JK Lakshmi Cement Ltd (NSE: JKLAKSHMI) Q1 2026 Earnings Call dated Aug. 04, 2025
Corporate Participants:
Unidentified Speaker
Vaibhav Agarwal — Investor Relations
Arun Kumar Shukla — President and Director
Sudhir Bidkar — Chief Financial Officer
Analysts:
Unidentified Participant
Amit Murarka — Analyst
Vishal Dudhwala — Analyst
Ashish — Analyst
Rajesh Ravi — Analyst
Ritesh Shah — Analyst
Dharmesh Shah — Analyst
Madhav — Analyst
Kamlesh Bagmar — Analyst
Shravan — Analyst
Nidhi Hasija — Analyst
Milind Raginwar — Analyst
Uttam Kumar Srimal — Analyst
Parth Bhavsar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the earnings conference call of J.K. lakshmi Cement Limited for the quarter ended 30 June 2025. 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 call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Agarwal of Philip Capital. Thank you. And over to you sir.
Vaibhav Agarwal — Investor Relations
Thank you. Rayo. Good afternoon everyone. On behalf of Philip Capital India Private Limited we welcome you to the Q1FY26 call of JK Lakshmi Sim Limited. On the call we have with us Mr. Arun Kumar Shukla President Director and Mr. Sudhir Vidkar, Executive Director Corporate affairs and CFO at JK Lakshmi Cement. I would like to mention on behalf of JK Lakshmi Cement Limited and its management that certain statements that may be made or discussed on this conference call may be forward looking statements related to future developments and which are 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 the actual developments and results to differ. Material from the statements made JK Lakshmi 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 new information or future events or otherwise. Also, JK Lakshmi Cement has uploaded a copy of the Q1FY26 results presentation on stock exchanges and the company website. Participants may download a copy of the said presentation from these websites. I will now hand over the floor to the manager of JK Lakshmi Simon for their opening remarks which will be followed by interactive Q and A.
Thank you. And over to you sir.
Arun Kumar Shukla — President and Director
Thanks Baba. And good afternoon to all of you. So this time as requested by some of you that we need to upload our presentation. So we have done that this time. So probably you would have downloaded the presentation for the meaningful discussion in this conversation. Since we have given everything, I think we can start our conversation right away. But before that I just give you a glimpse of the industry which is important though I think all of you are in touch and tracking the development in the industry. But nevertheless demand supply side if you look at last quarter the volume growth is about 5 to 6%.
This is what we have seen and there is regional disparity in terms of volume growth. So. So some of the zones have done better but some of the zones have not done that as good. So this is on demand side of it. On pricing some of the geographies have witnessed a good price increase particularly south and east. South to the extent of about 8 to 9% and east also about 6 to 7%. North and west I think have not witnessed that much increase and also central part of India west in fact I think prices have been little bit slid last quarter.
So this is on pricing side of it if you look at, you know, what kind of drive we have within the organization. So I think that remains what I have been talking about for the last so many calls. We are looking inwardly as to how we can really improve our efficiency across the value chain to be amongst top companies in terms of EBITDA burden. And I’m happy that I think directionally we are all right and we are working on all those levers which is going to take us to that level. On the manufacturing front of course I think renewable energy is one of our areas where we are focused.
That is what is going to give us savings going forward. Second is improvement of TSR thermal substitution rate. We are doing better and in coming quarter I think things will further improve of course I think after this monsoon quarter which is typically challenging in terms of operational difficulties when you use AFR and rdf. Third is digital front. We are working quite intently and extensively and particularly on manufacturing front. So there are few initiatives which we are going to take on digital front which is going to drive our efficiency further on supply chain front of it.
Yes, I think constant focus is there to optimize this in terms of our dispersion and also in terms of per ton per km freight. On top line front, the recently rejuvenated brand of Green plus and Pro plus is doing very well. And with this merger of UCWL and those two brands coming to our fold, Akilakshmi fold which is Platinum Heavy Duty and Platinum Supremo is further going to help us to improve our channel reach and volume. That is what we believe. We are constantly working on improving price positioning. Aftermath of this new brand launch which we call, you know, Green Plus.
So that effort is also on. Apart from that I think, which I think Weber has been mentioning in his, you know, thesis and I’m quite aligned with him that how we can really improve this, you know, ground level kind of, you know, working in terms of efficiency, in terms of, you know, dividing all those, you know, redundancies. I think that is also in our sight. So this is what we have with us. I think just a brief prelude to our discussion which we are going to have now. So thanks for now. Now we can start question and answer.
Questions and Answers:
operator
Sure. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press Star and one on their touchstone telephone. If you wish to remove yourself from the question key you may press STAR and two participants are requested to use handsets while asking questions. The first question is from Amit Murarka from Access Capital. Please go ahead.
Amit Murarka
Yeah, hi, good afternoon. Thanks for the opportunity. First question is on volumes and realizations. You’ve done quite well in this quarter. What would be the guidance that you would like to give for the full year from a volume perspective? Now
Arun Kumar Shukla
as I said before we’ll do better than industry and we are well on track. So we’ll deliver that at least you know, incremental over the industry growth. That is we are confident about.
Amit Murarka
Sure. Could you also highlight like you have. You keep optimizing on the geomics as. You have been highlighting. So has this volume growth come from other regions? Because what we also understand was there was weakness in the northern India region this time.
Arun Kumar Shukla
Yeah, yeah Amit, you are right. So I think yes, as I told in the last call also that some of the areas where we are going to be there in future so we have started seeding those markets. So yes, volume has come from those areas, those markets and you would have noticed that our lead also has gone up to an extent. So that is the outcome of that like central part of India and particularly up east. So volume growth is coming from there. Of course I think north was flat kind of thing or not done that well in terms of volume.
But yes we have got growth out of those newer market. One second I think we had you know, clinker also with us. So that has helped us to improve you know our volume little bit and market like you know MP east which we cater from Durg and Maharashtra East. So that has helped us to improve our volume. Of course I think other zones have also done reasonably well and we are in alignment with the industry growth in those markets as well.
Amit Murarka
Got it, thank you. And just second question on the expansion in east. So what is really the status right now? I think like is the equipment ordering done and if not Then how soon. Can we expect that.
Arun Kumar Shukla
Equipment or doing. You are talking of the door plant? No, expansion.
Amit Murarka
Yeah. Yes, yes,
Sudhir Bidkar
and expansion. We hope to start placing the order from the current quarter.
Amit Murarka
Sure. So March 27th I think is what you’re guiding for completion.
Sudhir Bidkar
Hopeful that we’ll be able to do that.
Amit Murarka
Got it. Sure. I’ll come back in the queue then. Thank you.
Sudhir Bidkar
Thank you.
operator
Thank you. Participants who wish to ask questions, please press star. And one next question is from Vishal Dudwala from Trinetra Asset Managers. Please go ahead.
Vishal Dudhwala
Yeah, thank you for the opportunity. Am I audible, sir? Yeah, yeah, very much so. Like J.K. lakshmi reported a twofold increase in net profit on a yoy basis plus volume growth is fantastic. So I want to just know like partially attributed the merger with Udaipur Cement. Can you elaborate on the operational synergy already realized post merger in this quarter?
Arun Kumar Shukla
I think almost, you know all those synergies we had been doing before. Right. So I think we have realized almost of that maybe I would say to the extent of 80, 90%.
Vishal Dudhwala
That’s it. From my hand.
operator
Thank you. Participants who wish to ask a question, please press star. And one next question is from Ashish from Leo Capital. Please go ahead.
Ashish
Sir, can you just reiterate what’s the timeline for commissioning of a DURG expansion project? And my second question is what sort of utilizations are we operating at currently in the East.
Sudhir Bidkar
East that currently I think we are almost operating at 100% kind of thing. And this is what I think he was so east. I think our efficiency is good in terms of capacity utilization. And on that
Arun Kumar Shukla
project we expect the. First phase which will include the clinkerization and two grinding unit, one at the mother plant at Dhug and another in the Madhubani would happen by March 27 and one year later the balance, the other two grinding unit will happen. That is what we think the timeline as of now.
Ashish
All right, thank you, sir. That’s all from my side. Thank you.
operator
Thank you. To ask questions, please press star. And one next question is from Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi sir. Good afternoon and congratulations to the team for a strong performance. So my first question pertains to on the Northeast expansions. What is the status on the expansion of the Northeast project?
Sudhir Bidkar
Yeah, Northeast. There have been some development which we have been reporting to the exchanges. We have now. There was as we mentioned earlier that the MDO agreement which AMDC had granted to Trivikram Consortium, that was cancelled and we obviously filed a repetition in the Assam High Court for against that. But parallel we have been able to retrieve at least two of the three mines having limestone reserves of about 250 million tons. That has come directly as an MDO in JK Lakshmi. We and the third mine may be auctioned in future. But we have got direct access as 100% owner in those two mines.
Out of 335 million reserves which were there in three mines taken together we have now percent for the two mines. So we are pursuing with that the land which was allotted in name of Mahabal in that consortium. We have now got that transferred in name of J K Lakshmi. So ultimately this northeast project which was earlier supposed to have happened in a subsidiary Agrani and other things. Right will happen in JK Lakshmi as 100% owner. So what? It also means that the balance consideration which out of the 325 crores was the transaction value for that deal we had already paid based on the milestone achievement 130 to be precise to the erstwhile owner.
And the balance 190 was payable on the achievement of certain milestones future that would obviously not require to be paid in future. So it we get the two mines directly in our JK Lakshmi the royalty is slightly higher. Earlier it was 105 rupees with escalation of 5% every three years. Now that has come to us at a royalty of about 251 rupees per metric ton. So that is the status we hope to once the land has already is in our position. So we will start placing the order immediately after the placement. It will be a replica broadly from the durg.
Rajesh Ravi
Okay, so see 130crore which you had paid to the as well promoter. So is it, is there anything that you need to get this recovered? Because now it is happening directly under JK Lakshmi.
Arun Kumar Shukla
Yeah, we’ll pursue with them. We are exploring that once this everything is streamlined as far as JK Lakshmi is concerned, we’ll explore those legal possibilities of getting that money.
Rajesh Ravi
So to what you will do the total project cost now when you are doing it as on your on your own basis and what will be the. Project
Arun Kumar Shukla
thereafter therein Project cost is not going to change. We have to form it up. Actually we will be able to respond by next quarter the exact size which we are going to put in and our as part of JK Lakshmi only earlier we were toying with the idea of doing a 1 million ton clinker and 1.5. Right. And that was costing about anywhere between 2000 to 2500 now we’ll explore and then confirm maybe by hopefully by when we have the con call for the second quarter meeting results we’ll be able to confirm the exact size and the project cost.
Rajesh Ravi
Okay, great. And two more questions. First of the could you say the this non cement revenue EBITDA and second, what is the capex outgo which total on a console basis for FY26 27 which you’re looking at currently.
Sudhir Bidkar
Now as far as the that non cement is concerned is about 160144 crores is the total what we have done in this with an operating margin of 4%. Regarding your question we are doing in the current year it’s expected to be about 1800 crores. FY26. Yeah, anywhere between 1500 or so then 1800, then again 1500. That is what.
Rajesh Ravi
Sorry for next three years. 15, 18. 15 years.
Sudhir Bidkar
Yeah, 15. 18 and 15.
Rajesh Ravi
Okay. And possible to share some breakup of this 1500. How is that place between it will.
Arun Kumar Shukla
Be primarily will include the Durga expansion and the northeast northwest will happen maybe maybe about six months later. But broadly it will be Durga expansion.
Rajesh Ravi
Okay. And this railway siding which is pending a phase two. What is the status and how much capital is needed?
Arun Kumar Shukla
Most of the expenditure has already happened so that should marginal only grinding unit hope will be announcing in this current quarter ongoing quarter the commissioning of that. So our capacity will be 18 million. And railway siding as I mentioned most of the capex has already happened. So marginal is there first phase is already over. So some revamping of the line is required to be done which will do
Rajesh Ravi
great. And the overhead conveyor belt which was pending.
Sudhir Bidkar
Yeah, so that is also in the advanced stage of so sale board has already approved this is lying Ministry of Industries and Steel.
Rajesh Ravi
Okay.
Sudhir Bidkar
I think that is final stages of approval now.
Rajesh Ravi
So it is more of a procedural delay now rather than earlier it was getting stuck because of the main approval.
Sudhir Bidkar
Yeah, procedural leader because everything you know, major thing has already happened.
Rajesh Ravi
Great. So just one last question. See you’re now present in almost all markets barring south. You know west you’re already central, you’re there east and even northeast you have a plans. So what is pending is in south market. So do you think you should be also looking into becoming a Pan India player over next three, four years?
Arun Kumar Shukla
We evaluate various opportunities and size has to make a sense to us because strategically as of now, as you rightly said, we don’t have a presence. So it will not be a strategic fit. But we explore there are some pluses and Minuses for an India and being concentrated in a few region as we are today. But we always explore and if it comes at the right price, obviously don’t rule that out.
Rajesh Ravi
That is what I said. Okay, great. Great sir, thank you and all the best. We’ll come back in queue.
Arun Kumar Shukla
Thank you Mr. Rajesh.
operator
Thank you. Participants who wish to ask questions, please press star. And one next question is from Ritesh Shah from Investec. Please go ahead.
Ritesh Shah
Hi sir. Thanks for the opportunity. Two questions. Sir, how should we look at the cost curve difference between north and eas? If you could give some broad guidelines, that would be great.
Arun Kumar Shukla
No, there is cost. Cost means what operating cost you’re talking.
Ritesh Shah
Yes sir.
Arun Kumar Shukla
So I think only difference is in the. Because you know in north we do use, you know, fuel. It is imported. Imported like particularly Petco and coal. Right. But in case of east we have that, you know, some linkage coal with us. Right. And more so we are dependent on about close to 80% of renewable energy. So that is what the difference is.
Ritesh Shah
Okay, answer. From a logistics standpoint.
Arun Kumar Shukla
Logistics. I think our leads are lower than what we have in north and west because we are very focused in the geography of Chhattisgarh where our plant is there and we go to bordering areas of some neighboring states. So lead wise we are lower than this place of north and west.
Ritesh Shah
Okay. And sir, would it be possible to indicate broadly EBITDA per ton differential between north and east?
Arun Kumar Shukla
Maybe I think latter. We can. Yeah, we do not have, you know, readily available with us. So we can come back to you on this.
Ritesh Shah
Sure. And sir, my second question is how should we look at the leverage profile? You did indicate broad capex numbers. Now the reason to ask is there were a few press notes about we looking for one particular asset in southern India. So are there any broad guidelines on net debt to equity that we have in mind and we should be looking at.
Sudhir Bidkar
We generally want to be conscious of our leveraging whether in terms of the net debt to equity or net debt to ebitda. And as we speak we have a net debt to EBITDA as of now of 1.5. Generally our endeavor is to keep it below 3. But when we do go for the expansion as we are doing at the time when we are nearing the expansion, the debt comes on the balance sheet whereas the expansion commensurate debtor follows one year, two year later based on the ramp up which we are able to do from that expansion.
So even if it marginally exceed that level of three times. But so long as the Roadmap is very clear how it is going to taper down. We take a call on that. That is how we go about it.
Ritesh Shah
Sure. And so just last third quick question sir. Any hopes on pricing to increase in north and west because structurally these far better stronger demand supply regions in contrast to what we are witnessing in south. So how should we look at pricing in north and west?
Arun Kumar Shukla
I think prices definitely will update going forward. So maybe we are through now the cyclicity of our industry. Right. So July, September typically is low in terms of demand. But. But my sense is I think prices are definitely going to move upward going forward.
Ritesh Shah
Sure sir. Thank you so much for the answers. I’ll join back with you. Thank you.
operator
Thank you. Participants who wish to ask questions please press Star. And one next question is from Milin Raginwar from Bob Capital Markets. Please go ahead. Milan from Bob Capital Markets. Please go ahead with a question. There seems to be no response from the line of Milan. We’ll move to the next question. Next question is from Dharmesh Shah from JM Financial. Please go ahead.
Dharmesh Shah
Thanks. Thanks for the opportunity. Sir. My first question is on the with the merger of UCW and gkcl how should we look at from a brand consolidation perspective if there will be any brand consolidation or we will operate with the all the brands.
Arun Kumar Shukla
So Dharmesh, thanks for asking this question. So as I said in my opening address that we are going to continue with the two brands of UCWL which is Platinum Heavy Duty and Platinum Supremo. Now the strategy behind this is that we want to improve our channel reach, right. Because now these two brands are well accepted in various markets where we operate. We want to leverage those brands now and more so because now they have come under JKLC umbrella. So that is going to give us good leeway to really further expand this and reach out to more number of channels and improve our channel reach and volumetric reach.
So this is what the strategy is. So in nutshell, yes, we are going to continue with these two brands.
Dharmesh Shah
Thank you. My second question is on this northeast. So I’m not very clear the reason for increase in the royalty rate and how it will change the project IR because we are witnessing almost two and a half times increase in the royalty rate.
Sudhir Bidkar
Royalty is based on the fresh tender which was floated by this AMDC. So the reserve price itself was 250 rupees per ton. Obviously it will on one side increase the cost of clinker because of the higher royalty. But more importantly initial cost of the project comes down. So overall there May not be much difference in the Project irr, including the initial because we had factored that acquisition cost of 325, that was for 85% stake. And to buy back the remaining 15% another 100 odd. So that to that extent it goes down. On the other hand, the royalty increases, but that is futuristic upfront.
Because of the lower upfront outgo, the Project IR may not materially be so different.
Dharmesh Shah
Thank you. Thank you, sir.
Sudhir Bidkar
Thank you.
Arun Kumar Shukla
Thanks.
operator
Thank you. Next question is from Madhav from Emerge Capital. Please go ahead.
Madhav
I hope I’m audible.
Sudhir Bidkar
Yeah, very much.
Madhav
I just wanted some thoughts on how do you view the increasing aggressiveness by Adani and Ultratech and how is the competitive landscape shaping up?
Arun Kumar Shukla
Competitive landscape has already stepped up. In fact, you know, if you see the last trajectory of one, one and a half year, two years time, so this has stepped up in a way already. Right. And impact, I think, see wherever we are there, we are a formidable player. We have, you know, good presence, very good network, good reach. Right. So I think we are equally competitive in those markets where, you know, big players are there, I will not name them, but wherever they are there, I think we are equally competitive. And if you see our performance also I think, you know, markets here and whatever we had before, I think is in alignment with that.
Okay? So see, competition is going to be there in the market. It’s all about, you know, how we are going to have our own strategy which is going to really take on to those challenges and, you know, ascertain our objective. Right. So that is what we are doing. And this is what I think I told in the beginning also that our much more focus on improving our competitiveness. Looking inwardly and I told you various actions which we are taking and going forward also I think we are not going to relent. We are going to further intensify our effort internally to kind of be competitive in all those markets wherever we play.
Madhav
Understood, sir. Thank you so much. Could you also share some thoughts on the market share? What do we have currently?
Sudhir Bidkar
Market share I think in different markets since we are not there, you know, everywhere. So I think wherever we are there, I think we have a reasonable market share of about, you know, 10 to 12% in all those market in Chhattisgarh and all we have even 13, 14% market share. Right. And Rajasthan, we have a good market share. Gujarat, we are, you know, 13, 14 market share, percent of market share. So all those markets, wherever we are there, I think fair market share. What our definition is, we should be more than you know, 12, 13% and all those markets where we operate, we are kind of having those kind of market share in every market.
Madhav
Understood sir. Thank you so much. That’s all from my side.
operator
Thank you. Next question is from Kamlesh Bagmar from Lotus Asset Managers. Please go ahead. Please go ahead with a question.
Kamlesh Bagmar
Yeah, thanks for the opportunity, sir. Just referring to some media news saying that we are in the race for Deccan Cement. I just wanted to know the. I know that you have articulated to the exchanges saying that we assess all those opportunities. But anyways, like just to have some sense like why we want to be in the like south market. Like if we see last six, seven years like say barring Udaipur, we have not expanded capacity in the north market and which is the most important and most efficient and high yielding market. And if we see over the last six, seven years like the way the wonder cement has come in, various other players have come in.
We are not able to scale up in that market in such a way. So why not proceeding with the expansion in the north market and prioritizing or moving to the south market?
Arun Kumar Shukla
Yeah, so I think north anyway we are expanding, you know we have already added about 2.5 million ton on last, you know, 28th of March 2024. It is not that I think we have not added capacity and in fact I think we have done some kind of, you know, de water lacking also 0.6 million ton at Udaipur itself. Close to about, you know, 0.3 million ton at Sirohi. Right. So idea was that, you know, let us, you know, exhaust our, you know, capacity first then to kind of move on to next, you know, expansion. And that is what I think we have done now since after Udaypur anyway.
I think in the pipeline is now gone Nagor. We have, you know, mining licenses with us and we have already started acquiring land, taking approvals and we do have plan to set up a 3 billion ton plant out there. So I think north is very much, you know, focus in our case. And north we are going to be a very formidable player. If you look at, you know, north, our capacity installed capacity in north itself is you know, close to 10 million ton which is none less than even the bigger, bigger player in that market.
Markets. Okay. Yeah. So I think that is going to be our focus. That will remain our focus even going forward. One second. I think you asked about, you know, exploring other market. I think northeast we are not there as an organization. We do kind of, you know, have a look at our, you Know, future, you know, canvas as to where we want to play. And we feel, we felt that, you know Northeast is a good market where we should be in and that is what we are trying to be there in East. I think I told you that our capacity utilization has reached to a level now.
We have a good plan of 4.6 million 10 years. Right. So there we want to consolidate our presence. Right. Similarly, I think wherever we feel that, you know, any opportunity which comes on our way or be it, you know, Brownfield or Greenfield, we definitely evaluate and we take a very conscious and well, deliberate and thoughtful decision as to how much we need to go there and to what extent we can play. Right. So that exercise in an organization I think anybody would be doing and that is what I think. JK Lakshmi Siemens as an organization we are doing even going forward also we look at all opportunities.
We have a clear cut roadmap of 30 million ton by203.0. Right. And Will, the way I think we are moving will definitely achieve that as well. So I think it’s not that we are definitely, I think we are through with all those, you know, I think utilization of capacity then going forward we’ll have that kind of growth ambition.
Kamlesh Bagmar
So what is the status of land acquisition at Nagar plant? Because. Honestly like the way the completers like 3 cement they came out with Nadwara they plant at Navalgard Ultratech also came in then DSW which has like say they are putting up or they are about to commission the plant in next six months. So the aggression or the speed which the other players have shown in adding capacity in the north market and with the focus we are, we are honestly missing on that particular part at least in the north market. So on that line. So what is the status of that Nagar plant acquisition or land acquisition?
Arun Kumar Shukla
So Nagar we have two mining lease licenses in one. I think we are almost through with you know all those approvals. Right. So I think we are almost there where we wanted to be in case of other mines we have you know, some exchange of land like you know, Gocher land and forest land which we are in the process of now exchanging. So that process is on okay. Planned land. We have already identified that the place and part of land acquisition we have already done. Right. So you know we wanted to first kind of, you know ensure that all those prerequisite approvals for limestone mining is in place that we have done in case of one mining, almost second.
In case of second mining. Yes, we are in the process of some of the more steps which we need to take and land. We have already identified place and we have started acquiring land. So this is what the status as of now. Hello. Hopefully we are audible.
Kamlesh Bagmar
Yeah sir. On the. On the Sarastra. So we have also one mine in Sarastra as well. So any update?
Arun Kumar Shukla
Yeah. In fact I think we are, you know, ahead of, you know, Nagar also in terms of acquisition. So public hearing is already done. You know, environment clearance is in process. Land acquisition almost. I think government land. We have already obtained some, you know, rehabilitation has to be done. So that there I think we are in the process of, you know, rehabilitating, you know, some of the people who are there on the land. Right. So Kutch, I think mining side of it. I think we are almost through.
Kamlesh Bagmar
Okay, thanks. Thanks a lot, sir.
Arun Kumar Shukla
Thank you.
operator
Thank you. Before we take the next question, a final reminder to participants that you may press star and one to join the question queue. Next question is from Shravan from Dalit Capital. Please go ahead.
Shravan
Hi sir. A couple of questions and clarifications. Sir. First, Durgac expansion you said clinker is there and obviously 1.2 million ton grinding will be there at those. But 1.2 million ton you said Madhubani. I think it was Pragraj which will come faster. Correct me if I am wrong.
Arun Kumar Shukla
I think these two sites are ready almost in terms of, you know, land acquisition. So both the places I think we have, you know, plant land is in place in case of Madhavani. We already had this public hearing and we have applied for Tor and environment clearance. We are going to take now very quickly. Right. So Madhubani is ahead of Prayag as of now. So that is what we mentioned that Madhubani may come, you know, little earlier than. Earlier than prayer.
Shravan
Okay.
Arun Kumar Shukla
Yeah.
Shravan
Okay. So Madhu Madhubani to be to be start by this March 26th and then the Pragraj and Patra both will come by March 20 or will the possibility will both come by September.
Arun Kumar Shukla
Will come around, you know, the 28th of March. Right. And along with Durga at least you know, Durga grinding station along with clinkerization and one grinding station by March 27th.
Shravan
Okay.
Arun Kumar Shukla
You know, mid of, you know, March 27th and March 28th will have maybe September October kind of thing event.
Shravan
Okay. Paragraph would be a September October next year. Okay, got it. Second sir, a couple of data points. First, what was the capex in the Q1 and what was the RMC revenue?
Sudhir Bidkar
RMC capex Q first quarter was about 100 crore. And separately out of 144 you wanted the RMC was about 70. 70 crore.
Shravan
Okay, 70 crore. And sir, in terms of last time we said in terms of the cost reduction 120 odd rupees per ton for next 12 to 18 months. So that still remains intact.
Sudhir Bidkar
That still remains intact. Yeah.
Shravan
Okay. Okay, got it. And in terms of the despite that we have done 100 odd crore capex we are. We are kind of a confident that this 1500 crore capex we will be able to do in 1400 odd crore in this remaining nine odd months.
Sudhir Bidkar
Yeah, yeah.
Shravan
Okay. And sir, just up two things wanted to clarity now as we restated the tax particularly and the pat because of the UCWL merger is it possible to share the tax for Q2 and Q3 of FY25 or maybe a pat number.
Sudhir Bidkar
Tax you wanted to know tax. We have already switched over to the new tax regime so whatever profit we have going to have in subsequent quarters we will have to pay 25 point odd percentage as per the new text regime on that.
Shravan
No, no, that that I understood what I’m trying to say. For FY25 we have restated the console tax and pet number. So Q1 and Q4. FY25 we have the number with the results but Q2 and Q3 if possible if you have. If you can share would be a helpful.
Sudhir Bidkar
For the past. Yeah, for FR 2525 I can separately provide. I don’t have readily for the four quarters as of.
Shravan
Okay, okay. And just. Yeah, no issues. And just one thing wanted a clarification sir, did we organize a plant visit in this quarter for bicycle?
Sudhir Bidkar
Yeah, Mr. Weber had advertised a lot or that plant is invited the participants to go for the plant visit. He had organized that.
Shravan
Yeah, because it was not bad announced on the exchanges. So that’s what just wanted a confirmation.
Sudhir Bidkar
It was put there. I’m not sure. Mr. Weber had talked to various people whom he thought was he had spoken to I think all the institutional players. So obviously I maybe you Mr. Must have missed it out others had been able to join.
operator
Thank you. Next question is from Nidhi Hashija from Goldman Sachs Asset Management. Please go ahead.
Nidhi Hasija
Yeah, hi sir. Congratulations on the good set of numbers. So just one clarification on the dirt plant. Our capex number seems to have increased from 2500 crores to 3000 odd crores. Can you let us know what led to the capex increase in 1/4?
Arun Kumar Shukla
There were certain additional equipment we had talked of which were not earlier including the triplex etc. Plus some cost escalation going forward. That was about one year back that we had estimated it. So normative.
Nidhi Hasija
Okay, understood. Thanks.
Arun Kumar Shukla
Thank you.
operator
Thank you. Next question is from Milan Ragnar from Bob Capital Markets. Please go ahead. Hello.
Arun Kumar Shukla
Yeah Milan, please go ahead. We are able to hear you now. Earlier you were not able to put your.
Milind Raginwar
Thank you sir for this opportunity. First question is what what will be the cement revenue for the quarter and. The base quarter.
Arun Kumar Shukla
We have given separately. For 144 for the the value added product. So remaining is all cement and the Corresponding quarter was 132 crores.
Milind Raginwar
Okay sir. And the second question from my side would be the freight cost on a per 10 basis that is showing some escalation. Any specific things that you want to. Call out on that as to why. Would that be on. On an inflationary site?
Arun Kumar Shukla
Yeah, I think that’s what I mentioned in fact before, right? Yeah. So it has gone up little bit. If you look at water flow loop lead was 393kilometer. It has gone to 3. And the reason I mentioned that we are trying and we are in fact seeding those markets where we are going to be present in the coming maybe a year or year and a half. So we have started kind of feeding those markets and creating our brand awareness so that once we are you know we have plant there then we can quickly ramp up.
So that is why it has gone up to you.
Milind Raginwar
Okay. That is the only specific reason the increase in the lead is the only reason for the increase in the logistic cost. Is that is that what we should think?
Arun Kumar Shukla
I think is all intact.
Milind Raginwar
Okay. Okay. And any specific. Reason we seeing the other expenses, you know on a higher side again on a year on year basis.
Sudhir Bidkar
That is basically because of the increase in the volume. It is not 100% fixed cost with the volumetric increase. It is there.
Milind Raginwar
Okay. There is nothing specific beyond a volume side that we have something loaded in. The June quarter in terms of expenses.
Sudhir Bidkar
Yeah.
Milind Raginwar
Thank you sir. Thanks. Thanks.
Sudhir Bidkar
Thank you.
operator
Thank you. Next question is from Uttam Kumar Srimal from Access Securities. Please go ahead.
Uttam Kumar Srimal
Yes sir. Thanks for the opportunity and congratulations on a very good set of numbers. My question pertains to a total date profile. So what. What is the consolidated cross date currently?
Sudhir Bidkar
That is there in our presentation which we have uploaded on the website.
Uttam Kumar Srimal
Sir, that is standalone you have given.
Sudhir Bidkar
Now it’s. It is consolidated because now UCWL has merged. So there’s nothing called standalone. Consolidated is all together.
Uttam Kumar Srimal
Okay. And sir, how much data we are going to take this year to finance the Expansion project.
Sudhir Bidkar
Sorry, come again.
Uttam Kumar Srimal
How much did we are going to take this year to finance this ongoing?
Sudhir Bidkar
We have talked of a capex of about 1500 crores in the current year. For that we may take thousand crores additional debt in this year.
Uttam Kumar Srimal
Okay, okay. And sir with regard to pricing, how is the current pricing compared to quarter one 526 prices?
Sudhir Bidkar
So pricing more or less stable but non trade has gone down little bit in some market like in case of north and even in east west you know trade and non trade both prices have gone down little bit. So prices have gone down little bit than what we had last quarter. And if you compare this with exit then yes at least two zones I see that prices have slid a bit.
Uttam Kumar Srimal
Okay, okay. And with regard to premium cement this quarter it has come down to 23% compared to 25% last quarter. So where do you see the premium cement are going this year?
Sudhir Bidkar
Come again?
Uttam Kumar Srimal
Sale of premium cement has come down this quarter compared to last quarter as a percentage of overall trade sales. So where do you see the percentage of premium cement as a percentage of trade sale going this year?
Sudhir Bidkar
So our target is to reach to minimum, you know, 27% plus premium cement. Right. And what happens is when your volume goes up then in that proportion in I told you that in some market where we have ventured into we have sold base product and that is why premium percentage has gone down. Right. But in all those markets where we are their core market our premium proportion is intact. But newer market, I told you that up east market and part of central market where we have gone premium product has not done that well. But nevertheless I think our plan is to take it to 27% by end of this year.
Uttam Kumar Srimal
Okay, that’s all from my side and wish you all the best.
Sudhir Bidkar
Thank you. Thank you so much.
operator
Thank you. Next question is from from Investec. Please go ahead.
Parth Bhavsar
So I had just one question. This cost savings of 100 to 120 rupees per ton can you like tell us like from what and which initiatives like be it like renewable energy or whatever. So what sort of capex are we putting in and how would the renewable energy move in terms of capacity over over what period or if there are any other levers as well.
Arun Kumar Shukla
Renewable we are there at 49% now and we do have plan. Wherever we have possibility we are enhancing that like in Gujarat and in Rajasthan we are improving our renewable portfolio and we see that, you know our renewable portfolio will go around 52% in this year. So this is one initiative of course I think is going to give us some kind of saving. Second I told you that TSR or AFR which we are using in our integrated units. So from there also we are going to have saving and third on manufacturing area we are initiating some AI led initiatives in our manufacturing process.
So we will have some saving and power and fuel also once we deploy that. So I think this is in the manufacturing area and on top line I told you that further consolidating our newly rejuvenated brand which we call you know Green plus. And of course I think just now I replied on premium products. So that is another area on top line improving price positioning further. So that is the third one. So these are the initiative on top line part of it. And of course I think supply chain remains a constant factor whenever it comes to drive efficiency.
So there also we have planned to further improve you know our direct dispatches kind of, you know work on different modes of transportation to reduce distribution, cost reduction of leads. So this is what the initiative which is in our site in case of supply chain. So These are the three major areas where I think where from this 100 plus saving is going to come in the next 12 to 18 to 24 months time.
Parth Bhavsar
Okay sir, that was my question. Thank you so much for answering.
operator
Thank you. Next question is from Amit Morar ka from Access Capital. Please go ahead.
Amit Murarka
Yeah hi. Thanks for the opportunity again. So just coming back on Capex so you mentioned like I think 1500 crores say 1800 and then 1500. So like could you also provide a split of it like between Durg and northeast. How will that be split?
Sudhir Bidkar
Basically we are Talking of about 3000 crores of Durg and balance will be northeast other than about 70 to 80 crores every year.
Amit Murarka
3,000 crores over next two years or three years.
Sudhir Bidkar
Yeah, three years.
Amit Murarka
Three years. Okay.
Sudhir Bidkar
And so we started acquiring land both at Nagor and Kutch. A bit will go in there also.
Amit Murarka
Sure. Why? Answer is because northeast Watt and stand is still going to take a bit of time to figure out but like. So therefore
Sudhir Bidkar
that much of time it. Is almost there now. So that this CAPEX number which we have given for the three years includes three basic things. One the Durga expansion to the northeast and three the land acquisition at Nagar and Kutchpur and been other normative maintenance capacity.
Amit Murarka
Okay sure. Also lastly like I don’t have the number of FY25 like what would have been your split for clinker and Cement sales in FY25 25 for full year FY25. How much was the clinker sales that you had done.
Sudhir Bidkar
For the full year total? We had done 121 lakh tonnes. Out of that, 7 lakh was the linker. Balance was ultimate.
Amit Murarka
Okay, got it. Thank you so much.
operator
Thank you. Next question is from Ritesh Shah from Investech. Please go ahead.
Ritesh Shah
Yeah, hi sir, couple of questions. First is for the east expansion. Do we have any incentives in place?
Arun Kumar Shukla
Yeah, so east also they have some incentives. So since we are in the initial phases of our preparedness, so we are going to approach two governments so they do have some incentive and we’ll try to obtain some customized package also if possible.
Ritesh Shah
Okay, answer my basic question.
Arun Kumar Shukla
Yes, yeah, yeah, go ahead.
Ritesh Shah
Sorry sir, carry on. Sir,
Arun Kumar Shukla
please no so specific number I think I will not be able to put now once we approach them and then come back as to what we are going to get.
Ritesh Shah
Okay, sir, my second question is we have optionality in Northeast you indicated Nagor. We have a lease in Gujarat. We also have something in Madhya Pradesh. Sir, how should we look at it? So after Durg, what is it that we are looking at? Is it Northeast, then Gujarat, then mp. What is the thought process and if you could marry your answer with the limestone lease expiries that we have specifically in Rajasthan? I do understand that we have won leases in Nagor, but I think the premium over there is quite steep. I think similar thing is also for probably for Central India as well.
So sir, how are you looking at incremental growth and how are you marrying it with the cost curve increase that we’ll potentially see broadly?
Sudhir Bidkar
You have answered your question. In your question only, you are right. We are first targeting Durbi expansion, followed by Northeast, then Kutch and then Nagar in that order.
Ritesh Shah
Okay, answer on the lease expiry, how should one understand.
Arun Kumar Shukla
Will go for Reoxin in the year 2030? Right. So this is one thing which is there and couple of years later Udaipur also. But this is the phenomena for all, you know, across India. You know that. So a lot of mines are going for reoption in the year 2030. Right. So one of our mines of course I think is part of that. So yeah.
Ritesh Shah
Okay, so just a simple follow up. So would it be possible for you to quantify how much can be the peak cement and clinker capacity first in Northeast, then in Nagor, then in MP and then in Gujarat. Just trying to appreciate the growth pipeline that we have which can unfold over next five years, 10 years.
Arun Kumar Shukla
We are starting with the Durg where we Going to add about 2.3 million tons of the clinker and 4.6 cement. We are in next quarter we will be able to definitely for sure will be able to tell what will be the size to start with at the Northeast. And as regards the Nagor and Kutcher they are still far away but around 3, you can broadly say 3 million each for Kutch and Nagore. Now Northeast is the only thing which we need to finalize on the exact size of both the clinker as well as the grinding capacity which hopefully we’ll be able to to form it up by next quarter.
Ritesh Shah
Sure sir. This is very helpful. Thank you so much.
Arun Kumar Shukla
Thank you.
operator
Thank you. Due to time constraints we’ll be able to take one last question. We take the last question from Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Just a follow up question. You mentioned in the press release there was this expansion cost increased to from 2,500 crore to 3,000 crore.
Sudhir Bidkar
Yes.
Rajesh Ravi
Any specific reason? Because we don’t see any consumer any increase in the capacity.
Sudhir Bidkar
As I mentioned in response to query from earlier question we had was some additional equipment like triplex etc. 2 We have also added railway siding at the three ending units which was earlier not part of that.
Rajesh Ravi
Okay.
Sudhir Bidkar
That is the why it has gone up from 2500 to 3000.
Rajesh Ravi
Okay. So that will only increase the efficiencies of these assets. Right. And when you mentioned the total project capex for next year around 4800 crore. I understand 3000 crore is being year marked for the eastern expansion. Okay, expansion. And if I look at maintenance it would be close to 300 crores. And how much you are factoring in for the the two land, you know land acquisitions at Nagor and Surat and how much we have already spent for the Northeast.
Sudhir Bidkar
Is already there. So it will announce. So Nagor and Kutch may be there. So that may be not for very high figure balance would go for the Northeast.
Rajesh Ravi
Okay. And how much we have spent for the northeast project till FY25. Not northeast. Sorry, not Northeast. East. East project.
Sudhir Bidkar
East project for the. Yeah.
Rajesh Ravi
Out of 50,000 I didn’t get you.
Arun Kumar Shukla
70 to 80 crores. Only.
Rajesh Ravi
Only 70 to 80 crores. Okay. And Northeast whatever you have just paid to 130 odd crore is.
Arun Kumar Shukla
About 80, 90 crores on land on that we have already done. Yeah.
Rajesh Ravi
Okay great. That’s all for my end. Thank you. Thank you.
operator
Thank you very much. We’ll take that as the last question. I would now like to hand the conference. Back to Mr. Vaibhav Agarwal for closing comments.
Vaibhav Agarwal
Yeah. Thank you. On behalf of Philip Capital India Private Limited, we’d like to thank the manager, JK Lakshmi SM for the call. And also many thanks to Parts for joining the call. Thank you very much. Sir, Revo may now conclude the call. Thank you.
Arun Kumar Shukla
Thank you.
Sudhir Bidkar
Thank you, Mr. Vaivo. Thank you.
operator
Thank you very much. With that, we conclude the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.
Sudhir Bidkar
Thank you.