Q1 2027 JSW Cement Ltd Earnings Call

August 14, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the JSW Cement Earnings Call for the quarter ended 30th June 2026, hosted by Philip Capital. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 1: Ladies and gentlemen, good day and welcome to JSW Cement earnings call for the quarter ended 30 June 2026, hosted by PhillipCapital. 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 touch-tone 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, Mr. Agarwal.

Operator: Ladies and gentlemen, good day and welcome to JSW Cement earnings call for the quarter ended 30 June 2026, hosted by PhillipCapital. 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 touch-tone 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, Mr. Agarwal.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Vaibhav Agarwal from Philip Capital India Private Limited. Thank you, and over to you, Mr. Agarwal.

Speaker #2: Yeah, thank you, Renju. Good morning, everyone. On behalf of Philip Capital India Private Limited, we welcome you to the Q1 FY27 call of JSW Cement Limited.

Vaibhav Agarwal: Yeah. Thank you, Renju. Good morning, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q1 FY27 call of JSW Cement Limited. On the call from JSW Cement we have with us Mr. Nilesh Narwekar, Chief Executive Officer, Mr. Narinder Singh Kahlon, Director Finance and Commercial and Chief Financial Officer, Mr. Hitendra Jariwala, Chief Marketing Officer, and Mr. Kunal Mukherjee, Head Investor Relations. I would like to mention on behalf of JSW Cement Limited and its management that certain statements that may be made or discussed on this conference call may be forward-looking statements based on current management expectations and also something that relates to future expected business development by JSW Cement's management.

Speaker #2: On the call from JSW Cement, we have with us Mr. Nilesh Narvekar, Chief Executive Officer; Mr. Khelon, Director of Finance and Commercial, and Chief Financial Officer; Mr. Hitenra Jariwala, Chief Marketing Officer; and Mr. Kunal Mukherjee, Head of Investor Relations.

Speaker #2: I would like to mention on behalf of JSW Cement Limited and its management that certain statements we have made or discussed on this conference call may be forward-looking statements based on current management expectations, and also relate to future expected business developments by JSW Cement's management.

Speaker #2: Such statements are subject to a number of risks, uncertainties, and other important factors, which may cause the actual developments and results to differ materially from any management predictions made on this call.

Vaibhav Agarwal: Such statements are subject to a number of risks, uncertainties, and other important factors which may cause the actual developments and results to differ materially from any management predictions made on this call. JSW Cement Limited and the management of the company assumes no obligation to publicly update or alter these forward-looking statements, whether as a result of any new business development information or future event or otherwise. Also, participants on the call can download a copy of JSW Cement's Q1 FY27 results presentation from the company website or stock exchanges. I will now hand over the floor to the management of JSW Cement for their opening remarks, which will be followed by Q&A. Thank you, and over to you, sir.

Speaker #2: JSW Cement Limited and the management of the company assume no obligation to publicly update or alter these forward-looking statements, whether as a result of any new business development, information, future event, or otherwise.

Speaker #2: Also, participants on the call can download a copy of JSW Cement's Q1 FY27 results presentation from the company website or stock exchanges. I will now hand over the floor to the management of JSW Cement for their opening remarks, which will be followed by the Q&A session.

Speaker #2: Thank you, and over to you, sir.

Speaker #3: Yeah, thank you, Vaibhav. Good morning to all, and we welcome you to the Q1 FY27 earnings call of JSW Cement. I hope all of you have had the chance to review our results and investor presentation.

Kunal Mukherjee: Yeah, thank you, Vaibhav. Good morning to all, and we welcome you to the Q1 FY27 earnings call of JSW Cement. I hope all of you have had the chance to review our results and investor presentation. With this, I will hand over the call to Mr. Nilesh Narwekar for his opening remarks. Over to you, sir.

Speaker #3: With this, I will hand over the call to Mr. Nilesh Narvekar for his opening remarks. Over to you, sir.

Speaker #4: Thank you, Kunal, and good morning to all. FY27 has started off on a strong note for the company, despite the ongoing uncertainty around the West Asia crisis and the impact of state elections held early in the quarter.

Nilesh Narwekar: Thank you, Kunal, and good morning to all. FY27 has started off on a strong note for the company despite the ongoing uncertainty around the West Asia crisis and the impact of state elections held early in the quarter. As per our reading, cement demand in South, West, and East regions grew approximately 6% YOY in Q1 FY27. The North region, where we started sales in this quarter, saw substantially higher demand growth of approximately 11% YOY. Government CapEx did much of the heavy lifting in the quarter. Central CapEx grew by 24% YOY. Data indicates that 28% of the FY27 CapEx budget has already been utilized in Q1. Similarly, state CapEx and infra construction goods output continue to grow YOY.

Speaker #4: As per our reading, cement demand in the South, West, and East regions grew approximately 6% year-over-year in Q1 FY27. The North region, where we started sales in this quarter, saw substantially higher demand growth of approximately 11% year-over-year.

Speaker #4: Government capex did much of the heavy lifting in the quarter. Central capex grew by 24% year-over-year, and data indicates that 28% of the FY27 capex budget has already been utilized in Q1.

Speaker #4: Similarly, state capex and infra construction goods output continue to grow year-over-year. We are seeing a very strong demand outlook on the infra and large project side.

Nilesh Narwekar: We are seeing very strong demand outlook on the infra and large project side for the rest of the year, which will support our non-trade cement and the GGBS business. Just to give a few examples of large projects in our regions. In MMR, we see pace picking up in the bullet train project, the Maharashtra packages, and the Western Coastal Road project at Mumbai will also gather pace. Post monsoons, road-related works are expected to pick up speed too. In Pune, would like to highlight the Pune Ring Road project and various new elevated road packages. There are also few new metro projects planned in Pune. In South Region, Amaravati new capital development project at AP is gaining speed. The NPCIL nuclear power plant expansion in North Karnataka and several large road packages in Chennai and Kerala are expected to generate substantial demand.

Speaker #4: For the rest of the year, this will support our non-trade cement and the GGPS business. Just to give a few examples of large projects in our regions—in MMR, we see pace picking up in the bullet train project, the Maharashtra packages, and the Western Coastal Road project at Mumbai will also gather pace.

Speaker #4: Post-monsoon, road-related works are expected to pick up speed too. In Pune, I would like to highlight the Pune Ring Road project and various new elevated road packages.

Speaker #4: There are also a few new metro projects planned in Pune. In the southern region, the Amravati New Capital Development Project in Andhra Pradesh is gaining speed, the NPCIL Nuclear Power Plant expansion in North Karnataka, and several large road packages in Chennai and Kerala are expected to generate substantial demand.

Speaker #4: On the residential front, we're seeing strong residential activity in Pune, Hyderabad, and Bangalore, and most of you will be aware of the substantial residential redevelopment happening in Mumbai and the suburbs.

Nilesh Narwekar: On the residential front, we are seeing strong residential activity in Pune, Hyderabad and Bangalore, and most of you will be aware of the substantial residential redevelopment happening in Mumbai and the suburbs. Finally, on the macro front, we continue to monitor the external environment, which remains volatile. As fuel prices remain elevated, we are increasing our share of domestic fuel for the rest of the year. Moving to the key operational highlights for Q1 FY27. Firstly, on volumes. Our total sales volume in Q1 FY27 increased by 15% YOY to 3.81 million tons. Taking this product-wise, cement volume sold was 2.34 million tons, increased 27% YOY. For ease of comparison, if we exclude the North operations, the volume increase was 8% YOY.

Speaker #4: Finally, on the macro front, we continue to monitor the external environment, which remains volatile. As fuel prices remain elevated, we are increasing our share of domestic fuel for the rest of the year.

Speaker #4: Moving to the key operational highlights for Q1 FY27: Firstly, on volumes, our total sales volume in Q1 FY27 increased by 15% year over year to 3.81 million tons.

Speaker #4: Taking this product-wise, cement volume sold was 2.34 million tons, an increase of 27% year-over-year. For ease of comparison, if we exclude the north operations, the volume increase was 8% year-over-year.

Speaker #4: As we had flagged in our Q4 call, demand in April and the early part of May was affected due to labor migration and state elections, but we saw a strong rebound in the month of June.

Nilesh Narwekar: As we had flagged in our Q4 call, demand in April and early parts of May was affected due to labor migration and state elections. But we saw a strong rebound in the month of June. We would also like to touch upon the contribution from the North region. The market perception has been very positive so far, with an average utilization level of 55% in Q1. The utilization rate touched almost 68% in June 2026. GGBS volume growth was relatively muted at 2.6% YOY. However, we are optimistic on the prospects for GGBS for the rest of the year. We have received approvals for over 29 large infra projects in Q1, and moreover, the project pipeline is also robust, as mentioned earlier. Moving to product ASP. Cement realization for Q1 FY27 was INR 4,951 per ton.

Speaker #4: We'd also like to touch upon the contribution from the North region. The market perception has been very positive so far, with an average utilization level of 55% in Q1.

Speaker #4: The utilization rate touched almost 68% in June '26. GGPS volume growth was relatively neutral at 2.6% year-over-year. However, we are optimistic on the prospects for GGPS for the rest of the year.

Speaker #4: We have received approvals for over 29 large infra projects in Q1, and moreover, the project pipeline is also robust as mentioned earlier. Moving to product ASP, cement realizations for Q1 FY27 were ₹4,951 per ton, an increase of 6% quarter-on-quarter, with the highest increase in the East region followed by South and West.

Nilesh Narwekar: That is an increase of 6% QOQ with the highest increase in East region, followed by South and West. GGBS realization in Q1 FY27 was INR 3,807 per ton, an increase of 3.4% quarter on quarter. Within cement, trade mix remains stable at 51%. Our clinker to cement factor increased to 55% with the launch of North operations, but remains one of the lowest in the industry. Lead distance remains stable in the Q2. I would also like to briefly touch on the capacity expansion program. Substantial progress has been made on installation of the waste heat recovery system, the OLBC and the AFR co-processing system at the Nagaur integrated unit, and these are expected to commission in the next few weeks, which is going to bring down our costs significantly.

Speaker #4: GGPS realization in Q1 FY27 was ₹3,807 per ton, an increase of 3.4% quarter-on-quarter. Within cement, trade mix remains stable at 51%. Our clinker-to-cement factor increased to 55% with the launch of North operations, but remains one of the lowest in the industry.

Speaker #4: Lead distance remains stable in Q2. I would also like to briefly touch on the capacity expansion program. Substantial progress has been made on installation of the waste heat recovery system, the OLBC, and the AFR co-processing system at the Nandyal integrated unit.

Speaker #4: And these are expected to commission in the next few weeks, which is going to bring down our costs significantly. The additional 1 million ton grinding capacity in Nagor is also on track and is expected to be commissioned by the end of Q2.

Nilesh Narwekar: The additional 1 million ton grinding capacity in Nagaur is also on track and is expected to be commissioned by end of Q2. We added 56 megawatt of wind capacity in Q1 at Dolvi and Vijayanagar, and this took our RE share to 30% in Q1. Let me now hand over to Narinder to take you through the key financial highlights.

Speaker #4: We added 56 megawatts of wind capacity in Q1 at Dorvi and Vijaynagar, which took our RE share to 30% in Q1. Let me now hand over to Narendra to take you through the key financial highlights.

Speaker #3: Thank you, Nilesh. Good morning to all. I will summarize the performance of Q1 '27. At the company level, consolidated revenue was ₹1,896 crore, which is an increase of 22% year-on-year, and flat quarter-on-quarter.

Narinder Singh Kahlon: Thank you, Nilesh, and good morning to all. I will summarize the performance of Q1 2027. At company level, consolidated revenue was INR 1,896 crores. That is an increase of 22% year on year and flat quarter on quarter. Consolidated operating EBITDA was INR 299 crores. That is lower by 7.5% year on year. Despite improvement in realizations, EBITDA declined mainly due to cost pressures in fuel and packing, plus the substantial marketing investment of about INR 33 crores made in North region during Q1. Consolidated operating EBITDA per ton was INR 784 a ton for the quarter. As already mentioned, we started sales in the North region. And this quarter was the first full quarter for us. Excluding the North operations, revenue grew by approximately 10% in quarter, while operating EBITDA increased by 4% to INR 336 crores. That is INR

Speaker #3: Consolidated operating EBITDA was ₹299 crores, which is lower by 7.5% year-on-year, despite improvement in realizations. EBITDA declined mainly due to cost pressures in fuel and packing, plus the substantial marketing investment of about ₹33 crores.

Speaker #3: Made in the North region during Q1. Consolidated operating EBITDA per ton was ₹784 per ton for the quarter. As already mentioned, we started sales in the North region, and this quarter was the first full quarter for us.

Speaker #3: Excluding the North operations, revenue grew by approximately 10% in Q1, while operating EBITDA increased by 4% to ₹336 crore. That's ₹979 per ton.

Narinder Singh Kahlon: 979 a ton. Total EBITDA, including other income, was ₹372 crores. PBT was ₹190 crores during the quarter, including positive contribution of about ₹13 crores from the Fujairah operations. CAD for the quarter was ₹153 crores. In terms of the trend in main cost elements in Q1, raw material and power and fuel increased on quarter-on-quarter basis, primarily due to higher fuel cost and impact of Nagaur operations. Blended fuel cost for the quarter increased to ₹1.80 per kcal versus ₹1.49 per kcal in the previous quarter. We are working towards increasing our share of domestic fuel to optimize our costs in the coming quarters. Logistic cost per ton reduced by 2% quarter-on-quarter with a slight reduction in lead of 4 kilometers, as well as some efficiency measures. Other expenses have also increased by 4.5% quarter-on-quarter in absolute terms.

Speaker #3: Total EBITDA, including other income, was ₹372 crore. PBT was ₹190 crore during the quarter, including a positive contribution of about ₹13 crore from the Fujairah operations.

Speaker #3: PAT for the quarter was ₹153 crore. In terms of the trend in main cost elements in Q1, raw material and power and fuel increased on a quarter-on-quarter basis, primarily due to higher fuel cost and the impact of Nagor operations.

Speaker #3: Blended fuel cost for the quarter increased to 1 rupee 80 paisa per MCAL versus 1 rupee 49 paisa. Per MCAL in the previous quarter.

Speaker #3: We are working towards increasing our share of domestic fuel to optimize our costs in the coming quarters. Logistic cost per ton reduced by 2% quarter-on-quarter, with a slight reduction in lead of 4.

Speaker #1: Kilometres as well as from efficiency measures . Other expenses have also increased by 4.5% quarter on quarter . In absolute terms , and this is largely related to the heavy marketing investment in the North region and higher parking costs during the quarter .

Narinder Singh Kahlon: This is largely related to the heavy marketing investment in the north region and higher packing costs during the quarter. In terms of balance sheet, net debt was ₹3,856 crores at the end of June. Net debt to EBITDA stood at 2.95x. Average cost of debt for the quarter was stable quarter-on-quarter at 7.63%. During the quarter, the company incurred CapEx of ₹337 crores. We will now be happy to address your questions. Thank you.

Speaker #1: In terms of the balance sheet, net debt was ₹3,856 crores. At the end of June, net debt to EBITDA stood at 2.95 times.

Speaker #1: Average cost of debt for the quarter was stable . Quarter on quarter at 7.63% . During the quarter , the company incurred CapEx of three .

Speaker #1: 37 crores. We will now be happy to address your questions. Thank you.

Speaker #2: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on your touchtone telephone.

Operator 2: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchtone 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 question queue assembles. The first question comes from the line of Prateek Kumar with Jefferies. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchtone 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 question queue assembles. The first question comes from the line of Prateek Kumar with Jefferies. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Patrick Kumar with Jefferies.

Speaker #2: Please go ahead

Speaker #1: Hello? Yeah, good morning. My first question is on the North operation operating loss of ₹40 crore in this quarter, including, you said, ₹33 crore marketing investment.

Prateek Kumar: Hello. Yeah, good morning, sir. My first question is on your north operation. Operating loss of ₹40 crores in this quarter, including, you said ₹33 crore marketing investment. Can you discuss what kind of marketing investments are these? Also, is this ₹40 crore loss in line with what you expected maybe last year, during IPO? What kind of full year EBITDA you can expect from north operation in first year?

Speaker #1: Can you discuss what kind of marketing investments these are? Also, is this ₹40 crore loss in line with what you expected?

Speaker #1: Maybe last year during the IPO, and what kind of full-year EBITDA can you expect from North operations in the first year?

Nilesh Narwekar: Yeah. Hi, Prateek. This expenditure in terms of marketing of INR 33 crores was primarily around the new campaign launch, which was undertaken on the back of the launch in the north, which was launched. That was one, and of course, there were a lot of activation activities which was done on the ground level. There was a Khel Mahotsav done where we connected with all the 10,000 villages. 10,000 teams participated in a cricket tournament in Rajasthan, similarly, Dangal in Haryana, plus all the activation work at the ground level. So it is a combined effect of all of this, which is contributing towards this INR 33 crore of marketing expenditure. As compared to the BP, it was planned in our BP, and we are tracking ourselves against that.

Speaker #3: So this is this expenditure in terms of marketing , 33 crores is primarily around the the new campaign launch , which was undertaken on the back of the launch in the north , which was .

Speaker #3: Which was launched, and that was one. And of course, there were a lot of activation activities which were done on the ground level.

Speaker #3: Like, there was a Khel. We have done where we connected with all the 10,000 villages. 10,000 teams participated in the cricket tournament in Rajasthan.

Speaker #3: Similarly , in Haryana , plus all the activation work at the ground level . So a combined effect of all of this , which is which is which is contributing towards this , towards the 33 crore of marketing expenditure And as compared to our compared to the BP , it was planned in our BP .

Speaker #3: And we are tracking ourselves against that.

Speaker #1: Yeah. And what kind of performance are you looking for full year for North? Is it going to turn profitable?

Prateek Kumar: Yeah, and what kind of performance are you looking for full year for north? Is it going to turn profitable?

Speaker #3: Yes . We should be . We . I mean as we had we had mentioned in in the first quarter , we were I think we were close to 60 , 60 , 55% of capacity utilization .

Nilesh Narwekar: Yes, we should be. As we had mentioned, in the first quarter, I think we were close to 60%, 55% of capacity utilization. We are holding ourselves to that. In fact, we should be closer to 60% plus by the end of the year in terms of our north operations. The real kicker for us that is going to happen now in terms of costs is once the clinker costs start to come down with the commencement of the OLBC, the alternate fuel, the waste heat recovery is kicking in, the move from imported coal to lignite, and-

Speaker #3: And we are holding ourselves to that . In fact , we should be closer to 60% plus by the end of the year in terms of North operations And the real kicker , the real kicker for us , that's going to that's going to happen now in terms of costs is once the clinker costs start to come down with the commencement of the Olpc , the alternate fuel , the waste heat recovery is kicking in .

Speaker #3: The move from imported coal to lignite and

Speaker #2: Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected.

Operator 2: Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected. Please go ahead.

Operator: Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected. Please go ahead.

Speaker #2: Please go ahead .

Speaker #3: Yeah , hi . Sorry , guys . The line dropped , but I was talking about how our costs are likely to come down .

Nilesh Narwekar: Yeah. Hi. Sorry, guys, the line dropped. But I was talking about how our costs are likely to come down, specifically the clinker costs are likely to come down in Q2 with the implementation of the overland belt conveyor, the alternate fuel handling systems, the waste heat recovery, which has already been commissioned, it is going to get fully in flow. And of course, the rotation towards more domestic coal and increase in lignite in our operations. All that is being planned for Q2, and we expect the benefits to start to kick in thereafter.

Speaker #3: Specifically, the clinker costs are likely to come down in Q2 with the implementation of the overland belt conveyor and the alternate fuel handling systems.

Speaker #3: The waste heat recovery , which has already been commissioned . It's going to get fully , fully in flow . And of course , the rotation towards more domestic coal and increase in lignite in our operations .

Speaker #3: So, all that is being planned for Q2, and we expect the benefits to start to kick in thereafter.

Speaker #1: Thanks for the question is on . Growth has been far slower in this quarter . You said we've got significant contracts in like one Q later part .

Prateek Kumar: Thanks, sir. My other question is on GGBS. Growth has been far slower in this quarter. You said you have got significant contracts in one queue later part. What kind of growth which you are looking at in this segment, going forward?

Speaker #1: What kind of growth are you looking at in the segment going forward?

Speaker #3: Sure. So first, as you can see in Q1 of 2027, the demand was affected by a number of topical reasons. Let me explain: there were MK closures in the West.

Nilesh Narwekar: Sure. So first is, see, in Q1 FY27, the demand was affected by a number of topical reasons, and let me explain that. There were RMC closures in the West. There were aggregate availability issues in the South. And the low OPC plant mix cost was a combination of these effects. Now, guidance for Q2 FY27. Despite Q2 being a monsoon season, we are expecting it to be better than Q1, and signs are visible already in the month of July. As I had already mentioned in the opening remarks, we have received approvals for over 29 large infra projects in Q1. Moreover, the project pipeline is also fairly robust. And we are also applying for additional approvals across the central bodies. And we expect GGBS to be, again, in the high single digits in terms of growth for the year.

Speaker #3: There were aggregate availability issues in the South and the low OPC slash mix cost was was was was a combination of these effects .

Speaker #3: Now guidance for quarter two FY 27 . Despite Q2 being a monsoon season , we are expecting it to be better than Q1 and signs are visible already in the month of July as I had already mentioned in the opening remarks , we have received approvals for over 29 large infra projects in quarter one .

Speaker #3: Moreover, the project pipeline is also fairly robust, and we are also applying for additional approvals across the central bodies. We expect GDP to be again in the high single digits in terms of growth for the year.

Speaker #1: Sure. Thank you, sir. These are my questions.

Prateek Kumar: Sure. Thank you, sir. These were my questions.

Speaker #3: Thank you

Nilesh Narwekar: Thank you, Prateek.

Speaker #2: Thank you. A reminder to all participants that you may press star one to ask a question. The next question comes from the line of Rashi with CT.

Operator 2: Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of Rashi Biyani. Please go ahead.

Operator: Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of Rashi Biyani. Please go ahead.

Speaker #2: Please go ahead .

Speaker #4: Thank you for continuing the question on the north. So, I think the marketing spend was ₹33 crore in this quarter. I remember it was about ₹23 crore in the prior quarter. What are you expecting in terms of marketing spends going forward?

Rashi Biyani: Thank you. Just continuing on the question on the north. I think the marketing spend there was INR 33 crores in this quarter. If I remember, it was about INR 23 crores in the prior quarter. What are you expecting in terms of marketing spend going forward as to Q3? That is one. Second is on the overall cement volume growth, 8% was the ex-north growth for this quarter. How are you expecting to do overall going forward?

[Analyst] (Citi): Thank you. Just continuing on the question on the north. I think the marketing spend there was INR 33 crores in this quarter. If I remember, it was about INR 23 crores in the prior quarter. What are you expecting in terms of marketing spend going forward as to Q3? That is one. Second is on the overall cement volume growth, 8% was the ex-north growth for this quarter. How are you expecting to do overall going forward?

Speaker #4: As to Q3 you ? That's one . And second is on the overall cement volumes . 8% was the X not growth for this quarter .

Speaker #4: So, how are you expecting to do overall over—

Speaker #3: The marketing spend in the last quarter was, I think, close to 17 crores. So, the investments in terms of marketing have already been done.

Nilesh Narwekar: The marketing spend in last quarter was, I think, close to INR 17 crores. The investments in terms of marketing have already been done, and we expect to reap the rewards of that in the following quarters. What was the second part of the question, Rashi? Sorry, I missed that.

Speaker #3: And we expect to be back in the following quarters. What is the second part of the question? Sorry, I missed that.

Speaker #4: The overall . So the X north volume growth like you mentioned , was about 8% for cement . So how are you seeing that the rest of the

Rashi Biyani: The overall, the ex-north volume growth like you mentioned, was about 8% for cement.

[Analyst] (Citi): The overall, the ex-north volume growth like you mentioned, was about 8% for cement.

Nilesh Narwekar: Correct.

Rashi Biyani: How are you seeing that track for the rest of the year?

[Analyst] (Citi): How are you seeing that track for the rest of the year?

Speaker #3: How do you . Okay . How does that track for FBR Okay . So I mean , the industry growth that you . I think you're already aware .

Nilesh Narwekar: Okay. How does that track for rest of the year?

Rashi Biyani: Yes.

[Analyst] (Citi): Yes.

Nilesh Narwekar: The industry growth that I think you are already aware, excluding north, we are talking about the industry grew at around 6%. Excluding north, we have done it at 8%. Now, what we have seen is, in the east and the west, we have done significantly better than the industry. In the south is where we had a bit of a headwind. That is behind us, and again, primarily because of topical reasons. Overall, in terms of our growth at a company level, we expect to deliver high teen growth at an overall company basis, if I was to include north also as a part of this.

Speaker #3: Excluding North . We're talking about the industry grew around 6% and we've done . Excluding North . We've done it at 8% . Now what we've seen is in the east and the West , we've done significantly better than the than the industry .

Speaker #3: And in the South is where we had a bit of a headwind that is behind us . And again , primarily because of topical reasons and overall , in terms of our growth at a company level , we expect to deliver high teens growth at an overall company basis .

Speaker #3: If I were to include North also as a part of this,

Speaker #4: Got it. And just on realization, what is your pricing strategy for—obviously you've done very well on realizations. So how are you...?

Rashi Biyani: Got it. And just on realization, what is your pricing strategy going to be? You have obviously done very well on realization. So how are you thinking there?

[Analyst] (Citi): Got it. And just on realization, what is your pricing strategy going to be? You have obviously done very well on realization. So how are you thinking there?

Speaker #4: Have you needed to sort of take the market, or how are you taking that?

Speaker #3: Is this specifically for cement or GGP? Are you asking because both of them have very different approaches? But let me answer for both of them separately.

Nilesh Narwekar: This is specifically for cement or GGBS? Are you asking overall? Because both of them are very different approaches. Let me answer both of them separately.

Speaker #3: Yeah , sure . So on cement , there are concerted efforts which is being made . So all the investments that we're doing primarily in terms of building of our brand , the ground , connect with the decision making influencers , the ground connect with the network , all of that is fundamentally playing out for us in terms of being able to increase our price or reduce the price gap in the A category brand itself .

Rashi Biyani: Both.

[Analyst] (Citi): Both.

Nilesh Narwekar: Yeah, sure. So on cement, there are concerted efforts which is being made. So all the investments that we are doing, primarily in terms of building of our brand, the ground connect with the decision-making influencers, the ground connect with the network. All of that is fundamentally playing out for us in terms of being able to increase our price or reduce the price cap in the A category band itself. So that is one which is playing out. The second thing, of course, is there is an effort which is constantly on to try and keep reducing our, what do you call, the discount structure as well, which again impacts the realization number. These are two aspects which are working out on the cement side. On the GGBS side, the number that you see is primarily a dispersion effect. There has been no change in our pricing strategy overall.

Speaker #3: So that's one which is playing out . And the second thing , of course , is there is an effort which is constantly on to try and keep reducing our , what do you call the discount structures as well , which I can .

Speaker #3: It's the realization that these are two aspects which are working out on the cement side and on the GDP side. I mean, the number that you see is primarily a dispersion effect.

Speaker #3: There's been no change in our pricing strategy overall . We continue to maintain our stance and basically the geographic mix is what is what is what is reflecting in the numbers that you've already seeing for quarter one for GDP .

Nilesh Narwekar: We continue to maintain our stance. Basically, the geographic mix is what is reflecting in the numbers that you are actually seeing for Q1 for GGBS.

Speaker #4: Thank you

Rashi Biyani: Thank you.

[Analyst] (Citi): Thank you.

Speaker #2: Thank you. Please press star one to ask a question. The next question comes from the line of Shravan Shah with Dolat Capital. Please go ahead.

Operator 2: Thank you. Please press star and one to ask a question. Next question comes from the line of Shravan Shah with Dolat Capital. Please go ahead.

Operator: Thank you. Please press star and one to ask a question. Next question comes from the line of Shravan Shah with Dolat Capital. Please go ahead.

Shravan Shah: Hi, sir. A couple of things to get an understanding. For cement, we said that we are looking at a high teens growth, including north. Hello?

Speaker #1: Hi sir . A couple of things to to to get understanding . So for cement , we said that we are looking at a high teens growth including North

Speaker #2: Speakers please go

Operator 2: Speakers, please go ahead.

Operator: Speakers, please go ahead.

Speaker #1: Hello, sir. Can you hear me?

Shravan Shah: Hello, sir. Can you hear me?

Speaker #2: Please go ahead

Shravan Shah: Sir, can you hear me now?

Speaker #1: Sir, can you hear me now?

Speaker #3: Yes , we can hear you loud and clear . Apologies for the for the drop .

Nilesh Narwekar: Yes, we can hear you loud and clear. Apologies for the drop.

Speaker #1: Yeah . No . No issue . Sir . Sir , I just wanted to get a clarity . You said that we are looking at on the cement front .

Shravan Shah: Yeah. No issue, sir. Sir, just wanted to get clarity. You said that we are looking at, on the cement front, high teens volume growth for FY27, including north.

Speaker #1: High teens volume growth for FY27, including North.

Speaker #3: Yes .

Nilesh Narwekar: Yes.

Speaker #1: So I , I was just doing a math . Let's say for FY 26 we have done 7.73 on the cement front . If I just take a 18% growth , it comes 9.12 million .

Shravan Shah: I was just doing the math. Let's say for FY26, we have done 7.73. On the cement front, if I just take 18% growth, it comes 9.12 million. For north, if you take a 60% utilization, which is 1.5 million tons. If I minus that, then it comes to 7.62. That means we are looking at a de-growth on the core front excluding the north. Just wanted to get more clarity on that.

Speaker #1: And for North , if you take a 60% utilization , which is 1.5 million tons . So if I minus that , then it comes to 7.62 .

Speaker #1: That means we are looking at a de-growth on the core front, excluding the North. So, I just wanted to get more clarity on that.

Nilesh Narwekar: Yeah, Shravan. What we are giving you is an overall guidance, including north and GGBS. We will deliver a high teen growth on an overall company basis. That is what we hold ourselves to. While you have done the math, we have also done ours. I think let us stick to the high teen growth in the overall company basis as the guidance from our side.

Speaker #3: Yeah . I mean , what we're giving you is an overall guidance , including North and GBS . We will deliver a high teens growth or an overall company basis .

Speaker #3: So that's what we hold ourselves to . And I mean , while you've done the math , we've also done us . So I think let's let's stick to the high teens growth in the overall company basis as the guidance from our side

Speaker #1: Okay . Because I just wanted to get a because on the GBS , we are seeing a high single digit growth . So on the on .

Shravan Shah: Okay. Just wanted to get it. Because on the GGBS, we are seeing a high single-digit growth. Then we are seeing on our overall high teen. That means on the cement front, including north, it has to be a 25%, 30% kind of a growth that we should be looking at. That is where some clarification I wanted.

Speaker #1: And then we are seeing on the overall high teens . So that means on the cement front , including north , it has to be a , 25 , 30% kind of growth that we should be looking at .

Speaker #1: So that's where I need some clarification. I wanted to ask.

Speaker #3: Okay, can we take this offline? You can connect with Kunal Mukherjee on this.

Nilesh Narwekar: Okay. Can we take this offline? You can connect with Kunal Mukherjee on this.

Speaker #1: No , no issues

Shravan Shah: No issues.

Speaker #2: Mr. Shah, please join the queue for more questions. Please press star one to ask more questions. The next question comes from the line of Sanjeev Kumar Singh with Motilal Oswal Financial Services Limited.

Operator 2: Mr. Shah, please for more questions. Please press star and 1 to ask more questions. Next question comes from the line of Sanjeev Kumar Singh with Motilal Oswal Financial Services Limited. Please go ahead.

Operator: Mr. Shah, please for more questions. Please press star and 1 to ask more questions. Next question comes from the line of Sanjeev Kumar Singh with Motilal Oswal Financial Services Limited. Please go ahead.

Speaker #2: Please go back .

Speaker #3: Thank you for the opportunity , sir . My first question is on . On the profitability of North Plant . So can you give some sense on the profitability difference between North and south south plants for cement ?

Sanjeev Kumar Singh: Thank you for the opportunity, sir. My first question is on the profitability of north plant. So can you give some sense on the profitability difference between north and south plants for cement? So why I am asking this is because some sort of marketing spend will not be one-off in nature. It will continue over the next few quarters or few years also when you continue the operation. So that's why I wanted to understand some, I want to get some sense on the profitability difference between north and south plant, which you are seeing as of now.

Speaker #3: The reason I'm bringing this up is because some types of marketing spend will not be one-off in nature. They will continue over the next few quarters or even years.

Speaker #3: Also , when you continue the operations . So that's why I wanted to understand some some I want to get some sense on the profitability difference between north and south plants , which you are seeing as of now

Speaker #1: Yeah . So we all know north and south are completely different when it comes to profitability . And I'm sure you all have the North performance data available for the for the competition .

Narinder Singh Kahlon: Yeah. We all know north and south are completely different when it comes to profitability. I am sure you all have the north performance data available for the competition. For us, it is early days. By the end of September, or I could say in September, is when we break even, and then we go in the positive territory. March is the month probably when we can, with more conviction, tell you what is going to be the profitability for the coming months. South is subdued. We saw the results for south companies. South is a bit subdued at the moment, but there is a big difference. The difference can be in the range of probably INR 600 to INR 700 a tonne.

Speaker #1: Now for us , it's early days . By the end of September , or I can say in September is when we break even and then we go into the positive territory .

Speaker #1: March is the month, probably, when we can say with more conviction and tell you what is going to be the profitability for the coming months.

Speaker #1: South is subdued. We saw the results for South companies. South is a bit subdued at the moment, but there is a big difference.

Speaker #1: The difference can be in the range of probably ₹600 to ₹700 per tonne.

Speaker #3: Okay . And second question is , in terms of CapEx plans over the next two three years . So when do you when do we want to start the the central plant and what is the ideal net debt to EBITDA , which you would like to maintain by by 28 , 29 .

Sanjeev Kumar Singh: Okay. My second question is in terms of CapEx plans over the next two, three years. When do we want to start the central region plant, and what is the ideal net debt to EBITDA which we would like to maintain by 2028, 2029?

Speaker #1: For this year ? This financial year , are we are going to spend about 2300 odd crores and about 2000 in the next year .

Narinder Singh Kahlon: See, for this year, this financial year, we are going to spend about INR 2,300 odd crore and about INR 2,000 in the next year. See, as we had indicated earlier, our intention is to move from 24.1 million currently capacity to about 43 and a half over the next few years. That requires about INR 7,500, INR 7,600 crore CapEx. So we continue on that journey. But yes, this year, INR 2,300 odd. Next year, INR 2,000, and the following year, probably some of the balance numbers would be spent. Answering your question on the central also is on our priority list. We hope to make some announcement in the coming quarters.

Speaker #1: See, as we had indicated earlier, our intention is to move from 24.1 million currently, capacity to about 43.5 million over the next few years.

Speaker #1: Now that requires about 7000 507,600 crore CapEx . So so we continue on that journey , but yes , this year , 2300 or next year 2000 and the following year , probably some of the balance numbers would be spent .

Speaker #1: Answering your question on the central . Central also is on our on our priority list . We hope to make some announcement in the coming quarters

Speaker #3: And I did do a.

Sanjeev Kumar Singh: Again, net debt to EBITDA, sir? That is my question.

Speaker #1: Net debt to EBITDA: internal guidance for us from the Board is to keep it below three, and always the endeavor will be to keep it below three.

Narinder Singh Kahlon: Net debt to EBITDA, see the internal guidance for us from the board is to keep it below 3, and always the endeavor will be to keep it below 3.

Speaker #3: Okay, sir. Thank you.

Sanjeev Kumar Singh: Okay, sir. Thank you.

Speaker #1: Thank you

Narinder Singh Kahlon: Thank you.

Speaker #2: Thank you. Please press star one to ask a question. The next question comes from the line of Naveen Sahadev with ICICI Securities.

Operator 2: Thank you. Please press star on 1 to ask a question. Next question comes from the line of Navin Sahadeo with ICICI Securities. Please go ahead.

Operator: Thank you. Please press star on 1 to ask a question. Next question comes from the line of Navin Sahadeo with ICICI Securities. Please go ahead.

Speaker #2: Please go ahead. Yeah.

Speaker #3: Good morning .

Navin Sahadeo: Yeah. Good morning, sir, and congratulations on the much faster volume ramp-up in the north region. I had two questions. One is on the RMC business. If you could talk more about the outlook of this particular business, given it is so integral to the cement as well as the GGBS that we offer. How are we looking at how many plants do we have? What is the vision there? Are we planning to enter in the north region as well with this or in other regions? That would be my first question, sir.

Speaker #5: Sir , and congratulations on the much faster volume ramp up in the north region . I had two questions . One is on the RNC business , like if you could talk more about the outlook of this particular business , given it is so integral to the cement as well as the GBS that we that we offer .

Speaker #5: So how are we looking at how many plants do we have ? What is the vision ? There ? Are planning to enter in the north region as well with this or in other regions ?

Speaker #5: That would be my first question, sir.

Speaker #6: Yeah . Hi . So yes , we are in terms of warranty plans currently we've got 15 . We plan to take it up to 35 .

Nilesh Narwekar: Yeah. Hi. Yes, in terms of RMC plants, currently we have 15. We plan to take it up to 35. We are adding 35 more. Our current approach towards the RMC business has largely been it needs to be symbiotic with relation to wherever we have a footprint. Wherever we can supply our cement and/or cementations in terms of GGBS, that is where we set up the RMC plants. In the RMC setup, it is largely either commercial, dedicated or captive. Captive is largely for JSW use. That is how it gets divided. In terms of, what is the next part of the question? Yeah, in terms of revenue, for Q1, we were around INR 180 crores in terms of RMC revenues. We have plans to aggressively scale this up going ahead.

Speaker #6: We are adding 35 more. And our current approach towards the RNC business has largely been—it needs to be symbiotic with relation to wherever we have our footprint.

Speaker #6: So, wherever we can supply our cement and/or cement issues in terms of GBS, that's where we set up the RNC plants.

Speaker #6: And in the RNC setup , it's largely either commercial , dedicated or capital captive is largely for us . That's how it gets .

Speaker #6: It gets it gets divided and in terms of what are the next next part of your question ? Yeah . In terms of revenue for quarter one , we were around 180 crores in terms of revenues .

Speaker #6: And we have plans to progressively scale this up going ahead.

Speaker #5: Yeah .

Navin Sahadeo: Yeah. Thank you.

Speaker #6: Thank you. We have already started operations in the North, as well as wherever we have our cement operations.

Nilesh Narwekar: We have also restarted operations in the north as well, because as I said, it is symbiotic to wherever we have our cement operations as well.

Speaker #5: Sure. So, of the 15 units, is it safe to assume that most of these are currently in the West and South regions, which are close to our GBS sourcing units?

Navin Sahadeo: Sure. So of the 15 RMC units, is it safe to assume that most of these are currently in the west and south region, which are close to our GGBS sourcing units?

Speaker #6: Yes, it is safe to assume in the Q1 '27. There are two units in the North as well.

Nilesh Narwekar: Yes, it is safe to assume. In the 15, there are two units in the north as well.

Speaker #5: And incrementally, when you say the target is 3,035, would it be again in the West region only, or would they now be more in the North and other regions that we are planning to?

Navin Sahadeo: Incrementally, when you say the target is probably 35, would it be again in west region only, or would they be now more in the north and other regions that we are planning to-

Speaker #6: No , it is it is scattered . It is scattered across . So , for example , I mentioned to you our commercial and dedicated operations are primarily mirroring wherever we have synergies or symbiotic arrangements with our cement operations .

Nilesh Narwekar: No, it is scattered across. For example, I mentioned to you our commercial and dedicated operations are primarily mirroring wherever we have synergies or symbiotic arrangement with our cement operations. Whenever it comes to captive, which is a group company setting up expansion or undertaking expansion, there we try and evaluate whether it makes sense for us to provide GGBS at least. So the north markets were currently not included as a part of it. But all the other geography, be it the north, now having entered in the north, the west, the south or the eastern part of India, we have significant captive operations, which is primarily mirroring the expansion that the JSW Group is undertaking this way.

Speaker #6: Right . And whenever it comes to captive , which is a group company setting up expansion or undertaking expansion , there , we try and evaluate whether it makes sense for us to provide at least .

Speaker #6: So the North markets are currently not included as a part of it . But all the other geographies , be it the North , now having entered into North , the West , the South or the eastern part of India , we have significant captive operations , which is primarily mirroring the expansion that the overall JCP group is undertaking Thank you

Navin Sahadeo: Thank you. Sir, my second question was about the long-term capacity expansion plans. I thank you for including a vision there in terms of scaling the capacity to 68 million tons. My question was if you have any milestones benchmarked to these expansions, because we are talking about a couple of lines in north, additional lines I am seeing in north and in central, also some new sites altogether in the northeast region. My question was if there are milestones, if you can talk about, and within the various locations that you have mentioned, are there any priorities or a priority pipeline that, let's say, for example, northeast would supersede or come up earlier than the line 2 in north or central? That kind of a clarification will help us.

Speaker #5: Sir, my second question was about the long-term capacity expansion plans, and I thank you for including a vision there in terms of scaling the capacity to 68 million tons.

Speaker #5: My question was , if you have any milestones , you know , benchmark to these expansions , because we are talking about like , you know , a couple of lines in North , additional lines .

Speaker #5: I'm saying in the North and in Central, also some new sites altogether in the Northeast region. So my question was, if there are milestones, if you can talk about them.

Speaker #5: And within the various locations that you have mentioned, are there any priorities or is there a priority pipeline that, let's say, for example, Northeast would supersede or come up earlier than the Line 2 in North or Central?

Speaker #5: That kind of clarification will help us.

Speaker #1: So .

Speaker #5: .

Speaker #1: Naveen , we are evaluating all the options between a central and a north , east and north expansion . We understand all three acquired importance , all three are are on the priority list for us , but we will sequence them maybe in a couple of months .

Narinder Singh Kahlon: Naveen, we are evaluating all the options between our central and our northeast and north expansion. We understand all three acquire importance. All three are on the priority list for us, but we will sequence them. Maybe in a couple of months we will be in a better position to take that decision. Here the long-term plans are we finish off with the 43 million first and then go for the balance 25 maybe in the next 3, 4 years following the completion of 43 million.

Speaker #1: We will be in a better position to take that decision . But yeah , the the , the plans , the long term plans are they finish off with the 43,000,001st and then go for the balance 25 or maybe in the next three , four years .

Speaker #1: Following the completion of

Speaker #5: Understood. Thank you, sir.

Navin Sahadeo: Understood. Thank you, sir.

Speaker #1: Thank you

Narinder Singh Kahlon: Thank you.

Speaker #2: Thank you. Please press star one to ask a question. The next question comes from the line of Amit Murarka with Access Capital.

Operator 2: Thank you. Please press star 1 to ask a question. Next question comes from the line of Amit Murarka with Axis Capital. Please go ahead.

Operator: Thank you. Please press star 1 to ask a question. Next question comes from the line of Amit Murarka with Axis Capital. Please go ahead.

Speaker #2: Please go ahead .

Speaker #7: Yeah. Hi. Good morning, and thanks for the opportunity. So, on North operations, I just wanted to check if you are booking incentive in Q1.

Amit Murarka: Yeah. Hi. Good morning, and thanks for the opportunity. On north operations, just wanted to check if you have booking incentive in Q1. Could you confirm that one?

Speaker #7: So could you confirm that one?

Speaker #1: No, it's not booked yet.

Narinder Singh Kahlon: No, it is not booked yet.

Speaker #7: And like by when do you expect, or what is stopping you from booking it?

Amit Murarka: By when do you expect, or what is stopping you from booking it?

Speaker #1: No . So as a , as a process , we have submitted the documents . We have we are awaiting the eligibility certificate .

Narinder Singh Kahlon: No. As a process, we had submitted the documents. We are awaiting the eligibility certificate. It should be there very soon. The file has already moved a couple of levels. Once we have that, we will start recognizing the incentive. We expect this to come within maybe 2 months, max.

Speaker #1: Which should be there very soon . The file has already moved a couple of levels and . And once we have that , we will start recognizing the incentive .

Speaker #1: So we expect this to come within maybe two months, max.

Speaker #7: And it's ₹50 crore per annum, right? I mean, in the first five years. So if you get the approval, like—

Amit Murarka: And it's INR 50 crore per annum, right? In the first 5 years. So if you get the approval like-

Speaker #1: No . So , so apart , the major thing is 23% capital subsidy on the on the eligible capital investment . So that unless something , something will add up to about 650 odd crores , which we can receive over ten years , it's not , it's not annual six .

Narinder Singh Kahlon: No. The major thing is 23% capital subsidy on the eligible capital investment. So that, and plus something, will add up to about INR 650 odd crore, which we can receive over 10 years. It's not annual.

Amit Murarka: Yeah.

Narinder Singh Kahlon: It's not annual fixed.

Speaker #7: No, not annual. I said ₹50 crore per annum for five years, and then ₹65 crore for the next five years is what I had in mind from the earlier discussions.

Amit Murarka: No, not annual. I said the INR 50 crore per annum for five years and then INR 65 crore for the next five years is what I had in mind from the earlier discussions.

Speaker #1: No, it's 50 for the first four years, then 65, and then 80.

Narinder Singh Kahlon: No, it is 50 for first four years, then 65, and then 80.

Speaker #7: Yeah , right . So 50 for first four years . So that's what I'm asking . So will you book the 50 for the I mean , in let's say , Q3 itself , if you get the approval or will it have to start from Q3 , then will start from Q3 .

Amit Murarka: Yeah, right. 50 for first four years, so that is what I am asking. So will you book the 50 in, let us say, Q3 itself if you get the approval, or will it have to start from Q3 then? Will the 50 start from Q3?

Speaker #1: So, when it is about the first 50, this is linked to how much of the CapEx I completed. Whatever gets capitalized is what I can, with conviction.

Narinder Singh Kahlon: No. So when it is about the first 50, this is linked to how much of the CapEx I completed. Whatever gets capitalized is what I can, with conviction, say is done. So wait for this quarter because we are finishing with the waste heat, the RMC, sorry, the OLBC, the AFR, et cetera. And once that is capitalized, probably I can answer this much better, whether 50 or something less would be recognized in the current year.

Speaker #1: Say is , is done . So wait for another . This quarter because we are finishing with the waste heat , the RNC .

Speaker #1: As for the OBC , the AFR , etc. and and once that's capitalized , probably I can answer this much better whether 50 or something less would be recognized in the in the in the current year .

Speaker #7: Sure . And on , on GBS , the slower growth . Just wanted to understand , like you said , that pricing strategy has not changed , that you are not raising pricing basically , but also you said that the central CapEx was strong in the quarter .

Amit Murarka: Sure. On GGBS, the slower growth, just wanted to understand, you said that pricing strategy has not changed, that you are not raising pricing, basically. You also said that the central CapEx was strong in the quarter. So I am just getting a bit confused that if pricing was not raised and CapEx was strong, then why was the volume weak?

Speaker #7: So I'm just getting a bit confused that pricing was not raised and CapEx was strong. Then why was the volume pick-up?

Speaker #6: See , as I mentioned , Amit , there were a lot of RNC closures in the West because of because of all the challenges there , aggregate availability issues in the South and the OPC flash mix cost is also becoming , as you say , unviable .

Nilesh Narwekar: See, as I had mentioned, Amit, there were a lot of RMC closures in the west because of all the challenges there. Aggregate availability issues in the south. The OPC clash, mixed cost was also becoming, how do you say, unviable. So those kind of did it. Because of election, there was a lot of labor migration from the geographies that we operate in. So in terms of GGBS sales, there is a significant volume that we get from the south as compared to, I think it is a 60-40 split between south and west. Hence, the numbers were muted overall. The growth that we received was primarily in the west. South was impacted. All that has been corrected for now, and we can already start to see the numbers stack up for the guidance that I had given earlier on the call.

Speaker #6: So those kind of did it . And because of election , there was a lot of labor migration from the from the geographies that we that we operate in .

Speaker #6: So in terms of GBS sales , I mean , there's a significant volume that we get from the South as compared to , I think it's a 6040 split between south and west , and hence the numbers were were muted overall .

Speaker #6: And the growth that we received was primarily in the West. The South was impacted, and all that has been corrected for now.

Speaker #6: And we can already start to see the numbers stack up for the guidance that I've given earlier on the call.

Speaker #7: On the last question, if I may. So, fuel cost rose very sharply in the quarter. What would be your expectation for the second quarter now?

Amit Murarka: Sure, understood. Last question, if I may. Fuel cost rose very sharply in the quarter. What would be your expectation for the second quarter now or let us say the medium term?

Speaker #7: Or, let's say, the medium term?

Speaker #1: So, we are switching to domestic coal. In fact, we have already started buying domestic coal, and we don't see any escalation beyond the numbers that we achieved in Q1.

Narinder Singh Kahlon: We are switching to domestic coal. In fact, we have already started buying domestic coal. We do not see any escalation beyond the numbers that we achieved in Q1. In fact, in the coming quarters, we expect the second quarter will be almost same as the first quarter. Going into the third quarter, we expect the cost to come down for us.

Speaker #1: In fact, in the coming quarters, we expect the second quarter will be almost the same as the first quarter. But going into the third quarter, we expect the cost to come down for us.

Speaker #7: Sure . And just a very last question on the cost savings program . You guys did for a number . Where are you in that journey and how much is left ?

Amit Murarka: Sure. Just a very last question. On the cost savings program you had earlier guided for a number, where are you in that journey and how much is left?

Speaker #6: Yeah .

Nilesh Narwekar: Yeah.

Narinder Singh Kahlon: Amit, I think every quarter it becomes a bit difficult to quantify. I think every two quarters it would make sense. We did guide the street in May itself where we are. Hold on for the next quarter's number. Probably we can give you a better guidance on this. Yes, we are making substantial progress on the renewable power. Once the entire thing is up and running in September, probably we will have our answers to that.

Speaker #1: I think every quarter it becomes a bit difficult to to quantify . I think every two quarters it would make sense . We did we did guide the street in May itself , where we are .

Speaker #1: So hold on for , for , for the next quarter numbers probably we can give you a better guidance on this . Yes , we are making substantial progress on the renewable power and and once the entire thing is up and running in September , probably we'll have our answers to that .

Speaker #7: Got it. Thanks a lot, and best wishes.

Amit Murarka: Got it. Thanks a lot and best wishes.

Speaker #1: Thank you

Narinder Singh Kahlon: Thank you.

Speaker #2: Thank you. Please press star one to ask a question. The next question comes from the line of Siddharth Mehrotra with Kotak Securities.

Operator 2: Thank you. Please press star and 1 to ask a question. Next question comes from the line of Siddharth Mehrotra with Kotak Securities. Please go ahead.

Operator: Thank you. Please press star and 1 to ask a question. Next question comes from the line of Siddharth Mehrotra with Kotak Securities. Please go ahead.

Speaker #2: Please go ahead .

Speaker #3: Thank you for the opportunity, sir. You mentioned that we expect to grow somewhere in the high single digits for the segment.

Siddharth Mehrotra: Thank you for the opportunity. Sir, you mentioned that we expect to grow somewhere in the high single digits for the GGBS segment. If I recall, we had earlier guided that we expect to grow in perhaps mid-teens in this segment. So perhaps is this a change in our overall outlook for GGBS to a slightly lower level?

Speaker #3: Now, if I recall, we had earlier guided that we expect to grow in perhaps mid-teens in this segment. So, is this a change in our overall outlook for GBS to a slightly lower level?

Speaker #6: Yeah . See , the Q1 was impacted because of of what I explained to you earlier and with Q2 , Q3 and Q4 starting up favorably .

Nilesh Narwekar: Yeah. See, Q1 was impacted because of what I explained to you earlier. With Q2, Q3, and Q4 starting off favorably, yes, the revise would be what I shared with you, which is the high single digits for GGBS.

Speaker #6: Yes, the device would be what I shared with you, which is the high single digits for GDP.

Speaker #3: I and in , say , FY 2829 , do we expect similar numbers or do we expect to go back to double digit guidance ?

Siddharth Mehrotra: In say, FY28, 29, do we expect similar numbers or do we expect to go back to double-digit guidance?

Speaker #6: Honestly , it's strongly correlated with the CapEx spend and the infra growth . And that continues to definitely be there . And I think the the investment that we currently made in this , in this specifically in quarter one , in terms of getting approvals and getting these large infra projects not listed .

Nilesh Narwekar: Honestly, it is strongly correlated with the CapEx spend and the infra growth. As that continues, this will definitely be there. I think the investment that we have currently made specifically in Q1 in terms of getting approvals and getting these large infra projects all listed and registered, I think personally as a company, we see a very positive outlook going forward, which will play out not only in this year, which is FY27, also in FY28 onwards.

Speaker #6: And registered , I , I at least personally as a company , we see very , very positive outlook going forward , which will play out not only in this year , which is 27 .

Speaker #6: Also, in FY28 onwards.

Speaker #3: Understood, sir. So, secondly, we just highlighted that we expect to end the year with around 60% capacity utilization at our Rajasthan plant.

Siddharth Mehrotra: Understood, sir. Secondly, we just highlighted that we expect to end the year with around 60% capacity utilization in our Rajasthan plant. Just wanted to understand, even Q1 exit, our capacity utilization is more than 60%, 65% as per our PPT. So why the subdued sort of expectations for full year utilizations?

Speaker #3: So, just wanted to understand—even once we exit, our capacity utilization is more than 6,065% as per our PPT. So, why the subdued sort of expectations for full-year utilization?

Speaker #1: No, it's not subdued. See, today we are operating at 2.5 million capacity, and another 1 million is going to come up in September and early October.

Narinder Singh Kahlon: No, it is not subdued. See, today we are operating 2.5 million capacity and another 1 million is going to come up in September and early October. Then we are looking at 3.5 million capacity. This number, 60% plus, though, you are right, we did mention that we exited June with a 68% utilization, but it is just that the capacity is going to go up by another 1 million.

Speaker #1: So, then we are looking at 3.5 million capacity. So this number is 60% plus though. Yeah, you are right. We did mention that we exited June with 68% utilization.

Speaker #1: But it's just that the capacity is going to go up by another one.

Speaker #3: Okay . That is a perspective . Got it sir . And sir , when do we expect this additional line to come up here ?

Siddharth Mehrotra: Okay, that is the perspective. Got it, sir. Sir, when do we expect this additional line to come up here, this 2.5 MTP?

Speaker #3: This 2.5 Mtpa . .

Speaker #1: It should be there in FY28.

Narinder Singh Kahlon: It should be there in FY28.

Speaker #3: by end of FY28.

Siddharth Mehrotra: By end of FY28?

Speaker #1: Yes , yes .

Narinder Singh Kahlon: Yes.

Speaker #3: Okay , sir . Understood . Just for one last clarification , sir . In one of your notes to accounts , you've mentioned that the other income has a component of 55 crore due to some JV deconsolidation .

Siddharth Mehrotra: Okay, sir. Understood. Just, sir, one last clarification. Sir, in one of your notes to accounts, you have mentioned that the other income has a component of INR 55 crore due to some JV deconsolidation. Could you just elaborate a bit on that?

Speaker #3: Could you just elaborate a bit on that?

Speaker #1: No. So, we are in a JV. We are a JV partner in JSW One, and JSW One intends to list within this financial year.

Narinder Singh Kahlon: No. We are a JV partner in JSW One, and JSW One intends to list within this financial year. That is their plan. Now, they did do some fundraise very recently, and this INR 55 crore, earlier we had to because JSW One was incurring losses, we had to write down the entire investment over different quarters. But now their net worth is in positive zone, and this INR 55 crore is the share of that net worth as per accounting standards.

Speaker #1: That's their plan. Now, they did do some fundraising very recently. And so, this Rs. 55 crores, or earlier we had to, because JSW was incurring losses.

Speaker #1: We had to write down the entire investment over different quarters. But now, their net worth is in the positive zone. And this ₹55 crore is the share of that net worth as per accounting standards.

Speaker #3: Understood. So, just out of curiosity, what was the funding round at this most recent one?

Siddharth Mehrotra: Understood, sir. Just, sir, out of curiosity, what was the funding round at this most recent one?

Speaker #1: No, I think that that question should be asked to JSW when they list.

Narinder Singh Kahlon: No, I think that question should be asked to JSW One as and when they list.

Speaker #3: Okay, sir. That's all from my end. Thank you.

Siddharth Mehrotra: Okay, sir. That's all from my end. Thank you.

Speaker #1: Thank you

Narinder Singh Kahlon: Thank you.

Speaker #2: Thank you. This is a final reminder for questions. Please press star one to ask a question, and no further reminders will be given after this.

Operator 2: Thank you. This is the final reminder for question. Please press star 1 to ask a question, and no further reminders will be placed after this. Next question comes from the line of Kunal Shah with DAM Capital. Please go ahead.

Operator: Thank you. This is the final reminder for question. Please press star 1 to ask a question, and no further reminders will be placed after this. Next question comes from the line of Kunal Shah with DAM Capital. Please go ahead.

Speaker #2: Next question comes from the line of Kunal Shah with Tam Capital. Please go ahead.

Speaker #7: Yeah . Hi sir . So just one on the north operations now excluding the north sort of revenues . You know , how was the base cement realization moment during the quarter on a sequential basis

Kunal Shah: Yeah. Hi, sir. Just one on the north operations now, excluding the north revenues, how was the base cement realization moment during the quarter on a sequential basis?

Speaker #6: It was plus 5.5%, quarter-on-quarter.

Nilesh Narwekar: It was +5.5% QOQ.

Speaker #7: Understood. And so, obviously, we have not booked any incentives. But other than that, we were booking some, right? So, were there any other incentives that were booked during the quarter?

Kunal Shah: Understood. So obviously north, we have not booked any incentives, but other than that, we were booking some, right? So any other incentives that were booked during the quarter?

Speaker #1: Yes, it was about slightly less than six crores.

Narinder Singh Kahlon: Yes, it was about slightly less than INR 6 crores.

Speaker #7: Got it . Now , sir . On the Punjab expansion sort of . We have excluded it from our foreseeable CapEx plans . And now any issues we are seeing the structurally or just like timing problem there .

Kunal Shah: Got it. Now sir, on the Punjab expansion, so we have excluded it from our foreseeable CapEx plans. Are there any issues we are seeing there structurally or just like a timing problem there? What was the amount that has been invested for Punjab until now?

Speaker #7: And what was the amount that has been invested for Punjab until now?

Speaker #1: No . We have spent only on the land . That's about probably 50 , 60 crores . We have the entire land with us , very small parcel is required to be purchased which we would be doing it very soon , but most of the land is .

Narinder Singh Kahlon: No, we have spent only on the land. That's about probably INR 50, 60 crores. We have the entire land with us. A very small parcel is required to be purchased, which we would be doing it very soon. But most of the land is with us. I mean, I can say the whole of the land is with us. The plant land is with us. It's just the approach road, a little bit of it. Now, we are awaiting the EC. The EC can come any time. Couple of rounds of discussion hearings have happened in the PCB. So once we have that, probably then we will initiate the work at Punjab.

Speaker #1: I mean, I can say the whole of the land with all the plant land is with us. It's just the approach road.

Speaker #1: A little bit of it. Now we are awaiting the EC; the EC can come anytime. A couple of rounds of discussions and hearings have happened in the PCB.

Speaker #1: So, once we have that, probably then we will initiate the work at Punjab.

Speaker #7: Got it . But the CapEx that you mentioned about the absolute amount , this would be including Punjab , right ? I mean , you would have accounted for that as well , right ?

Kunal Shah: Got it. But sir, the CapEx that you mentioned about, the absolute amount, this would be including Punjab, right? I mean, you would have accounted for that as well, right?

Speaker #1: Yes, yes, yes. It includes the...

Narinder Singh Kahlon: Yes, it includes Punjab.

Speaker #7: Got it . Punjab .

Kunal Shah: Got it.

Narinder Singh Kahlon: Sir, Punjab is very integral to our entire north plans.

Speaker #1: Punjab is very, very integral to our entire north plans.

Speaker #7: Got it. And so, lastly, one on the green energy share. Now, the target laid out during the second quarter last year was to achieve 49% by Q4 FY26 and 63% by FY27.

Kunal Shah: Got it. Sir, just lastly, one on the green energy share. Now, the target laid out during the Q2 last year was to achieve 49% by Q4 FY26 and 63% by FY27. Can you just give, are we sort of behind schedule on this one, and what are the reasons for the same?

Speaker #7: Can you just give—are we sort of behind schedule on this one? And what are the reasons for the same?

Speaker #1: So slight delays . That was more related to land . But but that's all behind us now . As I mentioned earlier , within September , we'll have the entire whatever capacities we had informed earlier that would be available to us .

Narinder Singh Kahlon: So slight delays that was more related to land, but that is all behind us now. As I mentioned earlier, within September, we will have the entire whatever capacities we had informed earlier. That would be available to us now in September.

Speaker #1: Now in September .

Speaker #7: Got it. So, we can hit, like, 60% plus by the end of FY27.

Kunal Shah: Got it. So we can hit 60% plus by end of FY27?

Speaker #6: Implemented . Yes .

Nilesh Narwekar: Implemented, yes.

Speaker #1: Two , three .

Narinder Singh Kahlon: Q3 on the year.

Speaker #6: Yes . Yes .

Nilesh Narwekar: Yes.

Speaker #1: Okay .

Kunal Shah: Okay, got it. This is really helpful, sir. Thanks a lot.

Speaker #7: Got it . Okay . This is really helpful , sir . Thanks a lot .

Speaker #1: Thank you

Narinder Singh Kahlon: Thank you.

Speaker #2: Thank you. Next question comes from the line of Girija with Bank. Please go ahead.

Operator 2: Thank you. Next question comes from the line of Girija Ray with Nirmal Bang. Please go ahead.

Operator: Thank you. Next question comes from the line of Girija Ray with Nirmal Bang. Please go ahead.

Speaker #8: Hi, thanks for taking my questions. All of my questions have actually been answered. I just wanted to check, what is the region-wise capacity utilization, particularly for the cement business?

Girija Shankar Ray: Hi, thanks for taking my questions. All of my questions are actually answered. I just wanted to check, what is the regional-wise capacity utilization, particularly for the cement business?

Girija Ray: Hi, thanks for taking my questions. All of my questions are actually answered. I just wanted to check, what is the regional-wise capacity utilization, particularly for the cement business?

Speaker #5: We could hear you. Could you repeat your question, please?

Narinder Singh Kahlon: We couldn't hear you, Girija. Could you repeat your question, please?

Speaker #8: AM I audible ?

Girija Shankar Ray: Am I audible?

Girija Ray: Am I audible?

Speaker #6: Yes , you are .

Nilesh Narwekar: Yes, you are.

Speaker #8: Yeah . So most of my questions are answered , but I have one small question that is , what is the reason ? Why capacity utilization for the cement business

Girija Shankar Ray: Yeah. Most of my questions are answered, but I have one small question. That is, what is the reason why capacity utilization for the cement business?

Girija Ray: Yeah. Most of my questions are answered, but I have one small question. That is, what is the reason why capacity utilization for the cement business?

Speaker #6: So overall , for quarter one , we were at 61% for quarter one . And yeah , there's no split that we offer on this .

Nilesh Narwekar: Overall, for Q1, we were at 61%. There's no split that we offer on this.

Speaker #8: Okay, okay. Thank you, sir.

Girija Shankar Ray: Okay. Thank you, sir.

Girija Ray: Okay. Thank you, sir.

Speaker #6: Yes

Nilesh Narwekar: Yeah.

Speaker #2: Thank you. Next question comes from the line of Rajesh Ravi with SGFC Securities. Please go ahead.

Operator 2: Thank you. Next question comes from the line of Rajesh Ravi with HDFC Securities. Please go ahead.

Operator: Thank you. Next question comes from the line of Rajesh Ravi with HDFC Securities. Please go ahead.

Speaker #8: Hi .

Rajesh Ravi: Hi, sir. Good morning. Am I audible?

Speaker #6: Good morning . AM I audible ? Yes . Rajesh , please go ahead . Yeah . First question , just to clarification , the incentives when you start booking in for the cement north plant , go through revenue and EBITDA or directly to cash flows balance sheet .

Nilesh Narwekar: Yes, Rajesh, please go ahead.

Rajesh Ravi: Yeah. First question, just a clarification. The incentives when you start booking in for the cement north plant, go through revenue and EBITDA or directly to cash flows balance sheet?

Speaker #1: No, it will be routed through P&L.

Narinder Singh Kahlon: No, it will be routed through P&L.

Speaker #6: PML means through revenue, right? It's like GST accrual, because capital subsidy, we understand, initially doesn't flow through the revenue line item.

Rajesh Ravi: No, P&L means through revenue, right?

Narinder Singh Kahlon: Exactly.

Rajesh Ravi: It is like a GST accrual. Because capital subsidy, we understand, initially does not flow through a revenue line item.

Speaker #2: Ladies and .

Speaker #6: Gentlemen .

Speaker #2: We have .

Speaker #1: Lost you. We'll get back to you on this.

Narinder Singh Kahlon: We will get back to you on this.

Speaker #2: We have lost the line of Mr. Jariwala. Please be on hold while we quickly get him reconnected. Ladies and gentlemen, Mr. Jariwala is reconnected.

Operator 2: We have lost the line of Mr. Jariwala. Please be on hold. I will quickly get him reconnected. Ladies and gentlemen, Mr. Jariwala is reconnected. Please go ahead.

Operator: We have lost the line of Mr. Jariwala. Please be on hold. I will quickly get him reconnected. Ladies and gentlemen, Mr. Jariwala is reconnected. Please go ahead.

Speaker #2: Please, please go ahead.

Speaker #6: Yeah . So , talking about the incentive , how it will flow through PML or through revenue or through other line items .

Rajesh Ravi: Yeah. So you were talking about the incentive, how it will flow through P&L, or through revenue or through other line items.

Speaker #1: That's a bit complex, accounting treatment. I understand about the capital subsidy; I think this has to be recognized over the life of the asset.

Narinder Singh Kahlon: There is a bit complex accounting treatment, I understand, on the capital subsidy. I think this has to be recognized over the life of the asset. I think we will have a discussion with the auditors and then probably answer this rather than giving a misleading answer.

Speaker #1: I think we'll have a discussion with the auditors and then probably answer this, rather than giving a misleading answer.

Speaker #6: Yes , sir . Sir , on the marketing expense , I see for the last three four years , the hundred was around 80 to 85 crore and Q4 , we had a jump in FY 26 , Q4 and 526 number went up because you're feeding for the North operations and North .

Rajesh Ravi: Sure. Sir, on the marketing expense, I see for the last three, four years, the run rate was around INR 80 to 85 crore in Q4. We had a jump in FY26 Q4, and FY26 number went up because seeding for the north operations. In north, we have done around INR 30, 33 crore in Q1. From an annual basis, what would be the incremental marketing expenditure you are looking at INR 80, 85 crore run rate? Second, when you said the north operations will break even and will turn positive. Break even at EBITDA level or at PAT level?

Speaker #6: We have done around 30 , 33 crore in Q1 . So from an annual basis , what would be the incremental marketing expenditure you are looking at at 80 , 85 crore run rate ?

Speaker #6: And second, when you said the North operations will break even and will turn positive, is that break even at the EBITDA level or at the profit, PAT level?

Speaker #1: So break even at a level about the first part of your question . See , today we have done about 33 crores in North , but overall at company level , we will be doing about 130 crores .

Narinder Singh Kahlon: Break even at EBITDA level. About the first part of your question, today we have done about INR 33 crore in north. But overall at company level, we will be doing about INR 130 crore for the year.

Speaker #6: Okay .

Speaker #1: For the okay .

Speaker #6: And this trend would continue for the next few years, is what we can assume.

Rajesh Ravi: Okay. This run rate would continue for next few years, is what we can assume?

Speaker #1: Yes , because we will be going into newer territories very soon . We should be there in Punjab . We'll be there in Western U.P , central U.P , etc.

Narinder Singh Kahlon: Yes, because we will be going into newer territory. Very soon we should be there in Punjab, we will be there in Western UP, Central UP, et cetera. So this number has the potential to go up.

Speaker #1: so this number has definitely to go up correct . Keep in mind this one , what I mentioned includes technical spends . Also .

Rajesh Ravi: Understood. Correct.

Narinder Singh Kahlon: Keep in mind, this INR 130 crore what I mentioned includes technical spends also.

Speaker #6: Okay . And break EBITDA breakeven . When you are what is the target you're looking at , sir

Rajesh Ravi: Okay. EBITDA break even, what is the target you are looking at, sir?

Speaker #1: No . In in , in the month of in the second quarter , we should be a bit break even .

Narinder Singh Kahlon: No, in the second quarter, we should be EBITDA break even.

Speaker #6: Okay . So fair to assume at 55 , 50 , 60% utilization , you have turned or you will be turning EBITDA breakeven and thereafter profitability will further kick in with the commissioning of the w h , B , C , and more of low cost fuel purchase , lignite and all .

Rajesh Ravi: Okay, so fair to assume at 55% to 60% utilization, you have turned or you will be turning EBITDA break even, and thereafter profitability will further kick in with the commissioning of the WHR, OLBC, and more of low-cost fuel purchase, lignite and all.

Speaker #6: .

Speaker #1: Today we have to transport limestone by road . And we don't have a , etc. so that explains why our breakeven is at a higher number at 5,560% utilization .

Narinder Singh Kahlon: Today we have to transport limestone by road, and we don't have waste heat, et cetera.

Narinder Singh Kahlon: So that explains why our break even is at a higher number, at 55% to 60% utilization. Had these all been in operation.

Speaker #1: Had these all been in operation, the breakeven number would have been at much lower levels, correct?

Narinder Singh Kahlon: break even would have been at much lower levels.

Rajesh Ravi: Correct. I agree. Sir, two small questions, follow-up. First, on the RMC, what is the full year number you are looking at? Is there any EBITDA number, EBITDA margin number for FY26 and FY27 in this RMC segment?

Speaker #6: Correct . I agree . And so two small questions . Follow up . First on the MCC . What is the full year number you're looking at ?

Speaker #6: Is there any EBITDA number or EBITDA margin figure available for FY26 and FY27 in this segment?

Speaker #1: Revenue . We are targeting north of 1000 crores , including this year , including the captive . That's what I explained earlier . Wherever the group projects are coming up now , today , it's very difficult to speak on the margins because captive always has a different number than a commercial or a dedicated .

Narinder Singh Kahlon: The revenue we are targeting north of INR 1,000 crores. Including-

Rajesh Ravi: Which year?

Narinder Singh Kahlon: This year.

Rajesh Ravi: This year.

Narinder Singh Kahlon: Including the captive, that is what Nilesh explained earlier, wherever the group projects are coming up. Today, it is very difficult to speak on the margins because captive always has a different number than a commercial or a dedicated. It all depends how we grow. Initially, when we put up and our plans are to move from 15 to 35. So in the first year, in first 12 months, hardly makes any money. RMCs do not make money.

Speaker #1: It all depends on how we grow. Initially, when we put up, our plans are to move from 15 to 35.

Speaker #1: So in the first year, in the first 12 months, it hardly makes any money. RNC doesn't make money.

Speaker #6: Right, right, right.

Rajesh Ravi: Right.

Speaker #1: Yeah. So big, it's difficult to spell out the margins right now.

Narinder Singh Kahlon: Yeah. So bit difficult to spell out the margins right now.

Speaker #6: Understood . And so when you say captive , you're not talking within the JSW Cement within the group , right ?

Rajesh Ravi: Understood. When you say captive, we are not talking within JSW Cement, within the group, right?

Speaker #1: Within the group .

Narinder Singh Kahlon: Within the group.

Speaker #6: Within the group. Okay. And lastly, on the CapEx number for Q1, you have done ₹337 crore, and for the full year you are guiding ₹2,300 crore.

Rajesh Ravi: Within the group. Okay. Lastly, on the CapEx number, Q1 you have done INR 337 crore and for full year you are guiding INR 2,300 crore.

Speaker #6: So is it like chances of a miss because the run rate is slower, and I assume Q2 would be not very strong given it's a monsoon quarter?

Narinder Singh Kahlon: Yeah.

Rajesh Ravi: Is it like chances of a miss because the run rate is slower, and I assume Q2 would be not very strong given a monsoon quarter. So H2, the expectation from the CapEx could be much higher?

Speaker #6: So, H2—the expectation from CapEx could be much higher.

Speaker #1: No , no , no . The number would be close to 2300 . So there isn't going to be any miss .

Narinder Singh Kahlon: No. The number would be close to 2,300. So there isn't going to be any miss.

Speaker #6: Understood? Understood. So, this is your plan.

Rajesh Ravi: Understood. So this is as per your plans.

Speaker #1: Yeah .

Narinder Singh Kahlon: Yeah.

Speaker #6: Okay. Great, sir. That's all from my end. We'll come back in the Q&A. Thank you.

Rajesh Ravi: Okay. Great, sir. That's all from my end. Will come back in queue. Thank you.

Speaker #1: Thank you

Narinder Singh Kahlon: Thank you.

Speaker #2: Thank you. Due to time constraints, the last question comes from Rashi with Citi. Please go ahead.

Operator 2: Thank you. Due to time constraints, the last question comes from Rashi with Citi. Please go ahead now.

Operator: Thank you. Due to time constraints, the last question comes from Rashi with Citi. Please go ahead now.

Speaker #4: Thank you . Bookkeeping questions . So you've delayed the Vijay phase one beyond 328 , right . I was supposed to come earlier .

Rashi Biyani: Thank you, sir. Some bookkeeping questions. So you've delayed the Vijayanagar phase 1 beyond CY28, right? That was supposed to come earlier.

[Analyst] (Citi): Thank you, sir. Some bookkeeping questions. So you've delayed the Vijayanagar phase 1 beyond CY28, right? That was supposed to come earlier.

Speaker #6: Sorry, Rashi. Could you please repeat your question? You weren't clear.

Hitendra Jariwala: Sorry, Rashi, just repeat your question. You're not clear. Not audible.

Speaker #4: No audible . The Vijayanagar phase one , I think earlier the plan was to have it before C by 20 . That's now been pushed out right ?

Rashi Biyani: The Vijayanagar phase 1, I think earlier the plan was to have it before CY28. That's now been pushed out, right?

[Analyst] (Citi): The Vijayanagar phase 1, I think earlier the plan was to have it before CY28. That's now been pushed out, right?

Speaker #6: Yes, that's right. That's right.

Hitendra Jariwala: Yes, that is right.

Speaker #4: And yeah, sorry. Utilization.

Rashi Biyani: Okay. And what are the-

[Analyst] (Citi): Okay. And what are the-

Hitendra Jariwala: It is basically utilization. Yeah.

Rashi Biyani: Sorry, utilization?

[Analyst] (Citi): Sorry, utilization?

Speaker #6: Basically, to keep in mind the utilization, be prudent about how we can show the capacity utilization for the overall company is maintained. With that in mind, that was the— I...

Hitendra Jariwala: No. Basically, just keep in mind the utilization and be prudent about how we can show the capacity utilization for the overall company is maintained. That was the intent behind it.

Speaker #4: Understood. Are the timelines for Fujairah and the expansion?

Rashi Biyani: Understood. What are the timelines for the Fujairah and the Dolvi expansion?

[Analyst] (Citi): Understood. What are the timelines for the Fujairah and the Dolvi expansion?

Hitendra Jariwala: Fujairah and the?

Speaker #6: And the

Rashi Biyani: The Dolvi, the 4 million ton. The ones which are coming before CY28.

[Analyst] (Citi): The Dolvi, the 4 million ton. The ones which are coming before CY28.

Speaker #4: The 4 million tons are coming before '28.

Speaker #1: So Fujairah , we have done the groundbreaking last . So that should be up and running within 12 months , don't we ? We are planning to start the work very soon .

Narinder Singh Kahlon: Fujairah, we have done the groundbreaking last year. That should be up and running within 12 months. Dolvi, we are planning to start the work very soon. That is 15 months from whenever we-

Speaker #1: So that's 15 months from whenever.

Speaker #4: 1512 okay . And for the Nagpur project , the . The total CapEx for the . 3.5 is 3500 crores . Right ?

Rashi Biyani: 15 months. Okay. For the Nagaur project, the total CapEx for the 3.5 is INR 3,500 crores, right?

[Analyst] (Citi): 15 months. Okay. For the Nagaur project, the total CapEx for the 3.5 is INR 3,500 crores, right?

Speaker #1: Yeah .

Narinder Singh Kahlon: Yeah.

Speaker #4: And how much has been spent so far?

Rashi Biyani: How much has been spent so far?

[Analyst] (Citi): How much has been spent so far?

Speaker #1: We have spent close to 24,2500.

Narinder Singh Kahlon: We have spent close to INR 2,400, INR 2,500.

Speaker #4: Okay. And the next 2.5 is poor, 30 crores. That's correct.

Rashi Biyani: Okay. The next 2.5 is INR 430 crore. That is correct?

[Analyst] (Citi): Okay. The next 2.5 is INR 430 crore. That is correct?

Speaker #1: Yes. Net of GST. Yes.

Narinder Singh Kahlon: Yes. Net of GST. Yes.

Speaker #4: Okay. And just last, what is the clinical utilization in the quarter?

Rashi Biyani: Okay. Just last, what was the clinker utilization in the quarter?

[Analyst] (Citi): Okay. Just last, what was the clinker utilization in the quarter?

Speaker #1: Come again .

Narinder Singh Kahlon: Come again.

Speaker #4: Clinical utilization .

Rashi Biyani: Clinker utilization in the quarter.

[Analyst] (Citi): Clinker utilization in the quarter.

Speaker #6: It's at 61%, including Nagar. In India, I'm saying, okay, this is between Nandyal and Shiva Nagar—it's at 61%. I mean, if you want to knock off Nagar, then the number goes up to 87%.

Hitendra Jariwala: It is at 61% including Nagod. In India, I am saying. This is between Nandyal, Shiva and Nagod. It is at 61%. If you want to knock off Nagod, then the number goes up to 87%.

Speaker #4: Okay , so that's clinical . All right . Okay . Got it . Thank you .

Rashi Biyani: Okay. So that is clinker all. All right. Okay. Got it. Thank you.

[Analyst] (Citi): Okay. So that is clinker all. All right. Okay. Got it. Thank you.

Speaker #6: Yeah .

Speaker #2: Thank you, ladies and gentlemen. I have no further questions. We have reached the end of the question and answer session.

Hitendra Jariwala: Yeah.

Hitendra Jariwala: Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to Mr. Vaibhav Agarwal for closing comments.

Operator: Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to Mr. Vaibhav Agarwal for closing comments.

Speaker #2: I now hand the conference over to Mr. Weber Agarwal for closing comments.

Speaker #9: Yeah . Thank you . On behalf of Philip Capital India Private Limited , we would like to thank the management JSW Cement for the call and also many thanks to the person joining the call .

Vaibhav Agarwal: Yeah. Thank you. On behalf of PhillipCapital (India) Private Limited, we would like to thank the management of JSW Cement for the call, and also many thanks to the participants joining the call. Thank you very much, sir. I think we may now conclude the call. Thank you.

Speaker #9: Thank you very much, sir. You may now conclude the call. Thank you.

Speaker #6: Okay. Thank you. Thank you so much. Thank you very much.

Hitendra Jariwala: Okay. Thank you.

Hitendra Jariwala: Thank you.

Narinder Singh Kahlon: Thank you.

Hitendra Jariwala: Thank you so much. Thank you very much.

Speaker #2: Thank you . On behalf of Philip . Thank you on behalf of Philip Capital . That concludes this conference . Thank you for joining us .

Operator 2: Thank you. On behalf of PhillipCapital, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Operator: Thank you. On behalf of PhillipCapital, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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Q1 2027 JSW Cement Ltd Earnings Call

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