JK Lakshmi Cement Limited ($500380)

Ladies and gentlemen, good day, and welcome to the JK Lakshmi Cement 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 will now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Private Limited for opening remarks. Thank you, and over to you.

Thank you, Ryan, and good evening, everyone. On behalf of PhillipCapital (India) Private Limited we welcome you to the Q4 and FY '26 call of JK Lakshmi Cement Limited. On the call from JK Lakshmi Cement, we have with us Mr. Arun Shukla, President and Director; and Mr. Sudhir Bidkar, Executive Director, Corporate Affairs and CFO of the company. 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 based on current management expectations and also something that relates to future expected business development by JK Lakshmi Cement's management. Such statements are subject to a number of risks, uncertainties and other important factors, which may cause the actual developments and results to differ materially from any management projections made on this call. JK Lakshmi Cement Limited and the management of the company assumes no obligation to publicly update or alter these forward-looking statements whether as a result of any new business development, information or future events or otherwise. Also participants can download a copy of and FY '26 results presentation from the company website or stock exchange website. I will now hand over the floor to management of JK Lakshmi Cement for their opening remarks, which will be thereafter follow-update Q&A. Thank you, and over to you, sir.

Yes. Thanks, Vaibhav. Good afternoon to everyone, and have some little cold, forgive me for some disturbance in my voice today. But anyway, I just thought I'll give you a brief update for the quarter and the whole year, how it looks for us and for industry. And since we have already updated this quarter 4 performance, we'll have question and answers here after that. So during the financial year, we have 2025, '26 spanning the year, cement demand grew by about 7% to reach to about 480 million tonnes, estimated 480 million tonnes. This is an improvement over 5% Y-o-Y demand growth recorded in 2024-'25. Overall quarter FY '26 demand growth is estimated at about 6% to 6.5%, volume about 17% quarter-over-quarter driven by broad-based tax. Cement demand remained strong during December '25 until about February 2026, so 8% to 10% growth, but moderated during March, which is estimated at around 5% due to weak sentiment and unmitigated conflict. Supply side witnessed highest ever annual capacity addition of 64 million tonnes. The national effective installed capacity reaching now to 712 million tonnes in March -- at the end of March 2026. The highest capacity was added in the East, followed by North, South and Central India. West added the last capacity during the financial year. This led to an adverse impact on the overall demand-supply situation with pan-India capacity utilization estimated to be at around 69% and marginally lower than previous year. On pricing side, cement prices witnessed partial recovery, particularly in nontrade segment during quarter 4 FY '25, '26. On a quarter-over-quarter basis, after slipping beyond GST pass-through level in the preceding quarter, which is around 22nd September 2025. Substantial capacity addition during the financial year of '25, '26 and intense competition restricted meaningful price hikes, fuel caused sharply because of the geopolitical situation, pet coke prices up by about 40% quarter-over-quarter to about $160 per tonne level, and that is again quite fluctuating. Coal prices also went up by about 30% quarter-over-quarter. Operating costs likely to decline in the last quarter for the entire industry due to operating leverage and stable freight and input cost. Limited price hike constrained marginal expansion despite margin -- constrained margin expansion despite cost efficiencies. Now on outlook part of it, what we see volume growth during FY '25, '26 was driven, of course, the housing demand, infrastructure and is likely to remain in the range of about 5.5% to 6% or 6.5%, this is what our estimation is. Cement demand outlook suggests slowdown with pricing power staying weak despite sector consolidation. Energy costs are expected to rise by about at least INR 300 and packaging cost about INR 80 to INR 100 per tonne, and that is going to impact maybe in coming quarters because of the geopolitical situation. If the Middle East conflict is sustained for a longer period of time and this expenditure may go up even more than that. Capacity addition may slow down. This is what we see in the backdrop of West Asia prices. Industry to continue to earn efficiency improvement trajectory, coupled with [indiscernible]. Sustainability and entire focus with key initiatives spanning renewal energy, scale up thermal substitution, emission reduction and EV deployment is the talk of the day. AI and digital deployment is also emerging as a key lever of productivity and efficiency improvement. Overall, we see that FY '26, '27, cement demand is going likely to grow at about 6% or so, so this is what just a brief top line of the industry for the whole year and quarter, and this is what we think as of today. Now since we have already uploaded our results, that is there with you. Now we can have answers -- questions and answers about that. Thank you so much.

[Operator Instructions] We take the first question from the line of Sanjeev Kumar Singh from Motilal Financial Services Limited. Please go ahead.

Two questions. You spoke about lending capacity addition in FY '26. So what is the clinker capacity addition in your view? And going forward in FY '27, '28, what sort of capacity addition are we foresee?

So '26, '27 estimated to be about again, estimated. And our estimate is about around 45 million to 50 million tonnes, right? Last year, it was about 64 million tonnes. And this is the cement capacity. Now you have to apply that clinker factor, whatever clinker factor is there on an all-India basis, which is about maybe about 1.6 or so, depending on [indiscernible]

Having about INR 300 kind of a cost increase. So my view is that really initially we could see INR 150 crore, INR 160 in 1Q, and then [indiscernible] will be in 2Q. So what sort of price increases have been taken -- has the industry taken so far? And also, is there any pressure on demand, which has been seen in the month of April and May?

So April demand was better, May when we started there was sluggishness and because of the reason because typically, wherever we operate, I think, laborers had gone to their respective places for election. Now there was some delay on account of they are coming back, that impacted demand to an extent initially. But I see a little better demand 15th May onwards. So April was better, May initially, it was sluggish because of combination of reasons. And of course, I think there was a big uncertainty around this geopolitical conflict also. And that has got rubber impact on the cement industry as well. But May 15 onwards I see a little bit green shoot in demand in the month of late.

And anything on price increases there?

So price increase, as I mentioned, initially, that there was some price increase in non-trade segment in various areas. There is some trade price increase also, but as I said, that -- those price increases are not at all kind of commensurating with the cost increase which we are posting.

[Operator Instructions] We take the next question from the line of Omkar Rane from Emkay Global Financial Services.

This is Harsh. So my first question, just a realization. Last quarter, you expected that that the relation spend sequentially [indiscernible] adverse product mix [indiscernible] time ramp up of the trap, so this quarter, there was in quarter 4, there was a good kind of ramp-up in our healthy pricing in the non-tech particularly, and we maintain kind of 42% share in the on-time segment. So sir, why was our realization just 1% growth, why not higher? This is my first question.

So I just tell you it again over. There are different level of price increases in different parts of India, right? And perhaps our geography, the price increase was a little lower than other regions. And particularly, I'm talking of East. East also, we have a limited presence in [indiscernible] which is perhaps the least very soon in the entire East, right? And in the western part of India, Gujarat, I think initially, I think there were no price increases, but I think I see a little bit of improvement in demand and prices are also going up now. So I think our footprint wherever we operate like North, West and a very small part of East, the meaningful price increase was not there. And that is why price or NSR increase is about -- around that number. So this is just based on the footprint, which we have, it is a little different than those players who are there in [indiscernible]

My second question then is on the AMD sale cancellation of our AMD sale contract. We have reported 130 crores in other noncurrent assets. Just wanted to know, sir, what is the surety or the certainty of receptor -- the recovery of this cash on -- in July, basically, whenever there is a hearing in the High Court. How sure are you?

We will not get -- we are not saying that it will come in July. We are saying that the next thing is in July. Don't time the [indiscernible] today. I don't know when it will come, but we are sure it will, that's why we are [indiscernible]

Last question, sir, what will be in FY '26 and situation?

Linked production, yes. 92. 26 lakh.

[Operator Instructions] We take the next question from the line of Shashank Goyal from [indiscernible]

2 questions. My first question is after the big expansion, what is the next project you are willing to take up?

Come again? I think -- one second, come again?

Yes. So after the Northeast -- so I'll say a...

Northeast, so we are going to take a project after East expansion.

And then my second question is, are we on track to achieve the CMC guidance for 2030, and will we be adding into capacity over [indiscernible] projects?

So we are reasonably confident that we'll achieve 30 million tonnes by 2030, and our ongoing projects in East, they are well on track, right? So we are confident that we are going to achieve that.

Both doing [indiscernible] addition?

No, no, your voice is not clear.

Actually, I was asking that will be [indiscernible]

No, not -- sorry, your voice is not so clear.

So will we be adding [indiscernible]

Yes, after 2 projects only, yes.

[Operator Instructions] We take the next question from the line of Dhruv Silane from EverFlow Partners.

Congratulations on the good set of numbers. So I have a couple of questions. So my first question is that in the Q4 as 1 of the balance sheets mentioned, that company will be recognized some crores of investment in APA following the cancellation of the mining development agreement. Given that the limestone mine was the foundation of the announced [indiscernible] plant, can the management clarify on this? And also, is the Assam integrated plan still viable? Are you actively pursuing an alternative limestone source? Or has the plan been revised to a [indiscernible], and that would source clinker externally. And what does this mean for the FY '29, 2030 time line and the earlier indicated 2 to 2.5 capacity target?

See this earlier, the AMC has granted that MDO contract to the consortium, which was canceled subsequently. But out of the 3 months, we were able to get 2 mines under the auction route in JK Lakshmi. So based on these 2 mines, which have results of about 250 million tonnes, we are pursuing our Northeast foray. so which will come after the industry.

My second question is that our ramp in utilization from our new capital [indiscernible] has been quite low. What have been the factors for us and by when we expect utilization to reach seasonal averages?

So that ramp-up we is well on track. In fact, we commissioned on our end of September, 22nd September 2025. And we are utilizing capacity more than 60% already. So we are well ahead of ramp-up plan of about 18 to 24 months. Probably, I think we'll reach even higher capacity this year, maybe 70% plus.

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

My question is on your CapEx for last 2 years, so CapEx has been INR 650 crores to INR 700 crores with the large project commissioning, INR 4,000 crores kind of CapEx and for the ongoing expansion. How do you look at CapEx for FY '27 and FY '28?

This next 2 years will be quite high CapEx. We expect total CapEx in FY '27 to be around INR 1,500 crores to INR 1,700 crores and close to INR 2,000 crores in the next year. Then we would be also taking up the -- we already started, but it will ramp up the land acquisition and the [indiscernible]

And time lines of East expansion, can you revisit that again?

We are expecting the good first to come by FY '28 towards the end of that year, FY '28. And 1 year later, the Northeast project should also be there and followed by the greenfield there thereafter.

Sorry, do clinker by FY '28 and the supporting 3 grinding units by about time?

This is -- those will be including the grinding units.

Okay. So [indiscernible]the plus grinding units by FY '28 end? And FY '29 we commission clinker.

Yes, clinker and grinding together.

This is 1 million tonnes each way? .

Yes, we have not formed up the site, but we'll do that maybe around slightly higher than [ 11.5% ] and thereafter, the Kochan Nagar in that order. First cut should come earlier than Nagor because ago, there are issues in the land acquisition pace that is taking time, but touch will get the priority that will come ahead of Nagor.

And in Nagor, there is additional issue is of around -- so until unless that supreme court decision comes I think that is why there is some delay on Nagar part of it, but that is going to be even before.

That Nagore is the FY '28 onwards capacity, right?

No, no. FY '30.

Another question on [indiscernible] exited this year -- so last year, 2 years, we exited [indiscernible] per tonne at like close to INR 1,000. This year, we have exited at like 730-odd in terms of quarterly EBITDA to -- there are recent cost pressures with our ACV and pricing have not happened? So how are you looking at the profitability for the full year versus like our style -- our targets of INR 1,000 per tonne, which we were to discuss earlier?

INR 1,000 per tonne is of course the anchor, but if you really look at cement EBITDA or even other leaders also, that has also gone down, right? So definitely, I think our ambition is to reach 2000 EBITDA. But definitely, we have been guiding our gap up with leaders in the last couple of years, and that journey is continuing. And for that, we are taking a lot of measures which are internally controlled, so I think I have said all those levers even before, major levers are, of course, I think, on top line part of it. I think last year, if you see our volume growth and even the premium product, that has been at a good level despite volume growth, I think we are at -- our volume growth in premium product is also good. We are working on logistics, we are extremely focused on now renewable energy, we have closed at 46% of renewable energy. We do have plan to go even beyond, so that is another lever. And digital is also being deployed in our manufacturing units, particularly in fire process and grinding units. There, we are deploying digital AI/ML capabilities, enabling them -- operations to have AI/ML deployment, which is going to help us to improve efficiency and reduce costs. So all those actions are already there, and we are relentlessly working on that. So that remains that -- at all, we have not deferred from that. And whatever bridging of the gap, which we have been able to do in the last couple of years, majorly goes to all those internal accounts and efficiency levers we have worked on. So that is going to continue in coming months and coming years also. But you definitely are going to see that our gap is going to further reduce with leaders in this FY' 27, and I'm sure that it is going to reduce at least by another INR 50 to INR 75 for sure.

But some of your industry peers have reported like INR [ 11,500 ], INR [ 12,500 ] like which peers are we comparing to -- like for the gap seems very high this quarter versus the third quarter?

We need to -- we are looking at greater cement data because some other Indian cement manufacturers, they do have a portfolio of other businesses also within that, right? But if we compare ourselves with the gray EBITDA, then we are very much there, right? And I'm sure that all of you must be doing that calculation as well, okay? And I am in touch with some of you, and we do get that analysis done externally all. And if you look at that, we were we are very much there that within our radar. And that gives us confidence that we are in the right direction and that gap is going to get reduced even further, so just compare gray cement versus gray cement because we do not have other than gray cement as of now. Another thing, I think incentive also we only kind of factor when we realize that. We do not get incentive on accrual basis. So that is also 1 of the differences.

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

Sir, my first question was a housekeeping one, could you share the noncement revenue and the RMC revenue for this quarter?

Non-cement revenue was INR 169 crores.

And then RMC revenues?

It is 82 crores.

82 crores, okay. So coming to the CapEx plan, which we see outlined to give the INR 170 crores this year and INR 2,000 crores or so for next year. If I do the calculation basis on the cost pressure on all the investor is reading through, I see your net back in raising by at least INR 1,500 crores over the next 2 years. So from over the next 2 years. So that should have your net debt level significantly, so how do you plan to manage that? And second question, you have the -- you are among the lowest cost quartile operating cost level. I believe if I do a line by line matching your numbers with [indiscernible] you're better off in terms of your fuel cost, you have the highest share of green power, your logistics costs on -- any distance a similar overall cost is comparable to trade operating cost. But the margin is different. And obviously, the difference is on the realization. Given trade mix, both the companies are -- you are slightly off versus the numbers in terms of -- so what we understand is there is a sharp gap of INR 400 to INR 500 and that is what is -- where I'm coming from that you may have limited headroom, available only a costing front to speed your cost further. So what efforts are we doing to increase our price premium or price positioning, whereby the margins can sustainably move north of INR 700, INR 800?

Rajesh, as I mentioned before, I think this is -- the focus area for us, how we are going to place our product at [indiscernible] facing level for competitors in the market. These has been areas, and we have worked that after year after year, whether going to work on improving our price. And for that, we do have that -- placing different and also in the market. For instance, we have reunited our legacy brand, launched Green Grass that was the whole idea to improve our -- if you actually [indiscernible]. And even now, we do have ambition of -- we have already launched LCT, what we call in line banks. How we are going to that is also a plan for us which is not only a been cement, this is as good as ordinary [ portal ], we are working on that as well as to how we are going to get better volume from LCC at the right side. So the strategy there, Rajesh, is right product, right price and right market. I do feel that we had on there to further improve.

And on the net debt set, given the large CapEx we are planning for next 2 years?

Yes, this will peak out. You're right that there will be a range of almost 10 crores. But once we better from because that is before the additional EBITDA from the dual expansion movement on that will [indiscernible]

Okay. And sir, one, just on the -- when you mentioned the clinker volume, if I put we see the clinker utilization in FY '26, it is close to 9%. So for next 2 years, given that your [indiscernible] expansion will be back-ended in FY '28 end, so for next 2 years, are we looking at a 3%, 4% volume CAGR? CAGR, I'm talking. So if you deliver 5%, 6% volume growth this year, chances of a flattish volume offtake, we expect in FY '28?

So we are going to grow higher than the industry in FY '27 as well, and there are reasons for that. One, as I said that we have reached about 60% plus capacity utilization in [indiscernible] which we are going to ramp up, right, one. Second, [indiscernible] that capacity utilization, we need to take it up, right, second. And third, we have that headroom in [indiscernible] as well. So these are the areas, the plans where we do have that headroom to grow this year at least as an industry.

So are you looking to purchase clinker externally, sir, because that 93% utilization, are we -- and we suppose we expect the industry to grow at 7%, 8%, would we have enough clinker to support that growth? .

I think we do have enough clinker with that [indiscernible]

Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. Ladies and gentlemen, we have the management line reconnected. Rajesh, if you could please repeat your question for the management.

Yes. So same question, sir. In terms of clinker availability given that we are already operating at 93% utilization, and given if the industry grows, at let's say, or 7% and if we are targeting, say, 10% growth, how would that be achieved?

Yes. So with even with a, let's say, current product mix, which we have, Rajesh, will go beyond 14 million to around 14.2 million, right, with the same level of capacity utilization of clinker. If I improve blended cement ratio, which was 62% last year, if I take to 65% and 94% of clinker utilization to about 97%, 98%, and the clinker, which we have sold last year rose to about 7 lakh tonnes, 7.5 lakh tonnes, then we do have that enough capacity to grow at that rate. So on the supposed rate, 1 improvement in blended ratio...

Your voice is breaking up again.

Sorry, I think there is some -- am I audible?

Yes, but in between, it's breaking up.

Yes. Sorry. Sorry for that. So these are the 3 things blended ratio, further improving clinker utilization, 94% to let's say, 97%, 98%. And the clinker, which we have sold last year, about 7.5 lakh tonnes, and we are there. We are there. We have calculated and we are there to grow in that.

Yes. And lastly, if you could share just the Q4 clinker volumes.

Yes. Clinker production was 24.72 lakh tonnes.

Clinker sale this quarter?

Clinker sale was 2.2 lakh tonnes.

[Operator Instructions] We take the next question from the line of Pradeep Kumar from Metal Consultant.

My question is on the some acquisition update. After acquiring about 80% share of market, what is the latest status of the liability settlement as the legalities in sector as the promoters were paid?

Can you repeat your question? I'm not clear, please. Your voice is very feeble.

My question is on the latest update on the [indiscernible] acquisition, in the -- the transaction was supposed to be closed by the end of March, where 80% of the shares were acquired off market. What is the latest on the settlement of a lease liability and the segment to be promoted?

You see this transaction was consummated at a total consideration, as we mentioned, of about INR 19 crores and takeover of certain past liabilities. Now those past liabilities have been settled in the month of March at a figure of around INR 12.5 crores. That is the first part. Second, regarding out of INR 19 crores, which was the consideration broken up into 2, 3 parts. We have paid about INR 1.5 crores towards the acquisition of shares. The other part, which is the non-compete fees of about INR 10 crore debt paid after the entire transaction gets unlimited and additional about 7.5 crores required to be inducted as capital into the company, out of which we have done about INR 3.5 crores, so we are hopeful that this transaction will in entirety gets completed in this quarter only. But most important was the settlement of the liabilities which were taken over or that has been settled at 12.5 in the month of March.

[Operator Instructions] We take the next question from the line of Nilesh Sharma from [indiscernible] Private Limited.

I just hoped to understand what is the current operational capacity as of now and for this financial year, how much capacity we can expect that you utilize?

We have current capacity of about 18 million, right? And last year, capacity utilization was 73%, okay? And as I said before, in the month of September, we added 1.35 million tonnes, so that is why the full year of capacity last year was only 17.7 million, so this is what the...

Sir, any capacity that we are going to add in this financial year as well?

This financial year [indiscernible] addition, and that is what earlier the speaker was [indiscernible] power group, I explained him, to have that increment, earn that, and which we have in our hands. But this year, we do not have any [indiscernible]

Okay. And sir, how much EBITDA pattern we are expecting in this year, considering all the sector the ore prices and load?

I think quite uncertain. I think maybe next quarter, I'll update you. Just give me another quarter because I think that depends on a lot of external environment, which is beyond our control. But definitely, I think we'll do -- as an industry in terms of all parameters that we are confident about.

Okay. And although you have given the answer that you are still targeting 30 million for 2030, is it right or are we planning to increase this target or reduce?

We are on goal.

We take the next question from the line of Akshay the from Maria Asset Shaira.

I wanted to know, given the elevated fuel cost and repeat appreciation, how do you see input costs trending over the coming quarters? And what could be the impact on margins? Also, would the recent price hikes be sufficient to offset these cost pressures? And also, additionally, I wanted -- what demand trends have you observed in April and May across your key markets?

Yes. So I'll just answer 1 by 1 because you combine 2, 3 questions together. So first, on cost part of it, just to let you know that we were dependent on imported coal and pet coke from outside in north part of India. East, I think we do have a few vitae in digital we do not have much of an impact, expecting accepting maybe your exclusive cost, back cost that has gone up. But north part also, we have done quite a bit to kind of contain the cost increase by changing the fuel mix. So we are kind of changing the proportion of pet coke versus coal in our [indiscernible] plant also. So that way, we are going to mitigate the cost increase to an extent, which is coming on account of imported coke and clinker. So that is 1 thing which we are doing. So even if that impact is going to be higher we'll try to mitigate it to an extent by changing the fuel mix in our northern plant, right? If you look at last quarter, we had this fuel cost of about 1.58 -- 1.54 -- yes 1.54, right? So I think this will definitely go up despite our effort to kind of change the fuel mix. So this is 1 of the mitigating measures we are taking just to preserve our margin to an extent. And second, also, you asked about our over market. So I think overall, India, you see a growth of around -- estimated growth of 6%. Our markets are also going to grow in the similar line. Maybe I think geographical here and there, some percentage here and there would be there. But as I said, we'll grow at a higher rate than industry. which is estimated to be growing at 6% right? So just to summarize your answer, 1 action is to mitigate the cost increase to an extent by changing a few units. Second, of course, I think, working on some of the levers to further mitigate that impact and typically on top line by which I mentioned, blended cement, maybe trade percentage, working in the right product, right market, right price. So those things we are going to get. And on growth part of it, definitely, I think we'll grow a similar line and even a set better than industry.

We take the next question from the line of Parth Bhavasar from Investec. [Operator Instructions]

I have a couple of questions on costs. So sir, you guided for INR 300 per tonne sort of number increase on energy cost and an INR 80 per tonne on your new packaging. So what sort of number will we see in Q1 with the entirely in Q1, and what -- how much can we mitigate through our cost measures?

So what I see maybe the 300 impact would come somewhere around quarter 2. But this quarter, definitely, I see somewhere around maybe INR 100 to INR 120 or INR 130 per tonne.

Versus the INR 400 per tonne that we are guiding, including packaging and energy, right? .

Yes.

Okay. And sir, like how much like of this -- so again, like INR 120 per tonne sort of a number we are seeing a bend in Q1. So to mitigate that, how -- what sort of price increases have the market -- has the market absorbed until now?

As I said before, nontrade prices have gone up in various markets. Trade prices are also inching up, but not to that extent. Once now demand I see is getting better. As I said, that May beginning was a bit sluggish. I see a little better demand in last part of May, and probably now since demand is improving, prices also will end up even in trade segment also. So trade, nontrade prices also will go up. And I'm confident that we'll be able to kind of since demand will suppose, we'll be able to recover or pass a majority of the cost increase that you are going to have. This is what I kind of foresee as of today. But that depends on a lot of external factors, right? How demand behaves and how competitive intensity is, so that depends on a lot of things, but this is what my fair estimates on it.

Fair enough. And sir, would be a blended mix in Q4 and for FY '26? .

Yes. So blended was 62%.

Okay. And for '26?

62.

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

I have a couple of questions. Just wanted to curiosity or maybe a request. Do you have any kind of a problem with me because I feel or maybe the organizer are not allowing or maybe allowing at the end of the call to ask the questions? And if you wish that I do not ask the question, I don't mind. So I just want to...

No, sir, if you are getting that impression, please, I think ask as many questions you want and I will invite you to come to my office. Or else, I'll come to you and meet you, sir. You are most welcome.

I would love to meet you, sir.

Please do that. Let's meet as early as possible. I'm very -- because I get a lot of insights from you. That really helps me.

Yes. A couple of questions. Most of things have been covered just continuing the previous part question. So broadly, to understand in Q1, if we see 120 crores, 130 crores and maybe INR 50, INR 70, INR 80, so maybe INR 30, INR 50 kind of and plus some operating deleverage. So maybe INR 80 is kind of an EBITDA per tonne reduction broadly at current level, that's the way 1 can look at?

So even, as I said, I think that depends on a lot of things. Maybe I think if demand supports then I think we'll be able to recover full cost increase also. We're not too sure about it. Very difficult to really kind of give an estimation. But probably, we think that, yes, we have not been ever to able to kind of increase oil prices to the extent the cost has gone up. In demand support, then maybe I think we will recover also. So we are not sure as of today. But what we are focused as of now at JK Lakshmi Cement is to work on all those things which we have control over. And which I said a couple of things which we are working on. Like to mitigate the cost from, we are working on a fuel mix in our hot plant, right? We are working on further improving our enable energy and improving TSR and all those low-cost fuel. So those axles, we have already started taking. So our focus is to really work on all those things which we can control. And let's see if things go already, then maybe I think will be even better.

Got it. Got it. A couple of data points, noncement margin would be for fourth quarter would be how much 4%? .

4%. You are right. You're absolutely right.

And the ASC block revenue would be 50 crores, 60-odd crores for this quarter? .

Right. You are absolutely on the dot, 59 crores.

Sir, I just wanted to know this INR 3,000 crores CapEx that the total we have Out of that, how much we have already have done by FY '26 for March? And how much already spent?

We have done about sales to about INR 500 crores.

Okay. INR 500 crore is the -- and roughly...

Including the raw siding.

So roughly, how if you look at -- obviously, we will still be finalizing in terms of the capacity for the Assam. So roughly, if I have to look at INR 100 crore base and for maybe by FY '29 now we are seeing FY '30, obviously, the Nagore, will depend -- but broadly, if I leave apart the Nagore, how much we need to stand by FY '29 broader number, I just wanted to understand.

Yes. As I mentioned in response to earlier question, FY '27, we are seeing about INR 1,500 crores to INR 1,700 crores of CapEx and then INR 2,000 crores at least in FY '28. And maybe [indiscernible] 15 in the FY '29.

Okay. and sir, just 1 thing. Intangible assets, which was INR 329-odd crore in FY '25 and September and now it is just a INR 5-odd crores, so any accounting adjustment?

Which asset you're talking about?

In balance intangible assets that we have. So that was -- in consol balance sheet, it was INR 329-odd crores was there, which is now is just a INR 5-odd crores. So just wanted to know.

Because you would have read in our notes that we have -- in the consol results, we have derecognized the mining rights now because of the cancellation of the...

Okay. Okay. That's the one.

329 crores [indiscernible]. That's all INR 329 goes down to INR 5 crores, right? That is appearing...

Yes. Got it. And lastly, sir, 2 data points, the CC ratio for fourth quarter and what costs would be the similar 5.37 per kilowatt for fourth quarter?

Yes. The ratios revenue is 1.44. And what is the next question?

Power cost for fourth quarter, 5.37% was in third quarter.

5.79%.

We take the last question from the line of Rajesh Ravi from HDFC Securities.

Yes, yes. I think you mentioned for the Zurich project INR 3,000 crores till FY '26 and we have incurred INR 500 crores. Is this understanding correct?

Yes.

Okay. And sir, how do you -- if I just look at the Zurn project CapEx for next 2 years, how would that be phased out in terms of CapEx outlook?

Total, as I mentioned, including the land acquisition and also the Northeast project together, we have talked of 15 to 17 in response to your earlier question in FY '28.

I just wanted to understand, even if you want to delay the Northeast project and prioritize the [indiscernible] project, so in that way, in that case, how would the CapEx number would look like?

It will not be delayed.

Okay. Will not be delayed. Okay. And sir, the TSR project, by when is that expected?

Yes, sir. I think Phase 1 is over Phase 2, we have not yet taken up because the availability of alternate fuel is not that great around that plant. Yes. So right now, I think we are -- we just having a Phase I, we have completed. Phase 2 also, we are contemplating, but we have not yet finalized.

And the railway side in the second phase by -- is that work going on, on that?

I think we are dependent on a lot of other agencies like we have to put up 1 tie-over and that passes through 1 PWD rule. So that we have to get it done through them only. So there is delay from their end. And another 1 is strengthening this existing track, which, again, with the Steel Authority of India Limited. So on then I think we will -- that will get done. But nevertheless, I think our operation is going on full sim, there is no issue on that. So once they are kind of ready with all those things, then we kind of do that -- so there is no delay from our.

Understood. And sir, this noncement revenues, there were earlier targets of growing this at 20% -- 20%, 30% CAGR. But last 2 years, we are seeing around 10% revenue CAGR, so any thoughts on that? Why we are not aggressive in this segment on cement revenues.

Non-payment revenue you're talking, Rajesh? .

Yes, announcement revenue, sir?

I think we are going at the plan and years, I think ready-mix plant, which we wanted to set up, I think we are a little behind our projection. But block area, I think we are kind of expect the plan we are doing. In other products like offering solution, tiles, we are going well, I think, and high margin and though, I think revenue-wise, you'll not find that much, but I think that gives us a decent margin. So there, I think we are at a plan only. Ready-mix has not own at the plan, and the reason was also because we want to grow in the area where we have our event footprint. The fact ready, you have got margins also on the lower side, so being focused other than R&C so that we get better margin to, I think revenue-wise, we are a little lower. So that was a very conscious and deliberate call.

And sir, lastly, when you talked about the quarterly Q1 outlook, and you said that April was good, May started off on a weak note. So overall, for the quarter, what sort of growth you're looking at given that the market has been subdued, and the cost pressure you're looking at close to INR 150 in Q1 Q-on-Q and around INR 50 to INR 70 cost pass-through has happened. Is this understanding correct?

So growth is, Rajesh, I think though, I think, May initial was a little sluggish. But overall, I think April June is going to be better and will grow in alignment with the projection. So I don't see it's going to be an issue in terms of growth, right? [indiscernible] Yes, INR 130, INR 130 a tonne. So that impact will come in this quarter. But next quarter, I think the impact is going to be even bigger, right? And the whole idea is if demand picks up then perhaps, I think we'll try to recover this from the market, okay? But -- and I suppose that now demand is a little looking up going forward. But I think you do have other challenges also because of petrol and region high, that is another element which is coming with into fall. And that is going to impact our logistics cost. Because in the last maybe a week or so, you have already seen that about INR 4 per liter increase, right? That is to about, let's say, INR 50 to INR 60 a tonne, if you really -- yes. Yes. So I think -- see, we wait for some time because cost and other external scenario is through volatile. It's very difficult to really kind of calculate as what is going to happen and how much you will be able to pass out.

No, I just want to be checking this 2 months, April, May, have you been able to effectively pass on the cost increases or that have been suboptimal?

April, I think, thanks to our inventory also, at least, we have been able to do that in tape.

With that, we conclude the question-and-answer session. I now hand the conference over to Vaibhav Agarwal from PhillipCapital (India) Private Limited for closing comments.

Sir, just a couple of quick questions. One thing you said on the call, INR 120 of unpassed of inflation expected in Q1. So you are understanding for the price increases, if any, right? I just want to reconfirm that. You said INR 120, you said INR 120 would be the expected cost inflation in Q1. That's what you indicated in terms of the cost inflation for the current quarter. So you are not adjusting this for any price increase, which potentially could be passed or which is already passed on, which is rolled back. So it is all the cost inflation, right? 120 is purely the cost unrational number?

Cost inflation, purely cost inflation.

Okay. And second question, sir, was that we recently got to know that you have now partnered with some manufacturers for iron roads, et cetera. So JK Lakshmi et cetera, so we have also been like marketed in -- sold in the market. So what is the management broad thought process? Are you going to get into multiple building material products like starting with maybe further more -- anything more in the -- what is the management thought process of getting into newer product lines? And what is the kind of income which you are expecting from all these businesses?

Wherever, I think first, I think I need to correct you. We are not at all going into iron ore, right?

No, no, that's still roads, I'm saying the...

Piloting -- because if you really look at distribution network of all those products like TMT and all that has quite a synergy with cement channel network, the idea was can we leverage our brand itself. We are not at all going into manufacturing. We are not at all going into distribution. We just wanted to just pilot, if at all, we can leverage that brand essence, which we have in different projects. That is at a very, I would say, a massive state, very initial state -- so I'll not be able to comment on.

Order management thought prices also getting more products in the future? Or this is only after the testing of this product will take a final call as to what means to be.

Eminently, our effort or our cost sorry, or the strategy is to go to adjacent building material, for sure, because that -- we want to give our customers portfolio of products. So we definitely want to go into adjacent building material -- and you see that [indiscernible] which we gave and then the AC blow, RMC, I think all these adjacent product only, it is being used in building materials. So definitely, I think our -- not only you do have a number of other products which make -- we may explore in the future. But yes, strategy-wise, we do have that.

Right. So that's what I wanted to do. I did not say manufacturing I just meant you have tied up with some manufacturers and you are just lending them the our brand and charging some loyalty in terms of brand fees or that's what I was commenting.

Okay. That's all from my end. And thank you on behalf of PhillipCapital (India) Private Limited, I thank the management of Jolt for the call and also many thanks you party for joining the call. Thank you very much. Ryan, may now conclude the call. Thank you.

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