Ladies and gentlemen, good day. Welcome to Q4 and FY 2024 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 risk 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. 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 Marketing, Innovation, North Sales and Business Development of the company. Thank you. Over to you. Thank you, Yashasvi. Good afternoon, everyone. Thank you for joining us to discuss our fourth quarter and full fiscal year 2024 results. Before we delve into our performance details and look ahead with optimism, let me briefly address the broader macroeconomic environment. The recently released GDP numbers surprised strongly on the upside. Real GDP expanded at a six-quarter high rate in Q3 FY 2024 at 8.4%. Economic activity gained momentum in February 2024 after witnessing a slight moderation in January. GDP growth for Q4 FY 2024 is expected at 7.2%. It is now believed that estimates for FY 2024 will be exceeding and a rate closer to 8% may be clocked. GDP growth is likely to remain robust at 7.4% during FY 2025. Bank credit to the agriculture sector continued to register double-digit growth, reaching its highest level since the COVID-19 pandemic during Q3 FY 2024. Bank credit to housing sector continued to grow in double digits. India is likely to experience above normal rainfall in 2024. A good and normal monsoon should significantly address inflation and stimulate farming. All these factors augur well for the cement demand. Looking internally now at Nuvoco's performance for the year ended 31st March 2024. We are delighted to report a strong performance in FY 2024 amidst volatile demand environment. The company recorded an EBITDA of INR 1,657 crore and a profit after tax of INR 147 crore, marking the highest levels of profitability since FY 2022, the same year we launched our IPO. This clearly underlines effectiveness of our strategic initiatives and operational efficiencies. Despite demand challenges, we stuck to our strategy of value over volume, premiumization, geo mix optimization, brand strengthening and cost optimization. Deconstructing the realization and EBITDA per ton further, it is important to note that the accrual of incentives from Panagarh facility was stopped from April 2023, while incentives from Rajasthan plants ended in June 2023. These plants had contributed approximately INR 60 per ton as incentives in FY 2023. The cessation of these incentives makes the quality of our EBITDA growth and margin expansion even more commendable. Needless to say, our robust EBITDA growth in FY 2024 is a clear indicator of our operational excellence and unwavering commitment to cost efficiency and strategic intent of value-led growth. The company's robust EBITDA performance paired with a notable reduction in debt by INR 384 crore year-over-year to INR 4,030 crore has resulted in a significant achievement, bringing the net debt to EBITDA ratio to 2.4x. This reduction in debt aligns with our historical trend of net debt reduction, emphasizing our continuous focus on deleveraging. When it comes to cost efficiency, we are happy to report significant reductions in operating costs, particularly in the areas of power and fuel and raw materials. Our strategic initiative, Project Bridge 1.0, aimed at enhancing efficiency, has yielded a notable reduction of INR 30 per ton in operating costs since its implementation in Q2 FY 2024. At this juncture, let me also brief you on quarter performance related to the three major cement cost elements. Power and fuel costs reduced 4% quarter-on-quarter due to efficient sourcing and optimization of fuel and power mix coupled with decline in pet coke and coal cost. Raw material cost per ton decreased 2% quarter-on-quarter mainly due to decline in slag cost. On the slag front, I would like to reiterate that Nuvoco continues to be better placed due to its long-term supply agreement. Distribution cost per ton declined quarter-on-quarter due to operational efficiencies in the system. To premiumization, premium products have maintained a critical role within our portfolio, significantly contributing to 37% of the company's cement trade volume in FY 2024, registering an increase from 36% in FY 2023. To further enhance brand equities, we unveiled various marketing campaigns during the year, such as City Ka Hai, Duraguard Ka Hai, and Concreto Na Hi Kafi Hai. As part of IHB-driven rural reach program, we introduced engaging brand activation activity, Sabse Khaas Sarpanch, showcasing the impactful stories of sarpanches contributing to village development. We introduced Duraguard X2S, a premium composite cement into the markets of West Bengal and Jharkhand. In addition to this, we extended our premium cement variant, Concreto Uno, to the Jharkhand market. We also rolled out the new cement packaging design with Nuvoco logo prominently placed on the front side of the cement packs. The new design will highlight a much stronger bond between the company and its brands, reinforcing confidence in all our partners and customers. Moving on to the cement demand, I will now focus a little more on the two markets, North and East, which are relevant for us. During the year, North region showed strong demand, and we grew ahead of the industry in the region. In contrast, the East region faced challenges throughout the year, particularly in our core markets of West Bengal, Bihar, and Jharkhand, where demand was notably subdued. Within East, Chhattisgarh and Odisha demand surged ahead, showing significant improvement in the year FY 2024. However, towards the end of FY 2024, our core markets witnessed some recovery in demand. While the Union elections is a key monitorable in the near term, we are poised to take advantage of demand resurgence in our core markets where we have a loyal network and a redoubtable premium position. Furthermore, we have launched new programs in the states of Chhattisgarh and Odisha with specific focus on volumes in FY 2025. With an industry-best trade share of 74%, we also see opportunity to improve volumes in the non-trade segment. Our optimism on the demand prospects in the region is driven by a confluence of factors, mainly trust on infrastructure development, including the construction of highways, railways, and affordable housing. As we speak, 27 lakh houses under PMAY program are pending for completion in the East, and out of this, 14 lakh houses are only in the state of West Bengal. Union government in the interim budget announced that 2 crore more houses would be taken up to meet the housing requirement. Approximately 19,000 kilometers of roads under Bharatmala Pariyojana Phase One is yet to be constructed, and out of this, 3,500 kilometers is in East alone. Additionally, the rising urbanization growth in the real estate sector and increased spending on commercial and industrial projects is expected to support the demand for cement. Just to close, in North, we will continue to drive volumes as we ramp up operations at our Haryana cement plant. I will now briefly touch upon the Ready-Mix Concrete and MBM businesses. Both businesses are performing well. On the Ready-Mix Concrete business, we have commissioned seven new plants in the current fiscal, bringing the total number of plants to 58 pan-India. Given our continuous thrust on premiumization, value-added product mix to that 31% of total sales volume in FY 2024. In MBM business, tile adhesive and cover block segments continue to witness sales improvement. During the year, we expanded our tile adhesive range aligned with market requirements. Now coming to sustainability. At the core of our operations is our commitment to sustainability. We recognize that as a major player in the cement industry, we have a responsibility to minimize our environmental impact and lead the way in sustainable practices. Our focused investment has yielded significant value in sustainability. With emphasis on blended cement and optimization of our fuel mix between traditional fossil fuels, alternatives, renewable energy sources, we have been able to significantly lower the carbon intensity of our cement manufacturing. Touching on some sustainability parameters, the carbon emissions reduced by 2% year on year to 454 kg per CO2 per ton of cementitious materials, which reaffirmed our position as one of the industry leader in low carbon emissions. I'm sorry, I will just repeat the figures again. 2% Y-o-Y to 454 kg CO2 per ton of cementitious materials. Alternate fuel mix saw an impressive improvement from 9% in FY 2023 to 13% in FY 2024, amongst the best in the industry. A quick update now on our growth projects. Ready-Mix Concrete mining projects at Odisha and Sonadih are at an advanced stage. As you are aware, we successfully commissioned a 1.2 million ton grinding unit at Haryana Cement Plant, elevating the overall cement capacity to 25 million tons per annum. Within a quarter of commissioning, the plant utilization has been ramped up to over 60%. Strategies for FY 2025. As we embark on financial year FY 2025, I will briefly touch on the comprehensive strategies across pillars of revenue, profitability, process, and culture to drive growth and achieve our organizational objectives. On the revenue front, our focus will remain on enhancing realization per ton by prioritizing premiumization. We will work on expanding our presence in key markets of North, Central, and West regions, capitalizing on their growth potential. We will work on boosting sales within home market, defined as an area of up to 200 kilometers from our manufacturing plants, thereby consolidating our value leadership and optimizing logistics costs. On the profitability front, building on the success of Project Bridge 1.0, we are embarking on Project Bridge 2.0 in FY 2025 with an aim to further our cost efficiency efforts, targeting cost savings of up to INR 50 per ton. On the process-related strategies for FY 2025, we will be launching the customer portal and initiating AI-enabled projects in specific areas, primarily to drive efficiency. On culture, building on our brand value and loyal network, we will reemphasize customer centricity, delivering accuracy, speed, and delight through a company-wide program. Last year, we made good progress with the launch of our leadership development programs. Following through on this year we'll be launching academies across functional areas to build and nurture talent. With this, I conclude my opening remarks. I'm joined here by Mr. Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas, and Mr. Maneesh Agrawal, Chief Financial Officer of the company. We are here together to answer your questions. 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 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take the first question from the line of Keshav Bijayaratna Lahoti from HDFC Securities. Please go ahead. Hi. Thank you for the opportunity. As you highlighted in call that North has done pretty well compared to East. Why don't you speak a little bit louder, Keshav? Hello. Is it better now? Yeah. Just want to get a sense on how has been the growth in North and East in FY 2024, and how is the current mix of North and East? Keshav, with our investment in 1.2 million tons in Haryana Cement facilities, our mix of North business has gone up from 20% to 24%. Our full capacity is 25 million tons. That makes 6 million tons in North and 19 million tons in East. In North, we have seen growth ahead of the industry. We are focused on further volume growth in this region as we ramp up our capacity utilization in the new Haryana Cement plant. In East, our strategic intent till the year FY 2024 was driving value over volume, and I have touched on our specific actions in my opening call remarks. The question is more on the side in FY 2024, what has been the volume growth in North, and how has been the East market, and how is the current volume mix for North and East in FY 2024? The current mix is, as I mentioned, of the order of 22%-23% of North to East. Keshav, a more detailed growth of the regional split between North and East would be sensitive for this call. You must excuse us. Needless to say that our Eastern region strategy has remained on value over volume, and in North, we have been taking roughly a 3%-4% growth over and above the industry growth rate. Just to add to you guys, it will not be right for us to give a region-wise split because every company operates in a pan region, and we are a company that operates in both North and Central. Our growth is a mixture of both East, North, and Central. Hence we would not be able to exactly explain which region, how the market grew. As Madhumita said, very clearly in North and Central, we grew ahead of the industry. In East, it was value over volume strategy. Overall, at a company level, the figures are there for all of us to see. We could get just about a flat and a little bit higher growth over last year in terms of volume. There are so many other parameters which are there in the overall performance of the company, and we're very proud of what we have been able to deploy and drive the strategy for FY 2024. Okay. Understood. That is helpful. How has been fuel cost going to hover in next one or two quarter? What was the fuel cost take as basis in Q4? Yeah. Moving from Q4 of last year, all the way to Q4 of this year, INR per million kcal for the company has come down all the way from INR 2.31 all the way to about, we ended the year at INR 1.65. That INR 1.63 was the full quarter, and March delivered the lowest power and fuel cost in the last eight quarters. That's the kind of progression in power and fuel cost. You would know very clearly our fuel strategy is based on a blend of pet coke, linkage coal, domestic open market coal and AFR. The key strategies for the company are very clearly focused on linkage coal. Number two would be to get maximum throughput out of the WHR and CPP, and certainly huge focus on AFR there in Torodum, four of our plants. We have reached a stage of about INR 1.63, INR 1.64 INR per million kcal. Going forward in the near one or two quarters, I don't see major volatility in fuel prices unless and until something dramatic happens in the external world. Pet coke prices are trending at about $112, $113 per ton. Our views will continue at the same number going forward. We've got linkage coal lined up for next five years. Domestic open market coal is trending at close to about INR 1.5, INR 1.6 INR per million kcal. Ash content is little bit low, which is good for us. AFR strategy of the company is to move from current 12%, 13% all the way to 16%, 17% going forward. All this would result in a power and fuel cost trending at around INR 1.6, INR 1.62 for the coming two quarters. Nothing changes. The whole number will continue for the balance period of the year. If something favorably happens or adversely happens, we'll update you in the next quarter results. Okay, sure. Okay. One last question from my side. What is the blended cement share for FY 2024? I'm sorry, you're not audible. Blended cement share for FY 2024. No, the management line is not audible. Okay. Yeah. Blended cement for the company came at 80/20? 80/20. OPC at about 19/20 and other cement about 80/20. Yeah. We actually measured it more by C/K ratio, and our C/K was 1.77 in Q4. While blended cement is a strength of Nuvoco with your slag cement and fly ash cement and rest of the stuff. We also see in certain markets in India, the country is also going towards OPC markets, actually. I guess going forward, all the cement players have to be very clear that we have to also find a way to cater to the OPC market, while our core strength of the company is to make changes in the consumer buying behavior and trade segment to move from regular cement or OPC cement to blended cement. It will be a journey with all the cement industries they have to take, keeping sustainability in mind. This is one of the huge sustainability goals for the entire cement industry in India. More and more players are moving away from the normal OPC cement all the way to blended cement. As you would have seen from Madhumita's speech, our carbon footprint has come at 454 kgs of CO2 per ton of cement, which indeed is almost the lowest level of numbers which are happening India certainly. Internationally also, this is the kind of number which is extremely high. All India level, it's 580. India average is 507. Nuvoco average 454. I guess little bit of tweak on blended cement will even further improve, bring it below 450. Okay. Thank you. That's it from my side. Thank you. We'll take the next question from the line of Sumangal Nevatia from Kotak Securities. Please go ahead. Thank you for the chance. First question is on our expansion plans. In the past, we've kind of alluded to a range of INR 3,500 crore-INR 4,000 crore odd of net debt to kind of start working on expansion. We're almost touching that range. Just want to know, what is the status, how prepared we are, and when are we looking to explore greenfield expansion opportunity? You all would appreciate the consistency of leadership is to kind of demonstrate sustained performance over a period of time. While we're very proud at reaching INR 4,034.30 crore of debt as we committed in each of the calls in the last 2 years, we just want to be very clear that this should not be a Pyrrhic victory, but certainly it has to be somewhat sustained. We are in no hurry to kind of expand in the next 1 month because we've got headroom of close to about 7 million tonnes. Even if we have adequate growth in the industry, we should be able to grow in line with the industry in the coming 2 years. We just want to wait and watch in the coming quarter or so. Once we are very confident with the stable prices and market uptake and overall debt levels of the company are sustained at this level, we'll come up with the expansion plan. Needless to say that at the back end, we're already working on identifying what are the design, what should be the capacity, which is the location, what is the ballpark numbers, what should be the design criteria. Those works are all happening. At an appropriate time, we'll come back to come and make an announcement on what's the exact timeframe when we do groundbreaking. Okay, understood. Also, in terms of north capacity, we've been consistently maintaining that we are gaining market share there. If I look at few of the peers, a few companies are reporting upwards of 90% utilization. Is it possible to share what sort of utilization did we run the plant on an average for FY 2024? North, you have to really look at it fully because our new capacities came in December, Jan, Feb. If I were to kind of extrapolate the overall North number without taking the Bhiwani plant into consideration, we were operating close to about 90% capacity utilization. With the Bhiwani factory coming in, as Meeta said in her speech, within a very short period of time, capacity utilization increased to 60% of the nameplate capacity. At the full year, we are operating North at about 80%, but still we have headroom. In terms of capacity, we have 6 million tons of capacity. On a few months of this year, we already touched 4 lakh tons, 4.2 lakh tons per month. I guess during the course of FY 2025, we should be very close to 6 million tons at over 90% capacity utilization in one or two quarters. Okay, understood. Sir, with respect to the East. Sorry. In Q4 itself, North capacity utilization was 89%. There is an upward trend there. Okay. On the expanded capacity, 89%. Okay. Can I have one last question on the East? Yeah, go ahead. Yeah, I just want to understand, at least from the numbers, it appears that we have been losing market share because full year it has been growing in North. If you look at few of the other peers, anecdotally, everyone sharing that the market has been growing. I know there could be some issues in particular states where we have high exposure. Is it possible to share some more state-wise color just to appreciate or understand better what is the issue with Eastern demand for us versus a few peers in terms of different state-wise exposures? Yeah. First of all, there is no issue in East. Very clear as far as Nuvoco is concerned. We are clear about what we wanted to do, what our plans are, what is the execution in East. We are very satisfied with the approach we took and the results we achieved in the East region. If you really look at the whole year in East, you got to really look at 12 months and come into some kind of judgment and inference. The prices in East was tepid at the beginning of the year. One of the primary objective for Nuvoco is to kind of debt leverage, improve realization, get the EBITDA to bounce up. In all the past calls, the professed strategy for the company is value over growth. That was a cornerstone of what we were doing. Having said that, even in East, if you see at the beginning of the year, April FY 2024, when it came to October, price rise happened. Come January, price ended and kind of end of the year, exit price in East was almost less than the entry price in the fiscal year. That's how the price movement happened. Even in the price movement, East has to be divided into two parts. The core demand consuming states of Bihar, Bengal, and Jharkhand, and in the past, the less realization states of Chhattisgarh and Orissa. What happened in East is somewhat unique. The states of Chhattisgarh and Orissa saw handsome growth, and we participated in the growth and got good growth in these two states. The three states of Bihar, Bengal, and Jharkhand were the three states where growth was somewhat muted, but more important was the pricing in those states was really at, I won't say historical low, but certainly in the last 24 months, the prices prevailed in these three states were very low. We were very clear contribution margin improvement was the strategy for the company. We focused on these two states to kind of mop up maximum contribution, but did not want to give up volumes on the other three states. We kind of ensured that we fed the market, retained our loyal customers, and ensured that the trade benefits of working with Nuvoco. That's been the overall deployment plan last year. Having said that, things in March look different. Growth somewhat happened in Bengal, Bihar, and Jharkhand. Going forward in FY 2025, post-elections, we see an uptick of demand, overall demand, and prices to be okay. Cost has more or less bottomed out and softened, it's no longer going to be a difficult scenario. Financially, debt-wise, leverage-wise, we are also in a comfortable position. We have now the leverage as well as the elbow room to kind of maneuver the market the way we want to maneuver. You will see us participating, a little bit more aggressiveness in the next year to get growth going for the company in East as well. Got it. Just one last question. Do we work with exclusive dealers? If yes, what sort of numbers do we have? Very difficult for me to rattle out exclusive dealers in this call, I may request you to reach out to investor relations. They'll give you all the details or detail state-wise dealer profile, exclusive multi-brand outlets, all those data are available. I won't be able to explain to you in this call. No worries. Thank you. Thank you, and all the best, sir. Thank you, Sumangal. Thank you. We'll take our next question from the line of Navin Sahadev from ICICI Securities. Please go ahead. Yeah, thank you for the opportunity, sir. Am I audible? Yes, please go ahead. Can you use your handset mode, please? Yeah. Could you just speak a little more loudly? Yeah. Is it better now, sir? Yes. Right. Thank you. Thank you for the opportunity. Sir, on the pricing front, our realizations got hit by over 8% sequentially. Wanted to understand if the current prices are in April month gone by, did we see any improvement? Because I would like to believe exit for March would have been lower versus the quarter average. If you could just give us some color as to directionally, how are we into the fiscal FY 2025 so far in terms of pricing versus the March quarter that is reported? Hardly 30 days since you started the quarter, all the same, price rise did happen in the month of quarter. North has been more or less same as Q4, east we're seeing close to about INR 8-10 per bag improvement in price in gross of GST in the east. Things are improving in the east. We expect things will further improve going forward. Helpful. Sir, you clearly mentioned about the fuel cost sustaining at these levels for the company. On the freight cost per ton, is that also a sustainable number? With the railway rates coming in, we could see further improvement. Little while ago in the call, we spoke about our Bridge 2.0. Bridge 2.0 covers three, four key agendas for the company, which is into cost efficiency programs. Second one is power and fuel cost optimization. Third one is distribution cost reduction, last one is overall productivity improvement through extra volume growth in the organization. All these we're targeting close to about INR 50 per ton next year over this year. One of the key focus areas is to reduce or sustain the current distribution cost. There are two, three projects which we are currently working. If you recall, our CapEx last year had railway sidings in Sonadih and Jashpur, you would also know that we were moving clinker out of Visakhapatnam into a third-party unit, then from there load into SKS or Tilda siding. Starting April 1st, we have stopped the outside clinker loading because our Sonadih siding is almost ready. By the end of Q1, early Q2, we will have 100% commissioning of the second railway siding in Sonadih. All our clinker movement will be rail freight and all the road movement will go away. In addition to that, Jashpur siding should also come up in H1 end this year. Once the Jashpur siding as well as Sonadih siding happens, all our movement of clinker will happen only by rail. That indeed should reduce the overall distribution cost by a substantial amount in H2 onwards. Added to that is in the speech, Mita covered that our focus is going to be on maximizing sales in home markets, try and sell cement at 150-kilometer radius in the east and 250-kilometer radius in the north. I mean, this should basically be a key thrust area. The third thrust area is to increase the direct dispatches from the company into it by 5%-8% over this year's actual. All this has an end objective of either reducing distribution costs over last year's actual or at best neutralize it, already potential increase in fuel rates happen going forward. As of now, we are targeting decent kind of savings in distribution cost in FY 2024 over FY 2024. Great, sir. Very encouraging. Just a confirmation, rather a clarification to the previous participant's question about CapEx. Did you mention that you will be watchful, or the company will be watchful of the debt situation for a couple of more months before committing to any other CapEx or a couple of more quarters? I never mentioned couple of quarters or couple of months. All I said was in the coming future. We would like to be confident that the debt numbers and the overall operating numbers which delivered, we want to sustain it. It could be a quarter or the two quarters. Once we are confident that the system is oiled and demand in the market is also sustaining the overall appetite for the company, we should come up and make announcement. Overall, if you see all these plants will be set up in 18, 24 months. A quarter here and there is not going to change the overall performance of the company. Certainly, if the capacity coming up is going to hamper the growth of the company, your point is valid. We still have a room in north as well as east to kind of out of 25 million tons, we did 18.8 million tons. Even at a double-digit growth for the next two years, we should be able to have capacity well into FY 2027. Certainly, by that time our plant will come. In the previous calls, I've been speaking about the location of the plant. We are really gravitating towards north, brownfield capacity coming up in North India with adequate limestone available with us. The focus will be to grow in north and west, and that's how the company's future expansion plan is slotted. Great. Great, sir. Thank you and all the best. Also let me congratulate you for the excellent working capital management as always. Great, sir. Thank you so much. Thank you. Thank you. We'll take our next question from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah. Thank you, sir. Sir, my first question is, when we are saying that we have enough headroom for the growth, North, ma'am has mentioned that the 89% utilization in fourth quarter, including the Bhiwani. In FY 2025, also we mentioned that we want to grow at 7% in FY 2025. Clarify if I am making a mistake, how much volume growth are we looking at and from where it can come? If North is already at 89%, incremental, whatever the five, seven, 8% volume growth that we are looking at, is it more from the East? If yes, which states would be more to contribute the growth? Yes, Shravan. Very nice question. Mathematically, you have this at 89% to 100, how will the growth happen? Let me give you a little bit more detail to the statement which Mita made. Capacity is grinding capacity and clinker capacity. When the 89% is coming out of the overall clinker capacity utilization in the company, you would know in FY 2024, Nimbol factory got commissioned in Q2 end, then we had a truncated year of Nimbol capacity. While Bhiwani has got into full mode, Nimbol has got a 6,000 TPD line. The expansion plan of 6,000 TPD and Chittor is 6,000 TPD. Both put together is about 4 million tonnes. At C/K ratio of 1.5, we have 6 million tonnes. There will be sufficient headroom for us to grow in line with the market, assuming the general industry viewers, GDP is 7%, industry is likely to grow 7%-8%. We also will be participating in this industry GDP ratio growth in North, certainly at East. We don't see a major challenge in getting the growth. Last but not the least, there was a question about what is the OPC mix in the blended cement mix. We always have a lever to shift from OPC to blended cement to maximize the volume numbers. That's been the DNA of the company. Going forward as well, to get the adequate revenue growth, if real estate is very good with non-blended cement, we'll go get more money. If blended cement is selling and we're able to get volume growth, EBITDA will come through volume growth as well. That's how we will participate in the market. While the strategy will be to get highest capacity utilization, tactics will always be quarter-to-quarter based on the market and the portfolio will be decided by the management team on how to participate in the market based on the actual happenings in the marketplace. We are pretty confident to hit equal or more than industry level growth in FY 2025. Okay. Just to clarify, this INR 50 cost saving in FY 2025, this is from the Q4 FY 2024 number or from FY 2024 number? How is this possible? You should have been running our company because when you set targets the best quarter, you up the best quarter by INR 50, but we are very realistic here. It is average FY 2024 versus average FY 2025. This is a cost improvement exercise on a YOY basis for the full year. Okay. Got it. Second one on the expansion and then the CapEx. By max, let's say, I put the question other way up. Till what max, how many quarters can we wait to announce the expansion at the North? Max two, three quarters can we wait? Ultimately, are we looking at the COD to be happening in FY 2027 and not in FY 2026? If so, broadly, previously we talked about closer to INR 1,400 crore kind of a CapEx for this. That number remains the same? Yeah, the number remains the same. Size of the line will undergo a little bit of a change, based on our final strategy and market growth and where the split grinding unit will come. We are really looking at either a 6,000 TPD line or a 7,000 TPD line. That's where it is gravitating. The overall CapEx outlay may undergo a change based on the size of the line we are putting in. Overall, we are looking at anywhere between $70-$85 per tonne CapEx cost. In terms of how many quarters I need to wait, I will ask you, I will come and tell when it happens. You guys have to give me time. As I said very clearly, we want to be very comfortable with the numbers at a full year level we have got, whether in terms of realization or in terms of EBITDA or in terms of debt levels or in terms of de-leveraging. Number of agendas which we have. Having said that, I'm not going to set a time limit for myself and say a quarter from now or two quarters from now I'll come and say. Suffice to say, during the course of this year, we would certainly come up with an expansion plan. Without this CapEx, absolute CapEx for FY 2025 and FY 2026 will be how much? Great. I think we are going to be very clear because right now the big projects which we started last year, if you remember in the last call you were asking about what were the FY 2024 CapEx numbers. Last year we ended CapEx at INR 579 crore, but out of those, the big projects were basically Nimbol expansion, Risda expansion, Sonadih siding, Jashpur siding and Bhiwani expansion. All of them, Nimbol is completed, Risda is completed, Bhiwani is completed. The siding at Sonadih and Jashpur are underway. By the end of Q1, latest by Q2, all these ensuing projects, ongoing projects will be completed. Technically speaking, we don't have big expansion CapEx in the first six, eight months of the company. Whenever we announce the plan, that's when the CapEx outflow will happen. We're really targeting anywhere CapEx between INR 300 crore to INR 400 crore inclusive of things which come from unspent CapEx, which will come from the previous year as overall CapEx outlay for FY 2025 at this point of time. Great. Last data points, sir. Lead distance for fourth quarter, C/K ratio for fourth quarter, AFR, sir, for fourth quarter of FY 2024. Lead distance is a magical 340 kilometers, both primary and secondary put together. In terms of AFR percentage, in Q4 we did 12%, in the coming year, we are targeting a little bit more. A couple of kilns were under refurbishment, shut down in Q4, AFR percentage came down to 12%. Otherwise, in Q3 we were at 13%. We expect to increase this number by two, 3% full year average this year. The third question of C/K ratio for fourth quarter. C/K ratio at Q4 came at 1.74. FY 2025, we are really looking at anywhere between 1.76-1.8. Okay, great. Thank you, and all the best. Thank you, Shravan. Thank you. We'll take our next question from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. The value over volume strategy appears to have paid off this year, so congratulations to the management team on that. Just wanted to delve deeper into that strategy, had a few questions on that. It seems like, if I understand correctly, the pricing environment was better in certain micro markets like Odisha, Chhattisgarh, not so much in other markets like Jharkhand, West Bengal. The intent of the company is to maximize the contribution margin. Overall, it does appear to me from the outside that you're indicating if you had sold in some of these micro markets, your contribution margin would have been negative, if the intent is to maximize overall contribution margin. Is that clear? I had a few questions on that. Just wanted to understand if my understanding is correct. No, certainly not negative contribution, because if you really run the business, you're really looking at, for EBITDA sums at INR 850 for the year. Add to that the various numbers, we're looking at a contribution of INR 1,500, INR 1,450, INR 1,600 kind of a number at different markets or different product portfolios. We can't get contribution margin zero at any point of time. Contribution margin can be INR 700, INR 800. I think by selling at INR 700 and resultant EBITDA coming to INR 100 or INR 120. In our point of view, we did not think it was something which is accretive to the overall strategy of the company. Certainly, I think it's not a one-quarter game for us. Certainly, it's a long-term objective. We also don't want to push bottom-end product. We want to continue to have a premiumization. We don't want to take around discount levels to get additional sales. Those have been the various levers we work. Also certain states, the overall pricing came very low. We really didn't want to compete with other players by dropping price and getting volume. We had to maintain our brand equity. Our product Concreto still continues to hold a premium over the next best player in the industry. Our base product is still a top end product in Eastern category, we don't want to dilute our pricing position in the market. Okay. Just had a couple of questions on that. Fundamentally, first wanted to understand. My understanding was that basically these are all fungible markets. If, let's say, your margin is higher in one market over other, everybody would move volume so that higher margin market, overall it would come to a balance. Is that something that has not been playing out in this year? That's the first question. Did that shift of volume happened only for you, but otherwise for everybody else, they were not moving that incremental volume to this higher margin market? Secondly, it would be that it seems like the intent was to operate at a bare minimum level in these markets which had lower margin. Whereas it seems like others were operating, were trying to take that market share, even operate at lower margin. When the volume comes back, let's say if you see the margin coming back this year, those players are already serving those customers. When you go back into the market and try to get back some of these volumes that you decided to walk away in this year, how do you, in that kind of scenario, go back and take that share? Fundamentally, strategically wanted to understand how these things play out. Look, I don't want to comment on what other companies are doing and what is their plan and how are they working on this. Because it's a national market, whatever growth numbers people declare are blended growth numbers for all the regions in the country. In our case also, since we have only two regions we participate, we're very clear about what we did in our Northern Center and what we did in our East. We kind of have a majority in East. Overall, exposure in East is high, the numbers came out the way it has come out in terms of volumes. Rest of the companies probably have a North India presence with similar capacities or substantial capacities in rest of the regions for them to get the North India number. That's the first answer for not comparing us with other companies and what they are planning to do. As regards the question where you said that if we decide not to sell, what will happen to trade and we walk away from the trade. In this industry, there is always an influx of new dealers who get appointed, there are dealers who move away from the fold, and there is a constant churn which happens in the industry. People who work with me today work with some other company, people who work with some other company come to us at some stage. Losing a channel We can. It's not something which is a long-term stuff. We'll always go get the channel whenever we want to do. In FY 2025, the goal for all our sales guys is to go get Concreto channels at the appropriate markets to get presence of Nuvoco in almost all the markets. As regards promoting our products and our brand, I guess our brand is fully strong. Consumers want our products and then things are bought off the shelf by the name of our brand, in most of the states in the East. It's a strategy which we deployed in FY 2024. In FY 2025, we still want to be little bit more aggressive in the market to get volumes, and you will see it play out in the market going forward. Okay. Thank you so much, and wish all the best. Thank you. We have our next question from the line of Sanjay Nandi from VT Capital. Please go ahead. Yeah. Thank you for the opportunity, ma'am. Hello? Mr. Nandi, may I request you to use the handset, please? Now, I am audible? Yes. Please go ahead. Okay. My work questions got answered, thank you so much. Mr. Nandi? Yeah. Can you hear me? Yes. Yeah. Most of the questions got answered. Okay. Thank you so much for your time. Do you want to ask any additional questions or you're through? Not now. Okay. Thank you. Wish you all the best day. Bye. Thank you. We'll take our next question from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah. Sir, thank you again. Sir, what was the fuel mix pet coke, imported coal, and domestic share for this quarter? Just a second. You're asking for the quarter or full year? Quarter. Q4 FY 2024. Q4 overall linkage coal came at 23%, non-linkage domestic open market at 11%, imported coal 1%, pet coke at 52%, and then AFR at 12%. Okay, got it. Second, sir, I just wanted to clarify, when we said INR 8-INR 10 price improvement in East in April, so is this across five states of East or it is more like only Bihar has seen a sizable hike in April? It's a broad-based price increase in East. Okay. Got it. Thank you, sir. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms. Madhumita Basu for closing comments. Over to you, ma'am. Thank you, Yashasvi. As we move forward, we remain optimistic on the demand outlook as a significant portion of infrastructure programs are under execution by the government. We will continue to focus on premiumization, geo-optimization, fuel mix optimization, brand strengthening, and cost efficiency. By executing on these strategic focus areas, Nuvoco is poised to deliver sustained growth and value creation for its shareholders and stakeholders in the year to come. We will remain available for any clarification required. Do please reach out to our investor management cell. Thank you for joining us today. Thank you, members of the management team. On behalf of Nuvoco Vistas Corporation Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.