J.K. Cement Limited ($532644)

Ladies and gentlemen, good day, and welcome to the JK Cement Limited Earnings Conference Call for the Quarter and Year Ended 31st March 2026, hosted by PhillipCapital India Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital India Private Limited. Thank you, and over to you, sir.

Thank you, Davin. Good evening, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the Q4 and FY '26 call of JK Cement Limited. On the call, we have with us Mr. Ajay Kumar Saraogi, Deputy Managing Director and Chief Finance Officer; and Mr. Prashant Seth, President, Business Information and Investor Relations at JK Cement. I would like to mention on behalf of JK Cement 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 statements which are based on current management expectations. These statements are subject to a number of risks, uncertainties and other important factors, which may cause actual developments and results to differ materially from the statements made. JK Cement Limited and the management of the company assumes no obligation to publicly alter or update these forward-looking statements, whether as a result of new information or future events or otherwise. I will now hand over the floor to the management of JK Cement for their opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, Saraogi.

Thank you, Vaibhav. Good evening, and welcome to Q4 and annual call. The Board of Directors met on 23rd of May to review the working for the quarter ended 31st March 2026 and the year ended 31st March 2026. The major highlights during the quarter, the net sales has increased by 15% at INR 3,614 crores as compared to INR 3,132 crores vis-a-vis the previous quarter. And year-on-year, it was higher by 11%. The previous year, the turnover was INR 3,261 crores. Year-on-year, the net sales has increased by 16% at INR 1,568 crores as compared to INR 10,802 crores. The EBITDA during this quarter was INR 670 crores as compared to INR 536 crores in the previous quarter, an increase of 25%. However, it was lower by 9% year-on-year as the previous year number was INR 736 crores. Year-on-year, the EBITDA is higher by 18% at INR 2,318 crores as compared to INR 1,968 crores. The EBITDA margins for this quarter was 18.5%; previous quarter, 17.1%; year-on-year 22.5%. For the full year, the EBITDA margins were 18.5% as compared to 18.2% in the previous year. The profit after tax was INR 345 crores for this quarter as compared to INR 181 crores in the previous quarter, an increase of 91%. And it was lower by 17% as the previous -- year-on-year. Previous year, it was INR 412 crores. For the full year, the profit after tax was INR 1,033 crores as compared to INR 851 crores in the previous year, an increase of 21%. The earnings per share was INR 44.50 in this quarter. And for the annual, it was INR 133.70 as compared to INR 110.1. The Board of Directors also proposed a dividend of INR 20 per share, subject to the approval of the shareholders. If we look at the status of the project, during this quarter, the company has commissioned the greenfield expansion at [indiscernible] in Bihar. And with this, the total 6 million tonne capacity expansion taken up in Central India get commissioned. Also increased the capacity of the plant at Madhapur by 1 million tonnes from 3.5 million to 4.5 million tonnes. And we started the work on the new greenfield project at Jaisalmer, a 7 million tonne plant, 4 million tonne integrated clinker capacity at Jaisalmer along with 3 million tonne grinding and 2 million tonne each grinding locations at Bikaner and one in Punjab. Here also, the work for the integrated plant is in advanced stage. The civil construction and erection work is progressing well. The project cost for this -- for the integrated unit is expected around INR 3,630 crores, and we have already spent about INR 742 crores up to March. We expect the commissioning in H1 of FY '28. The work on the grinding station at Bikaner, the main order has -- the main -- the orders for main plant and equipment has already been placed. The construction work at the site has begun. And here also, we expect the commissioning in H1 '28. For the grinding units at Punjab, we have already acquired the land. and the other approvals are in process. So we have already placed order for main plant and equipment. And here, we expect that this would also get commissioned in H1 '28. The company had also taken up for installation of 6 lakh tonne [ 5] 0 plant at Nadhwara in Rajasthan. The work is in advanced stage of completion, and we expect that by September, this plant should get commissioned. If we see the balance sheet position, the gross debt as on 31st March is INR 5,136 crores. The net cash is INR 1,765 crores, and the net debt is INR 3,370 crores. The net debt to EBITDA is 1.45. The equity is INR 6,961 crores. The net debt to equity is 0.48. These are the major highlights. We'll be pleased to address your queries. Thank you.

[Operator Instructions] Our first question is from the line of Harsh Mittal with Emkay Global.

Sir, my first question pertains to the employee expenses. So it grew 25% Y-o-Y. So I believe majority of this inflation could be attributed towards the commissioning of the grinding units. But was there any other one-off expenses included in employee expenses? Because there is approximately INR 32 crores of sequential rise in the expense cost. This is my first question.

So yes, as far as employee [indiscernible] that the commissioning of the new plant in India which has been done in this year. So earlier the salaries were all capitalized. It has gone into revenue. On account of increased business requirement also, there have been additional manpower requirement. Normal increments also impact is there. And because of the labor code also, whatever is the impact during the year, that is also provided in this quarter. There is also onetime some liability pertaining to the leave travel assistance. So that is also provided in this quarter.

So sir, can we safely assume a sustainable run rate of INR 260 crores going ahead? Or there is some dilution there is dilution, provided some dilution in this employee expenses?

So around -- see, we feel that around INR 250 crores or so would be the -- there is -- see, what would happen even on this base number, there would be an increment impact of the annual increment with effect from 1st April. So that impact is we have already declared our annual increment, and that impact is around 10%. And there would be, as a business requirement, certain additional power would be required. Even Nathdwara, the project will get commissioned in September. So some manpower increase there, it would be there also. So we do expect that from the whole year number of 937, there could be about 12% to 14% increase year-on-year.

Right. Sir, second question is on the other expenses. Again, there you have mentioned in the PPT that there is an increase in advertising expenses and packing cost. So what is the component of the packing cost in the INR 80 crores rise in the other expenses?

Packing cost, the composition is like it has increased on two accounts. One is because of the volumes and second is because of the price. So combined impact is around INR 30 crores.

Last question is on the incentive income. It seems to be a bit lower than the guidance provided in the earlier quarters of around INR 75 crores. What is the reason for the same, sir? Can we assume the same run rate going ahead? Or should we expect any pickup?

There is a reduction in the incentive of the unit the incentive has already been availed for the full 10 years. And then because of reduction in GST. Also, in case of Rajasthan, not able to avail the incentive because we are getting the -- so we can't avail that [indiscernible] credit is being done on the project. So as a result, we are not able to claim the incentive. And that input credit we get immediately.

[Operator Instructions] Our next question is from the line of Amit from Axis Capital.

One, I just wanted to understand the white cement outlook. I believe white cement was also coming from your UAE plants, which is impacted because of the situation. So what is the outlook on white cement volumes for FY '27 and particularly in the near term? That is the first question.

So one, as far as the domestic white cement is concerned, we -- well, since we have -- we'll be able to meet out the entire demand from the domestic production. Yes, we were feeding as it was more economical certain regions in the South from UAE. At this point of time, we are feeding that from [indiscernible] plant. So we don't see losing any market of white cement on account of the present geopolitical situation.

And has the pricing increased because the flow has reduced from...

So we have been able to increase the prices of both white cement and [ wall ] putty on account of increase in the input costs. The chemical costs have increased substantially. So we have been tried to pass on the cost increase to the customer.

And what is the CapEx guidance for FY '27, '28?

For this year, the CapEx should be in the range of INR 3,500 crores to INR 4,000 crores.

Okay. And next year?

Next year, it would be INR 1,500 crores to INR 2000 crores.

[Operator Instructions] Our next question is from the line of Rajesh Ravi from HDFC Securities.

Yes. Some of my questions have been answered. On the incentives, what was the incentive accrued in Q4? And what is the outstanding on books as of March?

See, in -- I'll just tell you the Q4 incentive. The outstanding as on 31st March is close to about INR 300 crores. And in this quarter, it is about INR 29 crores.

Okay. So this [ INR 29, INR 30 crores ] would be the assumed run rate here on in subsequent quarters?

It would not be the assumed run rate. The run rate -- see, actually what is happening, we are not -- because of the GST input credit for North, we are not able to take the incentive which we were getting for our -- for [indiscernible]. So that loss would be there. But whole year, we got an incentive of about INR 230 crores. And this year, we should close to about INR 250 crores to INR 260 crores because Bihar, though we are not accruing the incentive as on date because our policy is once we get the sanction letter, then only we start accruing it. So we expect the sanction letter, so the Bihar incentive would also come in whenever we get the sanction letter, we will account for the incentive for Bihar. And other grinding units also now for Prayagraj, [indiscernible] and all, we shall be getting the incentive. So we feel that it will be around INR 250 crores for FY '27.

Understood. And sir, just for clarification, the sanction letter is just a formality or you will start -- and hence, you will start reporting it or accruing it once you get the sanction letter or you're eligible to accrue it now and only we will report it when you get the sanction letter?

As for our accounting, unless you have a document with the scheme says, you are eligible, right? But sanction letter says now it's an official elegant, then we -- after receipt of the sanction letter, we will submit our application for the -- for getting the amount from the state government. So it is only as a prudent accounting policy, we account for -- we start accruing in the books of accounts, though it will be from the bad debt, but only after receipt of the sanction letter from the government.

Understood. Understood. And sir, second question, which you -- on the current geopolitical situation, the cost increases, given that INR 150 sort of cost increase, everyone is looking at in Q1 versus Q4 on the variable cost side, how much of that have been passed on in month of April and May?

So we could say that because you had inventory and other things in the month of April and the May, we would have on an average a price increase of about INR 10 a bank. So INR 10 would remain, say, 18% less of that. So broadly, it is passed on as on the is what we could say on this. But we are able to pass on the new impact of diesel and all which we had to wait and watch.

Okay. Understood. Understood. And sir, second, with the JP plant, the 5 million tonne would get operational somewhere this year, do you see the competitive intensity would increase in the central market, which is already reading under margin pressure because of multiple companies ramping up capacities?

No, we don't see -- again, it is not something we were not expecting. So this was already there to past 3, 4 years. In fact, [ Dalmia ] earlier had already started sending materials and setting the market and they could not. So this is not -- this is something not as a surprise. But now it has come, okay, we will address it as it comes. And we don't see immediately large volumes coming up. See that even they will be able to -- it's only from beginning of Q3 that you should start seeing some material coming from the JP plants.

Okay. Understood. And sir, two questions just on the, again, similar trajectory for Rajasthan market, where a lot of capacities are coming up during FY '28. So how would that market step up in terms of volume and pricing FY '28 onwards? .

So again, see, I'm saying we are well prepared. When we took the expansion, we had factored in that competition will definitely intensify. So we are prepared for it. We are confident we have we have strengthened our team processes. We have planned how we [Audio Gap] is one entity, if you look at it. Now you will have 3 more locations, and we will have advantage on serving the market in shorter distance, which will be able to have a better market grip and improve upon our market share. We are very confident on that.

And SP1 Visioning of all those capacities has the highest utilization levels. So that would be slightly reduced by, say, around 4% to 5%. But again, remain higher than the overall average for the country as a whole.

Agree. And anything -- any update on the SAPCO expansion in umbra the Odisha expansion plans?

So no, at this point, no plan for expansion. What we are -- for Orissa, we have not got any mining lease at yet. As and when mining lease comes, then we will think about the expansion with timelines. So as of now, there is nothing. Even for SAPCO we have the mining lead first, we will stabilize and our position in the market stabilize the plant and start earning profit from there and then we will look at the expansion.

[Operator Instructions] Our next question is from the line of Parvesh Kazi with NovamaGroup.

Congratulations for performance. So my first question is regarding our expectation for FY '27 in terms of volume growth in the gray cement business.

So we should be -- in FY '27, we should also be growing in a double-digit growth. So we expect the market to grow, say, around 6% to 8%. And our -- as far as how our volumes are concerned, so as we said, we should get incremental definitely 2.5 million tonnes incremental volume, maybe more.

The second question is regarding the progress on the cost reduction front. Any commentary on that would be great.

So see, as we have already achieved the major cost savings, but just ongoing, we see another INR 50, which we should get in this fiscal, mainly coming -- mainly driven by a on the green power and some -- and on AFR in the south and the north plants.

And last question, what was the fuel mix in Q4?

See, we were using -- based on the heat value, around 50% of the petand 12% is the alternate fuels and balance is the Indian core.

[Operator Instructions] Next question is from the line of Patanjali Srinivasan with Sundaram Mutual Fund. As we are not receiving a response from the current participant, we will proceed to the next participant. Our next question is from the line of Tejas Pradhan with Citi Group.

Most of my questions were answered. Just a couple more. On the recent limestone block that you have in Andrades that you have filed -- any color on any update to our medium-term expansion plans based off this block? I mean what's the reserves here you are planning to add any capacity in...

No immediate again, limestone deposits are being looked at and are being acquired looking into way forward, how we would like to expand and become heavy become a more national player. So as of now, CB already have a plan for 2030. I mean this limestone of the Telangana maybe our next phase of expansion.

Understood. Do we -- what's the limestone reserves over here in this block?

500 million tonnes.

Okay. Okay. Understood. Just 1 more question on the cost savings guidance that you have given, INR 50 per tonne this year. Does this include, generally, you have a cost benefit when the new commissioned plants ramp up, right? Because you have been feeding the East India market through your other capacities, right? So and you would have based at recoveries, et cetera, coming up in this plant. So does this include this thing? Or some additional cost benefit could come through.

No, no. Actually, these are for the existing operations. When we look at what are the initiatives -- some of -- one is increasing. See, if we optimize more on the -- whatever we optimize on the existing base rate, that is part of the cost saving. Installation of new [indiscernible] is not part of the saving.

Okay. So could there be any additional benefits from the Central India ramp-up that you could...

So Central India, ramp-up cost benefit will definitely be there. As well as reflected because Central India, we have a major because cost advantage and in that region.

Okay. Understood. And just 1 last question. Could you share the consolidated cash balance as of FY '26?

Actually, our -- the stand-alone and consolidated cash balance is the same because the subsidiaries are mainly SAPCP and Fujairah, where there hardly there's no cash balance as such.

[Operator Instructions] our next question is from the line of Sidharth with Kotak Securities. .

One of our mentioned that you're hiring some regulatory clearance issues in Punjab, which is also the location for one of our plants. So I just wanted to check, are we sort of also anticipating some similar issues, especially given the fact that there may be election-related slowdown there?

As of now, it's very difficult to say, but we are -- we don't foresee where what we have identified that there should be any issues. But if there are, we will inform everyone. But as of now, there are no issues.

Understood, sir. That is very clear. And can I just wanted to get a sense of what sort of cost inflation we are looking at. So could you just break it down perhaps into different segments, such as fuel, packaging, et cetera?

See, as far as fuel is concerned, yes, it is an impact, but you -- every day, situation changes. Even as of now, today, you see the situation. But again, it will take things -- it will take some time for the things to -- if everything gets normalized, even to get things normalized, it will take about 3 to 4 months. So I don't think so that what will be the few situation for supplies, whatever we have new orders, which we have already secured for up to September. So we have to have a planning until September. So that inflation -- I mean the cost trend we have already informed you that is about 150 and it may go up to 200. There are other cost increases on account of whatever is a diesel price increase because that has whatever it comes. -- that has an impact. We are really not -- we do not know what could be the impact of that. But again, our efforts would be that we will try to pass on that increase. Obviously with respect to backing costs, it was there, but now it has already reduced. The packing impact, which was there sudden because of increased demand and now the alternatives have already been [ worked ] out. And the packing cost factor, which was there, that has reduced of, I think, substantially, it has been addressed.

Understood, sir. Sir, if I may say, in the recent say, 10-odd days, we've had a fairly substantial increase in diesel prices, about INR 8 to INR 10 per liter. So what sort of impact does this sort of increase have on a [indiscernible] just a ballpark figure, okay?

See, as of now, the whatever increase has taken place, there has not been any significant impact, maybe about INR 10 because it did not -- yes. There were people facing -- there's always -- there is already some shortage in the market of diesel. So it is a trend, but not there has been an increase announced only yesterday. We have to see what is coming in the pipeline, how does -- how much we have to pass on. It will depend. We have to wait and watch.

Understood, sir. Just a last bookkeeping question. Sir, what was your pain revenue and EBITDA for this?

So the paint top line was INR 380 crores. And there was around INR 40 crores plus loss was there in the paint business.

Got it, sir. And we expect it to breakeven next year?.

Yes, yes. Now we expect a top line of INR 500 crores to INR 550 crores in this fiscal. And with the improvement in the gross margins and other things, we expect that this year, we should have a breakeven or maybe a marginal EBITDA. But definitely ...

[Operator Instructions] Our next question is from the line of Patanjali Srinivasan with Sundaram Mutual Fund.

Sir, I have a couple of questions. So firstly, with respect to our other expenses, is there any onetime or promotion kind of expense which we have spent on the higher side? Because on a year-on-year basis, the increase seems pretty steep.

See, other expenses, one, is an increase because of increase in the business, in the volumes. So it has other expenses includes packing costs, includes stores and spares and certain selling expenses, which are variable in nature. So as our volumes increase, the impact is there. The other head where the increase is there, that we are investing on some of the branding, both in the gray and the white business. So because of the investment in branding, which with the current market, we need to do that. There's an increase, which is not very substantial, but incremental, company may be doing about INR 50 crores to INR 60 crores additional branding.

And one more area of which we have like kind of changed our lead distance has come off quite a bit. So will we start seeing benefits from this on a per tonne kilometer basis going forward?

Yes, we have to per tonne per kilometer as we enter new areas, see what is happening every region has a different per-tonne per kilometer range. And now in our case, what is happening, all the incremental volumes which are coming, which is all road based. We do not have the incremental volume on not rail-based, which will come with the new expansion when we do at Jaisalmer. So on per tonne per kilometer, though, we are -- we'll be able to maintain. But again, lead distance, it depends as you have to reach out to new markets. So more or less, we are -- we should be able to maintain the same lead distance and increase upon our volumes.

Just one related question, sir. What is the impact for us with the sensitivity with respect to increase in diesel prices? Like do you give me some rough numbers for that?

See, diesel prices may have an impact, both internal and external. One is internal material movement. I think if suppose it goes up to INR 10, INR 11, which is a fair number, I think it will go up as the way the government is doing -- it has already been now INR 7, so INR 11, INR 12; it may have an impact of maybe about INR 50 a tonne, INR 60 a tonne.

[Operator Instructions] Our next question is from the line of Girija Ray with Nirmal Bang.

A couple of questions. Do you see any kind of -- first thing is about the pricing? Do you see any kind of pre-monsoon price hike? And second will be on the demand. So don't you think we are a bit conservative on giving the full year industry growth of around 6% to 7%? Because in post-COVID, we saw some kind of revive in demand. again, in FY '25, we saw a drop year-on-year volume growth or demand. So what's actually happening in ground level? Things are not working kind of infra work or anything? Any kind of issues or challenges we are facing that we are a bit conservative on our industry demand growth?

We are conservative. Again, 6% to 8% is fair. If you look at the cement industry, it has been growing at 6% to 8%. Normally, it was an old formula. The cement grows at 1.2x the GDP growth or GDP sometime. But that is -- that was the old one. I think cement infrastructure -- but as you said, on an infra spend, there is a good demand. But we have to see the -- see, what we are saying 6% to 8%, look at the present geopolitical situation. which is having some impact on many businesses. All this impact does have an impact on housing. We may see. We have not seen any major, but we have to factor all this because people -- I mean if they are short of -- I mean their businesses are down, they may have to defer their housing investment for some time.

So is there any kind of -- do you see any kind of liquidity crunch or cash flow issues from the government side? Do you see any kind of things? .

I don't have to comment on that. Everybody knows, you may be in a better position to know what is the cash share in case of government.

Monsoon price hike, do you see any kind of...

The cost increase, yes, it would like to pass on all the cost increase. Prior to the link period, that would always be the effort, and we will see a wait and watch and see what our price increase we can do at least pass on all the cost increase.

[Operator Instructions] Our next question is from the line of Shravan Shah with Dolat Capital.

Sir, thank you. surprised to get a chance at much later despite pressing star 1 much earlier. A couple of questions, sir, from my side. Sir, first, when we said that for this year, we are looking at at least 2.5 million tonne incremental volume and maybe more. So similar way 1 can also look at for FY '20 also, given Jaislamer, all the Bikaner and the Punjab would also support the incremental volume at least for second half? And maybe if you can also highlight maybe even if we can try to start the plant by 2, 3 months earlier, so that can also have some extra volumes. So similar 2.5 million, 3 million tonnes extra volume is also 1 can look at in FY '28 also.

Sure, sure. Again, we are making investment. If we are making a capital investment on capacity. Definitely, we will like to have that volume growth, and we are working. We will define -- going forward, with our plans on 2030, you will see that minimum. But earlier, I said that we should get on an annual 2 million additional volume. Now already revised that to say 2.5. And going forward, hopefully, we'll revise it to minimum additional 3 million every year. So we have to get that we have to give the return on investment also.

Yes, sir, yes, Yes. Second, sir, in terms of CC ratio, so currently maybe in fourth quarter or maybe entire FY '26, is it still at 1.55? Is there a way to further improve this?

See, there are ways, again, it also depends on the demand pattern. As we see, there is a good infra growth. And infra is more on OPC. So we have to see in which where the demand is growing. And it's not -- so all the clinker cement ratio depends upon the mix and as we -- we cannot just ignore, and it is not possible to get this growth only on trade.

Okay. Okay. Got it. Sir, just to clarify on the staff cost or the previous answer, I think it was on the stand-alone basis. On a consol basis, also a similar way we are looking at or 12%, 14% kind of on a full year basis kind of a growth? Because on this quarter, the consolidated play cost is INR 291-odd crores. So from Q1, we should further see the further, further increase here?

Yes. Of course, from Q1, you will see an increase. The increase, as I said earlier, increases on account of the increments. And we have already -- as per the labor code, we have reclassified the salaries to meet out the labor courts requirements. So that is also having some impact on the wages.

Okay. And sir, on the CapEx front, so as mentioned that for '27, we are looking at INR 3,500 crores to INR 4,000 crores kind of CapEx? But Jaisalmer balance CapEx is INR 3,900-odd crores. So -- and then for next, so does that also mean mostly we will be completing this and the extra FY '28, what we are seeing of INR 1,500 crores to INR 2,000 crores? So this will be for [indiscernible] expansion that will be the...

We have not considered the next expansion in days. because this INR 3,500 crores is not going towrads Jaisalmer [ expense ] the entire CapEx. It includes the normal CapEx. It includes the CapEx on the [ Putiplant ], which is going on. then we also consider the investment as part of is like whatever we are doing for the solar tie-ups or investing in the SAPCO.

So there is an investment also in coal block and there is other normal CapEx. So what we -- so out of INR 3,500 crores, which we expect may be the overall CapEx, about INR 1,000 crores -- INR 800 crores to INR 1,000 crores would be the normal CapEx and other CapEx and about balance could be on the greenfield expansion.

Okay. And [ Kannada ] entire roughly INR 60 crores was supposed to be spent the balance CapEx out of the announced 2,850, so have we entirely done in the fourth quarter something is pending...

What is happening in case of an there's some lower expenditures remaining to the easing. Number two, I'm happy to inform that out of 2,850, there would be a good amount, at least INR 200 crores to INR 250 crores saving -- about INR 300 crores savings in Panna. So we will end up the project at a lower cost.

That's a great thing. And sir, on the paint when we said that the INR 500 crores to INR 550 crores revenue that we are looking at for FY '20 and EBITDA breakeven or maybe positive. So this will be the for entire full year on an average basis we are seeing, not for my exit of FY '27?

No, no, no. I'm talking about the full year. The 550 is not exit. It is a full year number. INR 500 crores is a full year number. I mean I said EBITDA positive is the full year number.

Okay. And then the incentive from the maybe the INR 29 crores that we have said for fourth quarter, from third quarter onwards, we should start seeing this number should be significantly jumping up to...

So it may vary quarter-on-quarter. But I'm saying full year number should be around 250.

Yes. I'm trying to understand the FY [ '28 ], that number if the run rate goes to INR 70 crores, INR 75 crores, then this number would be INR 300 crores for FY '28. So I'm trying to

Could be, yes. Yes, definitely, it will increase going forward.

Yes. And on the wired business front, on the volume front, now the 0.6 million tonnes, 6 lakh will be there by Q2 or maybe 1 or 2 months early. So we should be seeing a full year basis, how 1 can look at on the volume at a consol of white cement?

So consol white cement, we expect you should see an 8% to 10% growth.

Okay. So that run rate will keep on going on for us?

Yes, yes.

Yes. And lastly, sir, thermal power plant capacity, 27.5 megawatt that we have reduced in this quarter, so from which plant or any specific reason?

We are the thermal power plants are the white cement and one thermal power plant at the gray cement, where that is -- now we have discarded that power plant as it is, we are not operating. It is not economical to operate. Now we're going for more green power.

So are we going to sell as a scrap or can we get some kind of a revenue or it will remain as it is or maybe we can use as and when required?

So mostly, we should sell it as scrap only. .

Okay. And then green, sir, now the WHRS is that, so this 51%, 52%, how we can look at for full year FY '27, this number going up?

FY '27 , they should increase by 2%, 3% because we are -- I mean some approvals from the state or amendment from the group power, the lining is there. I think they should be closer to 55 by FY '27.

Okay. Because if we say the target is to reach a 75%. So I'm just trying to -- so the main increase will start coming from FY '28 onwards to reach that 75%...

We will reach that number when we put up gain power it takes time before it gets installed when combined, we have about already 80 megawatts in process. So once that commissioned, it will substantially improve the green power.

Okay. Lastly, sir, what you said is basically the cost increase overall and the price increase on net-net for Q1, we should be -- at least should be seeing the similar kind of profitability if everything is one considers as of today's date, if everything remains as long. And maybe Q2, if the price increase is not there, then maybe some pressure can come in on the profitability. That's the way one can look at

You can look at it that way. It depends

[Operator Instructions] Our next question is from the line of Prateek Kumar from Jefferies. Please go ahead. .

I have two questions. Firstly, on your Cement profitability. Is this on an EBITDA per tonne basis, including [ Putisimilar] ? Or how does that compare to Graeme performance?

See, we don't share separately the white cement profitability and pot.

But directionally, I mean I know it has been coming down ...

I mean its coming down because of increased competition, and I think now going forward, it should not further reduce.

Okay. And then keeping question. Your North operations will be now running at close to 100% utilization. And Central region, you have -- your capacity has now increased to almost a similar, I think, maybe slightly higher than not....

How is the SP1 North still remains the highest capacity. It's part of $32 million. Basically, if we say 15.5% is not and 16.5% south and center. Central is 12%, 4.5% is out.

The debottlenecking, which you have done in this year are on Michal plants?

Mainly, it is in the south plant, where we have the capacity from 3.5 million to 4.5 million.

Okay. South has seen 1 million tonne increase. Okay. Yes. And just a late question on Central regions. We have crossed in Central region on an expanded capacity, what would be the utilization?

So expanded capacity overall utilization should be around 6,570 combine

On a 12 million tonne volume, you have 65%, 70% utilization, right? .

The run rate.

Ladies and gentlemen, we will now take our last question from the line of Parvesh Kazi from Nuvama Group.

Just a couple of bookkeeping questions. What was our TC cost this quarter, the rail share and the CC ratio?

The TC cost was INR 1.48.

The rail cost ?

It is was 8%.

And lastly, the CC ratio?

we are at 67%.

i would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Over to you, sir.

Sir, I had a couple of questions. Actually, the first question was a lot of your -- especially regarding central in the operations. So a lot of your peers have been kind of -- since the time you've started to been kind of giving the feedback that JK Cement is trying to push a lot of volumes sent non-trade segment, which is actually bringing the broader pricing to a subdued level in Central India. And so what is your response to this? Or is this -- what is your strategy in center in the operations in terms of ramping up utilization and in term of correlation to pricing? How do you respond to that?

No, no,. That was about 2 quarters back. But definitely, as per its not non-trade, but as for CAM, we see CAM as a major driver for the volumes, and we are not only Central India, of course, we are working out on key management account to increase our volumes. And so we are not dumping any material anywhere. .

So in Central India, sir, you are -- there's no reason for Okay. And sir, second question was that, a, when we had our recent investor road in March, so you had actually guided for a -- and you have been guiding for 50 million in capacity by 2030. But now given that a few players are kind of holding on their expansion, whereas companies like the industry leaders, especially Ultratax cement, they are are now talking about 300 million capacity. So what would be JKCmentsthought process would be after jaislamer?.So I know it's a little early to give a response to this. But because you have been executing very well and in front of you show in your execution all the time through that you can execute capacity as well as volumes, given by several things. So going forward also, assuming that geopolitical situation doesn't settle on and other peers kind of reduce their capacity expansion. Will JK Cement continue to move forward to the 15 million [indiscernible] are you confident of it? Or there be a possible delay?

As on date, we are confident that whatever we have planned for 2030, and we don't foresee any change in that plan. However, in case some -- because of geopolitical situation, there is a major challenge on cash flows, if because of geopolitical external factors, and we may have to sell for another 6 months or so, but nothing long down. They are quite sure that -- I mean, as of now, we don't see any problem. -- quite quite confident that we will go ahead with our plan

So sir, just one -- just to follow-up on this. So Prashant gave a guidance of INR 1,500 crores of CapEx for FY '20. So that factor in in your road map of 50 million or should there would be additional out...

See what has given a guidance is only with respect to the commitments as on date. When we give a guidance, we don't include what we have not committed so far. The next expansion is definitely there on the cards. We are planning for it. We will go ahead with it. But we will give the CapEx commitment plan only once we approve the -- it is approved by the Board.

Thank you, sir. On behalf of Phillip Capital India Private Limited, we'd like to thank the manager on JK Cement for the call and also many thanks to -- for the participating in the call.

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