UltraTech Cement — Q4 FY26

UltraTech Cement Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=77tIJYCsYME Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Ultra Tech Cement Limited Q4 FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will remain in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:27 27 seconds Please note that this conference is being recorded. 0:30 30 seconds I will now hand the conference over to Mr. Atul Daga, Chief Financial Officer for opening remarks. Thank you and over to you sir. 0:39 39 seconds Thank you. Uh uh good evening to everybody. 0:44 44 seconds I want to begin not with numbers but with where we stand as a company because fiscal 26 in my view is a year that will 0:54 54 seconds be looked back on as a genuinely significant in Altek story and fiscal 27 1:02 1 minute, 2 seconds started with an achievement of major milestones. Alt crossed 200 million tons of cement production capacity in India a 1:09 1 minute, 9 seconds first for any company in a single country outside of China. 1:15 1 minute, 15 seconds Let me put this in context. We reached 100 million tons in 2019, added another 50 million tons in 5 years by 2024. 1:26 1 minute, 26 seconds And we completed the journey from 150 to 200 million tons in less than 2 years. 1:32 1 minute, 32 seconds This is a feat even more recarkable since we are a full year ahead of our targets as what we had set for ourselves. 1:42 1 minute, 42 seconds Let's be clear on what the number means. 1:45 1 minute, 45 seconds It's not a simply a headline. It's an expression of a strategy to build scale that compounds in cost efficiency, in 1:54 1 minute, 54 seconds market reach, in raw material security, and in sustainability. 1:59 1 minute, 59 seconds Every ton of capacity we add reinforces every ton that came before it. 2:08 2 minutes, 8 seconds Let's look at our position globally. 2:10 2 minutes, 10 seconds Outside of China, Ultrate Techch is today the largest cement company in the world by sales volume and we are the 2:18 2 minutes, 18 seconds only cement company anywhere in the world to have over 100 million ton of production capacity within a single country. We are 200 million tons. 2:29 2 minutes, 29 seconds These are not rankings we have stumbled into. These are the results of a very deliberate strategy, disciplined organic growth, timely 2:37 2 minutes, 37 seconds acquisitions at the right price, and a relent relentless focus on execution. 2:44 2 minutes, 44 seconds From somewhere 65 million tons in 2016 to 200 million tons today, we have more than tripled our capacity in a decade. 2:53 2 minutes, 53 seconds Our next horizon is already set. We have committed to add a further 37 million tons which will take us over 242.5 3:02 3 minutes, 2 seconds million tons in a phased manner by fiscal 28. 3:08 3 minutes, 8 seconds Now I want to speak to something that is very much on everybody's minds. The conflict in West Asia and what it means 3:16 3 minutes, 16 seconds for us. Whilst I have given a indicative chart in our presentation on where the 3:22 3 minutes, 22 seconds impact of these rising prices could be let's be straightforward it's a real headwind on fuel cost 3:31 3 minutes, 31 seconds packing bag and freight on certain import dependent supply chain on near-term sentiment in some demand 3:39 3 minutes, 39 seconds segments and the way all oil prices are we could see an increase in domestic prices of petrol and diesel 3:47 3 minutes, 47 seconds The government's monthly economic review for March 26 also acknowledged that the outlook has become slightly uncertain. 3:56 3 minutes, 56 seconds And yet India's structural growth story is entirely intact. Government capeex is flowing. Infrastructure execution 4:04 4 minutes, 4 seconds continues. Housing demand is robust. IMF has also raised the growth forecast for the country. 4:13 4 minutes, 13 seconds Just to rattle some numbers out for you, India did approximately 10,660 kilometers of highways in fiscal 25 and 4:23 4 minutes, 23 seconds has maintained the pace in 26. The PMA housing program is driving cement consumption at scale. That tells us 4:31 4 minutes, 31 seconds something important about the underlying demand base on the construction cost environment. 4:39 4 minutes, 39 seconds Cement prices have been largely stable in the last financial year with movement of maybe 0 to 5%. Steel prices have seen volatility. 4:50 4 minutes, 50 seconds West Asia situation is near-term cost moderator not a structural demand reversal and we 4:58 4 minutes, 58 seconds believe ultr with our domestic uh strength our 1.8 8 gawatt green energy 5:06 5 minutes, 6 seconds platform. Our scaledriven cost efficiency is better positioned much better positioned to manage through this 5:14 5 minutes, 14 seconds environment as well. [clears throat] Fiscal 26 was a year of extra extraordinary execution. We crossed 200 5:21 5 minutes, 21 seconds million tons. We completed brand migration for both India cements and kesam ahead of schedule. We continued 5:30 5 minutes, 30 seconds building our green energy capacity and we delivered volume growth and improved profitability. 5:37 5 minutes, 37 seconds We said we would do things these things we have done them and in we enter fiscal 27 in a stronger strategic position that 5:46 5 minutes, 46 seconds at any point in than at any point in our history. 5:51 5 minutes, 51 seconds Let me look at the Q4 performance and the fullear performance and we'll also share some insights on 5:59 5 minutes, 59 seconds the integration stories and our cost efficiency program. Consolidated sales volumes as you have already seen has 6:06 6 minutes, 6 seconds crossed a rocking 44 million tons uh this quarter. [clears throat] Most important aspect about it to note 6:15 6 minutes, 15 seconds is that Ultrate Tech as a brand year on year has grown 19%. Nobody can take away that thunder from us. 6:26 6 minutes, 26 seconds Realizations improved during the quarter. Gray cement pricing sent in about 2 and a.5% in most geographies supported by an improving trade mix and premiumization. 6:39 6 minutes, 39 seconds A blended filament share premium portfolio contribution both moved higher which is a conscious and a deliberate 6:47 6 minutes, 47 seconds strategy going forward. Aida 6:49 6 minutes, 49 seconds [clears throat] 6:49 6 minutes, 49 seconds per ton excluding acquired assets is at 1296 per ton for the quarter. 6:57 6 minutes, 57 seconds For the context this metric was 1225 in Q425. 7:05 7 minutes, 5 seconds The trajectory has continued on an aggregate basis we have reported 1253 7:14 7 minutes, 14 seconds uh rupees per ton in Q426. 7:20 7 minutes, 20 seconds This if I were to split between India and uh overseas thanks to our UAE operation doing very well they have 7:28 7 minutes, 28 seconds contributed substantially but India has been no less. Remember the India capacity is almost 196 million tons 7:35 7 minutes, 35 seconds during this year. If I were to remove the aberrations of West Asia crisis, we have achieved 7:43 7 minutes, 43 seconds uh a bida per ton of very close to 1240 rupees per ton. What am I knocking out from here? The last month increase in 7:52 7 minutes, 52 seconds cost of bags and impact of exchange loss, the highly volatile and the 8:00 8 minutes frantic devaluation of rupee that happened in the last month. 8:07 8 minutes, 7 seconds So I believe we have done very well on aida patan as well. 8:13 8 minutes, 13 seconds A renewable energy platform has been growing from strength to strength. Today we are almost at 43% of 8:21 8 minutes, 21 seconds our power needs being met from green sources. We have committed to reach about 85% of our power requirements from 8:29 8 minutes, 29 seconds green energy by the end of uh fiscal 2030 and we are very confident of reaching that position. 8:38 8 minutes, 38 seconds On the fuel side, we are actively managing our mix, optimizing between petco, coal, alternative fuels and 8:45 8 minutes, 45 seconds increasing the share of uh domestic coal wherever required, wherever possible. 8:51 8 minutes, 51 seconds On the logistics strand, our reduced our lead distance has reduced to 367 kilometers. Our ex ever expanding bulk 9:00 9 minutes terminal network including the new Ducknau facility and other facilities are helping us reach the customer faster 9:09 9 minutes, 9 seconds thus helping us reduce our lead distance and our overall costs. 9:16 9 minutes, 16 seconds Let me spend a few minutes on the two acquired businesses because the progress is I believe fantastic. Brand migration 9:25 9 minutes, 25 seconds 100% brand migration has been completed at the end of March uh 26 9:33 9 minutes, 33 seconds in second quarter fiscal 26 we were at 31% of ICL volumes and 55% of kodam 9:41 9 minutes, 41 seconds volumes were uh carrying alt brand December 25 they had moved to 58 and 69% 9:50 9 minutes, 50 seconds we have completed at the exit of March March 26 100% brand conversion 9:58 9 minutes, 58 seconds the AIDA trajectory India cements Aida of 497 rupees per ton in Q426 10:07 10 minutes, 7 seconds up from 333 rupees in Q2 and 305 in Q3. 10:13 10 minutes, 13 seconds Sequential improvement every quarter since acquisition. This quarter the company declared a pact of 60 crores for 10:23 10 minutes, 23 seconds the quarter which has been after a very long time and this 497 rupees a bit and please 10:32 10 minutes, 32 seconds understand how we read it. We as you know under the related party transactions we had put in place a tolling arrangement. 10:42 10 minutes, 42 seconds ICL or India cement manufactures and sells the Ultr brand but does not carry any direct marketing and distribution 10:50 10 minutes, 50 seconds cost. Those sit with us at the consolidated level. 10:54 10 minutes, 54 seconds At Altratech we charge a markup per bag on ICL volumes which offset 11:01 11 minutes, 1 second that element on a net basis. So India's underlying operational progress towards 11:08 11 minutes, 8 seconds ultrare tech system is much higher than 497 per ton 11:17 11 minutes, 17 seconds and the price improvements selling price improvements have happened in the southern markets will give it a further 11:24 11 minutes, 24 seconds boost. The investment phase is now underway. We had committed 1592 crores for India cements for efficiency 11:32 11 minutes, 32 seconds improvement plus another 400 crores for capex uh on capacity expansion. 11:39 11 minutes, 39 seconds This definitely is going to take us over 1,000 rupees per ton as committed by the end of fiscal 28. 11:48 11 minutes, 48 seconds We are spending 400 to 500 crores for quesam uh cement assets. They are already operating at,000 rupees a bit per ton 11:57 11 minutes, 57 seconds more or less in line with the uh with the other cement operations in south. 12:06 12 minutes, 6 seconds These two assets today represent about 13% of our consolidate consolidated capacity. They are moving from 12:13 12 minutes, 13 seconds integration drag to earnings contributor. 12:17 12 minutes, 17 seconds As their cost improvement capex matures, they will be a meaningful and growing source of group level AIDA accretion. 12:28 12 minutes, 28 seconds Let me now look at how we see fiscal 27 and beyond. 12:33 12 minutes, 33 seconds We expect a sustainable volume growth of 7 to 8% perom. 12:39 12 minutes, 39 seconds The structural drivers are firmly in place. India's urbanization story, the government's infrastructure commitment. 12:47 12 minutes, 47 seconds You would have read about Mumbai city itself spending about $60 billion in improvement uh of infrastructure. 12:57 12 minutes, 57 seconds The PMA housing targets, rising rural demand, none of these have been diluted by the West Asia crisis. 13:05 13 minutes, 5 seconds These are very strong structural forces and Ultra Techch is better positioned 13:11 13 minutes, 11 seconds than anybody else to capture that demand in the long term. 13:19 13 minutes, 19 seconds The near-term environment has its complexities. Nobody knows what will happen tomorrow. What will be the new u 13:28 13 minutes, 28 seconds comment that gets made which could uh move the markets. We will wait and watch. On the integration side, we are 13:37 13 minutes, 37 seconds through the hard work. Both in India cement and koram are fully migrated to the alt brand. Cost improvements are 13:44 13 minutes, 44 seconds underway and fiscal 27 P&L will start reflecting the benefits of this investment. 13:54 13 minutes, 54 seconds I should definitely mention about the dividend. The board has uh discussed, debated and proposed. 14:03 14 minutes, 3 seconds Our balance sheet remains robust with a net debit net debt aida of 94x at a 14:10 14 minutes, 10 seconds consolidated level and 92x at ultr India level. 14:17 14 minutes, 17 seconds This gives us financial flexibility to continue investing in growth without compromising on returns to shareholders. 14:25 14 minutes, 25 seconds [clears throat] 14:26 14 minutes, 26 seconds We have already started charting out our growth story beyond 240 million tons and will come back to you next year. 14:36 14 minutes, 36 seconds The board has recommended a dividend of 240 rupees a share for fiscal 26. This dividend has been stress tested against 14:44 14 minutes, 44 seconds retained earnings remaining adequate for all planned investments and commitments. 14:51 14 minutes, 51 seconds credit metrics and debt covenant are unaffected by the proposed distribution. 14:55 14 minutes, 55 seconds We'll maintain our leverage below 1x year after year after meeting our growth capex 15:03 15 minutes, 3 seconds and our growth capex requirement is not sync uh not shrinking we see a plan of investing around 8 to 10,000 crores every year for the foreseeable future. 15:14 15 minutes, 14 seconds Future cap capex pipeline remains fully funded and the growth story is intact. 15:21 15 minutes, 21 seconds It's a cumulative outcome of disciplined capital allocation, operational excellence and consistent strategic execution over many years. 15:32 15 minutes, 32 seconds We know it, you know it, our operating cash flows are growing and our board has already taken a stance of improving the returns to shareholders. 15:41 15 minutes, 41 seconds You would have seen our dividends grow from 10% of profits in 2020 to 37% of 15:48 15 minutes, 48 seconds profits last year. And today we are where we are. Dividend is 15:55 15 minutes, 55 seconds not simply a financial transaction. It is a communication of our confidence and commitment to our shareholders and investors. It says we are confident in 16:04 16 minutes, 4 seconds our earnings quality in our forward outlook and in our ability to generate and sustain value. We are not keeping 16:13 16 minutes, 13 seconds cash on balance sheet out of uncertainty. We are sharing it because we can and because we have planned carefully enough to do so without any constraint. 16:24 16 minutes, 24 seconds I want to close with something very simple. Ultrate Tech has made commitments to investors on capacity on 16:31 16 minutes, 31 seconds integration on brand transition on cost efficiency on sustainability and on returns to shareholders. Year 16:40 16 minutes, 40 seconds after year we have delivered on these commitments. FI26 being the top-notch performer. 16:50 16 minutes, 50 seconds We said we would reach 200 million tons ahead of schedule. We did. We said we would compete brand transition for ICL and Quesram. We did and a quarter early. 17:00 17 minutes That consistency of delivery ladies and gentlemen is what defines Alitech 17:07 17 minutes, 7 seconds and it is what will continue to define us in the decade ahead. Thank you. And we are now ready for your questions. 17:18 17 minutes, 18 seconds Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a 17:25 17 minutes, 25 seconds question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, 17:32 17 minutes, 32 seconds you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and 17:40 17 minutes, 40 seconds gentlemen, we will wait for a moment while the question Q assembles. 17:45 17 minutes, 45 seconds We take the first question from the line of Rahul Gupta from Morgan Stanley. Please go ahead. 17:52 17 minutes, 52 seconds Hi. Um uh thank you for taking my questions. Um first of all, congratulations on hitting 200 million ton capacity, domestic capacity and um um and and a very good set of numbers. 18:03 18 minutes, 3 seconds So I have three questions. Uh first um um uh just continuing on the capital allocation uh point that you made uh sir uh thanks for the uh uh clarity on that. 18:15 18 minutes, 15 seconds Just to be um clear on this is it fair to say that given balance sheet strength um um and you um funding your capeex 18:24 18 minutes, 24 seconds through internal approvals um we may see payout ratios staying higher for uh foreseeable future. 18:34 18 minutes, 34 seconds I think so but it will depend on the board and company's performance. If we uh perform you know if the cement 18:42 18 minutes, 42 seconds markets do well um I think it should be possible. 18:50 18 minutes, 50 seconds Got it. Got it. That that's very helpful. And most important most important point RA I would want to make is uh and I think already said it but I 18:59 18 minutes, 59 seconds want to repeat next few years uh we are in 26 till 2030 31 I I will see 8 10,000 19:07 19 minutes, 7 seconds crores of capex happening from our balance sheet every year and as the operating cash flows 19:14 19 minutes, 14 seconds grow because of our existing size uh existing capacities delivering more and or the operating 19:22 19 minutes, 22 seconds cash the size of operating cash flows keeps increasing making it very easy for the company to uh reward its shareholders. 19:31 19 minutes, 31 seconds That's exactly the point. Yeah, very very helpful. 19:34 19 minutes, 34 seconds Um uh my second question is um on realization um um you you to some extent have uh clarified u how realizations 19:43 19 minutes, 43 seconds have been better this quarter. your share of trade has improved, direct sales have improved and u brand transition of acquired assets have also ramped up fully uh during the quarter. 19:53 19 minutes, 53 seconds So am I missing something over here or is it the brand transition um completion has helped um in in in in giving you the 20:02 20 minutes, 2 seconds edge in terms of utilization during the quarter significantly because uh if I were to look at let's say India cement's volumes 20:11 20 minutes, 11 seconds for the quarter of 3.12 million tons uh nonult volume was 39 million tons uh 20:21 20 minutes, 21 seconds only uh So we have had the and uh everybody knows that you know uh ultrarech enjoys 20:28 20 minutes, 28 seconds a premium positioning with brand transition that has definitely helped. Jama you want to add? 20:35 20 minutes, 35 seconds Yeah um very good afternoon and um I would add further what said actually the fundamentally I think it is 20:43 20 minutes, 43 seconds working on all engines actually there are number of moving parts in the cement actually. So one yes of course the brand 20:52 20 minutes, 52 seconds transition at has clarified which is rightly so but there are so many other 21:00 21 minutes at least four five six critical moving part actually which also helps to improve the efficiency and uh at the end 21:08 21 minutes, 8 seconds of the day resultant into the improved cost structure or the higher profitability. 21:17 21 minutes, 17 seconds Got it. And my final question is um um u first of all thank you so much for sharing data on slide six. Um now my 21:25 21 minutes, 25 seconds question is that um in one of the slides you have mentioned that other opex got some impact of uh the west Asia crisis. 21:32 21 minutes, 32 seconds Uh can you help us quantify what that would be and how should we see uh June quarter uh assuming 21:40 21 minutes, 40 seconds uh this current situation continues. So firstly on slide six I've just given an indication which what could be a 21:49 21 minutes, 49 seconds potential impact and uh you know this cannot be annualized for the quarter. So 21:56 21 minutes, 56 seconds please don't panic too much and yes in the last quarter the immediate impact was because you know everybody has 22:05 22 minutes, 5 seconds inventories of fuel. So nobody would have really felt the uh heat of rising prices of fuel but bags became a u 22:14 22 minutes, 14 seconds crisis in the last month of in the month of March and uh everybody got impacted. 22:21 22 minutes, 21 seconds The cost went through the roof and our incremental cost on bags was approximately 90 crores uh which is 22:29 22 minutes, 29 seconds reflected in other costs uh for the quarter on account of bags prices go bags cost going up. 22:41 22 minutes, 41 seconds Hello. 22:42 22 minutes, 42 seconds Thank you. And any any um uh any color how should we look at power and fuel cost for uh for the June quarter? Uh I 22:50 22 minutes, 50 seconds don't think there will be too much of an issue in the June quarter and I will urge you Rahul to fly down to the White House and do something about it. 23:02 23 minutes, 2 seconds Well noted. 23:03 23 minutes, 3 seconds So uh well no I don't think so it'll be too much of a pain. You know prices are going up which is a reality. 23:11 23 minutes, 11 seconds um selling prices have also been increased to take the to cushion the impact of rising input costs. Another 23:21 23 minutes, 21 seconds important u uh you know one-off which we are not even you know uh talking about 23:27 23 minutes, 27 seconds but the fact is the way rupee devaluated I have $950 23:34 23 minutes, 34 seconds $950 million of uh foreign currency uh borrowings sorry $950 million of foreign 23:42 23 minutes, 42 seconds currency borrowings fully hedged u but when you have to do a marktomarket 23:49 23 minutes, 49 seconds you have to take the impact of uh that currency into accounts. It hits your 23:55 23 minutes, 55 seconds EIDA 94.85 was the dollar rupee rupee to dollar 31st March it corrected it 24:05 24 minutes, 5 seconds strengthened by almost 1.8 sort of it corrected on the 2nd of April 1.8 but we 24:12 24 minutes, 12 seconds have to account for the dollar dollar uh borrowings at 94.85 85. It's a notion still uh it's a debit to the non-cash debit to the PNL but so be it. 24:24 24 minutes, 24 seconds Got it. Well understood. Thank you so much and wish you all the best sir. Thanks R. 24:31 24 minutes, 31 seconds Thank you ladies and gentlemen. In the interest of time and fairness to others we request you to restrict to two questions per participant and rejoin the question queue. 24:42 24 minutes, 42 seconds We take the next question from the line of Pulkit Putney from Coleman Sack. Please go ahead. 24:48 24 minutes, 48 seconds Uh sir, thank you for taking my questions and commendable uh results. Very good quarter. So my first question is you 24:55 24 minutes, 55 seconds spoke about brand conversion having completed it in March. Could you highlight between March end and now how 25:03 25 minutes, 3 seconds much has been the impact of this on on uh India summons and and Quesora? 25:10 25 minutes, 10 seconds So um you know quesuram if I look at January March quarter it was already operating at thousand plus eida per ton 25:19 25 minutes, 19 seconds and uh everything else remaining the same India cements will improve further 25:25 25 minutes, 25 seconds because again I called out out of 3.12 million tons only 39 million tons was 25:34 25 minutes, 34 seconds nonlult brand 2.73 million tons already rebranded So everything else remaining 25:42 25 minutes, 42 seconds the same the impact will be felt on this uh you know less than half a million tons of uh volume in Q4. Having said 25:50 25 minutes, 50 seconds that, price improvements and the real efficiency and integration benefits will 25:56 25 minutes, 56 seconds start flowing. Now to you know better explain Pulkit now it'll be one product 26:03 26 minutes, 3 seconds which is leaving from all the nine uh 11 factories of nine factories of uh India cement as 26:11 26 minutes, 11 seconds compared to earlier days there were multiple brands going out not just two but there were more than two brands going out. So the real efficiency which 26:20 26 minutes, 20 seconds will be visible in logistics now seamless operation will be be visible now my performance will go up further in 26:29 26 minutes, 29 seconds terms of earnings potential from India services uh this is very clear so secondly I'm just following up from the question from 26:37 26 minutes, 37 seconds the previous participant on the slide six where you speak about the impact of of West Asia conflict and while clearly 26:45 26 minutes, 45 seconds you know longer term you've been able to manage cost really well etc. I'm just uh wanting to understand these costs are 26:52 26 minutes, 52 seconds quite meaningful uh because you mentioned in in in one of your remarks saying that you know these are manageable. I just want to understand 27:00 27 minutes like based on just rough math this looks to be fairly high in terms of its impact. So any mitigating measures that you can highlight which gives you 27:09 27 minutes, 9 seconds confidence that you'll be able to manage through this? Yeah, there are several uh uh measures and for the sake of 27:16 27 minutes, 16 seconds confidentiality, I might not be able to reveal trade secrets but you know uh 27:23 27 minutes, 23 seconds diversifying my sources of uh procurement, identifying newer opportunities um to deal with the situation. 27:35 27 minutes, 35 seconds um doing long-term contracts for fuel which are going to be beneficial to us. 27:41 27 minutes, 41 seconds Uh now last two years our long-term contracts were going against our um uh 27:50 27 minutes, 50 seconds you know against our decisions were unfavorable. These will become favorable for us and nobody has them. So 27:58 27 minutes, 58 seconds Altit will be one step ahead. Uh again bags may we have uh nearly 150 odd 28:06 28 minutes, 6 seconds suppliers across the country and when there is a volume uh advantage for a supplier obviously they their 28:15 28 minutes, 15 seconds inclination to service a high volume customer is much higher. Diesel impact nobody knows. 28:23 28 minutes, 23 seconds Uh you know uh we are waiting it it might surface its head its horns uh next month. Uh we'll have to wait and watch. 28:34 28 minutes, 34 seconds Fair point sir. Fair point. Uh maybe can I slip in one more question if you allow? Yeah. Yeah. Go ahead. Go ahead. 28:41 28 minutes, 41 seconds Okay. Uh sir this is uh you've mentioned the capex you've incurred on your cable and wire business and I know the numbers are small but just to get an 28:48 28 minutes, 48 seconds understanding 800 cr out of 1,800 cr has been spent does it mean we are on track for a for an end of the year launch that it could get 28:56 28 minutes, 56 seconds yes yes pulkit and since you cover this sector in so much detail you know what the implication is 29:06 29 minutes, 6 seconds I don't have to spend so much money yes Sure. So we 29:12 29 minutes, 12 seconds speaks Yeah, it speaks for itself and we my guess is we should be on track on time. [clears throat] Uh we had 29:22 29 minutes, 22 seconds committed Q3 we might be in the first month of Q3 we might launch instead of waiting for December. 29:29 29 minutes, 29 seconds Superb. Thank you and and great results as always. Thank you. Thank you. 29:35 29 minutes, 35 seconds Thank you. We take the next question from the line of Pratik Kumar from Jeff. Please go ahead. 29:43 29 minutes, 43 seconds Yeah, good evening sir and congrats for great results. My first question is uh can you discuss sequential improvement in the performance stripping out 29:50 29 minutes, 50 seconds international operations which was also done well during the quarter? 29:55 29 minutes, 55 seconds Sequential as in quarter to quarter what do you mean? 29:59 29 minutes, 59 seconds Yeah quarter to quarter. Uh like how much is the I mean it seems like international operations have also contributed to sequential improvement of overall. 30:08 30 minutes, 8 seconds Yeah. So you know you know what but they are only 5 million tons of capacity. One thing is that uh before the war broke 30:18 30 minutes, 18 seconds out they were operating at 100% capacity utilization. There was a drop in capacity utilization which went down to 30:24 30 minutes, 24 seconds about 80%. Now with the peace permanent peace program being there uh capacity 30:31 30 minutes, 31 seconds utilizations have started going up prices have started going up. 30:37 30 minutes, 37 seconds [clears throat] 30:37 30 minutes, 37 seconds So um they are doing well for themselves. But the bigger thing Pratik is that is only 5 million tons. I have 30:46 30 minutes, 46 seconds had 1250 rupee of aida per ton in India on a much higher volume. Of course I am 30:55 30 minutes, 55 seconds knocking off the impact of exchange rate and um uh cost of bags which we had to 31:02 31 minutes, 2 seconds uh face. UAE operations are all bulk volume. So there's no bag uh cost over there without 31:11 31 minutes, 11 seconds um okay accounting for all the expenses in India we are still at 1 1200 rupees per ton out of the 1253 average per ton. 31:24 31 minutes, 24 seconds UAE I believe they are doing well now. 31:28 31 minutes, 28 seconds uh uh volumes are picking up, prices have not fallen and knowing the UAE economies, I think they will be the 31:36 31 minutes, 36 seconds first one uh to turn the leaf, come up with some new programs for uh reviving the economy. 31:47 31 minutes, 47 seconds Sure. Uh and you obviously the UAE operations benefit from reconstruction demand uh wherever yeah it is required and uh sequentially 31:56 31 minutes, 56 seconds UAE had uh a bit of 267 crores in Q3 and 278 crores in uh Q4. 32:04 32 minutes, 4 seconds So it's it's a stable uh journey. 32:08 32 minutes, 8 seconds Oh so it's stable Q1 Q a bit of UA operations. Yeah. 32:13 32 minutes, 13 seconds Okay. Uh other question is on uh I mean uh can you split your pending efficiency improvement program which you have uh 32:20 32 minutes, 20 seconds given 185 rupees you have actually I forgot I forgot to talk about it. I should have pumped my hand on the 32:28 32 minutes, 28 seconds table and told you I promised and we have delivered. So we are at um almost 32:34 32 minutes, 34 seconds 185 rupees per ton on nominal basis we have uh completed and all these uh 32:42 32 minutes, 42 seconds programs which are there which will take us beyond 300 whilst we had committed 300 because I'm keeping a let's say an 32:51 32 minutes, 51 seconds emergency emergency or a buffer in my pocket but I think we will deliver higher than uh 300 bucks. This is what 33:00 33 minutes you're looking at. So uh yeah we are looking at a number higher than uh 300 bucks but uh fiscal 27 also we should 33:10 33 minutes, 10 seconds cross uh significantly higher without giving a number up front. I have a paper in front of me but yes uh we will 33:18 33 minutes, 18 seconds deliver higher than 300 bucks by fiscal 28. 33:22 33 minutes, 22 seconds I' I I've highlighted all the parameters and how they are getting quantified and measured. I don't know what else to add further. 33:34 33 minutes, 34 seconds Uh, sure. Thank you. These are my questions. All right. Thanks, Sadik. 33:39 33 minutes, 39 seconds Thank you. We take the next question from the line of Amit Kumar Moraka from Access Capital. Please go ahead. 33:48 33 minutes, 48 seconds Uh, yeah. Hi, thanks for the opportunity and congratulations on a great result. 33:52 33 minutes, 52 seconds Uh, just on on on the uh couple of data points just wanted to understand better. 33:59 33 minutes, 59 seconds So in the presentation you've mentioned that your other brand sales volume was uh 7 I think four odd million tons in FI26. 34:08 34 minutes, 8 seconds So is it fair to assume this number will be close to zero in 28 given that full transition has happened now for 34:14 34 minutes, 14 seconds yeah yeah oh no 7.34 in 26 and 0.52 in Q4 34:22 34 minutes, 22 seconds okay 52 may say.39 was uh India cement and balance was uh 34:31 34 minutes, 31 seconds quesam old brand so this is all gone now next quarter you won't see it yes almost zero Great great and uh also on the trade 34:40 34 minutes, 40 seconds non-trade mix uh like seems to be now 6535 it I think is I think a bit higher than 7030 earlier 34:49 34 minutes, 49 seconds so uh so again like on this mix particularly would it be because uh because in the presentation I also see 34:56 34 minutes, 56 seconds that the industrial uh or infrastructure was a bit muted in the quarter but still this number is a bit elevated so uh 35:04 35 minutes, 4 seconds wanted to understand like is this is this going to be now a a sustainable mix or would you like to kind of take it higher again? 35:11 35 minutes, 11 seconds I have uh I have seen it uh fluctuating between 65 67 68. 35:20 35 minutes, 20 seconds Yeah, this is this has been the narrative or this has been the uh broad mix and what you saw in uh infra two red 35:31 35 minutes, 31 seconds marks that we have given is again a temporary last quarter because things got over in one let's say Gujarat when 35:38 35 minutes, 38 seconds um the uh highspeed rail project has passed through it the work is coming to an end 35:46 35 minutes, 46 seconds that's why you saw a red mark their business right uh but otherwise I'm I'm sure the government the way uh everybody 35:54 35 minutes, 54 seconds knows that India is uh the um the 36:00 36 minutes foundation for growth it will keep on uh happening west I think I'll have to uh 36:07 36 minutes, 7 seconds you know create a darker green color for infrastructure going forward because the way Mumbai and I'm quoting the 36:15 36 minutes, 15 seconds newspapers uh yesterday or day for one one day earlier when the newspapers give 36:21 36 minutes, 21 seconds a summary of how Mumbai is uh shaping up 2035 will be totally new phase of Mumbai 36:29 36 minutes, 29 seconds $60 billion being spent here so things are happening in the countries understood understood and just one last 36:37 36 minutes, 37 seconds question if I may uh also on the clinch conversion uh ratio uh this now 1.48x 48x 36:45 36 minutes, 45 seconds um how how much more can it go to let's say in the next one to two years can it go to like we have targeted to reach about 1.54x 36:54 36 minutes, 54 seconds that is that road map is already there and uh let's see what how things shape up uh beyond that 37:03 37 minutes, 3 seconds got it thanks that's all from me and best of luck thank you thank you we take the next question from the line of Indrajit Agarval from CLSA. 37:14 37 minutes, 14 seconds Please go ahead. 37:16 37 minutes, 16 seconds Uh uh hi Mr. Dagat, thank you for the opportunity and great set of numbers as as always. Uh two questions. In the last 37:23 37 minutes, 23 seconds few weeks of March or early weeks of April, have you seen any concerns on availability because of the conflict be it bags or pet coke where you have found it difficult to source even at? 37:33 37 minutes, 33 seconds No no no no problems. 37:39 37 minutes, 39 seconds All right. Our dispatchers have not suffered at any location in the country. Bag availability has not been a crisis. 37:48 37 minutes, 48 seconds It has become expensive. Uh but it is not a crisis. 37:54 37 minutes, 54 seconds Sure. Second, uh barring cement all other building materials have become lot more expensive as you mentioned steel if 38:01 38 minutes, 1 second you look at PVC or other commodities as well. uh is it causing a demand concern for the overall IHP segment? 38:10 38 minutes, 10 seconds Too early to uh say that we have taken increases for cement. Industry has taken 38:17 38 minutes, 17 seconds uh price increases for cement in the month of April and by and large we don't 38:23 38 minutes, 23 seconds see u slowdown in demand. So every thing can be explained people will have an explanation too much of heat uh because 38:32 38 minutes, 32 seconds of which there's a slowdown but election yeah Bengal and uh Tamilad elections resulted in a slowdown just before the 38:42 38 minutes, 42 seconds the last 15 days you see a slowdown but generally I think the undercurrent uh remains strong. 38:51 38 minutes, 51 seconds Sure. And lastly, if I may uh per your best estimate, what would have been the industry growth for March quarter? 39:03 39 minutes, 3 seconds 6 to 7%. Is what my learner team over here tells me. 39:10 39 minutes, 10 seconds Thank you. That's all from me. Thank you. 39:15 39 minutes, 15 seconds Thank you. We take the next question from the line of Jashantep Singh Achala from Numura. Please go ahead. 39:24 39 minutes, 24 seconds Hello, good evening sir and thank you for the opportunity and congratulation on a very good set of numbers. So my first question is regarding India 39:31 39 minutes, 31 seconds payment as you have highlighted that 100% brand integration is done. Uh and and you know you also highlighted that 39:38 39 minutes, 38 seconds that only a small portion of volumes was under India cement brand. I just wanted to understand that the delta of 39:45 39 minutes, 45 seconds incremental emitter per ton for reaching,000 rupees per ton. How much of that will come from the cost efficiency measures that you have undertaking and 39:54 39 minutes, 54 seconds you know uh realization improvement. So if you can give a sense of you know because I believe most of your industries are already selling under 40:03 40 minutes, 3 seconds ultr techch brand. So how much more potential is there for uh realization improvement and how much cost efficiency measures will be there? That's my first. 40:12 40 minutes, 12 seconds Yeah. Uh, Jashindi. Hi. So, first and foremost, cost improvement programs and again I'll go back to my earlier uh quarter commentaries. 40:23 40 minutes, 23 seconds January March 28, you will see uh all the efforts on KEX converting into 40:30 40 minutes, 30 seconds efficiency improvement. We are still seeing 200 uh per ton of efficiency 40:37 40 minutes, 37 seconds improvement which will come into the kitty of India cements. Now it all depends. Second point I and I'll come to uh your one more aspect that you raised. 40:47 40 minutes, 47 seconds How do we look at the earnings from the volume of India cements? Mind 40:54 40 minutes, 54 seconds you there is 200 rupees of AIDA per ton on India cements volume which is sitting in altate books. the four um 497. 41:04 41 minutes, 4 seconds Yeah. 41:04 41 minutes, 4 seconds 497 uh for the quarter and because of the during the quarter gradually the 41:13 41 minutes, 13 seconds transition was done it's not exactly 200 but about 176 670 is the number 41:21 41 minutes, 21 seconds total is 670. Okay. So we have reached a number of 670 per ton on India cements. 41:26 41 minutes, 26 seconds Now if price increases along with efficiencies uh new capacity addition operating leverage everything will take us beyond 1,000 rupees mark. 41:40 41 minutes, 40 seconds Understood sir. Understood. And u I'll ask a second question. It's a two-part question. So first is how you are looking at you know rural demand. how is 41:48 41 minutes, 48 seconds that it has been in the you know March quarter and in April also how you're looking at rural demand and second is I 41:55 41 minutes, 55 seconds know in this I understand that altit operates you know you will have multiple uh measures to mitigate this cost 42:04 42 minutes, 4 seconds increase but let's say uh without those measures what sort of realization improvement will be required to maintain 42:11 42 minutes, 11 seconds the margins you know these are my two questions so you have asked three or four questions and I'll restrict you to two 42:19 42 minutes, 19 seconds questions. So the last question I will eliminate because that's a very difficult question. Uh I'm difficult to quantify as far as rural demand is concerned. 42:29 42 minutes, 29 seconds Uh we have operated at 90% capacity utilization across our network. 42:38 42 minutes, 38 seconds Some some plants would have operated at 95% and 100% also and averages all across the country we are operating at more than 80%. 42:48 42 minutes, 48 seconds If you marry this point to the fact that our trade mix has not diluted we are 66 42:56 42 minutes, 56 seconds 67 hovering around those numbers only which means my rural demand has continued to 43:04 43 minutes, 4 seconds stay steady. I hope that answers your question and you know too early to talk about the important aspect the you know 43:14 43 minutes, 14 seconds cash flows in rural markets improve with good crops which helps uh the rural demand and too early to say now for the 43:22 43 minutes, 22 seconds quarter how things will pan out in the remaining uh 3 months we will uh remaining two months we will see as for 43:30 43 minutes, 30 seconds your other point you mentioned Um 43:36 43 minutes, 36 seconds it's a moving uh moving target you know costs let's say um bags from 9 rupees to 43:45 43 minutes, 45 seconds 15 rupees a bag that's a 6 rupee delta which has already happened so that much price increase is required similarly 43:53 43 minutes, 53 seconds fuel fuel is a very uh difficult one at least this quarter I don't expect my 43:59 43 minutes, 59 seconds fuel cost to go haywire we were at 1.81 81 or 1.77 sorry 1.77 44:07 44 minutes, 7 seconds uh per kal max it might go to 1.8 so that's the only uh and I'm just 44:15 44 minutes, 15 seconds throwing this number off uh off off the cuff I don't remember exactly where we will land at the biggest impact which 44:23 44 minutes, 23 seconds was there in our eida profile was exchange dollar um 94.85 85 and today it is 94 44:34 44 minutes, 34 seconds sorry 94.2 94.2 two it had come to below 93 also the [clears throat] quarter end reporting what it what is required 44:43 44 minutes, 43 seconds remains to be seen. So um price increases that have already happened will to my in my view uh sustain the 44:53 44 minutes, 53 seconds profitability understood sir I know you don't like answering you know pricey question so I was trying to hide it but thank you so 45:01 45 minutes, 1 second much I I'll join that yeah I also slightly smart ch Thanks. Thank you. 45:10 45 minutes, 10 seconds Thank you ladies and gentlemen. A reminder please restrict to two questions per participant and rejoin the question queue. We take the next question from the line of ret invest. 45:21 45 minutes, 21 seconds Please go ahead. 45:23 45 minutes, 23 seconds Yeah. Hi sir. Congrats for a good set of numbers. I have four questions uh if you allow. Uh so first 45:30 45 minutes, 30 seconds uh okay uh sir 2 A and 2 B. Uh one is India cement. uh we're doing the right 45:36 45 minutes, 36 seconds things. Uh when do we uh see the day when we actually merge it? I understand there are a few legal cases which are there uh but any uh timelines over here. 45:48 45 minutes, 48 seconds Second uh not so related RBC uh it's something which the group has pursued uh any assurance from you that uh balance 45:57 45 minutes, 57 seconds sheet uh won't be touched or it's something which is reinforced. Uh I'll just wait over here. If you allow then I'll go for the other two sir. 46:05 46 minutes, 5 seconds So the second question I think our chairman himself had said alert tech balance sheet in ring fence long ago when um 46:14 46 minutes, 14 seconds aspirations were made about ultr techch supporting idea voda idea I think those were the days I'm going back uh not a uh 46:23 46 minutes, 23 seconds penny has moved from ultra techch balance sheet for any other uh purposes. 46:29 46 minutes, 29 seconds So we remain committed and again as I said unless you missed the point I have 46:36 46 minutes, 36 seconds 10,000 cr of capeex happening every year at least for four or five years going forward that's about 50,000 crores of 46:45 46 minutes, 45 seconds incremental capeex okay so my operating cash flows is meant for meeting my capeex requirements and 46:53 46 minutes, 53 seconds for my shareholders sounds What sir? India summit. Yes sir. India cement. 47:01 47 minutes, 1 second India cement. Yeah. So there are those complicated u uh legal issues which 47:09 47 minutes, 9 seconds which which we have inherited. We uh as I mentioned we don't want to uh take any 47:16 47 minutes, 16 seconds risks with Ultra Techch the main company and our main board once we are able to and we are trying our level best to get 47:24 47 minutes, 24 seconds uh those cases closed because they are donkeys years old cases and there's been no movement nothing. Once we um are 47:34 47 minutes, 34 seconds convinced that these uh there is no risk to us, we could look at the next phase of integration. 47:42 47 minutes, 42 seconds Uh sure sir, I'll just try my luck. Uh sir, third question. RMC we have done very well. Uh what's the end goal over here? Uh I think the number of plants 47:51 47 minutes, 51 seconds revenue growth, revenue growth is more than volume growth. Uh what is correct that we are doing over here? Uh and eventually in plans to monetize this particular business that's on RMC. 48:01 48 minutes, 1 second Second uh sir ESD uh clinker factor you indicated our target is 1.54x uh just wanted to get a sense by what 48:09 48 minutes, 9 seconds year is this and uh how do you see the industries's ratio uh equivalent to 1.54x 48:17 48 minutes, 17 seconds uh going forward uh I understand we are OPC heavy and we have historically maintained that uh whatever we do we 48:24 48 minutes, 24 seconds will have clinker backing at 70%. Is it something which will change going forward or we continue to play on the same uh hypothesis? 48:32 48 minutes, 32 seconds Uh we will always be fully clinkerbacked. Uh second point 1.54 is our target to reach by fiscal 28. 48:40 48 minutes, 40 seconds I don't want to comment about the industry but all I can say is ultra 48:47 48 minutes, 47 seconds techch is a far stronger company in all aspects as compared to uh 48:54 48 minutes, 54 seconds rest of the industry quarter after quarter and there's enough not I don't 49:00 49 minutes have to say enough data but actual data uh which is available if you just sum up the performance of cement industry rest 49:10 49 minutes, 10 seconds of industry put together and ultra techch on one side we have delivered growth higher than the industry a bit 49:18 49 minutes, 18 seconds ton higher than rest of the industry so these uh this doesn't come by you know u magic the all the efforts whether it is 49:27 49 minutes, 27 seconds clinker conversion which means um composite cement which gives me more uh 49:35 49 minutes, 35 seconds profitability RMC or all other aspects of our business which we are doing or which help us uh 49:44 49 minutes, 44 seconds to be far ahead. As for RMC, RMC is an integral part of our business. uh I 49:53 49 minutes, 53 seconds don't see a need or don't see that uh thought 49:59 49 minutes, 59 seconds process as of now to monetize it 50:05 50 minutes, 5 seconds and eventual targeting we sorry what eventual targets on a target in terms of number of plants uh 50:14 50 minutes, 14 seconds say we are 3 3% of the volumes like uh is there a target to go to 6% in three something of that um not really 50:23 50 minutes, 23 seconds not really in terms of percentage but yes it would continue to grow because RMC is the um uh the f future growth 50:32 50 minutes, 32 seconds engine so the obviously the the more and more urbanization is happening I think the RMC is going to be 50:41 50 minutes, 41 seconds I think we are invested for the future ret to to be honest uh to meet the requirements and if you look at our UAE 50:48 50 minutes, 48 seconds business it is zero trade sale It's all sales to RNC uh people so or globally US 50:57 50 minutes, 57 seconds market or anywhere else you see they are globally maximum. 51:02 51 minutes, 2 seconds So um RMC is an integral part of our offering and of our business model. 51:13 51 minutes, 13 seconds Sure. Uh sir I have one more question. This is 10A. Okay. Next one please. Thank you. 51:21 51 minutes, 21 seconds Thanks. 51:23 51 minutes, 23 seconds Thank you. We take the next question from the line of Pinaken from HSBC. Please go ahead. 51:30 51 minutes, 30 seconds Uh thank you very much sir. So congratulations on a great numbers. Uh so one question we keep on getting from investors uh over the last few months is 51:39 51 minutes, 39 seconds that uh the other industries uh industries like steel and uh agree uh and PVC has taken aggressive price hikes 51:48 51 minutes, 48 seconds uh in the face of cost pressures but the cement industry uh has struggled to raise prices uh starting in November the 51:55 51 minutes, 55 seconds price hikes have been relatively muted uh even as demand has been strong. uh what would you attribute the cement's 52:02 52 minutes, 2 seconds relative underperformance whether versus other building material industries in terms of taking price hikes 52:09 52 minutes, 9 seconds fragmentation of the industry is as sweet and small answer pinak that I can 52:15 52 minutes, 15 seconds give you u yeah I think that would uh sum up everything 52:22 52 minutes, 22 seconds um so just taking that point forward to the second question uh assuming sir that the middle east conflict uh stays where 52:29 52 minutes, 29 seconds It is we have petco at 160 dies of oil at $100 a barrel for this remainder year. Uh does this mean that the 52:37 52 minutes, 37 seconds industry would struggle to pass on fully the cost pressures eventually this year? 52:42 52 minutes, 42 seconds No, we are already passing on the if every industry is uh passing on the cost. So are we March you know somebody 52:51 52 minutes, 51 seconds had asked me why prices are not going up in the month of March. March is never a period to increase prices because it's 52:58 52 minutes, 58 seconds it's a volume uh period. Price increases always happen and every industry has its 53:04 53 minutes, 4 seconds own fabric um and own pattern of behavior. July, September monsoons 53:12 53 minutes, 12 seconds impact cement industry only. So uh price increases generally are seen in the first quarter of the financial year not 53:21 53 minutes, 21 seconds in the last quarter of the financial year. 53:24 53 minutes, 24 seconds And besides obviously demand supply is always there if demand is robust uh 53:32 53 minutes, 32 seconds prices um go up and you are there I am also here 53:41 53 minutes, 41 seconds we we will talk and we'll demonstrate I think ultr tech will be 53:49 53 minutes, 49 seconds steps ahead uh in terms of uh performance Got it. Got it. Thank you very much, sir. Thanks, Kak. 53:58 53 minutes, 58 seconds Thank you. We take the next question from the line of Rashi from Cityroup. Please go ahead. 54:05 54 minutes, 5 seconds Thank you. So, just on your point that the power the fuel cost will go from 1.77 to 1.8 in the quarter. This is due to your long-term contracts, right? 54:16 54 minutes, 16 seconds multiple things, long-term contracts, inventory, sourcing, sourcing, changing the fuel mix, multiple things. 54:26 54 minutes, 26 seconds How long your contracts and inventory last? As in I'm just trying to understand that should the situation persist where in pet prices sustain at 54:35 54 minutes, 35 seconds like the 160 or 160 plus, when do you start feeling the impact? 54:40 54 minutes, 40 seconds July, September would be some ripples that you will see uh again which we will be able to manage better than the 54:49 54 minutes, 49 seconds industry because of our uh supply contracts and domestic sources of coal. 54:58 54 minutes, 58 seconds So on these please end the war early Rashi. Why are you wanting it so long? No, I'm just trying to gauge that on your supply 55:06 55 minutes, 6 seconds contracts like how do these work like do you have them going on? I mean it's a continuous rotation and therefore this can persist. 55:14 55 minutes, 14 seconds Yes, it can persist. It will persist. 55:17 55 minutes, 17 seconds Okay. And on the packaging side between the fourth quarter to now what is going to be the delta? 55:24 55 minutes, 24 seconds Fourth quarter to now roughly 9 rupees a bag. 55:29 55 minutes, 29 seconds Yeah. uh fourth quarter to now there was some increase and there was some decrease also so I would say it it 55:37 55 minutes, 37 seconds should remain in the same range not 9 sorry 6 rupees a bag sorry 9 to 15 so it's about 6 rupees a bag 55:45 55 minutes, 45 seconds so essentially the price hikes that the industry has taken should be in your opinion adequate for you to offset this 55:53 55 minutes, 53 seconds yes yes okay and just on the industry demand you mentioned mentioned that the industry 56:00 56 minutes demand likely go at 6 to 7% in this quarter. Yeah. 56:05 56 minutes, 5 seconds Uh full year number is again similar 6.5 6.5 is what my colleagues tell me for 56:14 56 minutes, 14 seconds the full year and your and your volume expect ultra tax volume expectations. So that's my 27 net growth right for 27 56:22 56 minutes, 22 seconds for fiscal 27 your next financial year. Oh, we would target double digit growth. 56:29 56 minutes, 29 seconds Okay, got it. Okay, thank you. Thanks. 56:34 56 minutes, 34 seconds Thank you. We take the next question from the line of Ashish Chan from Aquari. Please go ahead. 56:41 56 minutes, 41 seconds Hi sir, good evening. Uh sir my first question is uh the price hike is sufficient to offset cost in that you 56:48 56 minutes, 48 seconds are factoring uh coal cost also or just packing cost given coal you said will not impact in June or I'm factoring in everything. 57:00 57 minutes Okay. Okay. Okay. So secondly you know uh except for if you take dollar to 100 rupees that I have not fac I'm not 57:08 57 minutes, 8 seconds factoring in which is a no at the end of the quarter and diesel as well which we will know when we will know. 57:16 57 minutes, 16 seconds Yeah that has not been factored in. 57:19 57 minutes, 19 seconds Yeah. Secondly earlier on the call I think you said that there is a marktomarket hit on your forex loan. Can you quantify that? And is it above AIDA? 57:32 57 minutes, 32 seconds What do you mean above Eida? It's part of my uh cost. Yeah, it's within AIDA. 57:37 57 minutes, 37 seconds It's not an extraordinary item, not a finance cost. Correct. Sorry. Yeah, it is hit to AITA. Yeah, hit to AIDA. Can you quantify that? 57:46 57 minutes, 46 seconds About uh 140 30 rupees. Uh 30 rupees a ton. 120 130. Yeah. 57:55 57 minutes, 55 seconds Okay. Okay. Got it. Sir secondly you also said that uh packing cost impact was felt only in March month and if I 58:04 58 minutes, 4 seconds heard you right you said it is 90 crores just for the month did I hear you right yes you did 58:11 58 minutes, 11 seconds so shall we assume that that's the run rate which will continue given there's no relief on packing 58:18 58 minutes, 18 seconds no no because um as Jamari also mentioned prices have stabilized we have 58:24 58 minutes, 24 seconds built volumes our inventories and doing alternate sources. Mind you, nobody uh I 58:33 58 minutes, 33 seconds think would have as many sources like Ultrate Tech uh does. We have almost 150 suppliers across the country 58:41 58 minutes, 41 seconds uh uh supporting us with bags. Um we are doing some other uh things also to 58:49 58 minutes, 49 seconds ensure we are able to source uh bags and maintain uh costs. So, 58:56 58 minutes, 56 seconds um 90 crores was a hit which was a you know the cost of the bag had gone up 59:03 59 minutes, 3 seconds further also beyond 15 rupees then it stabilized to 15 or even I today would be 13 or 14 marginally reduced 59:11 59 minutes, 11 seconds yeah it's marginally reduced so not 90 crores uh uh can cannot be analyzed 59:19 59 minutes, 19 seconds okay most importantly Ashish we have taken care of that with price increases 59:26 59 minutes, 26 seconds Right. Right. Okay. So lastly, you know, just on uh pricing if you can like uh 59:33 59 minutes, 33 seconds shall we uh you know shall shall we think that given the kind of cost impression and all price hike uh is here 59:40 59 minutes, 40 seconds to stay or you are seeing some push back in terms of the channel or demand impact. Are you seeing that kind of concerns on uh 59:48 59 minutes, 48 seconds I I believe it's here to stay because you know this is impacting every cement 59:55 59 minutes, 55 seconds player in the country in every nook and corner right it's not a oneoff it's not uh one region 1:00:03 1 hour, 3 seconds everybody's getting impacted so everybody wants to protect their uh balance sheet and P&L 1:00:10 1 hour, 10 seconds right right sir my second question just on India cement the thousand given some of A bit of India cement is getting 1:00:17 1 hour, 17 seconds booked in ultrare tech standalone. Your 1,000 rupees per ton guidance includes that or that is the what India cement 1:00:25 1 hour, 25 seconds can eventually report you think in spite of the tolling agreement. 1:00:28 1 hour, 28 seconds I am so I'm sorry I missed your question. What did you say? 1:00:33 1 hour, 33 seconds Even some of the addict per ton of India cement is getting booked in ultrare tech standalone because of the tolling arrangement and you know the sales being 1:00:41 1 hour, 41 seconds [clears throat] done by ultra the thousand rupee guidance which you speak for India cement includes that one which is getting 1:00:49 1 hour, 49 seconds booked in ultra tech or it is pure India cement a bit per turn which will come purely through cost savings and all. 1:00:56 1 hour, 56 seconds Yeah. So all inclusive. So you'll see 800 in India cement books and 200 of that coming in ultrare tech books. But 1:01:05 1 hour, 1 minute, 5 seconds again Ashish uh don't get disheartened because when we have committed 300 rupees of cost improvements and already 1:01:14 1 hour, 1 minute, 14 seconds delivered 195 as precise and to the second decimal 1:01:24 1 hour, 1 minute, 24 seconds when I and I'm also saying that we will do more than 300 bucks. So that gives you some indication of no no for 1:01:32 1 hour, 1 minute, 32 seconds with India. Yeah. Yeah. Yeah. So lastly just you know on long-term you know while you you kind of clarified that 10,000 crores will be the capex for 1:01:40 1 hour, 1 minute, 40 seconds ultra tech um you know the cash generation will be much higher than that uh is my assumption at least so how 1:01:48 1 hour, 1 minute, 48 seconds should we think about you just saw what the board did now and I I clarified I think you were not there 1:01:55 1 hour, 1 minute, 55 seconds on the call when I spoke about divided I was I was it's a very uh thought through strategy 1:02:03 1 hour, 2 minutes, 3 seconds by the board enough we have presented enough uh you know position to the board 1:02:10 1 hour, 2 minutes, 10 seconds before they came to the conclusion that yes it's now time to reward the shareholders got it sir that that's very helpful 1:02:18 1 hour, 2 minutes, 18 seconds thank you so much sir thanks and that's thank you thank you we take the next question from the line of Satya Jan from Ambit Capital 1:02:28 1 hour, 2 minutes, 28 seconds please go ahead yeah thank you Mr. Da just a followup question on the dividend uh heartening 1:02:34 1 hour, 2 minutes, 34 seconds to see that um special dividend you have um a lot of confidence uh in the cash flow that's significantly 1:02:42 1 hour, 2 minutes, 42 seconds higher than what the capex you're looking at so can we expect um because this is a special dividend can we expect 1:02:49 1 hour, 2 minutes, 49 seconds like a target on um um dividend payout or I missed part of it in the initial just trying to understand or maybe 1:02:58 1 hour, 2 minutes, 58 seconds increase the dividend rate u and this is also In the context of u some time back when we saw the wire and cable 1:03:05 1 hour, 3 minutes, 5 seconds investment I think you mentioned that any other investment that in the building material industry for the next 5 years ultra techch is not looking at 1:03:14 1 hour, 3 minutes, 14 seconds just seeking a confirmation that you're looking at 10,000 crex and any incremental dividend cash flow. 1:03:21 1 hour, 3 minutes, 21 seconds So 10 10,000 sorry we finished first. 1:03:24 1 hour, 3 minutes, 24 seconds Yeah, there's a 10,000 crx incremental cash flow will go to as a return of capital to shareholders. Um, is that 1:03:32 1 hour, 3 minutes, 32 seconds understanding correct? And should we not look at higher dividend rate or maybe a target of return of capital uh as profit? Uh, 1:03:40 1 hour, 3 minutes, 40 seconds so I have my capeex plan and I as I also mentioned during our commentary that we 1:03:47 1 hour, 3 minutes, 47 seconds are already writing our blueprint beyond 240 million tons. 240 is already stitched. We have close to plus minus 1:03:56 1 hour, 3 minutes, 56 seconds 15,000 crores to be spent plus minus I'm saying not an accurate exact number to be spent so that there will be capex on 1:04:03 1 hour, 4 minutes, 3 seconds cement beyond 240 million tons uh further and that is what I'm talking about 10,000 crores of capeex which will happen on 1:04:12 1 hour, 4 minutes, 12 seconds cement year on year and yet our OCF will uh be large enough to reward the 1:04:20 1 hour, 4 minutes, 20 seconds shareholders Yes, that I understood but um so should we this was a special dividend just trying 1:04:28 1 hour, 4 minutes, 28 seconds to understand given this capex you're looking at and the OCF why not consider a higher dividend rate or maybe commit 1:04:35 1 hour, 4 minutes, 35 seconds to a return uh this is as high it can get 1:04:45 1 hour, 4 minutes, 45 seconds so I don't know what's your uh question so you know I okay whether next year 1:04:52 1 hour, 4 minutes, 52 seconds also it'll be the similar dividend I am not an not the person to call that out 1:04:58 1 hour, 4 minutes, 58 seconds it depends on the OCF for the year it depends on the board's decision once 1:05:05 1 hour, 5 minutes, 5 seconds they look at the annual u uh performance and my guess is the direction is already visible and certainly again I also 1:05:14 1 hour, 5 minutes, 14 seconds called out 2020 we were at 10% of profits In 3 or 4 years, we jumped to 1:05:21 1 hour, 5 minutes, 21 seconds 37% of profits. And that's a leaprog jump. Right now, it's 3x last year's uh dividend, which is which is fantabulous. 1:05:31 1 hour, 5 minutes, 31 seconds So, next [clears throat] year also it could uh remain the same. It could go up or it could come down. If performance is 1:05:38 1 hour, 5 minutes, 38 seconds not good, then it could come down. We'll we will manage our balance sheet. We will not uh overlever the balance sheet. 1:05:49 1 hour, 5 minutes, 49 seconds Um that's hard just um just clarification on that. Um so wire and cable was an investment decision. So apart from that um no other adjacencies 1:05:59 1 hour, 5 minutes, 59 seconds for next years right uh as of now uh I don't have anything 1:06:06 1 hour, 6 minutes, 6 seconds just one last question on um the new plant that you're setting up u the ongoing and the new ones you're looking at. Are you adding any thermal plants 1:06:15 1 hour, 6 minutes, 15 seconds because you have ambitious greens? No, no, no thermal cap, no no thermal capacity. 1:06:21 1 hour, 6 minutes, 21 seconds So we are adding higher level of WHRS tying up renewable and several locations grid is also 1:06:30 1 hour, 6 minutes, 30 seconds available now. So we are not adding any thermal capacity. Okay, thank you so much. Thank you. 1:06:39 1 hour, 6 minutes, 39 seconds Thank you ladies and gentlemen. We take that as the last question and conclude the question and answer session. I now have the conference over to Mr. Atul Daga for his closing comments. 1:06:51 1 hour, 6 minutes, 51 seconds Thank you so much uh everybody for uh joining us and patiently listening to 1:06:57 1 hour, 6 minutes, 57 seconds us. Um for us it has been a very satisfying, rewarding and um 1:07:06 1 hour, 7 minutes, 6 seconds uh you know landmark quarter landmark year generating 3,000 crores of PAT for 1:07:12 1 hour, 7 minutes, 12 seconds the quarter 8,000 crores plus uh of uh overall PAT for the year integration 1:07:21 1 hour, 7 minutes, 21 seconds done volume growth rising and uh a stable 200 million in terms of 1:07:28 1 hour, 7 minutes, 28 seconds capacity and a stable and a growing cash profile that we see for our uh our 1:07:36 1 hour, 7 minutes, 36 seconds company and icing on the cake was uh music to our ears when the board considered uh this dividend of uh 240 1:07:46 1 hour, 7 minutes, 46 seconds uh rupee or 2,400%. So uh I think everything has gone very well for us uh this year and God willing we will 1:07:56 1 hour, 7 minutes, 56 seconds continue to deliver uh stellar performance year after year. Thank you so much. 1:08:03 1 hour, 8 minutes, 3 seconds Thank you on behalf of Ultra Tech Cement Limited. That concludes this conference call. Thank you for joining us.