Star Cement (NSE:STARCEMENT) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to STARCEMENT Limited Q1 FY 'twenty seven Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to mister. You, over to you, sir. Thank you, Anushka. So good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY twenty seven earnings call of STARCEMENT Limited.

0:53 From the management, we have with us MD and CEO, Mr. Tushar Bhajanka and the company's CFO, Mr. Manojakarwal. So without any further ado, I hand over the floor to the management for their opening comments. Over to you, sir. Hi. Good afternoon, everyone. My name is Vishal Harinka, and I'm the MD of Star Cement. I welcome you all to the conference call of FY 'twenty seven quarter one. I would like our CFO, Mr. Manoj Agarwal, to give his remarks regarding the numbers, and then we can start with the Q and A. Thank you. Yes. Thank you, Tusharji. Hi, Frank. Very good afternoon. I, on behalf of STARCEMENT, welcome you all to our phone call for discussing our number of Q1 FY twenty twenty seven. I would like to clarify that we are discussing on the historical numbers, and there is no invitation to invest. Having said that now, I will just take you through the Q1 number. Starting from clinker production, during the quarter ended June 26, we have produced 9.10 lakh tonne of clinker as against 8.90 lakh tonne same quarter last year. So far as cement production is concerned, we have produced 13.08 lakh this quarter as against 12.31 lakh tonnes same quarter last year. Now I will take you through the sales volume.

2:15 During the quarter, we have sold 13.02 lakh tonnes of cement and 0.52 lakh tonne of clinker as against 12.22 lakh tonne of cement and 0.74 lakh tonne of clinker same quarter last year. This is as far as cement and clinker sale is concerned. As far as geographical distribution of cement is concerned, in Northeast, we have sold around 8.71 lakh tonnes as against 8.67 lakh tonnes during same quarter last year. And as far as outside Northeast is concerned, we have sold 4.31 lakh ton of cement this quarter as against 3.55 lakh ton same quarter last year. In terms of blend mix, it is almost 15% of OPC and the rest is PPC. These are the consecutive number of this quarter.

3:01 Now I'll take you through the financials. The total revenue figure this quarter is around INR $90.02 crore as against INR $8.47 crore same period last year. As far as EBITDA figure is concerned, this quarter, we have done an EBITDA of around INR $20.03 crore as against INR $2.30 crore last year. This is mainly on account of reduced subsidy, increase in packing material costs and also shutdown expenses, which we have taken in our one of our team. Profit after tax is INR 74 crore in this quarter as against INR 98 crore last year. On per time EBITDA front, it is INR $14.97 during this quarter as against INR 17 seventy four percent same quarter last year. This is what our quarterly numbers are. Now I request all of you, if you have any query, you can ask the same, and I will request Naveenji to moderate the query wherever it requires. Thank you.

3:54 Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assemble. We take the first question from the line of from Dollar Capital. Please proceed. Thank you, sir. Just a couple of data points before question. Trade share, premium share, CC ratio, lead distance, and for this quarter.

4:49 So I think the premium sales is about 15.9% of the overall sales. The lead distance was about 210. The clinker factor was about 66.5%. And what were the fourth parameter that you'd asked? Trade share. Trade share was about 80%. Okay. And for this quarter? It was about 1.55. 1.55. Oh, it's a case of jumping there. So now two things. First, on the volume. So this quarter, slightly on on the lower side. So we were looking at 10%, 12% cement volume growth and similar number of the clinker for entire full year versus 26.

5:52 Any change in that? So can we now see that from q two onwards or or or that the volume growth would be slightly better? So in q two, you know, as we all know, that Assam is completely flooded at the moment. So I don't see much of a spike in terms of volume in q two. But I think from q three, q four onwards, I think we can see, hopefully, a double digit growth. And on the overall year, I think we expect to probably revise the numbers a bit from 11 to 12% to about eight to 9%. And... But for the same card sale for for the full year could be the similar of what we have done in the in the 05/26?

6:39 I think the finger sale in FY '27 would probably be stagnant or may be grow by about five to 10% compared to FY '26 because I think the Tinker is also coming from outside now in Northeast. So it may may be a case that, you know, there may be a degrowth in the sales of Tinker. So now on the cost difference, so given the fewer cost has sharply jumped up to 1.55 from 1.24 in q four. So overall, this and even the... We heard that there's some packing back cost has also recently has has gone up. So overall... And how do we see the cost moving up in q two?

7:28 And then at the same time, the prices are are still... The prices holding on versus the June average? So in the fuel cost, you know, in FY twenty six quarter four was about 1.33, which has gone up to 1.55. We expect in q two onwards, the cost should come down to about 1.45. And, hopefully, in q three and q four, we can hopefully reduce the cost further on fuel. The PP bag prices are completely related to the international turmoil and war situation which is going on and thereafter prices are up. So that, I think, really is hard to predict of how will it pay out.

8:15 And on the prices, the prices... The the prices, I think if I compare, I think the prices are broadly stable in Northeast as well as in outside Northeast markets of Bihar and Bengal even in in the quarter two. Okay. So broadly, kind of a 1,500 plus kind of a beta pattern that we were previously looking at for at least two, three years once our Rajasthan plant comes in. So that we are we are still seeing that that is kind of still manageable given whatever the new capacity will will come up in the in the Northeast.

9:09 So still, it will have a time. So we should be having the similar kind of a 1,500 rupees kind of EBITDA per term can be can be doable. Yeah. I mean, over the entire year, it it can be doable. I think $151,500 is still a good estimate. Only for quarter two because the shutdown cost also gets added in the fourth... In quarter two. And also because in Northeast, it rains more so for the fixed costs are getting absorbed by lower volume. So it may be about 1,400 for quarter two, but I think we'll catch up in quarter three and '4. Yeah. Okay. Okay. Thank you, sir. All the best. Thanks. Thank you. Thank you. We take the next question from the line of Jyoti Gupta from Ashika Institutional Equities. Please proceed.

10:00 Thank you so much for taking my question. Good set of numbers. I just wanted to understand how does the pricing and demand scenario looks like in the second quarter? And what should we expect with the given the kind of situation on the EPC and especially roads and highways, do you see demands going down in the third or fourth quarter, or it's slightly to remain stable in the second half as well? So I think that because of the lack of demand in the first two quarters, like quarter one, quarter two, and because of the flat which have completely on the Northeast at the moment, I think that the the... No. When the flat subside, which is basically quarter three and '4, I think there should be some pent up demand which gets released in those two quarters in the second half of the year.

10:55 So so I would expect a bit higher than usual growth in those two quarters. And, of course, you know, the the demand in the first two quarters have been quite mute. Yes, sir. Sorry. I missed you. Hello? Yeah. Yeah. I was just saying that in quarter... Second half of the quarter... Sorry, of the year, we would probably see a pickup because of the pent up demand. Right now, there's, you know, heavy rain and flooding going on in the entire Northeast. So, of course, the demand for cement is quite mute. But as soon as the situation gets better, I'm sure there'll be a pickup in the demand as well.

11:41 When should we expect the Avissan plant to come on stream, and by when do you think it will be, I mean, step up phases, maybe start with 30 utilization level? Because we expect an effort when the late end. So, basically, we have got... Now gotten the plan plan for the Flinker and the integrated lending unit plan. So we have applied for the, you know, public hearing for the EC. By, I think, about September end or October, we should be getting a EC for the plan. And between mid October to November is when we plan to start our work on ground on the Rajasthan project.

12:31 So effectively twenty six months for the for the plan to come up or '22? So it would be about about eighteen to twenty months from, like, November onwards, I guess. So it means about quarter one of FY twenty nine or quarter four of FY twenty eight. Okay. Great. Thank you so much. That's it. Thank you. We take the next question from the line of Rajesh Ravi from HDFC Securities. Please proceed. Hi,. Am I audible? Yes. Yeah. My first question pertains to demand in the Northeast. We want... I still do not understand. We have seen a similar decline in the Northeast sales.

13:17 So how... What do we attribute that to? It's all because of elections which impacted sales in month of April or also because of the rising competition from Dalmia's capacity ramp up in the same market? No. I think it's not because of the competition. I think because... I mean, in q one, the best month is the April 1 because from May and June, in all these ones who start, you know, playing a role. And in April, we had the elections in Assam, which is, like, almost 60, 70% of the Northeast market. So I think that is why I think there is a bit of a dip. I don't think it's because of the competition, and I don't think we've lost any market share in Northeast, you know, compared to last quarter or same quarter last year.

14:10 Yes. So, no, full year, this is what your estimation in terms of growth in the Northeast sales on a year on year basis? The growth rate in Northeast on year on year basis. This this this... Like You are talking about the largest market growth or about our growth? Yes, yes, STARCE growth and growth for industry as well as for market FY 2027. Is 2.8. Whereas our growth is more or less flat or maybe even by the growth side. So for FY '27, you're saying key industry was growing 2%?

14:59 For for us, I think the growth was about point 4% in all these, and I think the industry may have grown by about one or one and a half percent. It was flattish. Well, hopefully, is the expectations they're looking at? I think we still are hopeful that, you know, we can catch up in the quarter four and quarter three, and quarter four. So I think for the industry, I would say that the growth rate should be about 7%. For us, I hope that we can do about eight to 9% in Northeast. Okay. And fuel cost, you mentioned 1.55 was for q one or in q two? No. 1.55 is the estimate for q one.

15:44 I think in q two, we should bring it down to probably about 1.45. Yeah. Understood. Understood. Okay, sir. I'll come back. Lastly, on this project, the equipment ordering is already in place. Or after the EC is So just we are... You know, we have just completed the purchase of our plant land. Mhmm. Our public hearing is end of the month in opt... In August. If you should come in first week of October, we have already started calling vendors for quotations, and I think we should be able to log those by, I think, end of August or start of September.

16:30 So... And then we'll start with the engineering work. Understood. Yeah. That's all from my end. Thank you. Thank you. Thank you. We take the next question from the line of Navin Sahadew from ICICI Securities Limited. My first question was, Assam comprises what percentage of our sales volume? And also, if you could throw some color on volumes, if at all, we would have done in Q2 or at least in the month of July. I mean to just ask, is there a risk of negative Y o Y growth because of the flood situation?

17:25 So in quarter... Sorry. In quarter two in July, of course, the volume... The growth was about 12%. The reason was because July was completely flooded in Assam, and Assam was completely shut down in in in in many areas. I think we are seeing a marginal growth in August. Last year, in September, there was GST division from 28% to 18%. So last year, September numbers for us were very bad. This year, September, we expect to be without much of floods and without any regulatory changes. So I think whatever volume, the growth we have done in July, we hope to catch up in September month.

18:16 Understood, sir. But my second question then was about the grinding unit. So is there a plan that we see some grinding units proposed or planned in West Bengal with the change in government or some industrial policy around it? So we are actually waiting. I think about August 15 is when the Western Wall is supposed to come up with their industrial policy. So looking at the industrial policy and looking at the potential benefits that one can approve, I think we will take a call. Of course, you know, the CapEx... In case of benefits are favorable, I think the CapEx in this thing was, especially in the celebrity plan, may make sense because, I mean, we have brownfield expansion and will cost much less than from the CapEx and will also give us benefit of SGSP in our existing field.

19:19 So is there a possibility, sir, that we would contemplate or compare it between the hard lending unit and West Bengal for us to take a call if the industrial policy is out or as in when... Whenever we get clarity, we would be able to decide based on that. Yeah. I think what we are in the short term, at least I'm telling is the thing we have, you know, as alternatives that we can totally invest in. So if there is a favorable policy in West Bengal, then, you know, then we may have to reconsider our CapEx in Bihar and probably may redirect it to West Bengal. But that, I think we can probably have a longer discussion after the policy is out. And the next investor call, I think we'll have more clarity.

20:11 That's true, sir. The... And and regarding the North Region, I wanted to understand if there is clarity on the incentives that we will likely or potentially get, or what is the status on on that front, sir? So, yes, I think we have already gotten the standard approved package in Rajasthan, you know, for the Nimbool clinical plan that we plan to set up. You know, I think I will share a slide of those benefits in the next presentation. It involves a degree of capital subsidy along with SGSP benefit. The exact quantum is not in front of me at the moment, but I will just add it to the slide so that everyone can see.

21:01 Sure, sir. Thank you. Thank you so much. Thanks. Thank you. We take the next question from the line of from DOLET Capital. Please proceed. Sir, just to continuing that. So if the base mineral policy is variable and if we find fit, so we will then entirely 2,000,000 ton grinding that we were looking at. This entire 2,000,000 ton, we will be shifting to West Bengal, or it could be a 1,000,000 ton in West Bengal and 1,000,000 ton in Bihar? I mean, you know, we will get back with the details. I do not know if, you know, what the policy will be. I hope it is favorable.

21:49 And I think it will, you know, it it may make sense for us to, you know, put a plant in West Bengal. I don't think it makes sense to put 1,000,000 in West Bengal and 1,000,000 in Bihar because the overall CapEx of a grinding unit along with the rail residing in a greenfield project sometimes may not... Mainly, the economy, which may not come with the 1,000,000 ton grinding unit. So that, I think, will will really have... We'll have to redo the working depending on the demand scenario. Right now, the demand in in West Bengal has been quite good. So I think if demand continues like that, then we'll have to...

22:35 In the, you know, next two, three years plan to commission, you know, either one of them for which we'll get back to you in the next call after we have analyzed the industry policy of it. The existing branding unit in delivery, we already have plan planned enough for another branding unit. We also have railway we also have railway siding in, you know, in, and we are planning to put a wagon tippler for the moment of clinker as well as for the moment of fly ash. So I think the economics of the Liberty Lending unit will be changing, and the CapEx decision, we'll let you know in the next call.

23:27 Okay. Okay. Got it. Understood. And in terms of now, I understand this is pending. But broadly, in q one, how much CapEx we have done and for full year for 2728, how much CapEx are we looking at and out of that, particularly the Nimble, how much we want to spend this year and next year? This quarter we have spent around INR93 crore odd crore And our that our planning what we have given INR 500 crore for this quarter that this year that will continue, that will still holding on the same. Okay. And next year FY 'twenty? That we have already that same thing. There is no change as such right now.

24:14 So 1,500 odd kind of a number we should be looking at in FY twenty eight? Yeah. Okay. And then this will be largely for for the for the... I mean, also that... Or of CapEx, what we previously talked about, 2,400 per hour, 2,500, so that remains the same. Yeah. So I think in that, the CapEx that we have planned for Rajasthan is about 3,000,000 tons of grinding and 3,300,000 tons of clinker about, but that we are still fine... Finalizing the exact specs of the machine and 2,000,000 tons in. So overall CapEx of this thing is about 2,600 to 2,700 crores.

25:03 Is that what we're expecting? And I think we are focusing in the next two years to primarily get this CapEx going and not. So that would be the primary, you know, focus of the CapEx... All the CapEx that we do. Yeah. Because of the last latest presentation, what we have... There we were saying that 2,250 crore for integrated Nimble and $6.50 odd crore for Haryana. So that is close to 2,900 odd per hour that we're gonna be So that is... So I'm also talking with a combined amount. I think it may be about 2,700. We are still doing the math. It may be $102,100 crores up or down. That I think we will... Once we start finalizing the, we will be able to give clarity in our presentation as well, and I think we'll be able to take a definite budget for the expansion. I think it will be about 2,700 odd, But with the GST, it may be about 2,900. So I think the difference in numbers because the GST, which I may not be including in my number, but I...

26:10 The presentation includes. Okay. Okay. Got it. So so so for the the QAP, previously, which we're looking at 1,500 odd crores. So there anything that we are we are now looking at? So once we have 1.5 times net debt EBITDA, then we will go for it or how... Any any... Anything change in there? So, I mean, right now, because, you know, we have... We're only focusing on Rajasthan for the next Rajasthan and North for the next CapEx for the next two years. And I think if our tools are healthy, then we should be able to manage it with about 1.5, 1.6 times debt EBITDA.

26:57 So we are not at the moment actively thinking of QIP. We will do it at the opportune time in case there's opportunities available before which we need to further raise money that may be organic or inorganic. Okay. Okay. Got it. And and this year for full year in terms of incentive would be for $131.40 odd per hour? So, yeah, I see it should happen, but there is a restriction that the Assam government has come up where they are, you know, dividing the overall subsidy benefit by the, you know, across the number of years that the subsidy is valid for.

27:43 So what I expect for this year is not about $1.45, but about 115 crores. Okay. Okay. Okay. Got it. And and in this quarter, what was the green share and why this year end to where we can be reaching? Green shares for this quarter, it was about it was about 3%. This, of course, includes the WHO as as well. Yeah. Yeah. Yeah. And And and this... We are planning to... You know, we are planning to introduce solar as...

28:33 You know, some group captive opportunities that we're evaluating. I think in quarter three or quarter four, we will also share the details of those contracts. Okay. And lastly, the fuel mix for q one will be in terms of the FSA, AFR, and biomass would be how much? So fuel mix for FSA would be about 42... Would be about 40... The 45%. Mhmm. And the part from FSA and and the other schools were spot contract.

29:23 What has happened in quarter one is that all the coal has been directed to the power plant by... You know? Because I think there was a surge of power requirement. So all the coal in the coal was diverted. So what we... We do not have that many leaks coming of FSA, and we had to focus on buying spot contract of coal, which are, of course, at a higher price, and that is why the fuel cost has gone up. Okay. But now I think that we are... We will be able to get few rates from FSA more frequently, and that is why we expect the fuel cost to go down to 1.45. Okay.

30:09 First, I I I got it, but still, you said the FSA was 45% in terms of the fuel mix in q one. What was the balance? The balance about 30% was spot contract of coal, which is basically we buying off the market. Right? And then there was a component of biomass and some from... Yeah. And then there's a component of biomass. So I think this will be broad. Okay. Okay. Got it, sir. Thank you. Thank you. Thank you. We'll take the next question from the line of Prati Kumar from Jefferies. Please proceed.

30:56 Yeah. Good evening, sir. I have more to make an industry question. Can you discuss the cement demand for FY '26 or, like, maybe FY... Estimated FY '27, clinker capacity and grinding capacity for '27? And how do you look at it somewhere, like, in three years? So in FY '27, I do not see any clinker capacity come in. The demand seems to be a bit muted in the first two quarters, primarily because there was election. Now there's, like, tremendous amount of flood. So... But in the last two quarters, the latter quarters, expect the demand to improve. In terms of capacity additions, I think in the next three years, I would expect capacity addition of about 1,000,000 each of two players.

31:55 And besides that, I am not aware on ground of any other capacity addition. Okay. But these are, like, clinker capacity you're mentioning, 1,000,000 each of clinker and. Right? Yeah. Like, proportionately, I think. Right? Okay. And what will be the... Like, maybe FY twenty six sending clinker and landing capacity of the region? That number, I'll have to get back to you on. I don't have it off hand like that, but I think it should be about the 15 and a half to 15,000,000.

32:42 That should be my estimate of the clinical capacity in Northeast currently. Do you have estimate for the grinding capacity as well? Grinding capacity would be about 23,000,000. 23 to 24,000,000. And besides yourself and Dalmia, Bharat, like, the smaller peers, have they been able to expand or, like, most of expansion is from the top two players in the past three years? So... And besides us and Dalmia, we are the two people who are majorly funded. I think other companies are doing downstream expansion, and they're trying to debottleneck.

33:36 It's about point five, point 6,000,000. So I don't think there's anything significant lead that they're expanding at the moment. Sure, sir. This is my question. Thank you. Thank you. Thank you. We take the next question from the line of Harsh Patel from MK Global Financial Services. Proceed. Thank you for the question. Good evening. Good evening, team. So I have only one question. How have been the prices behave in the past one, one point five months, basically, the post one q exit given the flat situation in Vietnam. Okay. If you can give color on that.

34:23 Yeah. So I think the prices are broad... Broadly been flat flat. You know? So from q one to now, I think there's a there's almost, like, 50 rupees increase in the price, but it has broadly been flat, you know, because because... I mean... Yeah. So I think because the demand has gone, I don't think there's any reduction in the price, but but there's a cost pressure to be... We had to maintain the price, and that's why the price is a bit of flat. You know? But I think I agree because of the demand because of the cost pressure, I think once the demand opens up, I think there will be a requirement to increase the prices a bit to absorb the cost. And this this flat prices is facing both of your market, the Northeast as as well as in outside Northeast.

35:14 Is this assumption correct? Yeah. I think in Bihar, the prices are a bit higher, up by about 10 rupees. The... But in Western Wall and Northeast, the prices are up by about only 3 rupees. Okay. And, sir, any number if you can give about what could be the cost reduction in quarter two, or you are saying it may be flat? If any indication you can give on the operational cost per time. So operational cost, I... You know, besides the fuel cost, it may go down to about 1.45. I don't see a lot of cost going down because, you know, the bad prices are also high at the moment. So I don't see that, you know, also going down. I mean, depends on the war and the crude oil prices and the after prices. And so that is beyond our control.

36:10 I think we are introducing... I mean, from a longer horizon, we are introducing a few things which should help us in reducing our cost. I think, you know, we are... By October, November, we will get a real deciding in future. You know? And we'll start operationalizing our filter capacities fully. I think there will be a lot of operational logistics saving that we may be able to prove because of that, you know, because that will help us in serving the cheap... You know, in serving the South Assam market more effectively along with other states in Northeast. We are also planning in the next five, six months, you know, also planning to introduce EVs and some typical routes.

36:56 I think that would also lead to significant savings. We are planning to introduce in which will reduce its clinker, transportation cost, and fly ash cost to significantly. We expect about a 150 rupees savings from the sales that we make from after we do, you know, introduce there. So I think these are just few cost initiatives that we're taking, which will materialize in the next three to six months, basically. Harvazar, in addition to that, because there are some one off investment or donation and some incentive that will also reduce in the next quarter. So that will be INR 60 to INR 70 saving will be there as compared to this quarter.

37:44 Got it. Last question from my side. Are we seeing our guidance of 150 crores of noncement revenues this year? Or there is some downside risk on that? Sorry, can you repeat that again? Sir, my question is, so in the last call, we gave a guidance of INR 150 crores revenue guidance for the noncement part business. So are we staying intact? Is this guidance intact? Or is there some downside to this number? No. So that 150 was not... Yes. That 150 was not actually the EBITDA increase. That was a revenue increase suggested that we will we will do about hundred and fifty years by our building solutions division, right, by AAC and RMC, and that is actually a revenue estimate. That's not an EBITDA estimate.

38:44 It's a... I said that. It's a revenue estimate only. I said about revenue. Yeah. Yeah. Yeah. So so that revenue estimate, I think, again, because the demands have been have been a bit sluggish, so we are not, right now, at the ARR where we've touched 150, but we are increasing our RMC plans. We are focusing on AC, and I think we should be able to reach that ballpark figure. At least on ARR basis, we should be able to reach that 150 number by this quarter four. Got it. Got it. Thank you. These are my questions. Thank you. Thanks. Thank you. We take the next question from the line of from. Yeah. Hello?

39:31 Hello? Am I audible? Hi. Hi. Yeah. Right. Sir, a couple of questions. So my first question was that if not as a project is is certain, is there from a strategy point of view, are we contemplating entering the region with some RMC units? Because you already have some experience for RMC in your home turf. And given the way North is typically your OTC market, incrementally, I think other companies are also talking about RMC increase. So as a strategy, would you be contemplating putting more RMC units in the region to begin with so as to make, like, you know, a brand visible or create or in... See the market.

40:17 And then probably once your product is launched or once your factory is launched, that could help us gain a better traction. Is that something on the card? So I personally... You know, I agree. I I... You know, that's a good suggestion. We had not, you know, got down to thinking about that yet, but I think it's a good suggestion. I think, you know, I would, you know, ask my team to kind of evaluate it, and then probably we can have a discussion about it in the next earnings call. Right now, I think we would just... You know, we we... We've read the market. I agree with you that a lot of the teams have, you know, the RNC culture and things. We'll have to eventually get to it. So we haven't really modeled it out, and we haven't really explored it in detail. So we'll do that, and we'll get back.

41:07 Sure. We'll look forward. My second question then was about the incentives. So you mentioned Assam government did some things wherein from the earlier payout, they would now do much more equated kind of a a payout. So two things here, I wanted to understand. What is the amount outstanding? And are there any receivables there from the Assam government, which will take longer than expected? Manojeet, do you have the number? Currently, we have around because we have received this quarter also, have received INR50 odd crores, INR140 crores we have received.

41:53 Till June, we have an accrual of INR165 crores. And we have received INR140 crores out of it and INR25 crores, we are in the June up to June 25, everything will be clear. Then after that just let me give the number. Then INR85 crores is the accrual till March 26, that is suppose it will be INR85 crores plus INR25 crores. This is INR110 crores outstanding till March 26. And further this quarter, we have accrued around 14 crores, that is outstanding. 130 crores is outstanding from Assam.

42:38 INR 130 crores is outstanding. And sorry, how much how many years now what is the total book size or incentive amount that we can get irrespective of the period? I believe they're seeing the period now. So what is the total duration in terms of years and maybe the annual amount? Whatever $7.94 crore, okay, that has to be, we will get. So I think the $7.94 crore that you were supposed to get, you know, there was no restriction of how fast you can get. It depended on, you know, the amount of SGSP that you gave to the government. Correct. Right? And I think you... That you should get deducted... The net SGSP used to get deducted from that amount of the overall subsidy.

43:25 Right? But now what they've done is that they've divided the number of... The the amount of subsidy by twelve years. Right? So out of that, two, three years have already gone through whatever remaining subsidy was there. They divided it by the remaining number of years. Right? As per as per the new circular. So the impact of that is about, you know, $20.30 crores, which is why I said that the estimate of overall subsidy will reduce from 145 to 115. Understood, sir. And and, sir, my last question, because there's a change in the government in West Bengal and whatever local articles that we were reading through some trends maybe, I could just understand that there was a big crackdown on the illegal sand mining in the West Bengal, so do you have any idea if the upcoming industrial policy will have any or any any... Like, you know, is there a proposal by the state to formalize this land mining, which will also then, in a way, lay ground for having more organized RNC business in the West Bengal as a state?

44:39 I... You know, so I I think you're right. I mean, in West Bengal, we did... I mean, there was problems because of the illegal sand mining and the crackdown on it. So that is also the reason why it has... The demand for cement has also been a bit mute, I think, that area. I do not know if the government is trying to formalize this and what steps they're taking to, you know, counter this. But I think that once the rainy season gets over, I think they will, in some form or or or the other, open the sand mining because I think it will be critical for them to do that. I mean... And right now, they can't do it because anyway it's training. So so it won't be possible for them to do it right now.

45:33 Understood. Thank you so much. Thank you so much. And let me again congratulate you for still being the highest... One of the highest EBITDA per ton companies even excluding incentives. We look forward to similar set leadership or, like, you know, that margin gain going ahead as well. Thank you. Yeah. Thank you. Thank you so much. Thank you, sir. Thank you. As there are no further questions from the participants, I would now like to I'd like to just say that, of course, quarter one was not as far as any of our expectations, I think, because of unforeseen events globally as well as in the state.

46:18 I think quarter two seems to have a similar trajectory. You know, this is also because the GST has been significantly revised. I think first hit on the subsidy side was because GST had reduced from 28% to 18%. So I think in quarter one alone, 40 crores was a hit because of that. If we actually exclude that hit of 40 crores, then I think we were positive EBITDA in terms of percentage, in absolute terms, which shows that there was resilience. I think from September onwards, anyway, the subsidy impact last year had also only hit us. So I think from quarter three onwards, we will see that there's not much of a loss that we're making because of the reduction in the subsidy.

47:09 And that part in the books would seem to be taken care of. And then I think the profitability also in terms of the percentage growth in EBITDA will start reflecting in the book. So the first quarter... Two quarters because last year, till September 25, the GST rate was 28%, and now it's 15%. So right now, we are absorbing the hit of the subsidy, but I think from September onwards, last year also, it came down to 18%. So I think the hit that the books are facing because of the subsidy will stop being felt after September onwards, and you'll start seeing a growth thereafter. Thank you.

48:03 On behalf of IIT Delhi, sir, conference. Thank you for joining us. You may now. Okay. Thank you. Thank