Ultratech Cement S/Gdr

We must remind you that the discussion on today's call may include certain forward-looking statements and must definitely be viewed in conjunction with the risks that the company faces. The company assumes no responsibility to publicly amend, modify or revise any publicity statement on the basis of any subsequent development, information or events, or otherwise. As a reminder, All parties and clients will be in the listen-only mode and there will be an opportunity to ask questions after the presentation concludes.

If you need assistance during the conference, please email an operator by pressing star and then zero on your touch-tone screen. Please note that this conference is being recorded. I now hand the conference over to Mr. Atul Daga, Executive Director and CFO of the company. Thank you. Hand over to you, Mr. Dhaka. Thank you so much. Good evening, everyone, and welcome to the Q1 FI24 earnings call for Allstate. This is the third year in the running seeing a high convention of cement. Going by the positive movement seen in the first quarter, we are excited to see a double-digit growth in volumes this year as well. We are aware of the erratic heavy monsoons that we have seen earlier on during the last couple of months, and have seen almost all season in the country, resulting in disruption in the stretches early on. The good part is that the fear of anemic seems to be subsiding. Things are going well for our economy. FDI is gaining momentum. Inflation seems to be under control. Fuel costs are on the decline. Interest rates and rate hikes have taken a pause. Infrastructure in India is improving rapidly. What I can quote as one of my friends said, God's up this into the Indian. I want to share some more data points on road infrastructure in particular. The government has given a directive to spend almost 80% of the budgeted allocation of 2.7 lakh crores by 2023. Almost 1 lakh crore has been spent by mid-June. Balance spending of 1.2 lakh crores, as was advised by the ministry, will be completed on schedule. We want to achieve a speed of 40 kilometers per day of road construction this year. they will most likely reach the targeted km per day, then the speed at which the execution is taking place. This quarter was the highest showed execution progress. The new orders were less, but we don't get bogged down by the slow down of the market, which is, to my mind, very serious. But it's not just the roads, it is the good infrastructure that has a fascinating effect on overall economic activity in the country. and so many guests who participate in the growth story. Let's talk about our own work. We have commissioned 4.3 millions of capacity till now, and it will be on June as well, and our cash flows will be in good shape. These new capacities will further strengthen our presence in the Northeast and Western markets. As for our cash flows, After a cash bend of 1096 crores on our ongoing capital in this quarter, we have further reduced our next supply to women's 33 crores, which I think is a fabulous achievement. We have completed the first phase of our expansion plan which was announced in the term of 2020, taking our all-India capacity to 131.25 million times. During the course of various expansion programs, we have identified some opportunities which will be completed during this year, giving us an incremental capacity of 2 million times. This is spread in four or five locations as we complete the announcement. We expect, as I mentioned, we should be able to complete all these programs in this financial year. taking our overall capacity from 131.25 million tons to 135.25 million tons in India. Another very important point to note is the improvement we have made in our jitka conversion factors, as we included a chart in our presentation. An improvement of 0.04 will generate an additional volume on manual jitkas of 2 million tons. Let me now talk about our sustainability agenda, and we take it very seriously. We are fast-tracking our green energy program. For that, we are participating in a hybrid solar wind project of 58 megawatts, taking our total renewable energy baskets to 1.25 gigawatts by the time the program is completed. And also, we intend to increase the footprint of our WSRS to reach 425 megawatts from the 232 megawatts that we ended Q1 SI24 with. These programs will be completed by the end of fiscal 26. And when all these projects are completed, I'm happy to tell you that we will have more than 60% of energy as green energy on our expanded base. WHRS accounting for more than 25%. around 20% and renewable energy, which is solar and wind account is important at this point in time. Depending upon the prevailing cost structures and investment in time, it will still be a sustainable addition to our system line. Some two points which I want to send to your notice, more from academic interest point of view. Firstly, on fuel prices. Today's output is is trading around $115 dollars $115 dollars per ton after a short fling in dollar level for a very few days. However, most of the time the spot prices are for ship loading which is 2 months antes, average 2 months later. And give the cycle 60 day shipping time 10 odd days of inland movement and existing inventories of anywhere between 45 to 60 days the second consumption may be around 5-6 months later on the date you are talking about seeing the contract. Second important point to keep in mind is the moisture loss. For us, the landed cost is almost 10% higher on account of moisture losses which is what we consume and what we report. That total On a net, this is our cost was $194 metric ton, which has reduced to $178 metric ton for this quarter. Depending on the availability of site scope, we keep on optimizing the field mix. This quarter, our site scope mix was about 42%. Another point for your academic interest, We all, this is about lead distance. At AltaTech, you would have heard our lead distance being more than 400 kilometers. Last quarter, we were at 10 kilometers. But an important point to know is that this lead distance includes lead distance for movement of clinkers from the integrated stand to the grinding unit. More important to keep in mind is our ability to serve our customers. With the current network of our grinding units, our terminals of the country, more than 120,000 channel partners, and the dense network of warehouses that we have, our lead distance from the point when cement is available through service is only 270 kilometers. It's a sundown from 281 kilometers past Swabia. And I think this is a real lead since for our customers. So we are practically able to serve any customer around the country within 300 kilometers of our service point. And that's why I say we continue to lead by a mile. Thank you ladies and gentlemen and over to you for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2.

Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the political queue assembles.