Ladies and gentlemen, good day and welcome to the Ambuja Cements Limited Q1 FY2026 Investor Call, hosted by Prabhudas Lilladher 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 and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Satyam Kesarwani. Thank you, and over to you, sir. Thank you, Nipi. Good evening and a very warm welcome to everybody. On behalf of PL Capital, I am pleased to welcome you all to the earnings call of Ambuja Cements for the first quarter of financial year 2026. We are very happy to have the management with us today for the Q&A session with the investment community. The management is represented by Mr. Vinod Bahety, CEO, Ambuja Cements; Mr. Rakesh Tiwari, CFO; Mr. Deepak Balwani, Head of Investment. We will begin with the opening remarks from the management, followed by an interactive Q&A session. With this, I hand over the call to Mr. Deepak Balwani. Over to you, sir. Yes, thank you. On behalf of Ambuja Cements, I am pleased to welcome all participants to our earnings call for the first quarter of FY 2026. Ambuja Cements is the ninth-largest building material solution company globally and part of the diversified Adani Group portfolio. Ambuja Cements is one of the four large-scale cement companies globally and the only one in India to have its science-based net-zero and near-term targets validated by the SBTi. Before we start, please note that this call may include forward-looking statements based on our current beliefs and expectations. These are not guarantees of future performance and may involve unforeseen risks and uncertainties. We are pleased to have with us on the call Mr. Vinod Bahety, Chief Executive Officer, and Mr. Rakesh Tiwari, Chief Financial Officer. Now, I invite Mr. Bahety to provide his valuable insights on the quarterly performance. Thank you, Deepak. Good evening and a warm welcome to all of you joining us for the first quarter 2026 earnings call. Ambuja Cements started this fiscal year on a high note. Our momentum is built on strong value focus, robust volume growth, price improvement, deeper channel engagement, premium product sales improvement, agile supply chain, stronger brand pull market across, and smart cost efficiencies, amplified by seamless integration of Orient Cement, which we acquired in April 2025. We have reimagined business fundamentals. This has helped us achieve the highest revenue in a quarter, highest quarterly EBITDA, and improve our market share by 2%. Our channel network is vibrant, our assets are more reliable, our efficiencies have improved, and our EBITDA gains are well noteworthy. This sets a bold tone for the year ahead as we scale with purpose and precision. We are up on our demand estimates by 1% from 6%-7% before to now 7%-8%. Our consolidated financial performance highlights for the quarter are as under. Highest-ever sales volume of 18.4 million tons, up 20% YoY, with market share up 2% to 15.5%. Revenue crossed the INR 10,000 crore mark at INR 10,289 crore, up 23% YoY, with price gain of 4%. Supported by a higher share of premium products as a percentage of trade sales, which is now at 33%, up by 43% YoY. Cost has improved by INR 119 per metric ton YoY. This has also supported in achieving the highest quarterly EBITDA at INR 1,961 crore. EBITDA per metric ton of cement at INR 1,069, up 28% YoY, and EBITDA margin stood at 19.1%, up 3.8%. We have a blueprint to achieve our targeted EBITDA of INR 1,500 per metric ton by 2028. PAT, we have achieved at INR 970 crore, up 24% YoY, earnings per share at 3.20, up 22% YoY, and net worth stood at INR 66,436 crore, and we continue to remain debt-free. Our rating remains highest at CRISIL AAA stable and A1+ ratings. In the best interest of time, I'm not going to discuss the standalone financial performance of the listed companies separately as they are available on the stock exchanges. The merger of Adani Cementation Industries Limited has received all the statutory approvals. For Sanghi and Penna, we have received approvals from both the exchanges BSE and NSE, and further process of completion is ongoing. We continue to make decisive strides in operational excellence in the quarter. Some of them are as under. We are proud to be the lead cement supplier for the world's highest single-arc, Chenab Rail Bridge, which speaks volumes of our product quality and trust. For the fourth year in a row, TRA Research has recognized us as the most trusted cement brand. This brand equity is also immensely supporting in terms of volume improvement and price improvements. Our privileged exclusive partnership with CREDAI has gone very well. Continuing this, we have launched the Nirman Utsav program along with CREDAI, wherein the first event took place in Ahmedabad, and this will be hosted in almost 20+ cities going forward in this financial year. Our supply chain is becoming smarter, leaner, and agile with AI-enabled technology. We are proud to be the first in the industry to adopt DigiPIN. We commissioned 5 million tons of grinding capacity over the last three months and targeted an additional 13 million tons this financial year. We are getting younger with new assets, digitally smart platforms, and latest cohort of future young leaders fueling a culture of continuous innovation and excellence. Digitalization initiatives continue to be a focus area, leveraging the business growth with strong focus on EBITDA maximization, AI-driven advanced business and cost optimizer tools, end-to-end seamless applications of channel partners, and the plans of future concept is progressing very well. On growth and journey expansion, our total cement capacity currently stands at 104.5 million tons. In our larger aim of achieving 140 million tons by FY 2028, we are well poised to achieve 118 million tons by the end of FY 2026, powered by our strategic brownfield expansions across various sites, including Bhattapara, Salai Banwa, Dahij, Marwar, Kalamboli, Krishnapatnam, Bathinda, Jodhpur, and Warisali Ganj. Our disciplined CapEx management is ensuring these timelines are met efficiently, enabling us to deliver both scale and profitability. On the cost leadership, our targeted cost reduction journey with the planned initiatives primarily emphasizes reduction in power and fuel cost, logistics cost, and raw materials cost optimization. We have one of the lowest manpower costs at INR 223 per metric ton amongst the peers in the industry. Green power share uptick with every passing quarter. It improved by 9.7% to 28.1%, and it's targeted to reach 60% by FY 2028. This will reduce the existing power cost, which is around INR 5.9 per unit, to almost INR 4.5 per unit by FY 2028. The power consumption per metric ton of cement also is expected to improve by at least five units, basing the efficiency of the new assets and the efficiency improvement of the existing assets. Coal cost has improved from INR 1.73 to INR 1.59 per 1,000 kilocalories and is expected to sustain near these levels. Importantly, the heat consumption will improve by at least 35 to 40 kilocalories per kg of clinker for the various initiatives outlined, including mix of the new kilns. Primary lead distance reduced by 8 km this quarter at 269 km and is expected to further reduce by almost 75 km when we achieve 140 million tons by FY 2028. This will help to reduce the logistics cost by almost INR 150 per metric ton, also supported by a higher component of rail and sea logistics. Currently, our cost is almost around, say, INR 3.25 per ton per kilometer. On the ESG leadership, sustainability remains our strategic operating system as we are India's only and globally the fourth large-scale cement company to have our science-based net-zero and near-term targets validated by SBTi. We have commissioned 473 MW of renewable energy out of 1,000 MW, achieving almost 28%. As I mentioned earlier, we want to achieve 60% by FY 2028. Our green power share has risen consistently and improved by 9.7% this quarter. We remain an industry leader achieving 12 x water positivity, 11 x plastic negativity, exemplifying responsible stewardship. We continue active global collaborations with WEF, GCCA, UNGC, and AFID, reinforcing our commitment to setting and achieving ambitious environmental goals. On the community and social impact, we continue to positively impact our community through engagement initiatives in education, healthcare, livelihoods, and infrastructure. We are upscaling our community through robotic labs, drone labs, rural KPOs, youth scaling, women empowerment, creating a blueprint for our inclusive growth. Making the new era of a holistic education in the presence of our board members, we inaugurated a new building of DAV ACC Public School, Kalpashila, and a heritage wing at our Kaimur plant. Through the Adani Vidya Dhan initiative, our leadership continues to inspire and shape the future of more than 10,000 students across the Adani Vidya Mandirs, Cheti, campus institutions at our plants. In the first quarter of 2026, we accelerated our efforts to build recognized and purpose-driven partnerships across our network. CEOs' Samwad, a direct engagement platform with channel partners and contractors, has deepened trust through open dialogue, recognition, and shared growth. These efforts have sparked a strong homecoming of more than 500 dealers extending our distribution network and reaffirming the mutual confidence. Adani Group's certified technology ACT was implemented at more than 21,000 customer sites, enhancing the construction durability and technical superiority, making a significant milestone in scalable impact and customer trust. With more than 325 skill-building workshops conducted, we have empowered almost 9,000 plus contractors, creating ripple effects in quality, safety, and upscaling across the regions. CEO Club, a first-of-its-kind recognition platform in the industry, now anchors top-performing channel partners and contractors into a unified community. Through certified training, plant visits, safety gear distribution, and family-focused experiences, we are building a family of builders aligned with our vision. Dhan Varsha-Grihalakshmi-Saubhagya Awards embodied emotional intelligence in action. This hybrid celebration brought together over 50,000 plus families of our dealers, merging performance with purpose and laying the foundation for enduring relationships beyond the balance sheet. Coincidentally, today also we have a program which is for our influencers, which we will see more than 25,000 influencers online and offline coming together to celebrate a program similar to Dhan Varsha's. On the industry outlook, cement demand grew by almost 4% YoY in the first quarter of FY 2026, driven by the Pradhan Mantri Awas Yojana, Pradhan Mantri Sadak Yojana, Bharatmala, Sagarmala, and other infra projects. We remain bullish for this financial year. We are upping our demand estimate by 1% from earlier 6% to 7% to now 7% to 8%. I now invite our CFO, Rakesh, to detail our financials in detail further. Thank you. Thank you, Vinod, for giving such a strategic and comprehensive outline for Ambuja Cements. It was really great. Good afternoon, ladies and gentlemen. It's a pleasure to connect with you all at this pivotal junction in our growth journey. Over the last few quarters, we have consistently articulated our sharp focus on four key pillars: growth, cost leadership, ESG, and stakeholder value creation. I'm pleased to share that Q1 Financial Year 2026 has reinforced our conviction and momentum across all these dimensions. Our cement capacity has now reached 105.4 MTPA following the successful commissioning of Sankrail and Sindri brownfield grinding unit. We remain firmly on track to scale up to 118 MTPA by March 2026 and 240 MTPA by Financial Year 2028. Our inorganic growth story strategy is progressing seamlessly: Sanghi, ASEAN, TUTI Current, Penna, and more recently Orient, which we have successfully integrated. The results were out a few days back, accelerating our market presence all across the geographies. Integrating synergies are being realized ahead of schedules, validating our disciplined M&A playbook. Alongside M&A, our greenfield and brownfield projects are designed with an emphasis on long-term competitiveness. Roughly close to 40% of our capacity now falls under new generation assets that are optimized for capital efficiency, lower OPEX cost, increased use of renewable energy, and improved logistics, including rail infrastructure. In this quarter of 2026, we commissioned 57.7 MW of wind energy, taking our total renewable power to 473 MW. Additionally, our WHRS capacity extended to 28 MW. Together, our green energy is contributing close to 28.1%, underscoring our position as a sustainable leader in India. We are also laying a strong digital foundation for the future. Our end-to-end digitization of the value chain from query to learning is yielding measurable operational benefits and improving EBITDA delivery. Our cement network operating center is live at our headquarters, growing in scope, enabling predictive analysis, real-time visibility, and agile decision-making. This is a transformative journey, and I'm proud that Ambuja is at the forefront of making this traditional industry younger, smarter, and more efficient. We continue to maintain a fortress balance sheet. As of quarter one Financial Year 2026, our net worth stands at INR 66,500 crore, up from INR 63,811 crore in March 2025. We still are debt-free with AAA ratings, giving us a lot of headroom to fuel growth and return value to the shareholders. To conclude, Ambuja is uniquely positioned at the intersection of capacity growth, margin expansion, digital evolution, and ESG leadership. As the industry enters an exciting new phase, we are confident that our strategy and execution will drive superior stakeholder returns in the quarter and years ahead. With that, I now hand over back to Deepak. Yeah, Nidhi, we can open the call for Q&A. Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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'll wait for a moment while the question queue assembles. The first question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead. Hi, thank you for taking my question. My first question is, if we look at, on a sequential basis, there is a sudden increase in power and fuel, logistics, and other OpEx, even adjusted for volumes. Can you please help us understand in detail what's happening over here? Thank you. That's my first question. Rahul, I'm presuming you are referring to consolidated finances, right? Yes. Okay. Just a sec. If you actually refer to Rahul, and I'm not sure which line items you are referring to, because there is an overall reduction in terms of the power and fuel and raw material on a YoY basis. If you go to slide number 12 of the investor presentation. I'm looking at slide 19, and I'm more concerned about quarter-on-quarter change. Any color on that will be very helpful. Just a sec. Let me just go through the slide 19 of the investor deck. Yes, that's right. Let me just pull the particular slide, Rahul. Just a sec. If you refer to slide 19, there is a reduction in, so the only point which is the other expenses, 12%. Otherwise, there is a reduction in all the other items, Rahul? Not really. If you look at power and fuel, it has moved from 1,263 to 1,367. Then freight and forwarding. Okay, you are comparing QoQ while I was referring to YoY. In terms of QoQ also, Rahul, for example, when it was 1,263 for the last quarter, and with, for example, when you have this acquired asset, especially when you have now Orient also, there will be some disruption on the overall tech cost compared to, say, March. In March, for example, you didn't have Orient, and now you have, say, Orient. Second is, if you also notice, the fuel cost, in fact, has come down from 1.74 to 1.57, actually. The second element of cost, which is the power cost, over there, I've highlighted that we have a higher, as of now, consumption of the power units. Some of these, again, acquired assets have that. There is a good opportunity for us to reduce by at least five units minimum in coming quarters in terms of the power consumption. Both this power and fuel, basically, will come back to the sequential numbers very soon. In terms of the fuel, for example, we have demonstrated a sharp reduction by almost 20 basis points this quarter compared to last quarter. Prospectively, also, I'm sustaining myself at those levels. This is like one time when you have a quarter when you have an acquired asset. Otherwise, you will have quite sustainable numbers on this front. Coming to the other expenses, where, for example, my overall branding and sales and promotion expenses, we actually are investing into our marketing and brand expenses and our supply chain network. You will see, and you have seen, some uptick over there. On top of it, the Orient asset also, for example, when we have acquired, it has also actually added to my overall other expenses. This quarter, you will have to look at it with the color of Orient being acquired and consolidated as compared to the previous quarter. On a YoY basis, you will see all of them are on a really healthy trend, even with the Orient acquisition. I understand. Thank you for the color that this is because of Orient acquisition, and that's exactly why I want to understand this. What would be this number without Orient? Because, see, Orient would not be that big in the overall consolidation numbers perspective, right? Any color from that perspective would be very helpful. By when should we expect this number to normalize to pre-Orient acquisition levels? Thank you. These are my questions. I think coming this quarter itself, you will see a sharp improvement on that. In terms of my outline also, when I said that now the assets have started generating, giving us good results, for example, my power costing with the renewables push, this quarter has come down by 80 basis points per unit, right? This quarter itself, you will see a good level of improvement in terms of sequential quarter. That is how, for example, when we have this acquisition and when we have this integration, it will take you a couple of months here and there. If you look at the volume part, and that is very interesting. All of my, for example, therefore, these acquired assets have done very well in terms of the volume part. Integration has gone very well in terms of the revenue, and therefore, you have seen a 20% jump on the volume part. So far as the costs are concerned, this quarter itself, you will see a good level of stabilizing there. For the bookkeeping, what would be volumes out of Orient business this quarter? No, I would refrain from doing that because, for example, as we have highlighted, overall, 18.4 million tons, because Orient and all these are part of the MSAs. Therefore, per se, Orient doesn't have its own direct sales because we have migrated from Orient brand to now Ambuja and ACC. Happier to say that these assets, for example, are operating at a very healthy level at clinker and cement both. Therefore, on an overall basis, we have a good healthy utilization of the cement capacity. Great, thank you so much. Just one final question. On an unadjusted basis, your volume grew by 20% year on year. Now, when you say that industry grew by 4%, where would Ambuja Console compare to that 4% for the industry? Ambuja Console is what we have said, 20% overall improvement. Yeah, but that's unadjusted, right? I mean, for fair comparison, when industry grew by 4%, then. Okay, let us see. This is unadjusted, you're right. If I adjust and if I only consider Ambuja and HEC, the earthfell capacity, it comes to almost 13%. 13%. Got it. Thank you so much. This is very helpful. Thank you. Thank you. Ladies and gentlemen, please limit to two questions for participants and rejoin the queue for the follow-up question. The next question is from the line of Atisha Hirathi from J.P. Morgan. Please go ahead. Yeah, hi. Thank you for the opportunity. I just had one question. This is pertaining to slide 18 of the deck. I noticed that the sales volume on a consolidated basis is at 18.2 for the last quarter in the deck. If I look at the last quarter's deck, the number was at 18.7. The EBITDA, total EBITDA, hasn't changed. I'm just trying to understand how should I reconcile the two numbers? Yeah, hi. Thanks. Basically, what we have done, because so far, CLC, which is like clinker plus cement, both were considered, but we are not in the business of selling clinker. We are more in the business of cement. Therefore, like all the other competitors, we also now will move into reporting in terms of factor of cement. For example, what we have done is also for the March, 18.2 is a cement sale. The difference between cement and clinker, that 0.5 primarily is actually for the CLC factor. Therefore, 18.4, when I'm saying, is purely a cement sale. There is no clinker factor here. That's how the whole calculation is. Understood. Thank you so much. Thank you. That is how all the other industry players, what I understand, they do it. That's how we have also recalibrated and put it on basis of the cement volumes and therefore EBITDA and everything as a factor of cement. Understood. Understood. Thank you so much. Thank you. The next question is from the line of Harsh Mittal from MK Global. Please go ahead. Thank you for the opportunity. Good evening. Firstly, congratulations to the management for a great set of numbers. My question was pertaining towards the earlier participant's concern on the volume front. Continuing with this statement, if I just exclude Orient and Penna Cements' volume in this quarter, we are standing at around 1% to 1.5% of volume growth YoY. Is it a fair set of assumptions, sir? No, no, no. Absolutely not. Absolutely not. In fact, as I said, if I adjust, for example, the acquired assets, I'm sitting on still a very good healthy volume growth of 13%. What would be the volume for Penna Cement this quarter if you can just share that number? Penna, Orient, Sanghi, for example, as a pack, we are at 18.4 million tons for a capacity which has now gone up to 105. You can safely assume that the average capacity would have been almost 95. Therefore, on an overall capacity utilization, I'm around 77% to 78%. Please allow me to give a larger volume instead of going with, because all of these are companies under the MSAs. It will be inappropriate to give you for individual unlisted company. It will be better to speak on a console volume and a console capacity. I can give you this number that around 78% is the capacity utilization. Sure, sir. Sure. That was my question. Thank you. Thank you. This will answer you. Now you can do your math, actually. Yes, sir. Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead. Hi. Thanks for the opportunity. The first question is on capacities. I see that the timelines are no longer indicated in the presentation as to what is the commissioning for each of those capacities that you were giving earlier. What is the updated timeline now if you could shed some light on that? Okay. Amit, perhaps I think because we are actually hitting now, so out of, say, earlier, we used to indicate almost 18 million tons, out of which 5 has already been achieved. So 13 is also in fairly advanced stages. Each passing month, I'm going to announce the commissioning. I can tell you that this quarter, you will see some of these capacities. By, for example, December, most of my capacities will be there, including Salai Banwa, the Penna Jodhpur, the Bhattapara, and a couple more. By March, whatever we have indicated here is what, for example, we are going to achieve. So 118 million by fiscal year FY 2026 is there to be achieved. Sure. Got it. Bhattapara is facing some delays, is what I understand, because if I remember right, you had earlier indicated March 2025 as commissioning. Why is it getting delayed? Frankly, the concern is more around because what I understand is that the Chinese equipment is what these plants are based on, and we have been reading that Chinese engineers are not being allowed into the country. Is it something to do with that, or is there any other issue over there? No, no. Per se, not. In fact, we already have this particular company who is the vendor which you are referring to, already a vendor to us for a couple of our other assets. We don't see any issue on that. This March, what you are indicating is something which is our management target. So far as what the outline timing is concerned, we are well on that. I don't see per se any issues over there. To rest you on any anxiety, no concerns on the vendor, no concerns on the execution and completion. Of course, projects of this scale, for example, when you have a brownfield expansion, a couple of months here and there because you are actually executing in an established estate, which also should not be derailed in any form and manner. These are very nominal months, a couple of months here and there. I don't see any issue or any anxiety over there. No, thanks for clarifying that. Very comforting. Also, if you could provide the cash position at the end of June. So, Amit, we can pick up from where we left. I think March end was almost INR 10,250 crore, if I remember. From there, for example, when I look at the overall, say, cash flow, we are sitting right now closer to INR 3,000 crore. This includes the overall acquisition of, say, Orient, then also my CapEx of almost INR 2,000 crore, which has been for the June quarter, then almost INR 600 crore, INR 550 to be precise for the dividend, and so on and so forth. Overall, basically, right now, we are holding INR 3,000 odd crore of cash and cash equivalent. Yeah. Sure. Lastly, what was the effective date of Orient? sorry for the interrupt. but i request you to rejoin the queue for the follow-up questions. Sure. Sure. Thank you. Thank you so much. Thank you. The next question is from the line of Naveen Rameshwar Sahadev from ICICI Securities. Please go ahead. Yeah. Yeah. Good evening. Good evening, Rakeshji. Thank you for the opportunity. Two questions, and I think that is similar to what Amit was trying to ask. Is the effective date for Orient 22nd April to be merged or consolidated, or will it be 18th June to understand the integration data? Yeah. Navin's idea is 22nd April. Understood, sir. My second question was on the overall cash outflow towards capacity creation. As you mentioned, current cash balance is more like INR 3,000 crore. Just wanted to understand how much do we have to pay for Penna because I believe there was some retention money, and of course, subject to the capacities which were to get commissioned. To answer the question, how much money for Penna is likely to be paid? I'm assuming it will happen this year. When will these Penna capacities, especially the clinker and North, come on board? Naveen, clinker should be coming to us, let us say, Q2 itself, say, by the end of September. So far as then, there are a couple of other assets like Krishnapatnam, which will be there, and small CapEx at Tandoor. They are all actually going well so far as Penna assets are concerned. When we have factored in the CapEx program, the balance small payments which are left to be paid, those will be paid within the overall guide, our contractual terms of the SBA. Yeah. In terms of the progress on the Jodhpur asset, it is absolutely bang on time, progressing well. Personally, also, I've seen a couple of times a beautiful asset which has come out, actually. This is like the technology. No, no. Great. Only one related, just clarification. Of course, you said Penna is the balance payment is included. Is it safe to assume INR 10,000 crore kind of CapEx for FY2026 as a number? You can consider maybe a couple of thousands. You can actually consider ballpark INR 1,000 here and there. INR 10,000 is a good amount to assume. Yeah, I would have considered between, say, 9 to 10, but yeah, 10 is okay. Helpful. That includes INR 10,000. INR 10,000, of course. All in, INR 9,000 crore kind of an outflow for 2026. Thank you, sir. Thank you so much. Yeah. Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead. Good evening and congrats on good set of numbers. Firstly, could you share the volume numbers for the full year now adjusted for the clinker sales? Second, can you share for the two listed subsidiaries, Orient and ACC, what would be the capex in these two companies individually, and what are the capacity enhancements for Orient, particularly there were talks of a grinding unit and a clinker expansion in Karnataka and a grinding unit in MP? Similarly, for ACC, any progress on the Wadi clinker or any other asset beyond what we have recently commissioned? Yeah, thanks, Rajesh. To first start with, your question was, what is the overall—your question was about the overall volume. Sales, console volume, except clinker sales for full year. Yeah. For the full year, while in terms of the capacity, as I mentioned, we are targeting to hit 118 million tons. Yeah. What is my overall, say, estimated volume? That is like, for example, you can broadly consider a current trend of 75, 78%, and that you extrapolate that. So far as the second question, which is about the capex at Orient, I think right now our priority is to improve the overall efficiency at Orient than immediate expansion. Therefore, this financial year, it is more of achieving the desired cost numbers and some of the debottlenecking. Definitely, there's an opportunity for us, as the previous promoters also were doing, in terms of expansion at Chitapur and a bit of, let's say, Devapur. That is like we will look at it in the next financial year. So far as MP is concerned, again, that's, for example, we will work it on, but not an immediate priority. The immediate priority for us right now is the seven, eight sites which I mentioned to you and which are strategically well located and integrate very well in our overall plan of 140 million tons. More detailed plan for Orient in terms of the growth will come out separately. Of course. Is that good for you? Okay. Yeah. Yeah. ACC. ACC. Fixed at ACC. So far as ACC is concerned, as you know. Amit was the one which we did, followed by acquisition of Asian. Now, Salai Banwa right now is progressing very well. In the next few months, you will see Salai Banwa up and running. Salai Banwa, as you know, is in between. For ACC, I've been highlighting our focus has been in terms of improving its cost efficiency, its green power, WHRS. Apart from Salai Banwa, if you also know, Sindhri, we have expanded when we announced the plan in terms of expansion. Sindhri, Salai Banwa, Wadi line is also very much in the plan. That is in the drawing boards. I have highlighted before the dismantling of the line one has already been commissioned. Therefore, that is very much in the pipeline, but not for this financial year. It will be limited initial groundwork, but it will come in the next financial year. These are like the CapEx program for ACC. More importantly is on the efficiency factors because the bridge between the overall EBITDA for ACC versus other peers is what, for example, we will bridge it very fast. As you see that in last many quarters, ACC has been catching up on that. Out of this INR 9,000, 10,000 crore, how much of the CapEx one can work out in the standalone ACC? Sorry to interrupt, but I recall just completing this follow-up. Yeah. Okay. Nidhi, I will just answer that. Rajesh, generally, you will factor of 75%, 25% between parent company and so which is like Ambuja and ACC. Sometimes 70%, 30%, or 75%, 25% kind of thing. Okay. Great. I'll come back and queue you, sir. Thank you. All the best. Sure. Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. A couple of questions. First is on ACC. There was a significant cost bump on a sequential basis for both raw mat as well as other costs. How should one look at it? Is it by any means tied to a few clinker units that we have actually shut down in South? Is it because of higher interregional trade, higher clinker cost? How should one relate it to that? Sometimes, Ritesh, as you know, given the early set of monsoon which started in June, basically, what we have also done is in terms of the scheduled maintenances. Therefore, Wadi and all, for example, which is ACC, we have actually done that. Therefore, you will find a bump whenever you have a scheduled maintenance. You will generally find a bump in the particular quarter, but on an overall year basis, you will see it gets neutralized, basically. The benefits of that will come in the subsequent quarters. That was one part. In terms of the other expenses, I actually mentioned earlier that some of the, especially for ACC, in terms of the settlement cost, the VRS, the employees' separation, and also in terms of the brand promotion and sales promotion activities, will get intensive this year. Lots of investment is being done on the brand equity, on the channel vibrancy. I also put in my initial remarks. You are already seeing results of that in terms of the price improvement, in terms of the overall volume improvement. This will continue. The delta positive impact is coming on the revenue part, while some of these investments will happen in terms of this brand and sales promotion. Those are basically the trend. Sir, my question is, we have taken out Wadi One, Bargar, and Chaibasa. How are we substituting that clinker for the GUs in South for ACC? If you see in the MSA, there's also a good movement of clinker between Ambuja and ACC. The high-cost clinker, which goes off of ACC, almost like if I have to highlight between ACC and Ambuja, this time, clinker movement has been almost 0.47 million metric tons. It gets supplied, for example, to Bargar and Chaibasa. I have Penna assets now. I have got Orient also. Sometimes when Wadi is down, then I have Chitapur for Orient, which is available to supply, and so on. The logistics-wise, whichever is the best suitable is what's being used in terms of the clinker movement and therefore supplies of cement. Don't worry. The balance of overall, if you look at the overall balance of the cement versus clinker, it is well balanced. Sir, my second question is. 64 million tons of clinker capacity, and I have almost 105 million tons of cement capacity. You can apply the factor, and then it is well balanced. Sorry. Sir, quickly, second question. Hi, sir. Am I audible? Yes, please. Yes, please. Go ahead. Go ahead. Sir, during the Marwa day, you had indicated that we are looking to simplify our marketing structure. We'll have only three layers. Have we already progressed on that? What should we make out of that particular outcome? That's one. Another quick one is one of our peers has announced commercialization of calcined clay. You did elaborate quite a lot on EAC. Is this particular variable up for us on priority? If not, why so? Thank you. No, Ritesh, as you know, calcined clay or, otherwise, if you have fly ash and PPC, I would say that I am sitting on a huge opportunity of fly ash. Therefore, those who don't have the opportunity will look around for different types of products. We have an actual advantage and as a group synergy. I would right now focus on, and there is no better substitute to fly ash, actually, because the whole chemical process of fly ash, which blends with cement, the cement quality and the cement strength is far, far superior, which is well demonstrated in many labs also. Point number one. Point number two, the calcined cement and all the specific applications are, for example, different to what normal cement can be. Point number two, what was your second question, Ritesh? Three layers. Three layers, that is like, on the marketing side. That is more internal, Ritesh. I think not right to discuss on this forum. Yes, we are simplifying. As I said, we are reimagining the whole structure, the whole org structure, the whole plant structure. You will see prospectively a positive impact and results out of it. Exactly, that's not the point to discuss on this forum, Ritesh. Offline, we can connect on that. Yeah. Sir, can I just squeeze in one? In your initial remarks, you indicated. Sorry to interrupt, but I request you to come back for the follow-up question, please. Sure. Thank you. Ladies and gentlemen, please limit to one question per participant and rejoin the queue for the follow-up question. The next question is from the line of Raashi Chopra from Citi group. Please go ahead. Thank you. Just had a question on realization post the quarter. How have the realizations been across different geographies? Rashi, thank you. I'm very upbeat about the realization. Although you will definitely, through your channels, get a different impression. Especially when we are focusing on solutions-oriented, as I said, cement, and therefore, for example, at least we have the strong brand equity, and we are actually able to get the right price. We have also upped the price of our premium cement. While you would also hear this positive from our side. I think realization. Is better off only, and it will remain better off for the leaders and those who are decisive in terms of providing high-quality premium cement and addressing the solutions. With good investment on brand equity, I think it is also seeing a good churn and volume movement. That is my submission overall. You will see different views from different corners of the industry. I would refrain because sometimes we are now following and bringing a good discipline in terms of adhering to the whole channel network and in terms of pricing and all. That will continue as a trend from our side. Just to understand this, are prices today better than what you exited in June? I won't say because that is, again, I'm seeing June, you have seen a healthy improvement in prices. I can only say that our focus in terms of continuously addressing the requirements of the customers is only going to help us and differentiate us better as compared to the industry in terms of prices. I remain positive on demand, and I remain positive on this factor also. Got it. Just on the cash that you said, INR 3,000 crore, this is on a consolidated basis, including Orient? Yeah. Now, because this call, generally, we always speak about console because companies have their own MSAs, and different companies are investing, and they share the assets. Also, MSAs always make sense to discuss console. On the cash balance of INR 3,000 crore, is it possible to split it up between ACC, Ambuja, and Orient? I would say that as of now, I don't have direct information. Yes, it is broadly between Ambuja and ACC, you can say 60-40 or 50-50. That's the trend. Sanghi and Orient and Penna, for example, they would not have barring the working capital because the cash flows have been used to make them debt-free also, Rashi. Therefore, the major cash is lying with Ambuja and then ACC. That is, for example, a broad split. Sanghi, Penna, and Orient would not be sitting on that, otherwise bare minimum working capital. Got it. Thank you. Thank you. The next question is from the line of Jaishan Deep Jadda from Nomura. Please go ahead. Yeah. Thanks for the objection, Nidhi. Congratulations on a good set of numbers, sir. My first question is regarding the cost-saving target, which we gave last year or maybe just last year of INR 530. But I understand there are some consolidation costs and higher fixed costs because of the assets that you— Jaishan Deep, we are not able to hear you. Sir, the current participant has been disconnected from the line. Should we move to the next one? Yes, Nidhi. Please move to the next one. The next question is from the line of Jyoti Gupta from Nirmal Bang. Please go ahead. Good evening, sir. Good set of numbers. I just wanted to understand what has been the contribution of South-based plants in concert with Ambuja. Since we are expecting that the prices in the South will further strengthen, will that have a significant impact on Ambuja? The second part is that while we have taken an expert of EBITDA improvement of almost INR 530 per ton by FY27, I think this year alone, from cost, we should be somewhere—I mean, price increase should commensurate to the overall EBITDA with cost. What is your sense that where should we end this year in terms of overall console Ambuja's EBITDA? Thank you, Jyoti. Jyoti, as you know, South is now we have a good large share as part of my overall capacity, almost 26%. West is 23%, which is disclosed on slide number 15 of my investor deck. South has been a good contributor for the June quarter. South, you know how it works because of the excess capacity. Therefore, you cannot predict in South, generally. I am bullish with respect to demand, and therefore, I am also positive with respect to prices. I won't comment about the overall price expectations or the EBITDA expectations, but I can only say that the EBITDA which we have highlighted and given and reported is what the EBITDA we are targeting to sustain and improve from here. Therefore, both demand and prices, I am positive. Giving specific numbers will not be possible and will also not be appropriate. Thanks, sir. Thank you. The next question is from the line of Jaishan Deep Jadda from Nomura. Please go ahead. Yeah. Hi, sir. Am I audible now? Yeah, Jaishan Deep. Yes. Hi. Sorry for that. Congratulations on a good set of numbers. Firstly, I want to ask about the cost saving, the target that we gave of INR 530 per ton. I understand in the last few quarters, there have been some consolidation costs because of the assets you have acquired. If you want to do an apples-to-apples comparison from FY2024 base, how much of the cost benefits would have come in based on the initiatives that you have taken? Under what major heads will those be? If you can give insight on that, that would be great. Yeah. Jaishan Deep, you're right. The journey of 530 continues. If I have to give a broad range, we would have hit almost 35% to 40% of that journey by now. Let us say closer to INR 200 a ton, basically, and 175 to 200, yeah. Now, primarily, let us say power is one of the factors, with the green power side, for example. Third is the logistics. These are my primary. Of course, my raw material cost, which we have sustained with advantage in terms of the long-term agreement on fly ash, which we have to do on a comparative bid basis with the group company and all. I think the raw material we have sustained. From here onwards, I'm going to see improvement on raw material, continued improvement on the power and the efficiency of the power also, and also the heat consumption. Heat consumption, while we sustain and improve on the coal cost. These are major factors. Apart from that, logistics cost. With every improvement and increase in my grinding capacity and location, therefore, my overall lead distance comes down. We're also working on a few initiatives on EV and all, which will actually bring down the overall PTPK. These are broad numbers, and therefore, gives me much more high visibility to achieve. Even for the acquired assets, they will actually complement and help us to move on our INR 530 reduction. I'm quite bullish about that. This quarter, for example, we had to fix some of the issues on the revenue part, done successfully, and we'll see a further improvement on that part with a more vibrant channel network and all. Cost, anyways, remains our forte and focus. Both will complement now to each other. Hence, my overall comfort to sustain and improve the EBITDA from here further is very high. Understood, sir. Just an extension to this before I ask my second question. On a console basis, does your 530 target still exist? Because why I ask is because when you gave this target, Orient was not in the picture. Now, Orient comes in, and I believe there will be some CapEx involved to bring it to Ambuja's cost structure. Just want to understand on a consolidated basis, on an increased capacity, is it still 530 over FY24 base, or the number has changed? The target has changed? No, it continues. For example, when we have given the numbers, we had envisaged that there will be some acquisition in the north. Therefore, we will adhere to that number. Understood. My second question is larger, sir. I think I heard you. I request you to come back for the follow-up question. Thank you. The next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please go ahead. Thank you for the opportunity. I have a couple of doubts. I don't know if I may have missed it. Our other expenses on our presentation, it mentioned 678. There's a footnote that says excluding new assets and one-time gain. Could you quantify or mention whether these are startup costs or something because of integration of the new assets? What is the difference? Will it continue, or is it a one-time expense? You're referring to the other expenses, which is 678 versus 699 of March and 689 of June. Is that the numbers you are referring to? Yeah. If I take it on a reported cost basis, it is 788. In the presentation, it's mentioned as 678. There's a delta of about INR 110, which is, better than the one-time gain which was there in the previous year. We have actually put it aligned with the comparison. Therefore, comparison on YoY basis is what we have done. If you see the footnote also, which is there, it excludes the new assets. It also excludes the one-time gain of the previous year. Okay. It will not be recurring. Would that be your right understanding for this? That gain was not recurring. Therefore, it has been. No, no. The new asset cost. The new asset cost, it won't be recurring. Yeah. That will not be recurring. That will not be recurring. Therefore, you will see now considerable improvement on these other expenses. Okay. Sir, and just one last question, sir. Between ACC and Ambuja, why do we see such a big difference in profitability? Given that this quarter, South prices went up, ACC has better recent presence in South and East, but ACC still reported very weak numbers compared to Ambuja. Pathanjali, thank you. Not very weak, for example. Let us say, yeah, ACC has its own. From beginning, if you know, the advantage Ambuja has is with respect to the Captio coal mine. While ACC is all. Third-party purchase. That is like so because fuel becomes an important factor. In terms of the power cost also, because of, again, the vintage and legacy of ACC, the power cost also, when I look at it, broadly, in the case of ACC, it is almost like INR 6.10 per unit compared to when I look at Ambuja, it is, say, INR 5.30. On an overall basis, it becomes, say, INR 5.90. Some of the efficiency investment, which are in process, but Ambuja has a higher WHRS factor, almost 21%, while in case of ACC, the WHRS factor is, say, 14.14%. There is a reason. Therefore, I said for ACC, our primary efforts are to work on the investment and the efficiencies gain on the cost. That will help us to bridge this gap of whatever INR 300, INR 400 a ton and come to four digits sooner for ACC as well. Of course, the brand equity, the brand pull is now started giving us very good results. More so, the ACC pull, that is a blockbuster product in the industry in terms of the premium. More and more focus on that will also help us to further improve the top line and the realization, which has happened, in fact, this quarter also. This is certain, which is like a time bridge. Investments are being done. They are in the plan. Therefore, this journey of cost improvement, when we said, it has actually a significant improvement of cost journey for ACC. Sir, I see a lot of spend being done for ACC in terms of marketing. Sir, sorry for interrupting, but I request you to come back for the follow-up question. Yeah. It's a continuation of the previous question, ma'am. Sir, can I continue? Nidhi, Nidhi, allow, please. Yeah, yeah, Pathanjali. Yes. Yes, sir. Sir, we see a lot of brand spend, sir, that is being done for ACC. The pricing gap between ACC and Ambuja is still pretty elevated. Are we positioning the two brands slightly differently in the market, or is there any other factor to it that I'm missing out on? Each of the both the brands have the strong brand equity, and both the strength of the brand equity is leveraged very prominently now. There is no per se promoting differently, but using their own advantages. In many pockets, ACC has a better price compared to Ambuja for the brand equity. In many pockets, Ambuja has because they have their natural strengths. For example, East and South is where ACC has been very dominant from past. The North and West is where Ambuja has been very dominant from past. That continues. In fact, now with the synergy, the blend is actually helping us on an overall basis. Please look at it on an overall basis. Of course, ACC, with its brand equity strength, is getting the price benefit. Therefore, my overall consult and also standalone ACC, you will see a good improvement in the price per bag. Thank you so much. Thank you. The next question is from the line of Sumangal Nivatiya from Kotak Securities. Please go ahead. Thank you, sir, for the chance. Most of the questions are answered. Sir, just one or two left. One on the next phase of expansion, which is 21 million tons. What is our preparedness? If you can give some color as per will it be largely greenfield now within the brownfield phases in the first phase? Also, what are the preferred locations? Sumangal, good question. The 21 million, which will actually from FY2027, 2028, basically, lots of groundwork has been done. Groundwork in terms of land, in terms of the overall approvals of CTOs, environmentals, public hearings, for example. Lots of this groundwork has been done. Therefore, it will not take more time when we actually start the project execution. Therefore, preparatory civil work, basic civil work, and pre-operating expenses and all, for example, in some of the sites have already started to happen, including appointment of the technical consultants and owners, engineers, and support. Importantly, in terms of our negotiations with the vendors as well, which is already at a very, very advanced level, we will hear positive developments on that front also. That 20 million tons is also well on track, and therefore very confident to achieve 140 by end of March 2028. Sir, some color on which regions will be the priority there? Any mix in the geographical mix are we looking at? Primarily, I think we have like Pan India, but if you be more specific than north, you will see a good capacity. In center also, you will see a couple of assets. East already we have commissioned for, for example, east, I've already seen those additions. A couple of them in west. You will see actually, that will balance it out because right now the center we are at, say, on an overall basis, the 8% of maximum capacity, so we will see more of this balancing happening across the five regions of the country. It is not per se biased towards any particular bid. Understood. Understood. Sir, for the GPA bid, what would be a strategy in case we win for the non-core assets? Sorry, I could not follow. Sumangal. Sir, we are keen to acquire GPA through the NCLAT. What would be a strategy for the non-core assets which comes along with the cement assets there? Sumangal, basically, as you know, Adani Group, as a company, has actually applied for that, and therefore it would not be fair from my side to comment. Cement and non-cement as a complete pack, it's Adani Group which has actually applied for it. I would refrain from anything further on that. Okay, thank you, sir, for the clarification and all the best. Thank you, Sumangal. Thank you. The next question is from the line of Kunal Shah from DAM Capital. Please go ahead. Yeah, hi sir. Just one question from my end. I just wanted to understand how is the brand integration process progressing in South, especially from Penna Cement's plant? Like any positive or negative surprise there? Specifically, how is Ambuja Cements' brand positioning in the trade channel in South? Very positive, Suman. Very positive. In fact, why Penna? In fact, now Orient also completely brand penetration has happened and migrated to Ambuja and ACC. Both, for example, Penna and Orient have done very, very well. Dealers have received it very, very well. All the dealers have also got onboarded into Ambuja and ACC platforms. In terms of my overall volume improvement, for example, and when you see, and obviously you can do an assessment because when I said, when I do the adjustment, 13% is there, and without adjustment, almost say 20%. This 7-8% which has come from Orient also, Orient and Penna, is nothing but coming from this integration and penetration of this brand of Ambuja and ACC. They have also helped us to improve with a better price realization. I'm very happy with this transition. Just clarifying this one thing, like geographies of north and west where Ambuja Cements is specifically A or A plus, is it the same positioning in south also where Ambuja Cements was not present like your AP, Telangana, Tamil Nadu? Just wanted that quick clarity. No. I think from a positive perspective, both Ambuja and ACC remain as A category brands Pan India, including South. Understood. This is very helpful, sir. Thanks a lot. Thank you. Ladies and gentlemen, we'll take this as the last question for today. I would now like to hand the conference over to Mr. Deepak Balwani. Over to you, sir. Thank you. I trust that most of your questions have been addressed. Should you wish to discuss any outstanding query, we are available for a separate conversation from 5:20 to 5:45 P.M. today. You have my contact number. Please feel free to call me. Thank you. Thank you, Nidhi. Thank you, everyone. On behalf of myself and Rakesh, thank you all again. Thank you. Thank you very much. On behalf of Prabhudas Lilladher Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.