Ultratech Cement S/Gdr

Ladies and gentlemen, good day and welcome to the Ultratech Cement Limited Q2FY26 earnings conference call. 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 and 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, thank you and over to you, sir.

Thank you. Good evening, everyone, and welcome to the earnings call of AlterTech Cement for the quarter ended September 25. I realize it is a Saturday and for those who are attending the call, a sincere thanks for taking time out on your weekend. Let me straight jump into the nitty gritties. Firstly, demand. I think it is very important to note that we have sold more than 31 million tons of cement this quarter when rain gods have been in full fury till almost a few days ago. On ground, things are looking up, looking better for premium cement all the more. We will talk about it in a bit. Ultratech is a very large company. We operate almost 75 physical locations, 400 plus RMC plants. And in that phase of rapid growth, the sales volumes growth will be a little complex to understand for three or four quarters. If we were to look at our sales volumes without ICL and Kesaram in the base for the last year because we were not managing them, we have grown 22.3%. Without considering India Cements in our base for the last quarter, we have recorded a growth of 9.6%. With both ICL and Kesaram cement assets in the base, we have grown about 6.8%. India Cements has already declared its results yesterday with a growth of 6%. Most important points to note is Ultratech as a brand, The brand has grown about 13.2% this quarter YOY. That is a real hard number. Rural markets are also delivering a growth of 13% and we believe that the industry will achieve a growth of around 10% in the rural markets. We have been rapidly converting India Cements and Kiswaram brands into Ultratech with a sharp focus on improving the quality of the product manufactured at the acquired plant locations. The results are quite exciting. As I mentioned, Altitech as a brand has grown 13.2% thanks to the rapid conversion of output generated from the acquired assets. Let's talk about GST. GST, while there's no impact on profitability, an important benefit of GST2 is a reduction in clean energy says Leviron Call. We believe This will be in a long-term interest of Ultratech. We balance our fuel portfolio with a mix of coal and pet coke. The strategy has always helped manage our risk. This quarter, with slightly higher coal consumption, the ratio is skewed in favor of coal at about 48% and pet coke being about 44%. This quarter, our fuel costs are higher than last quarter, increasing to 1.8%. per Kcal as compared to 1.78 per Kcal. It's a mix of coal and pet coke essentially and timing. The next few quarters will be a mix of our existing high performance assets of 166.76 million tons and the acquired assets which are ramping up rapidly, namely Kesaram cement assets 10.75 million tons and India Cements 14.75 million tons. Our existing operating assets, 166.76 million tons of capacity have delivered an EBITDA per metric ton of 966. India Cements reported its performance yesterday delivering 386 rupees per metric ton. And KSORAM assets this quarter were at 755. For your reference, India Cements Brand conversion has already happened 31% and KSO RAM has already converted 55% at the end of this quarter. This will clearly give you a perspective of how the overall average numbers will pan out when full brand conversion has been completed. We are expecting to complete the brand transition for these acquired assets not later than June 26th. There have been some specific cost items, one-off, slightly higher, which have had a dampening effect on our performance. First one, maintenance costs. You'll be shocked to know that we operate almost 56 kilns across the country in Ultratex balance sheet. And if you were to take into account India Cement's kilns also, a total number of 65 kilns are being operated by us. In Algetec, out of the 56 kilns, we had 617 kiln days shut down as compared to 207 kiln days last quarter or 511 kiln days last year for the same period. This is one of the reasons why our fixed costs are slightly higher. When we do an internal calculation, it's about an impact of Rs. 100 per tonne. Second one was the advertising cost. During this quarter, our advertising efforts had been taken up. We spent 50 crores higher than the last quarter, resulting into an impact of about 15 rupees per ton. Third item was staff costs, which were again slightly higher in this quarter, and all employees obviously enjoy this quarter because the increments and the annual bonus payments are made in the July-September period. Quarter on quarter, additional costs of 94 crores were incurred, but you don't have to worry. This impact will come down next quarter by 30-35 crores. The per ton impact is roughly 25 rupees per ton. Operating leverage impact due to lower QOQ sales volume is close to 70 rupees per ton. If I count all these items, then there is a delta impact of anywhere around 200 rupees per ton. But that doesn't mean that these costs will not exist in the next quarter. There will be some element of cost, but not such a high impact. CAPEX. Our expansion plans are going on full swing and we will complete or exit this financial year with 200 million tons of capacity under our belt. Projects like with Avonport, Amravati, development around the new Mumbai airport, data centers coming up in the country, urban real estate, Google committing $15 billion to build its AI hub in Andhra. All such mega projects are very positive for cement industry for consistent growth demand. And GST2 will definitely boost demand for premium cement. Because some people will be able to buy their aspirational brands due to a reduction in the cost of purchase. You would have also seen our next phase of growth. I have mentioned it in the past. After completing our consolidation in the southern markets in fiscal 25, we have focused our guns on north and west. With an intent to further strengthen our position in these markets, we are embarking on the next phase of our growth with 22.8 million tons of incremental capacity, which is a mix of largely brownfield and some greenfield expansions. Out of this 22.8 million tons, 18 million tons is focused on the northern markets and 4.8 million tons for the western markets. A very important point for you to note is we will always be fully invested in clinker. At the end of this expansion, we will be reaching 148 million tons of clinker capacity with a clinker conversion factor reaching close to 1.6 X. This expansion also will be funded largely by internal accruals. There might be some temporary borrowings that will be done. But by the time we complete our expansion, we will be again less than 0.7x net data bid down. Cables and wires business. The business is on track to launch production in Q3 fiscal 26. Land and buildings have been secured. Long lead machinery items have been placed. We expect delivery to start from January 26th. and the plant should get commissioned in time for Q3 production launch. Key managerial people have also started onboarding. I touched upon ICL and Kesaram assets. We, as I mentioned, India Cement's brand transition has been completed to 31%, up to 31% of their sales as Ultratech, and it will cross the 40% mark by December quarter and then further up. thereby helping us realize the benefits of synergy in the books of India Cements on a very rapid pace. As a post balance sheet event in India Cements, we have exited the coal assets held in Indonesia and the cash flows that will be realized from the sale of these assets will help reduce their debt. Another important point to highlight about India Cements is the CAPEX program of 1592 crores, which has been initiated for de-bottlenecking of a small capacity, 21 megawatt renewable energy, 21 megawatts of WHRS, 192 megawatts of renewable energy and other efficiency improvement programs. Over and above that, we are expanding the capacity at Chennai and Rajasthan plants with 2.4 million tons at a cost of 422 crores. These are high-performing markets, and the investment will yield an IRR of upwards of 20%. We acquired India Cements with a capacity of 14.45 million tons. Within no time, there was a debottle licking done, and further brownfield expansions that I have just mentioned will take us to a capacity of 17.55 million tons. we will be able to fund these investments with internal accruals and a mix of debt. However, by the time we complete the expansion, which is January or by the time the expansions are fully operational, the ICL assets will start generating EBITDA per ton of thousand and a net debt EBITDA of around 0.5x. ESORAM assets have also streamlined and a CAPEX of around 500 crores is in progress for WHRS and other efficiency improvements. The brand transition program as I mentioned earlier has already been completed to about 55% of its output and we shall complete the rest of the program by the end of June 26th. Another important point which I must leave with you is our retail footprint. We have a presence with almost 5,000 stores in the country. These retail stores, what we call the UBS stores, sold 21% of our total sales this quarter and also support the dreams of many businesses individual home builders to procure other materials required for building a house. RMC is another important aspect of our business across almost 400 plants in the country. Today, RMC has become about 4% of cement volumes for us. For some of you, the desert is the most important in terms of EBITDA per ton But at Ultratech, this quarter has been a wholesome meal. Thank you. And before taking questions, we wish you all a very happy Diwali. Over to you for questions, please.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, You may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one. Our first question comes from the line of Amit Murarka from Access Capital. Please go ahead.

Yeah, thanks for the opportunity and wishing you a very happy Diwali. So just on this expansion plan that you have announced, so after this, I just wanted to know how much more scope is there, given that this is focused on north and west, and I'm guessing there is scope even in east, south, those markets as well. So what is the additional scope for brownfield expansion that exists in the portfolio?

Amit, hi. So we are now stitching our program to reach about 240 to 45 million tons, which will get completed by fiscal 29. There is definitely scope for 20, 25 million tons more. I'm talking about beyond 29, 30, 31. And in those times, there will be further possibilities. There will be possibilities of greenfields clinker-based units also since we continuously keep acquiring mining rights and land acquisition is an ongoing process. So it's not only brownfield but we'll also have greenfield expansions depending upon the market appetite which we believe will be very high.

Understood. And also while you spelled out the other expenses, the reasons for that expense to jump, even raw material has moved up.

So is there some one-off even in that or that's more like... There might be some purchase price impact other than there's no one-off.

Right. Yeah.

And out of the 200 per ton, which you summed up under various items, how much of it will go away essentially in Q3, if you could just give some number on?

Maintenance will come down. At least ballpark 100 will come down.

Right, right. And just lastly on the fuel cost, we have seen Petcoke move up while you have only 44%, but will net fuel cost go up given that there's coal compensation says positive benefit as well?

No, so we'll have a bigger benefit because, you know, Ultratech consumes higher amount of coal as compared to rest of the industry. So that will also be a benefit to us. And now it seems it is always possible that the flavor of Petco starts going down and coal is becoming more important.

So on a net basis, basically fuel costs may not go up too much for you.

It will not go up. All the spot purchases is the only thing which could move up or down. But in our overall scheme of things, we will not have any inflation in fuel costs.

Great, great. Wishing you a happy Bali again. I'll come back in the next one. Thank you.

Thank you. Our next question comes from the line of Indrajit Agarwal from CLSA. Please go ahead.

Hi, thanks for the opportunity. Two questions. First, congratulations on such low capex pattern on the next leg of expansion. Now, keeping that in mind and the cost-saving initiatives across the industry, how do you see the pricing environment or the intensity of taking prices up in the medium term among the players panning out?

Thank you, Inderjeet, for noticing that. Well, as far as efficiency improvement program is concerned, I think Ultratech is the only company which has demonstrated item by item actual delivery of efficiency improvement. Capex cost, I don't know whether anybody else can deliver this kind of an efficiency in Capex cost. So it remains to be seen. Third point you mentioned about pricing. Pricing is not determined by Capex cost or efficiency improvement pricing. I will repeat again, it's always demand. If demand is good, there is always an opportunity for improvement in prices. If there are cost inflation pressures on, let's say just now when we discussed about fuel costs, in case fuel costs go through the roof or any other costs go through the roof, if the industry, if we can't absorb it, it will get definitely passed on. Pricing decisions will not be taken because of lower CAPEX cost.

Sure, that is helpful. Secondly, on industry demand, on your best estimate, how was the demand in second quarter? And do you think the earlier guidance of 6% to 7% industry growth for the full year is achievable?

I think so, yes. It is definitely happening. My confidence is going up higher if I look at my own volume growth. And as far as industry growth is concerned, it has to be somewhere around 4.5% to 5% for this quarter.

Sure. Thank you so much. Happy Diwali.

Thank you. Happy Diwali to you.

Thank you. Our next question comes from the line of Pinakin Parekh from HSBC. Please go ahead.

Yeah. Thank you very much, sir, and happy Diwali to everyone on the calls. So my first question is on the commissioning timeline for the expansions. It says FY28 onwards. So will it get bunched up in FY28 or will it be spread over 28, 29, 30? Not bunched up. It would be mostly evenly spread out. We will come out with detailed schedule in the next quarter, but it's not getting bunched up. Sure. And so secondly, just, you know, more granular color on how does the company see demand between government statics and individual homebuyers? Because from a pricing point of view, you know, for the trade segment, we need the individual homebuyer segment demand to pick up. So, Raspal, where do you see stronger demand over the second half of the year? I think the rural markets, as I talked about it, we have seen about 13% growth in rural markets. which is a very positive point. So IHB segment will continue to drive demand. And also we are seeing continuous, you know, announcements of new intra-projects, which will help the overall demand sentiment. Jamarji would like to add something.

Yeah. So very good afternoon to all of you. So I think Atule said rightly the, The housing sector would be the key driver for the growth and particularly the rural housing, the demand has been good and with the good monsoon actually this year and revision in the MSP price and kind of thing, I think the rural India is likely to do very well. On the urban side, obviously with the change in the income tax rates, personal income tax rates, opening of interest, there are good green shoots and urban demand is also likely to move further. Coming on the infra site, I think, as Atul said, I think the infra is now likely to fire on all front right from the road, rail, aviation and the port side actually because in the recent few months or the few days, there are a lot of announcements actually in terms of building new highways widening of the highways and the metro port and now if the Sagar Mala project pick up then the further it will add to the boost to the demand and commercial side I think again that's likely to be the good story with the GCC the recently a few days back there is an announcement on the big data center Google so I think we believe hopefully demand side will do well.

So, Pinakhin, it's not about a quarter. I think if you are looking at a longer term, and we had put out one chart on how we see the long-term growth also, it's 7-8% CAGR growth. I'm very confident that this is going to happen in the country. Just imagine if you were to delve a little bit more into Google's investments of $15 billion over a period of five years. It's not just a data center, but there will be employees and their housing and the related schools, hospitals, blah, blah, blah. Everything will be coming up. So this is one of Badawan Fort, 76,000 crore project, 300 million ton cargo handling capability. The project will go on for five, six years or even more. but that will change the fortunes of the entire Western market. Got it, got it. This is very helpful, sir. Thank you very much. And, sir, happy Diwali to everybody. Happy Diwali to you.

Thank you.

Thank you.

Our next question comes from the line of Sumangal Nivatia from Kotak Securities. Please go ahead.

Yeah, good evening, everyone. So firstly, appreciate all the detailing on the expansion plans and also a lot of more disclosures in the regular quarterly presentation. Thanks for that. So my first question is on the North Market. You shared in the presentation that last couple of years, the peak utilization has been approaching 90%. Any thoughts on how are we looking at over the next four to five years, given the

a lot of peers, JK, Dalmia, JW, all focusing on north in the next leg of expansion. So any analysis which you can share on our estimates, how is the future? Is there a risk of an oversupply situation gradually building in north given the supply?

No, Sumangal, no, I don't think so. And I think the more important from architect's point of view is we have always grown heavily better than the rest of the industry, at a pace higher than the industry, we are confident that our capacity share, which today stands at 28%, will go up to 32%, 33%, and there's no stopping us there. So Ultratech will continue to gain market share. Ultratech does not see any risk in being able to sell more volumes of cement charges.

Yes.

To further add upon, I think also it is an overall function if you talk about the capacity utilization where your plants are located actually. Once we will share you the more details in the next quarterly discussions actually based on our footprint and location, I think AltaTech would be standout in terms of that.

I didn't want to say it's a bungalow, but deserts are deserts and city is a city.

Understood.

We can discuss later offline, yeah.

Okay. So on the green power mix, we've reached 42%. One is over the next couple of years, where do we settle at?

Sorry, go ahead, please.

Yeah, so just want to understand incrementally any thumb rule we can kind of use as to what costs in every percentage increase or something like that to estimate the cost saving?

We will reach about 65% of green power by the end of our current phase of growth. And I've already started disclosing my cost mix. So when you are reaching 65%, thermal power will come down. You can do an estimation from there.

Okay, okay. And just one last thing. In the opening remarks, you alluded to some sort of a premiumization benefit out of GST. Can you explain what's the thought there?

This is what I believe is everybody has an aspiration, not only for cement, for any other asset. Now, if that particular product comes within my striking distance, which I was not wanting, which I was deferring or, you know, not going that path, Now, if that asset is within my striking distance, I would definitely want to use that asset. Now, let's talk about cement. Cement, when a person is building his house, which is once in a lifetime, if that person was not able to buy Ultratech as a premium product, roughly Rs. 30 impact has happened favorably in the hands of the end consumer. The affordability was 360. There are two ways. The person who was wanting to buy at 360 either will switch down to 330 for a category B brand or might be incentivized to buy a premium brand at 360. That's premiumization.

Okay. Okay. Understood. All right. Thanks a lot, sir. And Diwali greetings to everyone on the call. Thanks. Thank you.

Thank you. Our next question comes from the line of Pratik Kumar from Jefferies. Please go ahead.

Yeah, I have a couple of questions.

Firstly, again on premium segment, how do you think the premium segment pricing can pan out over the next 12 months versus the regular product for yourself or for market?

It, again, depends upon demand. Prateek, if demand is robust and there's a cost pressure also, then obviously there's an opportunity to push it into prices.

And where do you envisage your 33% premium mix going to over next 12 to 18 months?

What percent? Sorry? Premium products. Any data point, guys? I don't have a number immediately Pratik take it offline don't want to give you know an ad hoc answer. We can discuss on Monday I will share some more highlights.

Sure you have like reported like life for life through to 7 percent for the overall console operations. How is that split in region wise and also your total 71 percent capacity utilization for first half how would that be region wise?

So, if I look at regional capacity utilization, north and, in fact, south are in the 70s, and central, east, and west is in high 60s, and central and east is low 60s.

And what about some volume growth region-wise?

Volume growth region-wise... I think the capacity utilization should be a good parameter for you. I don't have immediately the regional growth numbers.

Sure, no problem. And last question on your expansion into northern markets. So, while some of the capacity appears to be in central, you are allocating all those capacity to north, like, regionally.

I think, yeah, I know, I was expecting somebody to ask this question. For us, we split UP and MP into UP East, UP West, and MP East and MP West. the western parts of MP and UP are more north-centric. Because let's take off Vikram Cement, which is in Madhya Pradesh, but it is an hour away and you are into Rajasthan. So that is part of our Rajasthan or northern markets as compared to calling it a central market. Similarly, Dhar is very suitable for servicing northern markets. Dadri which is sitting in Delhi is in UP but it serves northern markets. So that is why we look at UP West and MP West in our internal scheme of things as northern markets. So these, even if you want to classify them as central areas but the output or their distribution is in the northern markets.

Sure, makes sense. That's it for my test and wish you happy Diwali.

Thank you. Happy Diwali, Pradeep.

Thank you. Our next question comes from the line of Rashi from Citi. Please go ahead.

Thank you. Just a quick question on KSORAM. The EBITDA pattern that you've given is at 755 and I understand the first quarter was about 1000 rupees. So this entire decline, I mean, barring the redization, it got to do with all these maintenance.

Yeah, maintenance, shutdowns, maintenance, that's it.

But was there any offsetting impact with the improvement in the rebranding to Ultratech?

Obviously, because I have at least 15 to 20 rupee delta on pricing between Ultratech and Kesaram old brands. So there is an advantage.

I'm just trying to understand how you think about KSORAM going forward from here.

So my sense is December, I should be back to $1,000. And once we are completing our brand transition in KSORAM, it should be operating at, because again, the KSORAM asset service is based in South, but service is Mumbai market. The 9 million ton plant, sedum plant, is closer to the Maharashtra market, so it should enjoy the profitability of the Western markets. Once WHRS and everything is implemented, it will be crossing 1,100, 1,200 mark by the end of June 26. Got it.

And just a bookkeeping question, sir, India EBITDA per ton, which was about 1230 in one queue, should roughly, is it working out about 900 in this quarter on a blended basis? 966. In India, all in, as in including Kesaram and India Cement?

That includes India Cement also. India Cement is 386 rupees a ton.

Sorry, 966 includes Indian?

I think you would look at 914 if that is a number you are looking at.

Okay. Got it. And from pricing versus like spot pricing versus what you had in the second quarter, is it largely stable?

Pricing as cement prices or coal prices?

Cement, cement prices.

I thought you were asking about cement bag prices. So, no, prices are stable. Okay.

So you'll see an improvement in the cost of the Rs. 100 reversal that you're talking about offered by higher petco prices going forward.

As I also mentioned, our fuel prices are not going up because we will also have the advantage of coal sales getting knocked off and the maximum benefit without a doubt will be to Ultratech.

Got it. Okay. Thank you. Happy Diwali. Thank you.

Happy Diwali to you.

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

Congrats on a good set of numbers. Firstly, I'd like to thank you for giving such a good presentation where there's like very good amount of transparency in reporting in terms of numbers with organic and inorganic.

It really gives us a good amount of confidence in what you're doing.

I have a few questions. First question is, this pricing action for GSP, is there any kind of a window or timeline for which we must allow to increase prices? No, there is nothing like that. But, you know, prices will go up if there is pressure on costs, if there is a huge amount of demand, or if there is a shortage of material, then prices go up. There is no prescription around that. Okay, sir. And, like, just on a quarter-on-quarter, like, we have seen a small fall in prices in terms of realization. What are the reasons where you would say the impact of this is more? Central was higher. And, one second. NCR. Okay. So, I would say quarter on quarter. Okay, 3A.

Central.

Central was the most impacted. Okay. And when we mention about margin profile, what is the margin profile difference between regular cement versus premium? Because you are saying that premiumization is could be something else to play out. I just wanted to figure out what would be the difference. You know, it is very difficult to do. It becomes a theoretical calculation. So, it's a lot of overhead allocation will be done. If you were to do, just doing a contribution analysis, that is different. But EBITDA analysis is very theoretical. So, we don't do that.

Okay. Okay. Got it, sir. Sir, and last question is you had mentioned about like some plants have been dropped in the presentation and we have also done a little bit of a rejig there.

So, is this more of a strategic thing or is there any other reason why we can do this? Strategic because, you know, when we had started off on that expansion plan, India Cements was not acquired and we were doing, let's say, a bulk terminal in Chennai. Now, we have the grinding unit in Chennai. So, On the contrary, we have decided to increase the capacity of Chennai grinding unit of India Cements and drop our investment on the bulk terminal in Chennai. Now, because we are dropping the bulk terminal, the corresponding clinker which was coming up in Tadipatri, which is Andhra Pradesh, which was going to serve this location, we have dropped the grinding capacity in Tadipatri unit. So, it is all... what should I say, balancing, no other compulsions. So, in West Bengal, we have dropped the grinding unit. I think to some 1 million ton. Any specific thing there? Because, again, that was rebalancing. We dropped Kharagpur and we have increased our presence in Dhankuni. So, it's again locational advantages that we had, you know, net logistics advantage that we could get. That's how we have tried to optimize our KFX. Okay. Thank you, sir. Happy Diwali. Happy Diwali to you.

Thank you. Our next question comes from the line of Sanjeev Kumar Singh from Motilal Oswal Financial Services. Please go ahead.

Thank you for the opportunity, sir. So, our current CC ratio is around 1.4 times and when we get the clinker capacity addition schedule, we said that it's based on 1.56 times of CC ratio. So, should we assume that gradually we want to increase our clinker conversion ratio to around 1.55, 1.56 times over the next few years and if we do that, what will be the cost advantages which we would see? So, as I mentioned, we will actually reach 1.59, 1.6 post this expansion obviously which means higher amount of blending will take place and in our the current expansion program itself we had said we will reach 1.54 so obviously we are focusing on increasing our blending which helps us sustainability efforts also and it is cost advantages as well Just a housekeeping question, because of the previous question which was raised, I think there is a small error in my presentation. When we have talked about dropping off three assets, there were a couple of assets which we rebalanced. For example, Dhankuni, which was not part of our plan. So instead of Kharagpur, we have gone into Dhankuni. Anything else? Secondly, sir, when there has been a drop in or reduction in green energy sales, but we believe that at the same time there has been some increase in overall GST on coal from 5% to 18%.

So considering that, what kind of cost benefit we would see if considering both these numbers?

GST increase in coal as input tax credit does not impact us. Like when GST on cement has gone down, it does not impact the profitability. Similarly, GST changes in coal does not impact the profitability. However, cess, which was not allowed as an input, it's a cost, that going down is directly advantageous. Okay, I got it. Thank you, sir. Vishu and your team are very happy Diwali. Thank you.

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

Hello. Hi, Rajesh. Hi, sir. Good afternoon. Good evening, everyone. Good evening. Sir, my question pertains to this question. clinker expansion which you are doing you know Dalobi IU you have mentioned you know Tamil Nadu there is an wrong field expansion of 0.4 million ton in the India cement. Is there any clinker expansion also expected at that plant? That is the clinker capacity going up no? If that is a grinding capacity India cement no there is no further clinker capacity. But we have enough available in the region to service it.

Okay, okay. And this 22 million ton, your capex cost is, you know, less than 500 crore per ton. So, you know, how much is the clinical capacity cumulatively that you're planning to add?

Total about 15.68 million tons. So, 8.04 are two specific plants and there are de-bottleneckings across the regions. Okay. That is great. And so what would be the total capex number for next two years on the ongoing projects? I will have about 10,000 crores minimum per year outgo. Okay, 10,000 crores.

And lastly, you mentioned earlier in the call, due to this higher maintenance and advertisement cost in Q2, on a per-turn basis, how much of these costs will get reversed in Q3?

Give or take 100 rupees per turn. I think that's all from my end. Thank you and wishing the whole team a very happy Diwali. Thank you.

Thank you. Ladies and gentlemen, we will take this as a last question for today. On behalf of Ultratech Semin Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.

Thank you.