JK Lakshmi Cement Limited (500380) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to JK Lakshmi Cement Quarter and 9 Months Year Ended 31st December 2024 Earnings Conference Call hosted by PhillipCapital India Private Limited. [Operator Instructions]. I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital India Private Limited. Thank you, and over to you, Mr. Agarwal.

Yes. Thank you, Michelle. Good evening, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the Q3 and 9-month FY '25 call of JK Lakshmi Cement Limited. I need to highlight that JK Lakshmi Cement is also the holding company of its listed entity, Udaipur Cement Works Limited, and therefore, this call is also open for discussion about the performance of Udaipur Cement Works Limited. On the call, we have with us Mr. Arun Kumar Shukla, President and Director; and Mr. Sudhir Bidkar, CFO at JK Lakshmi Cement. I would like to mention on behalf of JK Lakshmi Cement and its management that certain statements that may be made or discussed on this conference call may be forward-looking statements related to future developments and which are based on current 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. So JK Lakshmi Limited and the management of the company has 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 Lakshmi Cement for their opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, sir.

Yes, Vaibhav, thank you. And good evening to all of you. Thanks for attending this call. Though you have already seen the results, but I'll just give you a very brief update on the industry as such and our view on that. So last quarter from December, demand has started improving. So demand is good in our operating markets. And so is the prices also are improving. Going forward, what I see, what we at JK Lakshmi see that this year, the growth is going to be around 4% to 5%, somewhere around that. And next year, FY '26 maybe around 6% to 7%. That is what we see. Although maybe because of the delayed CapEx release, all those pent-up demand is likely to come in next financial year. But we definitely see that next year is going to be good in terms of overall demand. And also, I think prices also will be better than what we have witnessed in this year during -- particularly during quarter 2, right? At JK Lakshim Cement, we are still focused on how we are going to improve our efficiencies in our operations and since that we keep on working on that, our focus is also there on renewable energy. So we are improving our renewable energy proportion in our overall energy requirements. So last quarter, it was at 48%. Distribution also, we are very focused as to where we operate and where we are going to sell that reflects in our lead in different quarters which we have achieved. Last quarter also, it was similar to the quarter 2, right? And on top line, supply chain and operational efficiency, that continuous endeavor is there to be amongst the best companies in terms of efficiency right? So this is what I think a very brief update. I think results you must have seen. We are open for questions. And maybe during that answering those questions, we'll have further conversation on some of the aspects which you want to know. Thank you so much.

[Operator Instructions] The first question is from the line of Pravin from Anandam Enterprises.

My question is regarding conveyor belt. What is the current status of conveyor belt at Durg Plant? And what is the expected time line to complete this project?

Yes. So the status, this is on the final stages of approval, right? So you know that taking lease from the PSUs or the government is a little bit tedious. So we are trying for that. And hopefully, during this current quarter, we'll be able to accomplish this approval.

Could you give me any approximate time line?

Very difficult because this is -- these are the things which is not perfectly in our control, right? But as I said that this is on the final stages of approval. So any time we may get it, but it's very difficult to give time line.

[Operator Instructions] The next question is from the line of Mangesh Bhadang from Centrum Broking.

Sir, my question is on the volume growth. You mentioned that December onwards volumes have picked up. And we have commissioned the Udaipur units a while back, but we have not seen too much of a volume uptick from there. So just wanted to understand from you what kind of volume growth can we envisage in FY '26? And when can we see optimum utilization of the Udaipur units?

So Udaipur Cement Works, I think we are going as per the plan only in terms of volume ramp-up. So last quarter, if you look at the capacity utilization was 57% along with a new unit, right? Which is as per the plan, which we had laid out. Going forward, definitely, we see, as I said, that next year is going to be good in terms of demand. So we'll achieve around somewhere around 65% of capacity utilization in FY '26 for Udaipur, right?

Sir, so that means have we slowed down the production from other units just because Udaipur has come up and because of which it is not getting reflected in the volume growth?

I'm not so clear. Can you repeat this one?

Sir, I'm saying we are operating at almost you said 45% from Udaipur right now, which was not there last year, but still we are showing growth of, say, 2%, 3% on volume. So is it that the production from the other units that we have has slowed down?

No, no, no. I think more or less, if you look at only JK Lakshmi Cement utilization is about 78%, right? And overall, it's 68%, okay? So October -- as I said that December onwards, demand has started improving. November was also quite sluggish, right? So if you look at overall capacity utilization of the industry also, I think we are a little better than others, okay? So overall at about 68%, 69%, Udaipur alone at 57% and JK Lakshmi at 78% to my mind, is really okay, in line with what others are doing.

Okay. Sir, one more question was on the CapEx for next year. What would be that number?

Yes. CapEx, we expect next year to be about, as I mentioned in my last call also, this year in 9 months period, we have already done about INR 250 crores, another INR 100 crores may come in the current quarter. And then thereafter about INR 1,000 crores in the next FY '26 and about INR 1,500 crores in FY '27.

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

First, could you share the numbers like what was the blended cement and trade share and premium share in this quarter?

Blended cement was at 65%, trade proportion was 58%.

Okay. And premium share and fuel cost?

Premium share on an overall volume basis, total trade, non-trade put together was at 11% and fuel was at INR 1.57 per 1,000 kilo.

INR 1.57, okay. And lead distance?

Sorry?

Lead distance, AFR and CC ratio?

381 was the lead, right?

Sorry how much? 380?

381 kilometers.

381, okay. And AFR?

AFR, I think, we have a different unit, we have different AFR. So at [ COD ], we are at 14%...

At [ COD ] it is 14%. Overall, it is 11%.

Overall, it is 11%. COD is at the highest, at 14%.

Okay. And sir, the CC ratio would be how much for Q3?

Sorry?

Cement-to-clinker ratio?

It's 1.45%.

And sir, these numbers you share is on a consol basis. Is this understanding right?

It is also the same figure. The figure which we are telling you is consol.

Consol, okay.

It is, unless you ask very specific about different companies, I think otherwise, we mention only consol.

That is okay, sir. That is why I'm saying it is all consol because that is how one should look at this company.

Yes, yes, I think...

And Udaipur, how much was the volume sold in Udaipur, sir, for the corresponding volumes for Udaipur?

So Udaipur volume was at...

8.3.

8.3.

This is total sales from Udaipur [ volume ]?

Yes.

Okay. So is it fair like Udaipur has driven most of the volume growth in this quarter?

Yes. You are right.

And sir, what is -- you mentioned the 9 months, we have done this INR 250 crores CapEx and another INR 100 crores CapEx. So are we running very short in terms of the -- this is the total CapEx size which we have spent, including maintenance and all, INR 250 crores?

Yes, yes. Yes, you're right.

Okay. So is this as per the plan? Or are there any slowdown deferment which is -- which you are witnessing there?

No, there is no slowdown or deferment which we are witnessing.

Okay. And the Phase 1 railway siding is already operational, East?

Yes.

Yes.

Okay. And lastly, in terms of the cost reduction programs, how much we have achieved and how much more we are looking at tangibly over next 1 year, say, by FY '26 end?

So I think this improvement or cost efficiency is an ongoing process. Plan we had, I think, more or less we have achieved, I would say, to the extent of about 75%, 80%. One of the major initiative, which was pending from our end, I had explained this to you before that we were -- we are working on brand rejuvenation so as to improve our price positioning. Exercise we have initiated from 15th of January. right? So and the idea is to improve price positioning. And perhaps I think that is going to give some good benefit in terms of at least improving our price positioning by INR 80 to INR 100 a tonne, right? So that is one major, I would say, item which we have worked upon and perhaps I think that is going to give us benefit going forward. Second renewable energy front, as I said in my opening remarks also, this is one area which we are very focused on based on our corporate responsibility also as to how we are going to be carbon net zero by 2047. So we are aggressively working on this. So this is another area which is going to give us benefit. Quantification, I think maybe in next call, I'll give you because some of the things still we are working on, right? [indiscernible] which we are working. And third, of course, is further working on supply chain efficiency, right? [ Efficiency ] that after merger of Udaipur and JK Lakshmi, right? So further synergy will come and that will benefit to an extent in logistics cost reduction also. Other items, which we keep on working on energy, on heat value, on TSR, of course, I think we have further room of further improving by a percentage or 2% with the capability which we have, right? So that we keep on working.

Okay. Sir, 2 small questions. One is how much was the RMC and non-cement revenue for this quarter? And second, the CapEx number for FY '25 in last call, you were targeting INR 900 crores, INR 500 crores at stand-alone, INR 200 crores at Udaipur and INR 200 crores for the Northeast project. Now which we are talking about is somewhere approx sharply lower, yes, INR 350 crores.

RMC revenue was INR 64 crores last quarter.

And noncement revenue total?

INR 135 crores.

INR 135 crores, and CapEx number, which was pegged at INR 700 crores in Q2 FY '25, why this is reducing to almost half, sir?

It is not reducing to half. It is -- I'm saying INR 1,000 crores for the next year.

No, no, that is, I agree, for FY '25. In last call, you had contemplated that you would be spending INR 700 crores. In fact, INR 900 crores you have guided, INR 500 crores at the stand-alone level and INR 200 crores each at Udaipur and Northeast projects. So what is -- basically, where are we going short on the expansions?

[indiscernible] is the stand-alone and about INR 300-odd crores would be -- that question was for the stand-alone so INR 500 crores is standalone and INR 300 crores is for the Udaipur.

So total, how much we are spending for this year ?

INR 800 crores.

INR 800 crore, okay. This explains. Okay. Great.

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

Sir, EBITDA margin on noncement revenue is 5% for this quarter?

No. It is lower than -- it's at 1%.

Okay. 1% only. Okay. Got it. So just to sir, again, reclarifying consol CapEx for FY '25 is INR 800 crores for FY '26 is INR 1,000-odd crores. And for FY '27 is how much?

It's about -- could be close to about INR 1,500 crores.

Okay, 1,500-odd crores. Okay. Got it. And in terms of the ongoing expansion, so Surat will be starting 1.35 million tonnes by March end?

So as we said before, we are commissioning it in 2 phases. First phase is going to get commissioned in the month of March itself or February end, which is about half of the capacity about 0.8 million tonnes. And another 0.7 million or rest of 0.6 million tonnes during around June 2025.

Okay. So this is getting delayed. So initial -- because this probably will be maybe 3 to 6 months earlier the time line was. So is there any specific reason why we are -- because this is just -- already we have a unit and we have to -- we will be adding there. So why there is a delay in this?

I think first phase was about to be commissioned during this time only. Yes, there is a delay, some delay, right? Because of some of the equipments which got delayed in terms of getting supplies at the site. So yes, a little bit of delays, but not much because anyway, I think we are hopeful that by this month end or maybe mid of March, I think 0.8 million tonnes will be up.

Okay. Got it. Second, just on the time line for the other clinker and 2 phases. So the clinker 2.3 million and 1.2 million and 1.2 million grinding at Durg and Prayagraj that will be starting by 1H of FY '27?

Yes. You're right.

And the second phase of 2.2 million tonne grinding units in FY '28?

Right.

Okay. And the Northeast one, last time we said INR 1,800 crores CapEx expansion. So that will be starting in FY '28?

Yes. It is what the time line we have given as of today.

Yes. And sir, if you can give us the gross standalone debt and consolidate and cash also, and net debt stand-alone and consol?

Stand-alone gross debt is INR 650 crores, INR 300 crores of cash so that is INR 350 crores on a stand-alone basis, net debt. On a consol basis, gross debt is INR 2,150 crores, INR 400 crores is the cash so INR 1,750 crores is the net debt on consol basis.

Got it. Second, so sir, in terms of the currently the prices for our core markets, if we compare with the third quarter average right now would be higher by how much?

So I would say, definitely about INR 100. INR 75 to INR 100.

And for this quarter, fourth quarter at a consol level broadly in terms of industry, I think, would be 6% to 8% kind of a growth likely to see. So for us in terms of the volume growth in the fourth quarter would be the similar at consol level?

So fourth quarter is -- our estimation is likely to grow at about 8%, you are right, 7% to 8%. And we are going to be [indiscernible].

Okay. And next year at a consol level for industry, you mentioned 6% to 7%. So will we be growing much better like 8% to 10% or mostly in line with the industry?

So I think we are going to do better because I think we have now Udaipur and Surat also in place. So our growth is going to be better than industry.

Okay. So sir, just a main -- in terms of the profitability because we have done a good thing on the costing front for this quarter, decent INR 350-odd per tonne Q-o-Q reduction. And now we are saying that we are looking at a kind of INR 75, INR100 or INR 80, INR 100 improvement on the pricing front, what we are trying to achieve on the costing front. So is it fair to say that easily we can see INR 800, INR 900 plus kind of EBITDA per tonne on a sustainable basis?

I think you were very quick in calculation. So perhaps I think -- see, we are in the market and the market is always dynamic, right? So maybe I think why we should limit ourselves to only INR 75 to INR 100. We can go even up to INR 200 or maybe INR 250 also. So I think some amount of volatility has to be there. So I think I would give a range. So I think you are right in that sense.

Got it. But we are not worried given the kind of the incremental supply that will be coming at industry level. So broader calculation is will be 100 million tonne plus capacity will be added in '26 and '27. So in terms of the fight for the market share, so either -- is it fair to say that if we can achieve the kind of a market share or maintain, then maybe one has to look at the lower prices and maybe a lower profitability or it could be vice versa?

See, if you look at capacity addition for the last maybe post-COVID you look at, the addition has been about 40 million to 45 million, 50 million tonnes every year. The capacity addition this year is about 6% to 7%. This year is about 7%. If demand is also going to be about 7%, 8%. So perhaps whatever capacity utilization we have at the pan-India industry level, that is going to be there. So on an overall basis, I think I do not see that it's going to be much demand and supply mismatch. It's going to be the same way as it was before. Yes, the regional imbalances, you may see wherever I think capacity is going to get added more, right? And maybe some of the area where I think some ramp-up is happening. So maybe regional level, you may see some kind of demand-supply mismatch. On an overall basis, I see I think it's going to be the same as it was before. And in our market, we are sure that I think we are going to retain our market share and it's not going to mismatch in demand and supply too much in our market where we operate.

[Operator Instructions] The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited.

Sir, what would be our closing capacity on a stand-alone basis in FY '26 and FY '27?

So see, FY '26, I think on a stand-alone basis, I think we'll be adding 1.35 million tonnes only, right? So this is what that is as far as FY '26 goes, okay? FY '27 maybe during quarter 2 or quarter 3, we'll be adding this Durg and Prayagraj, right? So for that particularly you can see about 2.5 million tonnes.

1.2 million into 2 .

2.5 million tonnes.

2.5 million, okay.

2.5 million [Technical Difficulty] about close to 4 million tonnes we'll be adding as per the plan we have today. Maybe if you can really take up some other projects also, this may go further.

[Operator Instructions] The next question is from the line of Nihar from IIFL Securities.

I hope you can hear me properly?

Yes.

Yes, yes, very much.

Great. Congratulations, sir. You had a very good set of numbers. I just had one question, sir. What can you tell me in terms of regional revenue split and regional volume split? What is it now? And once our capacity comes online, what do you expect that to be by, let's say, '26, '27?

You're talking about regional play, right?

Yes, yes, yes.

Yes. So whatever information we have, I think capacities are going to be added in East. So I think there, I think capacity is going to be added in East. And if you look at East demand also is the fastest-growing market. Even last quarter also, the demand was highest in case of East. Capacity is going to get added. I think dynamics is going to be more or less same, not different than what it was before. In the West, I think I do not see that till FY '27 is going to be a major change, whatever we can see today, right? It's going to be like that only. Maybe I think demand will go up and then maybe I think capacity utilization will go further up. So that will happen in tandem with the demand. But not much of a change which we see in West, the market where we operate, I'm talking, right? North, yes, capacities are on the annual for some of the players. But as you know that North is a place where from, I think supplies are going to some other markets, right? So there has always been excess capacity in North because North supplies to other markets like Central India to far North India to UP West and so on, right? So it's not going to be a major change in terms of a regional play and in terms of competitive intensity. Definitely, I think people have assets. So they'll try to utilize their assets to the extent possible. And to that extent, I think that might have some impact on -- temporary impact on pricing during low demand months. Otherwise, I think it's not going to have much change on the dynamics of demand and supply.

Okay. Got it. Noted, sir. So West you expect to be more or less as is. East is a growing market...

[Technical Difficulty] go up and so is the demand. So I think more or less, I think going to be [ at same level ].

[Operator Instructions] The next question is from the line of Shouvik Chakraborty from Dolat Capital.

Just wanted to understand the pricing scenario for the industry right now, maybe from the exit of January, I mean, considering the recent hikes that we had seen from the end of December, maybe you can you just help me to understand the dynamics of the pricing front?

So pricing definitely goes along with the demand. And if demand is good, then prices are going to get reinforced. So that is for sure. And that is what we have seen in case of December and January, whatever pricing movement has happened because of the support of the demand, right? And at least in the next 2 quarters, definitely, I see that demand is going to be good. And hence, prices are also going to be reasonably all right, okay? Yes, during monsoon, there is -- as I said before, just before this -- your question that during lean demand, yes, there could be some pressure on pricing. But I think if demand is good, then prices are going to be in alignment with that. And that applies to all markets wherever we operate. So you're not going to get something which is unusual. This is what I mean. [ This is the kind of Demand and supply ] equation and hence the pricing is one of the outcomes of that.

[Operator Instructions] The next question is from the line of Rajesh Ravi from HDFC Securities. Mr. Ravi, I have unmuted your line.

Am I audible?

yes, yes, very much, Mr. Rajesh. Go ahead.

Sir, you mentioned during -- when premium cement volume overall 11% of the volume -- total sales, which I adjust for trade volume, this would work out to be 19%. In the preceding quarters, this number was maintained at between 25% to 30%. So is there any sharp change in sales strategy? Or how come this premium cement as a percentage of trade come down so sharply?

I think our [ premiums here ] in case of East is not very good. And as I said that we are also working on streamlining our brand and changing the positioning also, right? So that has some impact on this. Yes, your observation is right. But perhaps, I think in coming quarter, we are going to go back to the same level because what we have done is -- in East also, we have done some kind of brand restructuring because we have Pro+ as a premium product here in this part of India, and [ West part ], there we have the base product. So some kind of realignment we have done so that pan-India, we have one [ brand ] architecture and similar kind of value proposition for different brands. So this is a temporary thing, I would say.

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

So my question is on Sirohi. I believe the limestone there is going to expire in 2030. So what's the plan there? Like how do you plan to kind of manage the transition when it happens?

Yes. So I think auction is due in the year 2030. And this is the case for Sirohi and this is the case for some other locations for other companies as well, right? So definitely -- I think we definitely want to retain this during re-auction also for sure. That may entail to kind of increasing cost a bit because in the auction, what will happen, I think that we need to see. So this is what the case is. And parallelly, we are also trying if we can -- because we do have that limestone reserve at other places. I think Udaipur and Nagaur also, we have taken that, though I think we are in the process of kind of executing all those initial stages of land acquisition, environment clearance and so on and so forth. So that is the backup, but that may not work on a long-term basis. But we are, I think, reasonably all right that mines -- when it goes for reauction, we'll definitely try to retain it.

But just trying to understand in case, let's say, the mine premium goes very high or for whatever reason you just don't get the mine, then like what is the backup plan for the plant then?

Backup, as I said, it's not all about cost benefit. So premium which we are likely to pay for reauction versus maybe bringing limestone from some other place. So that cost analysis has to be done, right? Because we do have source -- limestone source from other locations, which is not quite far.

Okay. But which mine would that be like...

Udaipur. Udaipur is the nearest one.

Okay. From there, okay. Sure. And also on generally, the outlook on pricing, I believe it's bottomed out after the monsoon, but still like it's been a bit up and down in the last couple of months as well. So what is generally your expectation on the industry competitive intensity and the pricing outlook?

So competitive intensity, yes, of course, I think it's going to be there, and it was there before also. If demand supports, then I think prices are not going to see that level of bottoming up, which we saw in the quarter 2, right? If demand supports, then definitely, I think it's going to be reasonably all right and round about, I would say. So I'm quite optimistic that since demand is likely to be good in the coming year, FY '26, which is about 7% to 8%, prices also are going to be reasonably all right. Because see, quarter 1, quarter 2 was exceptional this year because of general election followed by monsoon, which is prolonged a little longer and heavy monsoon in some of the areas where we operate, right? So that impacted. But in the coming year, I think there is no such kind of major events which are going to happen, which we can foresee today, right? Demand is likely to be good. If you look at the budget, budget also is the CapEx of about INR 11 lakh crores, INR 11.21 lakh crores, and out of that, half of that is going to be in areas where cement is directly related, indirectly I think everywhere, but directly related. Suppose about INR 170,000 crores in national highway, metro about INR 35,000 crores and urban housing, rural housing, 120 additional airport destinations. So I think all these projects which did not take off or some of the ongoing projects which did not take that [ speed ] is going to really be on the fast track in coming months and coming years. So demand is going to be good and that will support pricing. So I'm reasonably confident that pricing is going to be better than what we have witnessed in quarter 1 -- quarter 2 particularly.

Sure. Understood. And lastly, on cost savings, are there any projects going on for you which will commission maybe in some time?

Sorry, I missed something. Sorry, I missed you.

No, I was asking on cost savings side. Are there any projects which we are doing, either AFR or HR or anything like that, which will commission and give you some savings in the next year or so?

As I said, some gentlemen asked this question. So one is, of course, renewable energy, which we are working on, further improving our renewable energy proportion part of our portfolio. This is one. So that will give some savings. Second, we are -- we'll be ramping up our TSR at Udaipur because we have already commissioned that AFR capability, and we'll try to take this TSR up at that place. In Sirohi also, we definitely see a percentage or 2% further we can improve with the given capability which we have. So that is another headroom which we have, and these are the major items, I would say, other than all those ongoing things. We are working on fixed cost also, fixed cost reduction wherever we see opportunity to reduce that thing. So we have taken some action in the past. We'll take some action in coming months and years also. So that is another thing which we are working on. And the supply chain efficiency further maybe because now we have railway at Durg, then the railway wagon loading at Udaipur. So that is going to benefit us in further improving our supply chain efficiency, being able to serve our customer better and also reduce our distribution cost. So these are the major items, I would say.

Got it. And if I may, just the last question. on Udaipur, what is the expected time line for the completion of the merger process?

I think jobs are almost over. This wagon loading -- the cement wagon loading is now getting commissioned. We have already started commissioning that. Apart from that, all minor jobs like AFR [ set ] and some raw material [ set ] and things like that, we are working on that. Otherwise, all the major jobs are over.

Sir, I was asking about the Udaipur merger, if it was already discussed, I missed it, but what is the time line of completion of the merger of Udaipur Cement into JK Lakshmi?

Yes. merger, we already have the stock exchange SEBI approval. We have approved the LCLT and that may take about 8, 9 months.

Okay. So maybe end of this calendar, maybe roughly...

Yes, yes. We're targeting that.

[Operator Instructions] Ladies and gentlemen, I now hand the conference over to Mr. Vaibhav Agarwal for closing comments. Over to you, sir.

Yes. Sir, I had a question for Arun, sir. Last time on the call, Arun sir did mention that in the next call, he will be coming back with some new strategy regarding branding and sort of something on that front. So anything, Arun sir, which you would like to throw some light on this call [indiscernible]?

Vaibhav, I told one of the gentlemen because the brand rejuvenation, which I had promised before that we are working. So that has come to execution level now. So we have launched a new brand called JK Lakshmi Green+. So we have launched on 14th of January this year, and the initial feedback from the market is very encouraging. So one, I think our commitment towards greener product and greener environment. So that was one of the motives. Second was also to improve the positioning of our brand, which we have done. And we definitely see that now this brand rejuvenation exercise and brand repositioning is going to benefit us in many ways. One, of course, our very strong commitment towards greener product, greener environment with this Green+. And second, also in terms of improving pricing positioning, that will kind of further give benefit in terms of our bottom line. So that we have done. And some of the brand restructuring because there were different brands in different geographies with different kind of positioning and value proposition, that also we have aligned in all our markets. So pan-India, we have now across one brand architecture and each and every brand has similar kind of value proposition for different markets all across India. So it's quite a mammoth exercise. And we are almost into about 1.5 months into this and the encouraging feedback we are getting from the market and our customers. So hopefully, I think things are going to be turning out well for us as far as our objective [ goes ].

Right, sir. Sir, also one more question I wanted to ask you specifically that over the last couple of quarters, especially our numbers have been a little volatile versus relative to what our peers have reported. So since you are taking now so much of initiatives regarding branding and several other stuff which you mentioned on the call. So relative to that, from here on, where do you see your numbers getting better? I'm ignoring the pricing aspect. But on a relative basis versus to peers, so do you think so that in the next couple of quarters, you can come at par to industry leaders in terms of profitability or you will still be away like INR 100, INR 200. And if that number will sustain as per your assessment at that gap only or it will fluctuate like the way it has been in the recent past?

So we have definitely bridged that gap, Vaibhav. You know that and all of you because you track each and every company very closely. So we have done a substantial job over the last couple of years. There's no doubt about it, and that is also reflecting in the gap which we have with our peer group. Now one thing I would definitely want to request all of you that when you compare our result with others, I think let's compare like-to-like, gray cement versus gray cement. Based on your input only, we have also done gray versus gray comparison because if you compare apple with banana, then I think it's not going to be good. So we do not have any incentive with us. We do not have other than gray cement with us, right? I think based on those parameters, all of you should be -- and all of you are learned people and kind of doing a detailed analysis. I think I would really love to really see that gray versus gray and like-to-like comparison, where are we? We have done our own calculation. But when I see, I think I'm not far behind. I'm absolutely not far behind. I'm as good as what you call that best in the industry. And if you meet one-to-one to me, I'll explain you why I'm saying so and what kind of analysis I have done. And similar kind of things, if you see coming from you also, that will really help us and give some insight as to where we need to further work on, right? Otherwise, if you keep on comparing banana to apple, I think this is not fair.

Right, sir. We'll discuss that in person, sir. I look forward to that. Thank you very much, sir. And on behalf of PhillipCapital India Private Limited, we'd like to thank the management of JK Lakshmi Cement for this call and also many thanks to the participants for joining the call. Thank you very much, sir. We now conclude the call. Thank you.

Thank you.

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