Ladies and gentlemen, good day and welcome to the Star Cement Q4 FY2025 Earnings Call hosted by ICICI Securities 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. Navin Sahadeo. Thank you, and over to you, sir.
Thank you, Sasha. Good afternoon, good evening, everyone, for participating in this call. On behalf of ICICI Securities, I welcome you to the Q4 FY 2025 results conference call of Star Cement. From the management, we have with us Tushar Bhajanka , who is the Deputy Managing Director, and joined by Mr. Manoj Agarwal, who is the Company CFO. So without any further ado, I hand over the call to the management for opening comments. Over to you, sir.
Yeah, so good evening, all. My name is Tushar Bhajanka. I'm the Deputy MD of Star Cement. I welcome you all to the conference call of Q4 2025, and I'll hand over the handover to our CFO, Mr. Manoj Agarwal, to make you go through the numbers, and then we can have the Q&A. Thank you.
Yeah, hi, friends. Very good afternoon. I, on behalf of Star Cement Limited, welcome you all to our phone call for discussing our numbers for Q4 FY 2025 and for the full financial year 2024-2025. I would like to clarify that we are discussing on the historical numbers, and there is no invitation to invest.
Having said that, now I will just take you through the Q4 numbers followed by full year numbers. Starting from clinker production during the quarter ended March 2025, we have produced 11.38 lakh tons of clinker as against 6.93 lakh tons same quarter last year. The increase in production is on account of the stabilization of our 3.3 million ton clinker plant at Lumshnong, Meghalaya. So far as cement production is concerned, we have produced 14.79 lakh tons this quarter as against 13.88 lakh tons same quarter last year. Now I will take you through sales volume.
During the quarter, we have sold 14.75 lakh tons of cement and 0.57 lakh tons of clinker as against 13.87 lakh tons of cement and 0.25 lakh tons of clinker last year. This is as far as cement and clinker sales is concerned. As far as geographical distribution is concerned, in Northeast, we have sold around 11.02 lakh tons as against 10.40 lakh tons during same quarter last year, and as far as outside Northeast is concerned, we have sold 3.73 lakh tons of cement this quarter as against 3.47 lakh tons same quarter last year. In terms of blend mix, it is almost 14% of OPC, and the rest is PPC. These are the quantitative numbers of the quarter. Now I will take you through the financials. The total revenue figure this quarter is around INR 1,052 crores as against INR 914 crores same period last year.
As far as the EBITDA figure is concerned, this quarter we have generated EBITDA of around INR 268 crores as against INR 188 crores last year. That is INR 123 crores as against 88 crores in the same period last year. There is increase in spite of the fact that there is a sharp increase in depreciation due to the capitalization of our two new 2 million ton clinker grinding units and also the clinkerization unit. On per ton EBITDA, it is 1,749 during this quarter as against 1,329 per ton same quarter last year. This is what our quarterly numbers for fourth quarter. The total revenue figure for the full financial year is around INR 3,163 crores as against INR 2,911 crore in previous financial year.
As far as the EBITDA figure is concerned, during the financial year, we have generated EBITDA of around INR 589 crores as against INR 583 crores last year. That is INR 169 crores as against 295 crores in FY 2024. There is a decrease in the amount of increased depreciation as explained earlier. On per ton EBITDA, it is INR 1,245 per ton during FY 2025 as against 1,312 per ton last year. These are the quarterly and full year numbers. Now I request all of you that if you have any queries, you can ask the same, and I will request Navin ji to moderate the queries very, very briefly. As further, Mr. Dilip Agarwal, our CTO, is also with me, so he will also reply the relevant question required to. Okay, now Navin , now it's your turn.
Mr. Navin , you can speak.
Hello?
Yes, sir.
Yeah, Sasha, we can start with the Q&A, please.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you. Sir, first on the volume front, so now for FY 2026, last time we said 5.5 million ton odd kind of a number we are looking at. So what's the revised number?
So the revised number still is about 5.4 million, 5.5 million. So our target remains probably the same, though, of course, monsoon has come early this year, and so the Q1 results may not necessarily reflect us achieving the number year-round. But I think we should be able to probably achieve that number by the end of the year.
Okay, got it. Second, in terms of the prices, sir, so now the current prices, so both in Northeast and outside Northeast for us versus the fourth quarter average is how much increase it is there, and how do we now see the prices?
So the prices compared to quarter four are broadly the average of quarter four is broadly up by about INR 5,000 crores, and we hope to maintain those prices in Q1. But as the off-season comes, then there may be some degradation in the prices.
Okay, so in Northeast and East also, similar INR 5,000 crores to INR 7 crores hiking is there?
Yeah, yeah. Overall, on average, it's about INR 5,000 crores to INR 7,000 crores.
Okay, and still in terms of the gap, in terms of the trade non-trade, for us, it is how much?
The gap between trade, non-trade would be about INR 75,
75 in Q3, Q4.
Sorry, sir, INR 75 you are saying?
Yeah, but that is at the GST level. So you'll have to subtract the GST, and then you'll look at it. So the gap would be about INR 50 crores.
Sorry, it is 80%-20% in Q4.
Sorry, sir, I didn't get the number.
80% in trade and 20% in non-trade.
No, no, you are saying trade, sir, non-trade, sir. You are saying.
Yeah, yeah, yeah.
Yeah, so I think your question was, what is the gap in prices between non-trade and trade? Is that correct?
Yes, yes, yes.
Yes, so that question, the answer is about INR 500 crores to INR 600 crores.
INR 500 crores to INR 600 crores you are saying?
Yes, yes.
Okay, okay, and in terms of the CapEx, now, so first of both the grinding units, Silchar and the other one, so 1 or 2 million ton we were looking at to start in FY 2026 and the other one in FY 2027. So that remains intact, or is there a possibility of early start?
We expect the grinding unit in Silchar to come by quarter four of FY 2026, right, which is basically in about eight months from now. And we expect the grinding unit in Jorhat to come around at the same time next year. So it will be coming in quarter three or quarter four of FY 2027.
Okay, and in terms of the CapEx for FY 2026 and 2027, so would be how much?
The CapEx for FY 2025 was about INR 562 crores. The CapEx which is targeted for FY 2026 would be about INR 823 crores, and the CapEx for about FY 2027 would be about INR 600 crores.
Okay, okay. Got it. And sir, recently we got in March two limestone auctions in Assam, so close to 339 million tons. So the point, I want to understand it. Earlier, we were having a plan, also got a mine in Rajasthan. So we want to reach 20 million tons. So with these 2 million tons, we will be close to 11.7 million tons. So another 8.3 million tons, if we want to reach by FY 2030, how one can look at? So are we looking at more expansion in Assam first and then Rajasthan?
No, so I think the capacity that we have set in terms of clinker and all these are sufficient for the next four to five years. So we do not plan to expand in clinker very soon. But of course, we will take all the permissions in Umrangso. We will apply for all the certificates from the environmental clearance to forest clearance to any other clearance that we require. And we will keep the permissions ready so that whenever we have to set up a new kiln in Northeast, we are ready to set it up in Umrangso. So that is why we have taken the mine. So the mine that we've taken in Umrangso was from a longer-term perspective for our requirement of setting up a clinker plant whenever we need it in Northeast.
Our focus right now is, of course, because in Northeast, we'll have about 12 million tons, right, of capacity, as you mentioned, including Siliguri. So that, I think, for this area, for the next three, four years, is a good plan. And we are evaluating Rajasthan. We have gotten mines in Nimbahera area in Rajasthan. We are also looking for mines in Jaisalmer area in Rajasthan. And we are trying to make a strategy so that we can enter Rajasthan in a substantial way. And for that, we are working. Once we have decided, we'll let you know.
Yeah, no, so the point was that now the FY 2020 is over. So in the next five years, if we want to have 8 million tons, how one can be able to start spending that. So just trying to understand in Rajasthan how much we can add, 2 million tons to 3 million tons, so where the remaining capacity likely can come.
Yeah, so I think if we do Rajasthan, right, if we do end up doing Rajasthan, so it would be about a 4 million tons to 4.5 million tons capacity. Right? So that will inch closer to our, that would be a 4 million tons to 4.5 million tons grinding capacity with a clinker capacity of about 3 million tons, r ight? So if we go in that model, then we reach about 16 million tons, 17 million tons, like 12 million tons of what we have already announced, and 4.5 million tons of what potentially we can do in Rajasthan. So including that, I think we inch closer to the 20 million tons number. And in the next five, six years, I think there will also be a requirement of another grinding unit in Northeast. Not now, but probably in the next five, six years. So that inches us closer to a 18 million to 20 million number, basically.
Got it. Sir, now a couple of data points.
Sorry to interrupt. Can you please rejoin the queue?
Okay, okay. Thank you.
Thank you very much. The next question is from the line of Navin Sahadeo from ICICI Securities. Please go ahead, sir.
Yeah, thank you. Thank you for the opportunity. A couple of questions. So what was the amount of incentive booked in the quarter, please?
It is INR 75 crores.
Understood. So that comes to roughly around INR 500 crores per ton, give or take. So is it fair to assume that with the new kiln fully stabilized, we'll continue to see the incentives at a similar per ton run rate going ahead as well, or there could be some deviation? Or broadly, what is the annual incentives one can look for, let's say, a foreseeable future of four, five years on a steady run rate basis?
It should be almost similar kind of subsidy, except for our Lumshnong plant. The old one. And that too, I think, how many years now?
Since 2017.
Next two years, we are due for subsidy in Lumshnong plant at Star Cement Limited. And so far as Guwahati grinding unit is concerned, so Guwahati grinding unit will continue to have this for another six, seven, eight years. And Lumshnong plant standalone, if you see the complete number of subsidy, then it will not have a much bigger number. And next year, we are targeting Silchar and Jorhat also. In the next two next year, Jorhat and next year, Silchar. So that will also add to the cut of subsidy. So we do not see any drastic change in the numbers of what we are having right now.
But if you see that, depending upon the July to September, because it depends upon the volume, so maybe July to September will come down. May not be INR 75 crores for the four quarters.
No quarters.
But it is maybe somewhere between INR 220 crores to INR 250 crore, it will be there.
Understood. Understood. So roughly INR 200 crores to INR 250 crores anywhere, that kind of a number per annum is what we can look to generate for next few couple of years going ahead.
Yeah, I do.
Understood. So my second question was that as you ramp up your Northeast, like recently commissioned capacities and grinding units are also coming along, and Tushar in the previous question mentioned you have enough volume left which can support growth or your volume growth for next four, five years. So is it then fair to say that entire the energy from a growth perspective, all the energy will be canalized towards new capacities in Rajasthan? Is that the way to look at it?
I think that is fair. I think that is one way of looking at it. But the thing is that we are in no hurry in that sense, right? So what we really want is that once we enter Rajasthan, we have enough resources, we have enough mines, right, that can sustain our growth in Rajasthan. So we are, though we are aggressive and of course adding up capacities, we are conservative financially, and we would want to first get all the permission, then probably in the next call, I think we'll be in a better position to explain to you what exactly we are doing in Rajasthan. But right now, we are just making sure that we have our base ready so that we can enter Rajasthan in an effective way.
Understood. And my last question was, is there any further scope of efficiency now that the new kiln has ramped up? Are we likely to see further efficiency gains from the waste recoveries, or most of the gains are already captured?
I think the WHRS has just come in and said, so quarter four may not cover the entire period of WHRS benefits. I think WHRS is one benefit which we expect from line three, which the new line that will start reflecting. Besides that, the new line is still stabilizing. Of course, we are able to produce at 70% to 80% capacity, but it still can produce more. As the kiln stabilizes further and starts producing at a higher capacity, the heat rate and the power would come down. That saving may not be very significant, but will start reflecting in the results.
Understood. That's helpful. Thank you. Thank you. I'll come back in queue for further questions. Thanks .
Thank you very much. The next question is from the line of Mr. Jain from Investec. Please go ahead.
Hi, good afternoon. Thank you so much for the opportunity. Just two-fold question that I have. One is about the EBITDA that we have. In this, what is the proportion of incentives for Q4 year- on- year and on FY basis?
Yeah, I think INR 75 crores, as I already said, this quarter is INR 75 crores.
Sorry, your voice is not very clear.
As my CFO said, that this quarter Q4, FY 2025, the incentive is INR 75 crores and on a full year basis. Just a minute, and on a full year basis, it is INR 167 crores.
This is compared to previous year and quarter, respectively?
As compared to previous year, this year 167 against INR 16 crores or INR 17 crores last year on full year basis. And on a Yo Y quarter basis, this quarter Q4 quarter is INR 75 crores.
I think it was INR 3 crores last year.
As of last year, very negligible amount of around INR 3 crores.
Okay, okay.
So the other question is, what is the current grinding capacity in Northeast?
Northeast. You are asking about our capacity or total capacity of industry?
No, no, your capacity. What is the total grinding capacity in Northeast?
Our capacity is 5.7. Because totally we have 7.7. Two is in Siliguri, that is 5.7 is in Northeast.
Okay, okay. So comparatively, the sales in OPC is quite different compared to the grinding units that we have. Is that?
Sir, sorry to interrupt. Can you please join for a follow-up?
Okay, sure.
Thank you very much. The next question is from the line of Harsh Mittal from Emkay Global Financial Services. Please go ahead.
Hi, good evening. Thank you for taking my question. Most of my questions have been answered. A few questions. First is, what is the EBITDA breakdown between the East and Northeast, if you can provide that detail?
Normally, we do not break EBITDA on geography basis. So we work on the combined EBITDA basis only. And that's workable for us. So other plants in lump sum. So we have to take it on a holistic basis in.
Sure, sure. Sir, next question is, what is the time difference between the incentive booked and the actual cash receipt are the same?
Same, most of the subsidy is GST-based subsidy. So when you commission a new plant, initial lag belongs to 18 months. And after that, it kind of regular cash flow kind of. Maybe one quarter or so, o ne quarter lag.
Okay, okay. Sure, sure. Sir, what would be the lead distance for this quarter, sir?
This quarter, we have a lead distance of 229 km.
Sure. Thank you, sir. That is all.
Thank you very much. The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead.
Yes, sir. Very good afternoon and congratulations on the set of numbers. Sir, my question pertains to the AAC blocks in Guwahati. So what is the current status of this thing?
AAC block unit is actually now almost ready for commercial production. We are targeting to commence the production maybe last week of any day kind of situation is there.
Okay, how much revenue we are expecting from this particular unit in FY 20s26?
We have actually set up AAC plants and also construction chemicals. Though I don't have a revenue estimate right now, but we do expect and there are central benefits and also state benefits attached to it. We do expect to generate an EBITDA of about INR 15 crores from this in the first year. It is going to commence, I think, in this coming week.
Okay. And sir, how was the Premium Cement sale during this quarter out of trade sale?
I think we have reached a premium segment sale of almost about 12% in quarter four, which we had started last year at about 5%-6%. So there is a good growth of premium sales in the last eight, nine months. And we expect that in the coming year, we can be reaching about 20%.
Okay, so a few data points for this quarter. This is Nagaland coal, biomass, and auction coal and per kilo oil cost.
Yeah, because fuel cost is INR 1.54 million crores per deciliter. And from FSA, we have 52% from FSA. And from biomass, bamboo, and others, 14%. Nagaland is near 1%. And that is for pet coke, 33%.
Okay, okay. That's all from my side. I wish you all the best.
Thank you.
Thank you very much. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Thank you, sir. Sir, just one thing to understand. This depreciation run rate of INR 88, 89 odd crores. So that's the now the new normal run rate that one can expect, or now once the plant is stabilized and we can start seeing a decline in the depreciation till the new grinding unit comes?
Yeah, because the depreciation we are in on the existing balance sheet. So our depreciation will be because the first year it will be higher. And as year goes on, it will come down. So the depreciation until because the new plant will come only in the Q4. So there will be depreciation.Until that time, the depreciation is going to reduce only.
Okay. And sir, in trade, so per ton basis versus Q-on-Q basis from third quarter to fourth quarter, there is a sharp increase there from INR 1144 crores odd per ton to INR 1280 crores odd. So kind of INR 136 crores. So any specific thing to highlight or how one can now look at will this INR 1280, INR 1300 rupees rate is kind of a new normal?
Normally, Q4, last quarter of the financial year is the peak season time for the business, so at that time, if you see on a year-to-year basis also, then there is a tendency of increase in freight in the last quarter of the financial year.
Yeah, it increases even last year. It has increased, but not of significant, only INR 25-INR 30 odd. But this time, it was significant, INR 136 crores per ton on Q2. So that's what I have.
So because this is a very long distance has gone up, right, sir, because this quarter. So once it will be normalized, there will be no such increase in freight cost. And also it depends upon the fuel prices. And also if it goes up, then it is very difficult to predict right now. But it will normalize.
Okay, okay. Okay. And Siliguri currently would be in terms of utilization for fourth quarter would be similar 45%-50%, or it has gone up?
It is in Siliguri, last quarter we utilized more than 70%.
Oh, that's a great number. Okay, great, great. Yeah. And in terms of last time, we were saying that though our focus will remain on the trade segment, but we also want to grow the non-trade share. So though this quarter, we haven't seen any much change despite of sharp improvement in the volume. So this 80-20 kind of trade-non-trade, that's the way one can look at, or we can see maybe further increase in the non-trade and trade going down?
I think more or less it would remain barring 2% here and there.
Okay, okay. Got it, sir. Thank you and all the best.
Thank you.
Thank you very much. The next question is from the line of Harshal from Asian Markets Securities. Please go ahead.
Thanks for the opportunity, sir. Sir, basically, if you see in the balance sheet in current assets, other financial assets, we have seen a very sharp jump from almost INR 12 crore to INR 175 crore.
Yeah, because we are told because subsidy, what we accrued, around INR 150 crore of subsidy, that has been increased as compared to the last year. And which we are hopeful to get in maybe by quarter two, it will be clear. And then after that, it will be maybe a quarterly accumulation. So that is the one time because the subsidy is going to pile maybe.
As I shared earlier, that in the initial year of first year of production, it takes around 12 months to 18 months till first time it gets accumulated. And then there is a gradual cash inflow of that accumulated subsidy. And I think from next to next quarter, this will get streamlined. And whatever you are able to see in the current asset number, that will also get stabilized.
Thank you, sir.
Thank you very much. Before we take the next question, we would like to remind participants to press star and one to join the question queue. The next question is from the line of Mr. Jain from Investec. Please go ahead.
Thank you for the opportunity again. Just a follow-on question. So what is the expansion that we are looking for in the other regions as well? Is there any scope of Chhattisgarh, Jharkhand, anywhere?
I think right now, so far as expansions are concerned, we have a plan as we already discussed with all of you in Northeast. One grinding unit in Silchar, which is already on. One grinding unit at Jorhat. And then we have some plans in Rajasthan, as we said earlier. Barring those plans, as of now, we don't have any other plans. Whenever we have any change in our plans, we will definitely share with investors.
Okay, understood.
Thank you so much and all the best for the coming months.
Thank you very much. The next question is from the line of Mr. Navin Sahadeo from ICICI Securities. Please go ahead, sir.
Yes, thank you. Thank you for the opportunity. My question was around the competitive intensity in Northeast. So if you could just share or give some light on how are you looking at the overall competitive scenario in the region. In the sense, except Dalmia, do you see any other major capacity coming up, be it from Hills Cement or some other entities that are likely to were looking to set up a plant in the region, including UltraTech? So if you could just throw some light on the competitive landscape there.
I think except Dalmia, as you rightly said, like UltraTech and other bigger players, in the next two, three financial years, or three, four financial years, we are not able to foresee any asset acquisition or any greenfield project going over there. So in the short term, we are not able to foresee any such capacity addition over there or the competitive market scenario.
Understood. Understood. That's it from my side. Sasha, if you have any more follow-up questions, please check on that, or we can then probably conclude.
Okay, sir. The next question is from the line of Harsh Mittal from Emkay Global. Please go ahead.
Hi, thank you for the follow-up. Just one question. What is the consolidated gross debt and net debt? Thank you.
It is almost around gross debt is around INR 380 crores or so.
3-8-0, sir. Am I right?
Yeah.
And net debt?
Net debt, because there are hardly any cash that we manage right now. Maybe INR 20 crore, you can see INR 60 crore kind of thing.
See, around INR 350 crores to INR 360 crore gross debt, we are due for subsidy of around INR 150 crores, which is, as we discussed a moment before. So far, as other cash and other things, cash equivalent circumstance, that is not very much significant on. So 350 minus 360 minus, you can say INR 150 crores. So around INR 200 crores or INR 210 crores, you can take as net.
Sure. Thank you. Thank you, sir. So this INR 200 crore,s can we say it's as of March 2025 ending, or is it the current net debt?
It is the current ending. Yes.
Because currently, because what we need to say is that books subsidy receivables here, that is also maybe currently we will be receiving in three or four months' time. So we will be talking about. It will be about the debt is around gross debt is INR 350 crores, and net of cash and equivalent is around INR 320 crores or so. But if you consider the receivables or current receivable of these subsidies, then it will be around INR 200 crores.
Got it. Thank you, sir. Thank you for that. Thank you a lot.
Thank you very much. The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead.
Yes, sir. Thanks for the follow-up. Sir, I missed the FX number for FY 2026 and FY 2027, if you can provide them.
So as I just told, the FY 2026, we have a plan of around INR 823 crores, INR 820 odd crore. And for FY 2027, it is around INR 600 crores.
Okay, sir. That's no problem. Thank you a lot.
Thank you very much. As there are no further questions from the participants, I now hand the conference over to the management for closing comment.
So thank you, friends, for participating in discussion of Q4 FY 2025 and year-end FY 2025 numbers. We'll keep you informed about these numbers on a quarter-to-quarter basis. Thanks for joining.
Thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.