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. ARCHAN VYAS – PHILLIPCAPITAL (INDIA) PRIVATE LIMITED India Cements Limited February 01, 2024

Thank you very much. · Basically, the story of the last few quarters and particularly the last operative quarter the

Basically, the story of the last few quarters and particularly the last operative quarter the Company slowly, but surely turning around after successive losses we find some black somewhere.

The reason for this is we have concentrated very much on reducing variable cost trying to improve NPR and also improve our systems after all we are an old Company.

So, we have done all that one does and classic recovery mode.

We originally thought of selling large tracts of land which was not useful, but then we found it takes time, but we have sold smaller portions of land which is of no use for us and the performance of the Company has been much better and leading to an expectation that next quarter onwards we will shine like before.

India Cements Limited February 01, 2024 One of the reasons that this see the price and NPR this quarter was sufficient for us, but our volume was low because of working capital constraints, we could not sell, for example, we had planned 11 lakh tons we did the less than 7 lakhs tons.

So, this has hampered our ability to achieve our target.

Similarly, the lack of planned volume has also hurt rather has not nailed down the variable cost as we thought.

So, going forward we have made arrangements for the working capital.

So, this quarter we expect good working capital, and this is a busy quarter.

So, we feel that the result will be very good.

This is the opening sentence and I'm very happy to respond to queries.

Rajesh Kumar Ravi: · And sir EBITDA which you make annually is less than 10 crores, does it suffice returns on

2.3 crores because you sold off the ship?

And EBITDA is how much sir for shipping?

EBITDA how much you said sir RMC?

And sir what is the rationale for buying a new ship?

Are we using it for captive purpose?

Sir, what was the proceeds from the ship sale you have given the profit number and what is the investment made for the new acquisition?

And sir EBITDA which you make annually is less than 10 crores, does it suffice returns on investments and what was the logic for buying a ship?

Is it justifying your returns I just wanted to understand that?

So, I just wanted to understand that investment of 160 odd crore, right?

So, annual 20 crores plus sort of an EBITDA are what you are looking at?

We have lost substantial volume this year, volumes for 9 months are down almost 60% year-on- year.

So, what is the way ahead it is just working capital squeeze or because of the competitive intensity you have to let go of volume and what is your thought process going forward?

Moderator · Conference Operator

Thank you.

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

Please go ahead.

India Cements Limited February 01, 2024

Parth Bhavsar

Sir can you help me with the volume numbers for the quarter?

Moderator · Conference Operator

Thank you.

The next question is from the line of Sanjit Tambe from Centrum Broking Limited.

Please go ahead.

Sanjit Tambe

Sir you guys had hired consultants to improve efficiency.

So, what is the progress on that?

Moderator · Conference Operator

Thank you.

The next question is from the line of Navin Sahadev from ICICI.

Please go ahead.

Navin Sahadev

Just one question I had was about the demand from the state of Telangana.

I think post the state elections there was this feedback about a sharp slowdown in that state especially the government demand because of the change in government there.

So, what is the update?

Is there any traction or progress seen in the state or we may have to wait for some more time?

Moderator · Conference Operator

Thank you.

The next question is from the line of Mudit Agarwal from Motilal Oswal Financial Services.

Please go ahead.

Mudit Agarwal

Can you just tell us the track number; current net debt and gross debt consolidated?

Moderator · Conference Operator

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

Please go ahead.

Parth Bhavsar

Sir I have just one question when we say that we are facing working capital pressures.

So, just wanted to understand which part of it was hitting us and since we have now gone with external financing, how it would help in coming quarters.

First is it the inventory, is it the receivables that's hitting us or is it something else?

Moderator · Conference Operator

Thank you.

The next question is from the line of Shouvik Chakraborty from Dolat Capital.

Please go ahead.

Shouvik Chakraborty

Just some bookkeeping questions.

Can you share your trade mix and blended cement share for this quarter?

Moderator · Conference Operator

Thank you.

Ladies and gentlemen as that was the last question.

I would now hand the conference over to Mr. Archan Vyas for closing comments.

Over to you sir.

Archan Vyas

Thanks so much.

I would like to thank on behalf of PhillipCapital, the entire India Cements team to take the call and give us an opportunity to host you on the earnings call and all the participants who could join on the call.

Thank you very much and have a great evening ahead.

Michelle, you can now conclude the call.

Thank you.

Moderator · Conference Operator

Thank you sir.

Ladies and gentlemen, on behalf of PhillipCapital (India) Private Limited that concludes this conference.

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

Thank you.

Questions and answers

Registered Office

Dhun Building, 827, Anna Salai, Chennai - 600 002. www.indiacements.co.in [identifier removed] “India Cements Limited Q3 FY24 Earnings Conference Call” February 01, 2024

Moderator · Conference Operator

Thank you very much, sir.

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

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

Please go ahead.

Rajesh Kumar Ravi: · And sir EBITDA which you make annually is less than 10 crores, does it suffice returns on

Would you please share the shipping, windmill and RMC revenue and EBITDA?