Ladies and gentlemen, good day and welcome to JK Cement's earnings call for quarter and year-end date 31st March 2025, hosted by PhillipCapital (India) Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 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.
Yeah, thank you, Michelle. Good morning, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q4 and FY 2025 call of JK Cement Limited. On the call, we have with us Mr. Ajay Kumar Saraogi, Deputy Managing Director and CFO, and Mr. Prashant Seth, President of Business Information and Investor Relations. I would like to mention, on behalf of JK Cement Limited and its management, that certain statements that may be made or discussed on today's conference call may be forward-looking statements related to future developments and statements which are based on current management expectations. These statements are subject to a number of risks, uncertainties, and other important factors which may cause actual developments and results to differ materially from the statements made.
JK Cement Limited and the management of the company assumes no obligation to publicly alter or update these forward-looking statements, whether as a result of new information or future events or otherwise. I will now hand over the floor to the manager of JK Cement for the opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, Saraogi, sir.
Yeah, thank you, Vaibhav. Good morning, everyone, and welcome to this Q4 call. The Board of Directors met on the 24th of May to review the working of the company for the quarter-end date 31st March 2025, as well as for the whole year. I will be presenting to you a brief synopsis, and then we'll take up the questions. So for the quarter, the net sales was INR 3,225 crores, as against INR 2,606 in the previous quarter, an increase of 24%, and a 13% increase year-on-year, which was INR 2,856 crores. The EBITDA for this quarter was INR 736 crores, as against INR 490 crores in the previous quarter, an increase of 50%, and INR 548 the previous year, an increase of 34%. EBITDA margins comparative was 22.8% in this quarter, 18.7% in the previous quarter, and year-on-year 19.2%.
If you look at the profit before tax, it was INR 593 crores, as against INR 295 in the previous quarter and INR 358 previous year. The per-ton EBITDA was INR 1,265 a ton, as compared to INR 1,040 in the previous quarter and INR 1,078 previous year. These are the standalone results, and for the year, the net sales have increased only marginally by 1%, at INR 10,708 crores, as against INR 10,563 crores. The EBITDA was down by 1%, at INR 1,978 crores, as against INR 2,005 crores. EBITDA margins for the year were 18.5%, as against 18.9%. Profit before tax was higher at INR 1,243 crores, as against INR 1,212 crores, an increase of 3%, and the profit after tax was higher at INR 870 crores, as compared to INR 831 crores year-on-year. The EPS was INR 112.59, as compared to INR 107.5, an increase of 5%.
For the year, the EBITDA per ton was 1,017, as compared to 1,087 in the previous year. As far as the consolidated position, the net sales were again consolidated for the company was higher by 23% at INR 3,466 crores, as against INR 2,119 crores in the previous quarter, and 15% up year-on-year at 3,000, which was INR 3,016 crores. The EBITDA for the quarter consolidated was INR 765 crores, as against INR 492 crores, and INR 560 crores in the previous quarter.
EBITDA margins comparative was 22.1%, 17.4%, and 18.5%. The earnings per share consolidated was INR 46 should be 60%, as compared to INR 24 that is 50% and INR 28 is 30%. Consolidated position for the year, as compared to previous year, the net sales were higher by 3% at INR 11,493 crores, as compared to INR 11,203 crores. The EBITDA was marginally lower at INR 2,027 crores, as compared to INR 2,060 crores.
The profit before tax was higher by 6% at INR 1,242 crores, as compared to INR 1,174 crores. Profit after tax was higher by 10% at INR 872 crores, as compared to INR 790 crores. The earnings per share was INR 111, as compared to INR 102. These are the major highlights on the performance of the company. After reviewing the performance, the board also declared a dividend to the shareholders. They proposed a dividend for consideration of the shareholders at INR 15 per share.
I would also like to inform you about the debt profile of the company. The gross debt as of 31st March stood at, for the stand-alone position, at INR 5,101 crores, as compared to INR 4,593 crores. The cash balance was higher at INR 2,536 crores, as compared to INR 2,006. The net debt as of 31st March was INR 2,565 crores, as compared to INR 2,587 crores.
The net debt to EBITDA for the year was 1.3, as compared to 1.29. The net debt to equity was 0.42, as compared to 0.48. The expansion project, we are doing an expansion, a brownfield expansion at Panna, along with a greenfield split-grinding location at Bihar of 6 million tons. The work is in progress and as per schedule. We will definitely complete within this fiscal, though our target is that maybe by December or January, the entire thing is on stream. These are the major highlights. If you have any questions, we'll be happy to address the same. Thank you.
Thank you very much, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask questions may press star and one on the touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Murarka from Axis Capital. Please go ahead.
Yeah, hi. Good morning, and thanks for the opportunity. So first of all, congratulations on a great, great result, actually. So my question was, in FY, I see that in Q4 you were at 94% clinker utilization. Could you also provide the clinker produced in FY 2025?
Yeah, Prashant, share the numbers.
Yeah, yeah. Yeah, clinker production for the year as a whole is 1.2 million tons.
Huh?
11 point, sorry, 12 million tons.
Could you provide the decimal as well?
It's 11.92 million tons.
Okay, great. So with this Panna 2 expansion coming through in December, I believe it will have good leeway for growth even beyond the 2026 then. I also wanted to understand what would be the expansion plans beyond 2026 now that Panna is now nearing completion. I'm sure you would want to plan ahead as well.
Yeah, definitely. See, we are working out on the various options, as we have already told on our journey beyond for 2030 to become a 50 million producer. So we have options for Jaisalmer, and we have options in Karnataka as well as Odisha and another line at Panna. But mostly, we are just working out the possibility could be many other things, but we are working out on the nitty-gritties. And I think mostly in the next three to four months' time, maybe by closer to commissioning of this plant, we should be in a position to know our next plans of expansion, and we will let you know.
So is there any priority that you think should be there, like Panna line 3 will come?
No, I think it should be mostly we are working to, it could be not, but again, we are evaluating everything. We are looking at all the approval status, so.
Sure. And lastly, CapEx plan for FY 20 26 ?
CapEx will be again in the range of INR 1,800-2,000 crores in this year.
Sure. Thank you. I'll come back in a few.
Thank you. The next question is from the line of Harsh Mittal from Emkay Global . Please go ahead.
Thank you for taking my question. Congratulations to management for a great set of numbers. Sir, my first question is that has there been any update on the Odisha limestone mining lease agreement with the state government? That is my first question, sir.
So not yet. I mean, an update is that we are still pursuing, and that is, I mean, unless we get either the mining lease or a long-term arrangement which could support a project, we are still pursuing with the government. It has not concluded yet. The grant has not been done. So I think maybe it looks challenging, but I think we should have an answer sometime in the next three to four months' time.
Sure, sir. So my second question is, sir, what has been the incentive booked this quarter and the guidance for FY 2026?
Prashantt, you can give the numbers, the incentive for the quarter.
Actually, incentive, we are booking on the actual basis. So there's not much of a difference on the quarter-on-quarter basis. It is like normally in the range of INR 75 crores-INR 80 crores every quarter. And that is likely to continue in this year also.
Except in this quarter, we have incentive which we got for Prayagraj. So that is the incremental incentive of INR 12 crores which has come in this quarter.
Okay. And then lastly, what is the consolidated gross debt and net debt? Sorry if I'm missing the opening remarks, but if you can share. Consolidated gross debt and net debt?
There's no difference on the consolidated because there's borrowing of cash on the consolidated debt.
There's no borrowing in any of the subsidiaries.
Okay. Okay. Thank you, sir. These were my questions. Thank you.
Thank you. You may press star and one to ask questions. The next question is from the line of Vikram Suryavanshi from Phillip Capital (India). Please go ahead.
Good morning, sir. Sir, there was a news regarding Container Corporation working with you on tank containers for bulk cement movement as well as LNG vehicles for end-to-end logistics. Can you highlight the scope of work and how it will benefit the company?
No, so see, there was an on-the-tanker movement. This is another line which some companies are doing. So we are in discussion with them. And we will work out, but everything is for freight optimization, and we are able to resell containers because, again, even there, there is a lot of competition. And we had a meeting with the chairman of Container Corporation, and then he suggested that on the container rate too. So we will need to work out because there is an increased demand for bulk cement going on. So how that would benefit on movement of bulk cement.
Okay. Got it. And tank containers are purchased by CONCOR for some on behalf of some of the customers, or we'll buy our own containers and use CONCOR networks. How that will be planned?
We have discussed. They will give a proposal. We will review the proposal and then take a final call.
Understood, sir. Okay. Thank you.
Thank you. We'll take the next question. I reminded all the participants that you may please press star and one to ask questions. The next question is from the line of Navin Sahadeo from ICICI Securities. Please go ahead.
Good morning, sir, and congratulations on great success. Yeah. I am saying congratulations on great set of numbers. I think everything has fallen in place, the volumes, realization, and the cost as well. My question was, are there any one-offs in the quarter, like lower on the cost front or, let's say, the realization front, which are unlikely to continue in the next quarter?
No, there are no one-offs, but we have got good volume numbers, mainly driven by Central India. There, we have more or less been able to ramp up the entire capacity now. So in fact, we are ready for the expansion. If we had more clinker, we could have done extra volume. But that is there.
Maybe if you see in terms of year-on-years, there will certainly be numbers where some of the numbers, we have changed the method for it. More material was in transit. So that's why the sale was less. And this year, it has been the transit quantity has been lower. So that could be the only reason. Otherwise, we don't see there are no one-offs in terms of any realization or on the cost.
And there would also be some impact because of the Mahakumbh in the previous quarter. So that.
No, no. Actually, see, that is one of the reasons why we have good growth, that somehow our logistics team has done a very fantastic job in ensuring there has been actually a minimal loss to us.
We could just plan it in a way that during the Kumbh itself, the dispatches, the material needs, whatever it was required. year-on-years, if you see the growth in the eastern region is there, it's reflected. That one-off is going to continue now going forward.
Right. Right. My second question then was about the difference in the EBITDA of Consolidated and Standalone. What I observed is that this quarter, the difference between the same is almost INR 28 crores, which is, I think, the highest the company has ever seen. Is it the UAE subsidiary only which is doing well? Is it Toshali which has done exceptionally well? I mean, I'm just trying to understand the sustainability of this number.
No, no. See, it is the UAE. See, as we said, the UAE plant has turned around, and the UAE profitability is better.
Toshali is, again, for the quarter, if you look at, yes, the loss has reduced in Toshali during the quarter as compared to we are ramping up the things, the loss has definitely reduced for Toshali. year-on-years, definitely, there is a loss of about INR 8 crores-INR 9 crores in Toshali. But otherwise, the UAE numbers will definitely, when we are getting in, if you look at it on a quarterly basis, it could be around anything between INR 15 crores-INR 20 crores quarterly.
Mr. Sahadeo, does that answer your question, sir?
Yeah. Sorry, I was on mute. Just one follow-up here is that in the past, whenever we have seen this improvement in the UAE facility, it was said as one-off or in the sense for some special exports to Australia or something like that. Can we now say that UAE as an entity can generate about INR 1,800 crore of EBITDA on a sustainability basis? Is that the confidence, or we still need to be ready?
Yeah, yeah. I said between INR 15 crores-INR 20 crores on a quarterly basis.
Helpful.
Because, again, there is a seasonality effect because if you see in the heat or sometimes festivals for them, there's a ease or something, so it gets affected. Otherwise, if you look at, I think, between INR 15 crores-INR 20 crores quarterly, they should be sustainable.
Right. Just one more question, if I may slip in, is about our preparedness for the Jaisalmer project. Now, I understand we were awaiting some incentives or some package from the state government. But from our channel checks, I also understand competition, some of the regional players there are moving a little ahead of us in terms of equipment ordering or inquiring. So is it fair to assume that the state has already clarified the incentives and package, and hence that could be the next project for us and for the players in general that cluster is ready to get developed, or there needs more clarity? Thanks.
So I think the cluster is ready for development. That, I would say, whatever things are, that is an activity by us. There is some activity by the competition. I'm not aware of whether competition has finalized orders. That, I'm not aware, because none of the equipment suppliers also have informed that because we do check up. I'm not aware of that. We are working out on all the details. We'll work out. It will be a greenfield site with railway siding and go ahead and anything. So we are in the process of working out the details. And then, looking to when the project gets completed, looking to the balance sheet, we'll definitely put up. We'll see what the management or the board decides.
So I think clear picture, as I said earlier, should be there between the next four to six months' time.
Thank you. You may press star and one to ask questions. The next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.
Hello. My audience here?
Yeah.
Yeah. So Company has done a very good set of numbers. I just have a few questions. So we were indicating about the cost reduction journey. So could you tell us about where we are in that?
So on the cost reduction journey, as we said, we have a scope for INR 152 crores-INR 200 crores. So we have already achieved in case of the exit. The average will be less, but the exit and the logistics cost is close to INR 35-INR 40 in the exit and the logistics cost. On the green power also, there's an exit, so I would say that around INR 75 a ton is the exit which we have already achieved. And we feel that during this year also, the exit, so we will get the INR 75 a ton benefit now going forward during the full year. The incremental benefit, which this year we could get, is maybe another 25, though the exit would be higher.
Okay. Sir, but just to follow up on what you're saying, if you look at it on a per ton basis, I think our freight costs have gone up on a full year basis. So as our lead distance, so when you say that it has reduced on a year-on-year basis, how to understand it better?
See, lead distance is a consequence of where we are meeting our customer. We are working on the cost reduction. It's not related to lead distance. It is negotiating a better rate. You are going through a bidding process. You are dispatching at the L1 basis. You are reducing the detention at the location, which is, again, helping you in the freight. These lead distances are a result of where the customer like we have opened up Bihar. And so it's a new market, and so the lead distance has increased because of that. But that is not a freight reduction. That would have been there. If these steps would not have been taken, the cost would have been still higher.
Okay. Sure, sir. I get it. Basically, you are saying that you are entering new geographies, so there's some bit of cost involved towards that. Sure. Sir, I have just one more question. With respect to some regional dynamics, you're saying that Central, the ramp-up was good in this quarter, and you did volumes better than the previous quarters. So can you tell us directly which sectors are doing better within Central? Is it the individual housing, or is it government infra projects? Any guidance there? Is it there?
So as you would have seen, that's for the sector. See, again, why Central? Because we had made investment in Central, and that was the biggest area we are now catering the entire state of MP and UP, and gradually ramping up the volumes. And when the expansion comes up, going forward, the increase in volumes will be from Central. In the north and south, we will be at par with the market. So this is what so that we do not lose our market share in these regions. As regards the demand, I think as we see, presently, post you see the next year, the first year after elections is normally lower, which was there. But now, the demand was good in the month of March, but again, which is quite normal. But this year, it was a bit more exceptional.
But in this month, it is driven by housing and infra. It's a combination of all. We have not seen any. I can't say that in this particular sector is resulting in increase in demand. But rural demand is definitely good.
So is trade growing faster or is non-trade growing faster, sir, in Central?
No, sir. See, for us, we concentrate more on the trade volumes. And we are working because when we made in we have to get a market share, and our main emphasis is to increase the trade share.
Sure. Sure.
Because non-trade is more on a price-driven also.
Yeah. Yeah. Sure. So just one last question of mine, Mr. Saraogi. Are other costs on a per ton basis have gone up? Is there anything that has changed, sir, in terms of our cost structure, or is there any element to this?
So the other cost which has gone up.
It is basically.
Yeah, Prashantt.
Yeah. It is, sir, mainly of the advertisement and the marketing expense which we have done extraordinarily in this quarter. And then the other cost also includes some of the costs which are variable in the nature and which goes up along with the volumes.
Okay. No, sir, I'm talking not about the quarter. I'm talking on a year-on-year basis. So it's gone up from 980 per ton to 1,035. So I just wanted to understand the jump is pretty sizable, almost 200 crores increase on a year-on-year basis. So I just wanted to understand any specific thing that we are doing extra which is resulting in this cost to go up.
No, no. See, again, the cost going up is one.
Okay.
Yeah, Prashantt, carry on.
No, basically, it is on account of the extension, yeah? Hello? Yeah, can you hear me?
Yes, sir. Now it's audible.
Hello?
Please continue.
Hello?
Yeah, Prashantt, we can hear you.
So I was telling that basically in account yeah, it is on account of the network creation and the advertisement spent for the new markets. So we are doing the extraordinary cost on that account. And that is why we are seeing the volume hike, which is higher than the industry. So that is something which is extraordinary cost.
Yeah, sir. So this may not be recurring entirely. Would that be a correct way to understand?
No, no. I would say that marketing investment would continue to be there as we are growing, and you have to maintain the trade share, so the marketing spend will. It's an investment. See, again, accounting entry says that, okay, it is part of revenue, but as we are expanding and you are entering new markets, you are trying to maintain so this spend will continue to be there. This year, there was a lot of demand to have a brand ambassador for the grey cement, so we introduced a new logo, and we changed the design of our bag. We had a brand ambassador. Again, all this is a positive, and this is why in the new region, we have been able to grow substantially during the quarter as well as during the year.
So this branding expense, or we call, and I would treat it as an investment for some time as we have growth plans, is going to continue. Yes, the per ton impact would have been lower, but it is more reflective because overall, the volumes have not grown this year. It is only in the quarter that it is higher, but if you look at the year, because of subdued demand, the per ton cost seems to be higher.
Sure, sir. Just one last question, sir. What are guidance for volumes for 2026?
2026 volume guidance is close to about 20 million.
Sorry? 20 million?
20 million for the grey. And if you look at 22 million, it should be combined volume.
Sure, sir. Thank you so much.
Thank you. The next question is from the line of Prateek Kumar from Jefferies. Please go ahead.
Hello. Yeah, good afternoon, sir. And comrades. So great to be here. So my first question is on your clinker utilization on annual basis in North, Central, and South operations. If you can look at number.
So, annual basis, the clinker utilization is 82%. Hello?
Yeah, 82%. And.
Hello. Yeah, can you hear me?
Yeah, 82%. Yes.
How is it in North and Central plants for your clinker utilization?
We're not giving numbers for each region as per.
Sorry. It's more or less same. I mean, ranging in the range of, say, 85. Yeah.
Okay. And what was the paint segment added loss for the quarter and for the full year?
INR 45 crores is the loss for the paint for the full year.
Okay. And can you highlight on competitive intensity and white segment? Because there's some improvement in realization which you have seen in this quarter. Is there a specific one-off or that competitive intensity has softened a bit this quarter?
No, the competitive intensity has not softened. This is a mixed number. I mean, the putty continues to be I mean, the competition, especially on the putty, is continuing to be very competitive. As a result, it's a declining realization per ton quarter on quarter. We every time feel that it has bottomed out, but we are yet to see even beginning of the year, there are some though not that big, but still it is on a sliding trend. There is no particular one-offs in the quarter. I mean, what I would say, it is an annual certain things, maybe some it's a sort of a mixed difference.
Okay. Last question on cement pricing on post-March. How has been the cement pricing trend in the markets since March?
So post-March, if you see that North and Central, there could be about a 1% increase in the pricing, at least from the exit, what we see. And in case of South, yes, definitely about a 5 %- 7% increase is there in the pricing in the South region.
Sure. Thank you, sir. That is my question.
Thank you. The next question is from the line of Pushkar Jain from Mili Capital . Please go ahead.
Hi, sir. My question is also regarding pricing. Can I confirm post-March, it is 1% in North and Central, and 5%-7% in South?
Yeah. 5%-7%.
Okay. Thank you so much.
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon, thank you for taking my question, and congrats for the Q4 set of numbers. So the first question is with regards to the grey business now with increasing competitive intensity in that business, and how do we see the outlook for that business, let's say in FY 2026? And secondly, a bookkeeping question on the rail-road mix. Thank you.
So, on the paint, despite the competition as we had planned, and we have been able to close the year with a top line of INR 275 crores. And again, we feel that in next fiscal, again, we should have a top line, anything between minimum INR 400 crores -INR 450 crores. And we are working on as we are doing, we should be able to improve upon our margins as we have during this year. We have done all the there was some moderation activity done at the paint plant, which is resulting in cost savings. And we are working out on the discount structure. Since we were a new entrant, our discount structures were marginally higher as compared to competition. So we are correcting on that. The competition continues. We are not competing with the top guys.
Still, wherever we are, our prime reason to enter the paint business was we were already there with putty. And we are using those counters, and we are successful. And we hope that we should be able to maintain this trajectory of growth.
Sure. Thank you.
Prashantt, you can form the railroad mix.
Our rail movement is 12%. Yeah, 12% in this quarter rail movement.
Sure. Thanks and all the best.
Thank you.
Hello?
Yes, sir. You're audible. We could hear you. Participants, please press star and one to ask questions. The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead.
Yes, sir. Thanks for the opportunity and very good afternoon. And congratulations on a very good set of numbers. Sir, my question pertains to premium cement. We have already reached 15% in this quarter. So how do you see premium cement reaching in FY 2026 as a percentage of trade share?
So, for the quarter, we have achieved 15%, but we hope that we are working towards increase in premium. Maybe another 2% increase overall. I mean, for the year, the overall was about 14%. So we should do about anything between 15%-17% in this year.
Okay, and sir, what was our fuel mix this quarter?
Prashant?
Yeah. Yeah, our fuel mix was around 70% of the petcoke and balanced the alternate fuel and the imported fuel. Indian and the imported fuel.
Okay. Okay, sir. That's all from my side and thank you all the best.
Thank you. The next question is from the line of Jaspreet Singh Arora from Equen tis. Please go ahead.
Yeah. Hi. Good afternoon, Mr. Saraogi and Mr. Prashantt. And congratulations. My first question, sir, was on the thanks for sharing that paints trajectory. What's the EBITDA break-even for us? At what level do we do that?
I think in FY 2027, we should be able to achieve that, which was maybe it's one-year extension because we brought it down to about FY 2027, we should have a breakeven.
Okay. Got it. And the volume growth that you highlighted, so you said about 20 million. I think we did, so did you mean at a consolidated level? So from 18, we move to 20 if we achieve that?
Yeah, yeah, yeah. From 18, we move to 20.
So that's about 10% growth. And in terms of white, I didn't understand. So white, we did total put together, including subsidiary, 2.2. So now you're saying 2 million tons?
No, I said it's a broad number. I mean.
Okay, but we should maintain.
But in case of white, there'll be the growth trajectory will not be much.
Understood.
So I mean, it is very nominal, 1 lakh tons here and there difference. It doesn't make on a broad number.
Fair point. Got it. And on the EBITDA per ton, sir, we've closed the year on a multi-quarter high, 1265. But the year as a whole was about 1,020, as you've highlighted. So what aspiration or what would be that broader range that will give you satisfaction for the current financial year, FY 2026, on a full-year basis, EBITDA per ton?
Satisfaction is definitely much higher, that we should be able to maintain what we have achieved in the last quarter. That is a satisfaction level. But actually, it will not be so, as I mean, yes, quarterly, on a year-on-year basis, we would definitely be happy if we achieve a number which is at more than FY 2024, the EBITDA per ton.
1,090. Yeah.
Was 1,087. So we'll be happy if we are able to achieve more than FY 2024 because FY 2025, it was lower. So our.
100 plus or minus, I think, would if we.
That's not in our hands, so yes.
I know.
Yeah.
Fair. Fair. And both the upcoming expansions, the grinding here at Bihar and Panna, you mentioned December for commissioning. So do we get one quarter of benefit, the March quarter, or we can?
No, no. What I said that our target was within FY 2026.
Right.
But we are working maybe by December, January, the grinding unit is out. Seeing the clinker, as far as the brownfield expansions are concerned, which is clinkerization and one million tons each at Panna, Prayagraj, and Hamirpur, I'm confident that we could be able to achieve that within December. The greenfield grinding may be taken a month or so extra. But though we are targeting by December, latest January, they should be on stream.
Understood, sir. That's all from my side. And all the best for a fantastic year, right? So thank you.
Thank you. Ladies and gentlemen, this will be the final reminder, and no further reminders will be given. But you may please press star and one to ask questions. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah. Thank you. And congratulations on great setup performance for this quarter. Sir, a couple of questions. First, sir, as we are saying, if we will be starting the 6 million ton by December, January, is it fair to say that the next year, FY 2027, at least we should have a 50% + kind of a utilization? So kind of looking at 3 million ton extra volume should be there in FY 2027.
Oh, so about definitely 2, 2.5 million, 3 million. I mean, as of now, to say difficult because even in this year, some of the buckets, when we have the volume, some of the volume numbers will be there, will be part of the expansion in this year also.
Okay. Okay. Got it. Secondly, sir, this quarter, the trade mix has increased significantly, 71% versus third quarter of 2026. So obviously, it is a great thing. So is there a further possibility to increase this trade, sir?
No, no. See, what is actually happening, the new market which we are entering, like for Bihar, for example, the entire volume is in the trade segment only. So, when the grinding unit gets started, then we will enter. It doesn't make sense to send non-trade in the new market from the existing plant because it will not be able to compete. When the grinding unit is there, we'll be able to compete in the non-trade segment also.
Got it. Got it. Sir, just to clarify, this quarter, paint EBITDA loss for just INR 3-odd crores versus last quarter was significantly higher, INR 15-17-odd crores. But still, we are saying that by FY 2027, we should be seeing a break-even. Rather, it should be this year, we should be reaching a break-even.
No, see, what could happen is that as the grinding investment more or less remains the same or marginal increase, when I'm getting an incremental top line with an improved gross margin, we are working on improvement in gross margin, that will bring down the losses. So we are hopeful. We are working as a target. Our focus, though, initially, as I said well before what we said, initially, it was FY 2028, what we are targeting is to have a break-even by FY 2027.
Okay. Okay. Got it. And in terms of the revenue, obviously, this year, you say INR 400 crores-INR 450 odd crores, but FY 2027, previously, we said INR 600 odd crores. So that is.
Yeah, it should be 600. Yeah. So if we grow annually, year-on-year, by INR 150 crores.
No, sir. Got it.
That will definitely help me.
Okay. And sir, whenever we will finalize this next expansion, as we highlighted, maybe four, six months down the line, so is it fair to say that because we want to add another 20-odd million ton, so roughly number could be INR 11-12 thousand-odd crores kind of a CapEx that we are looking at, so on a yearly basis, from FY 2027 onwards, INR 2,000 crores kind of a CapEx should be there. But nevertheless, given the kind of profitability we have, so current net debt can easily be maintained. That's the way one can look at for next even two, three years.
Yeah. Definitely. See, if we have to reach the target of 15 million tons, the kind of investment what we mentioned will have to be made. Otherwise, without investment, you can't achieve that numbers.
True. True. True. True. True. Got it. Got it. And sir, just to last clarification on profitability, is that the INR 75 per ton cost saving we have achieved versus what we said, INR 150, INR 200? But from the next year, FY 2026, we are saying incremental INR 25. But if I have to see from average to average, maybe it should be a INR 50 kind of a saving should be there in FY 2026?
So, average, if we say to the average cost saving during this year, over last year, that would be about INR 40 a ton. We exit the INR 75, what I said. So again, we should get on an average another additional INR 40, 40, 50 rupees as an incremental in the next fiscal on year-on-year basis. But exit is again, next year's exit will be higher.
True. Got it. And lastly, on grey share, how one can look at FY 2026 from 51% currently that we have?
So green share by FY 2026 should be closer to 60. That is why we are working out on various things. I think after Panna, it should be closer to 60.
Okay. Got it, sir. Thank you and all the best, sir.
Thank you. Ladies and gentlemen, we will take only last two questions for today. The next question is from the line of Sanjeev Kumar Singh from Motilal.
Thank you for the opportunity, sir. So UAE plant, so I believe that we are running at optimal utilization rate. So can you please share that what is the import which is being done into India from UAE? CapEx on that plant also, if the utilization rate seems to be more than 90% now?
No, no, no. The UAE plant is not operating at that level as yet. We are exporting certain volume from UAE plant for our certain markets in the southern region. That volume is around 40-45 thousand tons annually. And besides that, some of the customers place order, the bulk buyers, like even Asian Paints and some other players, they take cement from us from the UAE plant. So we are because the white cement definitely will have a lot of competition. Asian Paints plant is likely to commission sometime in Q2.
And that will definitely have an impact on the white cement consumption because they will also reduce the volume which they are taking from us going forward. Because when their plant stabilizes, they will shift to their own production.
So does it mean that in the white cement and putty business, the volumes will largely remain flat over in FY 2026?
Yeah. Not much. Yeah. So we'll be growing in the putty and there may be some slippage. Though we are working out on new avenues, we are introducing for the UAE plant. We have entered into a dry mix category where we are doing quite well. We have already one of the top three. We are number three in the dry mix segment in the UAE. So it's again, as we told earlier, that we have a plan for the UAE plant.
So it is one, the core business continues the white business, but definitely, we have to have more avenues for income as well as the profit. That is why we will be able to, if we have all these challenges, and to maintain a profitability. So this is why we are working out on Africa. The Africa is growing, the putty there.
So all that will result in growth of the UAE business. Or if there are any challenges there, it will be able to consistently maintain the profitability over there.
Okay. And secondly, for gray cement, when we speak about 20 million ton kind of volume in FY 2026, what is the volume are we assuming from the new plant, the expansion which is going on? And when we speak about 5%-7% price increase in the south market, how has been the price increase in Maharashtra? Can you please share this? Thank you.
From the new plant, as I said, the expansion which gets this year could be major volume growth will again come from Central India. If you talk about the expansion itself, it could be another 500,000 and balance will come in. There could be measured quantity, I think, should come in from Central India, which could be out of that 2 million-ton growth, we could see more than half coming in from Central India.
About prices, sir?
So prices, it has broadly mainly increased in Karnataka. I mean, not so much in the Pune region, but it is more in the Karnataka region.
Okay. Thank you. Thanks a lot, sir.
Thank you. This will be the last question for today, which is from the line of Amit Murarka from Axis Capital. Please go ahead.
Yeah. Hi. Thanks for the opportunity again. So I just wanted to have a sense around the volume mix around various geographies for FY 2025, like Pune North, Central, South. If you could just give a broad split, and I believe they're selling in Bihar also now. So just if you could give a rough understanding of the same.
See, broadly, I would say we, I think, maybe 65% and 35% broadly. I mean, exactly from north and south should be about 65% and 35% in the central.
Okay. And then East sales like by.
Central means the east plant. I mean, east is part of central plant.
Okay. Okay. So the new Bihar grinding unit that is coming up. So broadly, I see that there's a plan to raise volume even in East while you club it Central. But I see that there's a plan to grow East as well now. So in that sense, any sense you would give on the, let's say, maybe going ahead, what is the plans on region-wise growth?
So see, again, central plant, that's a natural extension into Bihar from Central India. So again, Bihar does not have any limestone. So it is only fed by Central India plants. So the clinker will definitely go from Central India into Bihar.
So just wondering if, frankly, Bihar as a market has been having lower pricing than the central markets, maybe almost INR 20-INR 30 lower, in fact, after the recent price hikes. So what really is the rationale of going more into Bihar when you can actually maybe cater to UPMT and with better realization as well?
See, when you want to expand rationally, what you're talking about, there is definitely some subsidies in Bihar which we may get. As you grow, you can't only grow, you can't pick and choose that only we will have the desired growth and we continue to remain only in this area. How will you grow if you don't expand your territories, then you cannot grow?
Right.
How will you get the volumes? It will be very difficult to get volumes only in existing territory.
Sure. Understood. Understood. Yeah. That's all from me. Thank you.
Thank you. As that was the last question for today, I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Thank you and over to you, sir.
Yeah. Thank you. On behalf of PhillipCapital (India) Private Limited, I would like to thank the management of JK Cement for the call and also many thanks to the person joining the call. Thank you very much, sir. You may now conclude the call. Thank you.
Yeah. Thank you, everyone, for joining in. Thank you. Have a good day.
Thank you, sir. Thank you, members of the management.
Thank you.
Thank you, sir. On behalf of PhillipCapital (India) Private Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines.