Thank you, Ryan. Good evening, everyone.

On behalf of PhillipCapital India Private Limited, we welcome you to the Q1 FY '27 call of JK Lakshmi Cement Limited. On the call from JK Lakshmi Cement, we have with us Mr.

Arun Shukla, President and Director; and Mr. Sudhir Bidkar, Executive Director, Corporate Affairs and CFO of the company.

I would like to mention on behalf of JK Lakshmi Cement Limited and its management that certain statements that may be made or discussed onto this conference call may be forward-looking statements based on current management expectations and also something that relates to future expected business developments by JK Lakshmi Cement's management. Such statements are subject to number of risks, uncertainties, and other important factors which may cause the actual developments and results to differ materially from any management projection made on this call.

JK Lakshmi 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 business development information or future events or otherwise. Also, the participants of the call can download a copy of the Q1 FY '27 results presentation from the company website.

I will now hand over the floor of call to the floor of JK Lakshmi Cement management for their opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, sir.

Yeah. Thanks, Vaibhav.

Good afternoon to all of you. Thanks for joining this call of JK Lakshmi Cement, which we are going to discuss quarter 1 results.

Before we take questions, I'll just give you a brief update, though we have already uploaded our result and also all the parameters. Still, I think, couple of things which is important to input here.

Of course, I think if you really look at demand side, quarter 1 FY '27 was reasonably all right despite having a lot of issues externally. One of them was geopolitical situation which we are in.

Despite that, I think demand was better. Industry has grown by about 8% or so.

Supply side, around 11 million tonne has been added, that is what I think information which we have. Overall addition is going to be about 52 million tonne as per the estimation which we have with us.

Overall installed capacity of cement in India after 11 million tonne addition is about 725 million tonne. Capacity utilization last quarter, industry level was on an average about 73%, 74%, couple of players higher than that, and some of them are lower than that.

This is on supply side. If you look at cost side of it, all of us know that cement industry is being impacted by geopolitical situation which is existing in different parts of the world, and the major being Middle East conflict which is happening.

That has disrupted entire supply chain. Impact of that is on import which we do, particularly fuel from outside, and coal and petcoke.

Those players who are there in northern part of India, I think they were dependent more on imported coal and petcoke, so that has impacted our cost part of it. Even other products also because of geopolitical situation, be it explosive, chemicals, other things also, prices have gone up.

If you look at price side of it, price increase has happened, but not to the extent cost has gone up. Pass-through has happened partially.

In our market where we operate, non-trade prices have gone up. Trade largely were kind of flat.

In some of the market, even trade also improved a bit. Overall, pass-through has not happened to the extent cost has gone up.

Internally, JK Lakshmi Cement, we have been working on various ways to mitigate this external situation by working on different levers which we have within our control, and of course, how we can really readjust to the reality of fuel situation or energy situation which is existing, how we can use, let's say, a little more of indigenous coal and replace petcoke which was getting imported. Similarly, on renewable energy front, AFR, on logistics front, and even on top-line elements like volume, premium product, geomix, and all.

Which I have been kind of telling all of you that this is what our focus is. We focus internally, and externally wherever we can mitigate with our internal action, that is what we have been doing in the last quarter.

This is what just a brief. The kind of uncertainty in terms of cost landscape and particularly on fuel part of it.

Now we are through this cyclicity, of course, I think this is going to be a kind of double impact this quarter. One is on a leverage part of it, and second, cost impact, which is going to be a little more in quarter 2 than what it was before.

This is what is there from my end as of now. Now this is open for question and answer from your

end. Yeah.

Before we take up the question answers and throw the floor open, I would like to make a mention that all investors would know that we had an AGM last week and in which we had proposed various resolutions. Unfortunately, despite the fact that all these resolutions were in full compliance of the law and as per the SEBI LODR guidelines, these proxy advisors had proposed a negative voting for some of the resolutions.

Some of the investors, just based on the negative recommendation of the proxy advisors, had casted a negative vote on some of the resolutions. Fortunately for us, very many mutual funds and FIIs took a pragmatic view based on the representation made by the company to these proxy advisors.

Though they issued the addendum attaching the company's response to their recommendation, they did not change their recommendation. You would be surprised that even the re-election of the professional director, Mr.

Shukla, was recommended to be negatively voted in some international proxy advisors. Fortunately for us, as I mentioned, very many mutual funds and FIIs took a pragmatic view and casted the vote in favor of these resolutions.

All these resolutions were passed with overwhelming majority and whatever majority was required to be passed to get these resolutions through. We expect our investors take a pragmatic view in the matters, discuss the matter with the company, and take a conscious view rather than just basing it on the recommendations of the proxy advisors.

That is the opening comment I wanted to make, and we can now throw the floor open for question answers, please.

Thank you for the opportunity, sir. My first question is on realization.

As you mentioned that trade prices did not move up materially, there was some improvement in non-trade prices, but overall your realization seems to be up by around 9% on a sequential basis. What is this related to?

Is this related to some sort of market mix, some sort of product mix? Can you throw some light on this?

Yeah. Non-trade prices went up in some market, and even, trade prices also went up in few markets, not all markets, but major increase was there in non-trade, so that has helped us.

The major, impact has come about through our, focus in geomix, the material where we are going to sell, and that has impacted our realization a bit. One, of course, non-trade because we are a little heavy on non-trade, you know that.

Even last quarter also, 41% is our non-trade, right? Non-trade price increase in markets like Gujarat and Mumbai area, even east also it went up, and north as well.

Trade was kind of, stable in north, went up a bit in west, and also in east. That has helped us our helped us to improve our realization.

The geomix and the price increases which we had, and of course, I think other levers which we keep on working on. For instance, like if you really look at in our lead, lead has, gone down by 20 km last quarter.

All these, combination of all these parameters have helped us to improve our realization. Sir,

would it be possible to share some more colors on the geomix change, like in which markets you have seen some improvement in your volumes or where have you reduced your volume?

No. I think that is evident because if my lead is going down by 20 km, my sales have increased in nearby area.

I think I do not have that breakup geography-wise as to where we have sell how much, but yes, of course, I think far-off market, we have reduced quite a bit in last quarter.

Okay. Second question is on your variable cost.

This also looks higher than what peers have reported. Can you share some can you give some information on per-kcal cost in terms of fuel in this quarter versus what was in 4Q and currently what is it as of now?

Yeah. Last quarter, fuel cost was ₹1.65, which went up from ₹1.54 preceding quarter.

There is an increase of about 11 paise. That is one of the major element.

I think fuel per-kcal increase is one of the major contributors to this.

What is it currently, sir, in this quarter in 2Q?

Quarter 2, I think we have just closed 1 quarter. It is going up for sure.

I think it's more than ₹1.65.

Sir. Thank you.

I will come back in the queue.

Yeah. Thank you.

Hi, good evening, and thanks for the opportunity. Could you share the number of other operating income which you had in the quarter?

Other operating income, yeah. Treasury one.

Not much. No, no.

Other operating income is basically other income which we have shown separately. Other income, not the other operating income.

It is the income from the treasury,

yeah. I know.

Other income I know it's there in the results, but there are other kind of non-revenue-related operating incomes also, right, which is booked in revenue?

Other operating income, we don't have any other non-operating income.

Sure. Then on this price improvement of 8%, 9%, I understand that you say that it is geomix optimization, but could you still explain what are the markets where, let's say, you sold more?

Because this is really a meaningful increase, as you would also agree. Just to understand.

Yeah. Major, I think we have four major markets where we sell.

Gujarat, Rajasthan, Chhattisgarh, and Haryana and part of Western UP. Just to give you a sense, we have sold about close to 90% sales in these markets.

Okay.

Yeah.

Last quarter, what was the number for that?

Sorry?

Last quarter, was that number lower, as in for Q4?

Yeah. Of course lower.

Must be about at least 10 percentage lower than this. That has impacted our lead also.

If you look at our lead, it has gone down from 388 to 368.

Okay. Understood.

How much CapEx has been spent on the Durg expansion so far?

Total in this quarter we have spent about ₹200, ₹300 crores in this 3 months period. If you want to know separately on how much has been spent on Durg only, for that expansion is about 400.

400 in aggregate so far, you mean?

Yeah. 400 is aggregate in so far, including what has been spent in the previous year.

Total for FY '27 in 12 months period we expect a total CapEx of about ₹1,500 crores, and thereafter next year slightly higher at ₹2,000 crores, and then again 1,500. This is without taking into account the expenditure to be incurred on land acquisitions for Kutch and Nagaur, which is slightly going slow.

That is what guidance for as of now is.

Right. This guidance includes the Northeast expansion also?

This does include Northeast also of ₹1,500 crores.

Understood. Also, could you share the number for the non-cement revenue in the quarter?

Non-cement revenue in this quarter was 185, 2? Yeah, ₹185 crores.

Okay.

185. It included

an

RMC of ₹93 crores and other products, AAC 67, POP 23. That is what was made up of 1 ₹185 crores.

Got it. While fuel cost you said would increase a bit in Q2, is there any other area of cost inflation which will be there?

I believe packaging would be moderating now, correct? No,

no. Packaging cost also, the recent trend is now the granule prices have gone up.

I was just kind of looking at it. It went down little bit, 134 or something.

Now it has went up to 145. That is also going up, and the impact of that, initial calculation on bag itself is about ₹3.5 to ₹4 per bag.

Over and above fuel, you mean?

Yes, yes. This cost has gone up.

Packing cost is going up. Now petcoke was kind of softening a bit, little bit in between, but it has shot up once again.

Has gone up more than $140, $145 now. Same goes with imported coal also about $130, $135 per tonne.

Yes, other cost is constant. It has not gone up with respect to last quarter.

Fuel cost, packing cost, this is definitely, I think, on increasing trend now.

Correct.

So... If something happens, something positive externally, then I think things may improve.

This is what it is as of today.

Sure. Would you be able to share a number, let's say, for cost inflation for Q2 then in aggregate, as in per-tonne basis?

I think, see, major contributor is going to be fuel cost. From 1.65 to maybe it can touch even above 1.8-plus or even 1.85 times.

Understood. Got it.

Then just a last data question also. On the non-cement business, what would be the EBITDA margin in the quarter?

5%.

5%.

Okay. That's it from me.

Thank you.

Hello. Am I audible?

Rajesh ji. Good afternoon.

Hi, sir. Good evening.

Sir, first starting with what was the clinker sales volume in Q1 out of this 35.98 lakh?

Just hold on. Let you know.

1.6 lakh. 1.63.

1.63 lakh.

1.63 lakh. Okay.

There is a fall in the clinker sales volume quarter-on-quarter. Is this understanding correct?

Absolutely.

Okay. Second, the reported cement realization which you share, that number is up by almost ₹20 per bag quarter-on-quarter.

You mentioned that trade realization barely moved and non-trade would have improved. There is a sharp ₹20 increase.

Even, would you... Go ahead.

Yeah.

On a like-to-like basis, what was the price improvement seen in the trade and non-trade segments? I just want to split the benefit on account of price movement and on account of geomix optimization.

I do not have granular figure, but I'll just let you know. Based on geomix, the reduction is about 20 km.

That translated to about ₹60, ₹70 per tonne, right? Rest is your price increase.

See, if you really look at west prices like Gujarat and even Mumbai where we sell little bit, and our non-trade proportion is very high, their prices went up and that has helped us.

Okay. Understood.

Trade prices went up in east, so that has helped us. North was almost kind of constant, little bit here and there, not much, but non-trade even north also has gone up.

Understood. You have mentioned in the presentation that your lead distance has come off, but if I look at the freight cost, that number has inched up by ₹30 per tonne.

Obviously, there would be some impact of diesel price increase for a month,

but

we haven't seen the benefit of the lead distance in the freight cost.

Yeah. We kind of hold on to freight for some time, but in certain lanes, we had to increase this because of diesel prices went up, right?

The reduction has been much more than what inflation we gave in terms of freight.

Sorry, didn't understand the last part.

The reduction which we have taken, 20 km, it has surpassed the cost inflation or the freight increase which we had given to our transporters. That is what I'm trying to tell.

Okay. You're saying that your freight operators have taken a larger increase, but that impact is moderated because of the lead distance reduction which you have seen.

Were there any maintenance shutdowns across plant which would have inflated the other expense numbers in this quarter because even that is very high at ₹770 per tonne?

Yeah. We took maintenance also in some of the kilns.

There were some maintenance part, not major, because major maintenance is happening annual shutdown this quarter. Packing cost is one cost which has gone up, right?

Some of the plants, I think we had some shorter shutdown also to kind of work on few things.

Understood. Now between Q1 and Q2, you're looking at your fuel cost going up by 20 paise, which should be ₹100 per tonne, and even packaging you're implying ₹3 to ₹4 per bag, means around ₹80 increase in packaging cost.

Even if I take it for the at least, yeah, ₹50 to ₹60 impact, we're talking about ₹150-plus variable cost increase. Additionally, there will be an oplev loss sequentially and also maintenance-related expenditure piling up in Q2.

Obviously, cement prices haven't moved up, rather they would have a negative bias versus Q1. Are we looking at margins tapering off significantly in Q2 versus Q1 based on current cement prices?

See, typically July, September is demand cyclicity,

right?

All of us take maintenance during this time. That definitely impacts our margin, right?

Now as I said before, that on energy front, fuel front, there is an uncertainty. If things improve, then I think it's going to be good.

Also, this is impacting across industry, then pass-through also definitely will happen. That is what I believe.

If

this is going to kind of hit our margin, we'll try to pass it on to our customers because absorbing this much cost is not possible. I think we'll have to pass it on.

The only challenge would be that this is falling or coinciding with demand cyclicity. How much pass-through that is going to happen, that is a kind of big question mark, how much will we be able to pass it on.

That is what the crux is. Otherwise, definitely pass-on will happen, and cyclicity will impact, so that is something which is kind of every year phenomenon.

Understood. Far in July and early August, what has been the pricing trend versus average of Q1?

July, August, if you compare, I think I have not seen much upward trend, but prices have not gone down even,

right?

Prices are flat in all markets till now because we are just 6th of the month of August, and July has just passed. Prices have not gone down.

Maybe I think if you know that July has been a little wetter than earlier July previous year,

right?

I think demand will improve, or maybe I think little bit upward in demand will definitely help us to take up some price increase also.

Understood. Sir, lastly, on the CapEx, what is the equipment ordering status on the Eastern and Central expansion and on the railway siding Phase 2 as well as on the conveyor belt in the Durg?

On all ongoing projects, major equipment ordering we have already done. For instance, like Durg, our second clinker line plus grinding facility plus grinding at Prayagraj and Madhubani.

That major equipment ordering we have already done,

okay?

This railway project, which I said before also, that is contingent to the kind of collaboration with Steel Authority of India and other stakeholders, right? Even since we are just passing through some road also, PWD road, I think that has to kind of have collaborative approach with all those stakeholders also to take it forward.

That is no way impacting our operations because we are operating our railway line in full phase, no issue, and whenever that kind of collaboration happens, then we'll take this railway project forward, whatever is remainder.

The overland conveyor belt project?

Overland conveyor belt, so as I said that this approval was pending with Steel Authority of India Limited. That has been approved.

Now this proposed agreement is now lying with Steel Authority of India Limited, and they have to kind of go ahead to do this agreement and contracting. We have reached to that level till now.

Understood, sir. That's really great.

I'll come back in queue. Thank you, and all the best.

Thank you so much. Thank you.

Hello, sir. Good evening.

Thanks for this opportunity. I have a few questions.

One number-related question, that is first. What is our total thermal capacity, and if you can provide me RE component installed capacity as of today?

What is our progress towards increase of RE capacity and for power and fuel cost savings purpose? This is my first question.

Okay. Right, last quarter we have renewable energy 49%, right?

Whatever energy we consume, 49% is our renewable energy, and that includes solar, wind, and WHR, right? This is in terms of our renewable energy, 49%.

Of course, I told you that our plan is to take it up. We are working on some other projects also, and going forward, maybe 6 months, 8 months down the line, we'll further improve this percentage.

This is part one of your question, right? Part two was what?

Just I'm missing. I wanted to

know thermal capacity and renewable component capacity like solar, wind, and WHRS, installed capacity.

Yeah. I think I can give you that breakup, right?

Solar is 129 MW, WHRS is 45 MW, and wind is 4 MW.

The thermal capacity?

74 MW.

Okay. Coming back to my second question.

See, if we talk about the regional pricing, right now if we see north and east, generally these prices are very high, cement prices, I can say, as compared to other regions. If in case there is a price hike across geography, do you think that we still have some kind of potential of a price hike?

In fact, in a different way if we see, if there is a price correction, there might be a significant chances that the north and east can impact much rather than other regional prices. How do you see, means, no, already we are in a very high price in north and east region.

Please correct me if I'm wrong or just give me some view of yours.

I have a different view. I don't know where from you are coming prices are high because north cost is also the highest.

As I told you, one of our investors they were asking impact of this geopolitical situation, I explained in my opening remark also that north has been impacted the most because we were importing coal and petcoke, right?

Yeah.

To my mind, I think pass-through has not happened in north. North has a better headroom to increase prices than other zones.

This is what my take is, which is little different than your understanding.

Second is

if you look at the lowest price perhaps which is existing in entire India is eastern part of India, and particularly in Chhattisgarh.

Okay?

Perhaps prices have not really gone to the level by which cost has gone up, right, and look at me. This industry is so capital intensive, right, and you know that kind of ROC or ROI different players are getting.

Right? I don't think that prices have gone to that level that there is no headroom.

I feel other way that there is a headroom because cost has gone up drastically. Okay.

A

last question, if I may. Our non-trade segment share is 41%, right?

Few years before, most of the players, they were trying to increase their trade segment, right? Now do you see for next 2 years non-trade segment is going to work out more rather than trade?

In general, I think it's very difficult to really see non-trade or trade because this segmentation is also based on the margins, to my mind, and other segmentation, of course, B2C and B2B. When you really focus on margin part of it, you have different landscape in different states.

In general, I think if you ask me, then yes, of course, trade is better than non-trade on two things. One, of course, overall margin is better.

Second, in trade, you sell mostly blended cement, so that is anywhere beneficial. If you go to that regional nuance, then I think you have a different kind of thing.

A player like us, I think we'll have a different strategy in different market with respect to trade and non-trade, right? Overall, if you ask me, yes, of course, I think effort is going to be there on trade even going forward.

More so because mostly blended cement gets sold in trade segment, and that gives you a better equivalent realization than selling other product, right? Maybe I think absolute price or the margin if you look at, then maybe other product will look a little higher.

If you really look at equivalent contribution considering clinker factor, then blended is always better. Overall, I think trade is going to kind of focus area in coming future also.

I don't see that is going to trade, maybe in couple of years.

Got it. Thank you, sir.

Thank you very much, and all the best.

Hello, sir. Could you share some more color on the SPV that you guys have done for the solar power purchase?

Yes. We have taken about captive power route for having this 42 MW of the solar power in SPV in which we are likely to invest about ₹20 crores and that will give us a payback of less than 2 years.

We have contracted that solar power at a fixed tariff of ₹4.10, which landed to us will cost us about ₹5.85. It will substitute the grid power, which is presently costing ₹7.50.

Per unit, ₹1.65 saving would be there. That gives it.

Sir. Thank you.

Yeah. Hi, sir.

Good evening. My first question is, can you discuss how reported 8% growth in volumes what would be your region-wise or regional growth or regional utilization for your company?

Utilization is at 76%. I do not have region-wise growth.

I think it's difficult now. Maybe I think we can give you a little later, but right now I'm not having.

Okay.

Also, can you discuss the progress on your Northeast expansion program?

In Northeast, yes, two mines which we have got through auctions, now mining plans is in different stages of approval. Mining plan submission, getting environment clearance, and things like that, so that we are doing.

Parallelly also, we have a plan to put up, of course, initially 1.5 million tonne in Northeast. For that also, we have started activities, of course, plant land and then getting all those clearances before identifying locations for grinding station.

Those things are happening. We are on track.

Now Northeast project has come back on track. Maybe in next quarter, I'll give you some discrete details because now different activities are at different stages of approval.

Once we achieve some milestone, then we'll update you further in perhaps in next quarter or quarter later.

The related CapEx of ₹1,500 to ₹2,000 crore over next 3 years is not including this expansion, right?

It does include that. Oh, it does include.

Okay. My last question is on your opening remarks, you said that annual shareholder resolutions were opposed by proxy advisors and some investors also voted against them.

Could you share how company engages with these proxy advisory firms, because we also got similar query, and institutional shareholders for such key resolutions and any changes in the process that you think so to reduce the vote of such outcomes?

We directly don't get engaged beforehand with the proxy advisors. What these proxy advisors do, they have their own set of guidelines for various resolutions.

There they are having their own regulations, which is over and above what the Companies Act or the SEBI LODR guidelines are. And 2 days before the voting starts, they issue their report, recommendatory report, and give us 48 hours to comment on that.

Beforehand they don't give. They make it public, and then they give us.

Once we submit our representation based on their recommendation, then they, if they feel right, they issue an addendum. Generally, they just attach the company's response and may or may not change their recommendation.

For last several years maybe I've been engaging with these proxy advisors, they just attach the company's response and don't change their recommendation.

Fortunately, when we made the representation this time, the proxy advisors, I don't want to name, said, "Yes, we agree to what the company says, but our guidelines doesn't allow us to change the recommendation. Though we think that what the company says is right."

That is one of the proxy advisors' response there, too, was. The second proxy advisory said, "Yes, we fully agree.

Earlier they had said that the resolution is non-compliant legally. Then they changed that to, "Yes, the resolution are fully legally compliant, but still they are not changing their recommendation."

We don't have any mechanism, nor do they entertain any direct interaction of the company beforehand. It's only after they release the report they give us either 24 hours or 48 hours to comment on that, and then they issue addendum attaching the company's response thereto without changing their recommendation.

That is what it is. Then we expect the mutual funds and the FIIs based on the company's response to take a pragmatic view.

Fortunately for us, as I mentioned in my opening remarks, very many mutual funds and FIIs were able to understand the company's point of view. Despite there being a negative recommendation by these proxy advisors, voted in favor of the resolutions.

All these resolutions were passed with requisite majority, whatever was required, including the special resolutions.

Thanks for the detailed explanation.

Yeah. As far as the international proxy advisor is concerned, they don't even give us an opportunity, nor the, I don't want to name, international proxy advisor based on whom some of the FIIs and very many Indian mutual funds which have some foreign linkage based their opinion or cast their vote on.

Sir, thank you. This is what's from my side.

Yeah. Thank you.

Hello, sir. Just a follow-up question on the solar power purchase.

You said that the cost savings are around 1.5. When can we see that reflective, in which quarter exactly?

We expect this to take about 8 to 9 months for the project to get implemented. The real benefit will start flowing from the fag end of the fourth quarter.

9 months from now is almost year-end, hopefully from the first quarter of next financial year or if we are lucky, the project gets implemented in January, February, then we get some benefit in the fourth quarter. Otherwise, for sure in the first quarter of next financial year.

All right, sir. Thank you so much.

Thank you.

Yeah. Thank you for the opportunity.

Good evening to the management. My first question is to your response to earlier participant's question of change in geomix, which was the reason for the higher realization this quarter.

If I just look back in quarter 3 also, there was a 10% sequential dip in the realization and now 8.5%. My question is, frequent change in geomix, doesn't it lead to a loss of market share temporarily in that particular zone?

How is the response from your stakeholders, your channel partners in that particular market, sir? This is my first question.

The geomix is not about doing this in a knee-jerk, okay? This is a very systematic approach.

Perhaps you may be hearing from me that we are working on this for the last more than couple of years, right? During demand months, I think we have an opportunity to further kind of improve our geomix.

That also you need to understand. Maybe I think in lean months, since you want to utilize your capacity, then you go to some other market also.

During demand months, you have an opportunity to maximize that. That is what I think.

For that, you need to have that channel capability to maximize. This is what has happened.

It's not a kind of knee-jerk thing that last quarter we did something else and this quarter is something else. No, that is not the case, right?

That I think we need to understand that little bit of demand support helps you to kind of speed up your actions which you are intending to take. This is what my response is.

All those core markets, and still I am telling you, I think we have four, five states where our concentration is, right? During demand months, you that your presence in those markets.

When demand is not supportive, you go a little kind of wider dispersion as well. We track our market share in our core market.

Core market, I told you, four, five states, we just see that we are maintaining our core market. That is what our strategy is.

Got it, sir. Sir, given our timelines of achieving 30 million tonne by FY '30, are we still maintaining that guidance or there is some recalibration in that capacity target?

No, we are maintaining that. We are on track of achieving 30 million tonne by 2030.

Okay. Then what would be a threshold of net debt to EBITDA going ahead till you achieve your 30 million tonne goal?

Yeah. We would not like to cross net debt to EBITDA 2.5 to at best 2.75x.

You are right, based on our plan, which are slightly bullish and aggressive to achieve 30 by 30, we may towards the end, maybe '29, '30, we'll see that level touching that. Long as the road map for tapering it down is clear, we'll pursue our plans.

Got it, sir. Last question.

What was the clinker utilization in this quarter?

Clinker utilization, 95%, I suppose, last quarter. Just see that.

Clinker, 98%?

Yeah, 95%, yeah.

Sure, sir. Thank you.

Sir, these were my questions. Thank you so much.

Thank you, sir, for the opportunity. My first question is on the raw material cost, we see a spike.

Is there any specific reason that you'd like to call out on?

Raw material cost you're talking?

Yes, sir. I was on the raw material cost.

Sorry?

Yes, I did ask about the raw material cost. We see some inflation there, both sequentially as well as on a year-on-year basis.

Would you like to call out on what would be the reasons for that?

Yeah. I'll tell you.

One is, of course, fly ash cost because during April, May, June, some of the would go for shutdown. During shutdown, we are required to procure fly ash from far-off places.

That has impacted a bit. This is one.

In case of gypsum also, at times gypsum availability, right? Combination of various gypsum which we use like chemical gypsum, mineral gypsum, phospho gypsum, right?

Sometimes based on the availability, and that has happened in last quarter, our cost has gone up. Of course, I think since our footprint has gone up in case of HBS business or non-cement business.

Since that raw material cost also is included in this, as I said that our last quarter turnover was 185 on us, right? Raw material consumption up in HBS, and that has impacted overall raw material cost inflation.

Sir, did I hear that the fly ash availability was an issue or the cost went up?

No. Combination.

In some of the places, I think issue was some of the thermal plant went for shutdown, which they do every year. Since fly ash is something which is necessity for our operations, we procure this from other source, which is, I would say, L2 source.

Temporarily that cost goes up, right? In some of the places, we also took part in auction, right?

Where fly ash cost has gone up little bit.

Yes, sir. I'm asking this because our blending on a pure-to-basis has gone up from 62% to 64%.

Also along with this, diesel price impact has also been there, right? Combination of diesel price, temporary increase in fly ash cost, and some of the auctions which we participated, this has impacted and non-cement business raw material requirement.

That has added up to this increase in raw material cost.

Yes, sir. The blended cement product mix has gone up from 62% to 64%.

This is when our availability of other things were slightly tighter. How do we try to calibrate this?

Come again. I think I didn't get you properly.

Your voice was not so clear. Go ahead.

Sorry, am I audible clearly?

You are.

Now I'm saying the blended cement percentage has gone up from 62% to 64%.

Right.

How do we, try to when when we were having issues procuring certain raw material, our blended cost is blended cement product proportion is going up. Is it is it would you like to throw some light on this?

I'll do that. Our trade percentage has gone up last quarter.

It went to 59%. Trade is mostly goes blended cement.

Blended cement, you need other than clinker, other cementitious material and majorly fly ash and slag, right? Now when your trade volume goes up, your raw material cost goes up, then whatever fly ash availability is there L1 source, I think you may have to go to L2 source to cater to your increased demand.

Getting me? Trade sales increase necessitated us to procure more fly ash or more cementitious material, which asked us to go little L2 source to kind of fulfill our demand, right?

I think everything is connected. Okay?

Fair enough, sir. The inward freight is in built in the raw material cost or in some other line item?

Yeah.

Okay. Sir, what would be our petcoke mix vis-a-vis year-on-year and Q-on-Q?

Petcoke was last quarter,

last quarter it was 16%. 15%.

If you compare that with earlier quarter, it was 14.

Sir, I just missed the earlier number. Last quarter was 40?

This quarter it was?

15% petcoke this quarter, means quarter which has ended on 30th June.

Okay. Okay.

Understood. Sir, the third thing is that we hear some litigation issues in Assam land procurement.

You would like to call out on that some in detail?

Yeah. We had acquired land from local council, Assam Government, for setting up plant in Northeast, right?

Some of the nearby villagers, they have gone for PIL claiming that this land belongs to us or maybe I think they're inhabitant somehow for so many years. This happens everywhere you go, and this is what the hassle across India is.

They filed one PIL in the High Court of Guwahati, Assam, right? This was Mahabal Cement, I think you know that we were planning to set up a grinding plant in the name of Mahabal Cement, which is our subsidiary, right?

Now since Mahabal Cement was subsidiary or is subsidiary for JK Lakshmi Cement, they have kind of made us also one of the recipient of the notice of that PIL. This is what the case is.

This case was going even from before, right? This time they have added JK Lakshmi also because Mahabal Cement is subsidiary of JK Lakshmi Cement.

Okay. On the lead distance that we are highlighting on, is this going to be a permanent improvement or this can go back to in typically in the monsoon quarters, we try to...

It

will go up. Monsoon, it will go up.

I just told before because it will go up a little bit in monsoon, though we'll try to contain it because we have given target to our team members. It will go up during lean months like July, September.

But 9 months, we do have an opportunity to kind of squeeze in.

Sir, my question is, what will be the company's installed and operational capacity by the end of this financial year?

18 million tonne.

Hi, sir. Thanks a lot for the opportunity.

Sir, I missed your CapEx number. Did you say 1,500, 2,000, and 1,500 for next 3 years, which is only ₹5,000 crores?

You're right.

Are we going slow on CapEx? Because our Durg and Kutch are already in order than Northeast and Nagaur.

Durg, we have only spent 400 cr till now out of 3,000. You think by FY '28 end we will be able to complete Durg?

Durg,

it does include Durg. Because out of ₹5,000 CapEx with number which is given, we are talking of about ₹3,000 crores for Durg and ₹1,500 crores for Northeast.

This CapEx number doesn't include the land acquisition cost, which you are presently doing for Nagaur and Kutch. In any case, Nagaur and Kutch would come later than Northeast and Durg, right?

Your number what you have noted are correct.

Thank you, sir, for taking my question. Just with regard to your recent acquisition of STLC, you had mentioned we are going to set up a 28 MW battery energy storage system.

Just want your rationale on that.

This is based on the demand-supply balancing which we do, right? What happens is, in case of return, you can set up solar power to the extent of twice of your contract demand, right?

Based on the demand pattern we have within our plant, we see that how much we can store this without losing even a unit. Because if you, let's say, produce excess unit, this goes back to the grid, right?

Maybe perhaps the banking facility which Rajasthan Government has given, you can set it off within 1 month. Based on the demand pattern, how much we are going solar power, how much consumption is there within the plant, and over and above how much we are required to kind of store within storage so that we are not wasting energy which is being produced out of it, right?

Based on that, we have decided on 28 MW BESS.

Yeah. Thanks for the opportunity, sir.

Sir, with regard to non-cement revenue, how do you see full-year non-cement revenue at the end?

Non-cement revenue for the whole year you're talking?

Yes, sir. Yes.

Projected figure, right?

Yeah.

Yeah. Last year

Non-cement revenue. Entire non-cement revenue for this year.

Okay. This year, last year it was how much?

613. 613.

Perhaps I think we'll be around ₹800 crore-plus types. This is what I think our estimation is.

We'll be closer to about ₹800 crore top line in case of non-cement revenue by end of this year.

Thank you. Sir, just one small question from my side.

Sir, in the Q1 FY '27 results, what I see is there is a sharp jump in other expenses also on a Y-o-Y as well as Q-o-Q basis. Any specific reason for this sharp jump in other expenses?

I don't know whether you explained this on the call earlier or not. Sorry for the repetition.

Other expenses?

It

was mentioned in the response to one of the question, Vaibhav, that it was basically because of the increase in the packing cost and the normative increase because of the volumes. That's all.

Other than that, it's not.

Sir. Got it.

Thank you, sir. On behalf of PhillipCapital, I would like to thank you for the call opportunity and also many thanks to the participants for joining this call.

Thank you very much, sir. Ryan, you can now conclude the call.

Thank you. All right.

Thanks, Vaibhav. Thank you, everyone.

Thanks, everyone.