Ultratech Cement S/Gdr

ladies and gentlemen good day and welcome to the ultra tech cement limited q4fi 25 earnings conference call we must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company faces the company assumes no responsibility to publicly amend modify or revise any forward-looking statement on the basis of any subsequent development information or events or otherwise. 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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Atul Daga, Chief Financial Officer of the company. Thank you. And over to you, Mr. Daga.

Thank you so much, Michelle. And good evening and a very warm welcome to all of you for this earnings call for quarter four FI25 for AlterTech. It's a maze of numbers which we'll try and help you decipher. I believe the world is redefining its ways of working. The uncertainties around the U.S. tariffs are making people wonder what to do next. I believe investors and industry captains globally must be revisiting their business strategies. But we in cement in India continue our work with a renewed focus on the growth opportunities that are unfolding in the country. To give you a heads up, this year we have ended, the cement industry has ended with a capacity of about 655 million tons, up from 625 million tons. And at Ultratech, out of this 30 million ton of new capacity addition, almost 57% has been added by Ultratech. However, our overall capacity share in the country has gone up from 140 million tons to 184 million tons, an addition of 42.6 million tons under our fold with the two acquisitions that we had done. We believe that this quarter, cement demand overall for the country would have grown around 4%. And in that backdrop, Ultratech has done close to 10% volume growth. Last quarter of fiscal 25 was very eventful for us at Ultratech. After a tedious, long drawn process, we successfully completed the transfer and registration of mines in Telangana and Karnataka for the cement units that we acquired from Kesaram. With effect from 1st of March 2025, we have fully taken charge of these units. After obtaining an unconditional CCI approval, we had started working with these units earlier on, helping them improve their performance. Happy to inform that our efforts have been reflected in their performance in the first month of operating control that we took charge. We started operating these assets from the first of March 25, though as per NCLT approval, the financial performance of KSORAM with effect from 1-4-24 has to be consolidated with the financials of AlterTech. As a result, in the quarter ended March 25, Whilst effectively we were managing the operations from first March 25, the results for the quarter are a mix of performance by old management and the new management. India Cements, we took over the company from the Christmas of December 24. I'm delighted to inform you that the company has achieved an EBITDA break even in the first quarter after the takeover. Second case of sweet success was sales of more than a million metric tons in the month of March by India Cements. With prices improving in the south markets from April, this will only reflect in further improvement in the company's performance. During this year, we target to cross an EBITDA per metric ton of 500. FI27 should be crossing 800 and thereafter a four digit mark. The team has chalked out a key fix plan of about 1500 crores for India Cements out of which 1000 crores towards WHRS and other profit improvement opportunities with a payback period of less than three years. These monies will be spent in fiscal 26 and 27 and the benefits will start reflecting in the performance of the company in the quarter of Jan, March 27. We have also identified brownfield expansion opportunities in the network of India Cements for future. And also that we never have a dull moment. We grab the small opportunity to strengthen our position in the white cement business with the acquisition of cement putty manufacturing facility. This is a small transaction which should get concluded in the next few days. Good things have a cost. Yes, we have leveraged our balance sheet, but are not alarmed at all with the current position. Net debt to EBITDA is what we ended with 1.16x at the end of March 25. With the sales volumes continuously increasing, performance of the company continuously improving, EBITDA profile improving, the debt will start receding rapidly. To tell you about CAPEX plans, we spent about 9,000 crores on our organic CAPEX this year. FI26 also would amount to about 9,000 to 10,000 crores of CAPEX, out of which 7,000 crores is towards strategic investments, the ongoing expansion program, which will take us from the current capacity of 184 million tons. 184 includes India's immense and Kesaram capacities also. From 184 to take us to close to 212 million tons of capacity in India. Yeah, 527, 212 million tons of capacity in India. Cost improvements, we are on course to deliver the overall plan in the three year time window. Last quarter, several questions had been asked and I promised to present to you the annual performance because quarter to quarter measurement might not be meaningful. Since we have disclosed a detailed calculation of the cost improvements, efficiency improvement that we have achieved already. by the end of fiscal 25. This program will continue as promised. We will deliver upwards of 300 rupees per ton in efficiency improvement. As for demand, we are seeing positive movement in government spending. Several new projects have been contemplated which will assist in a steady cement consumption year on year. The beginning of the year is slightly weak because of very heavy heat or high heat that is prevailing, the heat wave that is prevailing in the country which slows down the construction activity in a bit. States like Andhra and Bihar in particular are seeing renewed focus in terms of spending on roads and other infrastructure growth. I believe once this heat subsides, in fact Bihar I understand rains have already come in and temperatures are coming down, we should start seeing improvement in sales performance or volume uptake in all the parts of the country. Urban real estate has shown some signs of slowdown, but this I believe as per experts is only temporary and we will start seeing urban housing demand to go up further. As for costs, Fuel prices, as you're all aware, increased during the early days of the quarter. However, it seems to be in check with the continuous increase in oil output of the U.S. refineries and softening global crude prices. The overall costs of coal, petcoke have not seen too much of movement. We've also seen the various initiatives or various announcements which the U.S. government has made about the tariffs which are having an indirect impact on ocean freight also. But we'll have to wait and watch on how things settle down and how the costs behave. As for prices, the quarter and the current month saw some improvement in prices, but I'm sure you are all very aware of how things are moving, and you have more information around that. To conclude, this quarter, our organic capacities, if I were to measure like for like, we did an EBITDA per ton of 1270 per ton. With the performance of Kesoram added for full quarter, January, February, March 25, This 1270 drops down to 1238 per metric ton. I think the going is good. The capacity utilization that we achieved was 79% on an effective capacity available for the year of 150 million tons. Mind you, the effective capacity is important to know why it's our year-ending capacity was significantly higher the effective available capacity weeds out the impact of non-availability of capacity through the 12 months. New capacity that were added have already given us a head start. This 150 million tons becomes about 158 million tons of capacity available. And further to that, the 25 million tons of the acquisitions, that is what makes up our available capacity to take advantage of the growth opportunities that will be available in the country. Thank you, and over to you for questions.

Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask questions may press star and one on their touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pratik Kumar from Jefferies. Please go ahead.

My first question is on your remark in the press release. We understand that most of the sector part industries are saying that there is generally an improvement in on the ground macro overall. But we have mentioned that the sector may face short term challenges where the long term is better. Any specific reason for this remark and how should we look at volume? Prateek, I'll define my short term as this quarter. As I mentioned, the heat impact is very high. Otherwise, things are going very good.

What is the expectation on volume growth?

I mean, while you mentioned like 7 to 8 like long term, but for FY26, because heat wave impact was there last year also.

Prateek, we expect to grow double digit this year on a higher base. double digit on like for like or this is including, of course, including India Cement, you should probably grow 20% including the two new entities. Yeah, like for like, double digits. So, I think the, I was informed about the concerns about the last line in our press release, but short term is really short term from that perspective. It's perhaps April and the month of May, which is essentially linked to the high temperatures that are soaring in the country. Lastly on prices, can you just throw some light on the current pricing versus average last quarter pricing? I think I would have asked you that question. You know the prices on the ground better than we do. So, Generally, in fact, I had mentioned that prices have seen improvements in this month as compared to last quarter or as compared to March end. Sure, I'll get back to you. Thank you. Yeah, thanks.

Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go ahead.

Hi, sir. Thank you for the opportunity. A couple of questions. First, the 10% volume growth that you mentioned, that is organic like for like, right, versus 4% for the industry.

No, that takes into account the KSORAM volumes also that we have rebranded as Artotech also. Broadly excluding that, we will still be above mid-single digit, right?

Yeah, yeah. Okay, thank you. And you mentioned about the profitability trajectory for India Cement and that the benefits come through in 4Q27. So in this period, in FY26-27, what are the levers that will take the profitability from break-even to, let's say, 500 and 800?

Let me again clarify or explain properly what I mentioned. The investments which are being done in things like WHRS, alternate fuels, renewable energy, et cetera. Renewable energy will happen earlier. WHRS is the most long lead. There are some cooler upgradation. All those elements will start delivering returns after completion of work, which is the last quarter of fiscal 27. So that is one aspect. Second, from here onwards, where this quarter they're operating EBITDA, or total EBITDA was 40 rupees a ton, improvement in volumes, which is capacity utilization at India Cements, improvement in margins by way of prices, by way of cost efficiency, improvement in logistics cost, overhead optimization. Practically all elements of the P&L are getting addressed for improvement.

Sure. And lastly, one more, in terms of KSORAM, are we looking to rebrand it entirely to Alphatip or will we retain that brand?

Over a long period of time, long period as in short period, long period is very confusing. Over a period of time, yes, it will get rebranded. Sure. Thank you. Thank you.

Thank you. The next question is from the line of Amit Muralka from Access Capital. Please go ahead.

Yeah. Good evening, Ms. Raga.

So just on India Cements as well, so Kesaram will be gradually rebranded, but India Cements will stay an independent brand, or will you enter into some tolling arrangements?

We will. Same thing. We will enter into a tolling arrangement and gradually convert India Cement brand also into Ultratech. India Cement, they themselves have some very powerful brands. So we will, it will be a mix and match, and we will get into the rebranding exercise for India Cements also.

Sure, sure. So any sense by when can we expect a full transition of India Cements into Ultratech brand?

Two years' time, which is fiscal 27, by end of fiscal 27. Sure. And I believe by then the upgradation program also gets completed for India Cements, as you mentioned. Yes, please. Yes, please. Because quality upgradation is very important.

Okay. And the last question will be on the blending ratios. So there has been a consistent increase in your CC ratio now, 1.45%.

So what is the number that we should think of one year hence or if you have any target in mind to go to 1.6 or something like that? So we have already spelled it out. By the end of fiscal 27, we are targeting to reach 1.54. Okay, great. Thank you so much. I'll come back in the queue. Thanks, Amit.

Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead.

Hi, sir. Am I audible?

Yes, it is.

Yeah, hi. So, a couple of questions. First is on the leverage.

Good set of numbers. Why is that?

Good set of numbers, sir.

Congratulations. Thank you. Go ahead. So, a couple of questions. One is that what sort of leverage will we be comfortable with on net debt to EBITDA? 0.5x. Any timelines to reach that? Then I have to give you a forecast. That's what I want. I'm really smart. Okay. My question is on a serious note, Ritesh, you have seen Ultratex performance. In the past, when we had leveraged, in fact, to 3X, we brought it down rapidly in about two years' time. I think this is And now, when we are at 1.16x on India balance sheet, volumes growing up, EBITDA improving, we will bring it down rapidly.

Okay. So, second question is on the supply at the industry level.

As per your estimates, what are we looking at, 40, 50 million tons for F526, F527 each year? Anywhere between 40 to 50 million tons and our 16.8 million tons is guaranteed.

Okay. And sir, have you noticed anything different in pricing and discounting trends specifically in South?

Given demand hasn't moved much, but pricing is one way up. How should we understand this? I don't think so. Any differences there?

Sir, possible to indicate the current prices versus March exit or Q4 averages? Yes.

No, too difficult. It's 28th of the month. But all I had said was, yes, we have generally seen an improving trend.

Sure.

To answer this last question, you indicated on India Cement, we are looking at certain brownfield optionalities as well. Can you provide some color over here?

And we understand there's a lot of these expiry which India faces come 2030. So how are we looking to overcome that particular variable?

So as I mentioned, there are opportunities identified. Timing not decided. Timing will be decided, taking into account the demand opportunity that exists in the marketplace. And as... Just one second. Yes, sir.

So, I think as Atul said rightly because it is little early. Yes, we have identified certain areas where we can do the brownfield expansion. And the lease of 2030 may not pose a problem because even the first right of refusal would be to the existing leaseholders. So, it can be a little bit price but not... anything to do with that.

Nobody will lose their minds. Just a short. Sir, just follow up. There was expectation about basically mine spin option in the state of Pramil Lado. Has there been any progress over here and would Ultratech also be interested if any of the events play out? We will be interested but there is no date yet. As of now, I think May May 4th, where are we? We are in April. May 4th, May 4th is the technical bid submission, the last date which I remember. No extensions have been announced as yet.

Sure. Thank you so much. All the very best. Thank you.

Thank you. Hello. Thank you. I'm good. Thank you. Thank you.

Thank you, sir. We'll take the next question from the line of Rahul Gupta from Morgan Stanley. Please go ahead.

Hi, thank you for taking my question. I have one question, just a clarification on medium to longer term understanding of cost improvement. So you have guided for 300 rupees cost improvement and towards that we have already achieved 86 rupees in fiscal 25. Now, how do we see this from the lens of KSORAM and India Summit consolidation, given majority of the cost benefits will start reflecting from fiscal 27 end? Does this mean that we will see some tail benefits on the consolidated entity fiscal 28 and beyond? Just trying to understand how should we look for the next year.

Let me try and answer that question. When we made this plan, this was on our... existing Ultratech operations, did not include India Cements and Kesaram operations. As for India Cements, we have started off this quarter with an EBITDA pattern of 40 rupees, which will cross a four-digit mark in fiscal 28, which is I'm giving us three years to deliver that. efficiency improvement program of course there are investments which are being done. The efficiency improvement will be carried out in parallel for India Cement set of operations. So is the case for KSORAM set of operations. There I believe they are already, they are ahead of India Cement and they will start delivering by one year prior to India Cement. the efficiency improvement program for those entities or that capacity, 25 million tons of capacity will run in parallel without compromising on our 300 plus efficiency improvement for Ultratech as is. I hope I am able to answer your question.

Got it. So just to understand this, or just one small clarification, So we may not have Apple-to-Apple comparison by fiscal 27, but we would continue to see benefits, and India, Simran and Keshav Ram would particularly start seeing fiscal every year, actually. Every year, every quarter. Every quarter. Right. Great, great. Thank you so much.

Thank you. The next question is from the line of Phulkit Patni from Goldman Sachs. Please go ahead.

Thank you for taking my question. And thanks for putting that slide where you've spoken about individually, you know, which are the cost line items and what is the contribution. Now, if I look at the numbers that you have, your guidance for FY27 and in case of renewables, FY30, plus what you are saying for India and Kesaram in terms of a better improvement, then even if the industry doesn't take any price increase, for us as a consolidated entity to go up about 250 to 300 rupee a bit per ton from here till FY28 should be fairly easy. Is that understanding correct? Or in your assumption, there is some price increase that you have baked in when you talk about India's 500 and Kesaram slightly higher a bit per ton next year.

Pulkit, on an Excel spreadsheet, everything kept constant? Yes. 250, 300 is very likely, is happening. But there are so many moving parts in the country. Take the case of the royalty which was imposed in the state of Tamil Nadu, which is 150 rupees a ton, or something else that happens. So those factors have to be taken into account as well, or petco prices moving up. So, so many moving parts, it's really difficult to put all of them down in the Excel model. However, these efficiency improvement programs, and if somebody were to do a math on lead distance, my team is so specific that they have calculated the advantage only on primary freight. Okay? So, We are very, very specific. If you look at the calculation on renewable energy, it is on the basis of capacity utilization. It is on the basis of PLF that the renewable energy projects will deliver. So we are going very, very specific, very precise instead of giving you a rounded ad hoc number. This 300, which is actually going to be upwards of 300 on our existing capacity, will happen. Whether that amount gets translated into 100% of that amount gets translated into EBITDA per ton, I don't have an answer.

Sure, sir. That's fine. Thank you so much.

Thanks, Sati. Thank you, sir. The next question is from the line of Sumangal Nevaatia from Kodak Securities. Please go ahead.

Yeah, good evening. And thanks for this slide 24 with a lot of granular details. Just a few clarification on this.

So this 300 rupees which we are saying is above this 86 rupees or it includes this 86 rupees?

What is the base here? Okay. I can be greedy. You don't be greedy. So we had made a 300 rupee program out of which this is 86 delivered.

Okay. Understood. Understood.

Got it.

Okay. So on I-525 industry growth of 4% and our growth, is it possible to share some region-wise color in terms of volume growth?

So capacity utilization, if I look at... Ultratech operated at an average of 90% capacity utilization, which would vary, range from 85% on the lowest side to 97% on the highest side.

Okay. All right, all right. Can I just ask one last question?

On the CW segment, since the time we had this call last month, Any new update in terms of hiring, any tie-up, anything which you would like to share?

Critical positions, critical people have been hired, or sorry, offers have been made, orders have been placed for long lead item, drawings, work has been completed, and we are committed to start revenues as planned by December 26th.

Got it. Got it.

Okay.

Thanks, Ren. All the best.

Thank you.

Thank you. The next question is from the line of Rashi Chopra from Citigroup. Please go ahead.

Thank you. Just on India, Samantha, you said that the EBITDA potential likely crossed about 500.

This year. This year, Rashi.

Yeah. So this is essentially, I mean, Is this largely to do with rebranding? I mean, if you could sort of break up the slide.

Difficult to break up. A lot of efficiency improvement, which is being driven by working capital, you know, improving the working capital cycle, which means cost of purchase is coming down. Production efficiency is being improved. Technical team is changing the raw mix design, which is helping reduce the costs. Prices will support um overhead rationalization which is taking place because we don't need uh same set of uh same kind of overhead uh what else so a fuel efficiency is coming in everything is uh helping add to the uh improvement program and just to add uh uh because there are multiple moving parts so it starts right from the coast side to

after the marketing course is already explained. You know, it's difficult to quantify, but yes, the plan is very much in place.

So, rightly, all elements are being addressed and attacked. I mean, I was so thrilled when I saw March volume, and I had mentioned it in my commentary. March volumes, India's elements have never done a million tons in their history. It speaks for itself.

Just to rephrase my question, is any of the 500 going to come from pricing or this whole thing is on the cost and efficiencies as in rebranding pricing?

Price improvement also to the extent we are... Maybe the logistic cost optimization because fundamentally the NCR is also driven from the logistic cost. So the logistic cost again is in the two parts. One is the cost optimization, then the placement of product and some synergy benefits here and there. So it's an overall game plan to improve the working.

To supplement what Jawadi just mentioned, it's market mix change. So as we add one more plan to the network, our efficiency keeps on improving. There I will not shy away from saying that prices will can play a benefit, but we are not counting on that.

Understood. And on KSORAM, if you were to exclude the KSORAM volumes, then how much, what was your volume growth, or if you could just share the KSORAM volumes?

67%.

And here, I would imagine that there's not a lot of scope for the EBITDA button improvement.

There is.

What is

No, no, no, there is. So, we would touch a four-digit mark for Kisoram set of assets in the last quarter fiscal 26. But mind you, again, it is very difficult for us to draw a P&L by plan because it's at a zonal level. Now, just to give you further, let me try and explain again. We have Sedum, one plant which we acquired from Kesaram, and we have our existing capacity also in the same, very close to the same location. Both combined start meeting the market requirements. So drawing up a P&L at a plant level is not practical from our perspective.

Understood.

Got it. Okay. Thank you.

Thank you.

Thank you. The next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead.

Hi, thank you. I have a couple of questions, one on capital allocation and the other one on the acquisition. First, in capital allocation, given you have now two assets that you're looking to integrate, you have the wire and cable business also, would you say that your plate has fallen and maybe any additional opportunity would not be of interest at this stage. Would that be a safe assessment?

No, I think we are always hungry for growth and a good opportunity. Good opportunity has several parameters. So if something exciting is there, we will not shy away.

Okay. Depending on the acquisition, So first on the profitability for India cement, you're suggesting 800 rupees per tonne by next year.

Fiscal 27.

Initially, the expectation was that this would be similar to ultratech asset. So once the entire heat consumption, heat rate and power consumption comes down, would you expect this to be as parity with ultratech assets or there are structural issues which might limit

It will be at par with our south assets. Okay. Because when we look at Ultratech EBITDA button of 1270, north market would be doing significantly higher. So you cannot compare it with our average.

So, typically your southern asset would be at the lower end of that entire pie of EBITDA pattern that you know.

As of now, yes. As of now, but you know, maybe a year back or two years back, southern was doing extremely well. So, on the coast side, if I may add, actually we would be well aligned with AltaTech, but the course cannot be average of AltaTech because the zone to zone, even within AltaTech course differs depending on the quality of limestone and so many technical parameters, hardness of the limestone and so on. But yes, broadly we would be in line with AltaTech.

You know, Tamil Nadu at one point in time was delivering more than 2000 rupees of Abedda per tonne. So it will be in line with our south performance.

Okay. Now, just a follow-up to that a bit, I pretend that you mentioned.

May I request you to please rejoin the queue for follow-up? There is a long queue that is awaiting you to ask questions. Thank you. Thank you. I request to all the participants to kindly limit their questions to two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Naveen Sahadeo from ICICI Securities. Please go ahead.

Yeah, good evening and thank you for the opportunity. Sir, to this question, sorry I missed it.

Ketoram volume in Q4 was how much? Ankit, how much volume? 1.53 million tons. 1.53 million tons.

And just my second question here was, since we took charge of this asset from 1st of March, so brand transition will happen over time, or there is a fair amount of brand transition already happened. I'm only asking to understand from a perspective that South as a region has seen, I think, a decent price improvement in April. So will it be fair to assume that Keturam gets the higher delta of brand conversion and the price height?

Difficult one, but yes, as brand conversion progresses, they will get an advantage.

And since it's one last clarification, when you give CAPEX guidance of around 9,000 to 10,000 crores for FY26, it includes the one for cables and wires, right?

Yeah, they won't have too much of spending. Thank you. Next question, please.

The next question is from the line of Sanjeev Kumar Singh from Motilal Oswal Financial Services. Please go ahead.

Good evening, sir. I have two questions. First, on the building product segment. So, revenue is at 921 crore, impressive growth of 21%. How are we looking at the segment in next three to four years? And can you guide us on the return ratios, ROC, which we make in the segment? Because we believe that it's largely related to our construction chemicals.

So easier questions first and nicer questions first. ROCs are upwards of 30 to 40%. Growth trajectory, we have achieved, let's say, 1,000 crores of revenues. This should go up to 3,000 to 4,000 crores in... 3,000 crores, not 4,000 crores, 3,000 crores in three-year time window. So every year we should see an expansion of 1,000 crores of revenues.

Okay. And second question is regarding the south region prices. It has been discussed a lot on this call also. And historically also we have seen that the price hike announcement is much higher in the south region. And that also follows the pricing in the east region. Okay. But over the next two, three months, historically, we have seen that entire price hike, which has been taken over, that gets diluted. So are you seeing any change in the competitive intensity or any change in the players' behavior in the south region?

I really don't know. I really don't know. I think it's a wait and watch game. You guys know about prices far higher than we do. We come to know only after we drop our monthly accounts. And prices, to my mind, will remain a play of demand and supply. Okay, sir. Thanks a lot. Thank you.

Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.

Hi, sir.

Congratulations on strong numbers for sure on the margins front. On the demand front, could you share what was the industry growth in Q4?

Our expectation is that it should be around 4%.

Okay. So, it did not like inch up to 8-9% as what anticipated at the start of the quarter?

No.

Okay. Because your like-to-like volume growth also seems to be around 5% for the quarter, excluding Kesaram in investments.

6% or thereabouts, yeah.

And for the full year, how much is the KSRAM volumes which you are incorporating in the numbers?

Full year KSRAM volume is 6.86 or 6.87 million tons.

6.87 million tons, okay. And sir, if I compare the presentation with previous presentation, the corporate presentation,

I see the WHR expansion program has been cut in because in the current program which you have shared, I would assume you would be incorporating 50 million tons for India as well as Kesaram, including 9, so around, you know, 60 million tons, so 60 megawatt.

But if I look at the numbers in the presentation, that is absolute number for FY27 is lower versus what you had guided earlier.

So, you know, ideally it should have gone up by 50, 60 megawatt, but the reported numbers are 10, 15 megawatt lower for FY27 target.

It will come in FY28, it is FY27 number.

Till FY27, the number, so we are adding, I have given you specifically the numbers on KSORAM assets, which is 24 million tons, 24 point something, 24 megawatts, and and ICL is about 22 megawatts. That's about 22 and 24, yeah. 44 is, huh? 62. 22 and 24, yeah. I'm sorry. 46. 46 megawatts of additional which will get added into our network.

Correct. So now, FY26, for FY27, say you have

added 500 megawatt which will include this 46 plus 9 megawatt of India cement. So, around 56 megawatt. So, this 500 you know would otherwise the earlier presentation was 511 megawatt which would obviously not be factoring in India and Kesaram's number. So, your organic expansions are there any we have curtailed on any WHR programs on the like assets?

No, no. So, one second. That sheet you have.

Where did this?

This does not include these assets, no? The KSORAM and... I'll have to do a recall on that. No curtailment on our WHRS. 44 megawatts will get added further, but to the larger capacity.

Okay. And lastly, as you guided India, so Kesaram, what was the total EBITDA for the year as a whole? Which you are factoring in?

Year as a whole? FY25? 112 rupees per ton. 112 rupees per ton, okay. I think somewhere around 112 or 115 rupees per ton. That is okay.

That will help.

Yeah. That's all from my end. You know,

previous periods I am really don't have a handle I am just lastly if I just volume growth for FY26 have you given any guidance if I missed out structuring in the two new assets in place we will be growing double digit on our organic capacity so excluding KSORAM in India you are saying you will be growing double digit and this will okay and okay great thank you sir I will come back and see

Thank you.

Thank you. The next question is from the line of Patanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.

Thank you for the opportunity, sir.

Hello.

Thank you for the opportunity. Good set of numbers. I wonder if you know some details on the region-wide profitability and volume growth.

Very difficult. As I mentioned earlier, the average capacity utilization for us is about, for our like for like is 90%. Lowest being 85% and highest being about 97% capacity utilization. That's the best that I can give. Would it be possible to share? Average EBITDA pattern of 12, 70. Average EBITDA pattern of 12, 70 on our existing assets. Not would be higher, highest, and others would fall in line. Because, you know, it's best to measure contribution instead of doing an EBITDA profiling at a regional level.

Sure, sure. And one question related to our acquisition. If the remaining stake that is 10, what is the planned assurance and what would be our payback period for these assets, sir?

Payback period for cement acquisitions would go to 7-8 years. We are holding 81.49, Sanjeev. 81.49% of India Cements. The first requirement will be to do an MPS to bring it down to 75%. Okay, so would that mean that we would not be acquiring the remaining, is that the right understanding? Yeah, not required. With 75%, we have good control on the performance of the company. Sure. Thank you, sir.

Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go ahead.

Hi, sir. Thank you for taking my question again. I just want to understand your Northeast strategy, any change in thought process over there. We have a stake in a star. So how do we wish to progress more organically or increase stake days?

So we've been exploring the geography there. We created our entity, you know, to comply with all the regulations. There's something called single window clearance that approval we have taken. But when we go down in that geography, there's a lot of issues that are surfacing. It's not an easy terrain to operate because even if you find mines and plant land, The access roads are not really there, and the economics of operating the plant go for a toss because of the various issues that are existing. And hence, since that opportunity came about, we are investing and holding our position in Star Cement. That's all. We will continue to work on the northeast market should a good, clean mines and land parcel become available with access to, you know, the various things that are required for a cement asset, access to railway siding, close proximity to railway siding, access to the highway. If such an opportunity comes up, we will be the first ones to pounce on that. Sure. Thank you so much.

Just one second. One second. But as far as our presence is concerned, we are present in northeast. We are supplying from our existing plant and we are ramping our volumes in northeast. So that would continue to be there. So we have reasonably good presence, not to the level of the local place. But yes, we are moving forward as far as our presence is concerned.

Thank you, sir, for answering that. Ladies and gentlemen, we'll move on to the next question, which is from the line of Devesh Agarwal from IFL Capital. Please go ahead.

Take the next question. He's dropped out.

As the current participant is not answering, we'll move on to the next question, which is from the line of Rashi Chopra from Citigroup. Please go ahead.

Just a bookkeeping question, the realization increased sequentially with 1.6% including India Cement and Kesaram. Do you have that with both of them?

It was only Ultratech.

Do you have it with India Cement and Kesaram?

No, we haven't computed that way. India Cement is a separate organization. balance sheet and P&L. It will be an arithmetic exercise, Rashi. Don't have it.

Okay. And I don't know if I missed this, but you gave 112 as EBITDA per ton for KSORAM for the year. What was it for this quarter?

400 rupees. 399. 399. Yeah.

And 1.53 was the volume.

Yeah. Thank you. Thank you. The next question is from the line of Shravan Shah from Dollars Capital. Please go ahead.

Hi, sir. Most of the questions have been answered or a couple of things. Just to understand, sir, if I remove the index in 9, 10, the cash around volume for this quarter, the number on like-to-like counts, the growth is 5% and for year also 6%. uh but do we think uh that this is uh uh uh are we satisfied with this number or given the even the organic expansion that we have done obviously it is throughout the four quarters uh though the capacity is not available for full year but still don't you really think that this number is on the lower side uh what should i say i mean we want we want more obviously we will definitely want to increase our volumes and growth. As I mentioned, next year we are targeting a double-digit growth for Ultratech standalone, which will get further bolstered with the capacity, the sales volumes of Kisoram assets. India Cement Assets will be visible separately in their own P&L. Got it. Second, sir, what was the clinker utilization for the fourth quarter and if possible for full layer at console level or whatever way you want to say? I think I focus more on cement utilization. Clinker utilization is obviously higher than cement utilization. So we achieved 90% cement utilization this quarter, 79%. 79% cement utilization for full year on Ultratech. Okay, got it. And second, sir, the 300 rupees cost reduction. Hello? Ah, full year.

Yeah, 300 cost reduction that we have spoken. So this is by FY27 or FY28 we are seeing? 27.

Oh, got it. Got it. And for FY27, what would be the capex number, sir? 27? We'll talk about it next year. We'll talk about it next year. But it should come down because most of our the expansion plan will start coming to a close. So it will not be as high. Okay. Got it, sir. Thank you and all the best. Thank you.

Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead.

Hi, sir. Quick two questions, sir. Any update on the JP asset under arbitration? Any timelines? No, it's still, award is still awaited. And, sir, any timelines? I'll ask the judge and come back to you, Ritesh. So, second question, you basically petcoke prices haven't come down as probably was anticipated. You did indicate in initial remarks around Trump indirect impact of ocean freight. Can you provide some more color over here? Is it specific with respect to the drivable cargoes you are looking at or are there any other variables which are coming into play? You see, ocean freight is spiking up, could spike up further. That is one. I have noticed brand prices have been going down. U.S. output is going up. U.S. crude output is going up, which means availability of pet coke from U.S. refineries should be better. I don't know how China-U.S. trade will behave, how much pet coke will China consume. This is too difficult to quantify, Ritesh. Sir, is it possible to break up the freight part out of, say, $1.20, $1.22, what we have indicated in the presentation? $37 to $40 is freight. Okay. That's helpful. Thank you so much, sir. Thank you. Thank you.

Thank you. Ladies and gentlemen, we'll take that as the last question for today. Thank you, members of the management. On behalf of Ultratech Seament, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.