JK Lakshmi Cement Limited (JKLAKSHMI.NS) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the earnings conference call of JK Lakshmi Cement Limited Quarter and 9 Months Ended 31st December 2025, 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, Vaibhav.

Thank you, Ryan. Good evening, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the Q3 and 9 months FY '26 call of JK Lakshmi Cement Limited. On the call, we have with us Mr. Arun Kumar Shukla, President and Director; and Mr. Sudhir Bidkar, Executive Director, Corporate Affairs and 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 such statements made based on current management expectations. These 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 the statements made. 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 new information or future events or otherwise. Also, JK Lakshmi Cement Limited has uploaded a copy of the Q3 FY '26 results presentation on the company website, which participants can download. I will now hand over the floor to the management of JK Lakshmi Cement for their open remarks, which will be followed by interactive Q&A. Thank you, and over to you, Arun, sir.

Yes. Yes. Vaibhav, thank you so much. Good afternoon to all of you, and welcome to this call of JK Lakshmi Cement quarter 3 and 9 months of financial year 2025-'26. We have already uploaded the presentations, and we can right away start with questions and answers.

[Operator Instructions] We take the first question from the line of Pathanjali Srinivasan from Sundaram Mutual Fund.

I have a couple of questions. Sir, firstly...

Pathanjali, I'm sorry to interrupt you there, but your audio is not coming through clearly. Could you please use your handset?

Yes. I hope it's better now.

Please go ahead.

Yes. So I believe our share of trade sales has fallen quite a bit on a year-on-year basis. Could you explain a bit about this in terms of why this has happened?

What? I think not very clear, sorry. I'm extremely sorry, but I couldn't really hear that.

Am I audible now? Can you hear me?

Now it's a little better, not so great, but yes, we can manage.

Okay. So your trade sales in your overall volume has declined quite a bit year-on-year basis. So can you tell us like what has happened here?

What is...

Not clear. Sorry, sir. Sorry.

Mr. Srinivasan, if you could please use your handset and ask your question.

Yes, just a second. Your trade share has fallen quite a bit on a quarter-on-quarter basis in your overall volume, trade cement sales. So can you explain why this has happened?

Yes, yes, good, good. Now it's clear. So you're asking about trade sales drop, right? Yes. So that has happened in quarter 3 of this year. And this is precisely because of 2 things. One, of course, I think our volume in Gujarat has gone up. Whatever we sell in Gujarat, in quarter 3, we have sold more than that. This is one. Second, that is also coming from the fact that we commissioned our Surat grinding station in the month of September, 22nd September 2025. So that volume was also available with us, and there was a good demand in Gujarat beyond 15th November. So our volume went up in Gujarat, which is predominantly a nontrade market. And that is why our trade share has gone down by about 4%, right?

Yes.

53% to 59% -- 49%, sorry. So this is what the reason is.

And why would our trade volumes on a year-on-year basis decline? I get the fact that your nontrade has gone up because you got more business. So why is there a degrowth in volume for trade year-on-year?

So trade also, if you really see post GST reduction on 22nd September, there was some confusion in the market with respect to passing on prices to customers and things like that. In fact, prices went down quite a bit post GST reduction, right? So there was a demand in the nontrade segment during that point in time. Also, the fact is during this Diwali season and extended rains also during this time, laborers have not come back to their respective sites. I'll just take you back a little bit because there was also elections in Bihar during that time. So laborers went back to their respective states and they came back to the site only after this election of Bihar. So scarcity of laborers and hence, there was more demand in sites where ready-mix, on-site ready-mix plants were there and hence, more of a demand in nontrade segment. So that is what the reason is.

So can we confirm that this situation was a temporary thing? And in the current quarter, our share of trade should be like back to a fairly decent level?

Yes. Yes. Yes. I think in the right -- in the month of December and January only, I think we have gone back even a little better than what we have done before. So not an issue. That was a very temporary thing. Extremely temporary, sir. Mr. Srinivasan, you need to understand. We commissioned our plant in the month of September and also we had to really kind of test that capability of plant. We need to ramp up that plant. I think that was also one of our priorities during that time, right?

No, no, sir. My concern is not about the nontrade volumes growing. My concern is about trade volumes. Why it did not grow, but I got the answer from you.

So we have come back. We have come back very strongly in December and even in January.

[Operator Instructions] We take the next question from the line of Sanjeev Singh from Motilal Oswal Financial Services Limited.

Yes. Can you throw some light on the pricing scenario in your respective markets, be it North, South, North of Gujarat as well as East region during 3Q because the license seems to be down around 10% on a sequential basis. And also what was the gap between trade and nontrade prices in the markets where you operate?

So typically, if you look at our footprint, which is there in the part of Western market, which is Gujarat, heavy on institutional sales. We go to Mumbai, which is also a little heavy on institutional sales. And part of North, I would say, Rajasthan, Haryana and West part of UP, right? So if you really look at distribution of our sales, then because I told the earlier questions, I was replying to that, post GST reduction, there was some sluggishness in the market and hence, effort was there to really at least sell some volume from newly installed capacity, which was Surat. And also in other market also, there was some sluggishness in demand in trade segment. And that is kind of common with the industry. If you really look at, I think that cut across, majority of the players who have reported their volume, their volume has gone down percentage-wise in trade in majority of the cases, not all, right? And that has happened with us also. In our case, more predominant because our dependence on Gujarat is much higher than other players. So that is what has -- the case has been for us.

Secondly, sir, how is the pricing scenario as of now in the month of Jan? And plus, if we look at your employee expense, then sequentially, that has gone down from INR 130 crores to around INR 116 crores. So what has been the reason for that?

So I'll ask -- second question first, right? So as I said before also that we have been optimizing or improving productivity at our different locations. So first phase, we had done last year. Second phase, we have started -- we had started a couple of months back, 3, 4 months back. And in fact, going forward also, I think we do have a plan to improve our productivity. One, of course, through improved volume and second also, per person productivity in terms of cement revenue -- per tonne cement revenue you get, right? So that effort even is still continuing. So that has benefited us in terms of reduction in employee cost. So, one. Second, you asked about pricing scenario, almost in all markets, post, I would say, December onward, maybe latter part of December, nontrade prices have gone up everywhere. Trade prices have not gone up that much, but I see since demand has been very good in the month of December and that is still continuing in January and February also is a similar situation, I see that prices in trade also will go up from 2 counts. One, improved demand situation, and second also, fuel prices are going up. So that also, I think will have to recover from the market. So from these 2 counts, trade prices also, we expect that will go up. And even nontrade also the gap, which is still very high in different markets, that will also get slotted going forward. So price-wise, I see a good improvement in nontrade segment in the last 1.5 months. And going forward, I see improvement happening in trade as well, along with nontrade. So pricing-wise, I think I see things are improving, for sure.

So should we assume that employee cost will remain at INR 115 crores, INR 120 crores kind of a range going forward?

I think our endeavor is, I told you that...

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

I was asking about the employee cost. I think he answered it.

So you asked two questions. One on pricing, which I said nontrade has gone up, even trade also expected to go. Second, on employee cost, we had taken some previous projects. In fact, our endeavor is to further improve the productivity, which we are working on. Yes. So these are the 2 things, yes.

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

I have a few questions. First one being, given that -- continuing with the previous participant's question, so do you feel that the realization could improve in the similar quantum what we lost in Q3 in the coming quarter, quarter 4?

Yes. Yes. I think I -- as I said, prices are improving and volume also is improving. So we'll get some leverage as well. So yes, I definitely see that.

And sir, what was the clinker sales for this quarter? If you can just bifurcate between cement and clinker sales in quarter 3?

1,51,000 tonnes.

And the clinker utilization level?

So we had 90%.

Sir, last question, what is the CapEx that we have already incurred for the Durg Line 2, and have we ordered the clinker unit for Durg Line 2?

Basically, Durg Line 2, we have not incurred much of the CapEx other than what we had mentioned in the last call. So in the first 9 months of the current financial year, we have incurred about INR 250 crores -- INR 260 crores we have incurred, balance will happen in the -- we have talked of a figure of about close to INR 400 crores in the current financial year of the project. So balance will happen in the current quarter.

Sure, sir. So we will be spending INR 400 crores out of the INR 3,000 crores planned in this year?

Yes, yes, yes. Only INR 400 crores in current financial year. You're right.

Right. And we are aiming for everything commissioning, including the clinker and grinding unit by March '27. Am I right?

Yes, yes, yes. Entire project will get completed by March '28, including all the spread location.

All area.

March '28. Okay. Okay. And -- sure, sir, these were my questions.

[Operator Instructions] We take the next question from the line of Harshal Mehta from AMSEC.

3 questions from my end. Firstly, in terms of realization, just harping in on that. So this quarter, like we have seen a very sharp decline of 9% on a Q-o-Q basis. So could you please help understand the drivers behind the same? And additionally, if we see over the last few quarters, volatility in terms of realizations and EBITDA per tonne continues to remain much higher versus peers. So any color on the structural or operational factors behind this volatility will be helpful. Also in terms of price, if you can just throw some number on how our spot prices versus Q3 average for the trade and nontrade segment in our core operating margin? That was one. Secondly, on the project update, so 2 clarifications. Firstly, we early understood that was planned to be commissioned in 2 phases, 2.2 million tonnes by March '27 and 2.4 million tonnes by March '28. So does this phasing remain intact? And secondly (sic) [ thirdly ] on the overall [ Guru ] CapEx, INR 3,000 crores is the number what we are calculating, that still remains. That was the group realization. And lastly, in terms of -- if you can just share some light on regional mix for this quarter, CC ratio and the clinker sales in 2Q and 3Q FY '25? So that would be helpful.

I'll answer first part of it on the realization part of it. So I explained that. So drivers were, one, nontrade prices went down drastically post GST reduction, one. Second, in our case, because you also mentioned about peers, so our dependence on Gujarat is a little higher. And since nontrade prices went down everywhere, including Gujarat and our trade sales was also not that great. I think 49%, that is what our trade is, right? So these are the drivers why realization has gone down. This is one. Second, I think you also mentioned about -- on this realization quarter-on-quarter basis. So I think one thing we need to understand is our footprint, our footprint, and since I think we are limited to some geographies, like in North, we are only in part in North. So North limited to only Rajasthan, Haryana, and West UP. We don't go anywhere. In West, we are only limited to Gujarat and part of Mumbai. We don't go anywhere else. In East, we are only limited to Chhattisgarh and maybe a little bit of neighboring states, right? So our -- anything kind of happens in this market, either upward or downward, that impacts us, right? And this is a little different than other players because they have a little spread footprint in different markets. So that gets kind of assimilated and that gets averaged out. But in our case, as I mentioned that, let's say, take last quarter, last quarter, our sales in the West part of India, which is predominantly Gujarat for us, was higher than previous quarter 1. And second, nontrade prices went down. So we were impacted much more than what others would have been, right? And if you see the last quarter, if you refer -- go back to July to September, right, that -- during that period, Gujarat did better. And in fact, all markets were better wherever we were present. In our case, I think Chhattisgarh did very well. Rajasthan, Haryana was very good. And Gujarat also kind of performed very well. So I think everything ticked together, and that is why you see a good performance in quarter 2 and not so great in terms of realization, though if you really look at the bottom line, whatever the estimation was, I think we are close to that. I think there is no miss on that count, right? But yes, because of the footprint, which we have in our case, I think that definitely has bearing on us. So this is what on realization. Second, I think pricing, I told you, I see prices are going to do better. One, because of improved demand. Second, also, I think cost is going up. So prices definitely will go up going forward. Nontrade prices have gone up in majority of the market. Even trade also is likely to follow. That is what my estimation is. So this is what you asked. I think your question was quite overloaded. You asked about clinker factor, which I think I'll give you, that is 1.49.

1.44.

1.44. You asked about CapEx of INR 3,000 crores, so that remains. This is what I remember. If anything is missing from my end, just let me know.

Yes, sir. So multiple things. First on pricing, if you can just throw any particular number in terms of trade and nontrade, how we are at spot versus Q3 average? That was one thing. Secondly, on project update, I was just asking 2.2 million tonnes by March '27 and 2.4 million tonnes by March '28. That still remains intact. That was just a clarification. And lastly, I was asking on the regional mix, if you can share for this quarter and clinker sales for the last year, Q3 FY '25 and 2Q FY '26? Yes.

Yes. So last year, it was 7.23 lakhs ton, right? And this year, we have already told you last quarter, it was 1.51 lakhs ton. And for the whole 9 months, it's 5.34 lakhs ton. On this pricing and this thing, all these things, this is not handy with us. We can give it later.

[Operator Instructions] We take the next question from the line of Amit Murarka from Axis Capital.

So I think a lot of questions have already been asked about your pricing decline. But honestly, I mean, it's still a little confusing still because while I see that your share of nontrade has dropped by about 4 percentage points from 53% to 49%, like -- even looks like even the overall portfolio seems to have deteriorated on pricing, including trade. So -- but generally, North, I think the trade pricing was pretty steady. So like, is it like your nontrade price decline kind of influences even your trade pricing in the market, even, let's say, the other category players, let's say, the likes of UltraTech and all. Essentially, does your gap increase between trade also versus the higher priced players in the market when nontrade goes down, because essentially such a sharp decline, I think is not -- was not there in the market essentially in any of the markets. So it's still a bit confusing over there why it has gone down so much.

So, Mr. Murarka, I'll just repeat once again. So trade prices almost were intact. The gap which you are having with the leading players, that remains. That has not widened. I told you 2 reasons, precisely 2 reasons, and we do have that detailed reconciliation also with us. One is, of course, I think Surat, we started on 22nd September, and we had to really ramp it down. And Surat expansion, typically, this caters to market of Gujarat and Mumbai, which is heavy on nontrade. This is one. So increased volume in nontrade and decreased price in nontrade. I think that has impacted the most. That nontrade is not limited -- the reduction is not limited to this market, nontrade prices went down in other markets as well. But the most impact on us was from Gujarat state, right? So this is what -- why this has gone down, one. This is what I think you asked, right? Anything else I missed?

Yes. No. So I mean, if I simply put, if I think of it that trade was steady, which is, let's say, 50% of your volume, 9% overall realization decline would imply about an 18% fall in nontrade pricing, honestly, so which I don't think was the case in the nontrade...

If I gave you the detail, the kind of price drop, and in fact, when I was doing this roadshow in Mumbai during that quarter, I did mention to some of you. I think I don't know who all are there in the call, that what kind of price drop we see in nontrade, right? So nontrade, particularly in Western market, nontrade prices were not that great. And in fact, post GST reduction since demand was sluggish, nontrade prices went down in other markets also. For instance, let's say, we have a grinding station in Cuttack, Orissa, Orissa was not that great, nontrade pricewise, right? Even Chhattisgarh though, I think our nontrade presence is not that much. There also prices went down drastically, gap increased, right? So if you put things together, I'm just giving you the major impact which is having on us, right? So I think that has impacted us. That is what I'm trying to explain to you.

Okay. Okay. Sure. Could you also share the non-cement revenue in the quarter?

Sorry.

The non-cement business revenue in the quarter.

Yes, I'll tell you. So it's INR 147 crores.

And how much was RMC in that?

RMC was INR 67 crores.

Okay. And also AAC Blocks?

AAC, INR 56 crores.

Got it. And the EBITDA margin would be roughly how much in this?

4%.

Sure. And lastly, the CapEx number for this year, if I understood right, you said INR 260 crores has been spent and another INR 400 crores has happened. So it's about INR 650-odd crores CapEx for FY '26 then?

No, it is about -- around that, you are right, total CapEx.

INR 650-odd crores?

Yes, yes.

And then next year would be how much?

Next year, we are targeting anywhere between INR 1,600 crores to INR 1,700 crores.

Sure. Okay. And then balance will be in '28 then?

You are right.

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

Am I audible?

Yes, yes, very much.

Yes. You shared the operating numbers. And I just wanted to understand, see, your nontrade mix did increase quarter-on-quarter. And you also mentioned that there was a sharper drop in nontrade. Broadly, could you suggest what would be the fall if trade prices would have declined on a like-to-like basis by 2%, how much would have been the drop in your nontrade realizations broadly?

I think that varies. Sharper drop...

Broadly, on an average -- on an average, 5%, 10%, just wanted to understand because trade, we understand it would have been dropped by 2% to 3% at max, seeing results of various peers. So I just wanted to understand nontrade markets where you operate, what could have been the quantum of correction?

Correction would be about more than 10%. Exactly, I'll tell you, maybe state-wise.

Okay.

Yes.

And could you also share what was the clinker volumes in Q2? You mentioned 1.51 lakhs for Q3. For Q2, what was the number?

I'll just tell you. Ravi, just...

1.71 lakhs.

1.71 lakhs.

Okay. So it dropped quarter-on-quarter?

Yes.

Okay. Okay. And what explains the sharp decline in your input costs on a Q-on-Q basis by almost INR 150, given that your fuel cost remained steady at around [ 1.4, 1.6 ] and green power mix has also been stable and then there would not be any -- even the clinker production was lower, so there would be more power consumption and whatsoever. So if I look at the total input cost, raw material, power and fuel and change in stocks, that number has come down by INR 150. And secondly, this fall in the freight cost, sharp fall by more than INR 100 per tonne, is it on account of higher nontrade sales, which is mostly ex-factory?

You are right on point, Ravi, yes, because this happens only for plant. And if you look at our lead has also gone down. So that -- yes, you are right. Yes.

And for the input cost reduction, sir?

Input cost, just give me...

Yes. Yes.

So power cost has, Ravi, gone down from [ 5.52 to 5.37 ], right, per year.

Okay. [ 5.52, 5.37 ]. And year-on-year, how was the number, sir?

Year-on-year -- just give a sec. I'll...

Sure, sure, sir.

Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. [Technical Difficulty] Ladies and gentlemen, we have the management line reconnected. Sir, please proceed.

Yes. Sir, you were answering the input cost reduction.

Yes. Sorry, I think we have -- we are struggling with issues in our office today, unfortunately. Extremely sorry for that. We are back now.

Yes. So you were explaining the input cost reduction on a sequential basis?

Yes. [ 5.52 to 5.37 ]. That is what I told you, right?

Right, sir.

Yes. Yes, yes. Yes, go ahead, please.

Yes. So this is a nominal change, right, on the power cost, presently...

If you want, we can give you the details also. We are not handy with that. So...

And second, sir, if I -- on the CapEx project, you mentioned that you have spent INR 260 crores and another INR 400 crores is targeted for Q4. So given that January is already out, are you -- can we assume this INR 400 crores is on track? Or are there chances of any major slippages? And second, given that you are targeting the Durg expansion brownfield over next 12 to 13 months, so what is the status of the execution on that? Are the -- has the civil work already started? What is the status on the equipment ordering? And when would the equipment installation would start because that would require some extra time for that to get executed?

Yes, we are broadly on track for the CapEx, which we have talked of to spend about INR 400 crores in the current quarter. And all the equipment, most of the equipment have all been ordered and construction should start as soon as -- means excavation has started. And once the equipment land there, we start the installation there.

This 12-month target for the clinker is good enough for getting the plant operational by March next year?

As of now, it's okay. We are monitoring it regularly and we will keep you updated on that.

Great. Great. Just 2 more questions. One on the railway siding Phase 2, what is the status? And second, how is the demand traction so far you are witnessing in the Q4? And January has passed on, and we are hearing nontrade prices across India have improved. What is the status on trade price improvement? And why is that not picking up? Is the nontrade price firming up leads to a better trade price?

Yes. As far as the railway siding is concerned, this second phase, that is expected to be completed by March '28 and then the other part...

Demand and pricing, yes, how is the demand shaping up in Q3? Are we expecting a similar type of growth in Q4 for the company as well as for the industry? Industry also would have grown 7%, 8% in this Q3?

Yes. So Q4 being the base a little higher, so yes, I think demand momentum is good. What we see definitely, I think, a double-digit growth in quarter 4 as well, right? So, industry, and of course, I think we'll also grow in line with industry volume-wise. And on the price -- on pricing, yearly basis, if you look at, I think our estimation is industry would grow by about 7% or so. Quarter 4 is going to be double-digit. This is what we see as of today. Pricing-wise, nontrade prices have gone up in almost all markets. Maybe I think some of the markets like Orissa and all, still prices have not gone up that much. And in the trade, since demand is good and cost also is going up, prices are likely to go up in trade as well. Now you asked why trade prices did not go up precisely, I think trade prices were almost intact. That did not go down that much. So non-trade prices, which went down drastically in almost all markets, that is resurrecting. And then since demand and cost also is now pushing, so the trade prices also will go up.

Great. Great. So just last question, if I squeeze in. What is the fuel price outlook for Q4, sir, given there's a surge in pet coke prices? And also for Q1, is there some indicative number you're looking at?

Pet coke coal prices, yes, it's going up. I think definitely, it will go up because whatever we have stocked that we have almost exhausted. Now new buying is also happening. It will go up by at least -- yes, so, [ 1.56 to about 1.60 -- 1.58 to 1.60 ]. That is what we see in our case.

[Operator Instructions] We take the next question from the line of [ Pushkar Jain from Mili ] Capital.

Yes. I just wanted to ask that our non-cement revenue currently operates at like 4% EBITDA margin, which is like significantly lower than the core business. So what is the tipping point volume where operating leverage kicks in for AAC Blocks or -- to match the double-digit margins of gray cement business or something to that effect?

So all these businesses, you have very good ROCs. But EBITDA margin, I think we are in almost alignment with the industry, right? So that varies. Ready-mix is -- operates at about 3% to 5% kind of thing. Plaster of Paris business that is a little on higher side, and AAC Block is somewhere in between. Though we are working on improving productivity all across and our effort is to really focus much more in case of ready-mix on value-added concrete, in case of AAC Block improving AAC footprint. So we are working on that as well. And now we are also in the process of ramping up our Alwar plant, which produces a putty and a little bit of white cement. So perhaps that will take our margin a little better than what we have today. But right now, I think since all these product lines installations are in the ramping up phase, so we see that improved margin going forward. But not closer to the cement. I would not say that we'll reach to the cement level, but definitely higher single digit. That is what our effort is.

And we aim to like reach there by?

It will take at least 2 years' time, at least 2 years. Yes.

[Operator Instructions] We take the next question from the line of Tushar Chaudhari from Prabhudas Lilladher Private Limited.

Yes. Sir, most of my questions have been answered. Just I had one doubt. We have seen 4 percentage point decline in trade share in this quarter, but our blended share is flattish or constant. What could be the reason for this?

So blended is 62%, I suppose last quarter.

Yes, it has not fallen at all.

It is -- yes, sir. So institutional sales is not only about OPC. Institutional sales is also about blended cement. For instance, we have started pushing -- again, I think it has gone up. Are you there?

Yes, yes, I'm there, sir.

Yes. So institutional sales, we are trying to push blended cement that is PPC. In a lot of ready-mix plants, we have supplied now PPC, which was not the case before, right? So nontrade percentage increase necessarily doesn't mean that OPC goes up because our effort is also to work on the carbon footprint and the carbon net zero road map, which we have defined for ourselves. So we are working parallelly on that, right? So effort is to really push blended cement in institutional sales.

Got it. And a few other -- this thing. I missed your employee cost. Did you say that employee cost will continue to go down further also in next few quarters?

No, it will not go down. I think it will get stabilized.

Okay.

Or -- yes. Maybe I think if you look at some of the sites we are adding, right? So Surat, we have now added, right? So Surat, I think we need to reinforce. Then we have some increased footprint in ready-mix business, right? So I think our aim is to really kind of improve productivity rather than employee cost, focusing only on employees.

Right. And lastly, on CapEx, FY '26, you said INR 650 crores, out of which INR 400 crores we have planned for INR 3,000 crores CapEx, which is ongoing. Am I right or I'm...

Yes.

We take the next question from the line of Kamlesh Bagmar from Lotus Asset Managers.

Yes. Sir, just one question, like so far, whatever results have come from the sector, we haven't seen this fall in realizations. 10% quarter-on-quarter fall in realizations ex of non-cement revenues. So how we define that, sir? Because it's an significant fall, INR 456 quarter-on-quarter and I'd say same market is there for all other peers as well. So why we have seen such a sharp fall? And over the quarters, we are handling -- I really don't understand how the communication has been. Like so far in the last con call, we were saying that realizations are not going to fall that much. But what we are seeing is a massive fall of INR 450 quarter-on-quarter realization.

I think I explained you, Mr. Kamlesh. Whatever I had to say and whatever something exceptional happens, I told you our footprint and wherever we are, I think -- I do not know which peer group you are comparing with. I'm not too sure. Maybe I think you have something in your mind. But I told you that our presence in some of the markets, which is heavy on nontrade, is high and that increased in last quarter. And there were reasons also for that. So I explained you that. That is what I think I have to say. Nothing more.

But like now going forward, have we been able to recoup all the fall in the realizations in this quarter? Where do we see our realization in the current quarter?

Yes. So as I said, in all these markets, we are in the competitive scenario. We are competing with other players. The way that market moves will move in that alignment only, right? And I told you the pricing scenario also, right? Because for us, I think priority in quarter 3 was to really ramp up the additional capacity which we had. And I think that was the right decision, right call, right? So that is now getting stabilized and things will come to resemblance, for sure. That is what we see and we have seen that in the last 2 months as well. This is what...

But if you can quantify how much -- what our current realizations are compared to Q3 average or whatever we have reported in this quarter?

No. Right now, we cannot quantify because still 2 months are left in this quarter. So let's wait for some time because there are volatilities in the market. So if I tell you something and tomorrow again, you'll ask me a question, then you had mentioned that. So I think that is not fair from my part. So I'll keep you updated. Only 1 month is over in this quarter. Things are moving in a positive direction. And hopefully, I think that direction will not change. This is what my conviction is today. But quantifying things as of today is perhaps I may not be able to.

We take the next question from the line of Parth Bhavsar from Investec.

Yes. Sir, I have two questions. One is, sir, what was your fuel on consumption -- fuel cost on consumption basis in Q3?

It was [ 720 per 1,000 kilocal ].

Sir, how much was it? I didn't get.

[ 720 ].

Sir, on kcal basis?

Yes, yes, kcal basis.

Okay. And sir...

And the fuel cost was [ 1.56 ], yes.

[ 1.56 ]. Okay. Got it. And sir, one more thing. Would it be possible for you to quantify the Gujarat sales maybe for the Q3 quarter as well as base year and previous quarter? Is that possible?

I think, this is not handy with me. We can talk on this later. Yes.

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

Yes. Finally got the opportunity. Sir, most of the question answers are again coming on the realization part. Sir, just to get a quantitatively better understanding, since 1st January till now, nontrade prices for us has gone up by how much, INR 15, INR 20-odd. Is that the fair understanding?

So, Shravan, this varies in different markets. And the range I would put is INR 10 to INR 15.

Okay. And in terms of trade, you said it remained at the same level.

Yes. Yes. Trade, I think we have been around 54%, 55% level. So this is what...

Yes. But now we are saying that the trade prices to also go up. So given that...

Likely to go up. Shravan, likely to go up.

Yes, yes, likely to go up, yes. But given that, sir, some of more capacity is still to come up and everybody will try to push the volumes for the March. So don't -- even we are considering that there will be some rollback in the month of March?

So that is what I was trying to make understand the earlier gentleman, Mr. Kamlesh, that whatever we say based on what we see today. I think there is a lot of volatility and dynamism in the market. And based on that, we'll have to take our call, business call, which we keep on taking. So definitive forecasting sitting today, I think it becomes very difficult. I agree with you.

Yes. Understood. Because the issue for us, why everybody is trying to harp on the same thing is because to make the number or the estimates as an analyst, this kind of a deviation at INR 200, INR 300, INR 400 makes our entire estimates goes on for a toss. So it will be difficult to us. So it become from buy to it can become a sell, from sell to it can become a buy. So that's why everybody is trying to understand why such a significant volatility in the prices for us. So that's the only thing. Sir, just more clarification in terms of total CapEx in 9 months at consol level is how much, sir? Is it INR 260 crores because INR 250 crores was there in 1H?

Yes, just hold on, Shravan.

Yes.

On a consol basis, including the various projects which we are doing in 9 months is about INR 350 crores. INR 260 crores, we are talking of only for the Durg expansion.

Okay. INR 350 crores. So -- and more another, we will be doing kind of INR 400 crores on Durg, and maybe if you can specify in terms of on a yearly basis, the maintenance CapEx would be how much? INR 200-odd crores for us?

No, no, maintenance of us is not INR 200 crores. It's totally INR 50 crores in a year.

Okay. Okay. So for FY '26 would be then INR 350-plus crores, INR 750 crores to INR 800 crores would be the total CapEx at consol level for the quarter.

We are -- that's why initially, it could be ending up maybe anywhere between -- may not touch INR 800 crores, within INR 650 crores to INR 700 crores, I guess.

Okay. Okay. Understood. And then, sir, on the conveyor belt, is there any update or it is the same what we said last quarter?

Yes, same status. So still it's in the final stages.

And in terms of the further expansion beyond this, the Nagor, Kutch, and Assam, so whatever we say to reach 30 million tonnes, so that stand remains same. And in terms of the net debt to EBITDA, that 3x, 3.5x that we will try to maintain?

Yes, yes, we would like to not cross that limit.

Okay. Okay. And sir, in terms of the cost reduction, so from here on, from Q2 would be difficult even for -- on the cost basis of -- because when you said the staff cost, so there also I want to understand more. Was there -- from Q2 to Q3, the number of employees, has there a decent decline? Or was there a salary cut?

So no salary cut, productivity improvement, and that is what we'll keep doing even going forward. So we don't do salary cut as well.

We take the next question from the line of Harshal (sic) [ Harsh ] Mittal from Emkay Global Financial Services.

Yes. Just one question. So we have -- we are already working at more than 90% clinker utilization. And our Durg Line 2, as mentioned earlier in the call, will not be coming before March of 2027. So what can be a safe assumption for the volume growth for FY '27, sir?

So, FY '27, we have some headroom in Surat, one, we have some headroom in Udaipur, second, we do have some headroom in even Jharli, and fourth (sic) [ third ], we have some headroom in Cuttack. So I think this is what we see that this will keep us on the growth path, right? So even next year also, I think we see a similar kind of growth, of course, contingent to the industry growth, right, but similar kind of growth even next year.

Sir, our -- so, are we sourcing clinker from outside or something like that? Because...

No.

Ladies and gentlemen, due to time constraints, we take the last 2 questioners in the queue. We take the next question from the line of Rajesh Ravi from HDFC Securities.

Yes. I just wanted to confirm the depreciation impact in this quarter increase. Is it totally on account of Surat?

Yes, basically, you're right. Surat got commissioned in the last week of September. So interest and depreciation increase is the capital-related cost increase on account of Surat as compared to...

This is totally for 1 quarter impact in depreciation because from INR 78 crores, it has gone to INR 85 crores. There is a sizable INR 7 crores, INR 8 crores, which we annualize it, then it becomes INR 36 crores and while the project cost for this expansion was, if I recollect, it was less than INR 300 crores. It is 1 quarter impact in December quarter?

There is some -- I was told that about INR 6 crores is on account of the Surat and some normal CapEx that has happened. And third is on account of the leasehold land depreciation also being charged.

Understood, understood, sir. And sir, could you give what was the clinker production for FY '25 consol basis? Clinker sales, sorry, not production, my bad, clinker sales, total full year.

7.23 lakhs ton.

7.23 lakhs ton. This was for the full year, okay? Because you told your CC ratio is at [ 1.44 ]. So are we looking to increase the CC ratio in FY '27? It was earlier in FY '21, '22, '23, you operated at [ 1.54 ] and more than that, now it has come down to [ 1.44 ]. So what is the safe assumption for next year?

I think our effort is to take this blended cement from 62% to about 66%, 67%. To that extent, our CC ratio will improve.

We take the next question from the line of Amit Murarka from Axis Capital.

Yes. So just wanted to clarify on the CapEx. I see that your November corporate presentation mentioned the CapEx number as INR 3,300 crores. So can you just clarify, is it INR 3,000 crores or INR 3,300 crores?

Yes, we had included some expenditure on the conveyor belt also therein. But otherwise, it is INR 3,000 crores only.

So the conveyor belt is added to that, but that's already going on, right, I mean, what you mentioned?

We are away. We -- that is not going on. That is stalled because of this issue of the land as we have been talking about. So that includes the expenditure already incurred plus the balance to be incurred, which is about INR 170-odd crores.

Okay. Okay. So if there's no progress on the conveyor belt, then it is INR 3,000 crores then?

Yes, yes, yes.

Ladies and gentlemen, with that, we conclude the question-and-answer session. I now hand the conference over to Mr. Vaibhav Agarwal for his closing comments.

Yes. Thank you, Ryan. On behalf of PhillipCapital India Private Limited, we would like to thank the management of JK Lakshmi Cement for the call and also many thanks to our participants joining the call. Thank you very much, sir. Ryan, you may now conclude the call. Thank you.

Thank you. Thank you so much.

Thank you.

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