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.

India Cements February 03, 2023

Ladies and gentlemen, good day, and welcome to the India Cements 3Q and Nine Months,

Rajesh Ravi: · And quantum, prima facie, what is the number you are looking at, broad sense?

And can you also share what is the segmental numbers of the shipping, wind and Trishul?

India Cements February 03, 2023

And can you share the EBITDA for three segments?

Yes and the trade notes at OPC and PPC, am I audible?

Okay.

And what was the fuel cost per kilo cal this quarter?

Okay.

And sir, how are you looking at this quarter?

Q4, what is the current run rate, consumption basis?

Okay, so 10% reduction is what you will see.

And, just what you mentioned that you are engaging certain variable cost friction.

So, what is your quantum of selling and by when do you see this can be realized?

And quantum, prima facie, what is the number you are looking at, broad sense?

Two more questions, if I look at employee cost run rate, it is around Rs.92 crore quarterly, which is almost 10% higher YoY.

Is it all inflation led or is there any increase in, you know, can you explain that.

And also, sequentially if I look at your other expenses while volumes are down, why would have other expenses gone up, because all costs would be trending lower, packaging cost etc.

Employee cost run rate is from Rs.92 crore, in this financial year versus at Rs.82 crores in the preceding year, Rs.83 crore preceding year so, any sense on what is driving this jump?

And how much is this increase?

What is the quantum of that one-off increase in this quarter?

And second is other expenses sequentially, while volumes have come off by 3% to 4%, other expenses are still higher, Q-on-Q?

Quarter-on-Quarter, this quarter versus September.

And this quarter, how much it is there?

Moderator · Conference Operator

Thank you.

The next question is from the line of Prateek Kumar from Jefferies.

Please go ahead.

India Cements February 03, 2023

Prateek Kumar

My first question is, can you throw some light on the demand and pricing environments in South like over past 3 to 6 months.

So, the pricing has failed to improve in the region even in the month of January and it probably has declined.

So, can you throw some light on the pricing environment in your region?

Moderator · Conference Operator

Thank you.

The next question is from the line of Vishal from IDBI Capital.

Please go ahead.

55-45, trade is 55%. · Rajesh Ravi:

Thanks a lot for the opportunity, this side, Vishal from IDBI Capital.

Continuing on this salary negotiation from industry point of view, I think media reports highlight like earlier, India Cement was doing it in a collective way for the full cement industry, and now it has been done at your level and only for your company.

So, does this indicate like some differences between the hike which wages, I mean like the people should get it or probably an employee should get it, and that is earlier used to be like in one sync, now it is not.

How one can read more into it?

Now, will this mean that it will be done separately by each company at their own level?

Moderator · Conference Operator

Thank you.

The next question is from the line of Abhimanyu Kasliwal from Choice Equities.

Please go ahead.

Abhimanyu Kasliwal

I actually had, I was going to ask you about volumes which were generated this quarter, because I joined up a little bit late, and the reason for that is this number was not on the con- call invite, which was given to the exchanges.

So, if you could just look into that.

My next question besides the volume is, if you may answer this, I am a bit, my question is your property, your land portfolio if you could provide us a little bit of idea as to whether the company has any plans for that.

I know that is not an operating activity, but our land portfolio is so large 28,000 acres or so.

So, we would love to get some kind of clarity on that.

Moderator · Conference Operator

Thank you.

The next question is for the line of Rajesh Ravi from HDFC Securities.

Please go ahead.

Rajesh Ravi: · And quantum, prima facie, what is the number you are looking at, broad sense?

I just have two questions, first on Springway what was the amount you had invested in this against the income that you have received, sales proceed you have received?

Sorry.

And against which if you have sold it for Rs.

294 crores.

And what is the income booked on same sir?

Okay.

What is the tax on the same?

No, why I am asking is these losses before this deal, there is a Rs.22 crores of deferred tax which is booked.

So, this should be on account of the profit that you have booked for the Springway.

So, just wanting to know if I exclude the Springway sale, what would be the deferred tax number for the quarter --?

Rs.

29 crore approximately is the deferred tax, tax which you have booked for the same.

Okay.

And coming to the land value which we have been earlier also alluding to, is it on the India Cements books you know the land that we have?

And when you say that you know unrealizable with the, you know when we were talking about unlocking value these would be from factories into city limits and all, where are these land parcels placed?

And we have been talking about that these lands monetization for the past 3, 4 years, but we haven't heard anything meaningful on them given that real estate market has improved.

What is holding back the company from unlocking some of these lands values?

But you would have some understanding which can share with us that what is the value if maybe next 2 to 3 years are conservative numbers that would be realizable, if those formalities get steered off?

And lastly how much is the gross borrowings in this end of December?

Moderator · Conference Operator

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, that concludes this conference.

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

Questions and answers

55-45, trade is 55%. · Rajesh Ravi:

Dhun Building, 827, Anna Salai, Chennai - 600 002. www.indiacements.co.in “The India Cements Limited Q3 Nine Months FY'23

Moderator · Conference Operator

Thank you, sir.

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

The first question is from the line of Rajesh Ravi from HDFC Securities.

Please go ahead.

Rajesh Ravi: · And quantum, prima facie, what is the number you are looking at, broad sense?

Can you share housekeeping numbers, what is the cement sales and clinker sales in this quarter, and cement production, clinker production?