DALBHARAT — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
LIMITED · MR. RAJIV BANSAL – PRESIDENT & CHIEF
MR. MAHENDRA SINGHI – MD & CEO, DALMIA
CEMENT BHARAT LIMITED · MR. DHARMENDER TUTEJA – CFO, DALMIA BHARAT
MR. DHARMENDER TUTEJA – CFO, DALMIA BHARAT
LIMITED · MR. RAJIV BANSAL – PRESIDENT & CHIEF
MR. RAJIV BANSAL – PRESIDENT & CHIEF
TRANSFORMATION OFFICER · MS. ADITI MITTAL- HEAD INVESTOR RELATIONS
MS. ADITI MITTAL- HEAD INVESTOR RELATIONS Dalmia Bharat Limited May 10, 2022
Questions and answers
Moderator · Conference Operator
Thank you very much.
We will now begin the question-and-answer session.
The first question is from the line of Sumangal Nevatia from Kotak Securities.
Please go ahead.
Sumangal Nevatia
First, on the cost front, so overall very good cost management during the quarter, just want to understand what sort of cost inflation do we expect in the coming quarters especially on the variable cost side on the coal front?
And second, in 4Q just some clarification given diesel price was relatively flat.
What led to almost Rs.
80 increase in a per ton basis for the freight cost?
Mahendra Singhi
I would say that still the petcoke prices are at the level of Rs.
250 or so and imported coal price was also very high.
So, it looks like that the cost may go up to some extent in this quarter also, and maybe another quarter also, difficult to predict at the moment.
But of course, our journey to announce green fuel would continue and that may to some extent mitigate the cost increase.
And on this cost of freight, logistic cost, yes, we had, because of high quantity, we had moved some quantity by rail and some more steps were there on account of which this freight cost has gone up.
But we are confident that we will be able to maintain the unit cost freight cost.
Dalmia Bharat Limited May 10, 2022
Sumangal Nevatia
So, just on the coal cost, I mean, we can see its quite strong, but April has already gone, and we generally maintain 30 to 40 days of inventory.
So, is it possible to share some more quantification on the cost inflation that we are seeing at least for 1Q.
Mahendra Singhi
I would say that the prices of coal in our case would be around $220 to $230.
Sumangal Nevatia
Second question, on the CAPEX and the expansion, I missed, what are we budgeting for FY23, as far as CAPEX is concerned?
And overall we had announced almost 10,000 of CAPEX, last year.
And there should be some cost inflation on the overall this front as well.
So, for us to complete these 48 million tons of capacity, now what estimates are we running?
Mahendra Singhi
For the year FY23 we are expecting that we should be able to spend Rs.
3,000 crore to Rs.
3, 500 crores which will include some ROI CAPEX also but mainly on the growth plan.
And we are quite confident that CAPEX in FY23 and FY24 would take us to 48.5 million tonnes by March ‘24.
Moderator · Conference Operator
Thank you.
The next question is from line of Mayur from HDFC Life Insurance.
Please go ahead.
Mayur
The WHRS and solar capacity, which we are adding in FY23, it's a bit aggressive one, which we see in your presentation.
What is the kind of cost savings that we are estimating in coming years because of this aggressive addition of power?
Mahendra Singhi
I would say the different or the delta between the power rate which will come either from CPP or grid, and the WHRS and solar would be ranging from say Rs.
6 to Rs.
7.
So, accordingly, it will make the impact.
Mayur
And any additions after that basically if I can get some idea of what is the CAPEX that we are doing in FY23, and maybe in FY24 also, where we can expect basically in the next two years, this total capacity of power going to?
Mahendra Singhi
Like in FY23, we will be adding about 41 MW of the WHRS.
And on solar plant, it will be about 66 MW.
Mayur
Yes that is there in your presentation, I am asking about ‘24.
I mean, you must be having some long-term plans for this, right.
Mahendra Singhi
Yes from WHRS point of view, I think we will be completing all of our projects all of our kilns will be treated with the WHRS except one kiln where we have the requirement of waste heat.
And on solar, yes, gradually, we will ramp up.
Dharmender Tuteja
Yes, to be specific, Mayur, FY23 savings are close to about Rs.
150 crores, which we expect on this power.
And also, in FY24, close about Rs.
240 crores.
Dalmia Bharat Limited May 10, 2022
Moderator · Conference Operator
Thank you.
Next question is from line of Indrajit from CLSA.
Please go ahead.
Indrajit
Two questions, first, we have seen large inflation across all construction materials be it cement or to an extent lesser for cement, but more for steel, PVC, etc. Are you seeing any impact on IHP demand as a result of that, mainly on the Tier-II or Tier-III or rural regions?
Mahendra Singhi
I would say that yes, there is a little impact and more particularly people are quite apprehensive about the prices of steel, to some extent maybe in Tier-II and Tier-III cities, it may be adding impact, and another impact may also come because of interest costs may go up for housing loans, but this is what is the impact of the inflation.
Indrajit
So, would that change our like FY23 industry demand assumptions in terms of growth in any way?
Or do you think we are still on track to do high single digit kind of demand growth for the industry for the years?
Mahendra Singhi
With our interactions with certain rating agencies, what we understand is that the growth demand is projected between 6% to 8% and we expect that our growth will be better than that.
Rajiv Bansal
See this is too early to say how inflation is going to impact the housing demand, because housing demand has been kind of muted for the last many years.
And there is a lot of pent-up demand after pandemic.
So, there is going to be balance and the inflation is a lot of it is supply constraint because of lot of geopolitical issues also.
So, depending on how that plays out, I think it's too early in the day to predict as to how this will impact.
But honestly, if you ask us, given where we stand as a country in terms of our growth trajectory, and I think, even if there is a mild inflation, I do not see an impact on the demand for infrastructure spending or for housing and other things.
So, we are working on that model right now, our assumptions are that we will see strong cement demand at least for the next couple of years.
Puneet Dalmia
I agree with you Rajiv.
Indrajit
And I just want to clarify one number.
So, for 4Q our coal cost was blended $181, and the spot prices that we are procuring or at inventory is $220 to $230.
Is that correct or there is some mistake in my understanding?
Mahendra Singhi
No, it’s correct.
Moderator · Conference Operator
Thank you.
The next question is from line of Girish Choudhary from Spark Capital Advisors.
Please go ahead.
Girish Choudhary
Firstly, how are you thinking of inorganic opportunities?
There were media reports of Dalmia bidding for Holcim asset.
So, in terms of balance sheet size, how will you address this?
And as a follow-up with the second largest group, also changing hands, how do you see the dynamics change for the industry and for you, specifically and also your read on the valuation?
Dalmia Bharat Limited May 10, 2022
Rajiv Bansal
There have been media reports about the Holcim wanted to sell their stake in Ambuja and ACC.
And I would say that it's a great asset that the company has built on.
They are large players in country and cement sector is actually looking good.
You know, what gives us a lot of confidence, and also actually excites us is the fact that there are so many new players who are new to the cement sector also looking at these companies.
The fact that they are looking at investments in cement and ACC and Ambuja are not cheap assets, if they are looking at investing in this sector it just shows how important this sector is for in the next couple of decades for India’s growth, and what their expectation on the sector is going to be.
So, it gives a lot of confidence in terms of our growth trajectory, we are talking about 110 to 130 million tonnes.
And we created our position saying that, look, the sector is going to get rerated.
There is a lot of potential of this sector in the country.
And any developed consolation would definitely help and also be able to command prices and also be able to pass on the inflation to the customer.
So, on the news of Dalmia looking at it, I think it's all media speculation I would not like to comment on the media speculation.
We have a very active M&A function which looks at all the opportunities that come our way.
And ACC, Ambuja as a part of that would keep evaluated, but again, we are not commenting on specific thing, question of how we will absorb right in the balance sheet, I think that is for the details to be worked out as and when we have the opportunity.
So, at this point I cannot comment specific on this opportunity.
Girish Choudhary
Secondly, if you can just talk about the Murli asset ramp up, how is the ramp up like and what is the cost structure or profitability of the asset, let’s say your average profitability at the company level?
Mahendra Singh
I would say that our team has been able to commercialize this project plant which was closed for years and years, and had lot of problems, but then we could first restart it and then we could start commercial products also in the month of January.
Now, ramping up is good and we do expect that capacity utilization of 60% to 70% during the year FY23. Cost has gone up mainly on account of energy prices, but otherwise on CAPEX front on various operating parameters front, in a year's time it will be almost equivalent to what the Dalmia Groups best figures are.
Girish Choudhary
So, one can expect for more than Rs.
1,000 per tonne level even from the CAPEX, is that the understanding?
Mahendra Singhi
So, it will be the function of prices in the market, the energy costs that will decide but at the same time we have got, yes the incentive available with us, like what Mr. Dharmender highlighted so that will help us in getting the right EBITDA.
Girish Choudhary
Lastly, just on the capital allocation front, it's been a while since you partly offloaded the IEX stakes, so any thoughts or timelines on the remaining part of the investment.
Dalmia Bharat Limited May 10, 2022
Dharmender Tuteja
This is being reviewed and of course at the appropriate time, definitely calls will be taken to offload as and when necessary.
Specific timing, we cannot comment right now.
Rajiv Bansal
See, if I can just add, see IEX is a public company and we are also public company, so I cannot comment on the timeline, but I think we have clearly demonstrated our intent to offload all the non-core Assets.
And this part if you look at it we have done the refractive business restructuring, Dalmia Sugar also has got fair value.
So, I think in terms of the journey, I think we have fully committed journey, cannot comment on the timeline as Dharmender is rightly saying, but we are Net Debt / EBITDA (-0.6).
So, as and when we need the money for expansion, and we also have to ensure that we have a good leverage on our balance sheet so weighted average cost of capital comes down.
So, I think considering many factors, we would take the right call on the timing part, but definitely we are committed to making a difference, we are placing in company.
Moderator · Conference Operator
Thank you.
The next question is from the line of Pulkit Patni from Goldman Sachs.
Please go ahead.
Pulkit Patni
I just wanted to understand, with this change of hands at Holcim, do you think it changes anything for the industry and for us?
And related question is, our talking about sort of hiatus in capacity expansion after reaching the 48, which itself is substantial, I don't deny it, had that got anything to do with this change of hands at Holcim.
So, if you could address both of those?
Rajiv Bansal
Would it change anything in industry dynamics, I think would depend on who buys it.
If it is bought by if we believe media report, as we understand right now.
So, for example, hypothetically, Ultratech, buys it, it will lead to more consolidation in the industry.
They will have to offload the assets because from CCI Perspective so we will have to see how it plays out.
If, say for example, a new player buys this asset, then it depends on you know, because they are going to leverage the balance sheet, they also want to look at, it's not a very cheap assets, it’s an expensive assets.
So, what does it mean for the pricing in each of the sectors or each of region it operates, so I think this will definitely change some of the dynamics, very difficult to comment on exactly what will happen, because a lot will depend on the price at which it is bought, who buys it, and what their future strategies would be around it.
So, I think it would be too early, to be able to comment on that, at this point of time.
In terms of what we have said we put a shortfall, I think that many factors are playing into it, right, you know, there is too much volatility in energy prices, the world doesn't seem to be the same place as we saw it probably about four or five months back.
There is a lot of geopolitical tensions, China shut down, supply chain disruptions, inflation is going up, interest cost hardening.
And on top of that news of consolidation in the industry, I think there are a many factors, which are considered when you look at a holistically when you look at the road map so while we are committed 110 to 130 million tonnes, we still believe in the vision and we are working towards Dalmia Bharat Limited May 10, 2022 that.
I think we decided to just delay our announcement.
And if you look at it, we also have been trying to tie up our raw material security we have started bidding for coal block, we have started bidding for limestone blocks.
So, in line with our strategy, we are already taking a lot of steps.
But I think we just decided it's prudent to delay the announcement of further expansion beyond 48.5 because we want to see what happens on some of these macro factors and also on the consideration view, and then it will be the right time to announce.
So, I think it was just we felt it was too immature to announce anything at this point in time.
Moderator · Conference Operator
Thank you.
The next question is from the line of Ritesh Shah from Investec.
Please go ahead.
Ritesh Shah
My question was pertaining to the capital allocation framework that we had announced in last July, you had indicated target ROC of 14% to 15%.
And you had also indicated that basically, my question is, is this number the same basically, if you had to look at any inorganic opportunities.
And I think there was also asterisk that was put on the target net debt to EBITDA, which was less than 2x that there could be a deviation in case of any inorganic opportunities.
So, just wanted to understand two numbers ROC and net debt to EBITDA if at all for any inorganic opportunities, if we had to chase?
Rajiv Bansal
When we spoke about ROC, I think we believe that this sector would deliver ROC of mid-teens And there is no data point that I am seeing, which makes it believe that it is not the case.
It could be volatility as we go along, because for example, the energy prices are so much, I mean that has bitten our cash flows and the returns.
And to that extent, we see volatility in the earnings.
But on a long-term view, if you ask me, I think 14% to 15%, is what we are working towards and I think it’s absolute achievable.
The question of what happens in case there is a large M&A opportunity which comes we regret it last time also when we announced the policy.
See over a 10-year period, we are committed to this one, if for any reason, suppose there is a great opportunity, which comes our way in terms of acquisition opportunity, just because we have announced a net debt EBITDA of 2, doesn't mean that we will start giving up on opportunities and it will lead to competition.
So, in terms of M&A, when you look at a long-term strategy, there are many things which come into play, this capital allocation framework helped us define what we want to do, define our intent, but there will always be a few exceptional lead and the whole idea is that when you make exceptions, you come out to everybody, say that these are the reasons that we have made an exception.
And these are reasons why you had do it and time duration to comeback within the framework.
So, I think the idea was to create more transparency and also to create boundary conditions for us to work with.
But it doesn't, we don't want to tie our hands and legs and say that because this is a policy and we can’t do anything beyond that, because as I told you even last year, when we announced this, I believe that this sector will see a lot of consolidation, because it's still a very Dalmia Bharat Limited May 10, 2022 fragmented market, the Top 5 players only have about 54% to 55% Capacity share.
And I think you will see consolidation in this industry.
We don't want to shut our eyes to an opportunity if it comes our way, because we also have a PAN India vision.
We also want to be a reasonable player, in every market that we operate.
So, if this helps us accelerate the journey, of course we would look.
Ritesh Shah
My second question is a more from a industry standpoint, I would like to hear Puneetji’s view over here.
We have been quite upbeat about the demand prospects in the country.
But given the way in which the energy basket has been moving up, and also the construction cost, how do you see the impact of price elasticity of demand like will it have a bearing on demand?
And if so, what impact it could have overall on the pricing environment, because both the demand and pricing are both critical.
How do you look at this scenario, if say crude hypothetically remains at $115, there is price elasticity of demand that is something this is real.
So, how do you balance the two variables?
Just a very hypothetical situation, but if the situation had to continue for next six months, how do you visualize it?
Puneet Dalmia
Let me just give you my eye level thoughts.
I think based on what we have seen in India, so far, even if cement prices move in the band of 20% to 30%, there is no elasticity of demand.
So, demand doesn't go up, if prices come down, and it doesn't fall because prices go up.
In the band of like, let's say, 20% to 30%.
If I look at the current situation where most of the building material prices have gone up, cement hasn't gone up that much.
But we are not seeing a drastic demand contraction yet.
In fact, I was even seeing the rural economy, Mahindra & Mahindra numbers were for April, the tractor sales were like 50% high on a YoY basis, almost like 89,000 tractors were sold.
So, I think I am seeing good signs in the rural economy.
I am also, even though March quarter is a good quarter our YoY growth in March has been 16%, as opposed to the whole year being 7%.
So, partly its seasonality.
But I think demand is going to be reasonably strong.
I also think that inflation is here to stay, I mean there could be some changes in the geopolitical scenario if the war gets over and depending upon how the Central Bank decides to balance growth versus inflation.
So, I am a little cautious about our ability to pass on the cost spike fully.
And I think H1 is going to be tough compared to last year, because last year, H1 was quite strong.
And I think H1 is going to be quite difficult.
But H2, hopefully things should be better than H1.
But on the volume side, I am not seeing a significant headwinds, I just see like, last year growth was 7% I think this year should be better than last year for sure.
But on the margin side, I am cautious, I am very cautious.
I think so far, there is a lag in terms of how much we can pass on Dalmia Bharat Limited May 10, 2022 and how soon we can pass it on.
And I think that condition remains challenging for the next six months at least, as I see it.
Ritesh Shah
Last one question for Singhiji, we have done a phenomenal job on green fuel, just wanted to understand on a Rupees per Kcal basis how should one look at it, does it do good, the overall rupees per kcal for the fuel cost?
Or is it like we are chasing ESG and hence, we are okay to spend a little bit more for ESG?
Mahendra Singhi
It will be always economical as well, broadly to be stable, and it will be maybe 30% or something lower than the fuel prices.
But it all depends on what are the fuel price is.
We are spending money for like plants and machinery so that we can use it in a right way as well we are also able to avoid usage of fossil fuels, which also helps us in bringing down our carbon footprint and making the globe better.
Moderator · Conference Operator
Thank you.
The next question is from the line of Amit Murarka from Axis Capital Limited.
Please go ahead.
Amit Murarka
My question is on the capacity commission schedule, so you have shared it WHRS, could you also lay it out for the cement expansion from 35.9 to 40 and then to 48.5?
Mahendra Singhi
Yes, like we said earlier, our capacity of cement would be 40 million tonnes by March ‘23.
And then rest would be commissioned in FY24 so that we become 48.5 million tonnes by March ‘24.
Amit Murarka
That I understand, and I was just like wanting to know if it is possible to have a 1H, 2H breakup, just as you shared for WHRS solar?
Mahendra Singhi
This balance, maybe 0.6 million tonnes would get added in the next three months in cement, and then balance would be the second half for the year FY23. And in FY24 maybe two or three million tonnes may get added in first half, balance in second half.
Amit Murarka
And just another question on capacity utilization.
So, it was about 65% in FY22 which is actually lower than industry and you have another 35% expansion lined up.
So, how should we think of capacity utilization in that context?
Mahendra Singhi
We are expecting that we should be able to do better in our volume in comparison to overall industry, both in South region as well as East and Northeast, and that may help us in improving our capacity utilization.
And we are quite hopeful that in time to come the growth of cement in India would be better in years to come and that will also help us in better capacity utilization, difficult to commit to any number but then yes, it will go on year-by-year.
Amit Murarka
And just a last question, which is on Murli, you mentioned that it will ramp up to 60% to 70%.
But what are we operating at right now?
Dalmia Bharat Limited May 10, 2022
Mahendra Singhi
Say around 55% to 60%.
Moderator · Conference Operator
Thank you.
The next question is from the line of Shravan Shah from Dolat Capital Markets.
Please go ahead.
Shravan Shah
Couple of data points, first of all our trade, non-trade share for this quarter and for full year and also the lead distance for fourth quarter and the for the full year?
Aditi Mittal
Yes, our trade mix for the quarter is about 65%, and the lead distance for the quarter we were at 318 kilometers.
Shravan Shah
So, the lead distance has gone up versus last quarter it was 298, so 318.
So, that would be the reason in terms of the increase in the freight cost.
Dharmender Tuteja
One of the reasons.
Shravan Shah
The other question is, just trying to clarify me if I am wrong, the CAPEX total plan that we announced was Rs.
8.500 crores to Rs.
9,200 odd crore.
So, out of that, how much already we have done till FY22, in FY23 we have said Rs.
3,000 crores to Rs.
3,500 crore we are going to spend.
And out of that roughly what, in terms of the WHRS and solar, how much are we spending in FY23.
Dharmender Tuteja
Yes, FY22, we spent about Rs.
1,900 crores and FY23 budget as we check it, it is about Rs.
3,000 to Rs.
3,500 crores.
And FY24, another about Rs.
3,500 crores to Rs.
4,000 crores, balance will go in the coming years, which is also the cost that's incurred but cash flow wise it gets deferred to slightly lesser after the commissioning also.
Shravan Shah
The other question is in terms of the, in the previous question, you have answered, if you can help us slightly better in terms of the upcoming capacity, which is there.
So, you say, 0.3, 0.6 million to come in the next three months, but if you can open the presentation page 7 and if you can help us, would be better which region would be coming here for in FY23, 4 million tonne that will be coming 4.1, and the next capacities.
So, that would be helpful, because there is not much clarity on that part.
Aditi Mittal
Just I may answer that, all of Greenfield and Brownfield will come in FY24, the 4 million tonne of cement if factored in FY23 is spread across regions, we will scale that out as we look at commercialization part of the cement debottlenecking
Shravan Shah
Sorry Aditi, your voice was breaking, if you can repeat again, I got a Greenfield and Brownfield will come in FY24. So, that is 3 and 1.7 million tonne will come in FY24 --
Aditi Mittal
And the 2.5 million tonne of Bihar will also be in FY24. The rest that comes in during FY23 is the debottlenecking which is across the plant.
Dalmia Bharat Limited May 10, 2022
Shravan Shah
Last one, in terms of the price increase in this April, so versus 4th Quarter average how much we have seen the increase on an average?
Mahendra Singhi
I would say there has been somewhat price increase on account of concentration in East and Northeast but there is hardly any price increase in South.
And East the price increase must be different in the states ranging from say, Rs.
10 to Rs.
20.
Shravan Shah
So, East only Rs.
10 to Rs.
20 increase, we have seen verses from the last time and South nothing, no increase.
Mahendra Singhi
You are right.
Moderator · Conference Operator
Thank you.
The next question is from line of Navin Sahadev from Edelweiss Financial Service.
Please go ahead.
Navin Sahadev
My question was on the CO2 emissions.
So, for the year, you said, we have done about 489, versus I think we were at just about 492, last year.
Our target is to I think go up to almost 373 by 2030, which implies a very stringent target of a reduction of 3% CAGR.
This year, it's less than 1%.
So, in the context of blending ratio that we were trying to improve, where are we and how do you see this CO2 per ton reduction roadmap?
Mahendra Singhi
So, two things, 1) Since we have started the old plant of Murli as well as the old plant of Kalyanpur which is DDSPL, on that account, in those two plants the CO2 emissions were higher than compared to our all-modernized plants.
And that's why this year we could see only little improvement in CO2 reductions.
And now, already all actions have been taken for bringing down the CO2 emissions in these two plants, which we will be able to see results in next two years.
And 2) on making low carbon cement or the blended cement actions are on and then we are quite hopeful that we will be able to make good inroads more in the next two years.
Navin Sahadev
If you have the blending percentage handy with you, or I could take it later.
Dharmender Tuteja
It is 78%.
Navin Sahadev
My second question then was about this alternate fuel or green fuel, as you call it, and very commendable improvement there from 8% to 16%.
I wanted to understand typically, if you can quantify the savings that it would have generated in this journey from 8% to 16%, that's one part of the question.
The second is, as we try to increase this use of alternate fuel, technically, and I could be wrong, but technically, there is usually some hit on the output of the kilns typically, that happens.
So, first of all, are we working towards any sort of upgrades or does it further require any modernization or upgradation to increase this usage further to let's say, 20% to 25%, and how geared or prepared are we on this one to handle that?
Dalmia Bharat Limited May 10, 2022
Mahendra Singhi
First let me tell you that whenever we take up such projects, then we do try to understand the technology possibilities as well as the peoples training.
So, we have done both and that's why we have been able to ramp up.
Initially when we start using at higher percentage output impact does come, but then with various improvements in processes also as well as the stabilization of the equipment which we put in, we are able to manage that.
And, I may tell you that we have become the first in the industry to put up a chloride bypass system on account of which also we could use more and now industry is also following.
So, that's also good part.
And we are hopeful that with all actions which we have taken for 1) training our own people, 2) getting the right material and 3) putting up the right plants with the technology, we will be able to use higher percentage.
Dharmender Tuteja
So, for the full year it will be close to about Rs.
200 crores, and the last quarter itself, it could be around Rs.
90 crores.
Moderator · Conference Operator
Thank you.
The next question is from the line of Prateek Kumar from Jefferies India.
Please go ahead.
Prateek Kumar
My first question is on the expansion output post FY24, which you said is a pause, as of now.
So, does it, I mean as I understand these expansions were in North and Central North.
So, does this impact like I mean, there was this change in MMDR Act for which I think you were looking to expand faster for our lease lines.
So, does anything changes on that front?
Mahendra Singhi
As far as the 48.5 is concerned, this is all in our existing region, where we have all right resources.
So, there is no impact on that.
Prateek Kumar
No, I am asking beyond 48.5.
Mahendra Singhi
So, that’s why, we are exploring various possibilities.
And we have been also able to get few blocks also, like one block in Rajasthan which was highlighted in last call.
So, both actions are in the process and surely when we quantify and concretize will share with you.
Prateek Kumar
Secondly, what will be our fuel mix right now?
And when we say that our cost of fuel went up from 158 to 181, does this also include some implied domestic coal and green fuel prices or it just for imported coal.
Mahendra Singhi
So, this price is in relation to the petcoke which we consume Indian as well as the imported coal.
Dharmender Tuteja
The fuel mix, primarily petcoke is 64% and rest of the fuel other than petcoke is around 36%. -
Mahendra Singhi
And this will be quite dynamic depending on the prices of imported coal or petcoke as well as the availability of Indian coal.
Prateek Kumar
So, 36% includes domestic coal and imported coal both.
Dalmia Bharat Limited May 10, 2022
Mahendra Singhi
Yes, as well the green fuel.
Prateek Kumar
And my last question, while you alluded on year-on-year growth for FY22 like South grew double digit, East saw a small decline.
Can you highlight the same for like 4Q?
For fourth quarter, how did the South and East region perform when you had like a 3% growth?
So, how did the region performance was?
Mahendra Singhi
So, I would say that we have done better in South and Northeast.
And in East we could recover the losses which we had earlier.
Moderator · Conference Operator
Thank you very much.
Ladies and gentlemen, we will take that as the last question.
I now hand the conference over to Mr. Dalmia for closing comments.
Puneet Dalmia
Thank you, everyone for joining the call.
I think, we are ending on a good note in a tough year.
And I think, as we step into the next year, there is a lot of action in our sector, and some headwinds continue.
But I still continue to remain quite bullish.
Our expansion plans are on track, even though there is inflation.
And we continue to believe in this sector.
And I think the best is yet to come.
Thank you again for joining and thank you for all your feedback.
I look forward to continued engagement with all of you.
Thank you.
Moderator · Conference Operator
Thank you very much.
On behalf of Dalmia Bharat Limited that concludes this conference.
Thank you for joining us, you may now disconnect your lines.
Thank you.