Orient Cement Limited

Deepak Khetrapal

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, ORIENT CEMENT LIMITED

Harsh Mittal

ICICI SECURITIES

15%

name Orient Green. And why we’re calling it Orient Green is simply because this cement has about 15% less carbon footprint than the industry norms. And obviously, we are positioning it as a green ce

Rs. 45

sible you and the brand is Orient Green. Like if you remember our Strong Crete is today priced at Rs. 45 higher than our PPC. Orient Green is priced at Rs. 23 higher because some of the customers have be

Rs. 23

emember our Strong Crete is today priced at Rs. 45 higher than our PPC. Orient Green is priced at Rs. 23 higher because some of the customers have been telling us they’re finding Rs. 45 premium to be a l

70%

rated because no matter what we've tried, we still are, let’s say, significantly lower, more than 70% drop in EBITDA whether on absolute terms or per term basis. At the PBT level, we actually have go

1%

tle more detail than the numbers that you've seen so far. Our net sales, as you've seen, are down 1% Y-o-Y, and sequentially they're down 14%, I'm talking rupees of course. The volumes in this parti

14%

u've seen so far. Our net sales, as you've seen, are down 1% Y-o-Y, and sequentially they're down 14%, I'm talking rupees of course. The volumes in this particular quarter have been at 12.36 lakh ton

12.36 lakh

ey're down 14%, I'm talking rupees of course. The volumes in this particular quarter have been at 12.36 lakh tons, 1.24 million as many of would be quoting, which is nearly 3% down over last year. But if we

1.24 million

'm talking rupees of course. The volumes in this particular quarter have been at 12.36 lakh tons, 1.24 million as many of would be quoting, which is nearly 3% down over last year. But if we remember that last

3%

r quarter have been at 12.36 lakh tons, 1.24 million as many of would be quoting, which is nearly 3% down over last year. But if we remember that last year in Q2, we had sold about 24,000

1.4%

at all. So, we didn’t sell any clinker at all. So, we exclude that purely on cement, the drop is 1.4% over last year. And sequentially, the drop in our cement sales in volume is about 10%. On H1 ba

10%

he drop is 1.4% over last year. And sequentially, the drop in our cement sales in volume is about 10%. On H1 basis, on the face value, it seems that we are flat 26.37 lakh tons vis-à-vis 26.39 tons l

26.37 lakh

cement sales in volume is about 10%. On H1 basis, on the face value, it seems that we are flat 26.37 lakh tons vis-à-vis 26.39 tons last year, but again last year had 24,000 tons. So, from that perspecti

“Deepak Khetrapal for his opening remarks, which will be followed by an interactive Q&A session.”

“And also, we take pride in the fact this migration, which typically is considered 6 to 9 months project, we did an insanely short-time of just 3.5 months, not about 3.5 months is what it took us from starting the work to going live.”

“We also have done it to keep our progress on the digitalization and to become more and more a company which is driven by data and data analytics and decision making which will be largely based on the data that we have with us.”

“So, we started with north Karnataka, which is as it is a little more difficult market, but it's closer to our Chitapur plant where we are producing the cement for now and we plan to roll it out.”

“The other impact of heavy rains is that the larger project who have the infrastructure to continue construction despite rains, because they have more mechanized equipment, they have better labor camps, they have everything, they consumed a lot more of cement.”

“With the waste heat recovery project at Chitapur which is under construction and which, as said earlier, we will be commissioning towards the end of the financial year.”

“2 crore, which obviously had to be incurred when we were doing the project.”

“And also in this quarter, we quite didn't expect the rains to be as heavy as they are.”

“37 crore toward project debt in this quarter, total in H1 becoming Rs.”

“74 crore So, and we today, our let's say the project debt is now down to Rs.”

Deepak Khetrapal

43

Rajesh Kumar

17

Moderator

9

Surya Naik

8

Uttam Kumar

7

Abhishek Maheshwari

5

Dhiral

3

Bajrang Kumar

3

Harsh Mittal

1

Harsh Mittal

Thank you, Melissa. Good afternoon and a warm welcome to everyone. On behalf of ICICI Securities, we welcome you to the second quarter and first half of FY23 Earnings Call of Orient Cement Limited. On the call, we have with us Mr. Deepak Khetrapal – MD and CEO of the company. At this point of time, I will hand over the floor to Mr. Deepak Khetrapal for his opening remarks, which will be followed by an interactive Q&A session. Thank you, and over to you, sir.

Deepak Khetrapal

Very good afternoon to everyone. And I join Harsh Mittal in extending a very warm welcome to all of you. Thank you for sparing the time, thank you for investing your time with us. And for those of you who are investing with us, even financially, thank you for investing in us and believing in us. Thank you so much. Where do I start this call, in the sense that we all know, the kind of quarter we've had. But even then, let me at least start with some of the positive things that have happened during the Q2. And I'll obviously come to the hard numbers in a minute, I won't take too long over it. But a few good things that I certainly want to point out to people who are interested in us. One, for those of you who’ve seen that in social media and all, Deloitte does run a global program called Best Managed Companies all over the world, and in India, this was the second edition. And they have a very robust process through which the Best Managed Companies are actually selected. And they take us