JK Lakshmi Cement Ltd (NSE: JKLAKSHMI) Q2 2025 Earnings Call dated Nov. 08, 2024
Corporate Participants:
Arun Kumar Shukla — President and Director
Sudhir Bidkar — Chief Financial Officer
Analysts:
Vaibhav Agarwal — Analyst
Nigel Mascarenhas — Analyst
Ashish kacholia — Analyst
Keshav Lahoti — Analyst
Rajkumar Das — Analyst
Amit Murarka — Analyst
Raghav Malik — Analyst
Sanjit Tambe — Analyst
Jatin Chhaparwal — Analyst
Uttam Kumar Srimal — Analyst
Shravan Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Earnings Conference Call for Quarter and Half-Year Ended 30th September 2024 of JK Lakshmi Cement Limited 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. [Operator Instructions] 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, sir.
Vaibhav Agarwal — Analyst
Yeah. Thank you, Michelle. Good evening, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the Q2 and H1 FY ’25 call of JK Lakshmi Cement. I need to highlight that JK Lakshmi Cement is also the holding company of its listed entity, Udaipur Cement Works Limited and therefore, this call is also open for discussion about the performance of Udaipur Cement Works Limited. On the call, we have with us Mr. Arun Kumar Shukla, President and Director; And Mr. Sudhir Bidkar, CFO at JK Lakshmi Cement.
I would like to mention on behalf of JK Laxmi Cement and its management that certain statements that we made or discuss on this conference call may be forward-looking statements related to future developments and which are based on current 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 the statements, whether as a result of new information or future events or otherwise.
I will now hand over the floor to the management of JK Lakshmi Cement for their opening remarks, which will be followed by interactive Q&A. Thank you and over to you, sir.
Arun Kumar Shukla — President and Director
Okay, Vaibhav, thank you so much and good afternoon to all of you. Welcome to this quarter two FY ’25 call of JK Lakshmi Cement along with Udaipur Cement Works Limited. Quarter two has been quite volatile, quite challenging not only for JK Lakshmi Cement, but overall industry-wise also. If you look at typically July, September is low in demand because of cyclicity and monsoon factor. But this time around, this was also coupled with a general election and really what happens after this general election, some kind of sluggishness which clips into the market.
So that triggered very low demand in different geographies. Perhaps I think all of you know that demand was quite subdued in the quarter two of this year. And because of various sluggish demand, there was lot of of pressure on prices also. My estimation or our estimation goes that prices have dropped by about 8% and this time around, I think drop has been quite substantial in case of East, West and followed by North. For a change at this time, drop-in prices in South and North were the least. So since our geographies are limited to Western part of India, part of it North and East, yes, I think there has been impact on us in terms of subdued demand and depressed pricing.
Nevertheless, I think, yes, of course, I think results would have been much better, but I think what we are really taking confident from is that wherever, whichever market we operate, we are holding on to the market-share. Like just to let you know, part of West, part of North and East where we are there, we sell about 70% of our cement and there our market-share is intact. And also price-wise also, we have done better than others. So that is what the — that gives us the confidence that directionally we are all right. Yes, there was pressure because of external environment, which we cannot control fully. But whatever we could have controlled, I think we have tried every bit to change that in our favor.
Just to give you a very brief of the performance of it. Of course, volume and all you know that our volume is down by about 9% on a consolidated basis. But leading indicator, if you look at, I think that gives us a lot of confidence that directionally we are all right. So trade, I think we are at about 53%, 54% quarter-wise. Blended cement is at 66%. Lead also, we have substantially reduced. Lead was at 374 kilometer, which is about 13 kilometer lower than last year same quarter.
We have done quite well in terms of renewable energy also. Renewable energy last quarter stands at about 40% and out of that about 20% is solar and wind. So that way, I think we are progressing very well. If you look at other performance parameter, variable costs on a consolidated basis, we have done better. We are lower by about 11% Y-o-Y basis. Overall cost also has been down by about 5%. Power was down by 9%, fuel by 22% and fuel cost was about INR1.62 per kilometer.
On TSR front also, we have done quite well. TSR was at about 13% and operating cost also was down by about 4%. If you look at EBITDA drop of top players in the industry, in last quarter Y-o-Y basis, that ranges from right from INR225 per ton to about INR400 per ton. And we also fall within that range only. We just kind of we get carried away if you look at percentage. I think whenever price drops, I think that similar kind of drop happens for every player, right? So our drop was also in-line with the industry.
And if you look at because we have also done comparison ourselves within the players who are there in our geographies because at times also we carried away looking at the — in the larger player who operates in different geographies. I told you that price drop in different geography was different this time. Overall drop was 8%, but our geography somehow I think for a change was little higher drop and that is what has impacted our EBITDA, right. But we are confident that I think directionally we are all right, leading indicators are flavoring us and I don’t see any issue going-forward also. Of course, I think there is also — always scope of improvement. And definitely, I think whatever levers we have on top-line or on cost front, we keep on working on that. And hopefully, I think we’ll bounce-back in this quarter and going-forward.
So this is what the brief update I just wanted to give you. And now we are open for question-answer.
Questions and Answers:
Operator
[Operator Insturctions] The first question is from the line of Nigel Mascarenhas [Phonetic] from Leo Capital. Please go ahead.
Nigel Mascarenhas
Good afternoon. Thank you for the opportunity. Couple of questions. Firstly, by when is the merger with Udaipur Cement Works expected to be completed?
Arun Kumar Shukla
Yeah. Go ahead with the second question.
Nigel Mascarenhas
My second question was by when do you expect the expansion in the East to be completed? And how much of capex will be spent towards it?
Arun Kumar Shukla
Yeah. To answer your first question regarding the approval and the completion of the merger, so the Board had approved the consolidation of the cement business by merging the three subsidiaries of JK Lakshmi on 31st July in their Board meeting. Thereafter the process is that we have to first approach the stock exchanges. And once the stock exchange — both the stock exchanges BSE and NSE give their approval, then they forward their joint recommendation to SEBI and only when SEBI approves it, then we can approach the NCLT. So that is the process while the approval from BSE and NSE together with SEBI takes anywhere between three to four months.
For us, the stock exchanges, as we understand, have forwarded their recommendation, cleared that application and have forwarded it to SEBI. SEBI, the BSE people and NSE people are chasing them, we don’t — can’t approach them directly and there have not been any queries there so-far. And we hope in the month of December, SEBI we would clear it hopefully. And thereafter will approach NCLT. NCLT, based on the past experience which different companies and different players have take anywhere between eight to nine months.
So as we have mentioned in our press release, which we put in and also the presentation which we have put in in the website after the Board approved the merger, anywhere in the second-half of the calendar year 2025, we expect that to be in place. Though we are trying to expedite it as much as possible, but things are not in our control NCLT take their own suite time, they are already overroaded with other cases, but we are trying to push it. And our endeavor would also be to do it as fast as possible. That is as far as the timing for the merger of UCWL is concerned.
Now your second question regarding the expansion in the East, yes, we have embarked on an expansion of 4.6 million tons of cement together with about 2 million to 2.3 million tons of clinker at our Durg plant and initially we’ll take up the Durg clinkerization along with the grinding unit in UP first and follow it up with the other two grinding units at the other location as we have mentioned. So somewhere in FY ’26-’27, we expect that to be on-stream, the first phase, which will include the clinkerization and half of the cement capacity follow in the next financial year by that.
Expenditure, we have not incurred much as of now on the Durg expansion. In the current year, we expect anywhere between INR100 crore to INR150 crore on that, primarily on account of some initial placement of orders, etc. And thereafter the pace of expansion as well as the capex will gather pace in the next FY.
Nigel Mascarenhas
Got it, sir. Thank you.
Arun Kumar Shukla
Thank you.
Operator
[Operator Instructions] The next question is from the line of Ashish from Himalaya Capital. Please go ahead.
Ashish kacholia
Yeah, afternoon to the management. So I had two questions. Firstly, why has there been a delay in the ramp-up of our expanded facility in Udaipur Cement Works? And secondly, what sort of utilizations are we seeing operating at — for both clinker and cement in the UCWL expansion?
Arun Kumar Shukla
Yeah, on the first question of ramp-up, we commissioned our grinding station at Udaipur on 28th of March. And as you know that this first-quarter was marred by general election and followed by this impact of cyclicity and sluggish demand, which I mentioned during my opening remarks. So that has impeded our progress a bit, but I think that now is taking pace and the way we see trend now, I think we are on right track and whatever plan we have for this year, hopefully, we’ll end-up achieving that.
Ashish kacholia
Sure, sir. On the second question, the utilization for both clinker and cement in the UCWL plant?
Arun Kumar Shukla
Yeah. So utilization just let me mention. So clinker utilization was at 83% and at Udaipur 58% and cement 65% JK Lakshmi cement and 37% of both the line put together, right?
Sudhir Bidkar
Yes.
Arun Kumar Shukla
Yeah. About 37% of Udaipur cement utilization.
Ashish kacholia
On consolidated basis?
Sudhir Bidkar
And consolidated basis it is 57%.
Ashish kacholia
Okay. Thank you. Thank you to the management.
Operator
[Operator Instructions] The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Keshav Lahoti
Hi, thank you for the opportunity. Sir, some data point, non-cement revenue and RMC in this quarter and what was the margin?
Arun Kumar Shukla
So non-cement revenue in this quarter was INR126 crores and margins were lower as has been generally, it was down to about 5%.
Keshav Lahoti
Okay. And how much is RMC in this?
Arun Kumar Shukla
Out of INR126 crores, RMC is I think INR66 crores.
Keshav Lahoti
INR66 crore. Okay, understood. Sir, firstly, this quarter our volume have degrown by 9%. So how our guidance stands, which was 8% for this year? And secondly, 9% de-growth should we assume the company has lost market-share? How you read it like it’s a regional thing or how should we read it?
Arun Kumar Shukla
Yeah. So first, I’ll address you the question which is your latter part of it. So none of the core market we have lost our market share. In fact, in some of the market, we have increased our market share. Now the volume growth which we talked about, I told you that prices were quite depressed. And some of the non-core markets where we were selling, I think it was not advisable to sell in those markets because we were going below variable growth, right? So that was a conscious call not to sell in those markets, but to kind of be consolidate in the market, which is our core market. And in those markets, we have improved market share a bit rather than kind of losing it.
So that was a conscious call not to sell in those far off market. And that is what is reflecting in our lead also. If you look at our lead was 374 kilometers, which is 13 kilometers lower than the same quarter last year, right. So that was a well thought strategy because had we sold in those markets just to go after the volume, I think we would have achieved a little better volume, but our losses would have been more. So that was conscious call not to sell. So that was on this 9% thing which you asked about.
Other than the guidance about in the next two quarters, I’ll just give you a industry estimate whatever our estimation is. Quarter one was almost flat industry-wise, all India-wise. Quarter two, we estimate that the growth is about 1% to 3%. Quarter three is estimated industry I’m talking about is about 4% and quarter four is going to be about 9% to 10% kind of thing. This is what our estimation is, right? And if you go by that, then overall all-India cement demand is going to be about 4% to 5% for a full-year basis, right. So two quarters, I think our endeavor would be to go in alignment with the industry growth that is what we see.
Keshav Lahoti
Understood. So tell me one thing, if I see your freight cost, which has increased sequentially by 50 per ton, why is that so?
Arun Kumar Shukla
Which cost?
Keshav Lahoti
Sequentially, I’m talking freight costs have increased by INR50 per ton. Q1 was INR1,040 per ton. This quarter it is looking INR1,085 per ton.
Arun Kumar Shukla
No, so sequentially year-on-year basis, it has gone up by about 4%, which is in alignment with the inflation, right, and I think that has gone up a bit up because of some amount of increase in clinker sale also, right. Lower clinker sales. Clinker what happens is stocks basis more.
Sudhir Bidkar
Yeah, yeah.
Keshav Lahoti
Understood. Got it. That’s it from my side.
Operator
[Operator Instructions] The next question is from the line of Rajkumar Das from Navodaya Enterprises. Please go ahead.
Rajkumar Das
Hello. Sir, my question is regarding your Conveyor belt project, which has been delayed for a long-time. Could you please update the current status of Conveyor belt at Durg plant?
Arun Kumar Shukla
Conveyor, you are talking about Durg pipe conveyor, right?
Rajkumar Das
Yes, sir.
Arun Kumar Shukla
Yeah. So as I said before that there are some approvals which are pending and that is on the last stage of approval. And so you know that government approvals, it takes a little bit more time and some of the things we cannot control. But we are actively working on that and hopefully, I think we’ll be able to resolve this very quickly. Yes, this is taking little longer time because of again elections is also one of the factors because entire machinery was not really that focused on those kind of jobs, which are not important for them. So because of that, this got delayed, but we are working on this. Probably I think we’ll have some solution very quickly.
Rajkumar Das
Okay, sir. That’s from my side. Thank you.
Arun Kumar Shukla
Thank you.
Operator
[Operator Instructions] The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.
Amit Murarka
Yeah, thanks for the opportunity. So firstly, I joined the call a bit late. So if you could just share the volumes for the cement and clinker at standalone and consol level?
Arun Kumar Shukla
Clinker volume for this quarter was cement volumes — cement sales was 17.82 lakh tons and clinker was 0.84 lakh tons. Total was 18.66 lakh tons.
Amit Murarka
17.82 lakh tons and sorry, how much?
Arun Kumar Shukla
17.82 lakh tons and 0.84 lakh tons clinker total 18.66 lakh tons.
Amit Murarka
Okay. And this is standalone, right?
Arun Kumar Shukla
Sorry?
Amit Murarka
So this is at the standalone level and what would be consol?
Arun Kumar Shukla
Yeah, this is certainly on a standalone level and on a consol basis, it is 23.60 lakh tons for the cement, 1.33 lakh tons linker and total 24.93 lakh tons.
Amit Murarka
So about the comment that you made that a lot of markets, your naturalization or few markets where naturalization…
Arun Kumar Shukla
So you are not audible please, you’re not audible a little louder.
Amit Murarka
Yeah. So on your comment which you made that in few markets, your variable cost was higher than the realization and hence you kind of did not participate in that market. So just wanted to understand like which markets would these be and like given that pricing seems to be staying subdued since quite some time, what is your strategy to combat the situation and get volumes back up again?
Arun Kumar Shukla
So our strategy is to reinforce in the market or the battleground which we have, and battleground for us is all those markets which are near to our plant, right. So we keep on reinforcing our position in those markets. And during quarter two also, we have done the same thing. So I think in all those markets our trade sales have gone up and overall market share also some — in some market it is intact and some market we have done better, right. And those far off market like I would say call them secondary markets is deep into Central India then UP, Eastern part of UP and those markets.
So there, I think we did not participate because our prices were not remumerative and realization were lower than even variable cost. So that was a concept. So those market I’m talking about. Otherwise, all those core market like Rajasthan, Gujarat, Eastern market,, Orissa, Vidharba part of it, Eastern MP and Western MP. These are the market where we keep on consolidating ourselves and that will keep on kind of effort will be further on to consolidate in these markets even better.
Amit Murarka
Understood, understood. And generally also a thought like I think one and a half years back, two years back, we had said that we are embarking on a journey of improving the brand in the market and improving that and realization as well. So how far have we moved on the journey and like if that could also help address this problem?
Arun Kumar Shukla
We have progressed quite far. And if you look at the EBITDA per ton difference between the leaders and JK Lakshmi Cement last year and even first-quarter also was reducing, right. So that has come about because of the actions which we took and which I elaborated in my previous calls, right? So on levers on top-line, on cost, which I mentioned some of them during my opening remarks. So that journey is, I would not say fully accomplished, but I would say definitely 75% we have accomplished, 25% yet to be done. The major portion is still, I think we are further working on brand and premiumization. So we are working on brand also regeneration also. Perhaps when — next quarter, when we meet, so I’ll update you on what actually we are going to do with the brand. So that is a very ambitious project, which we have already started and hopefully we’ll have some update during next quarter.
So I would say about 75% journey we have traveled and that has resulted into reduction in the gap between leaders and JK Lakshmi and about 25%, 30% still remains and that is not the final thing because we keep on exploring different avenues, different opportunities and we embarked upon them. And of course, I think digital also will help us to improve our efficiency further. And some of the plants, we have already deployed some AI tools and algorithm, which is going to improve our efficiency in different value chain in the operating plant.
So I think, 25%, 30% from the previous one. And even going forward, we will explore further all those avenues. We’ll just try to realize with technology, with our experience and equipment which we have within us.
Amit Murarka
Understood. Thank you. And also lastly, pricing, has it improved versus Q2 averages? What we are seeing now?
Arun Kumar Shukla
Our prices have improved a bit for sure. Prices have started going up from September. October was more or less stagnant, little bit upward trend. But now since post-Diwali, demand will improve, hence prices are also likely to go up. So definitely prices will go up once demand improves.
Amit Murarka
Got it. Thanks a lot. I’ll come back in the queue for more.
Arun Kumar Shukla
Thank you.
Operator
[Operator Instructions] The next question is from the line of Raghav Malik from Jefferies. Please go ahead.
Raghav Malik
Yeah, hi. Am I audible?
Arun Kumar Shukla
Yes, yes.
Raghav Malik
Yeah, hi. Thank you for the opportunity, sir. Just a few housekeeping questions actually. What would the premium product mix be? I don’t think you mentioned that and the premium product mix even as a percentage of just trade volumes.
Arun Kumar Shukla
So premium product proportion is about 25% on our trade sales is about 13% — 12%, 13% in the on an overall basis, right.
Raghav Malik
Okay. Okay, got it. And just on the cost side, the fuel cost per kcal this quarter, what would that be?
Arun Kumar Shukla
Fuel cost rupees per kilo cal you are asking?
Raghav Malik
Yes, yes.
Arun Kumar Shukla
It was INR1.62.
Raghav Malik
INR1.62. Okay. Okay. Thank you. That’s all from my side.
Operator
[Opertor Instructions] The next question is from the line of Sanjit Tambe from Centrum Broking Limited. Please go ahead.
Sanjit Tambe
Yeah, hi, sir. I just wanted UCWL volume for this quarter and previous quarter.
Arun Kumar Shukla
UCWL volume they did 5.74 lakh tons cement sale and 0.84 lakh tons clinker sale. And in the preceding quarter you wanted?
Sanjit Tambe
Yeah, yeah.
Arun Kumar Shukla
6.41 lakh tons was their cement sale and 0.9 lakh tons was their clinker, total 7.31 lakh tons.
Sanjit Tambe
Okay, thank you.
Arun Kumar Shukla
Thank you.
Operator
[Operator Instructions] The next question is from the line of Jatin Chhaparwal from Chapperwal Enterprises. Please go ahead.
Jatin Chhaparwal
Hi, sir. I have just one question. I need to know about the capex plan you are planning, what’s the stage of it?
Arun Kumar Shukla
Capex, as I mentioned in response to some earlier question, we are having two, three projects on hand. One is the Surat Grinding Unit. We expect that to be commissioned towards the end of this financial year, wherein we are adding 1.35 million capacity therein. And then there is Durg expansion, which will take two to three years therein. The Udaipur expansion is virtually complete, some small and slave jobs are left. So that is as far as the capex are concerned.
Railway siding project is on, so we expect that to be in place in the first-quarter of the next financial year. Partly we have already started using that sliding, railway sliding there at Durg.
Jatin Chhaparwal
Okay, thank you so much.
Sudhir Bidkar
Thank you.
Operator
[Operator Instructions] The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead.
Uttam Kumar Srimal
Yeah, thank you, sir. Thanks for the opportunity. Sir, what is our capex guidance? You just give the more — you just give the number of the capex. So just want capex guidance for FY ’25 and FY ’26?
Arun Kumar Shukla
Current year in — we expect we have done about INR175 crores in the first six months. We expect the — we in this year FY ’24-’25 for the full-year, we can do about INR500 crores, then INR700 next year, followed by about INR800 crores to INR850 crores in FY ’27.
Uttam Kumar Srimal
Okay. And sir, power and per kcal cost has come down to INR1.62. So do we expect more decline in the coming quarters or it will remain at the same level?
Arun Kumar Shukla
Around the same level it may be. We don’t see any substantial drop there in.
Uttam Kumar Srimal
Okay, okay. Okay, sir. That’s all from my side. Thank you and all the best to you.
Arun Kumar Shukla
Thank you. Thank you, Mr. Uttam.
Operator
Thank you. This will be the last question for today, which is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Hello. Yeah. Thank you. Sir, I think the capex you mentioned, it is for standalone. So on consol basis, in 1H, we have done INR440 odd crores. So for ’25, ’26, ’27 put together at consol level, what the capex are we looking at?
Arun Kumar Shukla
Whatever — you are right, whatever figures I’ve given is for the standalone. So we may have another INR200 crores for Udaipur, whatever INR500 crore has topped up for FY ’25 on a standalone basis and about another INR200 crores for the Northeast project. That is as far as in the subsidiaries are concerned in FY ’25. Going-forward, Udaipur may be not there maybe only INR30 crore, INR40 crore normal capex there, including some leftover of the expansion and another INR200 crore to INR250 crore for the Northeast project.
And thereafter in FY ’27, nothing for Udaipur, but Northeast may have about INR400 crores to INR500 crores.
Shravan Shah
Sorry, sir, I still want to tell you the number. For FY ’25, so INR500 crore is standalone plus INR200 crore Northeast, so put together would be a INR700 crore full at consol level FY ’25.
Arun Kumar Shukla
Another INR200 crore for UCWL you have to add.
Shravan Shah
Okay. So INR900 crores total.
Arun Kumar Shukla
Correct.
Shravan Shah
And for FY ’26 total would be INR700 crores standalone and Durg expansion would be how much?
Arun Kumar Shukla
So INR700 crores includes Durg expansion. Northeast, I said, when I say Northeast, that is the Assam project. The subsidiary. Not in the Durg. Northeast doesn’t mean Durg, it means the Assam project, which is in the subsidiary, right? INR700 crores includes expansion, right?
Shravan Shah
Okay. Okay. So Northeast in FY ’26 would be a INR300 crore you say?
Arun Kumar Shukla
Yeah.
Shravan Shah
Okay. And this Durg expansion, so just to clarify, first is Surat expansion, last time you said, we will be doing a 1.35 in half-half by October and March, but now we will be doing the entire 1.35 by March-end.
Arun Kumar Shukla
Yeah, around that.
Shravan Shah
Okay. And for Durge expansion, the first phase also previously we were looking to start by FY ’26, the clinker and to 2.4 million ton grinding. So now this will be…
Arun Kumar Shukla
Yeah, it may be spilling over to the first-half of the next financial.
Shravan Shah
And then the second phase would be in FY ’28?
Arun Kumar Shukla
FY ’20 — yeah, one year later.
Shravan Shah
Okay. Okay. And then the Northeast will also will be in FY ’28 will start?
Arun Kumar Shukla
Around that. You are right.
Shravan Shah
Okay, okay. And just a data point, CC ratio for this quarter was how much?
Arun Kumar Shukla
What ratio?
Shravan Shah
Cement to clinker ratio.
Arun Kumar Shukla
1.45.
Shravan Shah
1.45. And this RE share which is a 47%, so by March-end this will increase to last-time we said 50-odd percent, so that remains the same.
Arun Kumar Shukla
Yes, so we are citing we’ll be closer to 50% because we are still working on some of the solar projects. If that gets commissioned, then we’ll reach there.
Shravan Shah
Okay. And in terms of the overall consolable cost reduction at per ton basis, now how much one can look at?
Arun Kumar Shukla
So as I said, Shravan, yes, we are working on now one thing which is a big chunk is premiumization, which we are working on. So that exercise is going on and perhaps that will give us some good leeway. Apart from that, I think this operational efficiency is a continuous journey. So we’ll keep on getting something as we progress. So definitely, I see INR50 to INR75 a ton. That is what I see. INR50 to INR100 a ton moving forward [Technical Issues] different actions which will be taken.
Shravan Shah
Okay, okay. Then once, as you said in the second-half, we will be doing inline with the industry growth, but in FY ’26, will it — we will be growing much better than the industry growth.
Arun Kumar Shukla
That is what we wish, Shravan, because now till that — by that time, I think our capability improvement plan which we have taken for Udaipur expansion that will come in full force. So definitely our ambition, our plan is to grow faster than industry next year.
Shravan Shah
Okay. Okay. Got it. Thank you and all the best, sir.
Arun Kumar Shukla
Thank you, Shravan. Thank you so much.
Operator
Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Over to you, sir.
Vaibhav Agarwal
Yeah. Thank you. On behalf of PhillipCapital India Private Limited, I would like to thank the management of JK Lakshmi for the call and many thanks to all the participants joining the call. Thank you very much, sir. You may now conclude the call. Thank you.
Arun Kumar Shukla
Thank you.
Operator
[Operator Closing Remarks]