Shri Keshav — Q3 FY25 earnings call

It is mainly because of very less net realization that we are getting, particularly in South, which is affecting our PAT margins. ... the EBITDA margin exclusively on cement, what the major plants are generating is upwards of Rs. 700 to 800 whereas in our cases it is less than Rs. 50.

Highlights the specific challenge of low cement-specific realization and its impact on PAT, despite overall EBITDA growth driven by solar.

Asked by Sanjay Shah

But to be on the safer side, we have taken 50% capacity utilization.

Provides a specific target for the utilization of the newly expanded capacity, indicating management's conservative outlook.

Asked by Deep Parekh

So, with the new kiln and the new machinery, two things are going to happen. One, the fuel consumption will go down on per ton basis, per ton of manufacturing of cement. Even the power cost is going to go down.

Explains the expected cost efficiencies from the new kiln, which are crucial for improving profitability, especially given current low cement-specific margins.

Asked by Deep Parekh

Q1-Q2 was definitely very bad. Q2 mainly because monsoons plus the central government had just formed. So, there was no impetus from the industry. Q3 was just beginning to show some kind of discipline in the volumes. But something really happened by the last week of December or first week of January. So Q3 I would say the prices stopped falling. That was one good thing about Q3. In Q4 what we are seeing, even though the price have not increased significantly but volumes, you would see improved volumes across for all the cement plants.

Provides a detailed overview of recent market conditions, demand seasonality, and the current positive trend in volumes for Q4 FY25.

Asked by Mahesh Sheth

Regarding expansion, yes, the board and company is thinking of adding more solar capacity. But as such as of now nothing has been finalized. Maybe by next quarter we will have some answer to our plans and expanding on renewable power.

Indicates potential for further solar expansion, which is a key differentiator and cost advantage for the company, with a timeline for an update.

Asked by Mahesh Sheth

So naked cement price of Q3FY24 is Rs. 3,761. Now it is Q3FY25 is Rs. 3,302. So, if you look at your realization standpoint, it has reduced by 8%. And industry has reduced by around 10% to 12%. So, we are at par over there. And similarly, the price compared to the previous quarter also, it has reduced by 1%.

Quantifies the significant year-on-year decline in cement realization, explaining the pressure on profitability.

Asked by Adity Roy

So, the volumes of Q3FY24 was 68,610 tons and Q3FY25 was 58,960 tons. So, there's a dip of around 14%. For the nine months I don't know exactly, but we have remained on the similar, it's around 100. I can do a calculation here. So, for nine months FY24 is around 1,74,000 and similarly almost 1,73,600 for nine months FY25.

Provides specific volume data, showing a YoY decline in Q3 and a flat performance for the nine-month period, clarifying earlier statements about dispatch growth.

Asked by Manan Vandur

Now what has happened is suddenly there is a huge increase in dispatches from January. And once we start doing the switchover, it might take about 25 days for us to shut down the kiln. So, we will not have any production of the clinker during that period. So had we taken this last quarter when the sales were low, it would have helped us. But now since we're reaching over 90%-95% capacity utilization, we don't want to have any kind of gap for dispatches.

Explains the strategic rationale behind the delay, prioritizing uninterrupted dispatches during a period of high demand over immediate kiln switchover.

Asked by Manan Vandur