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 Limited May 20, 2024

Ladies and gentlemen, good day and welcome to the Earnings Call for quarter and year ended 31st March 2024 of India Cements Limited 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 conference 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.

Vaibhav Agarwal

Thank you, Yashashree.

Good afternoon everyone.

On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q4 and FY '24 Earnings Call for India Cements Limited.

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

Now, I would like to mention on behalf of the India Cements and its management that certain statements that we made or discuss on this conference call may be forward-looking statements related to future development 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 India Cements for his opening remarks, which will be followed by interactive Q&A.

Thank you, and over to you, Srinivasan sir.

Rajesh Kumar Ravi: · Parli unit, how much is the profit booked, sir, net of taxes?

2.24?

How much did you say?

Revenue was how much?

Okay, 0.5 crores.

And sir, this quarter we see that there is a significant improvement in balance sheet.

You know, net debt has come off considerably if I look at the past few years.

And so, what is the plan in terms of non-core assets monetization in terms of asset sell-off?

And secondly, how much is the profit you are looking at from the sale of Trinetra plant which you have done, which will be booked in Q1?

Which plant? · Management

India Cements Limited May 20, 2024

Rajesh Kumar Ravi: · Parli unit, how much is the profit booked, sir, net of taxes?

Parli unit, how much is the profit booked, sir, net of taxes?

When you are saying that, you are not looking at immediate monetization of more land or any other assets currently?

Moderator · Conference Operator

Thank you.

We will take our next question from the line of Shouvik Chakraborty from Dolat

Shouvik Chakraborty: · Also, can you just share the trade numbers, I mean, trade mix for this quarter?

So, can you just share some color on the pricing scenario from the exit of March, maybe how much the prices have changed in your operating regions?

Also, can you just share the trade numbers, I mean, trade mix for this quarter?

· Management

India Cements Limited May 20, 2024

Moderator · Conference Operator

Thank you.

We have our next question from the line of Navin Sahadeo from ICICI Securities.

Please go ahead.

Navin Sahadeo

Sir, I had one question regarding the CAPEX.

So, how much do we pencil in towards CAPEX in FY '25 and '26 given the overall efficiency enhancement works that the company is likely to undertake?

Just wanted to understand potential benefits of that and how much CAPEX are we budgeting for that?

Moderator · Conference Operator

Thank you.

We have a question from the line of Shouvik Chakraborty from Dolat Capital.

Please go ahead.

Shouvik Chakraborty: · Also, can you just share the trade numbers, I mean, trade mix for this quarter?

So, just wanted to get, could not hear the number for the windmill EBITDA.

I mean, you said 0.5 crore was the revenue and how much was the EBITDA?

India Cements Limited May 20, 2024

Moderator · Conference Operator

Thank you.

We have a next question from the line of Rajesh Kumar Ravi from HDFC Securities.

Please go ahead.

Rajesh Kumar Ravi: · Parli unit, how much is the profit booked, sir, net of taxes?

Sir, could you please spell out this 500 crore improvement CAPEX that you are doing?

What all things would be achieved in this?

And this WHR is what size?

8 Megawatts.

And recently we completed one upgradation of a mill, right?

So, was there any capacity increase because of that?

And what sort of cost reduction you are looking at through these efforts and the investments of 500 crore that you are making and by when these would start reflecting in numbers?

This is on per plant; on individual plant basis you are looking at?

So, once you have completed this, the next 15 months, on a company level, what is the savings you are looking at?

And in FY '24, what sort of savings you have achieved from various operating efficiency programs which are underway?

Moderator · Conference Operator

Thank you.

We will take a last question from the line of Prateek Kumar from Jefferies.

Please go ahead.

Rajesh Kumar Ravi: · Parli unit, how much is the profit booked, sir, net of taxes?

My first question is on regional demand.

We have like 12% volume decline year-on-year for ourselves during the quarter.

What was the region growth during the quarter and how is it trending for the first quarter '25?

And is it getting better in the first quarter, FY '25 for yourself and the industry?

The industry would be lower like sharply in first quarter year-on-year?

The industry growth will be down sharply and negative year-on-year for first quarter FY '25?

Moderator · Conference Operator

Thank you.

I now hand over the conference to Mr. Vaibhav Agarwal for closing comments.

Over to you.

Vaibhav Agarwal

Thank you, Yashashree.

Sir, I had a question.

Sir, I just wanted to know the basic, firstly the operational impact about selling the Parli Grinding Unit on our operating numbers and volumes in terms of what kind of EBITDA it was making and what was the future impact on this part of the brand?

Moderator · Conference Operator

Thank you.

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

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

Questions and answers

Moderator · Conference Operator

Thank you very much.

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

We have a question from the line of Rajesh Kumar Ravi from HDFC Securities.

Please go ahead.

Rajesh Kumar Ravi: · Parli unit, how much is the profit booked, sir, net of taxes?

Sir, could you share the rupees per kilo cal costing in Q4 and the housekeeping numbers for revenue and EBITDA for shipping, wind and concrete?