HeidelbergCement India Limited ($500292)

Ladies and gentlemen, good afternoon, and welcome to the earnings conference call of HeidelbergCement India Limited for the quarter and year ended 31st March 2026, posted by PhillipCapital India Private Limited. [Operator Instructions]. Please note that this conference is being recorded. I will now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital India Private Limited for opening remarks. Thank you, and over to you.

Thank you, Ryan. Good afternoon, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the earnings call for the quarter earlier ended 31st March 2026 of HeidelbergCement India Limited. On the call, we have with us Mr. Joydeep Mukherjee, Managing Director; Mr. Anil Sharma, Chief Financial Officer; and Mr. Amit Angra, Head Investor Relations and Senior Vice President Finance of HeidelbergCement India Limited. I would like to mention on behalf of HeidelbergCement India Limited and its management that certain statements that may be made or discussed on today's conference call may be forward-looking statements related to future developments and which are based on current management expectations. These statements are subject to a number of risks, uncertaintities and other important factors, which may cause the actual developments and results to differ materially from the statements made. HeidelbergCement India Limited and management of the company assumes no obligation to publicly alter or upgrade these forward-looking statements, whether as a result of new information or future events or otherwise. Also HeidelbergCement India Limited has uploaded a copy of the Q4 and FY '26 investor presentation on the website and stock exchanges. Participants may download a copy of the presentation on these websites. I'll now hand over the floor to the management of HeidelbergCement India for their opening remarks, which will follow intact Q&A. Thank you, and over to you, Joydeep, sir.

Okay. Thank you. Amit [indiscernible] operating the slides on our side, please. Okay. I'll start off with the key messages. We continue to produce [ most lender ] cement in our operations. This is in line with our commitments to producing low carbon demand across our operations. Our alternative [indiscernible] uses also increased by 3% year-on-year, and we are now at 11% the company level. Our share of non-grade power exceeded 50% during the FY. The EBITDA at INR 584 per tonne was up 10% year-on-year. We did repay interest loan of INR 687 million, and the company is now completely debt-free. We have cash and bank balance of INR 4,037 million, and we continue to operate on negative net operating growth in that [indiscernible]. We have been declared as the preferred bidder or grant of 2 mining leases in Madhya Pradesh. This was a strategic move and a forward-looking role. And we did recommend a dividend of INR 7 per share in our [indiscernible] recently. Okay. The ESG overview. 97% of all the cement that we produce are blended cement. On carbon, we are now less than 500 kg per tonne of cement, and this number is going down quickly. And this is also because we have been working on modifying our product portfolio so that it falls in line with our overall strategy of reducing our carbon system. On water possibility, we are at 4.8x water positive. As far as CSR is concerned, we have touched 21,000-plus lives during this financial year and improved the lives. And we are at more than 40% of green power. As far as our financial results are concerned, it has been already seated. So broad messages in this are that we are about 19.8% higher on EBITDA as compared to last year. At the PAT level, we are 35.5% higher. Our sales volume increased by 8.8% over the last year. And on EBITDA per tonne, too, we are about 10.5%. On a quarter basis, we had impact on pricing. There was special on pricing. So we lost about INR 105 at the gross price level. And we had a INR 53 impact on raw material INR negative impact on others. And we did have some positives in terms of talent and [indiscernible], but overall, Q-o-Q, our decrease in prices were only partially offset by input cost. On a year basis, our EBITDA increased. This was mainly due to a decrease in input costs on a year basis or the impact on prices lesser as compared to the quarter quarterly basis. We did lose about INR 160 overall on price, and there was an impact of INR 11 on raw materials. However, we had positive gains on power and fuel freight and other expenses. And so on a per tonne basis, the EBITDA increased from INR 530 to INR 584. This is completely [indiscernible]. On working capital, as I've said before, nothing to add. We continue to operate on negative in that group. [indiscernible] particular questions on the data already produced, we can address them during the rest of the [indiscernible]. We have been pretty consistent in terms of our dividend, and this is driven by our operational cash flow and on a sale value of INR 10 per share we have now proposed a 70% dividend for the FY. On our share of volume, we can say that about 45% of our total volumes are the path to [indiscernible]. This is up by 1% on a year-on-year basis. [indiscernible] part, I have already spoken about, about 11%. This is up by 3% on a year-on-year basis. Premium products portfolio. We are working on this and have been working on this consistently as a strategy for the last 3 years. And I'm very happy to state that we have achieved a number of 52%. So 52% of our total paid volumes come from premium products, which is up by 5% on a year-on-year basis. And as far as the trade mix is concerned, we are at 81% sale number. This is true trade retail sales, and we can say a 19% is our B2B sales of the [indiscernible]. So we are consistently and continues to increase in premiumization, and we are optimizing our trade loan revenues. On outlook, going forward, I can say the upcoming elections in [indiscernible] is going to provide a lot of [indiscernible] demand in Central India. We are, of course, now heading into the monsoon season where naturally the consumption shall be really low. But post monsoon and carrying on till the elections in our relevant market, we have a [indiscernible] demand. The geopolitical developments, particularly the west of [indiscernible], who is continuing to create uncertainty in global markets and commodity prices and already had some impact on pet coke and fuel prices. I'm very hopeful and confident that this impact shall be passed on to the market as we have seen across other industries. Elevated headline inflation and currency depreciation [indiscernible] a concern. At the same time, there are savings of increase in cement and [indiscernible], in the medium term as well as long term. Also because of domestic -- robust domestic consumption as well as the rationalization of the GST rate from 28% to 18% [indiscernible] down last year. So we do not see a problem with demand going forward. But [indiscernible] for some time, headline inflation and currency boosted remain a matter which needs to be monitored very closely, especially a company has significant expenditure on imports. The [indiscernible] effect that we are seeing speaking to the northern part of India and the central part of India would produce -- would pose a significant risk to our book rural demand and food inflation. But with the advent of monsoon, a large part of this is expected to be mitigated. And as I've said before, I am confident, even though with a little bit of lag, the increase in input prices, we shall definitely be able to pass on to the customers. I think that's all from my side. And I'll now hand over the floor over to Vaibhav [indiscernible] for the further question and answer session.

[Operator Instructions] We take first question from the line of Rajesh Ravi from HDFC Securities.

Sir, I just wanted to understand, what is the clinker production in FY '26?

You're talking about the full year, third quarter?

Full year, full year.

So we produce around 5 million tonnes total since production during the [indiscernible].

Okay. And did we also buy and sell clinker from outside? And during the year, did we sell clinker also?

We have not bought any clinker. Our own clinker [indiscernible] for the cement. Yes, we do sometimes we sell clinker.

Understood. And sir, if you look at your number, 3.5 million tonnes, then we operated at almost 95% utilization in FY '26. So what sort of volume growth one can look at on existing capacity over the next few years? Our ratios also seems to have come down from [indiscernible] [ 1.5 1.6, 1.65 ] is now down to 1.5%. So what is the way ahead?

Rajesh, if you see our total cement grinding capacity, it is around 6 million tonnes. And at this moment, we are -- you are right that we are running around 90%, 95% capacity. But at the same time, like Mr. [indiscernible] said that we are optimizing our product portfolio. We are also reducing our clinker content so that we can reduce CO2 emission. [indiscernible] to grind more cement. So we can say that, okay, at this moment, we have a recent headroom for next 1 or 2 years. And we expect that our [indiscernible] volume growth should be similar to what the cement demand growth in the market [indiscernible].

What would be our same-time ratio, sir, in Q4 and FY '26?

So our clinker consumption ratio is around 60%, 61% of the cement. And I think we will be able to reduce at least maybe 50 basis point to maybe 100 basis points in [indiscernible].

Yes. I mean just to elaborate an add-on, the launch of a new blended cement where the clinker content is almost 17% low. And we are continuously ramping up production of the sale. So we don't think it is going to be an issue for stuff.

What is this product the 17% lower clinker you're seeing?

It's the composition.

[ Composed cement], okay. And what are the cost levers you're looking at, given that the industry is also reeling under almost INR 300 crore to INR 400 cost in inflation -- next -- by Q2. In that scenario, there are any cost levers where you --

Are you asking about the next quarter?

Yes, yes. For H1, given the industry is looking at INR 300 crore to INR 400 cost increase because of the surging fuel costs and the packaging material. In that, obviously, part of it is based on, but overall, do we have any like green power share going up or any other cost metric, which can save you -- give you a question against the cost inflation?

So look, we have -- we anticipate that in the near term, the next quarter, our costs would be impacted by anywhere between INR 100 to INR 150 a tonne. Given our fuel mix and -- the packaging bag, the impact which was there has now substantially reduced I think. So what we are looking at is about anywhere between INR 100 crores to INR 160 a tonne, we are confident can be [indiscernible].

Understood. And any target on the green power mix? How has that been FY '26 and how would that be in FY '27, '28?

[indiscernible].

Rajesh, we have been working if you see the -- our presentation where we talked about the other green power percentage. It has increased to [ 60% to 40% ] and we have been working to increase it. Yes, it is a continuous process. Now if you ask that, okay, there will be significant increase beyond this [indiscernible]. But yes, there will be some small improvement is there in the green power. So come down the line 2026, '27, 2027, '28, our target to increase beyond 40%. One lever we talk about, and we also said in the past that we have the good flexibility with respect to fuel mix. We consume pet coke as well as coal. And whenever the pet coke prices or coal prices move in the direction, which is not maybe favorable to us, immediately, we either decrease or increase our pet coke in fuel consumption. So in the June quarter 2027, with the price of the pet coke will remain at elevated level as today, we will further optimize our fuel mix. That will give us the benefit. And that's why in our case, the impact will not be like INR 300 what the industry talks about our interest may be around INR 150 on account of this [indiscernible].

And what is the linkage coal share in our fuel basket sir?

It is sufficient. We will have to go to the open market in significant quantity. Our existing ones support us to -- for our clinker production.

Yes, that is why your inflationary expectation is lower. Understood. And sir, 2 things just on the one on the [indiscernible] now, and they expect to personalize it fully from Q2 onwards, whereby bringing almost 5 million tonnes of additional volume pressure in the market. And what is the thought process on that in terms of you being one of the central and eastern markets being one of the key markets? And second, what are the CapEx program, which we are looking at? You had talked earlier or plan here, there was plans to expand into Gujarat market, but we haven't heard anything on that front. Any major expenses, which is in the pipeline over the next 2 to 3 years?

Yes. So we are setting up and you might have seen media a blending unit in [indiscernible]. This is expected to give us about 35,000 tonnes of extra demand from the [indiscernible]. That is immediate, but that project is on right now as we see and we are investing around 120, 130-odd you can take about INR 130 crores in that product.

Sorry, 130-what? Sorry, I didn't get you.

INR 130 crores.

Okay.

Other than that, we have -- as I said -- mentioned, we have also been declared as the preferred bidder of grant of mining lease. So we have a limestone block in an area of about 350 hectares in [ Riva ] and [ Sapa]. This gives us 62 million tonnes of cement grade limestone. And there's another block over 350 acres in [indiscernible], which has about 105 million tonnes of single-rating sold. So we are the preferred bias for that. And obviously, this is all keeping in view the future expansions, but I will not be able to review right now on the exact plan. what I'm in a position to reveal. Confirm is our blending unit at [indiscernible].

Understood. On the Gujarat plants, which the company had earlier talked about that they would look to --

No, we are still awaiting from the government. It is still [indiscernible].

Understood.

Not in our hand right now.

[Operator Instructions]. We have a question from the line of Vaibhav Agarwal from PhillipCapital India Private Limited.

Sir, I had a question on -- basically on pricing. So you said in your opening remarks that pricing has not been -- you're not able to pass on the pricing to the extent of cost push in and even in Q4, pricing has been slightly under pressure. So sir, in this regard, as far as we gather and North and West have been quite stable or better off in pricing versus Central India, and Central India is suffering from low pricing for quite a long time now. So what is the key -- is the commissioning of new clinker lines by competition? What is actually dragging because enabling pricing is relatively better off than what are the key reasons for trying to be subdued in geography? That's my first question.

So whether this is pretty normal that you see wherever companies bring in capacity for some time, the prices do remain under pressure. So we've had expanding in our region. We've had cement operations, which has gone online, got extra material from [indiscernible], who are ramping up their capacity utilization in the same area. So right now, [indiscernible] no loss.

The question was actually this is -- Central India has been under pricing pressure for quite some time now for maybe last 3, 4 quarters. And this is not going away. So that's the reason that was --

No, I have not under -- are you --

I'm saying in terms of pricing when you are saying that you will be able to pass on the cost push in Q1, you're confident of it, but then the pricing is under pressure. Then in that [indiscernible] asking the question that why is -- what gives you the confidence that you will be able to pass on the cost push?

So the cost push will be on every one, right? I mean -- if this is not passed on, then all the balance sheets are going to start looking pretty bad. And historically, we have seen that if there is a serious cost increase, it always gets to which is why if you have noticed -- if you have noticed my earlier comment, as said, [indiscernible] with a lag. As different companies would have a different kind of socks and tie up for fuel. But as soon as that cushion is gone, it will start hurting. And obviously, people at 150 million tonnes, 180 million tonnes and 100 million tonnes further, the impact on the balance sheet is significantly higher. So [indiscernible] that this will always happen.

So structurally from going forward from here on, maybe say, for the next 1 year or 2 years, how do you see overall central in our pricing assuming expansions go on [indiscernible], I mean like you mentioned have commissioned now there will be some new plants also coming in? So as far as you all understand, structure, really, how will pricing move in centrally over the next 1 to 2 years? How would you see that?

I think if you are going to look at the next 1 year, I'm pretty confident that it is going to follow what is happening in that. Because most of the northern players are also suppliers to Central. And as you also know, there are no islands of prosperity instrument. There is always a spillover from one region to the other region. So a parity in [indiscernible] in terms keeping view of where the cement plants are and where the markets are, is going to come in. But I'm going to be cautious enough to say, but yes, for maybe the next quarter and before the monsoon ends, the prices will be under a little bit of pressure. But I wouldn't say that, that is going to be complete to because there is also now the big burden of the cost push. So I'm sure to the extent of the cost push the industry would be able to pass it on. But beyond that, if you are asking structurally, is there going to be how much on top of that. That is [indiscernible] leasing. I'm not able to answer that question.

All right. Understood, sir. Sir, my second question was on your -- like you said your opening remark that we are highly dependent on imports. So from that perspective --

I didn't say we are.

I thought that you said -- as far as hydro books in India grows, so how much is the import component? Or what is our fuel mix as of now, if you can just spell it out?

I think whether we do not import any --

That's what I want to -- there's no imported, sir?

No, no, not at all. Nothing.

Right. Sir, third was on the merger of --

But just to add on the pricing, what Mr. [indiscernible] said efficient one fact that the highest consumption state in India, [ UP ] is going to be an election in the next 1 year. And for predominantly Central India player. So that will support significantly on the demand of the cement and that should support us with respect to the pricing because we have been selling cement and our target is to increase volume or the blended cement or our nearby focused market for home market. So we are pretty confident and positive that we will be able to pass on the cost increase at least cost in the market.

So sir, in that perspective, what is your demand outlook for FY '27, '28 for Central India and for Heidelberg in case you have any guidance?

I'm sure that this system to central the industry would grow at least by 7%, 7.5%.

Okay. So that is in likely overall plan in the demand?

And I think by the beginning of the next calendar year as we approach elections is going to get ramped up to maybe a little bit more. But I'm thinking on an average, 7%, 7.5% is not too much.

So that's a given that 75% will happen as per you -- and okay, sir, you have been indicating about [indiscernible] in the past, there's no talk of late. But in the past, you have indicated about a possible merger of [ Zuari ] and Heidelberg. Any thoughts on that?

Well, again, I said it's a timing issue. If you -- you would know, I mean, there have been some publications that have come out in the media also, we are, of course, building [indiscernible] million tonne integrated cement plant in [ Kanataka]. That is now underway, which, of course, is not part of this company as of now. But depending on the suitable time, yes, there are plans of eventually going in for a merger of all the entities.

Sir, but any time line which you can probably think of for maybe 2 years, 3 years?

Right now, I would be hesitant to sell out a time line.

Understood. And sir, last question was on your blending unit. So what would be your CapEx guidance for FY '27, '28 in terms of overall CapEx for HeidelbergCement India?

I think we have already -- this will be a step in Q2 fiscal year 2027, '28 [indiscernible]. And then [indiscernible] is under 34 bps put together in 2 years, we are going to invest in the --

65 each year, is that a fair or like the first year would be like [indiscernible]?

Yes. [indiscernible] would be lighter. It will be more backloaded we will not read some of the [indiscernible].

And so this blending out, I'm sure that it is not formed for part of your capacity. The capacity will remain at about 6 million in terms of the overall capacity of headline year. Would you take it as an additional capacity? Or like would you keep your rated capacity the same?

Our capacities. Like we said, is around 30,000, 35,000 tonnes per month, the cement capacity will increase.

So can we presume that this is a CapEx -- this would increase your rated capacity to that extent, 31,000 tonnes per month, which [indiscernible] 0.4 million tonnes [indiscernible].

We not output capacity, yes, because as of now, we find it difficult to approach that market because [indiscernible] quite far from that part.

And sir, last, your volume guidance, like you have done 1.35 in this quarter, which is the highest ever at book has done and since you're optimistic on demand. So can we achieve like a 90% utilization for FY '27 or maybe '28? Are you confident of retaining these kind of volumes for upcoming quarters and obviously, in peak demand periods?

On a yearly basis, yes. I think quarter-on-quarter, it's a little difficult to predict.

Okay. So we have a question from participants in the queue. I will just hand it over to Ryan [indiscernible].

[Operator Instructions] We take the next corn from the line of Shravan Shah from Dolat Capital.

A couple of questions. Sir, just to clarify, when we are seeing the industry in Central India to grow at 7%, 7.5% -- so for us, in terms of the official kind of a volume target would be the similar 7%, 7.5%, that's what we are looking at?

I have not understood your question. Are you saying we -- are we forecasting that we should be also growing by the similar number? Is that what you're asking? We shall be in line with the industry growth in our region. We cannot achieve that because we are, as you know, we are nearing our complete capacity utilization. [indiscernible] in line with the growth.

Yes. And just to get a number here. So in terms of the cement capacity as on today is 5.95 million tonnes, the inline and onsites 2 units. And in terms of the clinker capacity, is it 3.23 because some debottlenecking at [indiscernible] was supposed to happen. So just wanted to confirm the number.

Yes, the debottlecking has happened, the capacity is going to come. The debottlenecking exercise is over.

So what's the current clinker capacity? Is it 3 million, 3 million or 3.1 million?

Our clinical capacity is 3.1 million tonnes and cement capacity is not [ 5. 95], [ 5. 7 ] is our cement capacity in Central India.

Okay. Okay. Got it. And then this -- both the new -- the NP whenever we will finalize, let's say, so obviously, they are also like a Gujarat in tens of all the approvals, environment, everything will be there. So just trying to understand, even, let's say, in the next 1 year also, we will start -- this will be kind of a 3, 4 years down the line, the actual plan to start?

No, no. We have already received the city. So we can expect this project to be completed within 2 years from now, maybe even earlier.

No. So this is the kind of one you are saying?

Yes.

Yes. No, I'm saying apart from this, the Gujarat one, let's say, do you think that the environment clearance likely to be there in next 6 months, 1 year is possible? And if it -- let's say, it comes post that we start. So will it take another 2.5, 3 years to actually cement growth?

Yes. [indiscernible].

Okay. And there, in terms of the capacity, the last time, we are talking about 2.5 million, 4 million tonnes. So or still can depends in the time --

Once we receive the [ EC ] and we look at the situation, that will be decided. That is not a number which is very firmly finalized.

And then this MP 2 mines that we have won there also whenever we will add new capacity, that will also be at least 4 years down the line from today?

No, it will be earlier. There is nothing like that is 4 years down the line. But as I said, as of today, I'm not able to -- I'm not in a position to declare an exact date. But we have planned very firm plans and we are definitely going to start working on it.

Okay. And for this [indiscernible] unit, then we will have to kind of start buying the clinker or still the current --

Our existing clinker would do.

Okay. And sir, just to clarify this cost increase, what you mentioned initially 100 to 160 odd just to clarify, since Q1, we are seeing maybe INR 100 crores, INR 125-odd kind of a cost increase because of the packing bag, diesel and the fuel. And then overall, in [indiscernible] INR 160 kind of a cost increase that we can see.

Yes.

Okay. And currently, sir, just 2, 3 data points, the lead distance for fourth quarter FY '26 fourth quarter and FY '26 and fuel mix for maybe fourth quarter and FY '26. So that will help us to understand in terms of the -- what you were highlighting that we can shift from [indiscernible] to coal.

So our pet coke to coal earlier, it used to be around 60%, 65% was the pet coke remaining coal and tent fuel -- now during last maybe 2, 3 months, we had reduced the pet coke consumption by around 10%. So the coal consumption increase from earlier 30% to 40%. So that optimization we have already done and hopefully, that should continue in June quarter. And in terms of your question on the distance, our lead distance currently is around [indiscernible] kilometer.

[indiscernible], this is for the entire FY '26? And what was the number for Q4?

It's more of the sale. Our lead distance has not changed, although during the last maybe 6 months increase around 5 [indiscernible] or there is no significant increase or decrease in the distance.

And the [indiscernible] cost on a combined foot-wear averaging for fourth quarter and FY '26 is how much?

[indiscernible] used to be around maybe expenses 10%. Now currently, it is really expensive 30% over coal. On [indiscernible] was around 1.5 and pet coke now exceeding [ 2.25 ].

No. But actually, what was the actual blended take cost for fourth quarter FY '26 and FY '26 full year?

Okay. I'm talking about this current pooling cost price, which is after the escalation of any soft [indiscernible] petro prices. But if you look out the only last quarter, March quarter, we call [indiscernible] below 1.5 and which is more or less earn as well and the [indiscernible] price was around 1.9%.

So still, I did not get at the blended level for us for fourth quarter and FY '26. What was the [indiscernible] cost? Everything put together, what was the blended cost [indiscernible] --

Are you talking about the put together both?

Yes. Put together for fourth quarter FY '26 and for entire for '26.

I need to [ read ] it.

[Operator Instructions]. We take the next question from the line of Rajesh Ravi from HDFC Securities.

Regarding the clinker debottle [indiscernible] in the last call, you have suggested that the point [indiscernible] would be up and running by June quarter last year June quarter. So are you saying that it is still due from 3.1 to 3.3 million.

Our debottlenecking project with respect to this cleaner we have already done. This was more particular [indiscernible] and we have already submitted our application to increase our capacity. We are working on it.

Sorry, while the debottlenecking is done, the approval for the capacity approval is spending? Is this what you employ?

We are talking about 2 things. One is that the improvement of the skin by doing the devoting CapEx that we have done it. But when we talk about the capacity for the government side to get the approval that we are working on it.

Okay. And there is -- so there is no grinding expansion or debottlenecking we have done. So grinding capacity remained 5.75%. And while clinker has expanded from 3.1 to 3.2. The official approval is rate pending?

Yes, you're right.

Understood. And sir, [indiscernible], the unit which you had, which is defend new usable -- is there any plan to dispose of the land parcel? Does it have any monetization value with the company would be looking at?

Our [indiscernible] still be it is the lower quantity, but we have been operating it.

Because you don't count it under your capacity of 5.75 which we assume is 2.5 and has 3.25. That is our --

The capacity of the company is 5.75. The Karnataka capacity of around 0.5 million is also there.

So in that case, we have 6.26%. Is this the capacity we have?

Yes.

Okay. And there is no grinding debottlenecking, which is happening as of now, the only the blending unit that you are setting up in MP, which is 0.4 million tonnes, which will come up by FY '28.

[Operator Instructions] We take the next question from the line of [ Jinesh Kotari ] from [ Equirus ] Securities.

Yes. Can you please provide me with your [ PIMCO ] sale number for FY '26 and what was there in last year FY '25?

This is part of the total sales volume, we have reported [indiscernible] cement and clinker to together.

I wanted a clinker volume separately.

Difficult to share that number.

We take the next question from the line of [ Nagraj Dipali], an individual investor.

Sir, my suggestion for the company is it going for dividends, very good dividends you are declaring, why don't you go for a share buyback, which will increase the shareholders' value in the long term?

Okay. We have noted down suggestion, maybe we will explore in the management committee and will discuss in the Board of Directors meeting, and we'll see. Then we have declared there we have recommended by the Board and we will submit before the shareholders for their consideration and approval. But at the same time, we'll check the share by the proposal.

We take the last question from the line of Shravan Shah from Dolat Capital.

Sir, the total for the company as a whole, total CapEx for FY '27 and for FY '28 would be how much?

Total CapEx, we put into 2 parts. One will be our -- you can see sustainable CapEx scale business. It is in the range of around INR 45 crores to INR 50 and that we do every year, which is more or less 40% of our annual depreciation. And on top of that, we see some improvement CapEx today we discuss about this and blending unit, and there we are going to make it around INR 130 [indiscernible] in 2 years. So first year, if I take the ballpark number of the 40% of [ INR 130], so around INR 54 another. So for the fiscal year '26, '27, it will be around total INR 100 crores. And next year, subsequently, it's really around INR 120.

Okay. Got it. And sir, did you able to get that blended take on cost?

We'll kick it in the 3 months. Are there any other questions?

Sir, there are no questions in the queue. I will hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital India Travel Limited for closing comments.

Yes. Thank you. On behalf of PhillipCapital India Private Limited, we thank the management of HeidelbergCement India Limited for the call, and many times a part joining the call. Ryan, you may now come on to the call. Thank you very much, sir.

On behalf of PhillipCapital India Private Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.