Detailed Narrative
India Cements Integration: Tolling Model and Cost Alignment Roadmap
India Cements is being integrated via a tolling model — output rebranded as UltraTech and sold at UltraTech prices, with ₹200/ton marketing margin retained by UltraTech. Adjusted EBITDA for ICL is ₹458/ton. FY28 target is >₹1,000/ton. WHRS (21 MW), renewable energy (219 MW) and efficiency capex will take ICL from 3% to 86% green power by FY28, funded by debt and internal accruals targeting <₹50 crores net debt.
Clinker Conversion Reaches 1.49x — A Significant Efficiency Milestone
Clinker conversion factor jumped to 1.49x from 1.44x last quarter — a significant improvement that CFO highlighted as under-appreciated by analysts. This implies higher blending and lower per-ton clinker consumption, directly benefiting both costs and sustainability metrics. Lead distance also dropped to 370 km, contributing ₹24/ton visible savings.
Next Phase of Growth Being Prepared — Phase 4 and 5 Already in Pipeline
Management confirmed the blueprint for Phase 4 of organic growth is being stitched and will be presented to the Board before CY25 end. Phase 5 work has also started. Brownfield opportunities exist at India Cements locations. The company targets growing faster than 5-7% industry CAGR, with capacity set to cross 212 MTPA in the current phase. Cement demand runway extends 10-15 years with India at 295 kg per capita vs developed economy peak of 600-700 kg.
South India Pricing Stabilization Expected with Demand Catalysts
South India is expected to benefit from multiple demand catalysts — Amravati capital development, new Andhra Pradesh government infrastructure push, Telangana green shoots, and Tamil Nadu election-driven spending. CFO quipped 'South could be a new North.' Both management and MD confirmed consolidation in South should prevent negative pricing pressure.
Cables & Wires Business Progressing On Schedule
Major orders placed, key people onboarded, land leases being finalized in Gujarat. The project is on track for December 2026 launch with possible capex savings vs the ₹1,800 crores budget. CFO reiterated that this is the only non-cement adjacency and RMC has crossed 400 plants nationally.