Shree Cement Ltd
NSE:SHREECEM
Shree Cement Ltd
NSE:SHREECEM
Price:
24 555
INR
-1.35%
Market Closed
Market Cap:
₹885.9B
Add Note
Add Target
Capture your thoughts and set a target
Decide at what price you'd be comfortable buying and we'll help you stay ready.
Based on
Margin of Safety
0%
10%
20%
30%
40%
50%
Your Price Target
Linked to
current price
· In Buy Zone
Loading
Note attached
Choose the stock you wish to monitor with a price target
Popular Picks
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
Ladies and gentlemen, good day, and welcome to Shree Cement Q4 FY '24 Earnings Conference Call hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Navin from ICICI Securities. Thank you, and over to you, sir.
Thank you, Steve. Good morning, everyone. On behalf of ICICI Securities, I welcome you all to the Q4 FY '24 earnings call of Shree Cement Limited. From the management, we have with us MD, Mr. Neeraj Akhoury; Senior Adviser, Mr. Ashok Bhandari; and CFO, Mr. Subhash Jajoo. So without any further ado, I hand over the call to the management for their opening comments. Over to you, Akhoury ji.
Thank you, Navin. Good morning, ladies and gentlemen. I hope my voice is loud and clear. Most welcome to the earnings call of Shree Cement Limited, also now known as Bangur in the market for the quarter and year ending March '24. During our last call, we informed you that we have taken a major exercise to simplify our brand structure with Bangur as masterbrand and also launched a new premium brand called Magna. I'm happy to see the enthusiastic support and response that we received for our master brand Bangur for the last quarter. This rebranding as you -- as I explained last year is combined with our accelerated channel expansion programs, but also very sharply focused on creating a sustainable differentiation amongst the consumers.
The broad features of the financial results both on year-on-year and quarter-on-quarter basis can be summarized as follows. So very happy to say that Shree Cement recorded its best-ever volume and profitability in the year '23, '24. Due to buoyancy in the demand, the total sales were up by about 8% from 31.8 million tonnes to 35.5 million tonnes, thereby increasing capacity utilization from 70% in 2023 to 77% in '23, '24. Of course, utilization remained flat at INR 4,833 against around INR 4,872 per tonne last year.
Operational EBITDA increased by 48% from INR 2,942 crores to INR 4,364 crores on the back of rising volumes, lower fuel cost, operating efficiencies and leverage and, of course, our very, very major thrust on the digital initiatives. Both this quarter as well as annual EBITDA are the highest ever achieved by the company during any quarter or year. Also, the net profit for the year is, I believe, also highest ever achieved by the company.
In the March '24 quarter, our total sales were up by 8% at 9.5 million tonnes against at about 8.8 million tonnes registered in the March '23 quarter. Capacity utilization was also at about 79% versus 77% in the last March quarter. Our realization were, however, down by about 3% from INR 4,847 to INR 4,721 per ton. Fuel cost witnessed a significant downward trajectory from INR 2.53 per CV to INR 1.82 the last quarter, majorly contributing in the EBITDA increase from INR 892 crores to INR 1,327 crores. EBITDA per ton also stood at a healthy INR 1,392 per tonne, up by about 38% versus last year at INR 1,011 per tonne.
On the CapEx front, apart from operationalizing integrated units at Nawalgarh in Jan '24 this year, we commissioned our 3 million-tonne Guntur plant on April 2nd of this year. Work is also progressing well on the other 80 million tonnes capacity expansion projects, which we have already announced last time as well. We believe that we should be completing out of this, about 9.4 million to 10 million tonnes capacity in FY '25 itself. Rest assured, everyone that we'll continue to progress with all our attention on the expansion projects in the coming years as well. The company is very happy to say the company's green power generation capacity, which now stands at 480-megawatt as on 31st March 2024. This is versus 386 megawatts in the last March quarter. The company is in the process of adding another 188-megawatt of green power capacity at various locations.
During Q4 '24, Shree also became part of the prestigious RE100 initiative where we have committed to using 100% of energy through renewable sources by 2050. Our existing green power consumption is roughly about 56% of our total power consumption, which will further increase to over 60% with this new renewable power plants coming in. We have increased usage of alternate fuels as well, like agro waste, stubble, hazardous ways to reduce green house emissions. We are working aggressively on setting up advanced technology shredders and associated equipments to increase usage of municipal solid base. which will increase our TSR level significantly.
Our water harvesting and conservation initiatives have helped us. And now we are very, very proud to state, we are about 7x water positive. This is up from 6x last year. And these are the areas where we would like to work more in the coming years. Again, very proud to say that our new vertical ready-mix concrete business, which we announced some -- last time, we have signed a deal to purchase 5 ready-mix plants in Mumbai at a consideration of about INR 33.5 crores. Additionally, we have also commissioned 1 more plant in Hyderabad with a facility of 90 cubic meters per hour capacity.
The company has mega plans to scale up this business very fast. And soon, you will see us as an important player in the ready-mix business as well. This is from my side. Now I hand over to my colleagues, Mr. Ashok Bhandari who is a Senior Advisor; Mr. Subhash Jajoo, our CFO; and Mr. K.K. Jain, our Head of Finance, to take this conversation further. Thank you, everybody. Thanks a lot.
Good morning, everybody. Before we start going into the results, let me share my experience of various NDRs I have held in last 1 year. The common questions, which have been asked to me why the growth is slow, what is happening to the convergence of EBITDA margin, why are you not doing inorganic, why are you not being more aggressive in the market? Now to address all this once for all in, I thought this is the right time to tell you what the ethos had been of Shree Cement and what is the cultural background and how we have progressed.
If you look at CRISIL data, our per capita cement consumption CAGR, from 2001 till date or 2023, if you may correct me. The CAGR is 7%. You will be surprised to note that during this period, the capacity of Shree Cement grew by 17%. So the challenge, which is being faced to us that why are you slow in expansion is probably misplaced. If we are growing more than 2.5x the market, what more do you want my friends?
Secondly, why are you so conservative? Why don't you look at inorganic? Why don't you look at other opportunities? Yes, point taken. But let me share with you another data point. Since 1985 till 2024 March, the internal rate of return generated by Shree Cement for its shareholders is north of 24%, we are exactly at 24.44%. Now this has been possible because of a very astute capital allocation strategy and also our penchant to protect the sanctity of equity. Please understand, once we go into the inorganic section, we may jeopardize the liability side of the balance sheet, which is the main value driver for equity shares. Asset side doesn't drive the value of equity my dear friend, it is the net enterprise value, net of debt, which is the equity value determinant. And that is why we prefer to grow organically because when you grow organically, when you don't borrow and when you don't dilute, then you are using one fungible asset like cash and the investments into fixed assets for better productivity.
Having said all this, let me give you another very interesting point. We have INR 3.6 crores equity shares outstanding, and we are sitting at a capacity of 56 million tonnes, which should go to 62 plus million tonnes within this financial year. If so factored, this means that for every share we have created 15 tonnes of capacity. And by 2028, every share will lead to 20 tonnes of capacity. I challenge all infantry to show me a single company, which has created this kind of equity value. And on top of that, more than INR 5,000 crores cash in the bank. I assure you that going to 80 million tonnes, we neither need equity nor we need debt. We have sufficient internal generations and cash balance to meet the entire CapEx requirement.
Now I open the floor to questioning. I wanted to address all these points so that everybody is in sync with the ethos and culture. Shree has never been an aggressive expander, it has never wanted to become #1 cement player in India. It has always aspired to remain the most profitable cement plant in India, and that is what we have achieved. And between the 2 years of lull in capacity creation, we were not sitting idle, as Mr. Akhoury pointed out, our renewables have gone to 480 megawatts. We are still actively working with 190 megawatts of additional capacity to be created. This takes the renewable share in the overall energy consumption from 56% correctly to 62%, 63%. Please appreciate that the arbitrage between a mix -- weighted average mix cost of energy and purchased energy is about INR 3, and you need about 66 units of power per tonne of cement.
Also, as Mr. Akhoury pointed out, the fuel cost has come to INR 182 NAR or per kilocalorie as received. We don't see at the moment any uptick in this. We have sufficient pipeline to maintain at least INR 182 per kilocalorie cost. So there is no threat from the fuel side. The cost side should improve. Capacity utilization has been the focus. We intend to reach the capacity utilization of 80%. We would have reached it last quarter, but for the fact that for 2 days, the new launch of brand event and the migration from old Oracle system to SAP has taken away about 3 to 4 days of dispatches. If you add 4 lakh tonnes of additional dispatch, our capacity utilization as on March 31 would have reached 80%. That is the aim we intend to achieve in '24, '25.
And hopefully, the prices should support us. I don't take a call on prices. So I don't take a call on EBITDA. But I have always taken a call on cost, and I can assure you that looking at current fuel trends, looking at overall logistic pricing and the work we are doing on logistics front should keep all these costs in check. Balance are very nominal costs, they don't make the cement business very sensitive.
I would also like to share one point, which is very important. By 2028, we intend to have rail connectivity at all our sites. Details statements are available. And I suggest and I strongly suggest that I have been privileged to be the part of Shree Cement journey for the last 40 years. Probably I understand this company good enough. All in -- all of you, all in country are invited my doors are open, come and understand first. You see risk is inversely proportional to knowledge. Increase your knowledge on us, then assess risk and take your decisions. You all are intelligent enough, you all analyze and understand the business enough.
But maybe you don't know the ethos and culture of this company so fully. So I invite each one of you to come and personally meet me just to understand how the company was managed for 40 years. I suggest all your financial questions be directed to Subhash jajoo. He is there, and I would like to clarify on all points if I have to at all intervene, I will do. And if you have a question directly for me, please feel free to say so. Thank you. I'm giving it to Jajoo.
Navin, we can start with the Q&A session.
[Operator Instructions] The first question is from the line of Amit Murarka from Axis Capital.
Yes. So on the Q4 like couple of things I wanted to clarify. First thing was what was the power revenue booked in Q4? And also, if you could just help understand the EBITDA that came from the Power segment?
Power revenue during the March was around INR 440 crores and roughly 10% is the EBITDA, which we get out of this.
Okay. To understand the fuel sourcing that you do for power. So the coal prices generally have corrected to, I think, INR 1.75, INR 1.8, given the imported coalers broadly. So is the EBITDA margin still at 10% with the lower fuel cost that you are seeing now?
Amit, I had explained to you we have very old power plants. Our thermal efficiency of the new power plants are very low. We are 1,200 kilometers land long. Please understand that my repair and maintenance incidents and my fuel -- though the fuel cost has come down and other auxiliary plus the efficiency of the plant.
[Foreign Language]
Sure, sure. Okay. And also other expenses seem to be a bit lower in Q4. So could you help understand like marketing spends are lower. What was the reason for that?
[Foreign Language] Component number 1 is filming, which is the largest component. Component 2 is regular payment and component 3 is our own ad expenses.
[Foreign Language]
Over next -- and this is not -- there's not a one-off adjustment. This will play out when we reach 80% capacity utilization because per tonne spare consumption goes down then. So this is a real saving, which we have attained. We have not attained any saving. We have deferred the advertising expenses only.
[Foreign Language]
No, that's helpful. And also lastly, on the volume growth, like generally 8% to us, it's not bad, but we saw companies like doing double digits this time. So is it a conscious that branding strategy related...
[Foreign Language] Because of those special events of Oracle to SAP and brand launch. [Foreign Language]
The next question is from the line of Sumangal Nevatia from Kotak Securities.
Congratulations on the sector-leading performance and Bhandari thanks for the reassuring of the commentary. First question on this railway connectivity at all side by FY '28. Is it possible to quantify what sort of freight cost savings can be expect over the next 2, 3 years from these initiatives? And also -- yes, maybe this is the first one, then I'll go ahead with the second one later.
Yes. The current differential between rail and road, rail is around INR 2.60, whereas road cost is around INR 3. And currently, we dispatch -- like in last quarter, 88% was through road and 12% through rail. So as by 2028, we should be able to make move much more material through rail. And accordingly, these cost economics will play. The differential is around 10% to 12% between rail and road on a per tonne per kilometer basis.
Okay. So I mean, something like 75%, 25%, gradually is what we are moving at?
Yes. We should definitely be able to move at least 25% through rail in next 3 to 4 years.
Okay. Got it. The second question is on this RMC foray. I know it was touched last time also. But if you could just explain overall what CapEx are we looking at over the next 2, 3 years? And what is the thought process and the return expectation on this invested capital from this foray?
Ladies and gentlemen, we have lost the connection for the management line. Please hold while we reconnect them. Thank you. Ladies and gentlemen, thank you for patiently waiting. We have the management line reconnected with us.
Maybe I'll repeat the question. I'm not sure if you heard it. So I wanted to understand a bit more on the RMC foray. I know it's a very small CapEx. But overall, what are we spending over the next few years? And what sort of return are we expecting on this invested capital?
So typically, at the current level, the plan is to go for about INR 100 crores per year for next 2 years. We are focusing on those cities where typically, the ready-mix demand is -- the market size is big. But we are also looking at some of the Tire 2 cities where RMC profitability is higher. Altogether, we would be targeting at about 5% to 7% of margins on a POPA basis of ready mix. And typically about 100 plants by end of the mid-term ambition of 4 to 5 years.
Understood. Got it. And just one last bookkeeping question. This depreciation quarterly has been quite volatile. This quarter, it was almost 2x the previous quarter. So what sort of run rate should we expect in future quarters and maybe full year also, if you could explain?
The depreciation was higher for this quarter because we have just in the month of January, we commissioned our Nawalgarh unit. And that is the reason for the higher depreciation for the quarter. Going forward, I think you should take around INR 1,500 crores to INR 1,600 crores of depreciation for the full year because a few more units will be commissioned in the current year. Guntur has already been commissioned in April. So it should be around these levels only for full year.
Okay. But that is similar to FY '24, ideally it should have increased, right?
So. Yes, it is similar...
This is Bhandari here. Listen, my friend. I had been telling all infantry that when you look at Shree Cement balance sheet, there is no point looking at PAT number. You please look at cash profit number. Depreciation is specifically designed for us because that is the best way of converting your nonfungible fixed asset to cash asset in a faster manner. You would like to add more fungible assets than non-fungible asset. If you want more fungible assets, then I need to necessarily depreciate by plant and machinery faster so that cash retention in the system is more, which helps us in setting up our own capacity from internal approvals itself. So there is no point you can say same.
[Foreign Language]
We have got 9 million tonnes of capacity this year.
[Foreign Language]
And that is why we are -- because they are rear-ended, we are saying that the depreciation level will be almost same. Got the point?
Next question is from the line of Indrajit Agarwal from CLSA.
I have 2 questions. First, any color on how the regional demand has been in your key markets in fourth quarter?
The regional -- as far as the current quarter is concerned, the demand growth was mainly in the Eastern market, where we grew by almost 20% year-on-year, followed by North, where the growth was around 5%. In South, there was a slight decline of around 9% to 10%. So overall, the growth was around 7%.
Sure. That's helpful, sir. And Thank you Mr. Jajoo for initially highlighting the cash flow and capacity expansion philosophy of the company. But if you look at the balance sheet, you have about INR 5,000 crores of cash -- INR 5,000 crores to INR 6,000 crores of cash that is sitting and your organic CapEx would more than be sufficient from your current cash flows, you'll throw up much more cash flows than what you need. So what is the thought process in the use of cash in the next 3 years?
What we do about the limestone options, which are frequent, we give them up or we borrow for them. You have to appreciate my friend. We are not in borrowing mode. We are not in equity raising mode. We would prefer to remain cash long to remain limestone long. CapEx, yes, you're right. I have INR 5,000 crores of cash, I'll be needing that for this year's CapEx, but the cash generated during this year will be retained for limestone we have auctions.
This is not -- you see, this is what, Indrajit, I wanted really you guys to understand. Come to me and to understand how we see this business. It is not possible. It is not a spreadsheet game, a 40-year culture has gone into it. We have reaped the benefits. I've given you a 24.5% IRR. I'm giving you 2.5x CAGR in capacity creation. I have given you a net cash balance sheet. How this has all happened? This has all happened because of the philosophy, because of ethos which we follow. [Foreign Language] You had asked for time somewhere, I think, next week or something, you are most welcome come and sit with me. I'll explain you how we have grown? Why we have grown? And why we pursue this strategy?
The next question is from the line of Prateek Kumar from Jefferies.
Congrats for great results and rate EBITDA per tonne. I have a couple of questions. Firstly, on CapEx. So in the press release, we have talked about going to 66 million tonnes capacity, probably means like 12 million tonne addition. You talked about 10 million tonne in the opening remarks. So what is not included there and which all capacity we are looking to commission this year?
Prateek, please understand. We promised you 62 million tonnes by March. We can extend to 65 million tonnes depending on how our grinding units start shaping up. So it is very difficult to pin-pointedly give you a [Foreign Language]. We'll deliver and then explain instead of proclaiming and then explaining.
So the Etah grinding unit is probably, which is we are looking at maybe 1Q '26. So that is the only difference, right?
Etah promised March '25. It has too much of logistical advantage, we can't afford to delay that project.
As we said, all these projects are going at full speed. Yes, most of them are to be commissioned in the last quarter of this year. There could be potentially some delays unanticipated and uncertain delays. And therefore, we have been cautious by the current speed, we expect that 9 million tonnes should be commissioned in this year itself -- 9 million to 10 million tonnes and rest in the coming year. Does that make sense?
Yes. That makes sense, sir. Secondly, there have been the press release around amalgamation of Shree Cement East Private Limited and North. I mean, so what is the strategy there? Why are we not amalgamating them in stand-alone operations and amalgamating separately?
You have to understand that both these companies are under new regime of tax enjoying a tax rate of 15%. Amalgamating them in Shree Cement will have a tax defer arbitrage. And we want to have an entity of 15% tax bracket so that whatever expansions we can do logically in those companies would keep on getting tax rate 15% only.
[Foreign Language]
Okay. Incrementally, sir, until now we are giving stand-alone volumes. So we should start looking at consol volumes and numbers from maybe, I don't know, from when they are looking to go meaningful?
[Foreign Language] maybe H2 onwards we will give you some consolidated number. But let the plant stabilize, right?
Right. And last question on RMC revenue expectation. I mean, we talked about INR 100 crores CapEx numbers, but any revenue expectations we have for like first 3 years outflow or something or maybe first year?
The RMC takes a while to stable. I mean, typically, it's a cycle time of 6 to 8 months before you were able to operate it at a certain capacity. The 5 plants that we have taken -- that we have acquired in Mumbai, they already have a customer base, so that could stabilize a little quicker. But the greenfield plants take some time to stabilize. In my experience and opinion typically 6 to 8 months before it starts becoming EBITDA positive.
And that's the way it will be in this. Give us this year. This year will be a crucial year because we are embarking on a new journey. And maybe by early next year, we will start projecting, we will be more accurate in terms of RMC. In any case, the proportion will be -- if I may use the word, not insignificant, but very small compared to the whole cement business that we are doing. We should not have much of a material impact on our results.
Sorry, if I can ask one more question on the premium segment. So we had a brand makeover like earlier this quarter -- last quarter. So what is the expectation on price improvement for our product-wise vis-a-vis like some of the other companies and proportion of our premium cement on overall sales in next 1 to 2 years?
Bangur is established in the month of January. It is still stabilizing in the market as a new brand. It takes a while to it. What I expect that Bangur Magna, Magna being our premium product for until now has one band premium product strategy. We should hopefully aspire to reaching somewhere around 12% to 15% of our total sales, yes. That journey continues. A lot of initiatives are being taken on how to improve Magna because that pool, you have seen us more active on the mass media like television and social media. We expect the pool to be creative. Magna is also one of the products with some of industry best standards on quality. So we expect that Magna pull should further enhance in the coming quarters, and it should reach about 12% to 15% of total sales.
The next question is from the line of Pulkit Patni from Goldman Sachs.
So my first question is on pricing. I mean because you spoke about the mix, it looks like despite having an adverse mix, your realization decline was actually lower than most of your competition. But my question is more broadly on this 5% to 6% Q-o-Q decline in pricing. Mr. Bhandari, you spoke about 40 years of experience in this industry. Can you think of a time period where between 2 quarters, prices declined 6%?
And how do you read this into how the pricing environment is evolving? Is it different than what it has been? Is it larger players being more competitive? So if you could just talk about how you're thinking about this pricing dynamic from a medium-term perspective? That would be helpful.
Reinventing the wheel. The price is completely dependent on demand-supply situation. So demand and supply, supply side, we are quite confident that it will not [Technical Difficulty] from macro environment. Today majorly government project and we also remind you that over the last 40 years, I have never taken a call on cement price, but it is impossible for anybody to think about [Technical Difficulty] any commodity price. If there is no point, we are just maintaining the stand that are we the most cost-efficient players and if it rains, everybody gets wet. If prices come down, yes, we will also get wet. Our operating efficiency is directly proportional to our capacity utilization. We expect capacity utilization of 80% this year. which should effectively result into a production of about 39 million to 40 million tonnes. At 80% capacity utilization, having everything constant, costs coming down, we expect EBITDA margins to improve.
But then it all depends in terms of how the top line moves and it is beyond anybody's control in the world to define the top line of any commodity business. And that is why I cannot define the EBITDA. I can tell you that we will remain the most cost-efficient player in the industry.
That's it. sir, I fully appreciate that. But I'm sure there would be a reason internally to think about why these prices are? Where they are? I'm just trying to understand what is your opinion...
No, just let me hold you there. No. even if we try to do anything, can we affect it? No, we can't. It's a completely market-based phenomena. I told you the laws of economics are supreme, demand supply is what determines the prices. Today, the demand is lull because of election or whatever reason some are laborers going for harvesting to their villages and voting as well. If the demand picks up, the prices also pickup. There are no dynamics, please, you are unnecessarily looking at industry dynamics, internal dynamics. There is nothing like that. The demand is down, that is why the price is down.
Let demand supply correct, prices will automatically see an uptick. [Foreign Language] The macro principle of demand and supply defines the prices.
[Foreign Language]
Sir, second question, what is the kind of coal inventory we have right now?
I don't know, I'll have to look at and come back to you. What is it?
It's on -- we have -- the current inventory as on 31st March is around 14 lakh tonnes, and the average fuel cost is as the same like 1.8...
What is the price? Does it include the pipe prices? It includes the pipe prices. 14 lakh tonnes is equivalent to how many months of -- some rough calculation. Up to October. So at least 4 months of inventory we are already having at this rate.
The next question is from the line of Raashi Chopra from Citigroup.
Just on the cost side, your realizations on a sequential basis have declined 6%, and you've got a flat EBITDA per ton. So the correction in the cost, is that largely attributed to the -- like you have marketing and the stores in states that you mentioned? Or is there anything more in this sequentially?
There are 2, 3 things, Raashi. Ashok Bhandari here.
One is, of course, [Foreign Language], the biggest beneficiary of my cost reduction is coal. The coal prices have come down by INR 0.70 over the year, INR 256 to INR 182.
Sir, sequentially, I am asking.
Quarter-on-quarter is INR 197 to INR 172.
INR 178...
Coal cost has actually gone up, I think, sequentially, little bit...
[Foreign Language] You are right, INR 179 to INR 182. [Foreign Language] that operating efficiency is directly proportional to capacity utilization. 79% capacity utilization [Foreign Language]
So I think what I'm trying to ask [Foreign Language], you reduced some of the expenses on the brand building, et cetera. So how do we look...
It got deferred. If the idol -- whosoever the brand idol doesn't have time to shoot [Foreign Language]. So it just got deferred. Paper advertisement and publicity, we went low because we wanted to see how the market react to our new brand strategy. It will also get recouped. Spares and spares -- stores in space is just onetime correction, small correction and should last because of higher capacity utilization, the per tonne spare cost comes down.
Got it. And sir, what was the -- I know the overall year, green power was 56%. For this quarter, what was the proportion?
Around 54%.
56% last year, that will [Foreign Language]. You are talking of quarter?
Quarter sir. 54%. This 188-megawatt that you're adding, this is likely to come through in the course of this year or next couple of years, like what are the time lines?
Up to March '26. Major part is March '25. I think about 100 megawatts is March '25.
148-megawatt is by March '25 and balance 40-megawatt is by March '26. The total -- this is a breakup for 188 megawatts.
And if you don't mind, possible to break up the 188 between like WHR and wind, solar?
Yes, sure. It's 34-megawatt is WHR and 114 megawatts is solar.
34 is WHR, yes. Your voice is...
Yes, 34 WHR, 114 megawatts is solar, and the next year, 40-megawatt is also solar. Hope that's clear.
That's clear. And just lead distance in this quarter?
435 kilometers.
435. So this has come down from 448 in 3Q.
No, in 3Q, it was 457.
So it's come down by nearly 20 kilometers.
Yes, yes.
The next question is from the line of Jashandeep Singh from Nomura.
Congratulations on a great set of numbers. I just wanted to understand, since our power and fuel cost will most likely remain stable. And we are -- Shree Cement is the lowest producer right now. So what is the cost driver from where Shree Cement can see...
[Foreign Language] capacity utilization going to 80%. [Foreign Language]
Right sir, understood. And sir, one more thing on the volume and demand scenario. If I remember correctly, last quarter, you have given a target of around 40 million tonnes for FY '26. So given we have already been...
FY '25.
FY '25 -- sorry FY '25 and we have already seen 1.5 months of demand scenario. Does that guidance still hold? And how is the demand in each of the regions you have seen in the 1.5 months?
There is no point throwing the towel so early in the year. Yes, the 1.5 months has been slow, but we expect H2 to be much faster because by that time, the government will be operational in full swing. All orders will be there and good demand should come. So at the moment, I'm guiding 40 [Foreign Language].
Understood. And just one more clarification. I think that Mr. Neeraj Akhoury and you also mentioned that most of the capacity expansion will come in the fourth quarter or the last leg of the FY '25, is that correct?
Correct.
The next question is from the line of Rajesh Kumar Ravi from HDFC Securities.
Thanks for detailed presentation in terms of numbers. Sir, my first question pertains to, could you split out what would be the CapEx expenditure in FY '25, '26? And how much was incentives booked in Q4 and full year FY '24?
What you have to understand is that to complete 6 million tonnes of capacity, we'll be needing about INR 6,000 crores. [Foreign Language]
Incentives booked in Q4 and FY '24?
[Foreign Language] booked in Q4 FY '24 balance sheet [Foreign Language]
[Operator Instructions]
The next question is from the line of Rahul Gupta from Morgan Stanley.
I have a couple of questions. Sorry, if I missed earlier, can you help me with the realization number for the quarter?
Realization number means cement realization, power realization, what you want my friend?
Cement realization, sir.
Yes. The cement realization for March is INR 4,721. And for last year, it was INR 4,848 per tonne.
My second question is, I know demand has been relatively weak in the first 1.5 months of this quarter. Can you help me understand how prices have behaved across your home geographies that will give us clarity in terms of how demand has been across markets?
Yes, stable to weak. Pricing is stable to weak.
This is versus the March exit prices or versus the quarterly average?
March exit prices.
And we have been seeing stable to weak across markets, right?
Well, you see, there are various markets where there are still pockets of lucrative pricing power. So it will be very difficult. We'll have to go into an analysis. As far as the company is concerned, we look at the average gross realization. So average gross realization is lower than exit March '24.
The next question is from the line of Parth Bhavsar from Investec.
Congratulations on a good set of numbers. So I just have one question. Just wanted revenue contribution from Power segment last year, Q4 FY '23?
INR 440 crores.
This was this year, right, INR 440 crores. I wanted last years' number.
Q4 number. Last year was INR 343 crores, March '23 quarters...
And one can assume same 10% EBITDA margin, right? Okay.
The next question is from the line of Navin Sahadeo from ICICI Securities.
Yes. Sir, just one question. This was more a bookkeeping in the sense the difference between the consolidated and stand-alone, where I'm seeing the difference on the revenue front is a very stable INR 330 crores, INR 320 crores in the past 2 quarters or even on a year-on-year basis, revenue difference is about INR 300 crores. But EBITDA for the quarter difference is a good INR 95 crores versus INR 33 crore -- INR 30-odd crores maybe in the previous quarter. It used to be really marginal -- like lower or marginal number in the past. Could you just help us understand?
We have been fortunate in our Ras Al-Khaimah operations, UAE operations.
Is there any one-off or how should one...
I feel it is one-off, but let time tell.
Sure. I just wanted to clarify on this because the previous participant had asked about -- one of the previous participants about consol numbers. So does this consolidated number has any volumes or benefits of any domestic expansions as such?
Come back again. What do you want [Foreign Language]
So exactly. So Nawalgarh is not in cosol, right? It's not a separate subsidiary, it is in the stand-alone number captured.
[Foreign Language]
Agree. I was only saying I'll just rephrase, stand-alone Nawalgarh [Foreign Language] That's all the clarification.
[Foreign Language] They're in Shree cement itself. So obviously, it is there in the stand-alone. Anything which is there in our subsidiary, East, like the Purulia unit, that will not come in the stand-alone and come in the consol. But anything which is there in Shree Cement will definitely be there in the stand-alone numbers.
Next I just have one closing remark to make. Once you guys come and meet us or you have more meetings with us, you will understand that we have the uncanny habit of pulling rabbits out of the hat. So don't think that we have disclosed everything what we wanted to say or what we are planning. Look for further surprises.
The next question is from the line of Ashish Jain from Macquarie.
[Foreign Language]
Just railway lines, what is the progress I wanted to understand?
[Foreign Language] That chart, I will mail you tomorrow. I'm in Delhi today, I'll mail that chart to you. And I'll take a WhatsApp and send it to you.
Ladies and gentlemen, that was the last question for today's conference call. I would to hand the conference over to the management for closing comments.
Thank you all our shareholders and all the -- everybody in this quarter's call. We are delighted to see that the numbers were pretty large. I see about 250 people to get into the call. Thanks a lot. As it has been said, we have -- we will be progressing very strongly on all the topics that you all have raised. What we have committed is what we have committed and we will deliver that. But clearly, the effort will be to exceed your expectations as well. With that, we will bring this call to an end. Again, thanks a lot and see you next quarter.
On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.