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

Ladies and gentlemen, good day, and welcome to JK Lakshmi Cement Quarter and Year Ended 31st March 2025 Earnings Conference Call 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, Mr. Agarwal.

Yes. Thank you, Michelle. Good evening, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q4 and 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 Limted. 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 Limited 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 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 Lakshmi 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 Lakshmi Cement for their opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, sir.

Yes. Thanks, Vaibhav, and good afternoon to all of you. You must have seen the result -- our quarter 4 results and the results for the whole year. So before we take questions and answer, just to give you a very brief about how things have really progressed during this entire year. As you know, industry-wise, quarter 1, quarter 2 was not good because of the reasons all of us know, postelection and then followed by cyclicity, which we have in the cement industry. Things started improving in terms of demand and also in pricing quarter 3, latter part quarter 3 onwards. And as we speak today, I think demand-wise, yes, things are better, better than quarter 2, better than quarter 1 even. And going forward also, we see that this year, growth is going to be about 6.5% to 7%, though our plan is to grow higher than the industry growth this year. So this is on a kind of macro situation of the industry. If you look at other drivers of demand, I think post general election, yes, now traction is increasing in terms of the CapExes, which government has announced during this year budget. And in fact, we also see traction in other segments like housing, be it rural or urban and even in industrial and commercial. So demand drivers also look to be better. Initial estimation was that demand will grow by at least 7.5 to 8 percentage rate. But what we estimate is going to be about 6% to 7% or 6.5% to 7%. That is what we see. As an organization, as I said before, I think we have been working on improving efficiency internally, of course, on top line part of it and also the cost base for the cost line, which we have. On top line, as I had mentioned during last quarter call also that brand rejuvenation exercise, now we have completed. And the initial indication or the feedback which we have from the market is quite encouraging. The Green+ product, which we have launched has been received quite well in all markets where we operate. So this is a good news for the organization. And this brand rejuvenation exercise was all about kind of coming up with a brand with a new value proposition, new look and feel, which really kind of amenable to customers' requirement. And our premium product also is doing quite well. So Pro+ remains to be our flag bearer in terms of our product or the brand proposition to our customers. So Pro+ has been doing quite well, and our focus also was there to improve proportion of premium cement in our overall portfolio. Similarly, I think our effort also has been to improve on trade part of it. But as you know, that because of this infra growth and other drivers also growing a little fast. So non-trade is going to be quite substantial, and we don't want to lose that opportunity also. But nevertheless, I think our endeavor was also to improve upon trade percentage and last quarter has been good for us in terms of our trade volume, which stands at about 60%. So this is on top line part of it, a couple of things which we have done. And on other efficiency part, we have been working on renewable energy, improving our thermal substitution rate, working on supply chain efficiency and particularly on upstream and downstream logistics. So all those things we have been working. And perhaps I think the way we are progressing, I think, I'm quite happy that our direction is all right. Now definitely, those things are going to really impact us in terms of the value at the bottom line. So this is what I think I just wanted to give you a brief. Now we are open for question and answer. You have already seen your results -- our results, so we can take questions whatever you have. Thank you.

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

I just wanted to understand the status on the expansion. Like first thing is have equipment orders been placed for the clink and the griding units?

So the first part of expansion, I think as we told last time that Surat, we are doubling our capacity by another 1.35 million tonnes. The first phase, we are now taking trials, right? And soon we are going to commission. And other projects, which we mentioned that we are expanding our Durg capacity, putting up clinkering unit up to [Technical Difficulty] and grinding facility at Durg. And along with that, grinding stations at Prayagraj and Madhubani in Bihar. So everywhere, I think progress has been there. So in case of Prayagraj and Madhubani, we have already acquired land and we have started the process like applying for TOR and then public hearing planning. So all those things are happening. In case of Durg, we have already had this public hearing in case of plant and mines. So that has already been done. Now we are waiting for environmental clearance from MoEF, which is expected by any moment now. In terms of ordering of equipment and other things, we have already finalized the scope. We have already floated the tender. But as far as ordering of equipment goes, that has not yet been done.

So soon enough, will the orders be placed?

Yes, we'll update you, I think, as soon as that happens. So I think we are on track in terms of our activity plan, which we have, right? Sequentially, we are moving. So as I told you, the major hurdle in case of going outside our existing premises, that is land. So that we have been successfully kind of acquired land in these two places where we are going to put up our grinding station.

What is the latest time line for these expansions?

So in case of Durg, our time line is '27, FY '27, right? So FY '27, this is what the plan is.

Okay. And some of the greenfield grinding units will come a bit later is what I understand.

Yes. So I think we gave you that already. So greenfield is going to come even before, right? So this is what the plan is. But in case of Madhubani, we already had this public in a hearing, right? In case of Prayagraj, we already applied for TOR. Now we'll have the next step is in public hearing. So those activities will happen.

Sure. So assuming that Durg comes at year-end, FY '27 end. So in that case, your -- won't you have clinker capacity constraints, I believe we will be at 88% or so utilization on clinker right now?

So we have some excess capacity with respect to our grinding capability in it. So -- but not much, right? So whatever we have, I think we can definitely kind of commission one grinding station to start with.

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

First, the housekeeping questions. What is the RMC in the non-cement revenues for the quarter? And also, how much was the margin for the non-cement revenue?

The INR 151 crores non-cement revenue, right?

Okay. And RMC?

RMC is INR 75 crores.

Okay. And sir, what was the margin for the non-trade INR 151 crores, EBITDA margin on the same?

3%.

3%. Okay. Also, what was the fuel cost per kilo cal and the green power consumption trade and nontrade sales? Trade, you mentioned 60%.

So 60%, I already mentioned. So last quarter fuel cost, you are asking no, so it's...

Fuel cost in Q4, yes.

1.53% [indiscernible] consolidated 1.53%.

1.53%. And blended cement share was how much, sir? And green power?

65.

65. And green power consol, can you mention it?

Green power is 50%.

6-0?

5-0, 50%.

And two more questions, sir. If I look at your realization sequentially, it is up by 7%. So is there any change in the product mix or the regional sales mix because I see there is a significant jump even in your freight cost versus INR 1,130-odd. This is almost up by INR 80, INR 90 Q-on-Q. So was there any geo mix, which is why your realization and freight costs both are higher?

So as I said that because of demand improvement, I think price is also better in some geographies, little far from our plant because that was making sense to go because of the margin was better, right? So that is one. But no, there is no significant change in our geo mix as such, right?

So why was the freight cost so higher [indiscernible], when diesel prices and all have been -- you mentioned that there was some increase in lead distance. Basically, how much was the lead distance then?

Yes. So lead was 393 kilometers last quarter. And as you know that we had an outsourced grinding station in UP East Amethi, right? So we discontinued that and we started supplying those markets from our existing plants. So that is why lead has gone up because we are serving those markets. Anyway, we are going to come in that market, Prayagraj is going to come maybe 1 year down the line, right, 1 year, 1.5 years down the line. So we are still continuing with that market, and that supplies are going from our existing plants, and that is why lead has also gone up to an extent.

Okay. So sequentially from 380 to 393 kilometers that is around 10, 12 kilometers there was a lead increase?

10 kilometers sequentially.

Yes. 10 kilometers sequentially. Okay. So this sequential improvement, I'm just coming back to this realization. If you could give some more color, was it like earlier last quarter, the discount structure was higher for you and this quarter? -- because what we understand North prices in general have increased by 3% to 4%, East has increased by 5% to 7%, but in East, your volume share is much lower on a total sales mix basis. And even in Gujarat market, where you are heavy, that would also have same, 3% to 4% increase. So how come your reported realization sequentially is up by 7%?

This is what it is in front of you. So there is no change in discount, right? So discount, we cannot change in between because you commit your dealers for the discount for the whole year. So last quarter, you cannot change [indiscernible]. This is only about the price increases happen because of the demand improvement in various geographies, right? Maybe I think we have optimized better, like you talked about East, right? East, our presence is very limited. We are there in Chhattisgarh and neighboring states only, right? And maybe other players are there everywhere. So we have done better geo mix and with support of price increase that has given us the realization improvement. But there [indiscernible] in the discount.

Great. So now assuming what we understand that prices have either flattish or marginally better in Q1 versus Q4. So your reported realization in that sense should be flattish or improve in line with the market if this is a normal realization in Q4?

Sorry [indiscernible] Q1 of this year, right?

No, no, no, sir. Q4 versus Q1, given that prices have sequentially improved or are flattish, should we expect that your realization should also move in line that way, assuming that there are no one-offs or any different reporting in Q4 numbers?

I don't know why you are mentioning one-off. I'm not too sure about it. But what I know is, I think the way industry will improve will go along with that. It's upward or downward, whatever.

Maybe if you could give some color on sequential, which market, how much was price increase for you on a like-to-like basis broadly like North, Gujarat and East, 3 key markets. What was the price increase Q-on-Q for you broadly? That would be helpful.

I think I'll give you maybe after this call. I do not have breakup. Roughly, I think to give [indiscernible] breakup also geography-wise, if you want.

Great. That will be quite helpful. And lastly, on the CapEx front, you mentioned that the Durg plant is expected. Did I hear correctly that Durg plant would get commissioned by end of FY '27, clinker unit?

I would say quarter 3, you can take quarter 3 around.

Given that, East is still awaited, equipment ordering is still awaited by the time it is going for trial runs and all, would it not be by end of FY '27?

I think quarter 3, means a month here and there, that happens, okay? But the way I see today, I think it looks like quarter 3, we'll be able to commission.

And sir, this railway siding and conveyor belt projects, what are the status on that? And what is the total CapEx for FY '26 and '27 one should look at?

Siding, we have already done the first part. Now some deposits have to be made there for the railways and the BSP. So on that basis, we -- in this year, last year, actual CapEx was about INR 300 crores as far as JK Lakshmi is concerned. And then about INR 250 crores for the UCWL remaining was spent. So INR 300 crores plus INR 250 crores, INR 550 crores was the total CapEx, including the -- and in Northeast, we did about INR 50 crores. As far as next year is concerned, we are expecting a CapEx of about INR 1,100 crores in JK Lakshmi, including for the Durg expansion and INR 150 crores for the Northeast project and maybe some small INR 40 crores, INR 50 crores of payment left for the Udaipur. So maybe all taken together, including the subsidy about INR 1,300 crores.

Okay. This would include maintenance and all?

Yes, yes, this includes that.

Okay. And for '27, how much would be pending, sir? How much would you expect?

We expect INR 1,000 crores for JK Lakshmi, INR 1,000 crores and INR 800 crores for the Northeast, that's all INR 1,800 crores would be there.

INR 1,800 crores. Okay. And INR 1,300 crores for FY '26. And for [indiscernible] sir, what is your status?

[indiscernible]

[indiscernible] in Q4?

The last leg, we have been saying that for last 2 quarters, some final approval from the ministry is required. The Board, the BSE has already recommended. So it should come any moment that we have been saying, I know for the last 1 or 2 quarters. But hopefully, it should come and thereafter almost 8, 9 months to get it commissioned. It will require a CapEx of about INR 70 crores, INR 80 crores additional from whatever has already been incurred, which is included in the figure which I mentioned to you.

And this year, you're expecting this to be finally operational?

By March of '26, it should be in place, hopefully, if everything falls in place the way we have been working on that.

[Operator Instructions] the next question is from the line of Prateek Kumar from Jefferies.

Congrats for good results. My first question is on your Northeast project. Can you also update us on status there? And what are the time lines for the rollout of capacity in that market?

Northeast project is not going as per the plan. That is slightly delayed one. So it is taking then that's a different style of working there. So we did not envisage that in the beginning. So there are hiccups, I would say, but it should be slightly delayed, I must say, as we speak, I would say that's slightly delayed, maybe by about 7 or 8 months because we expected -- when we acquired this opportunity, we expected the land to be in place within 3 months. So it almost took us almost a year to get the land. Having got the land, then we have moved for the environmental clearance and all that, whatever needs to be done. There are some local issues, some political issues. So it is getting delayed to put it in simple words. We are off by about 7, 8 months.

So is it commissioning by FY '29 or something? [indiscernible] an expectation?

Actual -- maybe next con call, we should be able to give the actual -- so that once that environmental clearance and local issues are settled and that takes care, then we should have a clear visibility. I don't want to commit a time line we were expecting something. I must tell you that there is slightly delayed there.

Okay. And regarding the quarterly performance, appears like much more volatile versus some of the industry peers. Is this related to some cost attribution between the quarters or the top line attribution related to incentives, et cetera, which explains the quarterly volatility and performance versus peers?

No, there is no such as such quarterly this thing. It's based on the actual sales which happens and the booking of the expenses, which takes place. We don't shift any expense or for that matter, any incentive. We don't get -- frankly speaking, as of now, we don't have any incentives in any of the markets or the plants where we operate or states where we operate. Udaipur will start getting the incentive maybe from next year. So that will get factored in. So there's no that quarter shift -- quarter-wise shift is not there for us as far as we are concerned.

And last question on industry pricing. How is the pricing behaving in your markets since [indiscernible] exit?

Come again? Market?

So how is the pricing trend in markets -- your markets since [indiscernible] exit? And is there -- I mean, maybe in your markets, monsoons have not arrived, but in some other markets arrived. So is there any impact of that on, I don't know, in case your markets?

Prices are almost flattish. Demand is, yes, better, but prices have not gone up, right? It's almost flat in all the geographies where we operate, like East, part of West and North, right? And what I see, I think prices are going to be range amount till about definitely June or July because monsoon sets in, in this part of India north a little latter, right? So maybe till about June, July, things are going to be better in terms of demand and prices also will follow the same line. This is what I see.

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

Congratulations on a good set of numbers. Sir, a couple of questions. First clarification 1.35 million tonnes Surat expansion. So how much it will be -- it was supposed to come in two parts. So the entire 1.35 will come by June?

No. I think it's going to be in 2 parts. So June and September, this is what we said, right? So June, we'll be commissioning half of it and around September remainder part of it.

Okay. And second, Durg one. So just to clarify again, last time we said 2.3 million tonne clinker and 1.2 million tonne grinding at Durg and 1.2 million grinding at Prayagraj. So 2.4 million tonne grinding and 2.3 clinker will be by September. But now this will be coming by the third quarter of FY '27 and the second phase to commission in FY '28. Is it right?

Yes.

Okay. Okay. Got it. And second on a couple of data points. So first, if you can help us in terms of the consol clinker sale in the third quarter of FY '25, fourth quarter of FY '25 and full year of FY '24.

You can send the mail, we'll respond on mail on this question [indiscernible] from the data.

Okay. And premium sir, for this quarter was at consol level was how much?

25%.

25% Okay. And the CC ratio for this quarter is similar, 1.45%?

1.44%.

1.44%. Okay. And so sir, just again clarifying given what we are saying that the prices currently are stable, there is the actual increase what has happened in the last quarter, if I remove the non-cement revenue, it is 8% Q-o-Q increase in the realization. So that likely to continue? And is there any further cost reduction from the Q-o-Q front? So just trying to understand that given the current profitability EBITDA per tonne, will it continue in the Q1 onwards?

So if you take quarter 4 exit price, exit I'm talking, then from there, I think prices are flattish. Prices have not gone up. And this is true for all geographies where we operate. So this is one, right? And next part, what you asked?

On the cost front, is there anything that are we looking at in the Q1? Obviously, the operating leverage, obviously, the volume would be slightly lower versus Q4 in the Q1. So that we understand that some negative operating leverage. Apart from that, there is as such no one-off in the costing front also. So broadly, the EBITDA per tonne that INR 976-odd likely to be there, at least in the Q1, then obviously, we'll see the pricing, how it moves.

Yes. So I think the prices are flattish. Cost, yes, I think it's not going to be -- we see a substantial increase in cost anywhere, right, okay? Yes, operating leverage will a little bit go down because of the lower volume in quarter. So you are right, I think you picked up the right thing.

Yes. And structurally in next 1 year in terms of -- or maybe 2 years, in terms of the cost reduction, how much more one can look at in terms of whatever we are saying the RE power green share? There also, if you can mention from 50% where we can go in FY '26 and whatever the logistic cost and all this, how much more one can look at the per tonne cost reduction?

As I said during last quarter also that in 12 to 18 months' time, the plan is to reduce cost by about INR 100 to INR 120, okay? And that is basically going to come from, one, of course, increase in renewable energy proportion. So we have already reached 50%. And by end of this year, I think we'll reach somewhere around 52% -- around 53% kind of renewable energy proportion. So this is top one lever which we have. Second, continuously, we are working on thermal substitution. So all our plants. Udaipur is a little bit on lower side as of today because we have just started our AFR facility at Udaipur. So that is going to give some benefit. All other 2 integrated units, we are already beyond 12%, 13%, right? So that will maintain or even improve by a percentage. So that is going to be some kind of saving out of that also, so AFR. Third, of course, I think logistics, Rajesh was asking this increase in our lead by 12 kilometers. We definitely will try to bring it back to about 380 level. So maybe 10 kilometer of reduction we see there as well. And fourth thing, we talked about that Green+ brand, which we have launched. So we have got a good traction in the market. And probably also, I think that will give us some improvement in price positioning improvement in different markets. So these are the major, I would say, levers apart from all those efficiency parameters like heat value, specific energy and other things, we keep on working. That is a continuous process that will go on. So these are the major drivers, I would say, of this INR 100 to INR 120 in the next 12 to 18 months.

Got it. Sir, lastly, sir, this noncurrent financial asset, which has increased from INR 60 crores to INR 66-odd crores in 1H and FY '24 to INR 409 crores in FY '25, what is this?

Sorry, come again. Can you repeat your question, please?

Noncurrent financial asset as on FY '25 is INR 409 crores versus in 1H and FY '24, it was INR 60 crores to INR 66-odd crores. So what is -- why a sharp increase in this?

On the stand-alone or you are talking of consol?

Consol sir, everything is on consol.

Noncurrent financial asset [indiscernible]. Just a second. I'll respond to [indiscernible]. Yes, please. Now you can pose a noncurrent financial assets from where -- what is the figure you're talking of? Can you repeat?

INR 408.9 crores, which is a part of others. So it is a third number.

Fixed deposit with banks of about INR 300 crores.

Okay. So as on March, the total cash...

If it is more than -- just hold on. If it is more than 1-year deposit, then it has to be in the noncurrent. But it is fixed deposit with banks that has gone up from INR 60 crores to INR 408 crores, primarily consists of the bank fixed deposits for more than 1 year.

So total cash and cash equivalent as on March is how much and the net debt is how much?

Yes. That I'll tell you. INR 1,150 crores.

INR 1,150 crores is consol cash?

Yes, yes.

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

Part of my questions you answered in Shravan's queries. Just wanted to check on the cost saving projects again. You mentioned that you will be able to reduce -- increase the green share slightly. But given that on an average for full year, you are already at 48% in FY '24 -- FY '25, sorry. And this would -- for full year, you're looking this to increase to 52%, right?

Right.

So there incrementally, savings may not be large. And even on your freight lead distance, you averaged at 380 kilometers in FY '25. So even if you reduce by 10 kilometers, this would save another, say, INR 30 to INR 40. So between these 2 programs, maybe INR 50 savings should come up. And CSR, how are you looking at? What was it for full year? And how much you are looking this to go on an average for FY '26?

On an average, we look at about 12% to 13%, okay 12% to 13%. So average, we are looking at 12% for this year, right? This is what we are looking at. And current year, the year which has gone by, it was at about around 9%. 6% and would have -- 6% and 12% [indiscernible]. So 9% to 12%. That is what 3% TSR improvement. This is what we see as of today.

And this fuel cost, 1.53, are you looking this to remain stable in Q1 versus Q4? Or because of the recent spike in -- during Q4, we have seen a spike in pet coke prices. So would that inflate your this Q-on-Q consumption cost, fuel -- blended fuel cost?

Only. At least this quarter, I think it's going to be around that.

I'm sorry, I missed that.

This quarter, quarter 1 is going to be around quarter 4 only.

Okay. Okay. And thereafter, do you see this number to be stable given the current prices, current level of prices? And what was the pet coke mix in your fuel, sir?

Pet coke prices that has been quite volatile, right? So what we do whenever we have opportunity, we kind of try to buy at a lower cost. This is what we do. So as we see today, I think quarter 1, quarter 2, I think it's going to be around this only, not much increase in this.

Okay. Okay. And this long-term -- sorry, FD is booked under noncurrent loans and advances, it is around INR 300 crores or INR 350 crores you mentioned?

INR 350 crores.

INR 350 crores. Perfect, this is what I was thinking.

[Operator Instructions] The next question is from the line of Mudit Agarwal from Motilal Oswal Financial Services.

Sir, just wanted to understand how much volume is coming from the outsourced grinding unit? Is it still -- we have some arrangements for that or the overall volume is pure [indiscernible] in the UC as well?

Total volume [indiscernible], nothing is coming from [indiscernible]. Nothing is coming from the outsourced grinding.

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

And my question pertains to, sir, you spoke about cost savings of about INR 100 to INR 120 per tonne. So how much we have achieved during this quarter and how much we'll be achieving in FY '26 and FY '27.

So this INR 100 to INR 120, I mentioned about combination of FY '26, FY '27, 12 to 18 months' time. And the combination of levers, I'll just once again, Uttam, we tell you that one, of course, is a new brand, which we have launched to improve in price positioning, the Green+, which we have launched recently. This is one. Second, further premiumization. We were at 25% last quarter. We want to take it further, second. Third was a reduction in lead going back to about 380 kilometers average, right? And some of the actions and planned, one was on renewable energy going from 48% to about 52% and TSR improvement of about 3 to 4 percentage points. So this is what I think some actions which we have put in place, right? And if you ask me that last quarter saving, I think all these parameters are gradually improving. So let's say, trade sales was 50% last quarter. We ideally want to maintain this at this level, right? So that also gives some kind of operating leverage for us. So combining all these things, I think really pointing out how much saving out of these actions in quarter 4 is a little difficult because some of the drivers are overlapping. I can give you that, but you have to give me some time. But what we see is that directionally, if at all, we are okay. So if at all, my TSR is improving, renewable power is going up, my lead is kind of going down, right, premium is going up. So that way, I think we can tell you that how much we have done in last quarter.

Okay. Okay, sir. And sir, any plan to put up -- any new plan to put a plant in Gujarat because you had got some limestone mine over there?

What -- come again, please? I think I didn't hear you properly.

We have got those limestone mines at Kachchh. So that option that will come. We are presently in the process of acquiring land. So it is 3, 4 years away still.

The next question is from the line of Rajesh Ravi from HDFC Securities.

Sir, just one follow-up question. Any volume guidance for FY '26, please? And would be like how -- what is the ramp-up you are looking at Udaipur?

So volume guidance, as I said that the industry at, let's say, about 6%, 6.5%. We are looking at 10% growth the list this year volume.

10% growth. Okay. And sir, Udaipur volume would be consol minus stand-alone for Q4?

Udaipur volume? Sorry?

For Udaipur Cement, the volume can be derived from consol minus stand-alone volume numbers, which you have given in the press release?

Yes, yes.

Ladies and gentlemen, this will be the last question for today, which is from the line of Shravan Shah from Dolat Capital.

Yes. Two small clarifications, sir, for Northeast that Agrani Cement, we were supposed to pay a INR 200-odd crores by March. So have we paid that?

No, we have not paid that. We never said it is to be paid by March. We said it will be linked to certain, I think, June. So that has not been paid. We have -- out of INR 325 crores consideration, we have paid initially to start with INR 125 crores, 5 crores was additionally paid. So as of now, we have paid INR 30 crores -- INR 130 crores, I mean. And nothing beyond that. And in response to some earlier question, I had mentioned that there are certain issues in that project because of the style of working, which we are not used to working in that zone or area. So there are issues. So it is slightly getting delayed. There are local issues, some political issues, and we are putting our foot down at the cost of even they are threatening to abandon the project and all that. But it is getting delayed that much as of now, we can say, but we are not going to dance to their tunes the way the style of working is there, which to our surprise, we found is not the style where we are used to operate in other states. So it's taking time, and they are threatening we are putting our foot down and all that.

Okay. But the original plan in terms of the 1 million tonne clinker and 1.5 million for grinding with a CapEx of INR 1,800 crores, that remains intact? Or there is a possibility that this will also further go up?

No, this will not change. The issue are the initial hiccups, which we are facing at the local levels. That's the issue. Once those local level things are sorted out, then obviously, we will follow the path which we had initially envisaged ourselves for this project. Initial local and political issues at that level is happening. And we are taking a tough stand not adhering to their demands and whatever are their local issues. That's why I said it is getting delayed. Land we have acquired, there are some encroachment. All those local issues is taking slightly longer time than what we had envisaged. They are threatening us. We are putting our foot down, not yielding to their demands and all that. So things are not moving the way we want it, the way we envisage. So -- and that's the reason as to why whatever consideration, it was good that we did not pay the entire consideration upfront entire INR 325. Otherwise, that would have got stuck up. But as of now to start with, we have paid only INR 125, INR 130-odd and have linked it to the achievement of those milestones. That's -- we are taking a tough stand on that and not yielding to their pressures.

Got it. Got it. And sir, just a broader perspective. So let's assume, even if we add -- so currently 16.5 million tonnes, so that Surat 1.35, then this 4.6 Durg. So everything if we add, it would be close to 22.5 million-odd tonnes that we will be there by FY '28. We are saying that we will be reaching a 30 million tonne by FY '30. So additional 7.5 million tonnes. So even if this Northeast maybe 1.5 million tonnes by FY '29, if comes, then also still we need a 6 million tonne. So we have to start spending maybe from next year onwards. So is there a possibility that this 30 million tonne target can be moved to maybe 31 million, 32 million FY '31, '32 or any ballpark the range in terms of the CapEx would be the similar what right now we are doing INR 600 crores, INR 700-odd crores per million tonnes. That's the way one can look at?

We also have 2 greenfield plants, limestone mines at Nagor and Kutch, as I mentioned in response to some earlier question on Gujarat mines. So we would be -- we are hopeful that they will be in place by then. So it's too early to give up a deadline of 30 million by '30. Then there are other inorganic opportunities which keep coming up. So obviously, our target remains to reach 30 million by '30. Even if Northeast, as I mentioned, is delayed and as you rightly said, could be delayed. So without Northeast also, it could be -- we will be able to reach. Northeast has an additional opportunity. But without Northeast also, we'll be able to reach 30, '30 as of now as we speak.

Got it. And this UCWL amalgamation and in terms of the extra shares that 6.5 million tonnes, that will be done by this December, it will be done?

Yes, we could be earlier than that. Additional shares, sorry, I could not get that.

So for minority stake of UCWL, JK CL will issue that 4 shares for every 100 shares. So that will roughly translate to around 6.5 million shares that we will be issuing.

Yes, that hopefully should happen sooner than December. That is what as of now we are saying. We are in final stages of hearing for the NCLT. Once that is there, it should be maybe not -- we will not have to wait until December, I can tell you as of now. It should happen sooner than that.

As that was the last question for today, I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Thank you, and over to you, sir.

Yes. Thank you. On behalf of PhillipCapital (India) Private Limited, I'd like to thank you, JK Lakshmi for the call and also thanks for joining the call. Thank you very much, sir.[indiscernible]

Thank you, everyone, and thank you, Mr. Vaibhav.

Thank you.

Thank you, members of the management. Ladies and gentlemen, 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.