Thank you, Iqra. Good evening and a warm welcome to everyone.

On behalf of Antique Stock Broking, we welcome you all to the third quarter FY26 earnings call of Ambuja Cements Limited. I will now hand over the call to Mr.

Deepak Balwani, Head of Investor Relations. Thanks and over to you, sir.

Thank you. On behalf of Ambuja Cements, I'm pleased to welcome all the participants to our Q3 FY26 earnings call.

Ambuja Cements Limited is part of the diversified Adani portfolio and the world's ninth-largest building material solutions company. Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations.

These are not guarantees of future performance and may involve unforeseen risks and uncertainty. We are pleased to have with us on the call Mr.

Vinod Bahety, Chief Executive Officer, and Mr. Rohit Soni, Chief Financial Officer.

Now I invite Mr. Vinod Bahety to provide his valuable insights on the quarterly performance.

Thank you, Deepak. Good evening and a warm welcome to everyone joining us for the third quarter results of FY26.

This has been a decisive and strategically important quarter for Ambuja Cement. We delivered industry-leading performance growing our volumes at 2 times the industry average.

This was supported by stronger market execution, improved availability across both trade and non-trade channels, and higher base capacity utilization. Our actions on premiumization and mix improvement helped us capture significantly higher market share, better realizations than the peers, and thereby reinforcing our leadership position.

The operating environment remains favorable throughout the quarter. Cement demand growth was driven by infrastructure activity, sustained housing demand, and a recovery in the rural construction after a favorable monsoon.

A defining development this quarter has been the proposed amalgamation of ACC and Orient Cement with Ambuja Cements. This marks the beginning of a unified one cement platform that will accelerate our growth trajectory, support EBITDA expansion, strengthen operational excellence leverage, improve logistics density, and enhance capital efficiency.

We see this driving long-term value creation over the next 24 to 36 months. Regulatory approvals are progressing quite well.

We are seeing an early operational success across the acquired assets. The capacity utilization for the quarter improved meaningfully for the acquired assets at 58%, improvement of 21% compared to the previous, to the last year YoY, which was at 37%.

Utilization had further improved, the exit of December, by the way, is 65%, although my quarter average is 58% for the acquired assets, but the exit is at 65%, and we are confident and looking forward to achieve almost 80% on this acquired assets. These outcomes reflect disciplined execution of our integration and optimization playbook.

Pricing has entered January on firmer ground as we are seeing a similar uptick in price in January along with double-digit volume growth. Southern markets are leading increases in the range of ₹15 to ₹20 for non-trade, while the northern market has witnessed price increase in the range of ₹5 to ₹10 in non-trade range.

Importantly, these hikes have held, making a departure from the rollback-prone patterns of the previous years. With a comprehensive focus on value and market share, realizations improved ₹5 per bag as compared to last year.

Trade pricing continues to outperform non-trade with gaps widening up to ₹31 per bag as non-trade remains more sensitive to the infra-led offtake and seasonal disruptions. On capacity, we commissioned a 2.4 million tonnes of Marwar grinding unit ahead of the schedule.

With this addition, our total capacity now stands at 109 million tonnes per annum. We were looking earlier at 120 million tonnes in FY26.

2 million tonnes of Sindri and Jamul has also been included here in addition to our 118 million tonnes of target. The Warsaliganj commissioning is now scheduled for first quarter of '27, there is a delay of three months in Warsaliganj, such that now we will be exiting March at 115 million tonnes as compared to earlier 118.

Alongside this, we are unlocking an additional 15 million tonnes of debottlenecking capacity at lower capex cost. These initiatives will provide a clear and capital-efficient pathway to reach our aim of hitting 155 million tonnes by March of '28, which will position us strongly for sustained growth.

Premiumization continues to be a powerful value driver for us. Premium cement volumes accounted for 35% of the trade sales, and in absolute term, it increased 31% compared to last year, among the highest in the industry.

Ambuja Kawach and ACC Gold, they remain our blockbuster premium cement products under the super-premium segment. GST reduction only has helped in terms of shifting of the consumer preference towards the higher quality, performance-driven products.

Cost leadership remains our key strategic advantage, although I'm sure you you have seen that in this quarter my costs have gone up and you you would be [feen?] to know about the reasons, but I can only give in more details when I come to the cost part, but we have delivered visible YoY reductions across the value chain.

Kiln fuel costs declined by 6%, power cost reduced 15%, green power share increased by 15% to now 37%, and logistics cost reduced to reduced by 1%. Our narrative on reaching ₹3,650 per tonne of cost by March '28 continues.

Little bit on more on the cost so that while our December quarter comes at ₹4,500 a tonne as compared to our September quarter, it is almost ₹250 hike. In the right in the beginning, I can highlight that these are like specific one-time expenses because my exit of December is below 4,000, December month, so that this ₹4,500, I would say, is an aberration of one of these initiatives, for example, the brand transition, the B2B and the B2C segment.

As you know that we have introduced and more larger amplification of Adani cement brand. We have also done a substantial overhauling of the assets of Sanghi, Penna, which has seen a significant capacity improvement.

I must also tell you that Sanghi is now operating in the December month exit is almost at for clinker 80% and for cement 65%. Penna is also showing a very healthy improvement in the capacity utilization.

There were one or two plants which had some unfortunate equipments failures, and one of them was Tandur in for the Penna and Jamul for ACC, but these are like under now going to be operational very soon. These are like expenses which have come in terms of the quarter, but this will not be there for the March quarter.

Therefore, exit of December already, as I said, we are below ₹4,000 a tonne. Coming back to my commentary, our renewable energy footprint now stands at almost 900 megawatt, strengthening both sustainability and cost resilience.

The real benefits of this 900 megawatt, friends, will come in coming quarters because many of this power as of now I'm selling in the market because it will require certain approvals in terms of consumption at my sites, but that will happen very soon, and therefore the benefit will significantly come in the coming quarters. The good thing is these assets are operational and I'm able to sell this power in the market.

We expect to reach 1,122 megawatt by FY27, providing this long-term insulation in terms of the energy price volatility. This green power, when I consume captively, as I said, it will significantly improve my overall power cost per unit.

As of now, I can tell you it is almost closer to ₹6.1 per unit. When I look at the competition, they have a advantage over there, but that advantage will sooner come to Adani Cement once this is fully operational and we are able to consume it.

Digital intelligence continues to be central to our operating model. We have launched CINOC, Cement Intelligence Network Operating Center, which is AI-enabled central control system.

Lots of applications, user interfaces, simplified apps, and smart tabs have been given to our people, and I strongly believe that this will be a game changer and will bring substantial efficiency and productivity with power of analytics to the cement business. Both IT and OT will have a significant improvement.

Our ecosystem continues to deepen our execution advantage. We expanded engagement across the priority industry platforms.

You are all aware of our engagement with CREDAI, BAI, NAREDCO, Institute of Town Planning, amongst many. These are like first-of-its-kind institutional partnerships which we have initiated in the last nine months, and they are giving us significant results.

On-ground programs and brand activations continue to build trust in our product quality and services. Future X, which now engages almost 750-plus institutions, some of you would know that we launched this program on 15th of September, which is turned out to be the largest industry academia initiative, almost now it encompasses 1.3 million students, which will give us a significant advantage to to bring the synergies of academia with the industry, apart from getting the mindshare and market share.

In terms of the consolidated financial performance, we delivered a strong performance this quarter supported by higher volumes, improved realizations, and discipline on the cost, although, as I said, the December month has been a significant improvement and which will percolate down to March quarter as well. We reported our highest-ever quarterly sales volume at almost 18.9 million tonnes, up 17%, and the market share improved to 16.6%.

By the way, we have been giving a consistent double-digit volume growth for the last nine months. Even if you look at my nine months volume growth, it is in the range of almost 19%.

On a normalized basis, we achieved the highest quarterly revenue at ₹10,277 crores in the third series of the year, Q3, up 20%, supported by ₹5 per bag improvement in realizations. I think you will find some of the industry players have seen a decline in the prices YoY, but our focus on market, our focus on premium cement, our focus on blended cement, and you will see more accelerated focus, it is now giving us a delta improvement in the realization, which in this case has improved by ₹5 per bag YoY.

PAT for the quarter was ₹378 crores, a jump of 258%. Again, for the sake of clarification, we have put a entire table on the one-off exceptional items so that PAT is apple-to-apple comparable.

Unlike if you go with the reported numbers, you will find a steep fall, but that is incorrect because there are exceptional items sitting in terms of the income tax refunds and one-time of the items or the excise duty drawback for Himachal, which I clarified in my IR deck also, in my reported numbers also, in press release. That is for apple-to-apple comparison, PAT is up 258%.

Operating EBITDA was ₹1,353 crores, up 53%, and again I've given a clarification that the Himachal excise drawback is a one-off item, last time also you all had suggested the same thing, ₹635-odd crores, when you remove that, my EBITDA is up 53% YoY, and the per metric tonne EBITDA is closer to ₹718 per tonne, up 31%. I have given you some explanation of earlier when in second quarter, September, when my EBITDA was almost ₹1,020 per tonne, the delta of ₹250 per tonne ballpark, for example, is what I I told you in the in the element of cost, which is slightly higher as compared to last quarter, but as I said, December exit is phenomenally below 4,000.

The EBITDA performance was supported by YoY basis 2% cost improvement. Kiln cost declined 6%.

Of course, I can tell you that the kiln rate is better for me, but the kiln efficiency, I'm still, when I look at some benchmarks, I'm still at 25 to 30 kcal heat consumption higher, which is a area which is clearly earmarked for us to to to to run down. Power cost reduced by 15% on on back of the green power share, which is increased by almost 15%, and my logistics cost, and there's a good scope for me to further reduce my logistics cost, but as of now, it is reduced by say 1%.

The diluted earning per share for the quarter is 82 paise. Net worth is almost at ₹70,000 crores, to be precise ₹69,854 crores, and it increased by the ₹361 crores, which is equal to closer to the PAT which we have made for the quarter.

Company remains debt-free, CRISIL and CARE AAA Stable and A1+ ratings, which are the highest in the in the in the country. From the operational excellence, friends, our operations have strengthened on back of disciplined execution, capacity expansion, and network optimization.

In terms of the low-capex logistics initiatives, which, for example, are on the track, some of them, for example, we've already ordered the vessels, almost seven of them, which will be delivered to us by somewhere like mid of '27. We also are working right now in terms of the EV, for which we already have given some orders.

You will see more of this. We also are putting the blenders at the plants.

We are also debottlenecking on the logistics. We are also putting a sharp increase in terms of the production of the premium cements.

All of this, for example, will bring a substantial improvement in the in the overall, say, plant efficiency. By the way, we have substantially run down the SKUs, and which used to be multiple SKUs from a plant, almost 30-40% of that efficiency has also been brought in.

On the digitalization, I have covered it, I won't repeat more, but on the ESG and sustainability, this quarter marked another step forward in extending our climate and sustainability leadership. Efficiency improvements come from the modern assets, and by the way, more and more modern assets, because this March quarter itself, we will have almost around 8 million tonnes of cement which will be up and running and commissioned, this efficient new assets will help to average out the overall efficiency factors.

It will help me to bring down the lead distances. As of now, I see that my lead is relatively higher compared to the some of the peers, but that is obviously in terms of the location advantage what others have since they have number of geos, but in my case, as we move up with new assets, it will come down.

We accelerated our breakthrough on decar- decarbonization pathways while we have been the first in the in the in the universe in terms of the commercial-scale installation of Coolbrook's RotoDynamic Heater technology for the kiln electrification. This will help me substantially to improve my AFR.

As you know that we are doing it in Bada Vemula plant in Andhra. Additionally, the Indo-Swedish carbon capture unit pilot project in partnership with IIT Bombay and the government of Sweden is already in the process, and we have become the first Indian cement company to adopt the TNFD framework, bringing our nature-related disclosures in line with the global benchmarks.

On the ESG front, friends, I can assure you that we are frontrunners and we will not leave any stone unturned to achieve the ESG desired parameters. On people, community, and capability building, our organization is becoming younger.

As I told you last time also, my plants are becoming younger, we are becoming more digital savvy, and we are more focusing on smart execution. Across the communities, we are expanding access to future-ready skills through robotics, drone labs, rural KPOs, and so forth.

I think so in terms of our community engagements, it is on a very strong footing and therefore you will see more and like approvals coming on the at the various public hearings and all. Brand, customer, and stakeholder engagement has been very strong.

Our presence across the 29 high-impact industry platforms enabled us directly engage with more than 38,000 key stakeholders including builders, developers, engineers, architects, and policy makers, which I mentioned you some of the great institutions like CREDAI, BAI, NAREDCO, and so forth. It is giving us a direct interface.

Brand visibility remained widespread with outreach and activations touching over 300 million individuals across the cinema, OTT, digital, and so forth. I think so our team is very forward in terms of using the digital media.

In terms of the technical services, which is the one of the key strengths of Adani Cement, and I have a very sizable team on technical services, we have strengthened considerably. We, what we call it as ACT, Adani Certified Technology Site, which are like the houses which are built by our premium cement, this is growing every quarter, and this quarter, we had almost 36,000 ACT sites.

We have a network of 70-plus thousand contractors, influencers. We have almost like taken 400 workshops, and so and so forth.

On the techno- technical engagements also, we are on a very strong footing. Now, friends, I'm on the last concluding for my opening speech.

In terms of industry, I'm very positive. I've been positive for last four quarters.

When I at the beginning of this financial year in the first quarter itself I told I see a demand growth of almost 8%, and in between there were there were headwinds of the war and monsoon and seasonal dynamics and so and so forth, but you are seeing a strong revival coming back. Therefore, FY26 I strongly believe the industry will close at almost 8% growth of demand, which resembles also like 1.1 times of the GDP of almost 7.5%, demand comes to around say 8%.

Exit of exit of trend of December was robust, and with demand strengthening from early December and carrying into January also, I mentioned to you that even in January we have seen a good level of say price improvements, and we are also seeing a similar trend expected in February. The the overall revenue are going to improve.

It is expected almost as I said 8% demand growth and almost 3 to 2 to 3% improvement, another improvement in the quarter, coming quarter, which will be healthy finish for the year. Against this backdrop backdrop, our R&D-backed customized cement solutions, you will hear it very soon that we are also doing some specific R&D-backed customized cements, and that is going to strengthen my value-added products of cement, and thereby the weighted average realizations.

Institutional demand is very healthy, but growing focus is on the blended cement and which will consume lots of say fly ash or slag, so that is what, for example, will be a key driver for me. Currently, my share of trade and non-trade is almost 65 is trade and non-trade is 35.

Down the line, it will be moving towards 70-30. By the way, end of December, exit of December, we are seeing this trend of 67-33, and January already we are at 60 70-30, so that is, for example, what we are focusing more on the on the trade channels, which is going to give healthy kind of say realizations.

Overall, strategies are working very well on the market-led leadership, and the cost leadership is going to unfold in in quarters to come, as already started with December at almost below 4,000, and I'm seeing the same trend which will follow through in the March quarter. Needless to mention that all the benefits of AFR, WHRS, green power, new cement capacities gives me lots of confidence that our journey to achieve ₹3,800 per tonne of cost by March '27, ₹3,650 by March '28, that conviction and confidence continues.

Thank you, although it was little longer, but I thought I will go into more details. Now back to the moderator.

Good evening, sir. Hello.

Navin, good evening.

Good evening, sir. Two questions.

One is on your volumes. In the quarter, you have reported about 17% growth.

If I were to just exclude Orient from it, which you have reported, first of all, congratulations for the transparent kind of a entity-wise reporting, which helps us really understand and even pose this question in the first place. Congratulations for that.

My question was, if I exclude Orient from the total volumes, then the volume growth comes to more like 6%, and even I'm assuming Penna would have ramped up. My question was that if the realization decline, as I see, is much less than peers, is it that in Q3 we were focusing more on premiumization or on pricing or value versus volume, and which is why we saw a slightly lesser growth in other regions, if I may think it that way?

How should one look at then incrementally going ahead about volumes ex of South from a market share and growth point of view?

You had two questions, Navin. You are through with your both the questions?

Sorry, my second question then was on the renewable energy. So 898 out of 1,122 is already commissioned, which is nearly 80%.

In your opening comments, you also said that you're not able to utilize it fully pending approvals, you're selling it in the market. Is it that this whatever you're selling in the market is how is that reported in the first place, and then what kind of savings, by when can we expect and how much savings in the renewables space?

Navin, let's come to the most important question is in terms of the volume growth. I think 17% which includes all the entities Ambuja as a console, right, YoY.

You're right that in the previous year quarter, Orient was not there. I can do the math, and Orient if I exclude, that would come somewhere like 8%.

If I completely remove all the acquired assets, and then if I go with the base capacities, Navin, that comes to, in fact, that is a tad better than the industry, it comes to closer to around around 6%. Yeah?

Now, which would mean the base capacities of Ambuja and ACC, right? Now, if you if you do a similar thing for other companies, you will find that those companies are at somewhere like 3% to 4%.

I'm not naming anyone, but generally like that is the trend. We are actually better than that.

Second question, second point, you're right that in terms of the gear shift, of course, now the strong brand of Ambuja and ACC and now with the loaded power of Adani, and therefore now it's like Adani Ambuja, Adani ACC, our whole larger drive is to to to regain the market share on the trade side. Many companies will end up doing a larger share of volume because they will end up doing on the non-trade sides and all.

Our focus will be to to regain the leadership position of Adani Cement on the trade side on back of the strong brand equity what we have. Therefore, forward-looking, I can say 70-30, I mentioned in my opening remarks 65-35 to now the exit of December say 67 to 33, and then in March, although in the month of January I'm seeing 70-30 and gradually down the line 75-25, for example.

That is like our our wish list and our our working to achieve. That will definitely help me to improve my realization.

It will help me to penetrate more premiumization, and therefore the NSP will be better than the industry peers. This is a clear earmarked strategy, and which is played in the month of in the quarter of December, and more so you will see it actually being played in the month of January as well as coming quarters.

Which also brings another point that the digital strength will help me more in direct engagement with the and simplified working with the dealers, and therefore the retailers, and therefore the end customer. Therefore, I'm very confident the whole logistics and the the technology optimizers and the algorithms will help me on a speed of orders and all.

Therefore, the blended cement and the trade will be a higher growth percentage. Coming back to your question on the renewable energy, as of now, renewable energy, there are two factors.

One is certain government approvals. Second is also that my capacities when they when they come up and running, for I told you like 8 million of the grinding units, then also the clinker in Bhatapara Line 3, the clinker in Maratha which is expected in first quarter of the next year.

Clinkering facilities obviously consumes more power. As as things move forward and when my new capacities come fully operational, they will be able to draw more power.

Pending that, therefore, you can say that I am ahead in terms of power, and therefore I am I am also able to sell those power in the market. I have a combination of both green wind power and solar power.

As of now, this income of power, it resides under the other operating income in the P&L. Yeah?

That is how it is. If if if I net it off in my power cost, then it will be much lower.

From an accounting perspective, right now, this third-party sale is residing under the other operating income. Yeah?

Thank you.

Thank you, sir.

Yeah. Hi, sir.

Couple of questions. Sir, first is how are we looking at the JP assets which are now sitting at AEL?

Would it make logical sense for Ambuja to digest it based on what AEL decides upon? That's the first question, sir.

You complete, Ritesh, and then I can in one

time I can [reply?] .

Sir. Sir, second question is more on accounting.

In ACC press release, we have written that plant maintenance from next fiscal will be amortized over 12 months. Just wanted to understand the rationale for it.

The other accounting-related question was in the notes to accounts, again, we have indicated that with respect to coal sales as other operating income, now basically we net it off under power and fuel. In the earlier quarters, we have seen something similar for sales promotion expense.

Just wanted to understand the thought process for the all three line items. One was maintenance, second is coal sales, and third is promotion expense.

Thank you.

Ritesh. Thank you.

Good observations. First, Ritesh, on the JP assets, last time also I think a similar question had come, and I said that AEL is a separately listed company and it would be better that this question is asked to them.

As of now, I will keep it on a arm's-length basis, and therefore I would say no comments right now from Adani Cement from Ambuja on this. Second is in terms of the accounting of the plant maintenance.

This is very important, Ritesh, because otherwise what happens is so far as of now the accounting has been done, for example, say December quarter, the accounting results into distorted sometimes picture of a quarter because the cost gets booked on a actual basis when the maintenance happens. What now we want to bring it, which is more logically to all of you also, that this amortization will happen over 12 months so that the quarters don't get distorted with the scheduled plant maintenances.

Right now, the accounting policy has been to book it in the quarter when the maintenance activity actually happens. Yeah?

That is a very proactive step so that all of you are able to then properly look at the quarter in a real sense. Far as your third question is in terms of the coal sales and whether it is netting off my other opex, I will just want some details from my CFO.

Yeah. In ACC, because of the MSA what we have between the one cement platform, the coal sale which happens, earlier we were netting it off on the expenditure.

Given the discussions which we had with our auditors, we have shown it a gross at both the ends. That is going under the revenue from operations instead of netting it off on the power and fuel.

The value was ₹315 crores for the period.

Yeah.

Sure. Sir, can I just squeeze in one more question?

Ritesh, I think the moot point here is, I just want to again recheck, that there is no impact.

Correct, it's only grossing up.

It's only the grossing up. No impact on the P&L item, right?

No impact on the EBITDA, right? Yeah.

Ritesh, over to you again.

Yeah. Sir, last question was basically how should we understand the change in inventory on a sequential basis at Ambuja console level?

Change in inventory, what is your question specifically? Sir,

it's more from -₹30 to -₹84. The swing is quite substantial.

Yeah. Rohit, you want to address that?

Ritesh, if I can answer here. If you take in quarter two, that's where we have a big swing, and that's predominantly on account of the stock buildup which happens in the quarter.

That's the seasonality of the business, which is a low quarter sale from that perspective. You will have buildup on the cement stocks.

We also have a buildup on the clinker stocks, which gets pushed out in quarter three, quarter four, and quarter one, and it gets smoothed out. You see in this current quarter, we don't have much of it reflecting it.

It's predominantly on buildup of the quarter two which we have. Otherwise, it's a seasonality which impacts.

Otherwise, nothing more to add on.

Sure. Thank you so much for the answers.

Thank you.

Hi, and thank you for taking my question. My first question is in the September quarter, you had mentioned that a majority of consolidation of Orient and Sanghi-related costs were largely behind.

In fact, there was around ₹42 per tonne of maintenance-related cost in September which should have subsided in this quarter. Can you help us understand what exactly is driving opex higher QoQ?

Any quantification over here would be helpful. My another question is by when can we expect clarity on the expansion?

You gave us the 15 million tonnes debottlenecking breakdown, but what about the rest on your roadmap to 155 million tonnes? Thank you.

Rahul, hi. I think if you go back to slide number 38, while it captures broadly the overall phasing of the expansion plan, FY26 exit is 115, actually it is 117, but then I'm also going to do mothballing of two unviable and economically unviable units basically, therefore I'm saying 115 on a net basis.

Then on top of it, the overall phasing of FY27 and '28, that will cover balance. It will have a combination of both the new geos and the debottlenecking also.

Ballpark around 132 to 132 will come by exit of March '27, and the balance will then come to me at exit of March '28.

Oh, thank you for that. What I was looking for was breakdown asset-wise.

When can we expect details around that?

Breakdown of the capacity or breakdown what breakdown? Capacity?

Yes.

Okay. First let's achieve the end of March so that we are happy at say 118 million tonnes 117, sorry, and minus 2 of the mothballing, 115, for example.

Let's achieve that. Then as things progress, we will keep giving you further details because the blueprint is ready.

As things progress, we also want to go progressively with the quarters.

Got it. Thank you.

My the earlier question on opex,

Sorry, what earlier question was on cost of what? Of Penna and Sanghi?

Debottlenecking. I think in the last previous analyst call also I told the debottlenecking comes below 50, I was at say $48 per tonne.

No, no, that's not what I was looking for. The last quarter, you had mentioned that Sanghi and Orient were largely fully transitioned and

O&M cost. The O&M cost.

No, no, I think the O&M cost, for example, Rahul, of course that point of time, Sanghi and Penna are through. Now for you to have a substantially more capacity utilization, there were some items which were left.

Then as I said that for Penna, there were a couple of this plants, more so like Tandur was down, and in case of ACC, couple of old assets were down on certain equipments. That is where, for example, some of the scheduled maintenance which was supposed to happen in say January-February got preponed in December itself, and that results into.

Which is precisely my point when Ritesh asked that how you want to schedule is in terms of the overall maintenance cost, and I told that from coming financial year, we will have a proper amortization of the O&M cost over the quarters in terms of spread over the months as part of the say budget so that there is no per se distortion of the cost on the actual basis. Yeah?

Unless there is any other breakdown, otherwise it will be scheduled over the four quarters.

Let me ask this question differently. How much of your opex was one-off during the quarter?

No, a good level of, for example, almost in terms of my branding and my repairs, for example, almost ₹125 is sort of one-off. In terms of my higher freight because sometimes you then go with a larger lead and it is almost like ₹25 to ₹35 higher per tonne.

In terms of some of the legal costs, one-time in terms of some of the legal cases which we have won, by the way, but then this adds to the cost. Ballpark around say ₹150-odd is say one-time.

Therefore when I look at now my December exit, my December exit is clearly below ₹4,000, while compared to which was almost ₹4,500 a tonne for the quarter. Yeah?

With every passing month, with every better utilization of green power, with every better utilization of the WHRS capacities and the alternate fuels, this costs are going to come down. Therefore, in terms of giving you a estimate, I can only give you an estimate ballpark, but the actuals will be positively surprising to all of us.

Got it. Thank you so much, and wish you all the best.

Thank you for the opportunity, sir. Sir, just to sort of elaborate on the previous participants' questions, could you perhaps give us some breakdown in terms of direction for each of the cost line items, say for example in terms of power and fuel costs, how much do you expect them to trend downwards, upwards, same for other costs, on and so forth?

Yeah.

Siddharth, good point. I can give you ballpark.

I think in the initial commentary also I mentioned. Let us say, for example, my overall say power consumption per tonne of cement, which I find there is a scope for me to reduce by almost 10 to 12 units per tonne, and in terms of rupees per unit almost ₹1.5 to ₹2, which is although our end objective, but ₹1 immediately.

Ballpark, ₹100 to ₹125 a tonne I see improvement possible quickly on the power. While my end target is by FY28, ₹4.5 per unit as compared to ₹6.1 in terms of my power cost.

My consumption almost which is from here I can improve by almost minimum 15 units. As of now, I'm saying the 10 units is quite possible in the coming quarters and this ₹1 reduction.

Let us say around ₹150 ₹100 to ₹125 reduction on the power cost. On the fuel, almost like power and the fuel is almost ₹150 reduction is what, for example, we would like to peg ourselves, and back on the strength of the new assets which will come to us, which will reduce my overall say the heat consumption.

With every passing quarter, my fuel cost is coming down, and that you will see further trend. Look at the raw material, like now fly ash and all, with the group synergies, we will be benefiting on the fly ash.

We are putting up the BCFC rakes all across the major centers of consumption, which will bring me benefits of logistics. On logistics part, for example, when I look at it, almost ₹150 reduction is what we are targeting to, and on the raw material almost ₹100.

Plus-minus around say ₹300 to ₹350 is what, for example, will come, and that should come to bring it down my cost to almost ₹3,800, again as I'm saying, exit of 27th of March and 3,650. This is, for example, as I said, positively will surprise with every passing quarter, but the blueprint is very clearly laid down.

These are basically longer-term goals, not exactly visible say over one or two quarters, right?

No, they will come down because, as I said, like the moment my line is ready for commissioning, Bhatapara, for example, Line 3 is commissioned and it is ramping up, Maratha will come in Q1, this quarter 8 million tonnes of cement will come, they will all be geared up to consume green power, which is right now, for example, which we are selling in the market. It's not like long mid to long term, it will be possible to consume as they start ramp up on an immediate basis also, number one.

The moment they commission and get giving commercial production, this 8 million and all, the efficiency immediately improves because these are all efficient new kilns as compared to my almost the existing old assets. This combination will give you quick returns on a quarterly basis.

Every passing quarter will give you the improvements. Needless to say that, as I mentioned, the revenue pattern also will keep improving because all these new assets and all will be focused on premium and trade sales focus, blended cement focus.

Many of my rakes, BCFC rakes are getting delivered, typically once in almost three to four rakes gets delivered a quarter. The moment they get delivered a quarter, it straightaway helps me to deploy for movement of fly ash on railway logistics, and therefore the blended cement portion will go up.

I think don't look it as a long-term, look it as a every passing quarter kind of action.

Got it, sir. Just one quick question, sir.

What would be your guidance for capex for the next couple of years?

Capex, Siddharth, as I have also highlighted in the investor deck, around ballpark for the growth part, say ballpark ₹8,000-odd crores, and for the efficiencies and all, another say ₹2,000-odd crores. I would peg it, but this is a modular kind of say capex because basis the various opportunities, my foremost focus remains and continues on capacity utilization of my existing assets.

That straightaway helps me to bring substantial KPIs improvement, and therefore this capex, when I indicate to you, it also will be a factor of how the existing assets also spans out in terms of utilization of the capacity and all. Ballpark, yeah, ₹10,000-odd crores you can consider.

Over two years, three years?

No, no, this is like I'm saying yearly capex.

Annual capex. Okay.

Got it, sir. Thank you.

Hi. Good evening, and thanks for the opportunity.

Just on your expansions, while you have put out the numbers, but specifically on the clinker unit, which is Maratha and the Rajasthan clinker unit under Penna, by when is that expected to commission now?

Oh, good. Amit, thank you.

Penna is expected in this quarter itself.

Okay.

It's being targeted somewhere third week of February, but hopefully mid of February. This quarter itself the commissioning will happen.

Far as Maratha is concerned, I mentioned earlier, it is expected somewhere in Q1 to Q2. I would just keep a buffer of one quarter, Q1 to let us say Q2.

Bhatapara and Penna, Marwar, Bhatapara is commissioned, Penna, Marwar in February, then Maratha somewhere in Q2 kind of scenario.

Sure, understood. Beyond these then, which are the other clinker units that you plan to take up in order to reach that 155 million tonnes of grinding?

Again, good question, Amit. Thank you.

See, primarily for me, the engines of growth in terms of clinkering, Bhatapara remains my engine of growth so far as east is concerned. Sanghi is my engine of growth so far as west is concerned.

In terms of south, we have Wadi and Chittapur basically. Primarily, Sanghi is where we will grow.

Mundra, we are already expanding in terms of the calcium sludge based cement basically. You're aware of that.

Bhatapara, which I mentioned. Another important thing is for north, Marwar.

Marwar remains my major, for example, mother unit in terms of the expansion. The clinkering lines will be more primarily as a brownfield expansion, and therefore the benefits of brownfield capex and therefore the economies of scale and all will come.

That's how, for example, our whole blueprint will emerge and all the geos are therefore and BCTs and all. Good thing is railways have also come out with the bulk movement discount policies, our tie-up with CONCOR.

In fact, my capex actually will be a tad lower because now instead of GU, you can also very well plan BCT, and the advantage of fly ash the group has. The model is getting now re-emerging because of these various dynamics which are positive for the industry.

As I said, Bhatapara, then Marwar, then Sanghi are our mother units for these three locations, and in south, I have Chittapur and Wadi, which are primarily our growth engines in south.

Thanks a lot. That's very helpful.

Also on grinding, by when will you be coming out with more details on that 24 million tonnes which you have mentioned for '27 and '28?

I will go back to what I think Rahul had asked this question or Siddharth would have asked this question, Amit. I think give me time that with every passing quarter, I'm going to keep you posted because as I said, the industry is in a very interesting, very supportive of policies by the government, and therefore instead of saying you that grinding units, I will rather put a blend of BCTs and grindings and container movements, and so forth.

Therefore, the models are re-emerging, and therefore I will keep updating you all in terms of the footprints with every passing quarter.

Thank you. Just a last question if I may.

You were earlier also contemplating giving out the operations on a contracting basis. Has there been any progress on that attempt that you are making?

I must appreciate, Amit, you've been keeping so close track. Of course, yes.

Whatever we are discussing with you on every investor call, we are moving our journey on that. In terms of the outsourcing also, I must compliment my team and the efforts which has been coming out that we're in a good momentum on that, and you will hear positive things on that part as well.

That's all from me. Thank you very much, and best wishes.

Thank you.

Thank you. My first question is on costs.

Sorry to harping a third question on costs. Just to understand this, you mentioned that in the second quarter the costs were ₹4,250 and that's gone to about ₹4,500.

As of the close of the quarter, you are at ₹4,000. Are the numbers correct?

That is true, Rashi.

Then, and you also mentioned that the one-off expenses in the quarter were about ₹150 or so. From ₹4,500 if I remove 150, I come to ₹4,350.

That ₹350 is such a fast decline, how did that quick decline come from the quarter to current?

No, so, Rashi, I gave you some quick headlines when it was asked, what are the items which are one-off, and I explained. I explained in terms of broadly the branding, the O&M, the logistics cost, for example, which came in, and some of this legal cost which additionally came in and all.

In terms of this delta ₹250, which was there as compared to September quarter, ballpark ₹250 resides in some of these items. Primarily the first two months have seen it's more on the maintenance and all.

December was lean and clean, and therefore December is almost below 4,000, and as I progress in January also, it is actually below 4,000. Therefore, my confidence to circle back to you on March exit at below 4,000 is very high.

I can share further to you one details more if you require, but this is ballpark what I've been explaining right from my initial commentary to now. As I said, with every passing month, the benefits of green power, the benefits, and all of that, for example, I won't repeat, are actually coming in.

Therefore some of these items gets stayed off also. Yeah?

These are ballpark my answers to that.

Okay. On pricing, you mentioned that in the south non-trade prices were up ₹15 to ₹20 a bag, in the north ₹5 to ₹10 a bag.

Are there any increments in trade as well, or it's just only in the non-trade segment?

There is an improvement on trade also, but the level of speed of growth is more on non-trade and as compared to trade, because the downfall also was much accelerated for non-trade, and therefore the corrective action happened. Of course, yeah, even in the trade segment, it has improved.

Yeah. Good thing is now, again for south also, for example, our focus on the blended cement, and I'm happy to share that some of the first kind of initiatives in terms of Penna assets where the blended cements are now moving out from the factories, just two days back, that started.

I'm also happy to share with you that in Bombay, the blended cement in form of premium cement, otherwise Bombay is more of an OPC market, but Bombay also, for example, we have launched our premium cement and it has got a huge response, positive. I think coming back to south has seen trade also improvement, and south will see more of our blended share of cement improvement in an accelerated manner.

Would you be able to quantify on average where your realizations today are versus the last quarter?

Rashi, that would be too much of technical details basically, but I can ballpark tell you that, yes, things are improving I think all clusters, all zones, and good thing is the brand equity is now pulling a good level of demand from the customers, and the Adani added advantage of brand actually is bringing lots of positive euphoria in the supply chain partners. You will find the benefits coming in every passing quarter in terms of market realizations.

Got it. Just one last question from me.

Your balance sheet is suggesting a slight decline in the cash quarter-on-quarter. Could you explain that, please?

Oh, Rashi, when you are looking at commissioning 8 million tonnes of cement, obviously it will have a capex outgo. All your clinkering of 8 million tonnes, which will be coming right now from Penna to Bhatapara, for example, to the commissioning of Maratha, all of this is a planned scheduled capex, and therefore primarily, but if you look at obviously that from March to June and from June to September, there has been this acquisition of Orient and all.

Orient if you keep it aside, which was almost outgo of ₹6,000-odd crores, but if you keep that aside, huge capex which is there in terms of the capacities which are getting added. The volumes growth will come in coming quarters.

Understood. Capex in nine months is how much?

Total, growth and efficiency?

In terms of capex for the nine months, it is ballpark around ₹6,000-odd crores, and I would put the run rate, and therefore I'd given initially that almost 10,000 is what we're expecting between growth and efficiency, and for the next three months also, for example, another ₹3,000-odd crores. This will be ballpark ₹9,000-odd crores for this year, and the same plus-minus say 10% run rate we will follow passing quarter passing years also.

Got it. Thank you.

Those were my questions.

Good evening, sir. Thank you for the opportunity.

My question is on your slide number 10, where you've said that the cost reduction would be ₹4,000 per metric tonne March '26 exit. Nine months, we are averaging around 4,000 roughly ₹4,300.

Can I assume that last year's fourth quarter, I did ₹900-odd EBITDA per tonne, and with the improved conditions in the first two months of this quarter, can I see that improvement reflecting in the EBITDA per tonne? Maybe 900 plus 300, or maybe anywhere close to it, could be the EBITDA per tonne for fourth quarter?

Can we end the full year with something like a ₹1,000-plus EBITDA per tonne?

Jyoti, I can give you commentary on cost, so far as EBITDA has two elements, therefore, of course, I've hinted that and informed basically that January price momentum is very positive, and therefore you will see that upside in terms of price also, and of course on the cost which I mentioned that exit of March, it will be below 4,000. You will definitely, you can expect improvement overall.

What would be four digits or three digits, I would not give a forward-looking EBITDA.

Are we sure we'll be around 4,000? Will we average 4,000 full year?

I'm giving exit of March, Jyoti.

That's a full year. Toh agar quarter four bhi 4,000 hota hai toh bhi then significant improvement.

For the month of

2026 ka number hai na, March '26 ka? Yeah.

Toh March '26 mein agar hum 4,000 ho rahe hain, and you're already nine months average of roughly around ₹4,300, so that ₹300 per tonne improvement should reflect in the fourth quarter alone, which means overall kuch toh EBITDA mein dikhna chahiye, sir.

No, no, Jyoti, it will be definitely, but just put your numbers properly. When I say March exit, in this case, I'm meaning of March month exit.

Yeah? Therefore you do your math on that basis.

In terms of price and the cost, definitely the performance improvement will come on EBITDA. Theek hai, sir.

Thank you so much.

Yeah.

Hello. Am I audible?

Jashandeep.

Yeah.

Hi, sir. Thank you for the opportunity.

Sir, my first question is regarding the acquired assets. It feels like, for a year or so, these acquired assets have been a drag on the performance of Ambuja console.

In your presentation, also you mentioned that from the organic assets, you delivered ₹1,045 per tonne EBITDA. I just wanted to understand from the management point of view, from the strategy point of view, by FY27 end, what are the utilizations that you're targeting from these assets?

What is the internal EBITDA per tonne targets? What will be the key levers in generating those numbers?

Just wanted to get a sense of how you're planning to ramp up the acquired assets.

Jashandeep, now that we have acquired and we have integrated, therefore, I would say that it's now under Adani Cement. All these assets, including my existing assets, the target is to hit 80% utilization, and the target is to hit a EBITDA which is almost closer to ₹1,250 to ₹1,300 a tonne, and then gradually move towards ₹1,500 per tonne.

The acquired assets are doing very well. I told you Sanghi, which is now a good turnaround, and we are hitting almost 80% on clinker for December month, and I told you 65% on cement, and which will move up further.

Some debottlenecking which I have to do it in Sanghi so that I get almost as of now, say 25% of the clinker, which is like 20,000 tonnes per day, I have to do a small capex part which is already in the process. By June or July, I should have 2,500 tonnes utilization.

As of now, I'm handicapped to 17,500 tonnes per day kind of utilization. That will happen.

Yeah? When you acquire assets like this, and more so the assets which are financially challenged when they were acquired, and when the erstwhile company promoters could not do overhauling and all, it takes time.

Because these are strategically important assets, you get 1,000 million tonnes, you have a huge play, you have a mother plant now which will set up more clinkering units over there. Therefore, I would view in a opportunity for the asset.

By the way, I'm planning for a site visit also for all of you in the month of February. Team will come back to you shortly on this so that seeing is believing, and therefore you will get a larger comfort of the turnaround of Sanghi.

That was, say, on the acquired asset. For me now, acquired and existing, it gets all as a Adani Cement platform, one cement platform.

Now I would be confidently discussing with you in terms of the capacity in lines with the Adani norms and Adani standards for all of these assets.

Understood, sir, and thank you for this. Sir, my next question is more from a strategy point of view, from an industry point of view.

Adani Cement is one of the largest player we have. Just wanted to understand your view on consolidation.

Do you think you have already told us that organic capacity expansion you will be discussing in a later call, but do you think is the consolidation phase over, or there's more scope? Just a structural view if you can give us, how are you looking at the industry right now.

Consolidation phase of course till one to 1.5 years back has seen a good run-up on that, and now taken a pause because the companies which have deeper pockets when they've acquired, and therefore they're just taking a pause to basically ramp up the existing assets. That trend will continue, and therefore the focus on ramping up the acquired assets and then capacity utilization of the assets remains the focus area.

As things turn around, obviously then companies become more bullish, and this is a cycle which will continue. It takes a pause, it again comes back to the circle, and there are companies which will be available for consolidation, right from small-size to mid-size companies, but the pace will be not that what we have seen 1.5 years back, the pace will be little lesser, the size and scales will be relatively lesser, and but I would say that, yes, there will still be opportunities, and I'm sure those opportunities, I've been always saying that we are always open to at the right price and right value, therefore no one, for example, because I have a very strong balance sheet, ₹70,000 crores of net worth and zero debt as of now, therefore opportunities will come at the right price, we will be very open to that.

The current deeper focus is right now on the ramp-up of the existing facilities and the organic growth, which is already we have put a blueprint to work on.

Understood, sir. Thank you so much for this.

Good evening, sir. If you allow a couple of questions.

Can you tell how the EBITDA per tonne would look in different regions in Q3, or particularly maybe which region underperformed versus your ₹715 per tonne blended average due to specific plant performances?

Generally you all know the answer. South will generally be modest compared to the other markets.

West, for example, is generally better, and in this case, markets like Bombay are always far, far better. In terms of East was also subdued, although it picked up in the last month of the December.

Center has been completely subdued. The aggression of competition was very high in Center.

North, you will generally find, North and West clusters are generally mitigated from this kind of say immense pressure on competition. Center and East and South remains vulnerable, and South generally is vulnerable, and East and Center can surprise on either side.

That's how it spans out.

Sure. One other question, and this was related, was asked earlier.

You had ₹4,500 per tonne average for this quarter, exited at ₹4,000. Simplistically for modeling purpose, next quarter you will have a swing of ₹500 per tonne on cost, and likely will flow completely to EBITDA per tonne, you can report ₹1,200-plus pricing increase, that the expectation for next quarter?

I would be very happy to give you some forward-looking statements on this, Prateek, but I would resist on that because I can give you with comfort that what I can target on cost, but on the EBITDA, I think this question came with Rashi also, Rashi or with Jyoti, I think. I would resist on any commentary on the EBITDA.

You can do your math. You are smart enough.

Sure. These were my questions.

Thank you.

Thank you.

Sir, my first question is on power consumption. The point you made earlier that power consumption can come down by 10 units, and one of the drivers you listed was commissioning of the new clinker plants.

Our understanding under the erstwhile management was that one of the reasons power consumption here was the limestone and the aging of the plant. Are you saying that the 11 million tonnes will really help you to bring down portfolio-level consumption by 10 units, or are we also working on efficiencies of the existing clinker plants as well?

Both, Ashish. I mentioned to you in terms of the stability, reliability, and therefore the utilization factor of the existing plant, and that will be a key for every kind of KPIs.

On top of it, the blend of the new assets, it will be benefit of both coming together on a overall basis the reduction of 10 units.

This is high visibility, you think, based upon whatever technical assessment you may have

done? Yes, I think I'm already seeing that visibility.

See, as I said, with capacity utilization improving for the acquired assets, with the efficiency capexes done for the existing assets, and you're right, some of the assets which are old from ACC and all, and therefore when you debottleneck, you will actually be able to get a higher volume of cement from the same assets, and straightaway your efficiency improves. There's a high degree of visibility on that.

That's how, I think we have done our math on that, and then come out with this weighted average reduction of minimum 10 units.

Right, right. Sir, secondly, again, I understand that JP assets are with AEL and you don't want to comment on it.

In case let's say those assets come to us, then will it be incremental above 155, or you will have flexibility in the existing potential pipeline and you will still stick to 155 by FY28?

No, I think my larger point is 155 has element of both organic and inorganic, so that continues. Although I'm not commenting anything on AEL AEL transaction, but whether it is JP or whether it is XYZ, 155 will subsume as a overall both organic and inorganic.

Got it. Got it.

Got it. Sir.

Thank you so much. That was very helpful.

Thank you.

Thank you very much, sir. I have two questions.

My first question is again going back to the costs, which were very disappointing this quarter. Over the last two years, the costs have been volatile, and going forward while you maintain the guidance of costs coming down, there will also be a lot many new capacities which will ramp up, which will have lower utilizations to start with.

Shouldn't that cost also be a drag? I'm just trying to understand the cost picture.

Will the overall cost for the company come down, or will the new plants' cost be higher in the ramp-up phase and the existing plants' cost would come down?

Good. I think, good, Pinakin.

First your question is in terms of volatility. I think I wanted to address that part when I said that the accounting of this O&M cost, which should actually ideally get amortized logically over say 12 months so that volatility comes down, point number one.

Point number two, the new capacity, right, ramp up, in terms of GUs, the ramp-up happens very fast, unlike in clinkering the ramp-up happens in a phased manner. The ramp-up doesn't really increase the cost because they already are sitting at a efficiencies.

Ramp-up will not increase, but it incrementally will improve the costs. Any cost which is required at the time of commissioning, anyways that gets capitalized.

Volatility answer is right. In cement, if you do it on a actual basis, it becomes volatile.

Therefore I will take those corrective steps in terms of equalizing in terms of the quarter so that it is not on a actual basis, but it is properly amortized. Number two, in terms of capacity I mentioned to you, and therefore the new capacities don't tend to increase the costs.

Sure. My second question is on the capacity number 155 million tonnes.

The pipeline of 24 million tonnes, which includes both organic and inorganic, while there will be an inorganic element which you cannot detail right now, but given that you have given a target for capacity as of two years down the line, when can we expect the organic capacity roadmap to be detailed out? Because just trying to wonder that if the capacities are not detailed, then how confident we are of that March '28 number?

No, I told, I think in terms of the end target for FY27, we are at around 135 million tonnes, and then it moves to 155, right? I think end target for the year is there.

Now the question was specific GUs and all. That I've said that we will come back with every quarter so that whether it is GU, whether it is bulk cement terminal, whether it is container terminal, I think lots of options have now come out.

We have the synergies and advantage of the power plants, and of course on an arm's length and all, but we have the advantages wherever, for example, we can very easily now put up some of the BCTs and all. This whole model requires detailed review to bring more efficiency on the capex and still get the benefit of the capacity.

I think that is what we are going to come back and circle back to you. The larger numbers very much remain intact.

Second, as I said that focus will be to sweat the existing assets much better, smarter, and efficient, and therefore at any stage when we are able to meet the same demand and market share with sweating of the existing assets, I think 5-10% here and there cannot be basically ruled out, because that is where, for example, the whole opportunity will be to bring more efficiency in the existing assets. So 155, 135, 115, 115, these are three ladders to the next say three fiscal years, and plus-minus 5-10% when you are able to achieve your capacity utilization.

That's whole part of the whole strategy.

Got it. Got it.

Thank you very much, sir.

Ashish,

already I think we are at say 6:20, I would say maybe last one or two questions. Yeah.

Ashish.

Sir, thanks for the follow-up opportunity. Sir, I just had one bookkeeping question.

Sir, earlier on the call, did we comment that ₹315 crore of coal sales is booked differently this time, which is both in revenues and costs, which was earlier being netted off in the power cost? Is that the reason why our realizations are flat sequentially and our cost is also significantly higher?

Is that one of the reasons, or

can you just clarify that? Rohit Rohit will

answer you on this. Sir, that's not the reason.

It's just a gross-up and gross-down from accounting perspective. All the numbers what we report, they don't consider that.

We reported from the management this thing. That is just a gross-up, gross-down, nothing to do with any of the numbers what we report.

Affirmation that NSP is not influenced on that? No.

Affirmation number two that EBITDA is not influenced on that? These are two points.

Now, Rohit, if you want to still clarify. Yeah.

Sir, if I can, but is that accounting change effective this quarter on coal booking? If you can just clarify that.

Yes, it is there in last quarter also. The value was less, might be in this quarter it's a value a bit larger.

That's the only thing. It has been there in the past also.

Sir, can you give the value for the previous quarter, please, if possible?

I have for the current quarter. For the past quarter, I'll pull it up and I'll ask Deepak to share it with you.

Sure, sir. Sure.

How much is the current?

315.

₹315. For the current quarter, it is 315, and previous quarter while the next question comes, if we are able to dig out, then we will tell you, otherwise Deepak can separately inform.

I'll again clarify, Ashish, this is only at ACC level. Otherwise, at console level, everything is eliminated because all these things are within the one cement platform what Mr.

Bahety was trying to explain. At console level, 0 0 0.

Again, I think this is coming as a question again. My point is Rohit, and we can just confirm.

Again, two-three things: EBITDA is not influenced. No.

Price is not influenced, right? It's purely accounting, and it nullifies.

Absolutely. Absolutely nullifies at the console level.

Friends, this is very, very clear, and then any specific further details circle back with Deepak.

Great, sir. Thank you so much.

Thanks a lot. Yeah.

Thank you.

Hi, sir. Good evening, and congrats on very detailed presentation and these discussions.

My few questions. You have talked about the three clinker units which will get commissioned over next three to four four months.

For FY27, are there specific targets beyond these three clinker which would get commissioned? Also could you share demand outlook for Q4 overall, how is the industry growing?

My third question, what we have seen and I remember a few quarters back, you had alluded to this that there's a lot of value unlocking you're doing in ACC, Ambuja, which is below the EBITDA, the tax refunds which you're securing or getting it cleared for prior periods. Some discussions around that, please?

There are four of them, right now in the discussions. One is of course your three one which you said, and the fourth one which I mentioned was the Mundra, right?

This together, for example, right now 16 million tonnes, because each of them is say 4 million, 4 into 4, 16 million into ballpark 1.5, you have 24 million tonnes GU. Right now, I'm sitting at say 1 1 109, 109 plus 24, we are at say 133, 135 which I mentioned.

Plus 8. No, no, 8 is included in that, na, GU.

Basically, these four kilns are very much there in terms of process. Then I mentioned that Bhatapara, Sanghi, and Marwar-Mundwa are our centers of growth from clinkering perspective, and sooner that you will find our additional announcements and narratives coming on the capex program.

By the way, Assam also we have entered into agreement with the government in terms of setting up another one line of 4 million in Assam, which is the fifth one, by the way. Which brings to you 20 million tonnes of clinker.

Yeah? Let us say Mundra is still a brownfield because we have a great ecosystem there, Assam is greenfield, and Maratha is brownfield, and Penna anyways is in fairly advanced stage, which will be up and running in February.

Great. Great.

On the demand outlook and value unlocking through tax refunds for prior period?

Tax refunds of the prior period, I think we have done a major efforts on that and unlocked the working capital. I think we have also, if I give you ballpark, we have resolved a substantial of the legal cases also, we are extending our balance sheet from that perspective.

I hope you're not asking me about the past year refunds and all. I'm more forward-looking.

I think your question is more about the forward-looking.

No, no, no. The tax refunds which you have secured for both ACC and Ambuja in the past few quarters quite sizable, relating to prior periods.

Are there more which is available to be realized on those?

Right. In the future, not with this magnitude.

I think there will be, but this magnitude may not come, I think. Few points on the GST and few points on some of the specific taxes and all from couple of states, and then some incentives which has to come in form of long-pending.

I think those are the ones which will be adding up to the overall cash flows. On the income tax, I think we have sizably resolved majority of the cases.

Okay. On the demand, sir, Q4, what is the industry outlook you're looking at, Q4, how is January, and what is the outlook for next two months in your assessment?

I remain bullish on demand for the cement industry, and industry as a whole, I would say that Q4 should also see around 8% kind of percentage, and therefore the leading players will find double-digit growth again in the quarter of March.

Great. Great, sir.

Just last question on the capacity which you mentioned, Assam, when do you target this line to be operational?

Which line?

Assam capacity which you're planning, you mentioned that you will be setting up a greenfield in Assam.

Yeah. I would say that since Assam is Assam, and therefore it could take around I would say ballpark say 24-odd months, 18 to 24 months is what, for example, we should be looking at.

Somewhere closer to FY28 exit, we would be looking at this.

Yeah. I think the work on the ground has already started, land has been secured, and the incentive program and all, for example, is moving very well.

Assam will see a good level of work at the site.

Sir, you talked about two capacities getting mothballed, 2 million tonnes-odd. Could you elaborate if it is already done and at which locations?

These are very old assets. One of them is in say Sindri, and second is basically at Jamul.

On slide number 38 of the IR deck, see, again, I'm sure you would appreciate our IR decks are very transparent and very full of information. On 38 page number, you will see the mothballing of this two capacities, Jamul and Sindri, very old mills.

These are already done, right? In the current capacities?

They're non-operational practically, and therefore I'm removing them from my operative capacity.

Okay. Okay.

I can still always use it on a opportunistic basis, but as of now, they are economically unviable, therefore I've kept them non-operative.

Understood. Great, sir.

That's all from my end. Thank you.

All the best.

Yeah. Hi, sir.

Firstly on Sanghi, now it continues to operate around 50% odd, sub-50, on an average level in terms of grinding. Now this is despite this asset being acquired for more than two years.

The ramp-up remains much lower versus our initial guidance. The geography is Gujarat, where we already have a very strong presence.

What is going wrong here structurally, or what was the negative surprise here that we realized post the acquisition, if any?

Good observation again. Nothing per se wrong.

I think we have to understand the topography of Sanghi. It's like a classic island plant, and you've seen some of the harsh seasons.

Last year, for example, you have seen flooding and all and huge storms. Some of the plants were affected, and Sanghi was also some equipments were damaged.

Second is in terms of some improvements, for example, the transmission line was little low-voltage transmission line, and which is if you would just track it, therefore already now the transmission line from government is getting revamped and strengthened to take a higher load factor, which will straightaway help me to bring at least 20-25 megawatt of green power in Sanghi, therefore it will benefit me in a sustained power and at a reduced cost. Sometimes otherwise when this kind of say storms and winds and bad season, power tripping happens very often.

Nothing wrong with the asset per se except some of the debottlenecking and investment which we had to do, including some dredging activity which had to be done, which has been done now. Now I think with 80% in December exit, when I say December exit, it is December month, 80% of clinker capacity being used and almost 65% for cement, I think from here, things are now only improving.

Earlier, you would see that the plant life was very badly managed, but it takes time for us to also revamp the whole quality of life over there, the infrastructure, the facilities, and therefore I'm very eager to take you all now to Sanghi, and therefore the right contractors, the right talent will also now move in. Earlier becomes a very mofussil area.

Those were the issues. We know that when you acquire an asset of this scale and which gives you sizable potential and which has 1,000 million tonnes opportunities so that you can set up multiple lines, I think it's a game of setting it right and gradually so that it performs overall in due course.

Understood. This is helpful.

One last one. If we look at the current status, we have underutilized acquired assets, a capacity expansion target of maybe 15% to 20% over the next two years.

This in the backdrop of industry demand at roughly 8%-odd, right? How are we thinking on volume growth targets over the next two to three years, or is there any guidance that you can give on volume growth or capacity utilization or market share, that would be helpful?

See, volume we will be growing double digit. While my base will keep increasing, but double digit is what we are expecting.

It is very important for me to highlight that we are balancing it between volume and value, and therefore you will see more accelerated improvement on my realization, on my blended cement, on my premium cement. Therefore, even at the risk of losing some low-EBITDA volume, which we will do, but we will play a balanced game of volume and value.

Understood. One last bookkeeping.

Can you just give Penna's utilization levels both on clinker and grinding, if possible?

Penna ballpark is for the month of December is ballpark 52% to 55%, and as I mentioned this asset of Tandur of Penna was down, but now it is going to be up and running in the next a week or 10 days, and therefore you will see a good level of utilization, sharp improvement in Penna assets. Some of the assets we have done a substantial overhauling, that also, for example, results into whenever I do an overhauling, it sharply improves my O&M cost and which gets booked when the actual cost is incurred.

Penna is a classic case on that. Lots of this work has gone to bring this assets back to their desired asset reliability factor, and therefore, and I mentioned to you that Penna assets now will start sending blended cement also, and therefore it will help me to improve substantially the capacity utilization.

The Krishnapatnam grinding unit of Penna, for example, which was there, which now say 2 million becoming 4 million, and once I start substantially using this 4 million, because right now, the ramp-up of the additional 2 million has not happened, but the moment that happens, this 55% will see a sharp jump in terms of capacity utilization.

Understood. Understood, sir.

This is very helpful. Thanks, and all the best.

Thank you for extending the call as well. Thank you.

Thank you very much. We are almost at 1 hour 45 minutes, I'm sure now Iqra will take a judicious call.

Thank you. I trust most questions have been addressed.

You have my contact number. Please feel free to call me.

Thank you.

Thank you.