INDIACEM — 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

Moderator · Conference Operator

MR. VAIBHAV AGARWAL — PHILLIPCAPITAL (INDIA)

PRIVATE LIMITED · Management

C4) The India Cements Ltd PhillipCapital India Cements November 7, 2022

NIanish Oswal

Versus last quarter, sir?

Manish Oswal

Secondly, sir, you comment about the industry turning into black in the next quarter.

So, how is the pricing after the festive season in the market?

ahead. · So, continuing on the power and fuel costs, so what kind of decline are we expecting in the third

So, continuing on the power and fuel costs, so what kind of decline are we expecting in the third

quarter on that number? · You see I am not expecting a decline in the cost of coal. Coal, you see, for example, if you were

You see I am not expecting a decline in the cost of coal.

Coal, you see, for example, if you were to import American coal, the lead time is 2.5 months.

So, I should have booked coal now.

The coal I have booked is at the current prices which will land 2.5.

So, for 2.5 months there will be no effective increase, decrease in the cost of coal.

What I meant was that the price of cement will go up.

The margins will reappear not because the coal cost is going down.

It is because the cement price is going up, which is what we expect.

PhillipCapital The India Cements Ltd India Cements November 7, 2022

Amit Murarka: · See the people do not, they wanted the invoice price to be respected, and you sell at the invoice

Also on volumes, like can you please share the number or break up in terms of whatever cement sales and clinker sales?

22.5 and 0.4.

So, 22.54 which includes 0.4 of clinker.

0.04.

And also like generally after the entry of Adani, like, generally, there is an expectation of consolidation in the sector and all that.

So, what are your views on that?

Like do you also think that there could be a lot of consolidation here.

So, far, I mean, as a service business as usual as of now even though --

And the last question is, also, there was some change in the discounting structure and pricing structure that was being attempted after I believe the change of ownership.

So, how do you think this will impact the price realizations generally for the industry?

See the people do not, they wanted the invoice price to be respected, and you sell at the invoice price, don't allow the sale at a lower price, and then compensate the dealer later.

This is what was suggested by the Adani.

Some companies have accepted and adopted it although everyone accepted it.

It is followed by some, by some not.

So, it's not industry-wide that this has happened then?

You see the attempt is industry wide.

But does it not reduce the price flexibility and like ability to kind of react to demand patterns and all that in case this happens?

Moderator · Conference Operator

Thank you.

The next question is from the line of Ravi, individual investor.

Please go ahead.

Ravi

My question is, can you please provide the RMC and shipping, windmill segment wise data quarter-on-quarter as well?

NIanage m e nt

RMC Q1 total revenue is 26.04 crores and EBITDA 1.46 crores.

Windmill, total revenue 5.66 crores, and EBITDA 4.44 crores.

Shipping 3.32 crores is the total revenue, and EBITDA of (- 1.39) crores.

The India Cements Ltd P PhillipCapital °tat* India Cements November 7, 2022

Vaibhav Agarwal

And RMC for current quarter was?

RMC for the current quarter was 29.16 crores of total revenue and 2.28 crores of EBITDA.

Thank you.

As there are no further questions, I now hand the conference over to Mr. Vaibhav Agarwal for closing comments.

Thank you.

On behalf of PhillipCapital (India) Private Limited, I like to thank the management of The India Cements for the call, and many thanks for supporting joining the call.

Thank you very much.

You may now conclude the call, Tanvi.

Thank you.

Moderator · Conference Operator

Thank you.

On behalf of PhillipCapital (India) Private Limited, that concludes this conference.

Thank you for joining us, and you may now disconnect your lines.

Questions and answers

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Dhun Building, 827, Anna Salai, Chennai - 600 002, www.indiacements.co.in — • The India Cements Ltd PhillipCapital "The India Cements Q2 & H1 FY23 Earnings Conference Call" November 7, 2022 P PhillipCapital ,„ The India Cements Ltd

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The first question is from the line of Manish Oswal from Nirmal Bang Securities.

Please go ahead.

Nlanish Oswal

Thank you for the opportunity.

My first question on our average coal cost per ton in this quarter compared to quarter one FY 23.