Star Cement Limited (540575) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Star Cement Q4 FY '21 Conference Call hosted by PhillipCapital (India) Pvt. Ltd. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Pvt. Ltd. Thank you, and over to you, Mr. Agarwal.

Thank you, Janice. Good evening, everyone. On behalf of PhillipCapital (India) Pvt. Ltd, we welcome you to the Q4 FY '21 and FY '21 for Star Cement. On the call, we have with us, Mr. Sanjay Gupta, our CEO; and Mr. Manoj Agarwal, CFO of the company. At this point of time, I hand the floor to the management of Star Cement for their opening comments, which will followed by interactive Q&A. Thanks, and over to you, sir.

Good evening, everyone. I'm Sanjay Gupta, CEO of the company. I would like to welcome you all to this earnings call for quarter 4 and for the financial year FY '21. I have with me, Mr. Manoj Agarwal, CFO of the company. He will take you through quarter 4 numbers and the full year numbers. After that, we will open the floor for an interactive session where you will be able to ask questions and we'll be happy to reply. I will request Mr. Manoj Agarwal to take you through Q4 and full year numbers. Over to Manoj.

Yes. Hi, friends. Very good evening. I, on behalf of Star Cement, welcome you all to our phone call for discussing our number of quarter 4 FY '21 and full year number of FY 2021. I'd like to clarify that we are discussing on the historical number, and there is no indication to invest. Having said that now, I will just take you through the Q4 number followed by full year number. Starting from clinker production during the quarter ended March 21, we have produced 6.30 lakh ton of clinker as against 6.14 lakh ton same quarter last year. So far as cement production is concerned, we have produced 8.99 lakh ton this quarter as against INR 7.78 lakh ton same quarter last year. That is a growth of around more than 50% -- 15%. Now I will take you through sales volume. During the quarter, we have sold 9.01 lakh ton of cement and 0.05 lakh ton of clinker as against 8.43 lakh ton of cement and 0.31 metric ton of clinker same quarter last year. There is a growth of around 7% in cement and degrowth in clinker. [indiscernible] if there was no restriction in movement of trucks imposed by state government due to the collect of bridge at Shillong bypass as we have already told you in the last meeting. As far as the geographical distribution of cement is concerned. In Northeast, we have sold around 7.46 lakh ton as against 6.45 lakh ton during same quarter last year. And as far as the outside Northeast is concerned, we have [ 41.62 lakh ] ton of cement this quarter as against 2.28 lakh ton same quarter last year. In terms of blend mix, it is almost 8% OPC and the rest is PPC. These are the quantity numbers of the quarter. Now I will take you through the financial. The total revenue figure this quarter is around INR 602 crore as against INR 548 crore same period last year. As far as EBITDA figure is concerned, this quarter we have done an EBITDA of around INR 113 crore as against INR 132 crores last year. PAT after minority interest is INR 85 crore as against INR 86 crore in the same period last year. On the per ton EBITDA front, it is INR 1,243 during this quarter as against INR 1,509 same quarter last year. This decrease in EBITDA on account of increasing transportation cost of clinker due to the collapse of that bridge. This is our quarterly numbers. Now I will take you through the full year numbers. During FY '21, we have produced 19.11 lakh ton of clinker as against 22.15 lakh ton last year. So far as our own clinker production is concerned, we have produced 25.04 lakh ton in FY '21 as against 26.47 lakh ton last year. As far as full year sales volume is concerned, during FY '21, we have sold 26.44 lakh ton of cement and 0.54 lakh ton of clinker as against 28.7 lakh ton of cement and 0.76 lakh metric ton of clinker last year. The total revenue for the whole year is around INR 1,718 crore as against INR 1,840 crore during last year. As far as EBITDA figure is concerned, total EBITDA this year is INR 361 crore as against INR 421 -- INR 424 crore last year. PAT after minority interest is INR 187 crores as against INR 285 crore last year due to the charging of exceptional item of INR 64.57 crore during this year and loss of sales in first 2 months on account of COVID pandemic. On per ton EBITDA front, without exceptional item, it is INR 1,337 during this year as against INR 1,434 per ton of last year. These are the quarterly and full year number. Now I request all of you that if you have any query, you can ask the same and I will request Vaibhav to moderate the queries wherever it's required if queries are coming. Thank you.

[Operator Instructions] The first question is from the line of Amit Murarka from Motilal Oswal.

So I guess my first question was around demand. So like while the industry this quarter has delivered a 20%-plus volume growth generally speaking and like you also had a new branding unit that got commission in Siliguri. So in that context, like why has the volume -- reported volume growth been lower at your end?

Yes. So I think there are 2 things, which I will highlight. Tactically, the FY '21 as a financial year was really marked by a lot of one-offs. So as -- so April and May, obviously, everybody else faced the same problem, which we had because of pandemic and the lockdowns, which we have faced. But the few things, which have impacted specifically our volume is the collapse of the 2 bridges, the damaging of 2 bridges, which we are connecting Meghalaya to Assam. And as you know that most of our clinkers -- all our clinker facilities are there in Meghalaya. And Assam is the 60% of our total volume, right? So that has actually taken about 4 months' time in terms of getting it complete and a new bridge has already been constructed now, which is already operational. So that has largely restricted the volume -- the movement of clinker to our branding units. The bridge has an adverse effect on entire cement production and sales. So that is one of the major reasons as far as the reduction in volume or overall volume reduction in FY '21 is concerned. Yes, in terms of demand, I think market also has witnessed a good demand even in spite of the pandemic and in spite of the lockdown, which FY '21 has seen. I think the overall cement demand has grown by at least 7% in FY '21 as compared to FY '20.

Okay. Got it. And also on costs like there has been a sharp jump on the cost front as well in this quarter. What is that attributed to? I'm talking of the Q-o-Q increase, 4Q versus 3Q increase, in cost?

So if you look at it, the cost in terms of -- the big increase, which we have seen in cost is largely on account of freight. And that can also be attributed largely towards the raw material cost of freight increases, which has happened because there is only some small supplies, which we are moving from a separate bridge, and the cost was tremendously higher at that point of time. And even -- so -- and during that particular 3, 4 months or 5 months' time, it is approximately from the month of November been deadlocked until the month of January. So in those 4 months' time we have seen unprecedented increase in freight cost and whatever clinker we could bring, we had to service the market because the dealers that had to be serviced in whatever amount of quantity of cement we can supply. So that has impacted the volume, and that has impacted the freight cost. The second most, I think, visible cost pressure, which we have seen is largely on the PP back -- the PP prices have also -- have been skyrocketing. So there has been a cost pressure on that. But I think coming in the month of -- from April onward, I think most of the things have normalized. The freights have also normalized. Barring the fuel price hike, which we have seen over a period of time, normal freights have already started kicking in. And that -- and even the supplies have been restored. So we hope that going forward, these cost pressures will normalize.

Sure. And the last question is on the pricing trends. So like generally, we have seen weak demand in the last few months, but prices have still been holding on. So could you elaborate on the trends that you are seeing in your markets with Northeast as well as for Northern Bengal?

Yes. So largely, the prices have been stable. This -- even if the weak demand in terms of April and May. There is some weakness, certain weakness, but prices are holding on. Yes, I think in the month of -- in the first 10 days of June, we have seen some reduction in price in some pockets of Bihar and Bengal, but Northeast prices are stable.

Sure. And has the demand also improved in the first 10 days of June?

No, it's still -- I think the same trend continues, whatever was prevailing in the month of May, because there has been some lockdown extension in even in Northeast, certain states in Northeast have extended the lockdown till 15th of June, even in West Bengal, the lockdown has continued until 15th of June. They are getting relaxed. But I think the pace of the relaxation, it will take a little bit of time there. I think towards the end of June, the clinker is expected to become more normalized.

[Operator Instructions] Next question is from the line of Raj Nahar from [ Manikan saven ].

My just one question is that about the coal. Are you getting the coal from imported coal or from where are you getting the coal? And how much pressure is there on the price increase?

So we have been sourcing all our coal requirements from Eastern coal fields. And the prices are stable, we have not seen any price increase, unlike the imported coal price increase which has happened. So for us, the price of coal remains stable.

What is now landed cost? Can you disclose?

It is somewhere between INR 7,500 to INR 8,000.

[Operator Instructions] The next question is from the line of Shikha Mehta from Equitree Capital.

I just have a couple of questions. Can you tell us the utilization levels for the quarter and for the full year.

Cement utilization is around 68% in this quarter. And whole year, it is around 58%.

Okay. And sir, could you also comment on like new capacities coming up in the Northeast and Eastern region?

Northeast, there is -- immediately, there is no capacity addition taking place in [indiscernible]. I think we are going to set up a 3-million ton clinker addition plant. That will take at least 3 years' time from now. In between 3 years, there is no capacity, which is under pipeline. As far as the East is concerned, in next 2, 2.5 to 3 years -- in 2 to 3 years' time, the capacity -- planned capacities are somewhere around 12 million to 14 million tons, which are going to come up in the Eastern India.

Okay, okay. And do you think there will be a supply glut, at least in the Eastern region that [indiscernible]?

I'm unable to hear you presently. If you can be a little louder, please.

Certainly.

Yes. Now I can hear you.

Yes. I was just asking whether you see a supply glut taking place within your capacity additions in the Eastern region? Do you think the supply will be stronger than the demand for at least a certain period of time?

Doesn't look like. First, as I'm saying, even in FY '21, Northeast cement demand has still grown at 7%. The East India overall cement demand in spite of the pandemic and in spite of the lockdowns and everything else, FY '21 has seen an overall cement growth of around 5% to 6% as against the [ all India ] cement demand growth of flat to around 1% or 2%. So we hope that the overall cement demand growth in Eastern India will take care of the supply, which is going to get added in the next 2, 3 years.

Right. Okay. And can you comment on our capacity addition plans over the next 2, 3 years?

So we have 2 things as of now and you know that we have already commissioned our Siliguri plant, 2-million ton grinding plant. And now we are working on a 3-million ton clinker addition plant in Meghalaya. Along with that, we are setting up a 12-megawatt WHR plant. So these 2 are in horizon of 2 to 3 years these 2 plants are going to come up.

[Operator Instructions] The next question is from the line of Milind Suresh Raginwar from Centrum Broking.

My first question is the Siliguri grinding unit in the fourth quarter, will we see some utilization there? Or was it still under the trial run?

No. We have already commenced the commercial operation of Siliguri grinding unit. But in the first 2 months, we did face a lot of teething problems there. The utilization is pretty insignificant in these 2 months. We hope to see the full capacity [ late ] coming up in next -- in FY '22.

And as of date, is it starting or -- I mean in the first quarter also we'd see contribution negligible from Siliguri?

No, I mean the first quarter, the Siliguri has already come back. But it has come back to -- we are having at least 40% of capacity utilization at this point of time. But now the demand is also, is an issue because we have seen rains already has started picking up in the North Bengal part of it and also in the Northeast. So that is strictly the capacity utilization. But from a plant perspective, the plant is fully ready to produce at 100%.

Okay. But fourth quarter, it was not available. That's what we can say, right?

For the quarter itself, I think we have only done about 1 lakh ton of production [indiscernible]

I'm just trying to gauge, sir, was it possible to buy clinker from local partners in East and ramp up the volume that we have forgone in the fourth quarter? That was my limited point there. Was that...

I don't think that opportunity was available to us. As I said, we have only done about 1 lakh ton. We could only produce about 1 lakh ton of cement in the entire quarter from Siliguri plant.

The second question is, sir, about the coal auctioning at Meghalaya. Has that restarted? And if it is, is it auction or is it at the old rates only?

No, it is going to be auctioned. There is a auction process, which is getting started now. The total quantity of coal is somewhere around 3 lakh ton there. But that is taking its own time. So we are not banking on that, and we are still sourcing the coal from Eastern coalfield. But as and when it comes, if it is within the -- our estimated price range, we will definitely participate.

And currently, we are 100% of our coal from [ Eastern part ]. Is that understanding correct?

We are sourcing 100% coal from domestic auctions.

I see. Sir, on the capacity side, I just wanted to understand the enhanced capacity post Siliguri on the cement side would be INR 5.5 crore, INR 5.4 crore. Is that the correct understanding?

So as of now, we -- our total capacity stands, the grinding capacity stands at 5.7 million tons.

Including Siliguri?

Including Siliguri, correct.

And the backup clinker for that would be around 3 million tons, including Lumshnong and the [ PML ] unit?

Yes, yes, yes. That's [ between those ].

Just trying to understand, in that case, the clinkerization unit now, what we understand is in the last time the commentary was, it will be commenced by fourth quarter FY '23. But what is now essentially the commentary is, that probably it will take 3 years from here. So is there any delay that way on the clinker availability? The new clinker expansion?

See the new clinker expansion is -- we are looking at around 3 million tons capacity to put up there. And so we are just doubling the capacity of clinkerization, what we have in Meghalaya. The only question is, so we have been trying to get the environmental things done as quickly as possible because without that, we will not be able to do any ground breaking. So that is taking time. I think that is the only piece which is beyond our control. And after that, once we do the ground breaking, I think within 24 months, we'll be able to complete the plant.

And that groundbreaking would be maybe another 2 to 3 quarters away? Is that a fair assumption?

At least 2 quarters away from now.

Okay. So then do we see that there will be some clinker shortage in the interim period from -- in FY '22?

Yes. We will be definitely having some clinker shortage because as we ramp up the capacity utilization of cement, definitely, we'll have some clinker shortage. We will be looking towards the Eastern players. There are a few suppliers which is available in Chhattisgarh [ and then we would like to force it ] from there.

Okay. And sir, on the line items, again, back to this Other Expenses, also have seen some escalation there on the -- I mean, on a run rate basis. Anything there that you've seen in Other Expenses?

The other expenses, apart from the power and tool and your freight costs, there are certain because you know that the investments were there in the Bengal and Bihar. So there we had [ political ] one-off item of around INR 9 crore or so. So that is there. Apart from there, mainly in -- apart from freight and fuel cost, freight cost has increased as we told that due to the bridge collapse, but there movement was restricted. And that donation thing -- one-time thing around INR 9 crore to INR 10 crore. So that is there.

No, sorry, even if I adjusted that, the run rate is coming up about INR 75 crores vis-à-vis the normal run rate of INR 2 crores. So I was just wondering where that -- or maybe I may take that off-line then. Yes. That is it from my side.

The next question is from the line of Ritesh Shah from Investec Capital.

Sir, my first question is how much are the incentives that were realized during the year? And how much is the outstanding right now?

The incentive [ is very much ] because it's a full subsidy, more or less, we have got the whole thing, okay? So which subsidy -- and GST funds are normal things, which we're getting, every quarter we are getting. So which subsidy are you talking about because there is no...

I want details on both subsidy, capital as well as transport.

Sure. So there is no transport subsidy outstanding at this point of time.

Okay. So it's only transport subsidy, which is there?

No, no, you're getting me wrong. I'm saying there is no transport subsidy outstanding with the government. All of the transport subsidies have already been received.

Okay. Okay. So was there any incentive received -- any subsidy received during the year?

No. During the year FY '21, I don't have that number as of now with me.

Okay. No, no, problem. No problem. Sir, my second question was, what is the fly ash costing right now for us, what is the sourcing arrangement? Is there any cost inflation on fly ash sourcing?

No, not really. Fly ash sourcing. I think there is no cost increase in fly ash. In fact, the cost of the fly ash is -- they are expecting it to get moderated because there is the railway and the power plant are allowing condition fly ash to be transported, which we have already started. I think that will have a positive impact as far as the fly ash cost is concerned.

Sure. Sir, the prior question, you indicated INR 7,500 to INR 8,000 per ton. Is this a landed costing? And what is the calorific value corresponding to this coal?

Yes. That is the landed cost of clinker -- sorry, coal. And the calorific value is going to be somewhere around 5,000 to [5200 ].

That is helpful. And sir, lastly, you indicated that we are waiting for the EC. is there any steps [ specifically ] approvals from locals or any village approvals, something which is required, we are waiting for that and hence the process is getting delayed?

No. See, see, if all these approvals actually take time. There are certain approvals, which we have to take it from the local committee. So we have 1 or 2 approvals already given -- until and unless we get some -- there is something called a [ ezata ] permission, which [ is put there ]. So until and unless we get that, that will take time. So we are expecting that to come up in about a month's time from now. And then we will take it up.

Okay. And sir, do we already have a limestone corresponding to this 3 million tons clinker? Like all the approvals already in place for that? Or is it something which is pending?

No, we have already -- we have a limestone with us. And I think as of now, [ whatever ] limestone will be around -- with the existing mines, which are operational mines will be somewhere around 100 million tons.

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

On the 4Q revenues, are there some other line -- some other non cement revenues also booked in? Because sequentially, if we look at the realization, the [ RP ] are significantly higher, both Q-on-Q and Y-o-Y, 12% higher Y-o-Y and Q-on-Q. So can you explain what is driving that?

No. I think the realization, which is there, you are right that the overall on a full year basis, it is only, I think the realizations are up by only 2,3 % and that is reflecting the price increases, which have happened. But that has -- there is no other income, which is getting -- having any impact on this.

In fourth quarter number, sir?

In the fourth quarter number also, we have seen that around the -- prices are somewhere around 4%, 5%. The increase is only 4%, 5%. But that is largely getting offsetted. It is not having any reflection on the EBITDA or any -- the margin because of the fact that in the fourth quarter, also, we have seen freight cost increases because of the transportation of clinker.

No, no, that is okay. But on realization, clearly on realization, the reported numbers appear higher, 12% Q-on-Q. So what is the actual price increase that you have witnessed in your market? That would not be more than 2% or 3% higher, I suppose.

No. I think in quarter 4, it was around 4 -- anything between 4% to 5%.

And the remaining 5%, 7% increase, what is that, sir?

Are you referring it to Q3 versus Q4? Or you're referring it to year-on-year?

Q3 versus Q4.

Q3 versus Q4. So Q3 versus Q4, yes, definitely, there is no other item, that's the price increase which is there.

But any provision, writebacks and all, which has been done in fourth quarter. That is why -- and why is that not -- again, first, is there any provisions which have been written back in fourth quarter, any discount structure and all because of volumes were subdued overall and all?

Oh, no, no. There's nothing like that.

And can you say what is the trade and nontrade mix and the [ leaf ] production mix?

This quarter is around 86% and 14% is a non trade. OPC is 92 -- PPC is 92% and OPC is around 8%.

For the year, sir?

Pardon?

For the year FY '21?

Yes. FY '21 [ it is there ] The same 86% or 14%. Same. Their PPC is 90% and 91% because [ 21 ]% is also PPC on a year-on-year basis, so 91% and 9%. 9% is OPC, and 90% is PPC.

Okay. And in terms of the clinker work which was pending, what is the status on same, sir, from 2.8 million tons to 3 million tons?

Can you be a little bit louder? I think I'm unable to hear your voice.

I'm asking for the clinker debottlenecking, which was to be completed by 0.2 lakh ton capacity increase, which was due. What is the status?

No, we have already [ clear acting ]. We have just came out of a shutdown and in the last -- so whatever remaining job, we have already completed it. Now the plant is ready to give to us in the [ remainder ].

Okay. And this is completed in April or May, in 1Q or earlier?

No, I think most of the job we have done it earlier in the last shutdown itself. Only remaining thing, which we had just taken a shutdown in the month of April and they have some [Technical Difficulty] [ steps to make up]

Okay. Okay. Great. So in terms of our clinker requirement, with this 3 million ton, obviously, when you would want to ramp up the Siliguri. Would you be requiring to pick up from market? Because even if I look at the fourth quarter, this is our clinker production, we have already touched 90% utilization in fourth quarter. So what is the strategy? And what is the costing that you would be looking at when you're buying clinker to operate the Siliguri plant?

So I think at this point of time, speculating this thing is not going to be [ valuable ]. We will be looking at buying clinker when we come to that. As of now, last year, we have only sold 2.6 million tons of cement, okay? And with 3 million ton of clinker, even if I go at 1.4 or 1.5, I will be able to do a [Technical Difficulty] [ 52-54% ] cement. So once we reach there, then only the question [Technical Difficulty] of [Technical Difficulty]

Okay, okay, yes, yes. And lastly, on the cost line items, we see almost all cost items have gone up sequentially. Input costs have inflated and even freight costs and other expenses. I understand you explained that the donations are there, but even if we adjust for that, then also, the EBITDA per ton number is quite -- the cost per ton numbers have inflated. So what is -- is it because of the Siliguri stabilization. Stabilization is still not done during the fourth quarter, and that is why the numbers got impacted?

No, see, please understand this. There are 2 cost lines which are definitely having an impact. One is, as I said, freight cost, even after the normalization of -- normalization after the bridge which has been commissioned, there is a full price increase which is happening all across, and that is going to impact the freight cost. That impact will definitely have. The other impact, which is significant, is that we see back -- [ pitting ] costs have actually gone up through the roof. That also has an impact on the overall packing material cost, that is having an impact. And there are certain one-offs, as Mr. Manoj was explaining, because elections are there in Assam, elections are there in Meghalaya -- sorry, Assam and also in [ Bengal ] right? And these are the areas where we operate, right? So there has been some one-off in terms of donations. Barring all that, we don't see any significant change in the cost line. Going forward, we hope that at least the freight cost line increases will get moderated. And we have fiscal vacancy how the [ clinker high ] prices will behave in the coming quarters.

Okay. Okay. Any guidance for the -- in terms of volume for FY '22, what numbers you're looking or looking at? And how has been the impact of COVID on 1Q numbers so far? In terms of volumes?

So I guess. Yes, we are looking at, at least a double-digit kind of growth in quarter 1.

Because that is a basis impact. Now Q-on-Q, what sort of impact you're looking at?

No. See, I think, yes, there is an impact in the month of May. April was smooth. But I think in the month of May that there is an impact of [ bon ] And even in Northeast also in the East also, still it is continuing because most of the states are actually -- extended their lockdown period. So that impact and we are going to see that impact through in the entire because May has already impacted units that by the time they come out of this lockdown it will be end. So there will be an impact. But hopefully, going forward, we will -- as in last year, full year, we have, I think, reported around 8% to 8% volume degrowth. Hopefully, we will not be -- on a full year basis, I can only tell you that we'll not be able to -- we'll be at least reporting a double-digit kind of number.

Okay. And lastly, and the last question on the WHRS, what is...

[Operator Instructions]

No issues. I'll come back.

The next question is from the line of Prateek Kumar from Antique Stockbroking.

My first question is, you mentioned about some price surge in month of June. Sir, can you quantify that number in the month of June?

Yes. So we've started seeing -- so there's some decline in the month of June of around 5 to 10, especially in the more asset.

Okay. And who takes up those units? Or I mean, they are largely -- right now defunct?

Yes. I could not hear anything in the initial part.

I was saying that we have given away those higher grinding units, sir. Who takes up for those units now? Or are they defunct now?

So I have no information about it. I think -- I don't think that there will be a decline. We'll be seeing some pick up for somebody else.

Okay. And sir, can you give that split of other expense for the quarter?

If you need to break up -- breakdown of the foreign dollar?

Yes, sir.

Breakout is INR 117.45 crore -- or actually it's INR 117.45 crore, and rates INR 116.14 crore.

INR 116.14 crore. All right. And sir, one question on this Nepal lockdown, it has been there right now for some time because of COVID cases there? So is it something that impacts the Northeast industry and for which there can be some pressure on prices in -- or there has been some industry pressure in the market?

So If you look at the business, Nepal, largely the Northeast player used to sell clinker there in Nepal, right? But there are 1 or 2. And as the capacity utilization in markets have improved over the period of last 2, 3 years, there is hardly any clinker available in Northeast, right? So I think the dependency of Northeast players in Nepal has actually reduced, and which is really insignificant at this point of time.

Okay. One last question on -- there was recently the mine incident also reported in [ Merali ]. Again, is this something that impacts our industry? I mean we are now anyway deferring from coal, but is this something again which impacts coal availability or some regulatory issue?

No. It doesn't matter because, for us, the coal bans can still further -- while declining is there, that will still continue. So there's no respite in that. So it doesn't impact us because we have already enforcing all our coal requirement from Eastern coal trades.

The next question is from the line of the Hiten Boricha from Joindre Capital.

Sir, I just missed the sales volume number for this quarter and the last quarter. Sir, can you please repeat the cement sale volume number?

Yes. Cement sale 9.01 lakhs and clinker 0.05, total, 9.06 lakhs tonne.

Okay, sir. For Q4? And for last quarter, sir, last year, same quarter, sir?

Last year, same quarter, it is 7 point -- 8.43 lakh tonne and clinker was 0.31 lakh [indiscernible] was 0.454 lakhs. Total is mixed. We are talking for the total, 8.73 lakh.

8.73 lakh. Okay. And sir, my next -- my question is on the CapEx spend. And as you mentioned, we are spending on 3 million tonnes of clinker plant times 1 megawatt of WHRS plant in the next 2 to 3 years, if I'm not wrong. So sir, what would be the CapEx we are spending on this, total CapEx?

The total CapEx we're going to spend on this around INR 1,250 crores to INR 1,300 crores.

INR 1,250 crore to INR 1,300 crore, which will be spent in 2 years, right?

Yes. I think the majority of it will be spent in 2 years because the clinker plant will take previous -- the WHRS plant will be available after 18 months only. The implementation of WHRS and the groundbreaking already happened, so I think we'll be able to complete in 15 to 18 months.

So majority of this CapEx will be spent in this year itself, right?

The WHRS CapEx majority will be spent on this year. But that CapEx is approximately INR 125 crores only.

Okay, INR 125 crores for the WHRS. And for the clinker plant, sir?

It is going to be somwhere INR 1,150 crores.

INR 1,150 crores. Okay, okay, okay, sir.

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

Basically, sir, my question is on premium cement. So how was the sale of premium cement during this quarter out of the trade sales? Hello?

So for premium cement in quarter 4, the overall -- I don't have a number as of now with me ready. But I think it was somewhere around 4% of the total volume.

4% of the total volume. And now sir, coming to the price per bag of cement. What is the difference there in the price per bag of cement that we sold in Northeast and in Bengaluru?

Firstly, I think -- so we have 7 states, right? So it's very difficult to give you a number in that way. Each state has got its own uniqueness in terms of prices because somewhere the transportation cost is higher, so price itself looks higher, right? So it is very difficult to give you a number that this is the Northeast number or a blended number kind of a thing because that will not be too reflection of what the prices are. I think in Bengal, the prices are somewhere around [ INR 383 ]. We have, I think, around INR 370 as of now.

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

Denise, we have one more question, I think.

[Operator Instructions]

Okay. Okay. No issues. I can explain the question. No problem. Okay. Thank you very much. On behalf of PhilipCapital, I would like to thank you manager, [ Mr. Shah Sumit ], for the call, and many thanks to the participants joining the call. Thank you, sir. Now, Denise, you may now end the call. Thanks.

Thank you. On behalf of PhillipCapital India Private Limited, we conclude today's conference. Thank you all for joining. You may now disconnect your lines.