Thank you, Ryan. Good evening, everyone.

Sincere apologies for the delay due to some connection issues. On behalf of PhillipCapital India Private Limited, we welcome you to the Q4 and FY26 call of Star Cement Limited.

On the call we have with us Mr. Tushar Bhajanka, Deputy Managing Director, and Mr.

Manoj Agarwal, Chief Financial Officer at Star Cement Limited. I would like to mention on behalf of Star Cement Limited and its management that certain statements that may be made or discussed on today's conference call may be forward-looking statements related to future business developments and anticipated company outcomes by its management.

Such statements stated on today's call would be based on Star Cement's current management expectations and these statements are subject to a number of risks, uncertainties, and other important factors, which may cause the actual developments and results to differ materially from the statements made. Star Cement Limited and the management of the company assume no obligation to publicly update or alter these forward-looking statements, whether as a result of new information or future events or otherwise.

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

Hello. Hi.

Good afternoon, everyone. My name is Tushar Bhajanka and I'm the MD of Star Cement.

I welcome you all to the conference call of FY26 quarter four. I would like our CFO, Mr.

Manoj Agarwal to give his remarks regarding the numbers and then we can start with the Q&A.

Thank you. Hi, friends.

Very good afternoon. I, on behalf of Star Cement Limited, welcome you to our concall for discussing our numbers of Q4 ending FY26 and for the financial year 26-27.

Now, I will just take you through the Q4 number followed by the financial year numbers. Starting from clinker production, during the quarter ended March 2026, we have produced 11.59 lakh ton of clinker as against 11.38 lakh ton same quarter last year.

Far as cement production is concerned, we have produced 16.45 lakh ton this quarter as against 14.79 lakh ton same quarter last year. Now, I will take you through sales volume.

During the quarter we have sold 16.18 lakh ton of cement and 1.15 lakh ton of clinker as against 14.75 lakh ton of cement and 0.57 lakh ton of clinker in same period last year. This is as far as cement and clinker sale is concerned.

As far as geographical distribution of cement is concerned, in Northeast we have sold around 11.27 lakh ton as against 11.02 lakh ton during same quarter last year. As far as outside Northeast sale is concerned, we have sold 4.91 lakh ton of cement this quarter as against 3.74 lakh ton same quarter last year.

In terms of blend mix, it is 18% of OPC and rest is PPC. These are the quantitative numbers of the quarter.

Now, I will take you through to the financials. The total revenue figure for this quarter is around 1,174 crore as against 1,052 crore same period last year.

As far as EBITDA figure is concerned, this quarter we have done EBITDA, excluding exceptional item, it is around 324 crore as against 268 crore last year. Profit after tax is 147 crore as against 122 crore in the same period last year.

On per ton EBITDA front, it is 1,871 during this quarter as against 1,748 per ton same quarter last year. This is what our quarterly numbers of this fourth quarter.

The total revenue figure for full year is around 3,776 crore as against 3,163 crore in last year FY25. As far as EBITDA figure is concerned, during FY26, we have done EBITDA, excluding exceptional item, of around Rs 955 crore as against Rs 589 crore last year.

Full-year profit after tax is 390 crore as against 169 crore last year. On per ton EBITDA front, it is 1,738 during FY26 as against 1,245 per ton in FY25.

These are the quarterly and full-time numbers. Now, I request all of you, if you have any query, you can ask the same and I will request Vaibhav to moderate the same wherever requires.

Thank you. Vaibhav, now it's over to you.

Thank you. Good evening, sir.

I have multiple questions today, and firstly congratulations on a great set of results. My first question is on the volume for FY26, the upper end of your 5.5 million ton.

Any guidance for FY27, sir?

Just a moment.

Hello? Harsh?

Hello?

Hello, am I audible now?

Yes. Congratulations to the team for a great set of results.

I have multiple questions today. My first question is on the volumes.

We have achieved the upper end of the guidance which we had given last year of 5.5 million ton in FY26. Any new guidance for FY27, sir?

You're mute.

Sorry. What we are looking for in the coming year is about 10% to 12% growth.

I think that is what we're expecting. I think it should be the volume that we did, which is about 5.3 and 10% to 12% growth on that.

Sure.

How is the current demand scenario in April and in May? Is it supportive of the run rate?

I know it's too early, but how is the current scenario, sir?

The current scenario right now, because of April and there were elections in April and May in Assam and also West Bengal, I think the demand was a bit sluggish because of that. I think we do see a pickup in May.

April was a bit sluggish. It's like what you said, I think it's too soon to probably predict how the year would go.

It really depends on how June also goes, right? I think we'll probably be able to give a better estimate of how the overall numbers will turn up in the next quarter once we've seen four, five months, I guess.

Sure, sir. Sir, the second question is on the incentives.

We did see certain reduction in the incentive for quarter three and quarter four given the cut in the GST rates. Can we extrapolate the quarter four incentive accrual for full-year FY27?

I think the overall subsidies in FY27 would reduce by about 40 to 50 Cr compared to, quarter compared

to FY26,

right? I think on an absolute level, that's what we can expect.

Then, it will, of course, have its own per ton EBITDA impact on profitability.

In absolute numbers, can we say around 160 to 170 crores in FY27?

No, current year we have done around 184 crore of subsidy. What Tushar is saying, 40 to 50 crore, somewhere around 144, 145 to 150 crore sort of thing you can estimate for the coming year.

140 to 150 crores, am I right?

Yeah, 150,

yeah. Also, sir, are we sticking to our CapEx guidance of 500 crores in 500 to 600 crores in FY27 and 1,000 crores in FY28, or is there any upside risk to this given that we want to commission?

I think right now what we're doing is that we've applied for our ECs and all the permissions and we're acquiring land right now in Nimbhol, in Haryana for a grinding unit, and also in Bihar for a grinding unit. I think in October around, we should be able to complete our approvals as well as the land acquisition in these three places.

Then we will start our CapEx. I think the estimate for FY27 will be about 600 to 700 crores, given we follow these timelines.

In FY28, sir?

In FY28, I think the estimate would be about 1,500 crores.

1,500 crores, right. Okay.

Sir, last question before I fall back in the queue, we have seen an increase of 240 240 crores odd in the non-current investments. What could that number be?

Harsh, that was because the bond, this is the liquid asset itself, but as per the Ind AS, we have to show it as a non-current asset. These are all the liquid asset less than one year realizable for less than one year.

Got it, sir. Thank you, I'll fall back in the queue.

Thank you.

Hi, sir. Thanks for this opportunity and congrats on a good set of results.

Sir, I have a couple of questions. Sir, firstly...

Hardik, I'm sorry to interrupt you there, but... Your voice is not...

Hello, is it better now? Hello?

Yes, Hardik, please go ahead.

Sir, on the cost front, we have seen that there's a industry-wide impact of increasing fuel costs, but how immune are we to the increasing fuel costs due to our agreement of coal purchase with Coal India and less dependency on petcoke and other prices?

I think right now in quarter one, we would see an increase in the fuel cost. I think it's both.

I think the cost increase in the fuel and also the shortage, right? Because all the rakes right now from the railways has been diverted to the power plants, right, thermal plants.

I think the availability of coal is in short supply, and I think that is leading to the increase in the price of coal as well. I think there would be an impact of I think about 10 to 15 paisa per GCV cost in coal.

I think that should be a short-term increase. I don't think it should be a long-term structural increase, but there will be increase because of all the rakes being diverted and then we have to arrange coal from elsewhere and then that increases the cost.

That should be probably quarter one, quarter two, and then I think it should again come back to where it was in quarter three, quarter four

onwards. Also, sir, on your expansion and what is our priority right now in the Bihar, Nimbhol, and Haryana?

For the Bihar unit, what is our expected timeline? Will we source the clinker from the Meghalaya unit only for the Bihar plant?

I think our timeline for the Bihar plant is roughly about two years from now. This includes the land acquisition and then putting up the greenfield.

The clinker will be going from Meghalaya itself. What we are planning to do is that we have our Silchar unit, which also has a railway siding, which is about 60, 70 km away from our clinker plant.

We will send the clinker to the Silchar railway siding and we'll load our clinker from there and then we'll send it to Bihar. That's how we have planned the entire logistics around it.

Initially, definitely, till time we don't have any opportunity of putting up a clinker plant in East, Bihar grinding unit will be served from Meghalaya.

Thank you.

Okay.

Hi, sir. A couple of questions, sir.

When we say 10% to 12% volume growth, this is on pure cement we are talking and not including the clinker?

The estimate that I was suggesting of 10% to 12% was mainly on cement. It did not include the sales of clinker.

Clinker sales broadly would be the similar 3.5 lakh that we have done in FY26. The similar run rate would continue?

I don't have a necessarily a good estimate of that. Probably, it should be similar numbers.

It should be quite flattish. I don't think we'll see a growth in the sale of clinker.

What we are now focusing on is basically sale of cement only. We're just trying to make sure that we realize a better rate in clinker rather than on the volume of clinker.

I think what we're trying to optimize is on the realization that we're getting by selling clinker.

Okay. Three data points, sir: trade share, CC ratio, lead distance, and fuel cost for fourth quarter.

Trade share is about 78%. Last year same quarter, it was 81%.

There was growth in non-trade as compared to trade relatively. Then, I think the second thing you had asked for was the lead distance, right, which has reduced from 229 last year to right now about 220.

It has reduced by about 9 km. The third thing you had asked for a kcal cost, right, which is about Rs 1.24 per GCV.

What was the fourth thing that you had asked?

CC ratio for fourth quarter.

CC ratio for this fourth quarter is about 66.2%.

Okay. Another just to clarify, broadly now the three upcoming plants, the Rajasthan one, Nimbhol, and the Bihar one, and Umrangso, we were looking at close to 6 million ton clinker, 9 million ton cement.

And 4,800 crore overall CapEx and this broadly will be starting by H2 FY29 to start of FY30. Just in the previous answer, you said that the Bihar grinding, which would be I think 2 million ton, would be coming two years from now.

Shall it mean by FY28 or maybe Q1, Q2 FY29?

I think it means first quarter of FY29 or second quarter of FY29. Right, around that time we should be getting the Bihar grinding unit.

What we have done is that we prioritized Nimbhol, Haryana, and Bihar

first.

Then we've also, of course, applied for permissions and everything in Umrangso and in Jorhat. That CapEx will start a bit later than this CapEx.

In the next four to five years, I think we plan to do all these five CapExes, which includes Nimbhol clinker plant, it includes Umrangso clinker plant in Assam, it includes a grinding unit in Jorhat, it includes a grinding unit in Bihar, and it includes a grinding unit in Haryana.

Nimbhol. Yeah.

For Rajasthan particularly, broader whatever we discussed last time, the 3 million ton clinker and 5 million ton both including the split grinding, and the 2,400 2,500 crore CapEx plus 10% variation, and so that number remains intact and broadly we are looking at to kind of a start by September '28. Similar kind of a 1H '29, the same way Bihar.

Both would be coming together, that's the way we are looking at?

Yes, that's the target. It just depends on when we get all the approvals.

What we're expecting is that we should be able to get all the approvals by October and we should hit the ground. If there's any delay by a month or two on the start date of the CapEx, then I think in the next concall I'll inform.

Broadly, apart from... Shravan,

Hi, sir. Thank you so much for this opportunity.

I just wanted to ask that previously we had maintained around four to five years that it would take for a new competition to enter, but what we see is that Shree Cement, Ambuja, all have come up with plans to enter into Northeast region. Do we still stand by that timeline?

I think broadly it should take about three to four years for someone to enter. I think that is still what the assumption I have in mind.

I think we'll just have to see in the coming quarters how things change if they do, but right now I think that is the estimate that I have in my mind.

Because we have to some extent extended our timelines for the projects that we had, do you think that with all the things that are going on currently, companies would prefer entering into new regions where the pricing is better, EBITDA per ton is better. Do you think that is a risk now for new companies, mainland players to enter into the Northeast region?

Sorry, can you repeat that question?

What I was saying is that with all the West Asia disruptions that are happening right now,

and we still

provide better EBITDA per ton in the market, do you think the companies will try to fast-track their expansion into different regions, for example, Northeast?

See, they would just go the pace which is practical on ground and they would try to do their best. I don't think the West Asia crisis really pushes them to come to Northeast.

I think irrespective, the margin was good for them to try to come to Northeast. I think Northeast as a market overall compared to the market that they're serving is relatively small, I don't think that their overall numbers will change by entering Northeast that way.

Correct. Sir, the other question that I had is that we are planning to enter into North.

At what point do we start marketing our product? Because we would be quite a new brand there.

What would be the timeline for that? When do we add more dealers for that particular region?

I think we will start creating brand awareness, I think at least about 8, 9 months before we actually start the commercial production. Right, I think any branding that we do before that maybe a bit premature.

Understood. Thank you so much.

Thank you for your time. Best of luck.

Thank you.

Good evening, sir. Am I audible?

Yes.

Sir, my first question is what is our premium cement share for this quarter?

The premium cement share for this quarter was 15.1%.

Okay. Second question is how has been the pricing trend in April and May as compared to the March exit?

Has it improved, flat, or what has been the trend basically?

In Northeast, it has improved slightly. In outside, also I think there is a Rs 10 improvement which has happened.

I think that's what has happened. Outside, basically West Bengal and Bihar.

In Northeast and outside also, Rs 10 per bag has been the increase since the exit?

In Northeast, I think it may be about Rs 6 to Rs 7. Outside Northeast was about Rs 10.

Sir. Thanks.

These were my questions. Okay.

Sir. Just again to clarifying on the CapEx front.

Can you clarify the CapEx right now we are envisaging for Rajasthan, Bihar, and the Umrangso individually and in terms of if you are planning to start by 1H FY29, how we will be individually and total will be spending in FY27, '28?

I don't have the individual breakups of the CapExes per project by year. What I can do is that in the investor presentation, I can attach a slide.

Probably there I think you'll probably have a more comprehensive view of the different CapExes of different projects by year. I think that chart we can give in a week's time and we can post it on that.

Got it. Second, Manoj, sir, the cash, as per you, because the non-current investment has increased, what's the cash as per you?

Gross debt we have as per the balance sheet, but cash?

Total 583 crore is the gross debt, total debt is there. Three and the net debt is 200 crore, odd 200 crore.

There is 383 crore that we have a cash in the form of bond or mutual fund. It is a fixed deposit with the bank.

It is exact 300 odd crore

or some... 383 383 383 odd crore.

383 crore is a cash and cash equivalent? Cash,

yeah, liquid, you can say the liquid asset.

I got that thing. Second, sir, you mentioned that in Q1 and Q2 whatever the rake shortage and some increase.

We are looking at 10, 15 paisa increase in the fuel cost. This will be till 2Q also or only just July, August, and then it will be coming back to the normalise level?

No, Tushar-ji already told because now we are whatever facing that auction prices have gone up. Now, the rake availability is also an issue due to the scarcity in the power because they are supplying to the power plant.

How much impact will be there, we are just estimating that it will be 15, 20 paise, but how the thing moves, now the diesel prices have gone up. It is very difficult to predict right now what will be overall impact.

For this thing we can estimate that currently it is 15 to 20 paise, how the thing will move, it is difficult to tell right now.

Got it. Broadly in terms of EBITDA per ton what we are normally looking, 1,600 to 1,800 odd rupees that we will be able to maintain till the time the Rajasthan will come and then we will be able to still have a 1,300, 1,400 kind of a EBITDA per

ton? I think for the next two, three years till when we get the Rajasthan project, I think the EBITDAs, because it is only Northeast sales, the EBITDA should be between 1,500 to 1,700, right, at least.

Once we get the Rajasthan, of course, for the first one year, because we will be absorbing fixed cost and because we will be ramping up our sales, the EBITDA per ton may fall. I think in the longer run, we should be able to maintain it at about 1,300, 1,400 blended.

Of course, absolute would be much much more because the overall volume growth will be much more in Rajasthan. Got it,

got it. Sir, can you share the fuel mix for FSA, AFR, biomass, spot, and other contracts?

For FSA, this quarter it is 78.5% and biomass is 21. 21.5%.

Spot would be 3%?

Spot this year we this quarter we have not done

any,

is any spot.

Okay. Sir, now in terms of the green share, how we want to increase the green share?

What's the current green share? Whatever because Q2 presentation after that there is no presentation, 24.3 megawatt WHRS and 51 megawatt TPP and that's right now we have, how we want to increase WHR, solar, and in terms of the green share and what's the current green share?

Current green share last quarter it is around 33.8%, okay, because WHR has generated more power than compared to the last quarter as well as last year. This quarter it was around 33.8%.

How we want to look at for the full-year FY27, this going up?

Maybe it will increase consider because this year the both kilns are running, it may be make consider 30, somewhere 30 to 33 whatever level we are seeing.

Got it.

Because actually what we've done is that we have not necessarily right now invested in any other sources of green energy like wind and solar, though we had planned to, but we have not because I think the rates in IEX for solar hours anyway are falling. Right, I don't think it makes more sense to kind of invest in non-core activities at the moment, and probably we are trying to have a group captive power agreement.

I think in case we do end up signing one, which should be in this quarter, then we will inform you in the next quarter.

AAC block and other non-cement revenue for this quarter and for full-year FY26 and how we want to look at FY27 and maybe the margin also if you can specify.

This quarter we have done around 17 crore, 17 crore of this quarter in AAC block and whole year it is around 43 crore.

This year... We're targeting about 150 crores.

This

includes AAC, RMC, and allied products. I think the margin that we're looking at is about 7% to 8% to start with, and then gradually we'd like to expand on the margin.

Right now we're trying to create a market first.

Got it. The QIP for Rajasthan that we will be the last time the stand once the net debt to EBITDA will be reaching 1.5, we'll go for a QIP.

I think that decision we still not have taken at the board level. We have, of course, taken the permission for raising money in the board, I think in quarter three we did that.

We haven't planned it also because the markets were, of course, a bit weak as well, right? I think whenever we do, we'll inform in advance and then, of course, we'll do it.

Got it. Thank you.

Hi, sir. Good afternoon.

I just wanted to know for your Rajasthan unit, which you are planning to, I think, from the conversations that I've heard, to start from '28, FY28-29, when are you planning to break even on that CapEx and the operational cost? When will you break even on those CapExes, sir?

This is the first question. The second one is regarding your realizations per ton, are you foreseeing some kind of improvement going forward with the unit that will be set up in Gujarat?

Because I believe that in Gujarat and western areas, the realization might be a little higher in case you set up a plant there at that time.

We are not thinking of Gujarat actually. I was saying Jorhat, not Gujarat actually.

Jorhat

is a place in Assam, yeah.

In Assam, yes, sir. Yeah.

Yeah. Just these two questions: the break-even on the CapEx in Rajasthan unit and the scope of increase in realizations per ton.

I think see break-even from an operating cost perspective or from an investment perspective, that is one thing which needs to be clarified, but I think what we're planning to do is that in a 3.5 to 4 years' time, we want to run at 80%, 90% capacity utilization.

Right, and

we would want to, of course, price our product in a way which is at a premium, right? What we'd want is that the highest price seller, we would want to peg it at Rs 5 to Rs 10 lower than that.

That's what we would want to operate. I think what we'll have to do in the first initial few years is invest in the brand, right, and create a kind of a pull which is a bit more natural than push, right, and then maintain a price and take a 4, 4.5, 3.5 years' horizon to take a capacity to 80 to 85%, right?

I think because the capacity that we're initially launching is about 5 million compared to the size of the market, this is not a little manageable, right? What we'd like to do is create a dense distribution, focus on branding, and push for sales.

Break-even automatically will happen.

The capacity for this unit will be how much, sir, for the Jorhat unit and Rajasthan unit?

Capacity for the Jorhat unit and Rajasthan unit. The capacity for the clinker plant will be about 3.3 million tons in Rajasthan along with a 2 to 2.5 million ton grinding.

Another grinding which will be supported by the clinker from Rajasthan will be in Haryana, which will be another 2 to 2.5. That is a 5 million ton setup in North.

Rajasthan and Jorhat will be coming around the same time as Umrangso and that will be basically about 2 million tons.

2 million ton of clinker unit?

Grinding. Jorhat has no limestone, it will be only grinding.

Umrangso

has clinker. Umrangso has limestone, you can produce clinker in Umrangso.

Perfect. Thank you.

Thanks a lot.

Thank you for the follow-up. Am I audible?

Yeah.

Yes. Sir, I wanted to understand the CC ratio for FY26.

It's about 66.6%.

For the full year, sir? Full-year FY26.

Oh, sorry,

for the full year. I don't have the data for full year, but I have it for quarter three as well, which is 67.5.

I'm assuming that the clinker factor would be between 66.6 to 67.5, I think, for the full year. I think you can get in touch with us and I'll give you the full-year data as well.

Sure. Sir, the second question is once we commission the Bihar grinding unit at Begusarai, we'll be, as you alluded to the fact that you'll be shipping the clinker from the Meghalaya plant to Bihar.

What would be the incremental freight cost that would be bearing on that? Correspondingly, the incentives what we wanted to accrue from the Bihar grinding unit, will it kind of offset that incremental cost is what I wanted to understand?

Right now,

we are still catering Bihar market. We cater in the east side of it, right?

What we do is that we serve it from Siliguri. I think the freight, you cannot only look at the clinker freight and how much incremental clinker freight that you'll be paying, but it also has to be looked at from the cement freight, right, and how much of cement freight we'll be able to save and the freight that we pay on fly ash, right?

I think it's a bit more complex than just the incremental freight that we'll be paying and if it gets offset by the incremental subsidy, right? I think so, but yes, we have applied for our subsidies in Bihar.

We should be getting the SGST benefit, and we have applied for it under the policy. I think the benefit is up to about 150% to 200% of the investment that one makes.

I think once we do get the confirmation of the benefit from the Bihar government, we will be sharing it with you in the next call. I think with the subsidies and with optimized clinker transportation and fly ash sourcing, I think it can be a model which, of course, will not give you EBITDA of 1,300, 1,400, but it will help you utilize your capacity while also leading to entering new markets and creating your geographical footprint.

Sure, sir. Thank you.

These were all my questions. Thank you.

Thank you. I believe there are no further questions from participants.

Tushar, I had a few questions. Firstly, on the war impact, the West Asia war crisis, most of the companies that have been India what they have been talking about is about kind of a Rs 400 overall impact in terms of operating cost by end of H1 FY27.

As far as Star Cement is concerned, I believe the impact would be limited to packing cost the diesel cost, and maybe the fuel cost may not be equally impacted because of our less dependence on imported fuel and also we are safe guarded from the rupee depreciation. From that perspective, what is your estimate of the broader cost impact which could be there in H1 for Star Cement per se in terms of the war?

I think there could be about Rs 250 to Rs 300 impact. I think mainly because of the packing bags and the fuel cost, because for us, of course, we do not depend on imported fuel, coal or petcoke, but we do depend on our FSAs being supplied on time.

Right now because of the rake shortages, the FSAs are not available and that is creating a crisis in terms of fuel sourcing. I think because of that, we have to go for higher rates of sources.

I think that is what is leading to a cost impact. I think it should be a Rs 250 to Rs 300 impact.

I think about Rs 7 increase in Northeast, about Rs 10 increase in North Bengal, basically to kind of partially, not fully, but partially nullify the impact which is coming in terms of the cost.

Is it fair to say that we are kind of a Rs 100 better off versus the mainland peers in terms of cost escalation, maybe Rs 50 to Rs 100 better off because of our less dependence on imported coal? It's

yes, but I think it really depends because I don't know if other people have forecasted a further increase in the diesel prices or not. It really depends on those assumptions and how the diesel prices behave, because I think Northeast is also quite heavily dependent on the fuel price and the per PTPK in Northeast is a bit higher because of the hilly terrain.

Right, the fuel cost equally impacts us as well. I think it really depends on how much does the diesel prices go up further.

Of course, if there's a significant increase in the diesel prices, then that will have to be absorbed by the market as well.

Okay. Tushar, you just mentioned that we have partially passed on the cost push impact.

Is it fair to say that Q1 we are kind of EBITDA dilutive on the cost because of the cost inflation, it's not neutralized yet in that sense?

I think the Q1 there will be definitely a pressure, right, on the EBITDA because of the cost. I think as we're going, I think April was quite heavy on the cost.

I think May is turning out to be a bit better. I think by June, I think it should normalize.

There will be a decent impact of whatever is going on on the EBITDA per ton as well and overall EBITDA as well.

You stick on to your guidance of 1,500 plus for Northeast operations per se, which you gave on the call, right?

I think that was more from a year-long perspective.

I think we should be... That's what I'm saying.

That's what. I think year-long we should be able to average that.

In quarter one, we'll have to see. Okay.

Tushar, my second question was that basically this is from more of a kind of a long-term perspective. Recently maybe a couple of more players, in total JK Lakshmi Cement, Shree Cement, and Ambuja Cements from mainland have now announced their entry to Northeast.

When we interact with our investors, etc., we get a feedback that they have a notion that Northeast EBITDA per ton per se or profitability per ton will dilute substantially once they enter into the market. I know that may not be the case because of their very high CapEx and Northeast is a very difficult geography to operate.

That is what I have kind of figured out. What is your say in terms of once they maybe three years down the line, it's a more of a long-term kind of a question, but maybe three years or four years down the line once they come in, do you see EBITDA per ton or maybe profitability of Northeast getting impacted heavily keeping in conjunction the high CapEx which they are spending in terms of their overall plants?

People have announced kind of upward $160, $170 CapEx per ton in Northeast. How do you read the situation once they come into the Northeast markets from a long-term perspective?

See, in the long run, once they do come in, I think there will be a significant pressure in the market, right, because everyone will be running and gunning for the same market, and the market is relatively small, right? Even a 3 million ton plant in a big market makes a big impact.

I think people who then are coming in, they also need to then think, right? Because, unlike North and unlike South where they put up capacities without caring about their impact on the market, right, everyone who comes into Northeast will have to think about their impact on the market and their own profitability.

Why are they entering in Northeast in the first place, right? Because it has a charm of a higher margin, right?

What would be the point of entering and putting in all that effort, right, if you cannot enjoy that higher margin, because volume definitely comes from outside.

No, but the question was that now they have already announced. Shree Cement has announced, JK Lakshmi has announced, Ambuja has announced,

obviously they... No, completely.

I think once they will enter also, because the the impact of their sales will not only impact when the price decisions

will not only impact, the entire market... Do you see that they will take such a price decision where it can impact you, because the kind of CapEx which they're spending, like a $170, $180 kind of a CapEx on a initial CapEx?

I don't know. I honestly don't know.

I think it depends player to player, because I think some players have a strategy to kind of just cut and aggressively sell and not care about their price positioning compared to ours. Then there are other players which are much more sensitive to it, right?

I do not see that there'll be significant because I think there has to be rationality which everyone follows. I think...

That's what I'm saying. That's what I'm trying to figure out.

Huh.

I don't think it should be that. Of course, there'll be pressure.

There's more competition, there'll be some pressure on them price. I think it's something that probably may happen for a year or two, but then I think it should normalize, because everyone's there to earn, I guess, right?

In terms of the trade penetration, will Star Cement be the highest of all the Northeast players in terms of the trade market penetration?

I think majority of our sales is in trade only. Out of all the players, we have the highest penetration in trade by far, by a big margin.

I think that is something that we want to maintain, right, because I think that's our strength.

That will also safeguard the profitability, right?

I think to an extent, because I think the trade market doesn't go by just flooding the markets, right? I think it's much more nuanced than that.

Great.

Last question to Manoj, sir. Manoj, sir, did we have any kind of one-offs in the quarter in terms of donations, etc., if you can just share?

One-off is there really because last quarter it is 5 Cr was there. In this year this quarter it is 10 Cr.

So, 5 crore is a one-off, you can say.

And 10 crore is a donation or what, you're saying? It's a donation?

It is a donation. It is a donation.

Okay. Now this one-off will stop, right, from Q1 onwards?

There would not be any one-off.

One-off because you can't foresee what will come,

okay? In terms of donations I'm asking.

In terms of

donations I'm asking. Yes.

I think in quarter one, there may be a few,

but

I think in quarter two, you should not be expecting any significant one-offs. Uh-huh, generally no.

Okay. Thanks a lot, Tushar, and thanks a lot, Manoj, sir.

There are no further questions from participants. On behalf of PhillipCapital India Private Limited, I'd like to thank the management of Star Cement for the call and also many thanks to participants joining the call.

Thank you very much, sir,

and Ryan, you

may now conclude the call. Thank you.

Thank you.

Thank you.