Thank you, Rio. Good evening, everyone.

On behalf of PhillipCapital India Private Limited, we welcome you to the Q3 and 9 months FY26 call of Star Cement Limited. On the call, we have with us Mr.

Tushar Bhajanka, Deputy Managing Director, and Mr. Manoj Agarwal, Chief Finance Officer at Star Cement Limited.

I would like to mention on behalf of Star Cement Limited and its management that certain statements that may be made or discussed on today's conference call may include forward-looking statements related to future performance and anticipated company developments by its management. Such statements stated on today's call would be based on Star Cement's current management expectations.

These statements are subject to a number of risks, uncertainties, and other important factors which may cause the actual developments and results to differ materially from the statements made. Star Cement Limited and the management of the company assumes no obligation to publicly update or alter these forward-looking statements, whether as a result of new information or future events or otherwise.

I will now hand over the floor to the management of Star Cement for their opening remarks, which will be followed by interactive question and answer session. Thank you, and over to you, Tushar.

Yes.

Hi. Good afternoon, all.

My name is Tushar Bhajanka, and I'm the Deputy MD of Star Cement. I welcome you all to the conference call of FY26 quarter three.

I'd like our CFO Manoj ji to give his remarks regarding the numbers, and then we can start with the Q&A.

Yeah. Hi, friends.

Very good afternoon. I, on behalf of Star Cement Limited, welcome you all to our conference call for discussing our number for Q3 FY26 and 9 months ended December 26-- December 25.

Starting from clinker production, during the quarter ended December 25, we have produced 8.94 lakh ton of clinker as against 6.42 lakh ton same quarter last year. Far as cement production is concerned, we have produced 12.57 lakh ton this quarter as against 10.82 lakh ton same quarter last year.

Now, I will take you through the sales volume. During the quarter, we have sold 12.31 lakh ton of cement and 0.65 lakh ton of clinker like same same quarter.

We have during the quarter, we sold it now. As against 10.61 lakh ton of cement and 0.07 lakh ton of clinker in the same period last year.

This is as far as cement and clinker sale is concerned. As far our geographical distribution is concerned, in northeast, we have sold around 9.36 lakh ton as against 8.37 lakh ton during same quarter last year.

As far as outside northeast is concerned, we have sold 2.95 lakh ton of cement this quarter as against 2.24 lakh ton same quarter last year. In terms of blend mix, it is 18% of OPC and rest is PPC.

These are the quantitative numbers of the quarter. Now, I will take you through the financials.

Total revenue figure this year this quarter is around 880 crore as against 719 crore same period last year. As far as EBITDA figure is concerned, this quarter, we have done a done an EBITDA excluding of exceptional item of 5.52 crore, it is around 207 crore as against 107 crore last year.

PAT is 74 crore as against 9 crore in the same period last year. On the per ton EBITDA front, it is 1600 during this quarter as against 1000 per ton same quarter last year.

This is what our quarterly numbers of the third quarter. The total revenue figure for the nine month ended December 25 is around 2603 crore as against 2111 crore same period last year.

As far as EBITDA figure is concerned, during nine month ended December 25, we have done an EBITDA of around 631 crore as against 321 crore last year. Profit after tax is 243 crore as against 46 crore in the same period last year.

On per ton EBITDA front, it is 1677 during this nine month as against 100 1005 per ton same period last year. These are our quarterly and nine months ended numbers.

Now, I will ask request everyone if you have any questions, then please you can ask the same. I will request Vaibhav to moderate the same whenever required.

Thank you.

Good evening, team. First, congratulations [for the good set of results?]

. I have [unclear]

Hello.

Hi. We can hear you, but if you can be clearer, please.

Okay. Good evening, team.

I have couple of questions. The first question is that there is one unfortunate event happened in the Umrangso district due to a coal mining blast.

Would we have any domino effect on our operations? This is my first question.

I think your question is regarding the Meghalaya mining blast and the situation of illegal coal mining in Meghalaya, right?

Yes. Yes.

Yes.

Yeah. We have no relation to that incident because our coal is not coming from Meghalaya.

It's unfortunate, but we have no information about it.

Okay. Sir, second question is that our volume guidance was 5.4 million tons for this year, and given that we have achieved 21% growth in quarter three, can we see any upward revision to this guidance?

We can't hear you clearly. I think we can't understand the question even.

If it's possible for you to be a bit clearer, then I think it'll be easier for us to answer.

Hello.

Hello. Yeah.

Am I

audible now?

I'm on handset only. Hello.

Yeah. You can just try to repeat the question once.

I'll try to understand that. Sir,

my question was that our earlier volume guidance was around 5.4 million tons, and given that we have achieved 21% growth in quarter three, do we see any upward revision to this guidance?

No, we don't. I think we will be trying to do about that or probably 5.3.

I don't think there's any upward revision on that guidance for quarter four. I think we will be broadly growing at about the same pace in quarter four as well.

Sure, sir. Sir, there has been inflation in freight cost per ton, which is up 14% year on year and 6% sequentially.

Any specific reason for this flare-up? Can we see or can we assume this as a steady-state guidance going ahead?

No, Harsh. Because December quarter and March quarter is the natural cycle, there is a slight increase over the second quarter because second quarter is the not off-season period.

There is a hardly that is 60 ₹70 per ton increase. That is a normal thing.

It happens in every quarter if you compare it from that Q2 visa vis Q3 and then Q3 visa vis Q4. That is normal thing.

Because that transport disruption was there in the middle, maybe October end and November first week. That is why we have to move the materials to rake.

Handling cost has gone up. That is why that was the one-off cost.

Normal 60 ₹70 increase was there as is the cyclical in nature. Every quarter, two to three, it keep on happening.

Okay. Can we assume ₹60 one-off in freight cost for this quarter, and that will reverse in next quarter?

Is it a safer assumption?

Actually, in October, we had a strike. It was a strike in Meghalaya, which restricted the movement of clinker, we had to use rakes to send clinker to our grinding unit.

That had increased our logistics cost, and that is why you see an abnormal hike in our logistics cost compared to last quarter or YoY, which I don't think you would see from quarter four when you compare quarter four to last year's quarter. Sir,

last question. What will be our depreciation guidance for FY27 if you can help me in that number?

Depreciation will remain the same. It was 30 crore a month, 90 crore per quarter.

That will be more or less the same.

Sir, depreciation, I'm asking.

I am talking about depreciation only.

Depreciation right now is about 30 crores per month for us. That will remain the same because we're also commissioning Silchar plant just months.

I think the depreciation will start showcasing itself in the next year. Whatever depreciation should have reduced will be neutralized by the fact that there's another plant coming up, and the depreciation of that plant will also.

Thanks. These were my questions.

Thank you. This was very helpful.

Thank you.

Thank you.

Yeah. Good evening, sir.

Good evening, ji.

Good evening, Tushar ji. Congratulations on good set of numbers.

I had a couple of questions. I'll start with the incentive income that you have booked in this quarter, please.

Yeah. The incentive income that we've booked this quarter is about 33 crores.

If you compare this number to last year same quarter, then last year same quarter was 43 crores. If you compare it to Q2 of FY26, then it was about 56 crores.

Our subsidy income has fallen from a 43 crores YoY to a 33 crores, which is a 28% drop in the subsidy income.

On subsidy, my follow-up question was that at roughly 1.3 million or nearly 13 lakhs of volumes, 12.3 as you said in cement, at this volume run rate, is this the subsidy to continue or because you said Silchar is just about to get commissioned, as I think you just mentioned in a while back, this subsidy amount can go up once the volumes from Silchar start coming up? How should one look at the run rate for the subsidy amount?

Yeah. I think the run rate for the subsidy that we experienced in quarter three is the result of the reduction in GST from 28% to 18%, which of course then reduces the overall subsidy amount which we were getting, so that's why there's a drop.

The question regarding Silchar, when Silchar gets commissioned, first, it will use the input GST from the project, right? That will take at least 7, 8 months to fully utilize.

After we utilize the GST input credit, that's when we will start utilizing the subsidies. We can see the benefit of having Silchar from quarter four onwards next year in term of subsidies.

Understood. Sir, my second question then was on your realization.

Once I exclude the incentives, the cement realizations for us have seemed to gone up sequentially by a little under 2%. My question was because East as a region, I know yours is northeast, but still 25% of the volumes, as I understand, probably we sell it in areas out of northeast, which is largely the eastern region.

If our channel checks were correct, and other companies also indicated the same, that non-trade prices and even trade prices had taken significant hit in the eastern region. I wanted to understand how did we manage a 2% increase in a tough environment.

Congratulations on that, but just wanted to understand how did we manage to get a increase when most of the players are reporting a decline.

The information that I have, from for Bihar and West Bengal, the Q you know YoY, the prices in Bihar have risen a bit for us, but the prices in West Bengal have fallen, right? That is observation.

For us outside northeast, which is basically Bengal and Bihar, has been quite neutral YoY FY26 compared to FY26 Q3 compared to last year Q3. In northeast, we have seen an increase in the price of about ₹20 compared to last year same quarter.

I think our weighted average realization has improved mainly because of northeast. In East, we have been broadly neutral.

If we average out the price increase in Bihar with the price drop in West Bengal is basically neutral. That is how we can see that there is a 2% increase in realization.

Understood. Just to conclude, since our prices or realizations are benefited by the price increase we could take in northeast, are those hikes holding firm so far in January, Feb, or there has been a further improvement?

Any color will be helpful.

Yeah. Fair enough.

I think the prices are holding up in at least northeast from December onwards. We do see that the prices are maintained.

What we exited December month from, the prices have continued to be stable from there. Bihar and West Bengal, I think we have tried to take an attempt of ₹10, but that ₹10 entirely is not necessarily going to show in the quarter four for Bihar and Bengal.

Okay.

No, I understood. For northeast, I was only confirming because very recently, we also saw Dalmia's big kiln getting commissioned.

How will that impact on the regional pricing, if at all? How should one see now with the major capacity coming up?

How should one look at northeast pricing in general for the next, let's say, one year also?

I see the pricing to be stable, right? I don't think there's any problem because of the increase in supply in the pricing.

I do see that the pricing, even after Dalmia's kiln has come to operation, has broadly been stable. I don't see a price problem for the coming year as well.

Thank you, sir. I have more questions.

I'll come back in queue. Thank you.

Sure. Thank you.

Hi, sir. Good afternoon.

Am I audible?

Yes, but if you can just speak a bit loudly, that'll be very helpful.

Sure. Yes.

Am I audible? Now is it better?

Yes.

Yeah. First question on this [unclear]

Rajesh, your voice is not clear,

not able to hear you properly. Sorry.

My question is basically to check with you what is the composition of non-trade and trade in your total volume. Plus, I'd also want to know that what is the non-trade even there's a marginal hike in the price, whether that has been absorbed properly.

What is the view in February because there is a lot of noises which is there that there is going to be 10 to ₹50 further rise in the price? We just want to know your view on that.

Okay. Non-trade in quarter three, we had sold 22% of our overall volume.

This has increased compared to last year same quarter, which was 19%. Our overall non-trade mix has increased from 19% to 22% over this one year.

Your second question was regarding the price hike, right?

Yeah.

I have not heard any news of price hike as of now. I don't think we have any plans of taking a price hike in northeast, but to maintain the current prices which have already been increased.

I don't think there is a hike happening of 10 to ₹15 in northeast, at least.

Another thing which I want to know is what is the price differential with north or central with northeast in terms of per bag?

I can tell you the per-bag cost in northeast, but I do not know what is the price in central and west and east. We know in central and north because we're not present there.

The per-bag price in northeast is about four ₹53, but you'll have to probably verify the prices in north and central as well.

Thank you.

Thank you.

Yeah. Am I audible now?

Yeah. Yeah.

Yeah. Sir, I was alluding to this incident which has happened in northeast which you mentioned in your earlier request.

Overall, northeast has a dynamic in terms of coal supply. Do you see this regular and stringent regulation of which would be taken by government and courts any implications on coal availability in northeast region?

Are you talking about coal availability in northeast and

Yeah. Northeast coal availability for and overall coal prices going up?

Because of what?

Because of this rat-hole mining crackdown on the illegal mining.

No, I don't think our coal supply is really linked to the Meghalaya illegal coal, right? I don't think there will be a big impact of that.

Most of our coal is locked in the form of FSA from Coal India, right? The others are spot contracts that we take from Coal India, and a little bit of biomass, right?

I don't think we are really impacted by that at all. Okay.

What we understand earlier that good chunk of coal moves out of Meghalaya into India in parts

[unclear] Rajesh, I'm not able to clearly hear your question, I'm not able to answer.

Is it better now?

It is better now, but then it goes in the middle. You can usually

try to ask a question, and then you can figure out.

Sure, sir. Theek

hai. This is one.

Second, also on the freight cost, we see that there has been a upward revision or rationalization on the upward side on Meghalaya truckers freight cost. What sort of impact this would have on your numbers in subsequent quarters?

I don't think the freight cost has really been revised for Meghalaya truckers as such, and I don't see that to be having a material impact on the freight cost going forward. I think the reason why the freight had increased in quarter three is mainly because of the strike which had happened in October, right, which had led to a L1 deviation.

That is why the freight cost in October had increased, and that's what you see in the results. I don't see that you'll see a material impact of that going forward in quarter four.

Okay.

What is [unclear]

We really can't hear you. Now you're fully cracking.

Yeah. No issue, sir.

I'll come back in queue.

Hi, Tushar, and thanks for the opportunity. Sir, can you please give some insight to our next phase of expansion because we were looking to expand capacities or enter the markets of central and north market?

Can you please briefly touch upon that?

Yes. No, thanks for the question.

We are actually firm on our plan to enter Rajasthan. We have gotten mines in Nimbol next to Jodhpur district.

We have been securing land there. We plan to apply for our EC and get our EC by September, October and then start construction of about 3 million tons of clinker along with 3 million tons of grinding.

Subsequently, put 2 million tons of grinding in Haryana, which will be fed by the clinker plant in Nimbol. That is our next plan, which is to enter Rajasthan.

Okay. Apart from that, are we looking into the central region as well, or so far sticking only to the north market?

We're sticking to north market because we believe that, if you focus on one market, which is north, and it's a it's a quite a big market, right? I think we will be able to probably position ourselves better in terms of brand and also focus in, deeper penetration of the market.

That is the first phase of expansion in north that we plan, which we plan to start executing from quarter three of this year onwards, of next year onwards. End of basically.

Then, I think, yeah, so that is the plan. Besides this, we plan to put up a 2 million ton grinding unit in Bihar, which I think the timelines of which we can discuss in the next call because we are in in the phase of acquiring land for that.

Our plan, for the next 2 3 years is basically to put up a 5 million ton grinding backed by clinker in north and about 2 million tons of grinding in Bihar. Along with this, we have also applied for, the EC in Umrangso in Assam for another clinker plant, which we, again, will get from September this year.

Then we can also start laying the foundation and doing the basic civil work for our next clinker plant in Assam.

Okay. Is it fair to assume that by Q3 of FY27 or Q4 of this CY26, we would be having the orders placed for all the capacities which we have talked about?

Yes, I think, yeah, by Q3 of FY27, we will be in a position where we have ordered the machineries, and we've also started some work on ground in building up the plant. I think machines should be probably in Q2, Q3.

Around that time, we should be placing orders for machines as well. We are now a bit clearer about our plans of Rajasthan.

Great. Lastly, what percentage of land we have acquired for Rajasthan and Haryana units?

In Rajasthan unit, we have broadly done a sale agreement right now, and the entire land will be, probably transferred to us in the coming months, month and a half. We've already applied for the EC on the land that we have gotten a sale agreement.

For Haryana, we have identified the plot that we are looking at, and we will start the start acquiring the land. The land in Haryana is a bit aggregated, I don't think once you've decided to buy the land, then I don't think it's going to take much time.

The EC process is basically running parallel to the land acquisition process, and that's how we are progressing. That's how we're sure by September, October this year, we will be able to start something on ground.

What would be the mode of financing? How much debt equity we would be looking at, or the equity raised through the QIP or that source of funding?

Ideally, we'd want to keep our debt-equity ratio less than 1.5 times the EBITDA. Sorry, that debt-to-EBITDA ratio to be less than 1.5 times EBITDA.

I think that is what we're targeting. Then we will make sure that whenever we are reaching that threshold or before that, we will do our QIP to fill in the gap, right?

That is something that we will also share in our investor presentation, which is coming.

Okay. Great.

Thanks for answering the questions.

No, thank you.

Yes, sir. Good afternoon, and congratulation on good set of numbers.

Sir, how much CapEx we have incurred in first 9 months, and how much we are going to incur in fourth quarter and in FY27?

Okay. YTD, we have till now incurred about 431 crores of CapEx.

In quarter four, we plan to incur about 150 crores of CapEx.

Okay. In sir, FY27?

FY27, we'll have to probably plan it a bit and get back, because we're still figuring out our plans in Rajasthan when we start our construction. Accordingly, we'll have to revise the numbers and probably get back to you on that.

Okay. Sir, with regard to premium cement, what was the share of premium cement out of the trade sales during this quarter?

We sold about 17.1% of our trade sales was premium sales. This number has increased from 13.1 last year.

Sorry, 12 last year. It has gone from 12% to 17.1% in that 1 year.

Okay. That should have also helped you in getting more realization because the percentage has been improved from 13% to 18%.

Yeah, 12% to 17%, yes.

Yeah. Okay.

Sir, what is the current status of AAC block? How much revenue we have generated this quarter?

Because it got commissioned last quarter.

Yes, we have sold 61.5 thousand CBM of AAC. The corresponding revenue is about 25 crores.

In quarter three, we have generated about 13 crores from AAC, which is still in ramp up. I think the plant is going to take some time to stabilize.

We have utilized the plant at about 45% utilization in the second quarter of its commissioning.

Okay. Sir, what could be the maximum revenue that we can generate from AAC block when it gets into full utilization?

I think we can generate a revenue of about 90 to 100 crores if we utilize it fully.

Okay. Sir, a couple of data points.

Lead distance during the quarter?

The lead distance was 212.

It has come down. It was around 230 km last time, 220 km, I think.

It was 220 km, and now it's come down to 212, yes.

Sir, fuel mix this quarter?

Fuel mix, 78.8% was from FSA. Okay.

About 15% was from biomass, and another 5% was from spot.

Sir, per kcal cost was?

1.2.

1.2. Sir.

That's all from my side, and all the best.

Thank you.

Hi. Thank you, sir.

Sir, just a recheck in terms of the total CapEx for Bihar, Rajasthan, and 3 million ton clinker at Umrangso with a 2 million ton grinding in Jorhat.

I'm sorry. Can you please repeat that?

I'm saying the total CapEx, if you can split Bihar last time you said 500 crore, Rajasthan because now it seems of 5 million ton. Last time we said 2,300 to 2,500 odd crore.

For Umrangso, 3 million ton clinker and 2 million ton grinding at Jorhat, what would be the total CapEx?

Yeah. Right now, the plan that we have in mind is to, in the next 3 years or 4 years, our plan is to put up Bihar grinding unit in the next 2 years, Nimbol and and Haryana plants, Nimbol is in Rajasthan, the clinker plant in Nimbol and grinding unit in Haryana.

Sequentially start working on our grinding unit in or our clinker plant in Umrangso. The overall CapEx for these four projects is about 4,800 crores.

4,800. Broadly, this all should be commissioning in 1H FY29 or second half of FY29?

I think towards the second half of FY29 or beginning of FY30, these all plants should be commissioning. Of course, they all will not commission together.

Some will commission before. Probably Umrangso may commission about FY29.

Okay. Umrangso will commission in FY29.

That also you said it would be in the second half. Almost everything will be in a 3 or 6 months everything will be commissioned in FY29.

FY29 probably. Yeah.

I think exact timelines, we will probably putting it in the presentation. I think it'll just be a bit clearer for everyone.

Of course, the grinding units take less time to commission. In Nimbol, we are at a decent position.

I think in September, we'll start construction. The Nimbol, Rajasthan plant will start sooner than the Umrangso plant.

Okay.

Got it. The Rajasthan plant is also dependent on the QIP, or we will start, and as you said, once the net debt-EBITDA is reaching to 1.5 times, and we will then do the QIP of 1,500 odd crore that we have talked last time?

I think we are going ahead with our plans irrespective. Whenever we do get the right time to do the QIP or rights issue or any other instrument, we will do it.

We're not stopping any plans for the fundraise.

Okay. Broadly, if one has to split this 4,800 crore into FY27, '28, '29, is it fair that FY27 would be 1,000 odd crore, and FY28 would be a 2,000 to 2,500 crore, and FY29 would be the balance?

That's the way one can look at?

I think we'll have to really, we'll also have to plan it on a piece of paper, and then share it. I don't think I can just say it like that.

Okay. Got it.

Sir, in terms of the volume, as you highlighted that in the fourth quarter also we will see the similar kind of a run rate in terms of the growth. For FY27 and '28, how one can look at, because now all this extra new capacity will be coming in FY29, ideally the volume should be coming in FY30 in a full way.

How one can look at the volume for at least '27, '28?

The coming year, I think the volume growth would be similar to the volume growth that we experienced in FY26. I don't see the FY27 to be very different to FY26.

The volume growth of '28 would be hard to predict right now.

Okay. Got it.

Then obviously, as you are saying that the prices are kind of stable, profitability should be similar what we are right now having a 650 1650 to 1700.

Yes, yes. It should be broadly maintained.

Yeah. Lastly, sir, all put together AAC block and other non-cement revenue till now in FY26 9 months, how much we would have done, and how much would be the EBITDA margin on that?

For next year, how one can look at that?

From non-cement revenue

It is around 25 crore. Okay.

It is expected to be around 45 50 crore this year. This year because of first-year depreciation everything, because the first year of operation.

Maybe we have no profit, no loss kind of thing this year. Next year onwards, we are hopeful that 20% EBITDA margin should be minimum there from that business.

In terms of the revenue, this year you are saying that a total 45 crore that we 75

to 100 crore next year.

Yeah. What we expect is that 45 crores this year would be coming from the non-cement businesses, and next year we expect about 100 crores coming from this business.

Okay. Got it.

The current kcal cost 1.2, that should be stable for next one or two quarters. I hope we should be having a two-three 3-4 months inventory.

We have about 2.8 lakh tons of coal, so that is good enough for at least 4 months. That is broadly at the same rate as 1.2, I think we should be fine.

Sir, on green, the 50 MW solar that we were looking at in Assam, when it is going to start?

The 50 MW that we're looking at Assam, we are still in discussion. I think with some regulatory change, and so we may consider, because now we're thinking of Rajasthan, and the generation of power in Rajasthan is higher.

We may decide to put up in Rajasthan. We'll have to probably get back to you in the next investor call on that.

Okay. Thank you, and all the best congratulations on good set of numbers for this quarter.

Thank you. Thank you.

Yeah. Thank you for the follow-up opportunity.

Just a couple of clarifications. In terms of your CapEx priorities, is it fair to assume that number one will be the Bihar grinding unit followed by a greenfield project in Nimbol and thereafter Umrangso?

Is that the correct sequence?

In terms of priority, it's a good question. I also haven't put it like that, but I think, in terms of priority, I think it really is to move all the four projects that I mentioned together as fast as we can because they're at different stages of completion, right?

From a EC perspective and from a ground-breaking perspective. The idea is to definitely do the Bihar project and Nimbol project.

The Nimbol Rajasthan project will of course give us a growth in revenue and create a diversification platform in terms of the EBITDAs and the revenue. The Bihar project would help us utilize our northeast capacities better.

From that perspective, these two things are in priority. At the same time, Umrangso is not an easy terrain to work, we just want to make sure that we start early so that we are able to commission the plant by the time we need the clinker, which we expect to be about FY29.

I think they all are equally important, and they all have different aspects of business which is solving for us. Rajasthan is more from a diversification story, and Umrangso is more from just making sure that we're able to grow in our home market.

Great. Just to have clarification, Nimbol is a 3 million ton clinker unit, correct?

And 5 million ton grinding cement?

Yes. Out

of this 3 million ton clinker, clinker of course is at Nimbol, but a grinding unit will be at Nimbol only, 3 million ton, and Haryana is 2 million ton, which is what we are planning. Is that breakup broadly correct?

Yeah.

For this five. Right.

For this entire 5 million ton plant, what is the broad CapEx that we have finalized so far, as in how should one look at that cost, or you would rather give it at a later stage?

I think the cost that we have, and that may change, and so I think the broad cost that we have taken out is about 2,500, 2,400 to 2,500 for the clinker plant and the integrated grinding unit along with the grinding unit in Haryana. That estimate may be a bit premature and may have a 10% deviation up or down.

With that flexibility, you can take that number.

Yeah. No, and the reason I'm asking is because at 2,500, ballpark at a 5 million ton, that cost comes to more like $55 for a greenfield project.

Peers have not really delivered it at such low cost, and that's my question. If 2,500 is a realistic number, or it is more closer to 3,000 crore is what I wanted to get a sense of.

I feel that this number is realistic, because we have just put up a kiln of about that size right now, and we were able to put it up in about 1,200 crores. Even if I take the greenfield cost, and even if I take the cost of integrated grinding unit, I think we should be able to manage in that much.

I'll again do the working, and then probably can give you a further clarification in the next call.

Sure. From a timeline point of view, it's Q3 this year, let's say by December of '26, we place all the orders.

We should be targeting commissioning, you said, in 1 and 1/2 year thereafter. Is that what you said?

By end of FY28 or early FY29, how should one look at it?

I think we will start a commissioning by quarter three of this year of the, sorry, of the next year, which is December around of this calendar year. I think from there, it will take about 18 to 22 months.

If we calculate, then that will be basically around September of FY28. Sorry, of of '28, the year '28, yeah.

That is what we are to be, thinking, because it will take at least 18 months from when we start the groundbreaking.

Understood. My last question, sir.

For the full year this year, the volume guidance in the first question that you answered, did you say our volume guidance for this year remains intact at 5.3 million tons for '26?

Yes. I think about 5.3 million tons remains intact.

It also has clinker sale In that. Yeah.

Okay.

The reason why I asked is because 5. 3 will imply flat volumes year on year in Q4.

That's where I was checking. Is is are we saying that Q4 will see flattish kind of volumes year on year, or could see some

No. I think there is some confusion because I think the number that we're talking about probably, I'll have to get some clarity about it.

Because I think they've also included the clinker sales volume in it, right? What I can say about Q4 is that we'll see a 8% to 12% growth in Q4 as well YoY.

In terms of cement volumes, the cement volume will be going at about 8% to 10% in Q4 as well. The right estimate of Q4 in terms of the absolute number for the entire year, I will probably be able to write that down in the presentation that we put up online.

We'll certainly look forward to your presentation, sir, and thank you for answering all the questions. Thank you.

Thank you.

Yes, sir. My question pertains to Silchar unit.

Since Silchar unit will get commissioned in this quarter, Silchar is basically also nearest to Bangladesh also. We are also thinking of exporting cement to Bangladesh?

No, right now we are not considering that because I think the transportation to Bangladesh is a bit tricky. There's no direct road which connects Bangladesh and Silchar side.

Normally, in rainy season, barges are used to transport. That is also not perennial, the rivers.

We are not right now planning to sell in Bangladesh from Silchar. Also, Bangladesh has a custom duty on cement, which is almost ₹2,000 per ton of custom.

There's no economic sense of sending cement to Bangladesh anyway.

Okay. Sir, what was the capacity utilization of our Siliguri plant this quarter?

This quarter, our utilization of ASU was about 60 percent. I think we'll be able to utilize our plant in Q4 at about 70

to 75%. Sir.

That's all from my side. Thanks a lot.

Thank you.

Hi. Thank you for this opportunity.

What would be the timeline for Silchar and Jorhat, the revised one?

The timeline for Silchar is this month. I think, by end of this month, we will be commissioning our plant.

Between 20th to 27th is when we think of commissioning the plant. I think we have deferred Jorhat, and we have preferred to put in Bihar rather than Jorhat.

Jorhat may come along with the clinker plant in Umrangso.

As of now, Jorhat remains replaced by Bihar?

Yeah.

There is no GU now in Jorhat, right?

No. There will be a GU, which will come along with the Umrangso plant.

Not right now. It will take about 3 years, 3 and 1/2 years, because right now the future capacity is coming up, I think we have sufficient capacity in northeast to serve northeast market.

Okay. In that case, we will have 9 9.6 long capacity in northeast on the GU side?

Including GU, that is a total cement capacity. Is that a fair assumption?

We'll be 9.7: two in Siliguri

two

in Siliguri and 7.7 in northeast.

Correct. This will be backed by about 6.1 million ton of clinker?

Yeah.

Total of Yeah.

That is broadly clinker backed, this capacity.

Okay. Then the Bihar GU, we will be backing by the existing clinker only, or it will only come after the Umrangso plant?

We will be putting up the Bihar plant before Umrangso also because it will take lesser time than Umrangso, and it will help us utilize the clinker of the existing units faster. With Umrangso, we will be putting the Jorhat plant.

Okay. Till that time, Bihar will be fed by Meghalaya clinker unit.

Is that a fair assumption?

Yes. That will also help us utilize it faster.

Okay. That is it from my side.

Thank you.

Yeah. Thank you.

Hi, sir. Sir, this clinker sell, whatever we are selling 5%, 6% of the total volume, this will continue for even next year also?

I think we do expect that clinker that whatever we sold in quarter three, that kind of a volume to be sold every quarter.

Okay. Currently, if I look at 9 months, our CC ratio broadly is 1.32 versus normally we have closer to 1.5.

It is in the fourth quarter we will catch up, and on a full-year basis, the broadly 1.5 CC ratio that remains?

I think right now clinker ratio is about 67.5 % which is, if I convert in the weight, 1 divided by 67.5

1.48.

It's coming to be about 1.48 only.

Okay. Got it.

It's not 1.32.

Okay. In fourth quarter, broadly if we have to look at northeast versus East for us in terms of profitability, the East would be a 5 ₹600.

That the number which we used to have the similar still is there?

I think the EBITDA per ton that we earn in East is about 600 to ₹700. I think, with some price betterment, I think it can reach to about ₹800.

Got it. Post the Rajasthan expansion, so that is a difficult to predict right now, but still directionally, till what level are we comfortable?

Obviously, because Rajasthan, once if the volume will start, the EBITDA per ton definitely will not be as like as northeast, but roughly are we looking at kind of a 800, 900? That's the kind of a profitability per ton that we are looking for the Rajasthan?

I think our modeling in the steady state expects it to be more than 1,000 1,000 because it also depends on where you put up your plants and how efficient your plants are. Our expectation in the long run is about 1,000, and a stable one.

Initially, of course, the EBITDAs will be low because we'll be ramping up and spending on branding as well. The EBITDA per ton in Rajasthan will be lower because of that.

There also we will be having a incentive in Rajasthan also?

Yes, we will be having an incentive, a capital subsidy incentive, as per the policy of the Rajasthan government.

Which would be roughly on a annual basis or per ton any broad idea?

It is about 20% of the CapEx as a capital subsidy. It's not a GST, but it's a capital subsidy, yeah.

Okay. Got it, sir.

Thank you, and all the best.

Thank you.

Hi, sir. Thanks for the opportunity.

Sir, just wanted to sort of get your views on the upcoming capacity expansion in north. I was just looking at the numbers.

If we add in your 5 MTPA expansion as well, I'm looking at almost a 50 55 MTPA expansion in just the north region. Are we sort of going to see a very aggressive supply situation in that geography?

If yes, how are we going to counter the incumbents already who have a legacy system there? That's sort of just wanted to get your broad thoughts on that, sir.

I think the northern markets, I think, over time, have basically broadly maintained a decent utilization, right? I understand that they are two, three companies like JSW, Dalmia, and other companies which are entering north now.

That may lead to excess capacity. I think north has generally had more decorum than other areas in the mainland India, right?

I think and our strategy is quite simple. We're not entering with a very large capacity, actually.

We have an integrated plant of 3 million, and shortly after we commission that, we'll be commissioning a grinding unit in Haryana, right? The capacity that we enter is not huge, and what we would target to do is to maintain and to create a brand like how we have created our brand in northeast, and we sell higher than any other brand in northeast, despite being the highest volume player in northeast.

We would want the same kind of a branding and patience in terms of marketing in north as well. That is how we plan to go about it.

Just make sure that we are able to position ourselves through branding and technical services and other things at a good price band compared to our competitors.

Understood, sir. We definitely will not be compromising our margins just to sell volumes in that geography, if that understanding is correct, right, sir?

Yes. I think especially if you're entering a new area, it is more important.

It is of course tempting to sell more volumes, but it comes at the cost of putting yourself at a lower price band, right? We'll have to make sure and have the patience and the will power to create a brand in the long run and discounting and selling and just trying to get done with the volume is not the answer to that.

Got it, sir. Just one last question if I can squeeze in.

Sir, what is the cost of our limestone in the northern region, sir? Are they legacy mines?

Are they newer mines?

I think we have an auction mine. The average premium on the auction mine is about 57%.

This is for Nimbol. We are also looking at legacy mines.

We are confident that we'll probably be able to lock one or two legacy mines. If we do that, then of course our cost for the initial 10 years will be 0% option price because they are legacy mines.

I think that is what we're trying to do. I think, by the next call, I'll have better clarity and probably we would have locked the mine, and then I think I can talk more about it.

Great, sir. That would be good to know.

Thanks a lot for your time, and best of luck. Thank you.

Thank you.

Yeah. Thank you, Tushar.

I just had a couple of questions. First thing, were there any one-offs in the cost apart from the freight in the Q3?

Yeah. Pardon?

What you are saying, Vaibhav?

Sir, were there any one-offs in the cost items in Q3 apart from

5 CR donation is there. Okay.

That is a one-off cost is there.

Okay. This donation is to any political party or like what?

That's Hello. It's a political donation, yes.

Okay. Apart from that, there is no other one-off, right?

No, no. No.

Okay. Sir, second thing was I just wanted to know that Tushar ji mentioned on the call about a ₹1,000 steady-state EBITDA guidance in north operations.

Tushar ji, when I met you, we had discussed that you had kind of highlighted that 1300 to 1500 would be your sustainable EBITDA even after your expansions. That is your forecast then.

This ₹1,000, are you mentioning as on date, or you are mentioning as once you enter slightly confused all that, wanted to clarify that. Is

the question that am I expecting 1300 or 1,000 in the long run?

Okay.

Yeah. It really depends, I think, the question which was asked earlier if we're operating legacy mines versus option mines.

I think the answer just really depends on all those things. I think, in the next call, we'll be in a better position to answer.

Ideally, in a steady state, I think all the cement companies should be earning 1,200 given the investments that we make. I think, for our case, depending on the legacy mine, we'll be able to better explain what we are expecting in the next call.

Just want to clarify, your earlier guidance which when I interviewed you and which you gave of 1300 to 1500 EBITDA per ton on a sustainable basis for Star Cement as a whole, that holds on, right? That is your expectation as of now, just wanted to confirm that.

Yeah. If you're talking about Rajasthan or are we talking about northeast?

No, overall. Overall,

I'm saying Star Cement as a whole. The question was asked to you was what was the dilution you were expecting on profitability once you enter new markets.

That time you answered that 1300 to

1500. I think, going in the future, I think we do expect 1300 to 1400 to be the range for Star Cement.

Specifically for north, I thought you're asking specifically for north.

No. I was asking after the north test, if you are saying north is 1,000, 1,100 rupees EBITDA per ton, broadly your guidance of 1300, 1500 holds on or that is kind of deep now?

Holds on broadly.

Okay. That's what my question was.

Thanks a lot, Tushar, and on behalf of PhillipCapital India Private Limited, I like to thank the management for the call, and also many thanks for participants for joining the call. Thank you very much, sir.

You may now conclude the call.

Thank you.

Thank you.