The Ramco Cements Limited — Call Transcript 2022

Aug 19, 2022

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Corporate Office: Auras Corporate Centre, V Floor, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, India. Phone: +91-44 28478666, Fax: +91-44 28478676 Web Site: www.ramcocements.in THE RAMCO CEMENTS LIMITED Corporate Identity Number: L26941TN1957PLC003566

19 August 2022

National Stock Exchange of India Limited, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051.

Scrip Code: RAMCOCEM BSE Limited, Floor 25, “P.J.Towers”, Dalal Street, Mumbai – 400 001. Scrip Code: 500260

Dear Sir,

Sub: Transcript of the Audio Recording of Emkay Confluence

• Ref: Disclosure under Clause 15(b) of Para A, Part A of Schedule III, read with Regulation 30 of SEBI (LODR) Regulations, 2015.

In continuation of our letter dated 12[th] August 2022, providing you the weblink of the Audio Recording of Conference Call of Emkay Confluence held on 12.08.2022, we attach the transcript of the conference call and the same is also made available at –

http://www.ramcocements.net/ramcocements/EarningsConferenceCallTranscript/Emkay-Conf-Trans-12082022.pdf

Thanking you,

Yours faithfully,

For THE RAMCO CEMENTS LIMITED,

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K.SELVANAYAGAM SECRETARY

Registered Office: “Ramamandiram”, Rajapalayam – 626 117. Tamil Nadu

WEBVTT

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Harshal Mehta: Hello yeah.

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Mehak Rohra: Hello Hello hello, can you hear me.

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Harshal Mehta: I can hear you.

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00:04:56.040 --> 00:04:56.370 Mehak Rohra: Hello.

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00:04:58.560 --> 00:04:59.280 Harshal Mehta: hello, Mr able.

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00:05:02.310 --> 00:05:02.730 Mehak Rohra: To have a.

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Mehak Rohra: or any channel could get slower.

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Harshal Mehta: slower.

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00:05:13.260 --> 00:05:13.560 Mehak Rohra: again.

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00:09:56.310 --> 00:09:56.700 emkay123: Hello.

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00:09:59.670 --> 00:10:00.030 Harshal Mehta: Hello.

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00:10:03.510 --> 00:10:03.750 Harshal Mehta: Hello.

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00:10:10.680 --> 00:10:10.950 Harshal Mehta: Hello.

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00:10:12.240 --> 00:10:12.660 emkay123: yeah.

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00:10:17.100 --> 00:10:17.340 Harshal Mehta: Hello.

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00:10:18.390 --> 00:10:18.990 emkay123: Hello.

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00:10:24.300 --> 00:10:24.960 emkay123: Hello.

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00:10:55.560 --> 00:10:55.890 emkay123: Hello.

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00:10:57.390 --> 00:10:58.020 emkay123: Everybody.

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00:10:59.490 --> 00:11:00.090 emkay123: Hello Hello.

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00:11:05.010 --> 00:11:06.390 emkay123: hello to our.

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00:11:14.250 --> 00:11:14.490 emkay123: But.

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00:11:21.840 --> 00:11:23.160 emkay123: Not the ball for him.

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00:11:31.230 --> 00:11:32.130 emkay123: Do.

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00:11:48.810 --> 00:11:49.680 emkay123: No problem.

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00:12:25.170 --> 00:12:25.500 Harshal Mehta: Okay.

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00:15:17.760 --> 00:15:18.000 Hello.

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00:15:57.540 --> 00:15:57.870 Priyanka Bhagnari: Recording.

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00:15:59.760 --> 00:16:00.180 emkay123: i'm gonna be.

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emkay123: Okay, to.

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emkay123: Have.

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00:16:10.740 --> 00:16:12.780 emkay123: High quality management now here the purchase.

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00:16:13.680 --> 00:16:13.980 Okay.

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00:16:15.510 --> 00:16:15.810 emkay123: yeah.

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00:17:27.930 --> 00:17:28.290 Dharmesh Shah: Hello.

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38 00:17:32.310 --> 00:17:32.730 Vaithiyanathan: morning.

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Dharmesh Shah: So we'll wait for a minute people to join in, and then we will start.

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yeah.

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Dharmesh Shah: Good morning, everyone the hell away.

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Dharmesh Shah: From consuming.

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Dharmesh Shah: process, I will hand over to the management for their opening remarks, and then we will have a question and answer session over to you, sir.

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Vaithiyanathan: Unless we can directly go to the question answer session because we've already covered the earnings call we have covered that.

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Vaithiyanathan: We can, to save time, we can quickly go to the.

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Dharmesh Shah: Show Sir, I request participant, if you have any questions, please raise your hand, or you can unmute your line and ask the questions.

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Shivani Furia - SBI Life: Good morning services shirvani from SDN life.

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Shivani Furia - SBI Life: So we've done and fantastic for volume growth this quarter, it was almost up more than 50% up.

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Shivani Furia - SBI Life: On your on your bases and even sequentially if we seen all companies have a declining volume, as some better the much water, but our volumes were actually up.

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Shivani Furia - SBI Life: sequentially also so I understand that you know the markets east and south markets that demand was very good, but I wanted to understand or you know what are the initiatives that the company speaking, or because of which you know we've got such fantastic volumes.

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Vaithiyanathan: See one big initiative they've been talking to for a long time, is the right products for right applications, so this we have been.

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Vaithiyanathan: we've been talking about this for quite some time, so this is a lot of evidence now and the volume growth related to first quarter is to some extent.

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Vaithiyanathan: Due to the base effect of the previous year squatter because previous a first quarter was severely impacted by in the south, mainly due to discovery issues, so the base was no so that's why the the related growth is much higher, as far as our company is concerned.

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Vaithiyanathan: Then boring this comedy show issue the right products for light application started yesterday, so a lot of students.

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Shivani Furia - SBI Life: federal when you said right products for right application to do.

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Shivani Furia - SBI Life: Some further light, I mean what is the company actually knowing how is the company pushing those new products are specialized product in the retail market if you can just throw some light on next.

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Vaithiyanathan: So you actually we have a water level all products we have.

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Vaithiyanathan: This is not only for retail, we have also for build a segment also there is non trade also.

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Vaithiyanathan: To these products we've done over a period of time.

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Vaithiyanathan: For the last two to three years so via all the products are now available.

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Vaithiyanathan: So we have a very strong robust r&d Center and the help of r&d and we have dealt with these variants these these products are actually to suit certain customers.

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Vaithiyanathan: needs specifically so also be understood the customers, the customers.

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Vaithiyanathan: needs musically and according to according to their mates we will customize the products, so far we have customized start on all products which are broadly you know cater to the different.

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Vaithiyanathan: types of users in the construction field so whether it's a trade or Monterey be able to products for each category, so that really helps us.

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Shivani Furia - SBI Life: So far, is it.

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Shivani Furia - SBI Life: Okay, to say that you have gain market share also.

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Vaithiyanathan: yeah obviously we've gained some other channels in this process.

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Shivani Furia - SBI Life: OK OK, so the beast specialist products do they.

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Shivani Furia - SBI Life: own initial premium for you in terms of fabric.

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Vaithiyanathan: yeah obviously but.

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Vaithiyanathan: on the same side know be also include some additional cost in terms of packing and the cost of production also is a slightly higher or the normal chick products.

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Vaithiyanathan: So i'd love for gst you need to show the world all these things, the net effect will be 510 rupees per bag, the margin reseller margin will be available.

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Shivani Furia - SBI Life: So what is the final chance of these specialized products in our current volume.

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Vaithiyanathan: So you currently our showers are over 42 to 44% so we hope to receive two to 40% of the next two three to five years.

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Shivani Furia - SBI Life: Is a bulldog.

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Vaithiyanathan: And that is what our target is.

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Shivani Furia - SBI Life: OK OK.

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Shivani Furia - SBI Life: Okay.

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Aditya Chheda_InCred Asset Management: hi again go ahead.

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Priyanka Bhagnari: You.

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Aditya Chheda_InCred Asset Management: said, would you say branding as a pricing power strategy is exclusive to the top four or five players or it is applicable for you or others.

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Vaithiyanathan: See branding is also an important.

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Vaithiyanathan: factor for pricing, but what is the brand building exercise is finally longer so long term.

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Vaithiyanathan: Actually, so definitely one one brand consciously know, improve its image in the marketplace so definitely can reach additional premium.

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Vaithiyanathan: for a period of time.

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Vaithiyanathan: So you not only the promotional activities, but it should be, it will be supported by the quality and.

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Vaithiyanathan: It should be acceptable by the customers my class is.

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Aditya Chheda_InCred Asset Management: Short and can you command in terms of.

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Aditya Chheda_InCred Asset Management: inventory, how is the world sourcing strategy for your company apologies if there is any reputation, because I haven't acted before, but I just want to understand overall.

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Aditya Chheda_InCred Asset Management: How do you go about procuring the inventory that you use, and if you can share them assessment.

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Vaithiyanathan: Of what inventory you say mean to save fuel in metairie.

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Aditya Chheda_InCred Asset Management: Yes, yes.

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Vaithiyanathan: Okay, there is no reputation for sourcing in one, three, so it all driven by the market, basically, but of course know surely lobster declare wilton get a better price from the suppliers so that's it, there is no big.

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Vaithiyanathan: Differences there as well as for the sourcing is concerned, we fight to fight to $10 even though.

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Vaithiyanathan: We difference, and it also depends on what the quantum of volume you buy from one particular, one that makes the difference motivations that's all.

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Aditya Chheda_InCred Asset Management: So predominantly in South, how does the sourcing happen for you.

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Vaithiyanathan: will be up also important for fuel sort of school is concerned 100% to be reporting in terms of the coke we use ministry, and we also source.

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Vaithiyanathan: Through importance.

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Aditya Chheda_InCred Asset Management: and

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Aditya Chheda_InCred Asset Management: In terms of incremental capacity addition, can you throw some lights as to.

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Aditya Chheda_InCred Asset Management: What is the.

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Aditya Chheda_InCred Asset Management: Do we have capacity in brownfield or autonomy greenfield and if you can use some numbers to just show us our own roadmap, as to how the company's going to progress from where it is today.

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See actually.

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Vaithiyanathan: capacity for currently capacity is increased up to 40 million transposed 40 million times so last year, we talked around 11 million times only types of seats will you Oh, whereas we add.

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Vaithiyanathan: capacity of about 13.

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Vaithiyanathan: or 14 million times capacity in terms of capacity now after commissioning.

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Vaithiyanathan: third line of change, the problem we are capable of producing around a particular tax.

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Vaithiyanathan: plan for different types of products so, particularly the.

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Vaithiyanathan: capacity has jumped.

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Vaithiyanathan: From 30 to 40 million bucks to 40 million times this year, so this is about.

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Vaithiyanathan: His capacity edition, so we spent around the photos are trying to cross the last three four years for to build this capacity, so this is what we're building the capacity for us, so what X what what what exactly you wanted this connection for additional information.

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Aditya Chheda_InCred Asset Management: focus from here would be to ramp up from.

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Aditya Chheda_InCred Asset Management: 11 million to 14.

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Vaithiyanathan: yeah we will be focusing on the purple volume from 7 million to 40 billion times and, as I will do is, it will also be.

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Vaithiyanathan: expanding our capacity father, because we are one some option in the lecture doctrine in Canada, so we will be putting up a plant or they in what three four years to 45 years down the line, so I had to be me also come up with some some grinding plant is suitable.

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Vaithiyanathan: To a to use the law So these are all the plans.

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Vaithiyanathan: Are the three 4 million that's in the next two.

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Vaithiyanathan: extra five years down the line.

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Aditya Chheda_InCred Asset Management: For that immediate short term that is consolidation of the existing capacity that.

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Vaithiyanathan: We have a huge capacity available for the playstation will be will be focusing on that.

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Aditya Chheda_InCred Asset Management: So thanks are you coming back.

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Priyanka Bhagnari: participants are going to raise their hand in order to ask a question, or they can either question in the chat box.

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Dharmesh Shah: I would like to take two question so now SP all the companies are talking about the capacity expansion and the volume growth.

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Dharmesh Shah: Second, you said the other company strategy in terms of the volume growth, and that is also without diluting industry pricing dynamics are how we would like to compete with peers, in terms of the volume growth.

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Vaithiyanathan: So you know our capacities know increase to continually enhance.

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Vaithiyanathan: and other three to four months.

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Vaithiyanathan: down the line it's possible once we put up a mother planters integrated plan.

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Vaithiyanathan: With his new life, thanks to a long term lease so another four to five years another.

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Vaithiyanathan: Four 5 million tons really is possible, so we comfortably market this in existing markets se and some parts of.

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Vaithiyanathan: southern part of our service is a desert desert all the strategy for disagree to cyrus.

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Dharmesh Shah: Here, because one of the larger player like siri cement is also talking about the aggressive expansion in the south market and in the Russian media interview they they commented that the.

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Dharmesh Shah: They are also very much positive, especially in the south and central market and are we see this as a fear for the existing players, because the history is not to be one of the aggressive player.

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Dharmesh Shah: In the industry.

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Vaithiyanathan: See, let us, let us talk about or performance basically one performance.

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Vaithiyanathan: See let's not talk about the mothers.

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Dharmesh Shah: shush shush.

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Dharmesh Shah: Secondly, what at the irs we are targeting in terms of the capacity in terms of the capex, because if we see the last five to seven years, whatever capex we have done.

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Dharmesh Shah: Our return ratios are very poor in terms of the that capex if i'm not mistaken, it is in the range of 10 to 12% only.

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Dharmesh Shah: So I understand that the capital employed has happened in the eastern market where the profitability will be relatively lower than the south market, but what are the internal rate of return, we are targeting on of a capex.

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Dharmesh Shah: See the issue.

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Vaithiyanathan: That interest rate of return for a.

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Vaithiyanathan: Specific market was we cannot expand, not only as no company can expand it only gets averaged out and this irr.

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Vaithiyanathan: thing cannot work in sport industry, what we can look at these reasonable larose for in the longer period of time.

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Vaithiyanathan: So that's, so we should do because, is it a capital intensive and long gestation period of construction.

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Vaithiyanathan: and very volatile price conditions and very volatile commodity prices So these are all the inventor innate with these industries, has been.

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Vaithiyanathan: Facing for quite some time, so what being a regional regional is the commodities, so it becomes very difficult to have one standard formula we cannot measure the performance through one standard I a disability difficult.

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Dharmesh Shah: carrot cake, but say, even if we look at from a long gestation period so So is there any specific number which we are, we are targeting that the this will be the bare minimum, we can, what we are.

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Vaithiyanathan: Because no, no such a.

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Vaithiyanathan: See, even if you make assumptions, to work out some I are all hypothetical sometimes the numbers are achievable sometimes many times, the numbers are not achievable.

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Dharmesh Shah: Carry okay.

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Dharmesh Shah: Like in the queue and I will share in the eastern Asian market is significantly increase, and it is in the range of around 30% so going forward are we expecting it will again normalized to 18 to 20% or or at least you caught it likely to be in the higher range only.

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Vaithiyanathan: See, we cannot take a comment, right now, because it all depends on the price price situation, the prices continue to be good, healthy, then we will will try to know take take as much as possible the prices are much better it's out.

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Vaithiyanathan: we'll focus on South more so it it all depends on the prices.

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Vaithiyanathan: And the what the margin that we are getting from each each market, so our objective is to maximize the budget so we'll push the volume, where the markets are more.

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Dharmesh Shah: kind of character.

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Dharmesh Shah: Thank Thank you, Sir.

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Shivani Furia - SBI Life: yeah search of American.

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Shivani Furia - SBI Life: So Sarah.

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Shivani Furia - SBI Life: Could you let us know what is the kind of you know, price so some enterprises so.

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Shivani Furia - SBI Life: Currently, that are going on in our market we've heard that there has been some old backs in all the markets, so if you can give us some color on that.

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Vaithiyanathan: See actually the prices, if you look at the prices in South.

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Vaithiyanathan: of crisis has been very good in the month of April.

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Vaithiyanathan: And there was some roll back in the month of May.

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Vaithiyanathan: And there was a father who back in the month of June and the some wrap up of pricing July, so this is what what is our payment.

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Shivani Furia - SBI Life: provider from increase in July.

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Vaithiyanathan: There is a there is increasing delay when compared to June.

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Okay.

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Shivani Furia - SBI Life: i'm kind of.

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Vaithiyanathan: History, if you look at.

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Vaithiyanathan: The prices are really good in April.

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Vaithiyanathan: me the most severe correction.

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Vaithiyanathan: And the dude was also muted and delay, there was an interesting.

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Shivani Furia - SBI Life: We have an increase in July.

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Shivani Furia - SBI Life: You know motifs fence out market was this document.

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yeah.

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Shivani Furia - SBI Life: Okay Okay, I know I said coming to just.

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Shivani Furia - SBI Life: pause.

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Shivani Furia - SBI Life: So, what was the consumption costs last quarter.

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Vaithiyanathan: We see all those things will give it to the investor presentation.

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Vaithiyanathan: Anyway, I share it to you, so the average.

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Vaithiyanathan: Cost was around 120 dollars.

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Shivani Furia - SBI Life: Okay.

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Shivani Furia - SBI Life: So Sarah, you said that for you cost will start start reducing from September onwards right.

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Vaithiyanathan: Correct because the prices have picked in the month of July.

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Vaithiyanathan: So low inventory pay effectively be.

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Vaithiyanathan: Starting in August so from September onwards, we can see the reduction in fuel prices.

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Shivani Furia - SBI Life: So honorific going services or maybe four 5% increase in no fuel costs, we can expect.

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Vaithiyanathan: yeah 5% I can take 5% increase.

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Shivani Furia - SBI Life: some light on green power and.

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Shivani Furia - SBI Life: You know why is that so the company has or is building.

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Vaithiyanathan: See tie in data from full operations there, in as far as who is is concerned, which is about 27 mega what which is running now and in Carmel disarm with a paper, what else who else is.

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Vaithiyanathan: going to be ready anytime now so that's all we have a phosphorus the power, who is concerned, tomato plants we we don't have much of a little jealous, but we have we have different forms of who is.

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Vaithiyanathan: In a terminal plants, so this is about who then we are, we are having a board certified megawatt of power, and it was originally connected to the grid, which we are slowly removing it, and then we are trying to use it in.

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Vaithiyanathan: captivity, so that way, the three power consumption.

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Vaithiyanathan: plan production we go.

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Shivani Furia - SBI Life: So far in totality what is the percentage of green power or aerodynamics.

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Vaithiyanathan: See, we are in the if you look at the this year as a whole.

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Vaithiyanathan: We we may we may even touch around 40 40%.

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Vaithiyanathan: from three things or says.

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Shivani Furia - SBI Life: Okay that's good.

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Shivani Furia - SBI Life: To.

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Shaurin Shah - ENAM: know.

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Shaurin Shah - ENAM: Sir oh Hello.

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Shaurin Shah - ENAM: yeah so you mentioned about.

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Shaurin Shah - ENAM: expanding our capacities to put an integrated plan in karnataka So could you give a rough ballpark number, what kind of greenfield capex so we would be looking for in dollar per 10 basis.

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Vaithiyanathan: Points is really to give the number because land acquisition is here to start so events once we come to all the price of 10 will be able to stay prices are very peak now, so we need we don't know what will be the prices next two to three years so we'll throw will not be able to.

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Vaithiyanathan: throw some light on that, as of now probably we to be around the.

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Vaithiyanathan: Most hundred $210 that's what my my rough estimate is.

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Vaithiyanathan: OK interesting land everything.

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Shaurin Shah - ENAM: Okay Okay, and so are we looking for any other limestone mind sending any other regions.

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Vaithiyanathan: That we are, we have been trying so one we we were able to take so other agents are also we are participating, let us see.

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Shaurin Shah - ENAM: Okay, so currently, are there any bids going on in the region.

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Vaithiyanathan: No other regions, as of now, there is no.

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Vaithiyanathan: Upcoming auction one one more upcoming opportunities coming in the Canada region again.

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Vaithiyanathan: Okay, oh.

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Vaithiyanathan: The auctions are qualified and subsequently was postponed, so this is the current status of option.

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Shaurin Shah - ENAM: Okay answer on or not inorganic capex the are we looking for any.

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Shaurin Shah - ENAM: capacity in different regions.

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Vaithiyanathan: yeah we are open to look at this not only way of.

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Vaithiyanathan: acquisition, but unfortunately the prices are not that common today to these units potential so that is the issue that is that we are experiencing so far.

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Shaurin Shah - ENAM: Okay Okay, and so just one technical part of in on the pet coke side, do we use 5% so for coke or we can also use a person surfer cook.

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Vaithiyanathan: We have been using up to a point 5%.

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Shaurin Shah - ENAM: OK OK.

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Vaithiyanathan: To lakewood 4.5 to 8.5 we have been using.

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Vaithiyanathan: We can we are, we are getting the materials in good the categories so depending on availability and the prices, we can use it, but our process can handle up to a point 5%.

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Shaurin Shah - ENAM: Okay, so this eight 8.5% so for us or procure indigenous domestically.

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Vaithiyanathan: As well as Saudi Saudi pitfalls are.

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Shaurin Shah - ENAM: The petco and and how much discount is this 8% petco versus 5% petco.

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Shaurin Shah - ENAM: generally.

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Vaithiyanathan: See generally to be $10 10 to $15 more 8.5 cents a 6.4 point 5% but finally now the prices on the riverside 4.5% silver prices.

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Vaithiyanathan: Attractive by $10.

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Vaithiyanathan: For.

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Vaithiyanathan: Two months, which is, which is very strange.

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Shaurin Shah - ENAM: yeah okay Okay, so this really this about eight 8.5% is broker from Saudi and the pending is from us and.

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Shaurin Shah - ENAM: Yet geographies.

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Vaithiyanathan: yeah okay okay.

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Shaurin Shah - ENAM: Great Thank you, thank you.

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Vaithiyanathan: Sorry.

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Priyanka Bhagnari: Meanwhile, I like to take a people.

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Vaithiyanathan: Suddenly, your voice is not clear.

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Priyanka Bhagnari: Hello America.

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Vaithiyanathan: Yes, please.

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Priyanka Bhagnari: So my first question was what else is available with the company to include a relation, as well as the question from your.

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Vaithiyanathan: Sorry come back again.

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Priyanka Bhagnari: I would love to work on really was available with us to improve our religion, as well as the course material from here on.

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Vaithiyanathan: Sustainable voice is not audible Sir.

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Priyanka Bhagnari: And just a second.

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Harshal Mehta: hi Mr.

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Vaithiyanathan: yeah please for this lake como una Cosa.

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Harshal Mehta: I said I was asking what are the believers available with us to improve relation from your own.

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Vaithiyanathan: see it is driven by market prices are driven by the market, so a lot of sleepless these only demand and supply and the prices.

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Vaithiyanathan: As well as the prices that by religion is concerned, of course, for cost management and we can, there are a lot of scope.

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Vaithiyanathan: To reduce our costs and we can reduce costs through the.

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Vaithiyanathan: combination of fuels and the right time by the purchase of the fuel right time, the prices are low and building up a more creative and the prices are low, this kind of strategy if you follow, then you can manage posture some extent.

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Harshal Mehta: Thank you, Sir, so my second question was what is the pricing differential you currently between the south and east market.

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Vaithiyanathan: is not compatible, you have actually south and east.

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Vaithiyanathan: me to return to the absolutely distance per hour per bag basis.

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Vaithiyanathan: For the month of July.

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Vaithiyanathan: We have about 4050 rupees difference will be the.

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Harshal Mehta: focus and the profitability so.

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Vaithiyanathan: Profitability will not be able to share it is a secret.

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Vaithiyanathan: You didn't waste profitability will not be able to tell this is classified information.

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Harshal Mehta: No, Sir, Sir, Sir, my last question was on the limestone so, can you update us on the line of duty, with the company.

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Vaithiyanathan: We are huge limestone deserves and options as to because will be.

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Vaithiyanathan: be coming in the state of Florida so on the position we have a sufficient limestone for another 30 years.

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Vaithiyanathan: So we also have a sterling, we also have a limestone bearing lines for each options we can vector so as far as this lunch home security is concerned, we are, we are well protected for another seven to 7080 years we are.

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Harshal Mehta: You.

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Harshal Mehta: Using the first thing we need to use correct.

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yeah.

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Harshal Mehta: Okay okay Thank you, Sir, so that's all from my side.

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Dharmesh Shah: Yes, I.

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Dharmesh Shah: Go with a couple of question so one thing we mentioned that the we are open for inorganic acquisition so.

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Dharmesh Shah: Sarah are we looking any specific markets, or are we looking in our existing market only, or are we are looking from a diversified perspective.

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Vaithiyanathan: Any any market in India.

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Dharmesh Shah: Okay Okay, then, secondly, it said what either costly versa available with the company or, if I can say that the now the.

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Dharmesh Shah: We are having a new clients, which are getting commissions and so So what are the efficiency difference here between the vintage plant and the new clients and what kind of the savings, we can expect from this say any quantification would be here.

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Vaithiyanathan: See, for example.

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Vaithiyanathan: The degree Porsche or if it goes up the cost will come down and, once these are up some.

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Vaithiyanathan: modernization is done during the cost savings for us both a 7080 cross per annum alone will come tomorrow.

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Vaithiyanathan: and

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Vaithiyanathan: that's all these are all the major customers and once Cardinal comes.

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Vaithiyanathan: With a, why does the cost will come down karate.

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Vaithiyanathan: The plant is running without a double hrs ones who is Commission another 200 rupees per ton of think.

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Vaithiyanathan: overall cost will come down.

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Vaithiyanathan: To these are all the major cost, he was available.

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Vaithiyanathan: For us, the next couple months.

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Dharmesh Shah: Correct correct answer one last thing is the TV how we would like to balance between the growth and leverage over the coming yasmin's.

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Dharmesh Shah: Can we expect that the, the focus will be first in a couple of years now is to getting the cash flow from the new plans and to deliver the balance sheet and then again, we will look for the aggressive growth perspective is this the correct understanding set.

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Vaithiyanathan: Is not aggressive we never follow others you kind of strategy.

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Vaithiyanathan: yeah actually.

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Vaithiyanathan: See, if you look at in the past we have.

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Vaithiyanathan: We have created capacity through.

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Vaithiyanathan: That leveraging then we become debt free by then we learn next cycle of psychometric assessment that is a we have been following so we now we've created a capacity, only be focusing on do raging once D leveraging two parties done then we'll slowly.

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Vaithiyanathan: Go for the next cycle of skeptics that's what the renewal rate, so we focus on this capacity creation again.

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Dharmesh Shah: Okay.

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Dharmesh Shah: Thank you, thank you, sir.

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Dharmesh Shah: participant, please note this is the final reminder for the questions if anyone has a question, please raise your hand or can unmute your line and ask the question, this is the final reminder.

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Aditya Chheda_InCred Asset Management: I study in your assessment, which would be the two three key factors, you would look for an inorganic opportunity.

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Aditya Chheda_InCred Asset Management: example you can take the south region, of course, there are many variables, but which are the first two three parameters, you would want to assess.

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Vaithiyanathan: See one is the one is a market.

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Vaithiyanathan: combinations availability and.

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Vaithiyanathan: The.

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303

Vaithiyanathan: Age of the plant and the the overall health of the plant, these are all the things, of course, we know the market dynamics in the markets, so if they are then the important factor will be the price of a price.

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Aditya Chheda_InCred Asset Management: So do we have a certain price band, where we feel that it would be comfortable I mean just hypothetically.

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Aditya Chheda_InCred Asset Management: What will be the right price for you, if you can share a man.

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Aditya Chheda_InCred Asset Management: Of course, lower the better, more comfortable.

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Vaithiyanathan: debut CD DVD from place to place region to region, and it all depends on the.

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Vaithiyanathan: risk and return, so it is very there is, there is no standard kind of.

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Aditya Chheda_InCred Asset Management: fair but for the client probably.

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Vaithiyanathan: depends.

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Vaithiyanathan: On the depends on the quality of us and basically under the related limestone assets attached to that that's only other parameters which we have to the which we have to look into.

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Vaithiyanathan: Mainly risk and reward Emilio to see the depending on that patrick's we can.

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Vaithiyanathan: We can indicate the price and the market combinations without which you know it is difficult to tell quantify this.

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Vaithiyanathan: say that no 120 dollars and across the India.

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Vaithiyanathan: So one of the ingredients out at different price is a lot will be different price east, where we price.

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Vaithiyanathan: This will be different price.

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Aditya Chheda_InCred Asset Management: I was just referring to South so I mean you can take a example and then put a number to it that way.

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Vaithiyanathan: When it comes to me that there is there are more seats available in South.

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Aditya Chheda_InCred Asset Management: and east.

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Vaithiyanathan: East also studies, there is no limestone.

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Vaithiyanathan: Ladies and central.

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Vaithiyanathan: Some assets on their.

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Vaithiyanathan: list also know, almost a bunch of asset quality as it's available.

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Vaithiyanathan: Was there anything else I don't want to speculate on this anymore.

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Aditya Chheda_InCred Asset Management: Sure thanks that's it.

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Priyanka Bhagnari: Can you.

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Aditya Chheda_InCred Asset Management: know.

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Dharmesh Shah: It seems there are no further questions, I think all the participant and management for joining this call.

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Dharmesh Shah: We are we are end up the call Thank you Thank you everyone.

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Vaithiyanathan: arrest, can I can I read it again.

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Dharmesh Shah: yeah shorter yeah.

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Vaithiyanathan: Okay, thank you.

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Aditya Chheda_InCred Asset Management: Thank you so much.

334

00:53:53.490 --> 00:53:54.420 Priyanka Bhagnari: Recording now.

335 00:53:57.300 --> 00:53:57.600 Priyanka Bhagnari: Hello.