The India Cements Limited

Rs.7

s more than one, the cost of power generation goes up, in fact people started using grid power at Rs.7 or Rs.8 a unit compared to their own generation, which had crossed Rs.10 a unit. The cost for tran

Rs.8

han one, the cost of power generation goes up, in fact people started using grid power at Rs.7 or Rs.8 a unit compared to their own generation, which had crossed Rs.10 a unit. The cost for transportati

Rs.10

arted using grid power at Rs.7 or Rs.8 a unit compared to their own generation, which had crossed Rs.10 a unit. The cost for transportation went up, diesel prices went up but for a marginal few rupees,

Rs. 1

l and finished product sale. Then we had the situation of fuel. The cost per calorie went up from Rs. 1 to Rs.1.2 to Rs.1.3 to 2.9 crossed Rs.3 per calorie. Under this kind of an onslaught, cement compa

Rs.1.2

ished product sale. Then we had the situation of fuel. The cost per calorie went up from Rs. 1 to Rs.1.2 to Rs.1.3 to 2.9 crossed Rs.3 per calorie. Under this kind of an onslaught, cement companies could

Rs.1.3

uct sale. Then we had the situation of fuel. The cost per calorie went up from Rs. 1 to Rs.1.2 to Rs.1.3 to 2.9 crossed Rs.3 per calorie. Under this kind of an onslaught, cement companies could only just

Rs.3

the situation of fuel. The cost per calorie went up from Rs. 1 to Rs.1.2 to Rs.1.3 to 2.9 crossed Rs.3 per calorie. Under this kind of an onslaught, cement companies could only just grin and bear it, t

Rs. 39 Crore

was such that it was not possible for us to bear and as a result of which the EBITDA came down to Rs. 39 Crores which is down from Rs. 165 Crores last year. The cement companies which were able to increase th

Rs. 165 Crore

for us to bear and as a result of which the EBITDA came down to Rs. 39 Crores which is down from Rs. 165 Crores last year. The cement companies which were able to increase their blending and sell at a shorter

100%

panies in the north of India were not that affected because the capacity utilization was close to 100% compared to 60% to 70% for the southern based company, particularly those companies which are ver

60%

th of India were not that affected because the capacity utilization was close to 100% compared to 60% to 70% for the southern based company, particularly those companies which are very south centric

70%

ndia were not that affected because the capacity utilization was close to 100% compared to 60% to 70% for the southern based company, particularly those companies which are very south centric were hi

“It is our intention going forward to make use of the revenues that we raise, there is to make improvements in this area.”

“As far as what I said is we are going to endeavor at the price to sell closer to the factory to reduce the distance the cement has to travel in the next three/ four months, we expect to have results out of this, we are going to develop and cultivate markets closer to the factory, just to add we had a growth of almost 59% in south and that outside south where the growth was only 17%, so I think that will answer your question.”

“We have taken many steps to mitigate the increase in coal cost whereas we have imported Russian coal, we have used low quality coal from Indonesia, but the answer to your question is, there are two views, one view is that the coal prices will reduce going forward, but there is another view that says that the coal prices will be firm, not being an international player it is difficult for us to hassle against.”

“Srinivasan: (cid:9) Replying to this query which you have raised, I think it will be premature for us to comment on this, we will come back to you, will talk if we have more clarity on this, so we have a timeline and we are in the process.”

“Mangesh Bhadang: (cid:9) Sir, even I am also view that because the cost pressures have been quite high, there will be a need for the cement prices to increase to pass on these cost, but it has not happen is that an effect of this investigation or generally the markets have been weaker that is why the prices have not gone up?”

“In the pandemic period it is very difficult to predict what will happen, so what I expect production to be, a little bit difficult to say, but all I can say is that the addition to capacity is far, far, far lower than that has been in the past, we are paying for lower capacity addition and it depends on the company, if they feel they can sell everything, they will expand, it is up to the entrepreneurs concerned.”

“You are expecting that it will grow up like monsoon goes ahead?”

“You expect this to go up or it will stay at this level?”

“Prateek: (cid:9) So, utilization will be hanging most probably we have more capacity, but on volume front also?”

N. Srinivasan

23

Parth Bhavsar

5

Prateek

5

Ritesh Shah

5

Moderator

4

Manish Ostwal

2

Mudit Agarwal

2

N. Srinivasan

Thanks, Vaibhav. The story of the quarter under review is a story of unprecedented increase in cost. The cement industry in India to my knowledge has never gone through such a serious increase in costs which has gone through the roof and prices have literally remained static. No doubt the capacity utilization was better during this quarter compared to the same quarter last year, but increase in capacity utilization was dampened by the increase in costs. Coal that was $90 a ton went up to $230 a ton. In the phase of this kind of an increase because the coal affects more than one, the cost of power generation goes up, in fact people started using grid power at Rs.7 or Rs.8 a unit compared to their own generation, which had crossed Rs.10 a unit. The cost for transportation went up, diesel prices went up but for a marginal few rupees, which is neither here nor there. The transportation costs went up all around which affects the incoming raw material and finished product sale. Then we had t