minutes, 9 seconds Our next question come from the line of Pratik Kumar from Jeff. Please go ahead. 41:17 41 minutes, 17 seconds Yeah. Uh Remy sir. Uh my question is on your pricing gap closing with large pier. Uh you talked about closing 20 41:25 41 minutes, 25 seconds rupees gap. So is this similar across regions uh and uh is this the stabilized level? Of course you said uh uh there's 41:34 41 minutes, 34 seconds always scope to improve but how is this different across region? Now let us understand Pratik 41:42 41 minutes, 42 seconds 15 to 20 rupees is the uh delta decrease across region 41:49 41 minutes, 49 seconds and uh we intend to keep it we intend to compress it further but then demand plays a major role in uh 41:59 41 minutes, 59 seconds in pushing the price rises. So let us see how the demand pans out. 42:11 42 minutes, 11 seconds Uh sure. Uh and this uh price in uh gas reduction has happened over past three quarters, right? Uh 42:18 42 minutes, 18 seconds since then your volumes of over the over Yes. has been a continuous exercise. Till third quarter we had 42:26 42 minutes, 26 seconds restricted our volumes to have the price gain and fourth quarter we have done all right. The pricing is fine. the volumes 42:34 42 minutes, 34 seconds are good and we intend to remain like that. 42:40 42 minutes, 40 seconds Uh sure. Other question is on your RNC uh business uh revenue for Q4 and full year and aida for Q4 and full year. 43:07 43 minutes, 7 seconds 90 rupee and the volume here is 1.99 MQ 43:17 43 minutes, 17 seconds RMC is at a very nent stage just started yeah we are a very new 26 plant company 43:24 43 minutes, 24 seconds now going to 36 I think we will take a few more quarters and maybe some years before we are able to report RMC 43:33 43 minutes, 33 seconds independently. Yeah. As a business line go ahead. 43:40 43 minutes, 40 seconds Uh the revenue was 90 k for Q4 and for what was the number? Uh it is 246. 43:50 43 minutes, 50 seconds Sure. Thank you. These are the question. 43:55 43 minutes, 55 seconds Thank you. Our next question come from the line of Pulkit Putney from Goldman Sach. Please go ahead. 44:02 44 minutes, 2 seconds Uh sir, thank you for taking my question. I just one question. You spoke about packaging cost increase of 20 44:08 44 minutes, 8 seconds rupees already done and another maybe 80 to 100 rupees in Q1 and there's another 150 to 200 rupees of of uh fuel cost 44:18 44 minutes, 18 seconds increase. So would that be it? I'm just trying to understand what is the kind of inventory of of fuel that we have right 44:25 44 minutes, 25 seconds now at the plants and in does it fully reflect in Q1 or Q2 will see further inflation in that? 44:32 44 minutes, 32 seconds No, wait a minute. As far as Q2 is concerned, we cannot comment. Can you tell me when the war will be over? 44:40 44 minutes, 40 seconds No sir. 44:42 44 minutes, 42 seconds Hear hear me out. Hear me out. Please hear me out. 44:46 44 minutes, 46 seconds At the moment we are saying that our per kilo calorie cost in Q4 was 160 which is likely to go up by 10 to 12% in Q1. 44:58 44 minutes, 58 seconds Q2 we are not in a position to comment. 45:02 45 minutes, 2 seconds There are no caros available floating cargos available and the state of Hormones is playing its own spoiled 45:10 45 minutes, 10 seconds sport. So it is very difficult. It's extremely dynamic situation. So is PVC. 45:16 45 minutes, 16 seconds Now PBC graduates are vanishing or having a genetic price rise. So the the 45:24 45 minutes, 24 seconds indication as on date you can take 100 rupees per turn of packing cost rise 45:30 45 minutes, 30 seconds and as Mr. J and explain to you in the within the quarter at varied time depending on the weighted average cost 45:39 45 minutes, 39 seconds of consumption which we use or which most companies use. The incremental 45:47 45 minutes, 47 seconds negative impact of such cost rise will be incrementally incrementally reflected in our results. 45:56 45 minutes, 56 seconds And also remember that we the industry as a whole is suffering on these two 46:03 46 minutes, 3 seconds occurrence and there is a conscious effort by all players to try and a price range which should mitigate this cost increase. 46:14 46 minutes, 14 seconds Sir I fully appreciate that the reason I'm asking this question [clears throat] is some of your peers have highlighted that they maintain between 60 to 70 days 46:22 46 minutes, 22 seconds 75 days worth of fuel inventory which means Let let me let me one second. 46:30 46 minutes, 30 seconds Please understand that they talk of 60 to 75. We have never gone below 90. 46:39 46 minutes, 39 seconds So in which case the fuel cost should hit us in the second quarter. Right? I'm a little confused. Sorry, help me understand this. 46:47 46 minutes, 47 seconds I said that people are saying they carry 60 to 75 days of inventory. I say our 46:54 46 minutes, 54 seconds core inventory is never doesn't go below 90 days sir. Uh so in if the war started end of 47:04 47 minutes, 4 seconds Feb early March then it is not before the the last month of this quarter that increased cost should hit you right 47:12 47 minutes, 12 seconds right now we should be operating inventory. 47:15 47 minutes, 15 seconds No no no my dear friend you are slightly mistaken. 47:20 47 minutes, 20 seconds The charge is on weighted average cost not on procurement cost or historical cost. The weighted average cost with 47:29 47 minutes, 29 seconds every shipment keeps on increasing if the fuel price is rising. So yes the major impact will come in the third 47:36 47 minutes, 36 seconds month but then every month you will have some incremental effect precisely sir. So in which case whatever 47:44 47 minutes, 44 seconds is getting ordered today the second quarter impact of cost will be much higher. That's what I'm trying to assess. 47:51 47 minutes, 51 seconds No, that is you are assuming that the same prices will sustain that war will keep on going that all shipment chaos 47:59 47 minutes, 59 seconds will be there. I'm not in a position to hazard this that guess at the moment. Fair point sir. So point well taken. 48:07 48 minutes, 7 seconds Thank you. 48:08 48 minutes, 8 seconds would like to clarify one thing that there there will be say cost impact of 150 200 rupee in the second quarter as 48:16 48 minutes, 16 seconds compared to the this March uh March 26 this is in totality including the pecking may cost and the 48:24 48 minutes, 24 seconds June quarter in June quarter not mean not separately for the call and the for the 48:34 48 minutes, 34 seconds 200 put together all Okay, very clear sir. Thank you. 48:42 48 minutes, 42 seconds Thank you. Next question comes from the line of Raa Maheshwari from IQ Securities. Please go ahead. 48:49 48 minutes, 49 seconds Yeah. Hi, good afternoon. Good evening sir. Firstly, congratulations on your set of results. So my question is on the firstly the trend situation in the 48:57 48 minutes, 57 seconds northern market for the flyers related because due to the continu effects is going into the next for the 27 and 20 49:05 49 minutes, 5 seconds into the northern market. How will you see the flyers availability in the north and is it the sufficient fly available because we are expecting there is no 49:14 49 minutes, 14 seconds major new power plant coming. So how is fly especially 49:29 49 minutes, 29 seconds Yes sir. 49:36 49 minutes, 36 seconds Fly ash is the only cementicious material which we can use. 49:42 49 minutes, 42 seconds There are various other cementicious material which which can go into PPC and we are keeping on scouting for all such 49:50 49 minutes, 50 seconds alternatives to thermal capacity. 49:58 49 minutes, 58 seconds There are so different. 50:03 50 minutes, 3 seconds Got it sir. What kind of we use for other materials other than fly for the PPC? 50:10 50 minutes, 10 seconds Yeah. Okay. Thank you. 50:23 50 minutes, 23 seconds Thank you. 50:26 50 minutes, 26 seconds Our next question come from the line of Gir from Miral Bank. Please go ahead. 50:39 50 minutes, 39 seconds [clears throat] 50:40 50 minutes, 40 seconds Gare you may please proceed ahead with the question. Thank you 50:48 50 minutes, 48 seconds as there's no response from Gir. We'll move forward to the next participant. 50:54 50 minutes, 54 seconds Our next question come from the line of Rajes Shvi from SDFC securities. Please go ahead. 51:02 51 minutes, 2 seconds Yeah, just a followup question sir on the operating number uh while most of you most of them are already answer what 51:09 51 minutes, 9 seconds was the lead distance that you mentioned uh in Q4 I think it was 459 kilometers 51:16 51 minutes, 16 seconds 455 km okay and uh yeah 51:25 51 minutes, 25 seconds what is the exact number 457 457 Okay. And this you're looking to go back to 440 and subsequent quarters. 51:35 51 minutes, 35 seconds Yes. And price even lower. Understood. Understood. 51:41 51 minutes, 41 seconds Yeah. Yeah. And sir, uh lastly on the cement price high across market area of operating market uh this 150 to 200 cost 51:50 51 minutes, 50 seconds uh inflation that you are seeing from Q1 are they fully covered uh in the price increases which you have taken in the 51:56 51 minutes, 56 seconds month of April? Anticipated 52:10 52 minutes, 10 seconds cost increase up to June pricing. 52:25 52 minutes, 25 seconds Yes, we are generally covered. 52:34 52 minutes, 34 seconds We don't s given the steel prices have also shot up significantly and there are across 52:43 52 minutes, 43 seconds the board inflationary impact on construction material and there have been disruption even on uh labor 52:49 52 minutes, 49 seconds availability. Have you seen demand uh you know uh disappointing uh in the month of April and May so far? 53:09 53 minutes, 9 seconds Agree. Great. That's all from my end. Thank you. Are we cru or you have some questions? 53:19 53 minutes, 19 seconds Thank you. 53:21 53 minutes, 21 seconds Our next question come from the line of Navin Sad from ICC Securities. Please go ahead. 53:27 53 minutes, 27 seconds Yeah, just last few uh uh people are there uh for the questions. Uh so just two questions from uh uh my side. So in 53:35 53 minutes, 35 seconds the initial comment or maybe to the answer of one of the questions you said uh I mean Akur Gi said that the incentives for Meghallaya uh though we 53:45 53 minutes, 45 seconds are like you know uh uh working with the state but nothing is promised as yet. Is this a new policy uh or any change in 53:53 53 minutes, 53 seconds policy for the state or it's uh just help me understand this because other companies which are operating 54:03 54 minutes, 3 seconds incentive 54:16 54 minutes, 16 seconds adverse conditions investment committee. 54:36 54 minutes, 36 seconds Understood. Understood. So my second question was about the north region. uh I think some time back uh uh Bangui in a 54:43 54 minutes, 43 seconds TV interview had uh said that they might lose some market share uh in the north 54:51 54 minutes, 51 seconds uh regions because of the several I think uh uh upcoming capacities and uh but this quarter our volume growth has 54:59 54 minutes, 59 seconds been definitely like you know uh uh much better than the previous quarters and also the strategy is very consciously 55:05 55 minutes, 5 seconds towards uh focusing on volumes now that we have 55:15 55 minutes, 15 seconds No, I said that we sacrificed volumes to reach a price point and once we reach that price point and it became 55:23 55 minutes, 23 seconds acceptable to all, we sold as much as we could sell. 55:28 55 minutes, 28 seconds So price point. 55:45 55 minutes, 45 seconds It is not it is not it is not that we are reinventing the equation value over volume to volume over value. 55:53 55 minutes, 53 seconds Profitability our is our main concern. We'll remain f focused on profitability. 56:02 56 minutes, 2 seconds Time will only 56:25 56 minutes, 25 seconds point. Thank you. 56:30 56 minutes, 30 seconds Are we through? It is already 1 hour here. 56:34 56 minutes, 34 seconds Yeah. Yeah, sir. We can conclude. Please go ahead and Thank you. That was the last question 56:42 56 minutes, 42 seconds for today and the conference over to the management for the closing remarks. Thank you and over to you. 56:50 56 minutes, 50 seconds Thank you everybody. Thanks uh for this uh uh for the call and thank you for participating. Um be rest assured that 56:58 56 minutes, 58 seconds uh uh despite all the numbers that we have shared uh um and and thank you for uh for wishing us well on this 11% 57:08 57 minutes, 8 seconds volume growth. Um many things will continue to unfold in shield cement. We will continue to sharpen our approach 57:16 57 minutes, 16 seconds and focus on cost. Um uh we'll also continue to work on our premium products. As you have seen, we have uh 57:23 57 minutes, 23 seconds uh now crossed 22% uh um up by about 40% from 15% to 22%. Yeah. 57:30 57 minutes, 30 seconds 1 14% in uh uh there's a uh increase in the sale in last year from 9% to 22% in 57:37 57 minutes, 37 seconds 9% to 22%. We have we are doing everything possible on uh using all the levers be it on the cost or be it on the revenue side to better performance in 57:46 57 minutes, 46 seconds the coming quarters. Um inshallah whatever uh is the the macroeconomic 57:53 57 minutes, 53 seconds conditions um you will be impacted but within those conditions Shri will do its best to uh and continue to deliver some 58:03 58 minutes, 3 seconds um superior results. Thank you everybody and have a very good evening. Bye-bye. 58:08 58 minutes, 8 seconds Thank you so much su ladies and gentlemen on behalf of ICA securities limited that conclude this conference. 58:15 58 minutes, 15 seconds Thank you for joining us and you may now disconnect your lines. Thank you. Thank you.