Ladies and gentlemen, good day and welcome to Star Cement Limited Q4 and FY 2023 earnings conference call 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 this 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. Thank you and over to you, Mr. Agarwal. Thank you, Nirav. Good afternoon, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the Q4 FY 2023 and FY 2023 call of Star Cement Limited. On the call we have with us Mr. Tushar Bhajanka, Executive Director, and Mr. Manoj Agarwal, CFO of the company. I'll now hand over the floor to the management of Star Cement for their opening remarks, which will be followed by interactive Q&A. Thank you and over to you, Tushar. Yes. So good afternoon all. My name is Tushar Bhajanka and I'm the Executive Director of Star Cement. I would like to welcome you all to the earnings call of quarter four. I have Mr. Manoj Agarwal, who's the CFO of the company. He will give out the numbers of quarter four and the year, and then we can have a Q&A session. Thank you. Yes. Thank you. Hi friends. Very good afternoon. I on behalf of Star Cement Limited welcome you all to our phone call for discussing our numbers for Q4 FY 2023 and full year numbers of FY 2023. I would like to clarify that we are discussing on the historical numbers and there is no indication to invest. Having said that now, I will just take you through the Q4 numbers followed by the full year numbers. Starting from clinker production, during the quarter ended March 2023, we have produced 778,000 tons of clinker as against 671,000 tons same quarter last year. So far as cement production is concerned, we have produced 1,253,000 tons this quarter as against 1,159,000 tons same quarter last year. A growth of more than 15% in clinker and more than 8% in cement. Now I will take you through the sales volume. During the quarter we have sold 12.35 lakh tons of cement and no clinker as against 11.52 lakh tons of cement and negligible quantity of clinker in same quarter last year. This is as far as cement and clinker sale is concerned. There is a growth of more than 7% in volume. As far as the geographical distribution of cement is concerned, in Northeast we have sold around 9.12 lakh tons as against 8.08 lakh tons during same quarter last year. And as far as outside Northeast sale is concerned, we have sold 3.23 lakh tons of cement this quarter as against 3.45 lakh tons same quarter last year. In terms of blending mix, it is almost 8% of OPC and rest is PPC. These are the quantity number of the quarter. Now I will take you through the financials. The total revenue figure this quarter is around INR 820 crores as against INR 740.48 crores same period last year. As far as EBITDA figure is concerned, this quarter we have done an EBITDA of around INR 179 crores as against INR 123 crores last year. Profit after tax is INR 96 crores as against INR 88 crores in same period last year. This is an account of increased tax expenses due to the sunset of tax exemption period in respect of company Guwahati Grinding Unit and its subsidiary Star Cement Meghalaya Limited. However, cash outflow will be matched only. On per-ton EBITDA front, it is INR 1,448 during this quarter as against INR 1,063 same quarter last year. This is what our quarterly numbers of Q4. The total revenue figure for the FY 2023 is INR. 2,696 crores as against INR 2,219 crores last year. As far as EBITDA figure is concerned, during FY 2023 we have done an EBITDA of around INR 520 crores as against INR 379 crores last year. Profit after tax is INR 248 crores as against INR 247 crores last year. That is same level despite of increase in EBITDA of INR 141 crores due to the increased income tax, as, increased income tax as explained before. On per-ton EBITDA front, it is INR 1,297 during FY 2023 as against INR 1,112 per-ton last year. These are the quarterly and yearly numbers. Now I request all of you, that if you have any query, you can ask the same and I will request Vaibhav to moderate the query wherever it requires. Thank you. 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 your touch-tone 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. Participants, you may press star and one to ask a question. The first question is from the line of Amit Murarka from Axis Capital. Please go ahead. Yeah. Hi all. Good afternoon. So just firstly on your expansion plan, can you just detail a bit out where we are on that Meghalaya clinker expansion and the grinding units that are attached to them? Yeah. So hi. Good afternoon. So the Meghalaya clinker plant, the 3 million ton plant, is due to be commissioned in January next year as explained in the call earlier. The grinding unit in Guwahati should be commissioned in November this year. The grinding unit in Silchar should be August to September next year. Okay. Is there other CapEx? It was, I think, around INR 2,100-odd crores. That number stays unchanged? Yes. So, you know, till now the CapEx to these projects have been about INR 430 crore. And we expect, in this financial year, outlay of about INR 1,300 crore towards these, you know, towards these expansions. Okay. Okay. And also just on the quarter, so, like, I didn't get the volume number actually. I joined the call a bit late. So. Yeah. It is 1,235,000 tons this quarter. Okay. Yeah. So YOY, that's a growth of about 7% in quarter four. Right. Right. Also, just on power and fuel, generally we are seeing a reduction in the line item across the board. Where were you in Q4 on an Rs./kcal basis and, like, how much expected reduction can we expect on that front? Yeah. So, you know, so I, you know, in quarter three our average cost was about 2.1. And even in quarter four the average cost remains about 2.1. And the reason is because we had stock from, you know, we had a healthy coal stock which is which we used in quarter four. But going ahead we do see a reduction in the coal prices as the spot option is, you know, now prices in spot option is now coming down. So yes, I think similar to other, you know, players in the industry we'll also be seeing a decline in the per GCV cost of coal. Okay. Could you just guide a bit more on that? Like, will this be a 10% reduction or 20%? Yeah. So I think what we are aiming for quarter one is about 1.8-1.85 INR per GCV. Okay. We should go down a bit more in Q2, right? I mean. Yeah. Yeah. It should progressively fall. I mean in Q2 because this was basically for Q1. Okay. Okay. Would you also be able to detail out the fuel mix as well for the quarter? Yeah. So, you know, so about 25% of the coal came from Nagaland. About 45%-47% was spot auction through Coal India. And about 15% was biomass, and about, you know, 15% were other AFRs. Okay. Okay. Thank you. I'll come back in the queue. Thanks. Thank you. Participants, you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Thank you, sir. Yes, sir. For this quarter in terms of trade sales, was how much? And the non-trade sales? Sorry. Can you just repeat the question once again? What was the trade sales and non-trade sales for Q4 FY 2023? Yeah. So, we sold about 80%-87% of our overall volume was sold and traded. The premium share was about 4%. 4%. And, just to clarify, PPC share was, you said, 88%? Yeah. So PPC share was about 90 about 91%. 91%. Just trying to understand, our trade sales has actually slightly declined. So from 92% to 87%. And, also at the same time, last time we said we are looking at to increase non-trade sales 7%-8%. So, where are we on that? Yeah. So I think, you know, on the trade/non-trade ratio, the reason why the non-trade sales have increased is because the margin the non-trade has really improved, you know, because there is generally a shortage of clinker in the Northeast and so the prices for non-trade have significantly increased. That is the reason why we have again focused on non-trade in quarter four. And in terms of premium cement, you know, we are you know working on the premium category and we do plan to launch a new category, you know, a new brand under the premium cement category, you know, so that we can actually have a demand pull as well for the product. So that product we plan to launch in quarter one, end of quarter one. And so, you know, with the new launch of the new product, I think there should be a good push towards the premium cement category. Okay. So, we are looking at 7%-8% or more than 10% kind of a premium set? No. So I mean it just depends on how well the product is taken by the market. But we do plan to, you know, in the next two quarters we do plan to ramp up our premium cement sales to a, you know, close to a double-digit number. Okay. Sir, what was the lead distance for this quarter? It was about 224 kilometers versus 211 kilometers in quarter three. Okay. So it has increased, to that extent. Sir, so broadly in terms of the volume, so definitely what we promised for this year we have achieved in terms of the 17% growth, 4 million tons that we have achieved. So now how are we looking at on the volume growth for this year? And also in terms of the profitability we were having a stand of INR 1,200-INR 1,250 EBITDA per ton. So what's the new stand? So I think, in terms of volume growth we are looking at a healthy volume growth this year as well. So the target is, of course, to grow by more than 12%-13%. And in terms of profitability we do maintain, you know, the profitability at about INR 1,250-INR 1,300 per ton. Okay. And in terms of WHRS, has it started? 12.3 MW WHRS was supposed to start in February. Yes. So, the WHRS has started but the benefit, you know, because we did not accrue the entire benefit of WHRS in quarter four. So it broadly started in quarter one, this year. And, you know, and I, you know, now it is running, you know, since May it has been running in full capacity and we do expect that in quarter one we should see benefits of WHRS kicking in. On a full year, kind of a, we were looking at INR 45 crore-INR 48 crore kind of a savings that is possible? Yes. I think we have missed April as a month, because we were still ramping up our WHRS. There were some seizing problems there. But, you know, from mid-May onwards I do think that we are going to accrue the entire benefit. So yes, I think probably not INR 45 crore but INR 40 crore is the amount that we're looking at in WHRS. Okay. And lastly on the pricing, sir, have we posted March so have we seen any, any, decline in the prices? So whatever the broadly for this 1.5-2 months, the average prices is it 1%-2% lower or flattest? Yes. So I think in Guwahati sorry, in Northeast, you know, we have seen a price hike of about INR 10, rather than a decrease. However, in, you know, in outside Northeast which is basically West Bengal and Bihar we are experiencing a price drop of about INR 10. So the Northeast markets have increased the prices by INR 10 and, right now the, outside markets are, down by outside Northeast markets are down by about INR 10 for that. Siliguri plant utilization for this quarter should be around 60%-65%? It was about 73%, this quarter. Okay. Okay. Thank you and all the best. Yeah. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. Participants, you may press star and one to ask a question. The next question is from the line of Amol More from Singularity AMC. Please go ahead. Amol More, may I request to unmute your line from your side and go ahead with the question, please? Amol More, can you hear us? Due to no response we move on to the next participant. A reminder to all the participants, you may press star and one to ask a question. Next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead. Yeah. Thanks for the opportunity, sir, and congratulations on good set of numbers. My question is with regard to silicon unit utilization. This year we have operated around 55% utilization level. So how do you see these utilization levels going ahead in FY 2024? So, you know, of course one of our aims is to utilize the silicon plant. But, you know, given that we are constrained for clinker in this year, you know, our focus is going to be Northeast and we are seeing a very good growth in Northeast. So, given that and, keeping that in mind, I think the focus for the organization is to, first, make sure that we tap onto the growth that we are experiencing in Northeast and then probably focus on outside Northeast markets. So, you know, so I think we are looking at like a 10%-12% growth in outside Northeast markets as well, but we are not very aggressive in those markets. Okay. So you mean to say that once this new unit, a new clinker unit, comes, then thereafter, this utilization of the silicon unit will increase? Sorry. Can you please repeat that? So once your new clinker unit comes in Meghalaya, so thereafter we, you know, want to see in the Silicon unit production get increased? Yes. Of course. So I mean once we get the clinker plant set in then we will also focus on outside Northeast markets to basically, you know, fill in the volume gap. But again, you know, even after the clinker plant sets in, you know, our, our, you know, our focus, of course, is going to be Northeast because it's much more profitable for us. And for, you know, selling extra volume we will definitely look at outside Northeast as well. Okay. Okay. And what has been our cash and cash equivalent, in FY 2023? Sorry. Can you repeat that? Cash and cash equivalents in FY 2023? Cash and cash, bank balance in FY 2023? Yeah. So right now it is about INR 530 crore. Okay. So, since we are doing expansion of INR 2,200 crore, so, do you also need to take a certain date for this expansion and is in how much date you are going to take for this expansion? I think the overall debt could not exceed more than INR 500 crore. And that also will be repaid in the first year of commencement of the expanded capacity. Okay. Okay. Okay. And last one, our other expenses have increased in this quarter. So any particular reason for that? Yeah. Sir, there are certain regroupings that are happening from manpower to other expenses and also the packing cost because the volume have increased. So packing cost, cost and storage space expenses have also incurred. And also, there are certain CSR expenses that are there. So if you need the detail I will, you can ask me. I will reply to that mail, okay, separately. Okay. Okay, sir. Okay, sir. That's all from my side and all the rest to you. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. 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. Congrats on good set of numbers. First of all, this kcal, costing 2.1 in Q4. Could you share the number for the average of FY 2023? Yes. So the average cost for the year is about INR 2 for GCV. 215, 15? 2, 2, 2. INR 2 Yeah. INR 2. Okay. And this in Q1 now has come down to around INR 1.8, right? No. So in Q1 it should be about 1.9 and 1.85 to 1.9. And in, you know, Q2 I think the main benefit of the decrease in coal costs will start showing, reflecting in the. Mm-hmm. Okay. Understood. Understood. And second, on the electricity cost, what would be your average of consumption cost, in FY 2023? The electricity cost would be about INR 6.5 per unit in the main clinker plant and about INR 7 in the grinding unit. Okay. And do you see any softening in this also with fuel prices coming down? You know, so I think, you know, not right now because in the clinker plant we produce our own power. So, you know, a captive power plant. For the coal, you know, because the GCV cost is for us not coming down significantly, so I do not expect the cost of power to reduce in the clinker plant. But I think there is a softening in the IEX rate, which, you know, which is the source for the power in our grinding unit. So I think there we should be seeing some benefit of the reduction in IEX rate. Okay. And in terms of raw material, primarily fly ash, what has been the cost trend in FY 2023? Have been they stable or they have gone up when fuel prices were going up? So the cost of fly ash has broadly been stable. You know, nothing too alarming, but I just need to. So I think it has gone up by about INR 50. INR 50 a ton? Yeah. Yeah. Could you also discuss on the incentives accrued in P&L in FY 2023, incentive income? What is the outlook for next year, FY 2024? Yes. So, basically we had about INR 125 crores of incentives in FY 2023 out of which, you know, which, you know, a major majority of this benefit was still January 2023. So, you know, in the month of February and March we have actually not gotten a majority of the benefit because it, it finished off in January 2023. So in quarter four, we only got a benefit of INR 19 crores. Okay. Outlook for FY 2024 on these existing operations? So, you know, I do not think that there'll be any subsidy kicking in in FY 2024. Though, of course, we are getting, you know, a SGST benefit in the new grinding unit that we're getting in Assam and that has already been, you know, discussed and signed with the government. So once our new grinding unit's commissioned and once we pay the, once we get the credit for the GST in the expansion, then we should have the even the, you know, then the benefit of SGST will start kicking in but that will be in the next financial year. Right. Right. And only on the grinding unit or even for the clinker expansion you will be getting incentives? So in the clinker expansion, because we are expanding in the same company, SCL, there is a benefit in the, you know, in the current line of SCL, which will be also passed on to the expanded capacity. So we do expect some benefits that will not be as significant as the benefit in the grinding unit. Okay. Okay. Is it possible to quantify the incentives, annual incentive accrual which you foresee once, you know, the input credit is exhausted? Yes. So I think, you know, we basically will get a net GST off, SGST off, in, you know, in all the volume that we sell in Assam. And right now we are selling about 1,700,000 tons in Assam and, you know, at that point we'll be probably selling about 2,000,000 in Assam. So I think it's just a function of multiplying that volume with the amount of SGST per ton, right? So it would be a significant benefit. Great. Great. Thank you. All the best. We'll come back in queue. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. Participants, you may press star and one to ask a question. The next question is from the line of Amol More from Singularity AMC. Please go ahead. Amol More, your line is in talk. Please go ahead with your question, please. Due to no response we move on to the next participant. Ladies and gentlemen, you may press star and one to ask a question. Next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Hi, sir. Sir, in terms of the demand, I just wanted to understand for FY 2023 broadly if I have to look at. So excluding the Northeast, how it has grown in BR, West Bengal, Jharkhand, Odisha, Chhattisgarh, and how do you see that for FY 2024? So in outside Northeast here grown by about 34%, in trade. So it was a good, you know, growth for us in outside Northeast, mainly because the base is small for us. But we do not expect the same growth rate in outside Northeast going forward. We expect a growth rate of about 10%-12%. But for FY 2023, definitely our base was lower and so we were able to grow 34% outside Northeast. But in general for the industry, one has to look. Is it the case that, except Bihar, all other states, Jharkhand, Odisha, Chhattisgarh, have seen a very, very marginal kind of a growth? Yes. That is true. So the growth rate has been, you know, about close to 5%, I guess. How about Bihar? Okay. Bihar would be also very similar. You know, close to a 3%-5%, something on that range. So any specific thing that and how things were in Q4? So just trying to understand why normally the perception is that the East is growing much faster. So what has happened and will it now has came back to the normal levels, double-digit plus kind of a growth now? So Q4 was the number the similar kind of a 4%-5% growth in East, and how do we see now? In East for us the number was very similar. It was like a 4%-5%. I'm talking about Star Cement. I'm not talking about, you know, the market in East. For us, you know, in Q4 outside Northeast we grew by about 5%, in, in outside Northeast. You know, I'll have to come back to you with the numbers of the market, how the market grew. Okay. Okay. Okay. Thank you, sir. Thank you. Thank you very much. Ladies and gentlemen, you may press star and one to ask a question. Market? Participants, you may press star and one to ask a question. Participants, this will be the final reminder for questions and no further reminder will be made. Yes. Next question is from the line of Kamlesh from Lotus Asset Managers. Please go ahead. Yeah. Hi, Tushar. Good to be seeing you. Just one question on the part of, like, the aspiration side. Like, say, what's your game plan for, like, say, next five-odd years, apart from Northeast and East area, East region? And what people you have brought in to achieve that particular thought process or the reason? So I think that's a good question to ask. You know, so I think, of course, the next five-year plan is definitely because, you know, once we set up the capacity in Northeast of about 3 million, you know, and the grinding units, I think for the next four, five years we do not see, you know, any scope of putting more capacities, right? So I think the, you know, so if we have to grow and I think we'll have a very healthy cash flow to grow, we'll have to grow outside Northeast and we are actively looking at mines. We are also looking at smaller plants that we can acquire and then we can probably grow inorganically or organically. So I definitely feel that, you know, the growth going ahead for the company will have to come from outside, from coming out from outside, like, you know, coming out of Northeast. And you know, and I think in the last one year we have also built up the capabilities in the organization to embark on the journey. You know, so we have gotten, you know, so if I start from the start of the year, so I think we have gotten a new, you know, manufacturing officer who's looking after all the plants, who also brings in capability of mines, you know, to the company. We have changed our HR head as well a year back, you know, who's bringing in a lot more people in the mid-management level. And, of course, a week back we have, you know, our new CEO, Mr. Vinit Tiwari joined us, you know, and of course with his expertise in other markets in north and east, we do hope to, you know, look at, you know, opportunities which are viable for us and to grow in those markets. Tushar, secondly, like, our one of the largest competitors is also bringing a large capacity in Northeast. Yeah. Don't you think that there could be some competitive pressure? I know, like, say, it's hardly a Dalmia in terms of the clinker capacity. But do you see some pressure on that front or the volumes or the strong demand would take care of that? Oh, so I think, you know, it's a function of, of course, we are, you know, even Dalmia is getting a capacity of about the same, you know, about 3 million tons. And, you know, but there's the other players, the smaller players in Northeast are not really expanding at the moment. So I think that will be a source of relaxation, you know, because I think then, there are only two players effectively, competing and the rest of them are, you know, not really part of the game. So I think that would be, you know, a benefit which probably will mean that our growth rates, the company's growth rates will be higher than the market growth rate. You know, secondly, you know, there is some cement coming from outside basically being dumped in Northeast, you know, and I think once we have the clinker capacity and we become aggressive, and we attack the white spaces, then I think it'll be, you know, then probably we'll be able to curb some of the cement coming in Northeast and I think that'll again become a growth center for the company. So I think, going ahead, of course, you know, in the first year or first one and a half years, you know, there may be a competitive pressure but in the long run I do think that both the companies and Star Cement would be able to, you know, get a healthy growth and be able to utilize the capacities as soon as possible. Okay. And, lastly, like, like, finding or coming to new areas other than Northeast, so what would be the timeline over there? So, you know, we are actively, you know, looking at assets, you know, and I think we should have something to at least share by quarter two. So that is basically the timeline that we're looking at, you know, and it really just depends on what clicks when. So it'll be hard to, of course, give a definite timeline, but yes, we are aggressively looking into it, and we should be able to at least draw up a plan by quarter two. Great. Wishing you best of luck and great interacting with you. Thanks a lot. Thank you. Thanks a lot. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead. Guys, you know, could you discuss on the demand trends outside of Northeast from, particularly in states like West Bengal, Bihar, Jharkhand, which are your focus markets, for FY 2024, what sort of outlook you're looking at? We are, you know, broadly looking at a 7%-8% growth in these markets. Okay. That is your growth or market you're looking at, the market growing, in these places? That's the expectation of how far the market would be going, 7%-8%. In all the three markets you're looking similar growth trajectory? Yeah. Yeah. FY 2023, I missed. I believe you made some comments on the same. All these three states, and if you're, you know, some trend on the other states in east, what were the growth numbers? I think the growth number was close to 5%, you know, to my knowledge. I don't have the numbers, you know, really ready with me so I won't be able to comment, you know, with certainty. But that's, you know, that's, that's what I, you know, assume the market has grown by. Mm-hmm. Mm-hmm. Mm-hmm. Okay. Okay. Great, sir. ठीक है। I'll come back, Team Q. Thank you. Thank you. Next question is from the line of Shravan Shah from Dolat Capital Markets. Please go ahead. Sir, just to clarify, when we mentioned that in Q2 we will come up with an update in terms of the expansion outside Northeast, so that we will be announcing that, where we will plan to grow by, let's say, next 3-4 years. So, that's the way one can look at and, broadly, even if we, let's say, want to either acquire a small plant or grow, what's the minimum capacity we are looking at, 2 million ton that we are looking at? Yeah. So yes, I think there's, you know, to grow outside there are two or three opportunities, right? One is to acquire a mine, the second one is to acquire a plant. So it would just depend on, you know, what opportunity clicks with us and, you know, how, how does it pan out. So I think in terms of acquiring a mine, the CapEx would be much lower and then acquiring a plant of 2 million, the CapEx will be a bit higher. So I think, you know, so we haven't, like, really tapped on, you know, which route we're going to take. So I think it'll be a bit hard to comment. So yes, you know, in terms of, you know, in case we, we take up a, you know, we take a plant, then it would be of about 1.5 million ton at least. Okay. And when we say that, our next debt, once the new all the clinker and two grinding units will be operational, in one year we will be able to repay. So that one year will start from the August, September, when we'll start the Silchar grinding unit. So from there we are looking at one year to repay the entire this INR 500-odd crore that we are looking at next debt. We are looking at, basically we're looking at, 2024, 2025 year. So basically, you know, from March 2024 the year starts where we start, you know, where we distribute. So by March 2025 we should be, you know, again debt-free. So, does that mean that we should be able to easily can see a 50%-60% plus kind of a utilization from the first year itself? Yes. So I think we do see, you know, about a 40% kind of a utilization, 40%-50% utilization. But I think it's just how the economics work, the subsidies work, the cost, you know, effectiveness of the cost efficiencies of the bigger kiln works, right, that I'm very sure that we'll be able to pay it off in the, in that year. Okay. Lastly, just to clarify, we said that now we do not have any incentives. So in FY 2024, no incentive except the new grinding unit that will come up in Assam will have a state GST benefit. So we do normally have extra 1,700,000 tons volume that currently we are doing. So only that benefit will come as an incentive. Yes. So basically we have a benefit going on even now that is in the clinker plant and the benefit is small. It is about 26-27 crores, I think, you know, so I think that benefit will remain and then we will get that benefit in the grinding unit, in the new grinding unit and that benefit should be of at least INR 150-160 crores every year. Oh. Okay. Okay. Okay. Thank you, sir. Thank you. Thank you. Next question is from the line of Raj Gandhi from SBI Mutual Fund. Please go ahead. Hi. Thanks a lot for the opportunity. Just your freight cost for the quarter, you know, freight cost per ton is down by about 20% YOY and 10% Q on Q. So is it again some regrouping or how is it going down so much? Oh, Raj, there is one thing because the year, because the fleet now, you know, we have the own fleet. So generally March, February March prices tend to increase. Okay. So but we have the fleet so we are managing properly so we have not allowed to increase the freight cost per ton in this last February, March. So that is the reason the freight costs have not increased, as compared to Q3 and there is some saving in the freight cost. Okay. Okay. Great. And on fuel, did you happen to mention that 15% is biomass and then there is another, 15% from other fuels? So then does the cumulative AFR go to 30% or? Yeah. So I think the cumulative AFR right now is of about 25% and, that is mainly because, you know, our power plants are operating on biomass and also because we get, you know, low-grade AFRs, you know, in Meghalaya which helps us in, of course, meeting the 25% requirement. Okay. Okay. Thanks. Thank you. I'll hand the conference over to Mr. Vaibhav Agarwal. Yeah. Thank you, sir. I had a few questions actually. So, just an extension of Kamlesh's question, first thing I wanted to know is that Mr. Vinit Tiwari, he comes from a marketing and sales background, from Nuvoco and his earlier assignments. So, Tushar, I wanted to ask you that, he coming on board, do you have any specific expectations from him as the next CEO of the company and how do you look, him getting on board for Star Cement in particular in case of nature of his assignments? No, completely. So I think, Vaibhav Agarwal, of course, a huge expectation from Mr. Vinit Tiwari given his, you know, pedigree and, the kind of experience he has and, you know, some of the expectations is, of course, to, make Star Cement even more operationally, capable and to bring in the efficiencies. The other expectation is, of course, to see a growth, good growth rate in Northeast because Northeast being a very highly profitable market and given that, you know, he has a, vast experience in marketing, it will be, you know, something, which we're looking at. I think in marketing also there are good scope of improving ourselves, like, you know, how we discussed about premium cement. So to push premium cement into, you know, to, to make the technical services stronger. So these are some areas in marketing which, of course, you know, he can greatly contribute to. You know, overall in the overall team, of course, we look at, you know, his expertise in outside Northeast markets like North and, you know, the Eastern market, you know, to, of course, grow the company in those, you know, in those markets by, of course, taking capacities which are already set or to take mine and then set up new capacities. So I think the expectations are, you know, high and I think we really hope that he delivers on it. So I also like to ask you, Tushar, that, so any change in, like, we had an CEO structure earlier as well, maybe about 3, 4 quarters back and so any change in management structure at Star Cement with Vineet, sir, coming on board and how do you look, because you have changed a lot of HR policies in Star Cement. I believe you have commented some of those on the call as well. So any change in this time with Vineet, sir, coming on board or you, you it's the same way that the, like, the earlier CEO functioned and you would like to comment anything on that too? No. So I think, you know, with Vineet ji coming in, of course, all the functions, you know, in Star Cement will report to him and, you know, and, and that is, of course, very clear. And so I do not, you know, I do not know, you know, which earlier structure we're comparing it to but I think, you know. No, I was comparing to when Sanjay, sir, was there on board, when he was the CEO also. I think, yeah, from there I think it's a it will be a bit changed because even the expansions and, the growth, you know, falls under the CEO now. So I think it will be a bit of a changed structure to what, you know, the earlier CEO had. So, yes, I think there would be a change in, you know, the scope of what he's managing. The last thing from this, from this question specifically, I just want to know, sir, so going forward, is fair to assume that, Vineet, sir, will be focusing more on the marketing and sales efficiency like you told and, you would be focused more on the, overall, growth roadmap of Star Cement as to how to take it forward from a promoter's perspective? Is that a fair assumption to make, and what do you think Star Cement could be in next? So you did tell on the call that by end of Q2 you may might come and share something with us in terms of your next roadmap, but next, say, next three to five years, we already have a roadmap of 10 million tons in the near future, but three to five years, what do you see this number to be, maybe 15 million tons, 20 million tons, 25? What is your expectation? No, fair enough. So I think to answer the first question, I think, you know, of course, Vineet ji has the expertise in, more, you know, and experience in marketing but he would be looking at, you know, all the other functions as well and so his role will be, of course, as a CEO and, you know, and, besides the operations, he would also be, you know, helping, us, you know, as the management to kind of, take, you know, decisions on going outside, Northeast as well. So I think that is broadly how, you know, his, you know, job would entail and, the 15-20-year horizon, sorry, sorry, next 5-10-year horizon would be that you'd want to be a 20 million ton company, you know, and, and that is what we really want to start out and, progress, the work on. So 20 million you are saying in the next 5-10 years or like 3-5 years? I just got a bit confused there. No, no. 5-10 years. Sorry. 5-10 years as it is about 20 million tons. Okay. Great. Great. And Tushar, just one small thing, did you mention on the call that INR 500 crore would be your debt? Are you talking about peak debt here or are you talking of debt and and FY 2024 end? No, I think that's the peak debt that we're talking about of about INR 500 crore. Okay. And can you also, sir, spell out the CapEx numbers for FY 2024 and 2025? Manoj, sir, if you can just tell what are the CapEx spends in FY 2024 and 2025 pipeline, incremental CapEx? I think in 2024 we're looking at a CapEx of about INR 1,300 crore and, you know, in 2025 we'll be looking at a CapEx of about INR 400 crore. Okay. Thanks a lot, Tushar. So on behalf of PhillipCapital (India) Private Limited, that concludes the call. Thank you very much, Tushar. Thank you very much, Manoj, sir, and Vineet, sir, also. Thank you very much for the call. Many thanks to the party for joining the call. Nirav, you can now conclude the call. Thank you so much. Thank you very much. On behalf of Phillip Capital (India) Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.