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

DIRECTOR, INDIA CEMENTS LIMITED · MR. RAKESH SINGH, INDIA CEMENTS LIMITED

MR. RAKESH SINGH, INDIA CEMENTS LIMITED MR. VENKATESWARAN, INDIA CEMENTS LIMITED

Moderator · Conference Operator

MR. VAIBHAV AGARWAL – PHILLIPCAPITAL (INDIA) PRIVATE LIMITED India Cements Limited November 1, 2023

Ladies and gentlemen, good day and welcome to the India Cements Q2 & H1 FY24 Earnings Conference Call hosted by PhillipCapital (India) Private Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the call, please signal an operator by pressing ‘*’then ‘0’ on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital (India) Private Limited.

Thank you.

And over to you, sir.

Vaibhav Agarwal

Yes.

Thank you, Rio.

Good afternoon, everyone.

On behalf of Phillip Capital (India) Private Limited, we welcome you to the Q2 & H1 FY24 Call of the India Cements Limited.

On the call, we have with us, the entire Senior Management Team of the India Cements.

I would like to mention on behalf of the India Cements Limited and its management that certain statements that may be made or discussed on this conference call maybe forward-looking statements related to future developments and based on current expectations.

These statements are subject to a number of risks, uncertainties and other important factors that may cause actual developments and results to differ materially from the statements made.

The India Cements Limited and the management of the Company assumes no obligation to publicly alter or update these forward-looking statements, whether as a result of new information or future events or otherwise.

I would now hand over the floor to Mr. N Srinivasan, Vice Chairman and Managing Director of the Company, for his opening remarks, which will be followed by an interactive Q&A.

Thank you and over to you Srinivasan, sir.

Amit Murarka: · Any update on your expansion plans and the deleveraging plan, the land bank sale and all that?

I was saying cement prices have gone up in southern markets in October after quite a long gap.

I just wanted to understand like the sustainability of this price hike.

Generally, in the last couple of months like the demand has seemed to be softening in south versus like what we saw in the first half of the calendar year.

So, is it like a temporary thing or

The growth rate was almost 20% or so in the first half.

It's still good, but I mean the number seems to have gone down to close to 10%.

Any update on your expansion plans and the deleveraging plan, the land bank sale and all that?

Moderator · Conference Operator

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

Please go ahead.

Prateek Kumar: · You mentioned prices are strengthened and they are now reasonably strong -

You mentioned prices are strengthened and they are now reasonably strong -

So, I was saying that prices have gone up and you said there are like reasonably strong sale.

So, historically I know that the contribution of cement in construction of houses, etc., is low, but fairly enough, the builders association have revolted more in south than anywhere else in the country on the price increase.

This time it doesn't seem to be happening.

So, all that are like sort of settled now and likely to come.

So, that problem should not come forward.

For the reasons of competitive intensity, the prices come back or otherwise not because of the –

What will be our volume for the quarter and other details around RMC income and windmill income?

And the cement volumes for the quarter for the Company?

Moderator · Conference Operator

The next question is from the line of Parth Bhavsar from Investec.

Please go ahead.

Parth Bhavsar

In the last few calls, we've been talking about some of the operating efficiencies that we were planning to bring in.

So, is there any update on the same… where are we over there?

Moderator · Conference Operator

The next question is from the line of Saket Kapoor from Kapoor & Co.

Please go ahead.

Saket Kapoor

Sir, firstly, if you could give us the trade and the non-trade mix number for this quarter and the first half?

And sir, when you are very well articulating to the fact that infrastructure thrust has moved to south.

Can you pinpoint the key projects or the states where you are seeing the activities picking up, whether these are irrigation projects, whether these are housing, where is the incremental demand that you just articulated to is propping up?

Moderator · Conference Operator

The next question is from Ritesh Shah from Investec Capital.

Please go ahead.

Ritesh Shah

Two quick questions, Sir, first, you indicated, fuel cost on a consumption basis for this quarter I think at 2.04.

Sir, how should we look at this number for the quarter ahead?

And if you can highlight if you have any inventory for pet coke or coal and what is the average costing over there?

India Cements Limited November 1, 2023

Moderator · Conference Operator

The next question is from Saket Kapoor from Kapoor & Co.

Please go ahead.

Saket Kapoor

What explains this increase in the employee cost, sir?

It is now closer to Rs.99 crores for the quarter.

Moderator · Conference Operator

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

Thank you for joining us, ladies and gentlemen.

You may now disconnect your lines.

Questions and answers

As above Registered Office Dhun Building, 827, Anna Salai, Chennai - 600 002. www.indiacements.co.in [identifier removed] “India Cements Limited's Q2 & H1 FY'24 Earnings Conference Call” November 1, 2023

Moderator · Conference Operator

We will now begin with the question and answer session.

The first question is from the line of Amit Murarka from Axis Capital.

Please go ahead.

Amit Murarka: · Any update on your expansion plans and the deleveraging plan, the land bank sale and all that?

After quite a long time, we have seen finally cement price hikes coming through in the southern market.

I just wanted to understand like how sustainable do you think this increase can be given that we have seen like ups and downs in cement prices?