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Edited Transcript of JKLAKSHMI.NSE earnings conference call or presentation 7-Aug-19 10:30am GMT

Q1 2020 JK Lakshmi Cement Ltd Earnings Call

New Delhi Aug 19, 2019 (Thomson StreetEvents) -- Edited Transcript of JK Lakshmi Cement Ltd earnings conference call or presentation Wednesday, August 7, 2019 at 10:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Sudhir Anna Bidkar

JK Lakshmi Cement Limited - CFO

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Conference Call Participants

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* Kamlesh Bagmar

Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst

* Milind Raginwar

Centrum Broking Limited, Research Division - Analyst

* Pradnya Ganar

Motilal Oswal Securities Limited, Research Division - Research Analyst

* Prateek Kumar

Antique Stockbroking Ltd., Research Division - Analyst

* Prateek Maheshwari

AMBIT Capital Private Limited, Research Division - Associate

* Rajesh Kumar Ravi

HDFC Securities Limited, Research Division - Research Analyst

* Ronald Siyoni

Sharekhan Limited, Research Division - Research Analyst

* Swagato Ghosh;Franklin Templeton;Analyst

* Vaibhav Agarwal

PhillipCapital (India) Pvt. Ltd., Research Division - Research Analyst

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Presentation

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Operator [1]

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Ladies and gentlemen, good day, and welcome to the Q1 FY '20 Conference Call of JK Lakshmi Cement, call hosted by PhillipCapital (India) Pvt. Ltd. (Operator Instructions)

I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Pvt. Ltd. Thank you, and over to you, sir.

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Vaibhav Agarwal, PhillipCapital (India) Pvt. Ltd., Research Division - Research Analyst [2]

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Thank you, Sanford. Good evening, everyone. On behalf of PhillipCapital (India) Pvt. Ltd., we welcome you to the Q1 FY '20 call for JK Lakshmi Cement. On the call, we have with us Mr. Sudhir Bidkar, CFO at the company.

And at this point of time, I'll hand over the floor to Mr. Bidkar for opening remarks followed by interactive Q&A. Thank you, and over to you, sir.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [3]

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And good afternoon, ladies and gentlemen. Welcome to Q1 call for JK Lakshmi Cement. Results you would have broadly seen. Just to recap a few key figures. We had our total sales for the quarter, stood at about 23.3 lakh tonnes as against 22.87 lakh tonnes, which we recorded in the corresponding quarter of last year. A marginal growth of 2%, but what is important therein is what we want to highlight is, last year, we had sold much higher clinker quantities. So if one were to go purely by the cement quantity, in this quarter, our sales -- cement sales were 22.18 lakhs, which shows a 11% growth over what we had 20.23 lakh in the corresponding quarter of last year. And realizations were obviously better because we've been able to pass on some cost impact on the consumers. And the operating profit for the quarter stood at INR 175 crores as against INR 104 crores in the corresponding quarter of last year.

And after providing for interest and depreciation, interest was INR 40 crore and depreciation INR 45 crore. PBT was INR 90 crores as against INR 15 crores in the corresponding quarter. And then we had to -- this important item has an exceptional because you would all know that there's an asset conveyor belt, which we have been trying to put in place at our Durg cement plant, but somehow or another it has been languishing for quite some time for a small piece of land, which we have not been able to acquire.

So as a result, the carrying cost over the period because of the capitalization of the interest and some pre operatives, was much higher than the expected benefit over the economic life of that plant. So there was necessary to put some impairment, otherwise, which would have come by way of depreciation over the -- in future years. That's sort of a preponement of depreciation only. So that INR 30 crores goes therefrom. So after exceptional item, it is INR 60 crores. And then after tax, it is INR 40-odd crores.

There have been improvement in the margin, which were around 16% as against 10% in the corresponding quarter. And what is important in this quarter is that we have commissioned the thermal power plant of 20 megawatts. And then Orissa grinding unit is also likely to be commissioned by the end of this quarter. So all these projects would be now behind us, and we have been able to improve. The debt/equity, you would have seen our debt/equity has considerably improved from 1.39 to 1.06 as of 31st March '19. There have been some repayment in this quarter, and it will further go down before we embark on any fresh expansions.

That broadly are my opening remarks, I can now throw the floor open for question and answers, please.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question is from the line of Kamlesh Jain from Prabhudas Lilladher.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [2]

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Sir, in this other expenses...

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Operator [3]

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Excuse me, this is the operator. I'm sorry to interrupt, Mr. Jain, we would request you to use the handset, please?

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [4]

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Sir, how much onetime we have booked in this particular other expenses?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [5]

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Actually, in this other expenses, an amount of about INR 26 crores, INR 27 crores is there, which is a onetime expense as other expense, primarily consist of -- consisting of two things: one, about INR 20-odd crores is the consultancy fees, which we have paid to the BCG who have been advising us, and that is one time, INR 20 crores; and another INR 5 crores to INR 6 crores is donation. So these are the 2 onetime exceptional items, which have been booked as other expenses. You're right.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [6]

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But, sir, even in the prior years, we have booked similar items for the consultancy payment.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [7]

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Those are normative. Those are abnormal, that's why. Those are also booked there, but whatever was pertaining to the last year was only a very small amount. But this year, they're completing that exercise so major portion has come in this quarter.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [8]

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Sir, regarding what particular activities that this consultancy charge is being paid?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [9]

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Overall, we have taken them as adviser for our logistic cost improvement.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [10]

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Okay. But has this -- because even over the years, we have not realized significant savings in terms of freight costs, but...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [11]

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It's your assumption, but they have done -- that is your assumption, but our -- to our knowledge and to our knowledge, as I mentioned, the benefit is much higher than what costs we have to bear for that. And earlier years, they have just been ended last year. There are no earlier years. They have just been assigned. They have just completed 1 year, so we can't correlate to our freight cost or what they have been or they have not been able to deliver in the past because they were never there. It is now only there, and the exercise, if we engage consultant then don't deliver overnight, but gradually, this -- things start improving and benefit are derived, and that you will see going forward.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [12]

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Okay. And lastly, sir, how much [realization fall] has been there in this month vis-a-vis quarter severance like April to June and vis-a-vis June -- July which has gone through?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [13]

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July figures, I don't have readily, but there have been some because of the monsoon season. Obviously, this is a yearly phenomenon, which always happens that on the onset of monsoon, there's some weakening of the prices.

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Operator [14]

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(Operator Instructions) The next question is from the line of Rajesh Ravi from HDFC Securities.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [15]

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Congratulations on good set of numbers. On this recent decrease, what was the number paid in Q4 and FY '19?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [16]

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INR 5 crores, maybe there.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [17]

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Total of INR 5 crores in FY '19 and all of that could have come in Q4?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [18]

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Yes.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [19]

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And sir, what are the news spending, FY '20, what is the total amount to be booked?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [20]

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Maybe another INR 4 crores, INR 5 crores.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [21]

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Okay. And thereafter, there are no recurring cost that would come out?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [22]

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Correct.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [23]

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Okay. And sir, what would be the clinker and cement production for Q1?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [24]

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Sorry, come again.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [25]

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Cement and clinker production this quarter?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [26]

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Production you want, not the sales?

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [27]

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Sales you've already shared, right, INR 22.1 lakhs.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [28]

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Yes, yes. The sales revenue, you're right, INR 22.18 crores was the sales and 1.12 was the clinkers sales.

Production -- total production was -- clinker production was 16.37 and cement production was 20.74.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [29]

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And this is standalone, not including the...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [30]

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These are standalone.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [31]

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Okay. And purchase of credit goods is rising. So what -- and this is purely on account of more of the cement from Udaipur being sold as JK Lakshmi brand?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [32]

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It is basically, we have to tried to improve the -- rationalize the production and the marketing of JK Lakshmi as well as Udaipur. So if someone wants to sell something in Gujarat, obviously, they source it from our grinding unit in Surat and Kalol. And similarly, if we want to sell more towards the north, then we sources from there.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [33]

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Okay. Okay. So this incremental volume is what the purchase volumes you must have sold taking from them?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [34]

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Yes. Yes.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [35]

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And sir, full year, what is your -- now volume growth you're looking at?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [36]

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We should be around 10%.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [37]

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10% volume growth, including clinker. Like last year, we did 9.7 million tonnes.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [38]

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No. No. No. We are talking about cement. As we have done in this quarter, there's [11%] growth. Including clinker, it may not happen because we will be what we had told last time also that slowly early till last year, you would have seen that our clinker sales used to be higher, if we're reducing.

So I guess, in this quarter, there has been a sharp drop in the clinker sale also. Clinker sale was down by almost 60%. And 11%, it is cement-to-cement, not on total, including clinkers.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [39]

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So this is 1 lakh run rate, we'll continue or even that can come down further as you step up your cement production?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [40]

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Depending on the market and how we want to go about it, it may. It's difficult to say, yes or no. But it may, that is what I...

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [41]

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Right, sir. I agree, sir. And lastly, in terms of CPP, now that you have commission, what sort of cost savings, on a quarterly basis, we should be modeling?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [42]

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Quarterly basis, we should see -- cost savings should come from third quarter and fourth quarter. But real cost savings for that will come next full year when -- only after 12 months when you're done -- entered into that fuel supply agreement and all that. As the savings may not be substantial, but some savings would definitely start trickling in.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [43]

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Sure. And on full-term basis, next year, with fuel increases all in place, what sort of...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [44]

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We see INR 40 to INR 50 savings in that power cost.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [45]

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INR 40 to INR 50 at the [Eastern] operations?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [46]

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No, in our Eastern operations, you're right.

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Operator [47]

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(Operator Instructions) The next question is from the line of [Ritesh Seth] from [Crystal Limited].

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Unidentified Analyst, [48]

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First question on your volume numbers for this quarter. So can I know the volume numbers for last quarter, what were they, cement volume numbers?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [49]

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The corresponding quarter was 20.03 and clinker was 2.84. Total 20.87.

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Unidentified Analyst, [50]

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Right. And last year, it was 20.23, the cement sales?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [51]

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20.03 and 2.84 clinker, totaled 22.87.

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Unidentified Analyst, [52]

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Okay. And I'm asking about the fourth quarter, what was the volume number?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [53]

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Fourth quarter, I don't -- we would have already given earlier. I don't have readily here. We're talking about comparison with the corresponding quarter.

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Unidentified Analyst, [54]

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No, I was just trying to calculate the realization for this quarter and how it has grown quarter-over-quarter so if you can give me that number that should also be...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [55]

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You can take it separately from me. I don't have readily...

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Unidentified Analyst, [56]

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Okay, no problem. Sir, but if I calculate around 8% volume growth for JK Lakshmi. In terms of volumes, it is 10% Y-o-Y growth in volumes?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [57]

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Yes, in cement.

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Unidentified Analyst, [58]

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And when we compare this to the other peers compare, we have seen flat to marginal decline. So definitely, you're gaining share. But from -- in which regions that basically you're gaining share? And what is getting to over that market share gain?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [59]

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Yes, basically, readout question was regarding the fourth quarter. You wanted some figures? Yes. It was -- cement sales was 26.25 and clinker was 2.09, the total -- and then there were some trading, so 27.3 was the cement, 27.3 and 2...

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Unidentified Analyst, [60]

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Okay. And regarding the market share gains, progression on market share gain.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [61]

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Sorry, come again.

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Unidentified Analyst, [62]

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So my question was, you have been y-o-y growth for this quarter in volumes, cement volume, versus your peers, we have seen flat to marginal decline for this quarter. Definitely, sir, you're gaining market share quickly. Which region you are gaining? And what could be the reason?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [63]

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This is basically because of some brands which we have launched last year. And obviously, closer to home, we're gaining. So that is helping us there in reducing those freight costs as well.

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Unidentified Analyst, [64]

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Okay. So this means you're gaining in north?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [65]

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Yes. And basically Rajhastan and Gujarat.

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Unidentified Analyst, [66]

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Okay, and what could be the reason, sir...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [67]

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I think there's new launches of the various brands, which have happened, that is in Heavy Duty and then JK SIXER last year after the IPL somewhere, during the year, we had launched. So that has started, came into market only from October onwards. So earlier there was a single brand plus our PRO+ is there. All these are normal and JK Lakshmi brand is already there mostly helping us.

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Unidentified Analyst, [68]

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Okay. And coming a couple of players in north with effort. It has started becoming more of price-focused rather than volume-focused. So maybe their nontrade sales are not as much as they were doing. So are you gaining some market share and specifically in nontrade segment?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [69]

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No, it's -- well, trade and nontrade, both are growing.

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Unidentified Analyst, [70]

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Okay, but are you seeing a trend? Are you seeing the difference that your peers are not that volume-focused, and you're gaining share because of that? Or you would just attribute to -- the sales to new brands?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [71]

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I would attribute to the new brands. In fact, if one were to see what is the position as far as the trade/nontrade is concerned, then, in fact, in this -- basically, overall, there has not been a major change, but we have 64% trade and 36% nontrade. So that is a big shift from what we were earlier about a year back or so.

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Unidentified Analyst, [72]

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Okay. So what was the numbers a year earlier?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [73]

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Maybe 1 year back, it could have been around 60, 40 also.

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Unidentified Analyst, [74]

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Okay. And sir, if you can help me out with the industry volume growth for the regions, which you're exposed to specifically for the first quarter. Any range would be fine? I'm not asking...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [75]

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Now the CMA doesn't collate any figures after the PCA directive. But based on under -- our understanding, there has been some degrowth of flattishness. That is what our belief is.

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Unidentified Analyst, [76]

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That is across the region?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [77]

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Yes. [Both the regions] we operate, which is basically the north and the east.

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Unidentified Analyst, [78]

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Okay. And on the pricing, so we have...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [79]

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On India basis that was explained in this quarter, we're talking of a degrowth of 2%.

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Unidentified Analyst, [80]

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On India basis?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [81]

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On India basis.

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Unidentified Analyst, [82]

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Okay. And are you seeing, sir, any pricing pressure in July? And if you can quantify how much of this?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [83]

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This normative trend in the monsoon season, it always happens. Nothing new.

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Unidentified Analyst, [84]

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Okay. Around 2%, 3% decline, if I can quantify that?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [85]

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Similar to it, but some softening always happen.

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Operator [86]

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(Operator Instructions) The next question is from the line of Swagato Ghosh from Franklin Templeton.

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Swagato Ghosh;Franklin Templeton;Analyst, [87]

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Sir, last year, the clinker sales that we had that was to other cement players? Or is it to our Udaipur unit? Can you give some color on that?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [88]

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It was to other cement player. Udaipur already had commissioned last year, so there was nothing in the supply to Udaipur.

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Swagato Ghosh;Franklin Templeton;Analyst, [89]

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Okay. So no, sir, I'm -- and these clinker sales would be at a very low margin. Is that understanding right?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [90]

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I don't know what is the definition of low margins, but whatever is it, we sell at the market price. There's no question of low or high margins. Whatever market prices is there, we sell clinker at that price.

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Swagato Ghosh;Franklin Templeton;Analyst, [91]

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Okay. So the definition would be was it higher or lower than a cement per tonne margins?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [92]

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Obviously, cement per tonnes margins are higher than the clinker. Otherwise, everybody will be selling only clinker.

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Swagato Ghosh;Franklin Templeton;Analyst, [93]

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Yes. So in that case, I'm just trying to understand, last year was such a high-volume growth year for the industry. So why were we selling clinker and not selling cement?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [94]

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Where? Sorry, come again.

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Swagato Ghosh;Franklin Templeton;Analyst, [95]

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Why were we selling this volume of clinker, whatever that full year volume was, because everyone was growing at double-digit cement volume, so the demand was there. So why were you not converting this clinker also to cement and selling it?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [96]

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Also, last year almost 16% growth -- we had recorded 16% growth last year, also, this -- overall basis.

And in cement, in the fourth quarter, our growth at 33% was the highest in the industry.

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Swagato Ghosh;Franklin Templeton;Analyst, [97]

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Okay. And sir, full year cement growth was how much?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [98]

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16%, last year. I have all the numbers.

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Swagato Ghosh;Franklin Templeton;Analyst, [99]

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Okay. Okay. And sir -- okay then, that's fair. And sir, what is the -- like outlook for the industry for the full year, like you said, your guidance is around 10%. For like your core markets, for the industry, what would be the outlook?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [100]

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We think it should be around -- if not -- it may not be -- certainly would not be double-digit growth, but would be certainly 8%, 9%. We expect the demand to bounce back after the current monsoon quarter.

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Operator [101]

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(Operator Instructions) Next question is from the line of Ronald Siyoni from Sharekhan.

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Ronald Siyoni, Sharekhan Limited, Research Division - Research Analyst [102]

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I had just one question. Due to higher cement sales, your realizations have improved by about 11% Y-o-Y; and 12%, sequentially. Additionally, the power and fuel cost has also increased by about 10%, sequentially, so this per tonne cost per power and better realization would be continuing going on because you would be selling more of cement and less of clinker?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [103]

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It's 11% or whatever you're saying is the realization improvement that is based on the market. If the market is giving then only it can happen, but certainly, power and fuel, if there is a reduction, so will it continue. And there have been some softening of the pet coke prices also going forward. So we would see.

I'm not too sure about realization growth, but -- or the increase, but certainly, power and fuel saving would be there in coming quarters.

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Ronald Siyoni, Sharekhan Limited, Research Division - Research Analyst [104]

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But I think there was about a sequential jump of about 10% to about 959 per tonne on like-for-like basis. So actually, sequentially, there has not been savings, so I think more of cement production has led to increase in power cost per tonne?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [105]

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Basically, also to do with the fact that now with the opening of the pet coke prices, we'll see some softening in the power and fuel cost going forward.

I'm not sure about the realization improvement in the coming quarters. As I mentioned in a response to earlier question that there has been -- in this quarter, there are always softenings which happens in the realization because of the monsoon season and the positivity of demand.

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Operator [106]

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(Operator Instructions) The next question is from the line of [Sandeep Chaturvedi], an individual investor.

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Unidentified Shareholder, [107]

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So my question is on composite cement. I've heard about the composite cement being launched by the company in the Northern and Western market.

Sir, could you give a sense of where would you be sourcing this slag? And what would the pricing be like that compared to a normal PPC?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [108]

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Basically, we would be -- this composite cement is a blending of slag as well as the flash. But that is mostly happening in the Eastern market.

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Unidentified Shareholder, [109]

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Eastern market. Okay, sir. Nothing in Northern and Western market?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [110]

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So not much in the north and -- maybe Western, they're doing it Eastern -- the Durg plant only, but not to that extent. (inaudible)

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Unidentified Shareholder, [111]

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And where will we be sourcing the slag from?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [112]

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We have nearby, Bhilai Steel Plant is there.

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Unidentified Shareholder, [113]

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Okay. Sir, as compared to the PPC, what could be the pricing of this product?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [114]

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It's slightly higher of...

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Unidentified Shareholder, [115]

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Slightly higher than the PPC?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [116]

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Yes.

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Unidentified Shareholder, [117]

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Sir, one more question on your premium product JK PRO+. What could be the percentage of trades sales happening from JK PRO+?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [118]

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It will be around 15% to 18%.

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Unidentified Shareholder, [119]

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15% to 18% of trade sales would be in a premium production?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [120]

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Yes.

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Operator [121]

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(Operator Instructions) The next question is from the line of Pradnya Ganar from Motilal Oswal.

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Pradnya Ganar, Motilal Oswal Securities Limited, Research Division - Research Analyst [122]

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Sir, you mentioned you have the -- picked some amount of debt this quarter, and you'll be paying some more in the future. So if you could quantify how much you've repaid this quarter? And for the remaining year, what's the plan?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [123]

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Every year, we repay about INR 200 crores to INR 220 crores to INR 230 crores. So it's about INR 50 crores to INR 60 crores per quarter.

--------------------------------------------------------------------------------

Pradnya Ganar, Motilal Oswal Securities Limited, Research Division - Research Analyst [124]

--------------------------------------------------------------------------------

Okay. And sir, CapEx for the year will be like...

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [125]

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There would hardly be any CapEx because most of the CapEx is behind us now, only some remain portion of that Orissa grinding unit would be there. So this year, we will not see much more -- maybe INR 75 crores, INR 80 crores, that's all.

--------------------------------------------------------------------------------

Operator [126]

--------------------------------------------------------------------------------

(Operator Instructions) The next question is from the line of Prateek Kumar from Antique Stock.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [127]

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Sir, just to clarify on clinker sales during the quarter was 1.12 lakhs?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [128]

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Right.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [129]

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Sir, what was clinker purchase? Like last quarter, we had some clinker purchases also.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [130]

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The same amount, around that.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [131]

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Around 2 lakh?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [132]

--------------------------------------------------------------------------------

Around same amount. Clinker -- what you're talking of clinker purchase?

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [133]

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Yes.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [134]

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Clinker purchase, just a minute.

Just a minute. Around 1 lakh 12,000.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [135]

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1 lakh 12,000, which is the same number as clinker sales?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [136]

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Almost same.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [137]

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And sir, is there any one-off in employee cost also that things have also gone up 20%-odd, q-on-q, year-on-year?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [138]

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Two things. One, basically, the normative increase payments are there. And based on the expected profit for the year, we would also -- the last 2 years, we've not been able to pay any commission to the

(technical difficulty)

that may -- they may also get that vision. So...

--------------------------------------------------------------------------------

Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [139]

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Sorry, couldn't get the second part?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [140]

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Commissioned to be managerial personnel.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [141]

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Okay, so that was part of Q1 results?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [142]

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Yes, because then -- that, obviously, we'll get to know only at the end of the fourth quarter. But knowing what is expected, profitability, what we expect when we start bookings pro-rata for each quarter instead of booking the commission in the final quarter only.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [143]

--------------------------------------------------------------------------------

Okay. And what is the current net debt position, sir?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [144]

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Net debt would be -- our -- about INR 1,500 crores of gross debt and about INR 400 crores of cash.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [145]

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The stand-alone and on consolidated basis?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [146]

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You add another 500 there to [800 525].

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [147]

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Okay. And sir, one question on RMC revenues for the quarter, which is generally here.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [148]

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RMC we -- just a minute. RMC we have done in this quarter about INR 42 crores.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [149]

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And sir, regarding these Orissa grinding units, when is the expected scheduled timeline now?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [150]

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In this -- by the end of this quarter, it should be in place. We'll start the trial runs in the first week October.

And that got further delayed because of the Cyclone Fani.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [151]

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Understood. And this donation as you mentioned is related to that electoral funds during the quarter?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [152]

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Some portion there to, some to our own university and hospital.

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Operator [153]

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The next question is from the line of Milind Raginwar from Centrum Broking.

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Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [154]

--------------------------------------------------------------------------------

Sir, in terms of -- you indicated that the premium products are now at about 15-odd percent of the total sales?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [155]

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Paid sales.

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Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [156]

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Paid sales. So what would be the premium that we will be getting vis-à-vis of a normal listing?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [157]

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About INR 10 to INR 12 back.

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Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [158]

--------------------------------------------------------------------------------

Okay. This is across the regions? Or...

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [159]

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Obviously, it cannot be same for all the regions, but average is that.

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Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [160]

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Okay, okay. And sir, the annual report mentions that our Durg facility was at 100% capacity utilization? So that continues for the quarter? Or this time, it is like -- because the volumes overall have been this -- because of the elections and all that, that is...

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [161]

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That has been slightly lower in this quarter. And yes, what you are saying is right, last year, it was full. And this year, it was not 100%. It's around 90%.

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Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [162]

--------------------------------------------------------------------------------

Okay. Okay. And sir, now further tell us, what would be our fuel mix?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [163]

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In fuel mix, we're doing about 80%, 85% pet coke in this -- our Northern operation -- Sirohi operation. And there, it is about 60%, 65%.

--------------------------------------------------------------------------------

Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [164]

--------------------------------------------------------------------------------

Any marked change, sir, over the period?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [165]

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No. No. No marked change. That is in the trend.

--------------------------------------------------------------------------------

Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [166]

--------------------------------------------------------------------------------

Okay. Sir, in the line items, again, I'm just looking at the employee provisions, that's jumping like about 22-odd percent on a year-on-year basis. Anything specific is going there?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [167]

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Some new recruitments are there. Other than that, normative plus, as I mentioned in response to earlier questions, some provision for the commission for the managerial personnel

--------------------------------------------------------------------------------

Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [168]

--------------------------------------------------------------------------------

Okay. Okay. All right, sir. And sir, beyond maintenance, there's no CapEx, that's what you had mentioned, right?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [169]

--------------------------------------------------------------------------------

Yes, the remnant of whatever Orissa remains a bit of it. And other than maintenance, there's nothing much lined up.

--------------------------------------------------------------------------------

Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [170]

--------------------------------------------------------------------------------

Okay. And following these provisions that we've made for the conveyor belt, how should we look at that assignment as a whole as whether that work will be continued? Or we have -- we're rethinking it on the table again as to what -- how to go ahead about this?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [171]

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There's not going to be any rethinking. We've already invested over INR 130 crores in that, and it is only a matter of time before we get that land clearance, which we're hoping -- we're expecting in this quarter. And if that happens, then we're in full swing to complete that conveyor belt, which may take about 9 to 10 months, once we have the land in possession.

But looking at the impairment, yes, in this first quarter, we have provided for something. And we may take a final call in the final -- fourth quarter.

--------------------------------------------------------------------------------

Milind Raginwar, Centrum Broking Limited, Research Division - Analyst [172]

--------------------------------------------------------------------------------

Okay. Sir, any tax benefit will come because of this -- anything is slowing in the tax part of it?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [173]

--------------------------------------------------------------------------------

Because if we're providing as an exceptional item, it helps you to [make it] stable on the book profit. And book profit is lower to that extent.

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Operator [174]

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The next question is from the line of Swagato Ghosh from Franklin Templeton.

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Swagato Ghosh;Franklin Templeton;Analyst, [175]

--------------------------------------------------------------------------------

Sir, just following on the last question, the east clinker utilization is more than -- was more than 100% last year, right? That's what you said?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [176]

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Total, we were operating at close to 100%, yes.

--------------------------------------------------------------------------------

Swagato Ghosh;Franklin Templeton;Analyst, [177]

--------------------------------------------------------------------------------

Yes. So this year, my growth in the east side would be limited. Is that understanding right?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [178]

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So you can always grow if your clinker isn't constraint by two things: one, if you're selling clinker is stopping that, as we've done, or you would have seen our clinker sale going down; and two, by increasing the blending. So these are the 2 avenues through which, unless there's an improvement or increase in the capacity of the clinker.

A third option, which could be far fetched, it is to source clinker from outside that can drive. These are the three. So we'll explore all the three.

--------------------------------------------------------------------------------

Swagato Ghosh;Franklin Templeton;Analyst, [179]

--------------------------------------------------------------------------------

Okay. So last year, there was a clinker sales in the Eastern operations.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [180]

--------------------------------------------------------------------------------

Little bit. Mostly, it used to be in north, but there has been some.

--------------------------------------------------------------------------------

Swagato Ghosh;Franklin Templeton;Analyst, [181]

--------------------------------------------------------------------------------

Okay. And for the blending thing, our Orissa will help us in selling more of PSC?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [182]

--------------------------------------------------------------------------------

Yes. Yes. Yes. Blending will improve only with the grinding unit. But the basic purpose of grinding unit you know, and that is mostly to increase the blended sales because if we can source slag or flash from nearby source then move only the clinker, that helps you to say on the logistic cost as well. So that should improve.

--------------------------------------------------------------------------------

Operator [183]

--------------------------------------------------------------------------------

The next question is from the line of Prateek Maheshwari from AMBIT Capital.

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Prateek Maheshwari, AMBIT Capital Private Limited, Research Division - Associate [184]

--------------------------------------------------------------------------------

Sir, on your clinker front, you said that for the last year, in the Eastern operation, it was around 100%. And there could be some growth of around 10% by converting the clinker sales into cement.

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [185]

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That is 12% for the company, I didn't answer that for the Eastern zone.

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Prateek Maheshwari, AMBIT Capital Private Limited, Research Division - Associate [186]

--------------------------------------------------------------------------------

No. No. No. Overall for the company, I'm saying. So sir, for further growth, sir, if we have to look at -- also at FY '21, will you be looking at some de-bottlenecking or expansion of a grinding unit?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [187]

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That is our continuous process that will continue, and then we may take some -- take up -- we may announce towards the end of this financial year some brownfield.

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Prateek Maheshwari, AMBIT Capital Private Limited, Research Division - Associate [188]

--------------------------------------------------------------------------------

Okay. Okay. And sir, after the land clearance, if it comes in for the rail siding this quarter, how much time would it take for the new siding because we're also starting Orissa unit?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [189]

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I didn't say about the land clearance for the railway siding. I said land clearance for the conveyor belt. Not railway siding. Railway siding is not in the anvil as of now. It will come when we expand further. As of now, it is 100% road transport.

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Prateek Maheshwari, AMBIT Capital Private Limited, Research Division - Associate [190]

--------------------------------------------------------------------------------

Okay. And so sir...

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [191]

--------------------------------------------------------------------------------

Also, planned for the conveyor belt, which is getting -- has been pending for such a long time.

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Operator [192]

--------------------------------------------------------------------------------

The next question is from the line of Rajesh Ravi from HDFC Securities.

--------------------------------------------------------------------------------

Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [193]

--------------------------------------------------------------------------------

I missed few of the comments in between maybe you would have answered. What was the RMC sales in this quarter?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [194]

--------------------------------------------------------------------------------

INR 42 crores.

--------------------------------------------------------------------------------

Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [195]

--------------------------------------------------------------------------------

INR 42 crores?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [196]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [197]

--------------------------------------------------------------------------------

And sir, fuel cost trend what we have seen in Q1, your pet coke fuel cost versus Q4?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [198]

--------------------------------------------------------------------------------

In this quarter, our cost was about INR 7,800 as against INR 8,100 in the fourth quarter.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [199]

--------------------------------------------------------------------------------

And Q2, what are the cost trend you're currently experiencing?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [200]

--------------------------------------------------------------------------------

Full effect of that could come in the subsequent quarter, but at least, we see about INR 200. So should see.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [201]

--------------------------------------------------------------------------------

And even in Q3, we would see the benefits from the recent following of pet coke prices.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [202]

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Yes. It may not happen because of the inventory, which we always carry. It may not impact in the same quarter, but cascading impact could be there in the coming quarter. So the time lag is at least one quarter of the -- but the market sales today in respect of the, especially, the coal and the pet coke prices but to get reflected in our P&L.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [203]

--------------------------------------------------------------------------------

And sir, you also discussed on the slag pricing change. What has been that, sir? Because now with Orissa grinding unit that will become an important raw material for you?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [204]

--------------------------------------------------------------------------------

Sorry, come again? I couldn't catch you.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [205]

--------------------------------------------------------------------------------

This slag pricing trend how have cooled off in this quarter?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [206]

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Those have also softened. They had peaked out in between to abnormal levels. Those have also softened.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [207]

--------------------------------------------------------------------------------

Okay, and by how much if you will just quantify, INR 200, INR 300 per tonne size?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [208]

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No, it is much higher than that. The softening is much higher than -- because they had almost jumped to over INR 1,000 per tonne, considerably softened.

--------------------------------------------------------------------------------

Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [209]

--------------------------------------------------------------------------------

Okay. And lastly, on the clinker purchase that you have -- you may have done from Udaipur or other sources in Q1?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [210]

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Udaipur. Basically, Udaipur.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [211]

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How much that would be, sir?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [212]

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1.12 lakh.

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Rajesh Kumar Ravi, HDFC Securities Limited, Research Division - Research Analyst [213]

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Okay. Marginal only?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [214]

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Yes. Marginal only.

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Operator [215]

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The next question is from the line of Kamlesh Jain from Prabhudas Lilladher.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [216]

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Just reading from your annual report, sir, you have mentioned that the Durg plant is all geared up to increase the clinker production by 25% in the coming year. So what's that all about, sir? Because on a 100% deflation, we're talking about another 25% improvement in clinker production.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [217]

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That will be through some bottlenecking, as I mentioned, in response to some earlier questions, some bottlenecking we always do. So there could be some possibility of some bottleneck improvement in the -- with marginal, hardly any major investment to quantify for that, but some debottlenecking can help us to improve that production.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [218]

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So around 25% increase could happen here in a year's time?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [219]

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Yes, it should. 20% to 25% could be there. You're right.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [220]

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Okay. And lastly, sir, on this consultancy part. So how much can we take it on a recurring basis, like every year, we're going to spend this much amount.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [221]

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This is only one time. I don't see that getting expensed in the coming year or quarter for that matter.

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Kamlesh Bagmar, Prabhudas Lilladher Pvt Ltd., Research Division - Research Analyst [222]

--------------------------------------------------------------------------------

Okay. And how much savings are we seeing from that, like, if you can quantify like sales?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [223]

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It's difficult to quantify. That is already reflected in our freight and logistic cost.

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Operator [224]

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The next question is from the line of Prateek Kumar from Antique Stock.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [225]

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Sir, just on pricing trend in the Eastern market. So is the -- are the current prices, in Eastern market, in June, July are like similar to what were the prices in March before the hikes were taken? Or they're much higher than that?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [226]

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Sorry, come again, I couldn't catch it.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [227]

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Prices -- cement prices in trade -- nontrade segments in month of June, July, are they at now similar levels as March when the price hike started? Or are they much higher than that?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [228]

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They're marginally higher because the softening has not been to the extent of the increase.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [229]

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So like marginally, is it possible to have a number there? Or...

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [230]

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Difficult to say, but there have been some softening.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [231]

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Okay. And how much was the traded volumes this quarter in our cement stage?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [232]

--------------------------------------------------------------------------------

Sorry, come again?

--------------------------------------------------------------------------------

Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [233]

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Sir, how much was the traded volumes in cement sales -- I mean purchase of -- I mean what we buy from outside -- I mean from UCWL sale?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [234]

--------------------------------------------------------------------------------

It's about 1.71 factor.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [235]

--------------------------------------------------------------------------------

Okay. And sir, regarding this recent -- you mentioned there could be another INR 200 reduction in the fuel costs. So overall, with the recent fallen fuel prices, what is the quantum of saving it can come through, let's say, if they sustain at these levels? Over the next 2, 3 quarters?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [236]

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It will happen -- this current fall will get reflected in the third quarter. And INR 200 savings will be based on our consumption power, and fuel consumption will give us whatever normative savings should be there.

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Prateek Kumar, Antique Stockbroking Ltd., Research Division - Analyst [237]

--------------------------------------------------------------------------------

So you said INR 200 per tonne on cement or fuel reduction, you said?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [238]

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It cannot only be on cement. It is on fuel cost. INR 200 on fuel cost. If my fuel cost like was INR 8,000, INR 8,100 in the fourth quarter, those came down to INR 7,800 per tonne of fuel, I repeat. So that per tonne of fuel, not INR 200 per tonne of cement cost.

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Operator [239]

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The next question is from the line of [Ritesh Seth] from [Crystal Limited].

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Unidentified Analyst, [240]

--------------------------------------------------------------------------------

One follow-up. Can you provide, sir, region-wise breakup of sales?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [241]

--------------------------------------------------------------------------------

No, we don't.

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Operator [242]

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Ladies and gentlemen, we'll take the last question from the line of [Sandeep Chaturvedi], an individual investor.

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Unidentified Shareholder, [243]

--------------------------------------------------------------------------------

Sir, this regarding your Northern and Western operations. Sir, could you give me a hint of what could be a blended percentage, trade-blended percentage and nontrade-back percentages?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [244]

--------------------------------------------------------------------------------

So it's basically 60%, 64%, as I mentioned, is trade, and balance is the nontrade.

--------------------------------------------------------------------------------

Unidentified Shareholder, [245]

--------------------------------------------------------------------------------

And sir, blended percentage?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [246]

--------------------------------------------------------------------------------

The blended would be about -- would be around 60, 50 -- 40.

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Unidentified Shareholder, [247]

--------------------------------------------------------------------------------

60 blended and 40 OPC?

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [248]

--------------------------------------------------------------------------------

In east, it is a much higher: blended is 80%.

--------------------------------------------------------------------------------

Unidentified Shareholder, [249]

--------------------------------------------------------------------------------

Okay, sir. And sir, what was your blended share in trade?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [250]

--------------------------------------------------------------------------------

I don't have so much detail.

--------------------------------------------------------------------------------

Unidentified Shareholder, [251]

--------------------------------------------------------------------------------

And if you could just give me a hint of it what is the blended shift.

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [252]

--------------------------------------------------------------------------------

Blended shift, that is -- 64% is trade and 36% is nontrade. And in nontrade, generally [the OPC] goes. Generally, north is through the OPC.

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Unidentified Shareholder, [253]

--------------------------------------------------------------------------------

Nontrade north is OPC.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [254]

--------------------------------------------------------------------------------

Wait. Wait. Nontrade is tendered to through the OPCs.

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Unidentified Shareholder, [255]

--------------------------------------------------------------------------------

Finally, any idea on the bulk percentages for nontrade?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [256]

--------------------------------------------------------------------------------

Sorry?

--------------------------------------------------------------------------------

Unidentified Shareholder, [257]

--------------------------------------------------------------------------------

Sir, any hint on the bulk percentage for nontrade?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [258]

--------------------------------------------------------------------------------

Bulk maybe 4% to 5%, not much.

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Unidentified Shareholder, [259]

--------------------------------------------------------------------------------

4% to 5%, okay, sir. Sir, and what about slags sources for the west operations?

--------------------------------------------------------------------------------

Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [260]

--------------------------------------------------------------------------------

West (foreign language) slag (foreign language). East (foreign language). East (foreign language) Bhilai (foreign language). We take it from [Bidril].

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Operator [261]

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Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Vaibhav Agarwal for closing comments.

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Vaibhav Agarwal, PhillipCapital (India) Pvt. Ltd., Research Division - Research Analyst [262]

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Yes, thank you. On behalf of PhillipCapital, I would like to thank the management of JK Lakshmi Cement for the call. And also, many thanks to the participants for joining the call.

You may now conclude the call, Sanford. Thank you very much, sir.

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Sudhir Anna Bidkar, JK Lakshmi Cement Limited - CFO [263]

--------------------------------------------------------------------------------

Thank you.

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Operator [264]

--------------------------------------------------------------------------------

Thank you very much, sir. Ladies and gentlemen, on behalf of PhillipCapital (India) Pvt. Ltd, that concludes this conference. Thank you for joining us, and you may now disconnect your line.