Ladies and gentlemen, good day and welcome to the Q1 FY 2024 conference call of HeidelbergCement India Limited, hosted by PhillipCapital (India) Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Private Limited. Thank you, and over to you, sir. Thank you, Michelle. Good afternoon, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q1 FY 2024 call of HeidelbergCement India Limited. On the call, we have with us Mr. Joydeep Mukherjee, Managing Director, and Mr. Anil Sharma, Chief Financial Officer of the HeidelbergCement India Limited. I would like to mention on behalf of HeidelbergCement India Limited and its management that certain statements that may be made or discussed on this conference call may be forward-looking statements related to future developments and the current performance. These statements are subject to a number of risks, uncertainties, and other important factors which may cause actual developments and results to differ materially from the statements made. HeidelbergCement India 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. Also, HeidelbergCement India Limited has uploaded a copy of the Q1 FY 2024 investor presentation on their website and the stock exchanges. Participants are requested to download a copy of the presentation from these websites. I will now hand over the floor to management of HeidelbergCement India Limited for the opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, Joydeep, sir. Thank you very much, Vaibhav. I welcome everyone on the call to this session. I shall start with the key messages that we have. Our key messages for this call are that we have had a volume growth of 8%, and we are at a 75% capacity utilization for this quarter. We continue to provide 100% blended cement, and we are, as of now, not manufacturing any OPC at all. Our share of green power has increased, so I'm happy to report that it's increased to 33%. This is looking very good, and we also look forward to improving on this. Our alternative fuel today is at 6% of our total fuel mix. We have, obviously, as you know from the document which is provided to you, an EBITDA of INR 772 per ton, which is 10% growth year-on-year. But if you take like-for-like and take out the sales tax benefit impact that we have, it is about -3%. Our net cash and bank balance stands at INR 4 billion, and we are continuing to operate on negative net operating working capital. Moving on, on an ESG overview, as I already mentioned, we are at 100% blended cement. On CO2 footprint, we are at a number of 504 kg per ton of cement, and this has been a continuous improvement. If you look at CY20, we were at about 519 kg, and that has now come down to 504 in CY23. On water positivity index, we are at 6.9x. We touched 25,000+ lives through our CSR initiatives. And as mentioned, we have more than 30% green power, actually currently at 33%. Moving on to the ESG footprint slide, which has been shared. As we said, that our green power right now is at 33%. We have an ambitious target to cross 40% next year. At Jhansi, we have a long-term agreement of 15 MW solar power supply. At Narsingarh, we are operating through a 12 MW waste recovery plant and 5.5 MW solar plant. Amasandra is consistently operating at more than 90% green power. This is something which we are pretty proud of, and we would like to focus on this going forward and continuously increase our green power percentages of total power. On our CSR initiatives, we cover a wide spectrum of initiatives. We do work with government school students to whom we have distributed educational kits. To hospitals, we have provided air purifiers and renovated government primary school, Pali Pahari. We involve ourselves in a lot of skill development training. Around our plant, we have communities with whom we have to involve them and execute these activities. Moving on to the operational and financial performance. As you can see, our revenue is up by 1%. On operating expenses, 1.6%, and EBITDA stands at -2.3% over the corresponding period. On sales volume, we are up by 8.2%, though realization is down by about 6.7%. But we manage costs well, and cost also looks healthy at a 6.1% lower number. Moving on to the EBITDA rate, June 2023 quarter, like-for-like EBITDA per ton. So we have come down from 855 in June 2022 to 772 in June 2023. There was a significant element of so this is a 10% drop. But if you take out the impact of the incentive that we had, which was sales tax incentive, it is actually a 3% drop. We lost about INR 298 per ton in price. Raw material impact was, if you look at it, around INR 26 per ton. However, on power and fuel, we had an advantage of INR 334 per ton. On freight, we had a negative impact of INR 62 per ton, and this was primarily because in this quarter, like in the earlier quarters of the corresponding periods, we did not have the railway freight incentive. And there's been a very marginal increase of around 7 or 10 kms in lead. And that's the explanation of the EBITDA wedge. On our cash and bank balances, we have INR 4 billion. And our bank balance as on 30th June is INR 6,103 million, and net cash is INR 4,093 million. And we have INR 2,010 million in debt. And we have a comfortable repayment schedule, so there is really nothing to comment on that. On the June 2023 quarter share of volume, we have 45% road dispatches, which is kind of flattish over the corresponding period. 6% is our AFR, as we mentioned before, which is up by 3% year-on-year. Premium products that we sell in the market constitute about 30% of trade volume, which is, again, up by about 8% year-on-year. This obviously provides us better realization and better brand equity in the market. Out of our total sales, we are at about 82% trade sales, which is, again, about flattish as compared to the similar period. We are moving on a strategy of increasing premiumization, and we are optimizing the sales mix. On the outlook, we have the Lok Sabha elections in 2024, and therefore, we do expect rapid execution of infrastructure projects. We are also noticing very strong traction in rural affordable housing segments and real estate. But of course, competition is intensifying with new capacities. Specifically around our plant, also, we have seen new competition come up, very aggressive. We anticipate that the fuel prices, which have softened considerably, and this trend would continue. We see inflation getting under control. At the same time, we do have elevated interest costs. On the crop, we see that the Rabi crop had a good start. However, there have been a few unsettling rain episodes here and there, which might lead to slightly lower output. So that's all I had on my opening remarks. Vaibhav, it is over to you right now. Sir, shall we open the floor for the Q&A session? Yes, please. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchscreen telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Oh, handsets for them. Okay. We have the first question from the line of Shravan Shah from Dolat Capital. Please go ahead. Thank you, sir. Sir, before asking any questions, data point says last quarter, we did not do the Concall and no presentation, so needed a couple of data points for fourth quarter FY 2023. Trade share, lead distance for last quarter and for this quarter. Yeah. Yeah. Sir, I am saying I need a data point for fourth quarter FY 2023: trade share, road share, premium share, lead distance for this quarter, Q1 and fourth quarter, and the fuel mix for this quarter and the last quarter, fourth quarter. Okay. That's a long list. So we have to go one by one. Which one was the first part? Trade mix was 80% in the last quarter, so we can say almost 30% as compared to last quarter. 2022 now. Yeah. And then the premium product in last quarter was around 32%. So in this June quarter, it is around 30%. Ready-mix, almost similar, 45% road, 55% rail. And with respect to our lead distance, we don't think there is a major increase or decrease. So what's the number lead distance for this quarter and the fourth quarter? This quarter, it is 361. Okay. What was it last quarter? Last quarter, Q4 FY 2023, was it the same 361? 361. 361. Yeah. So as I mentioned in my opening remarks, it's increased by about 10 km. Okay. And fuel mix for this quarter and the last quarter, Q4? You want the fuel cost or fuel mix? Fuel mix. Fuel mix. How much was coal share and petrol share for this quarter? Q4, again, is about flattish. That's around it was 32%, which is now 33%. Okay. This quarter is 33%. So now the main question is, sir, on the volume front. So after the sixth quarter of degrowth, this quarter, we definitely grew 8%+. But even if I look at on yearly basis, since FY, I would say FY 2016, we did a 4.4 million ton. And FY 2023, also, we did a 4.39. So from 7-8 years' perspective also, actually, we did not grow, and we actually kind of lost our market share. So 2-3 aspects on that front. So how much volume are we looking for this year, FY 2024? Second, in terms of the expansion plan, so I think Q3 FY 2023, we had talked about 0.3 million ton grinding and 0.2 clinker de-bottlenecking to come up in FY 2024. So what's the status on that? Going forward, in terms of the long term, we had a plan of Gujarat expansion of 2 million tons clinker and 3.5 million tons grinding. That's likely to come in FY 2027. So is it the same stand, or is there anything which can come up early? No, we do have a de-bottlenecking exercise which is going on. That exercise would be over by December 2024. This is in our central Damoh area. That's going to give us about 200,000 tons of cement. Slightly. Yeah. So that initiative is pretty much on. And as far as Gujarat is concerned, as we mentioned, I think the last Managing Director, Mr. Jamshed Cooper, has also mentioned in his last call that we are now awaiting the environmental clearance. And post-environmental clearance, we shall start other necessary activities. So there's no material change from what was stated last time. Okay. Okay. And this de-bottlenecking, so the grinding capacity will increase by 0.3 million ton and clinker by 0.2 million ton? Yeah. We are trying to. Seven, we are trying to reach to that level. Okay. Okay. And in terms of the kcal cost, what's the kcal cost for this quarter, last quarter, and how do we now see in terms of the overall cost to come down in the next quarter? And let's say if the prices remain as of FY 2025, how much broadly we can see because it will in terms of the reduction from Q2, Q3, Q4. But overall, if somebody looks at from FY 2025 perspective, so from FY 2023 to FY 2025, if the current prices of coal, petrol remain the same, how much one can see in terms of the reduction in the power and fuel cost? Okay. I think, Sir, you are talking about a little bit far period with respect to projection. But everybody knows that the fuel prices, especially petrol, have started reducing. And during June quarter, the major benefit came from the petrol reduction. And hopefully, this trend should continue. So in the coming quarters, especially September and December, there must be some further benefit on account of petrol price reduction. I mean, that would be most to comment on what is it going to happen till 2025 because that depends a lot on the global situation, on demand supply, on our own initiatives to augment AFR in our kiln. And there are just too many variables to give you a real meaningful insight into what's going to be the numbers in 2025. But what we can tell you is that we do foresee that at least in this quarter and the coming quarter, the fuel prices, the input cost, which is what we are trying to talk about in fuel, shall show a further softening. So how much reduction can we see? So what was the kcal cost in Q1 FY24, and 10% reduction in Q2 and the same way reduction in Q3? Excuse me. Oh, this one. You are asking which period, please? June quarter. This quarter, what was the kcal cost? And in Q2, how much more reduction can we expect? And Q3, how much? So this quarter, it was 2.01. We're talking about coal cost per CV, right? Yeah. So this is coal per CV, and petrol was 2.38 this quarter. Now, if you look at last quarter, coal was 2.30 and petrol was 2.77. So already around 15% reduction. Yeah. So already, you can see a good 15% around that benchmark number reduction. While our view is that coal, going forward in the next couple of quarters, will remain flattish, we do anticipate a further reduction in petrol. Last year, pricing, how much have we seen any price reduction in July and any further price likely to happen in remaining months of this quarter? What prices? Cement? You're talking about cement prices? Yes. Yeah. Yeah. Cement prices, traditionally, in this season, are always under pressure. And in our relevant market, there are obviously a lot of rains, etc. So yes, right now, as we see, the prices are under pressure, but it's nothing alarming. I mean, we see similar trends as last year. And this typically, I mean, goes back and is gained as the rains abate. Okay? That's what the history has been. But right now, we don't see there is. I don't see any reason for alarm. Have you seen a INR 5 kind of a reduction from the average of Q1 FY 2024 in July? Yeah. It could be in that ballpark. Yes. Okay. Okay. Thank you. All the best. Yeah. Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star and one on their touch-tone phone. We have the next question from the line of Sanjay Nandi from VT Capital. Please go ahead. Yeah. Good noon, sir. Thank you for the opportunity. Just would like to ask you one question. We can't hear you louder. We can't hear you very clearly. I'm sorry. Can you hear me, sir, right now? Yes, please. Yes. Go ahead. Yeah. So we could see some significant drop in your power and fuel costs in this quarter. So can you please guide us what kind of drop can we expect in coming half part of the year? As you mentioned, the things are softening down. So if you can give some guidance in terms of cost pattern, what we can expect in next six months or next two months, it will be very helpful. I think we don't want to give this kind of guidance because we don't know what is going to happen. But at this moment, as we speak, we can say there is some maybe further softening of the domestic petrol, and the coal prices are more or less flat. Coal prices are flat. In the June quarter. So, at this moment, this is what we can say about the fuel price movement in the coming quarters. Got it. Got it. Also, you mentioned, sir, a lot of capacities are coming in your areas of operations. So can you please mention or specify some of the companies which are coming up with some significant capacity in your areas of operations? Yeah. So Dalmia has already taken over the J.P. assets, which were not operating in our area. So that is going to hit our market. And JK Cement has already started their operations around 100 km from our plant. Okay. So what is the pricing difference between us and those guys previously selling? J.P. used to have old plants. So what price they used to sell and what price we are selling in that market, sir? So this is a very difficult question to answer because there is no one answer to this. It will depend on market to market. I mean, cement pricing changes every district and even in parts of districts. So it will be unfair for me to tell you that we are INR 5 higher or INR 7 lower because it's not really the same situation in every market. So got it, sir. But in the central part of the country, sir, where we are operating mostly, so which grade we are catering in that market? Is it a B grade, or is it in the mid of AB grade? I mean, there are markets where I sell higher than the so-called A-grade cement manufacturers in India. There are markets where I'm lower. So that's why I'm saying it's very difficult to answer that question. The answer would lie, as you can, if you can see the annual results of the company and see the gross price, then you will be able to get an average. But as I said, that typically, in your home markets where realizations are higher, every competitor would come and try to push down the price. In certain markets, you have an advantage, which is not the same for another competitor. And there, you can hold a higher price than them. So I would not get into a classification of A-grade pricing and B-grade pricing. It doesn't work like that. Got it, sir. So just clarify for me, apart from this Dalmia and JK, are there any upcoming capacities in those areas of operations in central India, or these two are the major things? No, there was the Ambuja expansion of Adani, which is there. In our tertiary market, somewhere near Agra, where in which ways we don't sell much, there is expansion. Right. Got it, sir. So we could also find some spike in our raw material cost. Is it because of some spike in the fly ash pricing? So if you can kindly throw some color on that fly ash pricing trend on a QQ basis, it would be very helpful. So these raw material prices, if you see during last one year, because of the weakening of the Indian rupee, there is an increase in the gypsum cost. As well as the gypsum cost has increased because of now no maybe exemption of peak season surcharge by the railway. So that is also the reason the cost has increased. We have been consuming fly ash. We have been consuming the sweetener. So to some extent, the raw material prices have increased. Sir, what is the current prices of fly ash in per ton basis, sir? ash, we used to have a blended cost around INR 650-INR 700. The fly ash cost almost remained the same because we transport fly ash by road. The major part of the fly ash blended cost is the transportation cost. Yeah. I mean, that's also a mix. One tends to draw from different sources. So depending on from which source you are buying in a particular month, it varies a little. Got it. I just need average price, sir. So you're talking like 650 per ton is the fly ash average cost, right? Yeah. Yeah. What about the gypsum thing, sir? Gypsum, we consume imported mineral gypsum. That is around $22, $23. Okay. Kind of the cost per ton relating current. Around $2,200-$2,300. $2,300 per ton. Got it. Got it. Okay, sir. Thank you, sir. That's all my side. We'll come back in a queue. Wish you all the very best. Thank you. Anyone who has a question may press star and one. The next question is from the line of Anuj Kapil from Taurus Mutual Fund. Please go ahead. Good afternoon, Joydeep ji, and good afternoon, Anil ji. Congratulations on your quarterly results. The profit paths are up above 50% as well. My question is, you are having a cash of around INR 400 crore. Are you looking to increase your capacity? Currently, you have around 13.4 MTPA. Are you looking to increase your capacity by around 1700 or 17-18 MTPA? I can't understand. Our total capacity is 6.25. 6.25. Yeah. You are talking about the group total capacity in India. That is 13 million tons. And the INR 600 crore, you rightly said that INR 200 crore, we have the debt in books, and it will be repaid in coming two years. And at the same time, if you have seen the last after the board meeting, our information to stock exchange that we are bringing before the shareholders for approval of the dividend of INR 7 per share, the total amount is around INR 150 crore. So if the shareholders approve it, then thereafter, then we will distribute the dividend out of this cash balance. At this moment, we are trying to put this money for our existing ongoing CapEx on account of alternative fuel. And also, we have also said with you about our ongoing de-bottlenecking project. We have estimated the total CapEx required in the coming 15-18 months on that project is around INR 70 crore. That also, we are going to use for our internal fuel. Obviously, there's INR 40-45 crores of regular CapEx. Regular CapEx. Maintenance. But having said that, we are always exploring the possibility to increase our capacity. We are trying to expedite with that one. And these internal accruals, as per our homework, we think that some of the internal accruals will be used for the capacity increase. And some maybe in future, then we need to borrow a little bit for that project. That's great to hear, sir. Thank you so much for your answer, sir. That's all I have. Thank you. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead. Yeah. Hi, sir. Good afternoon. My first question pertains to your volume growth strategy. We have seen volume growth for the last past four to five years. And now, in your market, there is intense competition from existing players plus new entrants. So what is your thought on volume for this financial year? What sort of volume growth are you looking at? And what strategy are you adopting to drive that volume growth? So we have several initiatives in the market. I mean, if you ask about strategy, we are obviously looking at where we are not present. We have a clear premium. I'm looking at covering those markets. We are looking at a very solid premium product strategy, which is already doing well in certain markets. So depending on core markets and growing in profitable markets are basically the focus areas. Okay. So do you see that you have a case or you have a tangible case of delivering 7%-8% volume growth in FY24? Is that a possible number you're looking at? As of now, so your question is for the entire year? Yeah. Yeah. For full year, FY24. What sort of number are you working with in terms of growth? We are certainly looking at a 7%-8% volume growth. Okay. And could you also share your power cost, consumption cost in INR per unit, which you had in Q1? And how are they faring with the coal prices coming down? The power cost has been flattish. It's been about INR 6.6 per unit. This quarter, INR 6.7, but that's flattish. INR 6.6, INR 6.7. So now, your green power mix has also increased. So how is that? What is the average cost of your green power? I assume a good part of that, you're sourcing it through some JV where the cost would be around INR 4-INR 5? We would not be in a position to give you an exact number. But yeah, it's significantly lower than grid power. Okay. And do you see this power cost number also coming down with the fuel prices coming off in subsequent quarters, 10%-20% sort of reduction? Is that a possibility? Are you talking about grid power? Yeah. Your average power cost, the 6.6-6.7 in FY 2025 Q3 or Q4, do you see a case of this number coming down to around INR 5.5? No, not in this year. No. We have initiatives in place which will start yielding fruit possibly next calendar year. Okay. But you will appreciate that the grid also has been increasing their price. Like the other state grids, Madhya Pradesh and Uttar Pradesh, they have also increased their prices. Generally, we see that 5%-7% every year, they try to increase the grid prices. Our target is that whatever grid prices increase there, we should get at least offset by increasing our renewable power and try to keep the weighted average of the power costs remain in the company. Okay. Okay. Understood. So even if you are able to maintain the cost, that is also a good strategy given the inflation at the grid side. And lastly, on the other expense, what led to this Q on Q fall in the other expenses, which are down almost 8%-9%? So, other expenditure, there are a mix of few things. Fixed cost is there, like the salary cost is there, then the rent, and then maybe the traveling, maintenance, repair. Some of the semi-fixed cost kind of things, like stores and spares and consumables. Those expenditures, you might have noticed that quarter-to-quarter, sometimes 10%+, sometimes 10%-, depending upon our current plants shut down. As well as that, okay, depending upon the various, maybe the initiatives on account of brand building and advertisements. During this quarter, when we compare with the last March quarter, slightly, it is reduced on account of lower repairs and maintenance costs. Okay, sir. Great. That's all from my end. Thank you. I'll come back in a few. Thank you. Thank you. The next question is from the line of Mangesh Bhadang from Centrum Broking. Please go ahead. Good afternoon, sir. Sir, a couple of questions from my side. Hello? Yes, sir. Yeah. Go ahead, please. You're clearer. Sir, a couple of questions. First is on the capacity. So I just want to understand, is there any constraint for us to go or sell more volumes beyond, say, 5 million tons, even though we have 6.25 million tons of capacity? Because for many years now, we have seen that our volumes have remained below 5 million tons. And secondly, even if I don't know, when I see across markets, like JK Cement came up with a plan and have achieved a significant utilization in the market wherein we operate them. And now, we are going to. So the question was whether any capacity constraints are there which restrict us from getting beyond 5 million tons of volumes. Is there any capacity constraint to reach 5 million tons? No. There's no capacity constraint to reach 5 million tons. I mean, it's a market situation. Our strategy is in the market, which is going to lead to an increase in the volume. It's not like that there is any problem in the plant or anything like that. We have a 75% utilization, which is maybe about 10 odd% lower than where I'd like to be. What kind of utilization will be at there? I have not understood the question. Can you repeat it once again? The Karnataka plant, sir. Karnataka plant, what would be our utilization? Karnataka plant is very small. Our capacity, there is around 400,000 tons of cement. And we have been running similar to what the other South India plants are running the capacity. Yeah. And sir, I'll just ask the last question. So as you mentioned, in fact, other participants also mentioned that competition probably should increase given the expected capacity additions: Dalmia, ACC, JK Cement. How do you see pricing behaving in that market, sir, from here on? Do you think that it could have a negative impact on it? Pricing would be under pressure. Yes. No doubt about it. Okay. And sir, the 8% growth that we have seen. Any market where there is expansion, it's also limited for a period of time. See, there is very healthy growth in cement demand in our relevant market. So yes, for some time, the pricing would be under pressure, but. That was the question. I just wanted to check. Do you think that the incremental demand would be able to absorb faster the capacity addition and have the? I think so. I think so. I definitely think so. Yeah. Okay. Okay. Great, sir. Great. Thank you, sir. Thank you. The next question is from the line of Prateek Kumar from Jefferies. Please go ahead. Yeah. Joydeep, sir. So since you're taking over, I mean, what has been and probably what would be your key focus areas in near- to medium-term on market share, market positioning, target premium segment mix, or merger with Zuari Cement, are there any material changes directly versus the past leadership? Some of these questions were answered partly, but. I think these are very generic questions. Obviously, I can't discuss my and can't explain my entire strategy in five minutes over an investor call. But it is very clear that the focus areas would be on improving efficiencies, capacity utilization. Those would be the top of my mind initiatives. And as far as Zuari is concerned, we are looking at it. We'll certainly move when the time is opportune. That is something which is in our radar, but the timing has to be right. And I can't give you an exact time when we shall move on that. But that's definitely something which is in our consideration. But any specific reason which could be holding it back related to competition commission or your parent approval or what? There is no competition commission-related issue right now. That's not the reason. We'll have to see what is the right time to do this merger, which would benefit us as a company and also be of benefit to the shareholders. Is the other company also looking for any growth in terms of CapEx, if you can suggest? Unfortunately, I would not be able to discuss the strategy of Zuari on this call. This is regarding our listed company, which is HCIL. I would appreciate if all the questions are limited to this operations, please. Sure, sir. These are my questions. Thank you. Thank you. Thank you. Ladies and gentlemen, this would be a final reminder. No further reminders will be announced. Participants who wish to ask a question may press star and one. The next question is from the line of Devesh Agarwal from IIFL Securities. Please go ahead. Good afternoon, sir. Thank you for the opportunity. My first question is, could you also share the number of the incentives that you would have earned from Damoh Plant in the fourth quarter, the way you shared for the last quarter? In fourth quarter, this March quarter, the incentive was applicable for one and a half months. The total amount was, I think it is around INR 3 crore. Sorry. You said INR 3 crore? 3 crore. Yeah. But that's over. That's over. That is March quarter. We had the benefit only for 90 days in the quarter. Understood. And sir, incrementally, you said that possibly this year, you would target a growth of 7%-8%. So do you think that's an in-line industry growth for your region, or it's really slightly lower than the industry growth for the region, Central India? See, across India, the outlook is that the industry would be growing at that kind of percentage. So if you talk about what is our position on that vis-à-vis competition, it will be a difficult question to answer. The reason being that we are pretty much operating in those Central India two, three states, right? Whereas when you look at our competition, you look at all the big names, they are spread across India. So I will not have any visibility on what exactly their growth would be in our relevant region. But if I would hazard a guess, I would say, yeah, we should be pretty much in line. Okay. Now, I was trying to understand, sir, some of the competition who have just started plant there are seeing a very fast ramp-up. So in that regard, I would assume that we may be losing some market share to them. So in such a scenario, would we focus more on improving our EBITDA pattern through different means? And if that is the strategy, what would be those factors that could help us to improve our EBITDA pattern if we are not able to grow our volumes in comparison to what our peers would be able to? No. I mean, there are people who have set up their companies who have set up plants, right? And they would obviously ramp the plants up, the volumes up as soon as they can. If you look at our sales mix in trade and non-trade, we are pretty much focused in trade, as is evident from the numbers that we shared, right? So we do believe that in the trade retail segment, there is enough and abundant scope for us to grow. There are strategies employed by certain companies who focus on non-trade growth in the infrastructure segments, etc. That's not a segment in which we participate because that's primarily OPC. Okay? So a lot of these new plants are selling OPC to the non-trade segment. That's not a segment in which we operate at all. If your question is, are we comfortable looking at the future in the segment that we operate, the answer is yes. No, sir. I also wanted to understand if we would be focusing more on the profitability and not only volume. And to that extent, we will only focus on increasing our premiumization or possibly reducing our cost. Will that be the key driver for the management? No, yeah. That's obviously one of the key drivers, which is always improving profitability. But as we mentioned, we are also looking at a 200 KT expansion next year, right? So it's not that we'll only be talking about profitability. Volume and pricing and cost are obviously the three points of the triangle which needs to be managed in a cement business. And we are going to try and do that to the best of our ability. Understood, sir. Thank you so much. Yeah. It's not that it's only going to be a focus on EBITDA improvement and no focus on volume. No, that's not what we are saying. Thank you. The next question is from the line of Girish Choudhary from SMIFS Limited. Please go ahead. Thank you for the opportunity. So many of my questions have been answered. But just wanted to check, what is the average pricing in the Central region in July so far? And is it stable or lower on a month-on-month basis? When you say can you please repeat your question? I don't think I've understood it properly. Just repeat the question. Sir, just wanted to check, what is the average pricing right now in Central region in July so far? And is this stable? The pricing is stable, or is there any decline in pricing on a month-on-month basis, June, July? Are you talking about the industry, or are you talking about Heidelberg? Heidelberg. As we look at July, we should be in the ballpark region of around INR 4,900. It would be. The pricing difference, I'm asking the pricing cement price per bag. No, no. There is no one answer because the prices vary from every district. Yeah. So I'm talking about per ton. And we are maybe around INR 50 odd per ton, INR 50, INR 60 odd per ton lower than June right now. What is the difference pricing between this gray cement and this premium product, premium cement? Well, we have a few premium cements. We have a couple. The difference would be anywhere between INR 10-INR 40 a bag, which is around INR 200-INR 800 a ton. Okay. Thank you, sir. Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah. Also, I just wanted to clarify. We mentioned that we want to do INR 70 crore CapEx for 15 months for AFR and INR 40-45 crore regular CapEx. So is it fair to assume that INR 100-110 crore kind of a CapEx we see for FY 2024? We mentioned INR 70 crore for an expansion CapEx, which is around 200,000 tons of cement, which is going to come in the next 15-18 months. Of course, there is a normal maintenance CapEx and operating CapEx of about INR 40 crore-INR 45 crore. The Southern Rail financial year 2024, you will have this INR 40-45 crore. Of course, this will come in the same fiscal year. INR 70 crore will split into two fiscal years. So some part will come in 2024. Some part will come in 2025. Correct. Yeah. Okay. But you mentioned that this de-bottlenecking to start by December 2023. So this INR 70 crore is different from the one we need to spend on the de-bottlenecking? INR 70 crore is the de-bottlenecking? Yeah. Okay. But will the de-bottlenecking by this December and the CapEx, you are mentioning that it will spill over to FY 2025? Is it so? So again, we can repeat what we actually mean to say. This INR 70 crore de-bottlenecking project will start in this calendar year, 2023. And then the total capacity is not going to happen. The 200,000 tons of cement is coming in December 2023. It takes around 15 months' time. So the benefit will come in financial year, 2025. 2024. Yeah. 2024, 2025. Okay. Okay. And. And. And. Yeah. Sorry, sir? Is it now clarified? Not 100%. Still, I'm confused. Simply, what will be the total CapEx for FY 2024? It will be around INR 75 crore. INR 45 crore is the sustainable CapEx. The INR 30 crore is out of de-bottlenecking. That's why I'm saying that de-bottlenecking project is started now. In financial year 2024, around INR 30 crore will come out of INR 70 crore. The remaining INR 40 crore will come in the financial year 2024, 2025. Oh. And just to clarify, our total grinding capacity is 6.26 million ton. Will you please help me in terms of the plant-wise? Though I have, I just wanted to clarify because we mentioned the Karnataka plant capacity is 0.4 million ton. Actually, I have a number of 0.51. So in terms of the Damoh, Jhansi, and Karnataka, if you can split the grinding capacity. So in Central India, it is 5.75. You rightly said that 0.51 is the Karnataka. So you split into the two locations, 5.75 and 0.51. 400,000 tons, 0.4 million of Karnataka, we are talking about the grindability. We need to see that, okay, how much we can disperse from the plants. So rated capacity 0.51, we can disperse 400,000 tons. And here in Central India, it is 5.75. Okay. And in terms of the Damoh clinker capacity, is it 3.5 or 3.1? 3.1. 3.1. Karnataka, what's the it is 0.3? 0.3. But at this moment, we purchase clinker. We don't produce clinker there. Okay. Okay. Okay. Okay. Got it. Got it. Thank you. All the best. Thank you. Ladies and gentlemen, this would be the last question for today, which is from the line of Rajesh Ravi from HDFC Securities. Please go ahead. Yeah. Hi, sir. I have two follow-up questions. First, could you share what was the clinker production in FY 2023 and in Q1? Clinker production? We have already given this total cement production in our press release. We have been consuming around 62% of the cement as a clinker. Sorry. 62% is what? Clinker factor. Our Clinker factor. Okay. Okay. And in Q1, what was this number, clinker factor? Q1? Yeah. Clinker factor. Clinker factor. The factor is the same because we don't manufacture OPC cement. It's all 100% PPC. Okay. And sir, you have started with digital strategy whereby you have started through WhatsApp reaching out to dealers, live pricing. How is that working out, sir? It's too early to say. I mean, we are in the midst of a new program that we have launched ourselves. And we have, so all we can say is digital would be a significant part of our strategy going forward. And this will not only be through messaging. It will be through various channels. Okay. Now, because this WhatsApp, which I think two, three quarters back, the management executed also, so what we noticed is the pricing which it shows for different PIN codes is at least five to six months back date. So just wanted to check if there has been a focus over there or it is not being pursued aggressively. I'm sorry, but your voice is not very clear. Can you just come a little closer to the phone and repeat the question? I'm sorry. Am I audible now? Yes. Better. Yeah. Okay. So this digital WhatsApp-based where you could put different PIN codes, you could check the pricing for different brands of HeidelbergCement, what I noticed is that the pricing which is being displayed on the WhatsApp is five to six months. Currently, it shows February pricing. So I just wanted to view that are we pursuing this digital thing at least from the customer-facing WhatsApp and all aggressively, or do you have a re-look on that? No, no. We are in the process of a complete revamp in our digital strategy. Pricing communication through WhatsApp is not something that we are pursuing right now. But we have a very holistic approach to digital communication and marketing, which I'm, as of today, not in a position to reveal. But once the entire program is in place, then maybe at a future date, we can talk a little bit more about it. But it's not going to be only focused on WhatsApp. It's going to be on our entire CRM and different social networking channels. Great. Great, sir. This is all from me. Thank you. All the best. Thank you. Thank you. As that was the last question for today, I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Over to you. Yeah. Thank you, Michelle. Sir, before I close the call, I just have one question for Joydeep, sir, in particular. Sir, firstly, best wishes from all of us at Phillip Capital as the new MD of HeidelbergCement India. Sir, I just want to know from you as you take charge of the company for Heidelberg Group in India, what would be your vision for the group forward in India? And have you already identified any areas of incremental improvements which you can do for both as in the entire group, especially HCIL as we are referring to HCIL on this call? And any change of stance from the earlier leader or anything which you can say that you can improve on further? I just want to know your vision for Heidelberg Group in India, sir. Okay. So no, there is no significant difference in our stance. We are a company which remains steadfastly focused on reducing our carbon footprint. So that is obviously at the core of our strategy. And that is why you see us in the relevant market. If I were to start producing OPC and push it out in the market, my volumes would suddenly start looking very good. But we have intentionally stayed away from that because that's something which, as a company, we, at least in this market, are very averse to. If you look at our carbon performance, we are pretty much up there with the best in the industry. And we would like to ensure that we continue on that journey. So that's pretty much at the core of our DNA and company vision. As far as the company performance is concerned, we have done well in this quarter. We would like to continue doing well. There are various initiatives that have been taken in reducing our cost of manufacturing as well as achieving excellence in all our commercial functions and in sales and marketing. Right now, that is our focus. We would like to establish ourselves as an ethical and environment-focused company, achieving excellence in our operational and sales activities. But to answer your first question, no, no significant departure from what was in the past. There are only some certain strategic and tactical initiatives that have been started by me. We would like to see over the next three to four quarters what kind of results they yield. Sure, sir. Sure, sir. That answers my question, I think so. All the best, sir. And thank you very much once again for the opportunity for the call. On behalf of PhillipCapital (India) Private Limited, I would like to thank you and HeidelbergCement India Limited for the call. And also, many thanks to the participants joining the call. Michelle, you may now conclude the call. Thank you very much, sir. Thank you. Thank you. Thank you. It's been a pleasure. Thank you very much, sir. Ladies and gentlemen, on behalf of PhillipCapital (India) Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.