The India Cements Limited
3,698words
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Key numbers — 38 extracted
26.29 lakh
26.57 lakh
19.63 lakh
Rs.8 crore
Rs.4.2 crore
Rs.33.5 crore
Rs.5 crore
Rs.0.78 crore
rs,
Rs.564 crore
Rs.20
Rs.15
Guidance — 20 items
Nloderator
opening
“Srinivasan — Vice Chairman and Managing Director of the company for his opening remarks, will be followed by Q&A Session.”
Management
opening
“Going forward, I think the situation will reverse.”
Management
opening
“So, we will be aiming to improve our PPC production.”
Management
opening
“We will be working to improve our volumes.”
Management
opening
“So that we expect to benefit from better slightly lower coal prices going forward, although it is our assessment that the coal prices will not go down, will still increase going forward.”
Management
opening
“As a company, I think in a sense, the worst is over in one sense, and going forward, we will have better production, we will have cheaper production, and therefore, the results should be better.”
Manish Ostwal
opening
“Manish Ostwal: (cid:9) So, whether we will be able to maintain the EBITDA per ton in the current levels or difficult to predict?”
Management
opening
“What I can say is that I expect an improved performance going forward from June onwards.”
Navin Sahadeo
opening
“But what is the debt repayment obligation then that we have for FY'23 per se, how much do we plan to repay?”
Navin Sahadeo
opening
“But with regards to the balance sheet situation, are we still looking at the MP project in the near-term or it is safe to assume it is some time away until the balance sheet health improves?”
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Risks & concerns — 3 flagged
Manish Ostwal: (cid:9) So, whether we will be able to maintain the EBITDA per ton in the current levels or difficult to predict?
— Manish Ostwal
So, basically this year, we could not repay the debt, of course, the industry has not been kind, in general, there has been a huge pressure on margins.
— Navin Sahadeo
In that context, how do you think that price hikes will go through and then sustain also because anyways monsoon we will see pressure on prices?
— Anirudh Agarwal
Speaking time
23
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7
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Opening remarks
Nloderator
Ladies and gentlemen, good day and welcome to The India Cements Limited Q4 FY'22 and FY'22 Conference Call 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. Should you need assistance during the conference call, please signal an operator by pressing (cid:9) and then '0' on your touchtone phone. 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: (cid:9) Yes, thank you, Inba. Good afternoon, everyone. On behalf of PhillipCapital (India) Private Limited, we welcome you to the Q4 FY'22 & FY'22 call of The India Cements Limited. On the call, we have with us the entire senior management team of The India Cements. I would like to mention on behalf of the India Cements Limited and its man
Management
Thank you. Good afternoon. If one were to sum up in one sentence, what was the Q4 results, it is a question of sharp increase in costs caused by factors not under the control of the management, and the fact that the slow reaction of the industry of us to compensate for these costs increases. Coal cost shot up completely, I don't think I'd have to carry coal to Newcastle. Everybody is aware that the costs have gone up substantially. Where we are concerned, we look at the NPR, that is net plant realization, we are around the same as our competitors. Our costs have gone up. There is one reason for it, that is we wanted to maintain as much as dispatch as possible work at as much capacity utilization as possible. There are five India's actually; North India, East India, they're running full. In the South, lockdown for a longer period and we had torrential rains in most of our markets, as a result of which the business could not be as usual. So the combination of these two, our capacity util
Rajesh Ravi
Sir, if I look into the volume numbers, it's okay sequentially, it has been decent, there's been staff cost growth. And if I look into the balance sheet also, there is a sharp increase in the receivables and inventories, could you explain that?
Management
The increase in receivables have been explained by way of a note, but nevertheless I will give you the explanation; we have been reporting receivables net of security deposit. This time there has been a change in the policy. So, we have shown security deposit separately and the receivables are being shown at gross level. Technically, there has not been any increase. Rajesh Ravi: (cid:9) But last year numbers are what, Rs.564 crores? Management: (cid:9) Last year number was ex of security deposit, whereas this year, security deposit has been shown under liabilities and receivables are being shown on a gross basis.
Rajesh Ravi
No issue, sir. One last question, despite such poor numbers which we have seen in the March quarter for South primarily because of the cost inflation, we understand that the pricing has not picked up even in this June quarter sequentially despite further cost inflation. So, what is your thought process on the same, why are we seeing such trends, South has been very prudent in terms of cost pass-through? Management: (cid:9) I can answer for myself. I will increase the price on the 1st of the next month. It is my intention to increase by Rs.20 on the 1st and by another Rs.15 rupees on the 15th.
Management
You see, this call is being recorded and all kinds of people are listening. So we'll go up like in this fashion; Rs.20 plus Rs.15 and plus a further increase on the 1st of the following month.
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