Ladies and gentlemen, good day and welcome to Q4 and FY 2023 earnings conference call of Nuvoco Vistas Corporation Limited. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. The company assumes no responsibility to publicly amend, modify, or revise any forward-looking statement on the basis of any subsequent development, information, or events, or otherwise. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Madhumita Basu, Chief Strategy and Marketing Officer of the company. Thank you, and over to you, Ms. Basu. Thank you. Good evening, everyone, and a warm welcome to the Q4 and FY 2023 earnings call of Nuvoco Vistas. Looking at the year gone by, the financial year was dynamic for the entire industry. On one side, cement demand has shown robust growth coupled with improvement in prices from FY 2022 levels, with East outperforming the All India average. On the other hand, soaring energy costs has impacted margins during the year. However, softening in the fuel prices from Q4 FY 2023 has provided support to margins in the later part of the year. On the economic front, the macroeconomic indicators demonstrate a positive outlook for the sector as annual consumer inflation in India eased to 5.7% in March 2023. Manufacturing and investment activity is expected to increase in the economy due to the government's emphasis on capital expenditure, better capacity utilization in manufacturing, double-digit credit growth, and moderated commodity prices. With the government's continued focus on developing infrastructure and rural housing, cement demand is expected to remain strong in FY 2024. Coming to the industry performance in FY 2023, cement demand in East and North have witnessed robust demand growth during the year, driven by rural housing and infrastructure. However, looking at the regional dynamics, especially the states of Bengal and Jharkhand, witnessed subdued demand growth during the year, moderating our overall sales volume growth during the year. However, we have stayed focused on our premium products and on trade volumes in FY 2023, and this will continue to be a major thrust area for us. Nuvoco has one of the highest cement-to-clinker ratios in the industry at 1.82, with continuous focus on blended cement. Prices have improved from FY 2022 levels, with East at 7% outperforming All India average of 3%. However, price increase in FY 2023 has not been adequate to contain pressure from the high energy cost. Given this environment, I now move on to sharing some strategic and operational updates. Continuing our thrust on premiumization and innovation, we have successfully added Concreto UNO, Duraguard F2F, and Concreto Glyde to our premium product portfolio during the year. We have sustained investment in brand building with focused brand association programs for brand Nuvoco. We have launched on digital platform engagement films as a marketing communication campaign for brand Duraguard, which showcases its unique selling points. The campaign has been well-received, attracting more than 10 million-plus impressions with stakeholders. An update on our projects. We have been prudently prioritizing our CapEx on sustainability, debottlenecking, payback-based projects, and north footprint enhancement. A quick update on our ongoing growth and debottlenecking programs. Cement capacity expansion to 1.2 million ton per annum grinding unit at our Bhiwani cement plant in Haryana is ongoing. Civil and fabrication advancement is on mark, and all major orders have already been released and deliveries are on track. This will take our overall cement capacity to 25 million metric tons per annum. The alternate fuel co-processing and pre-processing systems have been commissioned at Risda and Nimbol. This will facilitate our handling of a wider range of alternate fuels with increased waste recycling tonnage in FY 2024. Railway siding projects are on track at both Jajpur and Sonadih, and commissioning is planned later in the financial year. Clinker capacity enhancements at Risda and Nimbol are on stream within H1 FY 2024 deliverables, and the latter will support our grinding unit expansion in Bhiwani. Ready-mix operations. Our ready-mix concrete business has seen improved revenues by 24% in FY 2023, with premium products and new products comprising almost one-third of the business. We see the ready-mix business gather momentum and will utilize this opportunity to ramp up our Pan India Ready-Mix presence. Our commitment to this business is demonstrated by back-to-back commissioning of our Guwahati and Coimbatore plants. I share here with pride that the Guwahati plant is the first all-women led ready-mix plant. Modern building materials. The company remains committed to offering a diversified range of products to meet our customers' construction needs. This business has recorded a near 20% growth in FY 2023. On the people and processes front, at Nuvoco, we recognize people and processes as key to remaining agile and competitive. In the year under review, the company launched the Nuvoco University, a platform to upskill people via e-learning and classroom trainings. The company has in place program leads for process-oriented performance improvements and Project DEN to digitally enable internal and external stakeholders. On sustainability, the company stays committed to its sustainability initiatives by concentrating on raising the consumption of alternate fuels and has exhibited an exit rate of 12% DSR in FY 2023. We have one of the lowest carbon footprints in the industry, with net carbon emission at 465 kg CO2 per ton cementitious material in FY 2023, primarily driven by good focus on blended cement, WHRS, AFRs and improving thermal efficiencies. Reiterating our commitment to sustainability, we have launched a company-wide program named POPP, Protect Our Planet. This has been taken as a company strategic action and is chaired by an ex-co team. Activities encompass all functions and facets from sustainability roadmap to green concrete products, use of recycled construction and demolition waste in concrete manufacturing, reducing single-use plastic, and becoming water positive. Coming to the financial performance, for the quarter, cement volumes in Q4 FY 2023 stood at 5.2 million tons. Volumes remained impacted as key markets of Bengal and Jharkhand remained sluggish sequentially for 2 quarters. Our revenue from operations improved by 12% quarter-on-quarter to INR 2,929 crores in Q4 FY 2023. PAT, profit after tax for Q4 FY 2023 stands at INR 201 crores. On full year basis, cement volumes improved to 18.8 million tons. Our revenue from operations improved by 14% year-over-year to INR 4,586 crores against a volume growth of 5% as the company prioritized value over volume growth. PAT for FY 2023 stands at INR 16 crores. Key cost elements, our focus on Q4 FY 2023. Cement raw material costs increased by 4% year-over-year due to increase in key commodity costs with inflationary pressure. This has been partially mitigated with long-term contracts for slag and improved cement to clinker ratio. Power and fuel costs increased by 11% year-over-year due to external pressure from high energy prices. On quarter-on-quarter basis, there has been a reduction of 14% due to softening in fuel prices coupled with higher Thermal Substitution Rate. Distribution costs during the quarter primarily increased with the re-imposition of busy season surcharge on the Indian Railways rate, coupled with increased road movement of clinker due to wagons availability issues. Our team is working closely with the Indian Railways and in an industry first, has introduced innovative solutions for clinker movement such as bogie and wagons, which were typically used by Railways for transportation of aggregates and track ballast materials. Our consolidated EBITDA for the quarter improved by 41% quarter-on-quarter to INR 383 crores. We have been continuously working to strengthen our balance sheet. Our net debt at the end of March 2023 declined to INR 4,414 crores with a focused drive on collection coupled with efficient working capital management. Our interest cost has also been effectively contained with an increase of about 160 basis points against the increase in repo rate by 250 basis points since March 2022 with opportunistic refinancing and debt repayments. Our CapEx spend for FY 2023 stands at INR 486 crores. Just to summarize before I open the floor for Q&A, the macroeconomic indicators are creating a buy down through for the sector and government's continuous trust on infrastructure development augurs well for cement demand and prices. With government focus on Housing for All scheme and expectation of improvement in disposable income, we will continue to leverage our trade centricity to drive volume growth. Our growth projects in the north, including the 1.2 million tons per annum cement capacity expansion at Bhiwani and the debottlenecking in Nimbol are both progressing well and will help to increase our footprint in the region. The ready-mix concrete business is on growth momentum, and we are actively ramping up Balilia plant operations. Moderation in fuel prices will favorably impact margins, and we remain focused on continuous reduction of net debt and prepared for our next phase of expansion. I will end my opening remarks. I am joined by Mr. Jayakumar Krishnaswamy, Managing Director, and Mr. Maneesh Agrawal, Chief Financial Officer, Nuvoco Vistas. We are here together to take your questions. Thank you. Over to 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 their 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. The first question is from the line of Amit Murarka from Axis Capital. Please go ahead. Hi. Good afternoon. Firstly, I wanted to know what was your clinker production in FY 2023, and what was the clinker utilization? Management members, we are not able to hear you. Look, in terms of- Amit. Amit. In terms of detailed clinker output and cement output, it will be very difficult for me to right away tell you in this call how much clinker we produced on a company-wide basis. Internally we track cement production, and that's where we are at 18.8 million tons of cement sales, which we did. At the beginning of the year in April 2023, we hardly had close to about 100,000, 150,000 tons of cement stocks. Whatever cement which got sold in this fiscal were all manufactured in this year, and the closing stock of cement was also hardly about 150,000, 200,000 tons of cement in the system. For that, really go back to 1.8 clinker-to-cement ratio on 18.8. We can safely say close to about 10 million tons of clinker, which we made. That's the roundabout way of looking, but we still have headroom. On a number of cases, we had to. Clinker capacity for the company is 11.88 million tons. Actual production for FY 2023 is 10.3 million tons. Clinker capacity utilization at 87.5%. Okay. Also, your debt has dropped in Q4 quite significantly. Congratulations on that. If I go through the details, it seems like it's come through payables extension and payable days have gone up a lot. How sustainable is this reduction in working capital and net debt in that context? I will take the first part. Then I'll ask my CFO to give you the details. We have been telling in all our calls right from the beginning, the endeavor of the company is to keep a hold on debt in the short run, and so that we come into manageable debt levels to the tune of about INR 4,000 crore, thereabout, then we decide the next phase of expansion. That's the view of the organization. Our efforts and endeavor has been ever since we listed the company. Going forward, we'll have to pay the debt so that we are ready for the next phase of expansion. That's how in the last three years, March of 2021 to 2022, 2023, there is a continuous improvement in reduction of debt. I'll ask Maneesh to give you details about how we went about doing this. I would say the teams have done a very good job in managing all the key levers of working capital. All the three key levers comprising of on the receivable fronts, on the inventory side, as well as on the payable side. As Nuvoco is a cement trade-centric business, so we have received full support from our cement channel partners, and we did a record collection in quarter four. We have achieved a revenue growth of 14% in FY 2023. However, if you look at the financials, our receivables have remained broadly in line with that of last year. This clearly indicates that there is an improved DSO as of March 31st, 2023. On the RMX side, we have continued to focus on driving sales on our cash and carry model, and we have also reduced our credit terms with our customers if I compare it with the past period. On the inventory front, there was significant buildup of inventory in H1, primarily on account of three factors. One is because of the seasonality involved, the cement and clinker stocks are generally high as of September end, and also because of the higher fuel prices that were prevailing at that point in time, coupled with the issue of uncertainty around the stocks on the fuel front. We had to stock side also. However, gradually from Q3 onwards, we have reduced inventory levels and brought it in line with our internal stipulated DIO norm. The fact that there has been softening of the fuel prices from Q4, and that's clearly evident in the financials also. The overall inventory value has reduced. The third key lever on the payable side. I would say with the changed post-COVID dynamics, we have been focusing on renegotiating our payment terms for raw materials, fuel, and other line items with our vendors, with our suppliers, and we have received an encouraging response to this. That is how we have been able to bring down our working capital in a big way. Okay. Was cash and carry the reason why sales volume dropped YOY? There was a 4% drop in sales volume. He's talking about the readymix business. The cash and carry comment was in respect of our readymix business, Amit. The readymix business, Amit, we used to have credit terms which were excess of 90 days or even 120 days in the past period. One of the things I had mentioned in the previous call was the entire business model we revisited post-COVID, when we resumed operations after the shutdown during the COVID period. We took two or three levers at the time. First, we said we will operate our plants only in those markets where the NODT as well as the raw material cost is manageable from our perspective. Number two, we also said that we will not supply to those customers who are expecting longer credit terms, and hence our business itself shrank in those days. We started selling much lower than the prior to FY 2019 times. That was the second thing. The third thing we also said was this entire concept of cash and carry we introduced, which means in readymix business, there are a lot of small IHBs who will put a roof or something and then they buy readymix for one lot or two lots or two transit mixtures. In those cases, we are very clear that we want to focus more on those cases so that we're able to get advance or cash and carry for supplying to those places, and hence credit exposure big time reduced. Last but not the least, one of the big efforts which we have been doing in the last year and a half is we don't do repeat sale to any customer whose credit is more than 45 days overdue, and hence this has greatly improved the overall receivable position in the readymix business. Sure. Thanks. I'll come back in the queue. Thanks. Thank you. Ladies and gentlemen, we request you to please limit your question to one per participant at a time. If you have any further questions, you may join the queue back. The next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. Just a couple of questions. Just briefly two questions. One on the very strong cash flow performance in the quarter. Just want to understand the moving parts for both DSO and inventory. On the DSO, I can understand very strong collection from the channel partners, but somehow we've not seen others being able to replicate that in the quarter. What was driving that very strong collection that you've seen outside of RMC in the purely cement business? Is there some element of bill discounting or vendor financing in that particular element? On the inventory front, was there basically inventory liquidation for cement also in addition to fuel cost in this particular quarter? Why was there fuel cost? Does that mean the inventory of fuel costs was actually very high in a period when fuel costs were actually high? Where is the fuel inventory right now? Is it very lean given we are looking at a lower fuel price environment? That's the question on working capital. Then I have just a quick question on incentives also. Yeah. Satyadeep, I'll go one by one. First point was in relation to the receivable front. I cannot comment about the other companies per se in terms of DSO. For us specifically, if I compare it from the last year, there is a reduction in the DSO. That's point number one. As I mentioned in the previous question, we have achieved a revenue growth of 14% this year as compared to last year. However, our receivables, if you look at the financials, they are broadly in line with the last year. That clearly shows there is an improvement on the DSO front. Secondly, on the inventory front, again, as I mentioned earlier, there are three parts to that. In H1, as in the cement industry because of the cyclicality and seasonality involved in that, the clinker stocks and cement stocks are pretty high as of September, right? That was the case with us also, and it gradually starts depleting from Q3, Q4, and we were able to get that sort of a benefit by way of reduction on the clinker and the cement stock. That's point number one. Point number two is with regard to the high fuel prices. You will recall in Q4 of last year and the Q4 of FY 2022 and Q1 of FY 2023, the fuel prices actually peaked up, right? Obviously this was reflecting in the inventory that we were carrying as of September also. Secondly, because of the uncertainty around the overall environment, we were carrying large stocks of fuel to take care of our production for Q3 and Q4. That was also one of the reasons which was appearing in September. Subsequent to that, in H1, in Q3 and Q4, as I mentioned, the clinker stock depleted, the cement stock reduced, the fuel prices started softening from Q4. Also the stock levels right now, we are doing a strategic buy and opportunistic buy as and when the situation demands. Obviously if I look at the DIO for fuel stock, as of now it is less than what it was in the month of September. These are the three factors attributed to the overall reduction in the inventory. You can see from the financials, there is a significant drop in inventory to the tune of INR 350 crore from the last year. Just to add to what Maneesh said, you all refer in our earlier calls, we have been saying that the linkage coal supplies had totally evaporated in H1 because of the power crisis in the country. Gradually from November, December to January onwards, the linkage coal availability also increased. Hence our overall import of petcoke as well as imported regular coal content also somewhat reduced because we started getting linkage coal and in our consolidated fuel mix. In Q4 of last year, we had a 19% of linkage coal and that came down to 13%, 14% in H1 it was single digit, Q3 it became 13% and in Q4 it improved to 16%. Overall, we started getting local linkage coal which helped us to bear down the stock of petcoke and imported coal. Last but not the least, our AFR consumption also increased in the last quarter-over-quarter basis. Every quarter we have been increasing AFR from a 6% usage last year we exited at 12%. There again, that also kind of substituted the overall inventory of fuel. All in all, fuel inventory was under control because of more linkage coal, reduced price of coal, reduced price of fuel, and last but not the least, improved usage of AFR. Thank you for clarifying. Just one follow-up on that. On the DSO front, obviously faster collection cycle from the customers. Just want to clarify, was there any element of bill discounting, vendor financing, and did it have any impact on discount or incentives that the dealers demand? Nothing as such, Satyadeep, in terms of bill discounting. This cash and carry, what I talked about was specifically to the RMX business. As a percentage of overall sales, there is a sizable component of sales which is happening on the cash and carry model, wherein we get the payment in advance or within a period of one to two days. That is also helping us to reduce our overall receivers, which was not the case to that extent in quarter four of FY 2022. Obviously, there is no element of bill discounting for sure. Okay. If I can just squeeze one question on incentives. What were the incentives accrued in FY 2023, and what was the incentive received in FY 2023? Overall effect. More or less similar? Basically, we have incentives coming in from both East and North. Across all East and North, we accrued overall incentive value of close to INR 190 crore. We were able to get a large part of it primarily from the incentive which was there in Rajasthan. On the east side, it's already there for two plants of Mejia and Panagarh. Fiscal 2023, the incentive is close to INR 190 crore, out of which Rajasthan is close to INR 40 crore and the balance is East. You would know that we had stopped accruing Mejia a couple of years ago. From this April onwards, we have decided to stop accruing Panagarh as well. How much was we received across both North and East, including Panagarh and North? That's why I told you it's about INR 190 crore last year, out of which North is INR 40, East is INR 150. Entire INR 190 was received also from the government? No. Rajasthan is the only state with just quarter-to-quarter disbursement. We've received everything in Rajasthan. East is on accrual basis because that's been the case with West Bengal as well as Jharkhand. We just started one year. West Bengal is the one where Mejia and Panagarh, so we've been accruing ever since the incentive scheme started. One was from the Lafarge plants in Mejia, and then two years into after acquisition of the Lafarge by Nirma, we decided to stop accruing Mejia. Then when Emami came to our fold, they were accruing Panagarh. At the time of acquisition, we continued with the practice for a year and a half, and then this year we have decided that we'll stop accruing for Panagarh as well. I just want to understand, of the INR 140 crore that you accrued in East during the year, given the quarterly disbursement that you get from the government, overall, what was the amount received for incentive in East during the entire year for FY 2023? It is primarily from the Rajasthan plant that we got in FY 2023. East. About INR 190. Which is North, we have received all the money from the government. Okay. Sunil, why don't you reach out to our investor relations? We'll give you granular details, we'll be able to give you all details when we meet. Not a problem. Thank you so much. Thank you. Thank you. Participants, we request you to please limit your question to one per participant. If you have any further questions, please join the queue back. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah, thank you. First, a couple of data points. Trade share for fourth quarter, lead distance for fourth quarter, and kcal cost for fourth quarter. Jasjeet, you will have to reduce a little. After that, it will be okay. Is it okay now? Hello. Shravan, I will just go one point at a time. You asked for lead distance. Lead distance is roughly over the full year, about 340 kilometers. This on a year basis has remained rather flattish. In Q4 sequential quarter, we've seen about a 5-7 kind of kilometer improvement. Largely, I would mention that it has been flat. The question you had on fuel. Fuel consumption rate has been INR 2.31 per million kcal on overall basis. The question you had on trade share. Trade share has been on Q4, 75%. For fourth quarter. Sorry. Yeah. Now we have reduced the net debt significantly, INR 750 odd crore QOQ. Two things just wanted to know. As on today, the net debt number is same around the I'm not asking the exact number, but broadly whether it has remained the same INR 4,400 odd crore net debt. Second, in terms of the expansion plan. Our spend previously was INR 3,000-INR 3,500 crore, and we will go for our next phase of expansion. Our preference was north. When will we start and what the likely CapEx for that? Apart from that, even without that, what's the CapEx for this year we are looking at? Okay. I'll just give you one at a time. The first question was all about current debt at INR 4,400. Where did you put the chart? Which is about the last three years, March to March, I think the debt has reduced from INR 5,400 all the way to every year, three years, up to INR 4,400. In the past calls, I've been talking about the priority for the company is to ensure the debt levels are to the tune of about INR 4,000 crore or thereabouts before we start expanding, announcing the next phase of expansion. We continue to be committed to what we have been informing you in the quarterly calls, and that doesn't change as we speak. The second one is about CapEx last year and the future CapEx. Last year, during our calls, we mentioned that the company is focused on brownfield expansions in Bhiwani, Sonadih, Jajpur, and Nimbol. Which in Nimbol we said we'll increase the capacity of clinker to 5,750 TPD. Bhiwani instituting the set up of GU 1.2 million ton. Sonadih is all about improving the logistics to get clinker movement out of Sonadih into eastern portion. The last but not the least, Jajpur is the only facility in east which does not have railway siding. We wanted to put up a railway siding there. All this had a CapEx outlay, including the routine CapEx as well as the land procurement and rest of all the stuff, we said we would invest close to about INR 550 crore, what we have been mentioning during our calls. As we completed the year, there's always a little bit of phasing and cash flows which happen. In FY 2023, as of 31st of March, we ended up spending INR 486 crore out of the overall projects which we envisaged during the year. Some amount of money will get spent in this year. As regards the CapEx plan for this year, we right now don't have any new projects at this point of time. We will continue to complete all the brownfield projects of Bhiwani, Sonadih, Jajpur, and Nimbol. Current outlay for all the projects is tuning to the tune of about INR 550 crore in this fiscal. We have also decided to set up additional readymix plants to the tune of about 12-15 plants. There we are parking close to about INR 20 odd crore to set up the new readymix facilities. In all, last year, INR 486 crore CapEx spent. This year, our outlook for CapEx is INR 550 crore. Our debt levels in March, INR 4,400 crore. Our endeavor will be, if the fuel prices taper and the demand is as robust as it is currently and the prices hold in the market, we are looking at a reasonable period of time in the future to pare the debt to INR 4,000 crore, then on we come back with our expansion plan, either in north or west. We also have the Nimbahera site as well as Kalaburagi. As I've mentioned in our calls in the past, our primary focus at this stage is to expand in north through our north facility. Thanks. Just to clarify, so maybe by next quarter or the second quarter, are we going to start spending for the north or the Karnataka expansion, still the preference remains for the north? I've been consistently telling in this call that on a quarter-to-quarter basis, we'll keep all of you informed about our starting of a greenfield facility, either in north or west. At this point of time, this call, I'm informing you that in this quarter, we don't have any plans to commence construction. I think when we reach the next call, I think we'll keep you updated every quarter about our plans whenever it'll happen. The primary focus, as we have mentioned in the last five calls, the primary objective of the company is to pare the debt to about INR 4,000 crore level. Okay. Last, sir, Bhiwani will start by- Sorry to interrupt you. I would request you to please come back in the queue. Participants, a reminder to you, please restrict your question to one per participant. Should you have any further questions, you may join the queue back. The next question is from the line of Darshit from RoboCapital. Please go ahead. Hello, am I audible? Yes, you are audible. Yeah, hi. Thank you for taking my questions. I wanted a basic overview of, say, revenue and margin guidance over the next, say, two years, three years span. Okay. I'm afraid I can't make any forward prediction about revenue or performance of the company. All I can say is from the macroeconomic indicators and also the published reports from agencies like CRISIL and others, the entire outlook for the cement industry is to the tune of close to about 7%-9% growth, which will be there. Of course, the reports which are prevalent, which all of you would have access to, is at a regional level, people are predicting different growth rates, and certainly in markets like east and the center there, because of the inherent nature of the underdevelopment, so there is the likelihood of better growth and higher growth in these regions. That's one aspect on volume growth. Second one is again on price stable moment. Here again, I think the reports are out where people are looking at a better pricing outlook and based on this year, east, followed by north and west will have better pricing than center and south. Nuvoco being a leading player in east and also decent position in north, I think we will have a better growth opportunity in terms of volume and also the pricing realization, if it happens, I think we would get a positive tailwind. Okay. Thank you so much. Thank you. The next question is from the line of Mangesh Bhargava from Centrum Broking. Please go ahead. Hello, sir. Thank you for the opportunity. Sir, my question is with regards to the capacity that is getting added in the eastern region. Do you believe that even if the costs are going to come down from the current level, the profitability would remain curtailed because of the competition that is increasing in East? Just if you can highlight what was the growth in eastern region in FY 2023, state-wise. Thank you. I would not be having the details of state-wise growth for FY 2023. The overall growth would have been in the order of 8% to 9%. The states of Bengal and Jharkhand, as I mentioned in my call, has been somewhat subdued at 2%. The rest of the states would be somewhere around that, between 5% to 8%, 9% kind of growth level. Answering your first question on the capacity utilization, as I have been mentioning in previous calls, that when we look at the eastern demand, we should look at it in the perspective of the clinker utilization. If we were to go back to FY 2022, because FY 2023 figures are yet to be updated on a running basis. FY 2022 clinker position was about 43 million tons of clinker. At a 1.6 kind of clinker cement factor, that translates to about 72 to 75 million tons of cement. Give or take another 8, 10 million tons of cement coming in from the center region. We are looking at East getting a capability, having a capability of up to 80 million tons of cement and demand, which is in the region of 70 to 80 million. It was standing at a 90% capacity utilization. Over the last period, as you were mentioning, a clinker addition of about 10 million tons with some new announcements. This is looking more like a 12.5 million ton. I don't think the 2.5 million ton additional, which is expected to come in by FY 2025, is going to radically rock the boat. We are still seeing clinker capacity utilization at somewhere around 87% to 88%. It would be probably right to say that at any point in time when clinker and/or cement capacity utilization crosses 80% to 85% kind of level, prices have a propensity to improve. It's very helpful, ma'am. Just you can leave me with the timeline for the Bhiwani expansion, when it will get commissioned. That will help. Sorry. Can you repeat the question, please? When will Bhiwani get commissioned? Bhiwani will be operational this year in H1 itself. We hope to make our first dispatch from the plant before H1. Thank you, ma'am. Thank you. That's it. Thank you. Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead. Just a clarification. To my earlier question, you mentioned the clinker capacity is 11.88 million tons. Hasn't it gone to 12 and a half after the couple of debottleneckings you did across the units? It will go. Currently, Nimbol capacity is still under commissioning. I guess at the end of H1, when we talk, Nimbol would have got commissioned. The Risda also has got a commission phase 1 and phase 2. The majority of work has happened, during this year's annual shutdown, that's when we'll connect the higher capacity blowers which are needed. They're all in place, but during the shutdown this year, we will do it. Post the annual shutdown in Risda this year and post the commissioning of Nimbol, whatever capacity which we mentioned will happen, maybe H2 of this year it should happen. Right now, I think with the available clinker, we're able to feed the market. By H2 of this year, we'll have all that number in place. In North we'll have 6,000 TPD of Chittor, 5,750 TPD in Nimbol, and likewise in the East which will have 11,500 TPD of Risda, 6,000 TPD in Sonadih line 2, 4,350 TPD in line 1 Sonadih, and 5,250 TPD in Arasmeta. That's the capacity which we will reach by September this year. Got it. Good. On AFR, the projects that you have, I believe you target to go to 20%. What is the commissioning schedule of those projects? Risda is fully commissioned. We have AFR facility in Chittor, which is the oldest plant which has been processing AFR. There the TSR reached highest 35% in Q4 of this year. There, there is no CapEx. There we will continue to operate at peak capacity. In Arasmeta, it's a very rudimentary AFR. We continue to use whatever availability there. We did not invest in Arasmeta. In Sonadih, again, no investment. We have close to about 6% of AFR consumption in both lines put together in Sonadih. The investments which we made were there in Risda and Nimbol, to the tune of close to INR 50 odd crore in both the plants combined together. Both of them had a pre-processing and co-processing facility. Happy to inform, Risda, both pre-processing and co-processing commissioned, and that is well and truly running as we speak. In Nimbol, the co-processing is commissioned. Pre-processing shredder is under commissioning this week. Early next week, it will be completed. When we hit June 1st, we'll have Nimbol fully capable of doing pre and pro. Risda fully capable of doing pre and pro, and Chittor anyway does post only at high level. With all this put together, we are looking at excess of 15% TSR at an average level from July 1st onwards. Thanks. That's all from my side. Thank you very much. Thank you. The next question is on the line of Rajesh from HDFC Securities. Please go ahead. Yeah. Hi. Good evening. Am I audible? Yes, Rajesh. Yeah. Good evening, ma'am. Good evening. Ma'am, two questions. First, I see your cement to clinker ratio for FY 2023 has improved significantly and is now at close to 1.83 versus 1.74 or two years back. Do you see an opportunity to further enhance it to, and if to what levels? Second, when you mentioned 15% TSR you would be achieving from Q2 onwards, that's a sizable increase. In that context, what would be your average per kilo cal costing, given that your current fuel mix cost is around INR 2.3? Right, Rajesh. I will take your first question first. Yes, we opportunity to improve our cement clinker ratio further. Firstly, the actions which we have taken is significant increase in Concreto cement, which is a slag cement, introduction of PCC cement. Today, Panagarh as well as Jajpur and Rudrapur plant have practically shifted fully from PPC to PCC cement. We see opportunity to take the shift, and we are planning in our Mejia plant. Roughly speaking, over a two-year period, the outlook is going up from 1.84 blended across the country to 1.92. What we have not into these calculations, and we hope to see a good upside there, Rajesh, is the introduction of LC3 cement in north. Great, ma'am. On the TSR costing- Yeah. AFR costing. On the AFR, firstly, on the robustness of 15%, as Jai explained, we have invested in our facilities and that's going to give us this increase. To give you a little bit of perspective on the numbers, 9% AFR in mid-year, 4% last year went up to 9% in H1, and we have exited at 12%. To give you a perspective on the overall fuel cost in today's reference, as I mentioned sometime back, overall fuel cost blended was about 2.31 Mcal, and AFR in ratio is 1.6. We have roughly seen a 1:2 ratio on the overall blended to AFR in terms of Mcal. Just building further, Rajesh. If you really look at AFR, the components of AFR basically are carbon black, then you've got recycled plastic, and you've got bio-waste. That's typically what one processes in AFR. Till about two years ago, the general arbitrage of AFR reserve is the blended cost of solid fuel would be typically one. So if the fuel cost was about 1.5 or something, AFR would be coming at the rate of about 0.75. That's the kind of INR per million kcal one was getting. What has happened in the last one year is, with so many companies in the sustainability agenda have started trying to use AFR not only in cement, in other industries as well. We all know carbon black is like a like-to-like substitution for a petcoke or almost nil ash coke. The rate of carbon black is more or less trending at much higher level than the old rates of AFR. Hence the original arbitrage of INR one per million kcal is kind of reduced to about INR 0.60, INR 0.70. This is a little bit of a background I'm just telling you because we have to source carbon black in all our plants. Secondly, currently, there's a little bit of a shortage of carbon black. Everybody wants to use carbon black. Hence to obviate that, one of the things which in Nuvoco we have done is to get the pre-processing facility where we can go and shred all the other raw materials, hence we went directly in Risda and Nimbol we do the shredder option to maximize AFR. Having said this, we're really looking at close to about the current rate of 12%-15%. Our target is our fuel bill should be anywhere between INR 25, INR 30 per tonne, positively impacted by use of AFR. Great, sir. That's heartening to know. Lastly, on the incentives this year, now this Panagarh INR 140 crore, which you billed accrued last year and now they won't be getting accrued next year onwards. I see that if I look at from the current year, if I remove INR 140 crore from the reported EBITDA, that would have an impact of around INR 80 per tonne. In that case, INR 660 EBITDA per tonne, INR 600. How do you look FY 2024, when your sizable amount of incentives won't be accruing in FY 2024, how do you see margin trajectory? basically, as Jai mentioned just a few minutes back, we had already stopped accruing- Correct two years back, right? In FY 2023, we accrued only Panagarh incentives, right? Yes. the impact of not accruing it from FY 2024 is just INR 40 and not INR 80. That's the clarification I wanted to bring in. Oh, this year you accrued INR 140 crore is what you had mentioned, right? Out of INR 190 crore? Out of multiple incentives in Panagarh, Jharkhand, that is what we mentioned. Out of INR 190 crore, INR 40 crore is in East and about INR 40 crore in North and INR 150 crore in East. However, next year we will continue to accrue Jharkhand. It is Panagarh where- Okay Because it has taken many years, we have made a decision to be conservative and not start accruing from April, and hence around INR 40 to INR 45 per tonne- Okay it will have a reduction in accrual. Okay. On the fuel side, what sort of savings purely on the landed cost of fuel currently versus full year average FY 2023, what would be the number? Yeah. FY 2023 average kcal. I'll give you some petcoke prices, I will tell you. In terms of fuel per INR, it's a function of linkage coal, it's a function of. Correct AFR and all of it. I'll do purchase price of petcoke, I will say it used to be in March 2022, all of us know it went to as high as $250 per tonne, then somewhere in January, February, it came to about 150-160 USD per tonne. Currently, as early as that later last week, we have booked at 133 USD per tonne. Obviously the numbers have come down. INR per million kcal, which used to be INR 2.67, INR 2.8 per million kcal in North, it has come to about INR 1.95 per million kcal. That's only petcoke. I have to use petcoke plus linkage coal and non-linkage domestic coal. All of it in FY 2023 was at INR 2.49. I am really looking at this number coming to, in Q4, it is INR 2.31, the blended rate. I'm really looking at this number further going to about INR 2.1, just about INR 2.1 is the number as we speak at current levels. Okay. Thank you. Great. Welcome. Thank you. If you have any further questions, you may join the queue back. The next question is from the line of Prateek Kumar from Jefferies. Please go ahead. Hello. Yeah, good evening, ma'am. My first question is on your volume mix. We have reported this 5%-6% volume decline, so largely attributable to two markets. How much these two markets constitute in overall volume mix for us? Prateek, Bengal, Jharkhand, and East is about 50% of our volume. However, I would like to point out that on a full year basis, our revenue growth has been 14% against a volume growth of 5%. This is primarily because of executive decision to prioritize value over volume growth. Right. Bengal plus Jharkhand accounts for 30% of the overall volume sold by the company. 50%, Prateek. Roughly 50%. 50%? Yes. For each volume. East volume. Of the East volumes. Okay. Right. Secondly, on the fuel cost, you indicated, like in the last question, but on overall basis for FY 2024, based on current spot trend, can we expect like a INR 200 per tonne reduction in fuel cost for the company? It's very difficult for me to predict a number, I can only say that we are targeting from Q4 actuals, another INR 100 is the kind of number we are looking at. Sure, sir. These are my questions. Thank you. Thanks, Prateek. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah. Thank you. Sir, just continuing the previous question, just trying to understand the degrowth for this quarter in terms of the volume. In the totality, you mentioned the 50% West Bengal, Jharkhand is the 50% of the East, but in the total volume, what's their share? Is it fair to say that we have also seen a reduction or the volume decline in other states also? The maths doesn't work just because of the two states, if there is a decline or the decline is so significant that it impacted the overall volume decline for this quarter. Shravan, as I mentioned, on a full year basis, our revenue growth was 14% and volume was a 5% growth. This was an executive decision to prioritize value over volume growth. We believe it has reflected well in our realization per ton at 7%. I'm sure you are also reviewing the industry figures. We've largely been seeing figures of the nature of 3%, 4% or 5%, and we believe at a realization per ton of 7% improvement, it augurs well for our performance this year. No, ma'am. Actually, my question was pertaining to only fourth quarter. This 5.3% volume decline for fourth quarter, is it only because of the West Bengal and Jharkhand, or is it the case that there is a degrowth in other states also we have witnessed? Demand growth has largely been sluggish in Bengal and Jharkhand. Okay. What was the fuel mix for this quarter, petcoke, imported coal, linkage coal, and the AFR? We clarified those numbers at the start of the meeting, Shuban. Linkage coal in Q4 FY 2023 was 16%, and petcoke was about 54%, and AFR was 12%. Okay. Yeah. Thanks. Bye, Shuban. Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead. Axis, thanks for taking me again. Just on the slag cost, in the last quarter, you had mentioned that the slag cost is moving up. Could you give the number for Q4? I think details, let Mita will give you through a separate call. Suffice to say that the current market rates for slag is anywhere between INR 1,900 to INR 2,100 per ton. It's kind of more or less equal to the past value of clinker cost. That's the kind of irony which is there. We are kind of safeguarded by our long-term tie-up in Jaysingpur as well as Jharsuguda from the Tata plant, as well as the Kalinganagar plant. We have sufficient breathing room with 2.5 million tons of slag contracted. But the trending rates are INR 1,900, INR 2,100. I think many of the latest auctions, we have simply walked away from the auction price like some of the other cement manufacturers as well. I believe that as we go forward, these rates have to temper down because people eventually have to pick up slag, and at these rates, everybody will have a rethink on contracting slag. Okay, sure. Thanks. Thank you. As there are no further questions, I would now like to hand the conference over to Ms. Madhumita Basu for closing comments. Thank you everybody for attending our call. We've had very detailed discussions, and we hope to have addressed all your queries. However, my office and I remain available for any further clarifications. Please do reach out to us. I wish you all a good evening ahead. All the best. Thank you once again. Thank you. On behalf of Nuvoco Vistas Corporation Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.