JK Lakshmi Cement Ltd (NSE: JKLAKSHMI) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Arun Kumar Shukla — President and Director
Sudhir Bidkar — Chief Financial Oficer
Analysts:
Unidentified Participant
Vaibhav Agarwal — Analyst
Amit Murarka — Analyst
Amit Murarka — Analyst
Rajesh Ravi — Analyst
Pratik Kumar — Analyst
Shravan Shah — Analyst
Mudit Agarwal — Analyst
Uttam Kumar Srimal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to JK Lakshmi Siemens quarter and year ended. 31st ladies and gentlemen, good day and welcome to JK Lakshmi SiemENS quarter and year ended 31st March 2025 earnings conference call hosted by Philip Capital India Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Vaibhav Agarwal from from Philip Capital India Private Limited. Thank you. And over to you Mr.
Vaibhav Agarwal — Analyst
Yeah, thank you Michelle. Good evening everyone. On behalf of Philip Capital India Private Limited we welcome you to the Q4 and FY25 call of JK Lakshmi Cement Limited. I need to highlight that J 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 Tupla President and Director and Mr. Sudhir Vitkar, CFO at JK Lakshmi Cement. I would like to mention on behalf of JK Lakshmi Shimmer 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 based on current management expectations.
These statements are subject to a number of risks, uncertain entities and other important factors which may cause actual developments and results to differ materially from the statements made JK Lakshmi Cement Limited and the management of the company assumes no obligation to publicly alter or update the forward looking 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 Lakshman Cement for their opening remarks. Thank you and over to you first.
Arun Kumar Shukla — President and Director
Yeah, thanks Vavo. And good afternoon to all of you. You must have seen the result, our quarter four result and the result for the whole year. So before we take questions and answer, just to give you a very, you know, brief about how things have really progress during this entire year. As you know industry wise, quarter one, quarter two was not good because of the reasons all of us know post election and then followed by cyclicity which we have in the cement industry, things started improving in terms of, you know, demand and also in pricing.
Quarter three, latter part, quarter three onwards and as we speak today I think demand wise, yes, things are better, better than quarter Two better than quarter one even. And going forward also we see that this year growth is going to be about 6.5 to 7% though our plan is to grow higher than the industry growth this year. So this is on a kind of macro situation of the industry. If you look at other drivers of demand, I think post general election, yes, now traction is increasing in terms of the capex which government has announced during this year budget.
And in fact we also see traction in other segments like housing, be it rural or urban and even in industrial and commercial. So demand drivers also looks to be better. Initial estimation was that the demand will grow by at least 7.5 to 8 percentage rate. But what we estimate is going to be about, you know, 6 to 7% or 6.5 to 7%. That is what we see as an organization. As I said before, I think we have been working on working on improving efficiency internally of course on top line part of it and also the cost base for the cost line which we have on top line as I had mentioned during last quarter call also that brand rejuvenation exercise now we have completed and the initial indication of the feedback which we have from the market is quite encouraging.
The Green plus product which we have launched has been received quite well in all markets where we operate. So this is a good news for the organization. And this brand rejuvenation exercise was all about kind of coming up with a brand with new value proposition, new look and feel which really kind of, you know, amenable to customers requirement. And our premium product also is doing quite well. So Pro plus remains to be our flag bearer in terms of our product or the brand proposition to our customers. So Proplus has been doing quite well and our focus also was there to improve proportion of premium cement in our overall portfolio.
Similarly I think our effort also has been to improve on trade part of it. But as you know that because of this infra growth and other drivers also growing little fast. So non trade is going to be quite substantial and we don’t want to lose that opportunity also. But nevertheless I think our endeavor was also to improve upon trade percentage and last quarter has been good for us in terms of our trade volume which stands at about 60%. So this is on top line part of it. Couple of things which we have done and on other efficiency part we have been working on renewable energy, improving our thermal substitution rate, working on supply chain efficiency and particularly on upstream and downstream logistics.
All those things we have been working and perhaps I think the way we are progressing, I think I’m Quite happy that our direction is all right now. Definitely those things are going to really impact us in terms of the value at the bottom line. So this is what I think. I just wanted to give you a brief. Now we are open for question and answer. We have already seen our results so we can take questions whatever you want. Thank you.
Questions and Answers:
operator
Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask questions may press star and one on the touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press Star and one to ask questions.
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operator
The first question is from the line of Amit Murarga from Access Capital. Please go ahead.
Amit Murarka
Yeah, hi, good evening and thanks for the opportunity. So I just wanted to understand the status on the expansion. Like first thing is have equipment orders been placed for the kiln and the grinding units.
Arun Kumar Shukla
So the first part expansion I think as we told last time that Surat we are doubling our capacity by another 1.35 million ton. The first phase we are now taking trials, right? And soon we are going to commission and further projects which we mentioned that we are expanding our DUR capacity putting up a blinkering unit of landing facility at DUR and along with that grinding stations at Priyadh Raj and Madhubani in Bihar. So everywhere I think progress has been there. So in case of Prayagraj Madhuvani we have already acquired land and we have started the process like applying for TOR and then public hearing planning.
So all those things are happening in case of Durg. We have already had this public hearing in case of a plant, plant and mines. So that has already been done. Now we are waiting for environment clearance from MOGF which is accepted by any momentum in terms of you know, ordering of equipment and other things. We have already finally finalized the scope. We have already floated the tender. But as far as you know, ordering of equipment goes that has not yet been done.
Amit Murarka
So soon enough will the orders be placed?
Arun Kumar Shukla
Yeah, we’ll update you. I think as soon as that happens. So I think we are on track in terms of our activity plan which we have. Right. Sequentially we are moving. So as I told you, the major hurdle in case of, you know, going outside our existing premises. That is land. So that we have been successfully kind of, you know, acquired land in these two places where we are going to put up our granting station.
Amit Murarka
Sure. What is the latest timeline for these expansions?
Arun Kumar Shukla
So in case of Durk, our timeline is 27. FY27. Mr. Vidkar. Right. So FY27, this is what the plan.
Amit Murarka
Okay. And some of the greenfield grinding units will come a bit later. What I understand.
Arun Kumar Shukla
Yeah. So I think we. We gave you that, you know already. So Greenfield is going to come even before. Right. So this is what the plan is.
Amit Murarka
Right.
Arun Kumar Shukla
They know. Madhubani, we already had this in a public hearing. Right?
Amit Murarka
Okay.
Arun Kumar Shukla
We already applied for tor. Now we’ll have the next step is, you know, public hearing. So those activities will happen.
Amit Murarka
Sure. So assuming that those comes at your FY27 end. So in that case you are won’t you have clinker capacity constraints? I believe you will be at 88% or so utilization on clinker right now.
Arun Kumar Shukla
So we have some excess capacity with respect to our, you know, branding capability in nist. So. But not much. Right. So whatever we have, I think we can definitely kind of commission one grinding station to start with.
Amit Murarka
I’ll come back in the queue. Thank you so much.
operator
Thank you. You may press star and want to ask questions. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi sir. Good evening. First the housekeeping questions. What is the RMC and the non cement revenues for the quarter?
Arun Kumar Shukla
For the quarter. Just.
Rajesh Ravi
And also how much was the margin for the non cement revenue?
Arun Kumar Shukla
The 151 crore non cement revenue. Right.
Rajesh Ravi
Okay. And RMC?
Arun Kumar Shukla
RMC is 75 crore.
Rajesh Ravi
Okay. And sir, what was the margin for the non trade? 151 crore EBITDA margin on the same.
Arun Kumar Shukla
3%.
Rajesh Ravi
3%. Okay. Also what was the fuel cost per kilocal and the green power consumption trade and non trade sales trading you mentioned 60%.
Arun Kumar Shukla
Yeah, so 60 I already mentioned. So your fuel cost you are asking? No.
Rajesh Ravi
So it’s one fuel cost in Q4. Yeah.
Arun Kumar Shukla
1.53. 1.5. Consolidated 1.53.
Rajesh Ravi
1.53. And blended cement share was how much? Sir. And green power 65. And green power console consumption power is 50.
Arun Kumar Shukla
Sorry, 50%.
Rajesh Ravi
6 0.
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Rajesh Ravi
Okay? Okay. And two more questions sir. If I look at your realization sequentially it is up by 7%. So is there any change in the product mix or the regional sales mix? Because I see there is a significant jump even in Your freight cost versus 1130 or this is almost up by 8090 rupees Q on Q. So was there any geo mix? Which is why your realization and freight cost both are higher.
Arun Kumar Shukla
So as I said that because of demand improvement I think price is also better in some geographies little far from our plant. Because you know that was making sense to go because of the margin was better. Right. So that is one. But no, there is no significant change in our geomics as such. Right.
Rajesh Ravi
Why was the freight cost so higher Qualcomm when diesel prices and all have been. You mentioned that there was some increase in lead distance. Basically how much was the lead distance then?
Arun Kumar Shukla
Yeah. So lead was 393 kilometer last quarter. And as you know that we had a outsourced grinding station in UP East. Right. So we discontinued that and we started supplying those markets from our existing plants. So that is why lead has gone up because we are serving those markets. Anyway we are going to come in that market. Prayagraj is going to come maybe you know a year down the line. Right? A year, year and a half down the line. So we are still continuing with that market and that supplies are going from our existing plant. And that is why lead has also gone up to an extent.
Rajesh Ravi
Okay. So sequentially from 38393 kilometers at around 1012 kilometers there was a lead increase. Yeah. 10 kilometer or sequentially?
Arun Kumar Shukla
Yeah.
Rajesh Ravi
So this sequential improvement. I’m just coming back to this realization. If you could give some more color. Was it like earlier? Last quarter the discount structure was higher for you and this quarter because what we understand north prices in general have increased by 3 to 4%. East has increased by 5 to 7%. But east your volume share is much Lower on a total sales mix basis. And even Gujarat market where you are heavy, that would also have seen 3 to 4% increase. So how come your reported realization sequentially is up by 7%.
Arun Kumar Shukla
This is what it is in front of you. So there is no change in discount, right? So discount we cannot change in between. Because you commit your dealers for the discount for the whole year. So last quarter you cannot change. This is only about the price increases happen because of the demand improvement in various geographies, right? Maybe I think we have optimized better like you talked about. East, right? East our presence is very limited. We are there in Chhattisgarh and neighboring states only. And maybe other players are there everywhere. So we have done better geomics and with support of price increase that has given us the realization input.
But there is actually just in the discount.
Rajesh Ravi
Great. So now assuming the what we understand that prices have either flattish or marginally better in Q1 versus Q4. So your reported realization in that sense should be flattish or improve in line with the market. If this is a normal realization in Q4.
Arun Kumar Shukla
Sorry.
Rajesh Ravi
No, no, no sir. Q4 versus Q1. Given that prices have sequentially improved or are flat ACE. Should we expect that your realization should also move in line that way? Assuming that There are no one offs or any, you know, different reporting in Q4 numbers.
Arun Kumar Shukla
I do not know why you are mentioning one off. I am not too sure about it. But what I know is I think the way industry will improve will go along with that. No, it’s upward or downward. Whatever. Yeah,
Rajesh Ravi
maybe if you could give some color on sequential which market. How much was price increase for you on a like to like basis on a broadly like North Gujarat and east three key market. What was the price increase Q and Q for you broadly? If that would be helpful.
Arun Kumar Shukla
I think I’ll give you maybe after this call. I do not have breakup.
Rajesh Ravi
No issues.
Arun Kumar Shukla
Also geography if you want.
Rajesh Ravi
Great, great. So that will be quite helpful. And lastly, on the Capex front, you mentioned that the Durga plant is expected. I did I hear correctly that Zurg plant would get commissioned by end of FY27 clinker unit?
Arun Kumar Shukla
I would say quarter three. You can take quarter three around.
Rajesh Ravi
So given that you know, AC is still awaited, equipment ordering is still awaited. By the time it is going for trial ramps and all. Would it not be by end of FY27?
Arun Kumar Shukla
Any quarter they see means a month here and there. That happens. Okay. But the way I see today, I think it looks at, you know, quarter three will be able to commission.
Rajesh Ravi
And so this railway siding and conveyor belt projects, what are the status on that and what Is the total capex for FY26 and 27? One should look at.
Sudhir Bidkar
The already done part now Some deposits have to be made there for the railways and the bsp. So on that basis we in this year last year actual capex was about 330300 crores as far as JK Lakshmi is concerned and then about 250 for the UCWL remaining was spent. So 300 plus 250, 550 was the total capex including and in northeast we did about 50 crores. As far as next year is concerned we are expecting a capex of about 1100 crores in JK Lakshmi including for the Durg expansion and 150 for the Northeast project. And maybe some small 40, 50 crores of payment left for the Udaipur.
So maybe to all taken together including the subsidy about 1300 crores.
Rajesh Ravi
Okay. This would include maintenance and all.
Sudhir Bidkar
Yeah, this includes that.
Rajesh Ravi
Okay. And for 27 how much would be pending? Sir, how much would you expect?
Sudhir Bidkar
We expect thousand for JK Lakshmi, thousand crores and 800 for the Northeast. That’s all. 1800 would be there.
Rajesh Ravi
1800 four. Okay, 1300 for FY26 and conveyor belt. Sir, what is your status expected in Q4.
Sudhir Bidkar
the last leg? We have been saying that for last two quarters some final approval from the ministry is required. The board the BSP has already recommended. So it should come any moment that we have been saying. I know for last one or two quarters but hopefully it should come and thereafter almost eight, nine months to get it commissioned. It will require a capex of about 70, 80 crores additional from whatever has already been incurred which is included in the figure which I mentioned to you.
Rajesh Ravi
And this year expecting this to be. Finally operational
Sudhir Bidkar
By March of 26 it should be in place. Hopefully if everything falls in play the way we have been working on that.
Rajesh Ravi
Understood? Understood. Great sir, I’ll come back in queue. Thank you.
Arun Kumar Shukla
Thank you. Thank you. Thank you.
operator
Thank you sir. Participants, you may press star and one to ask questions. The next question is from the line of Pratik Kumar from Jefferies. Please go ahead.
Pratik Kumar
My first question is on your northeast project. Can you also update us on status there and what are the timelines for the rollout of capacity in that market?
Arun Kumar Shukla
Northeast project is not going as per the plan. That is slightly delayed one. So it is taking then the assets different style of working there. So we did not envisage that in the beginning. So there are hiccups I would say but it should be slightly delayed. I must say as we speak. I would say that slightly delayed maybe by about seven or eight months because we expected when we acquired this opportunity we expected the land to be in place within three months. So it almost took us almost a year to get the land. Having got the land then we have moved for the environmental clearance and all that.
Whatever needs to be done. There are some local issues, some political issues. So it is getting delayed. To put it in simple words we are off by about 7, 8 months.
Pratik Kumar
So is it commissioning by FY29 or something?
Arun Kumar Shukla
Internal expectation maybe next con call we should be able to give the actual so that once that environmental clearance and local issues are settled and that takes care then we should be have a clear visibility. I don’t want to commit a timeline. We were expecting something. I must tell you that there’s slightly delayed there.
Pratik Kumar
Okay. And regarding the quarterly performance peers like much more volatile versus some of the industry peers. Is this related to some cost attribution between the quarters or. Or the top line attribution related to incentives etc. Which explains the quarterly volatility in performance versus peers?
Arun Kumar Shukla
No, there is no such as such quarterly. This thing it’s based on the actual sales which happens and the booking of the expenses which takes place. We don’t shift any expense or for that matter any incentive any we don’t get. Frankly speaking we as of now we don’t have any incentives in any of the markets or the plants where we operate or states where we operate. Udaipur will start getting the incentive maybe from next year. So that will get factored in. So there’s no that quarter shift, quarter wise shift is not there for us as far as we are concerned.
Pratik Kumar
And last question on industry pricing. How is the pricing behaved in your markets since March?
Arun Kumar Shukla
Come again Market. Right.
Pratik Kumar
So how is the pricing. How is the pricing trend in markets your markets in smart exit. And is there I mean maybe in your markets monsoons have not arrived but in some other markets. So is there an impact of of that on. I don’t know if you’re in case. Your market
Arun Kumar Shukla
prices are almost flattish. Demand is yes better but prices have not gone up. Right. It’s almost flat in all the geographies where we operate like east part of west and north. Right. And what I see I think prices are going to be range amount till about you know definitely June or July because monsoon sets in in this part of India north little latter. Right. Maybe till about, you know, June, July things are going to be better in terms of demand and prices also will follow the same line. This is what I see.
Pratik Kumar
Thank you. Sir, this is one more question.
Arun Kumar Shukla
Thank you.
operator
Thank you. Participants please press Star in one to ask questions. The next question is from the line of Shravan Shah from Dalit Capital. Please go ahead.
Shravan Shah
Yeah, thank you. And congratulations on a good setup. Number sir, couple of questions are first clarification. 1.35 million ton Surat expansion. So how much it will be. So it was supposed to come in two parts. So the entire 1.35 will come by June.
Arun Kumar Shukla
No, I think it’s going to be in two parts. So June and September. This is what we said before. Right. So June will be commissioning half of it and around you know, September remainder part of it.
Shravan Shah
Okay. And second Durg one. So just to clarify again last time we said 2.3 million ton clinker and 1.2 million ton grinding at Durg and 1.2 grinding at Prayagraj. So 2.4 million ton grinding and a 2.3 clinker will be by September. But now this will be coming by the third quarter of FY27 and the second phase to commission in FY28. Is it right?
Arun Kumar Shukla
Yes.
Shravan Shah
Okay. Okay, got it. And a second on the couple of data points. So first if you can help us in terms of the console clinker sale in the third quarter of FY25, fourth quarter of FY25 and full year of FY24.
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Arun Kumar Shukla
You can send the mail. We will respond on mail from this question on the data.
Shravan Shah
Okay. And premium sir for this quarter was at console level was how much? 25, 25%. Okay. And the CC ratio for this quarter is similar. 1.45. 1.44. Okay. And so sir just to again a clarifying given what we are saying that the prices currently are stable. There is the the actual increase what has happened in the last quarter. If I remove the non cement revenue it is 8% QoQ increase in the realization so that likely to continue. And is there any further cost reduction from the Q group front? So just trying to understand that given the current profitability EBITDA per ton will will it continue in the in the Q1 onwards.
Arun Kumar Shukla
So if you take you know quarter four exit price exit I’m talking then from there I think prices are flattened. Prices have not flattened Gone up. And this is true for all geographies where we operate. So this is one. Right. And next part what you asked on.
Shravan Shah
The cost front, is there anything that are we looking at in the Q1? Obviously the operating leverage if the obviously the volume would be slightly lower versus Q4 in the Q1 so that we understand that some negative operating leverage. Apart from that there is as such no one off in the costing front. Also. So broadly the ebitda pattern that 976 odd rupees likely to be there at least in the Q1. Then obviously we’ll see the pricing how it moves.
Arun Kumar Shukla
Yeah. So I think prices are flattish cost. Yes. I think is not going to be, you know we see substantial increase in cost anywhere. Right. Okay. Yeah. Operating leverage will little bit go down because of the lower volume in quarter. So you are right. I think you picked up the right thing.
Shravan Shah
Yeah. And structurally in next one year in terms of or maybe two year in terms of the cost reduction, how much more one can look at in terms of whatever we are saying the RE power green share there also if you can mention from 50% where we can go in FY26 and whatever the logistic cost. Now all this how much more one can look at the per ton cost.
Arun Kumar Shukla
Reduction as I said during last quarter also that in 12 to 18 months time the plan is to reduce cost by about you know, 100 to 120 rupees. Okay. And that is basically, basically going to come from one of course, you know, increase in renewable energy proportion. So we have already reached 50%. And by end of this year I think we’ll reach somewhere around 52, around 53% kind of renewable energy proportion. So this is one lever which we have second continuously. We are working on thermal substitution. So all our plants Udaipur is little bit on lower side as of today because we have just started our AFR facility at Udaipur.
So that is going to give you know, some benefit. All other, you know two other two integrated unit we are already beyond 12 13%. Right. So that will maintain or even improve by a percentage. That is going to be some kind of, you know saving out of that also. So afr third of course I think logistics Rajesh was asking this, you know increase in our lead by 12 kilometer. We definitely will try to bring it back to about you know 380 level. So maybe 10 kilometer of you know reduction we see there as well. And fourth thing we talked about that green plus brand which we have launched.
So we have got a Good traction in the market. And probably also I think that will give us some improvement in price positioning. Improvement in different market. So these are the major I would say levers apart from all those efficiency parameters like heat value, you know, specific energy and other things we keep on working. That is a continuous process that will go on. So these are the major drivers I would say of this 100 to 120 rupees in next, you know 12 to 18 months time.
Shravan Shah
Got it sir. Lastly, because this non current financial asset which has increased from 60 to 66 odd crore in 1H and FY24 to 409 crore in FY25. What is this?
Arun Kumar Shukla
Sorry, come again. Can you repeat your question please?
Shravan Shah
Non current financial asset as on FY25 is 409 crore versus in 1H and FY24 it was 60 to 66 odd crore. So what is why SAP increase in. This
Arun Kumar Shukla
on this standalone or you are talking of console?
Shravan Shah
All console sir. Everything is on console.
Arun Kumar Shukla
Non current financial. Non current financial asset. Just a signal response 15. Yeah please. Now you can pose a non current financial asset from corner. From where? What are. What is the figure you’re talking of?
Shravan Shah
408.9 which is a part of others. So it is a third number.
Arun Kumar Shukla
Deposit with banks of about 300 crores.
Shravan Shah
Okay, so. So as on March the total cash.
Arun Kumar Shukla
If it is more than just hold on. If it is more than one year deposit then it has to be in the non current. But it is fixed deposit with banks that has gone up from 60 crores to 408. Primarily consists of these bank fixed deposits for more than a year.
Shravan Shah
So total cash and cash equivalent as on March is how much and net debt is how much.
Arun Kumar Shukla
Yeah, that I tell you.
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Arun Kumar Shukla
11001150 gross.
Shravan Shah
1150 is console cash.
Arun Kumar Shukla
Yeah. Yeah.
Shravan Shah
Okay. Got it sir. Thank you and all the way sir.
Arun Kumar Shukla
Thank you.
Vaibhav Agarwal
Thank you. You meant one to ask questions. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi sir. Part of my Questions you answered in Shavan’s queries. Just wanted to check on the cost saving projects again. You mentioned that you will be able to reduce or increase the green share slightly. But given that on an average for full year you are already at 48% in FY24. FY25. Sorry. And this would for full year you are looking. You are looking this to increase to 52%. Right?
Arun Kumar Shukla
Right.
Rajesh Ravi
So there in incrementally savings may not be large. And even on your freight lead distance you average that 380 kilometer in FY25. So you know even if you reduce by 10 kilometers this would save another say 30 to 40 rupees. So between these two programs maybe 50 rupees savings would come up. And TSR, how. How are you looking at what was it for full year and how much you’re looking this to go on an average for FY26.
Arun Kumar Shukla
On an average we look at about 12 to 13%. Okay, 12 to 13%. So average we are looking at, you know, 12% for this year. Right. This is what we are looking at. And current year May, since the year which has gone by it was at about you know 9, 6% in Udaipur. Yeah, 6 and 12 other around 9%. So 9% to 12%. That is what 3% TSR improvement. This is what we see as of today.
Rajesh Ravi
And this fuel cost 1.1.53. Are you looking this to remain stable in Q1 versus Q4 or because of the recent spike in, you know during Q4 we have seen a spike in Petco prices. So would that inflate your this Q1Q consumption cost? Fuel blended fuel cost only.
Arun Kumar Shukla
At least this quarter I think is going to be around that.
Rajesh Ravi
I’m sorry I missed that this quarter.
Arun Kumar Shukla
This Quarter one is going to be around quarter four only.
Rajesh Ravi
Okay. Okay. And thereafter do you see this number to be stable given the current prices, current level of prices and what was the petcock mix in your fuel, sir?
Arun Kumar Shukla
You know petcoke prices that has been quite volatile. Right. So what we do where whenever we have opportunity we kind of, you know try to buy at a lower cost. This is what we do. So as we see today, I think quarter one, quarter two I think is going to be around this only. Not much increase in this.
Rajesh Ravi
Okay. Okay. And this long term investor, sorry FD is booked under non current loans and advances. It is around 300 crore or 350 crore. You mentioned.
Arun Kumar Shukla
350 crore.
Rajesh Ravi
Perfect. This is what I was thinking. Okay. I think that’s all from my end thank you.
operator
Thank you. Please press star and one to ask questions. The next question is from the line of Mudit Thakar from Muthilal Oswal Financial Services. Please go ahead.
Mudit Agarwal
Hello. Am I audible, sir?
operator
Yes, yes, yes sir.
Mudit Agarwal
Just wanted to understand how much volume is coming from the outsourced branding unit. Is it still. We have some arrangements for that or the. The overall volume is pure decollection in the UCW volume.
Arun Kumar Shukla
Nothing is coming from outside. Nothing is coming from the outsourced program.
Mudit Agarwal
Okay, Understand. Thank you so much.
operator
Thank you. Ladies and gentlemen, this will be the final reminder and no further reminders will be given that you may. Please press star and one to ask questions. The next question is from the line of Uttam Kumar Srimal from Access Securities Ltd. Please go ahead.
Uttam Kumar Srimal
Good afternoon. And my question pertains to. Sir, you spoke about cost savings over 100 to 120 per to. So how much we have achieved during this quarter and how much will be achieving in FY26 and FY27.
Arun Kumar Shukla
So this 100 to 120 I mentioned about, you know, combination of FY26, FY27, 12 to 18 months time and the combination of levers. I’ll just once again comely tell you at one of the course is new brand which we have launched to improve in price positioning green plus which we have launched recently. This is one second further premiumization. We were at 25% last quarter. We want to take it further.
Unidentified Speaker
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Arun Kumar Shukla
Second third was a reduction in lead going back to about 380 kilometers average. And some of the actions had planned. One was on renewable energy going from 48 to about 52% and TSR improvement of about 3 to 4 percentage point. So this is what I think some actions which we have, you know, put in place. Right. And if you ask me that, you know, last quarter saving, I think all these, you know, parameters are gradually improving. So let’s say, you know, Trade sales was 50% last quarter. We ideally want to maintain this at this level.Right. So that also gives you some kind of operating leverage. Leverage for us combining all these things. I think really pointing out how much saving out of these actions in quarter four is a little difficult because some of the drivers are overlapping. I can give you that. But you have to give me some time. But what we see is that directionally if at all we are okay. So if at all my TSR is improving, renewable power is going up. My, you know, lead is kind of going down, right? Premium is going up. So that way I Think we can tell you that how much we have done in last quarter.Okay.
Uttam Kumar Srimal
Any plan to put up. Any new plan to put a plant in Gujarat. Because you have got some limestone mine over there.
Arun Kumar Shukla
Gujarat. Whatever. Come again please. I think I didn’t hear you properly.
Sudhir Bidkar
We have got those limestone mines at Kutch. So that option that will come. We are presently in the process of acquiring land. So it is three, four years away still.
Uttam Kumar Srimal
Okay. Okay. Okay. That’s all from my side. I wish you all the best. Thank you.
Arun Kumar Shukla
Thank you. Thank you.
operator
Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi sir, just one follow up question. Any volume guidance for FY26 please. And would be like how what is the ramp up? You’re looking at Udaipur.
Arun Kumar Shukla
So volume guidance as I said that industry. If that. Let’s say about six, six and a half percent. We are looking at you know 10% growth. The list this year.
Rajesh Ravi
10% growth. Okay. And sir, rapport volume would be console minus standalone for Q4. Volume.
Arun Kumar Shukla
Sorry.
Rajesh Ravi
For the airport cement. The volume would can be derived from console minus standalone volume numbers which you have given in the press release.
Arun Kumar Shukla
Yeah.
Rajesh Ravi
Okay. Great. That’s all from my answer.
Arun Kumar Shukla
Thank you. Thank you.
operator
Thank you. Ladies and gentlemen, this will be the last question for today which is from the line of Shravan Shah from Dollar Capital. Please go.
Shravan Shah
Yes. To small clarification, sir. For Northeast, that Agrani Cement we were supposed to pay a 200 odd crore by March. So have we paid that?
Arun Kumar Shukla
No, we have not paid that. We. We never said it is to be paid by March. We said it will be linked to certain stones. So that has not been paid. We have. Out of 325 crores consideration. We have paid initially to start with 125. 5 was additionally paid. So as of now we have paid 30. 130. I mean and nothing beyond that. And in response to some earlier question I had mentioned that there are certain issues in that project because of the style of working which we are not used to working in that zone or area. So there are issues. So it is slightly getting delayed.
There are local issues, some political issues and we are putting our foot down at the cost of. Even they are threatening to abandon the project and all that. But it is getting delayed that much as of now we can say. But we are not going to dance to their tunes the way their style of working is there. Which to our utter surprise we found is not the style where we are. We are used to Operating in other states. So it’s taking time and they are threatening we are putting our foot down and all that.
Shravan Shah
Okay. But. But the. The. The original plan in terms of the one million ton clinker and one and a half for grinding with a capex of 1800 crore that remains intact or is there is a possibility that is this will also further go up.
Arun Kumar Shukla
So this will not change issue are the initial hiccups which we are facing at the local level. That’s the issue. Once those local level things are sorted out then obviously we will follow the path which we had initially envisaged ourselves for this project. Initial local and political issues at that level is happening and we are taking a tough stand not adhering to their demands and whatever are their local issues.
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Arun Kumar Shukla
That’S why I said it is getting delayed. Land we have acquired there are some encroachment. All those loophole issues is taking slightly longer time than what we had envious. They are threatening us. We are putting our foot down not yielding to their demands and all that. So things are not moving the way we wanted the way we envisage. So and that’s the reason as to why whatever consideration it was good that we did not pay the entire consideration. Consideration up front. Entire 325. Otherwise that would have got stuck up. But as of now to start with we have paid only 125130 odd and have linked it to the achievement of those milestones.
That’s we are. We are taking a tough stand on that and not yielding to their pressures.
Shravan Shah
Got it. Got it. And sir, just a broader perspective. So let’s assume KK even if we add so currently 16 and a half million tons Surat 1.35 than this 4.6 Durg. So everything if we had it would be close to 22 and a half million or ton that we will be there by FY28 we are. We are saying that we will be reaching a 30 million ton by far 30 so additional 7 and a half million ton. So even if this Northeast maybe a 1 and a half million ton by FY29 if comes then also still we need a 6 million ton.
So we have to start spending maybe, maybe from next year onwards. So is there a possibility that this 30 million ton target can be moved to maybe a 3132 FY31 32 or any ballpark the range in terms of the capex would be the similar what right now we are doing 600700 odd crore per million ton. That’s the way one can look at.
Arun Kumar Shukla
We also have two greenfield plants, limestone mines for Nagaur and Kutch as I mentioned in response to some earlier question on Gujarat. So we would be. We are hopeful that they will be in place by then. So it’s too early to give up a deadline of 30 million by 30 30. Then there are other inorganic opportunity which keep coming up. So obviously our target remains to reach 30 by 30 even if Northeast as I mentioned is delayed and as you rightly said could be delayed. So without Northeast also it could be we will be able to reach Northeast as someone has an additional opportunity but without Northeast also will be able to reach 3030 as of now what as we speak.
Shravan Shah
Got it. And, and, and this UCWL amalgamation and in terms of the extra shares that six and a half million ton that will be done by this December. It will be done.
Arun Kumar Shukla
Yeah. We could be earlier than that additional share. Sorry, could not guess that.
Shravan Shah
So. So for minority stake of ucwl Jake is CL will issue the that forces for every 100 shares. So that roughly transferred to 6 and a half million says that we will be. Yeah, that hopefully should happen sooner than December. That is what as of now we are saying we are in final stages of hearing for the nclt. Once that is there it should be maybe not will not have to wait till December. I can tell you as of now it should happen sooner than that.
Shravan Shah
Got it sir. Thank you. And all the best sir. Thank you. Thank you.
Arun Kumar Shukla
Thank you.
Sudhir Bidkar
Thank you.
operator
Thank you. As that was the last question for today I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Thank you. And over to you sir.
Vaibhav Agarwal
Yeah. Thank you. On behalf of Philip Capital India Private Limited I’d like to thank the manager for the. For the call and also transport joining the call. Thank you very much.
Arun Kumar Shukla
Thank you everyone and thank you. Mr. Thank you. Thank you.
operator
Thank you members of the management. Ladies and gentlemen, on behalf of Philip Capital India Private Limited that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you. Thank you.