The company has conducted a conference call on 28th May 2018 to discuss the financial performance for the fourth quarter ended March 2018, FY18, and way forward. Mr. Jamshed Naval Cooper –Managing Director and Mr. Anil Sharma –Chief Financial Officer of the Company addressed the conference call.

• Indian Cement Industry reported production volume growth of 14% in H2FY18 after a decline of 1% in H1FY18. For FY18, cement production increased by 6% Y/y; growth was also driven by low base due to demonetization in FY17. As on 31^st March 2018, all India installed cement capacity of ~465 MT. During the same time, HCIL's sales volume increased by 4%. HCIL reported cement capacity utilization of 85% against industry average of 65%.

• The company reported 41% incline in net profit to Rs 52.1 crore on the back of 15% growth in top-line to Rs 531.3 crore in Q4FY18. For FY18, company reported 75% incline in net profit to Rs 133.2 crore on the back of 10% growth in top-line to Rs 1889.5 crore

• The company sales volume inclined 4.8% to 12.70 lakh tonne in Q4FY18 and EBITDA increased 45% to Rs 946 per tonne. Increase in volume and realization was driven primarily by recovery in Uttar Pradesh. Hardening of Petcoke price was partially offset by higher power generation from WHR System.

• The Company recorded highest ever Sales volume, Revenue, EBITDA & EBITDA per tonne in both Q4FY18 and FY18. Company premium product volume increased to 2.5x of FY17, share of business increased to 9%; lead distance reduced to 355 Kms. Company repaid entire ECB of $125 million; Net debt reduced to Rs 4,683 million; Net Debt to EBITDA at 1.29x; further improvement in working capital.

• The Company has recommended dividend of Rs 2.50 per share (25%) as against Rs 2.00 (20%) in FY17.

• The Company plans to increase its existing capacity by up to 10% through de-bottlenecking of existing capacity, going forward. Inadequate limestone reserve at its existing location despite land availability restricts the Company to go for any Brownfield expansion. Capacity utilisation for cement stood at 92% and 85% for Q4FY18 and FY18, respectively.

• The Company average petcoke price rose by 15% QoQ to Rs10,000/tone in 4QFY18. Company sources 100% domestic petcoke and expects prices to move higher in 1QFY19. It uses 70% of petcoke as of now with the balance being fulfilled by linkage. Notably, linkage coal supply will be over in this year and it will have to rely on auction Coal

• The Company has achieved highest ever WHR net power generation of 69.5 million units inFY18. Achieved 6.37x Net water positive for FY17. WHRS continued to yield desired result for Company, as it commands 20% of total power consumption at a cost of Rs0.5/unit. Company WHRS saved Rs75/tonne in Q4FY18. WHRS usage along with higher utilisation led to lower power consumption at 73units/tonne in FY18 vs. 76units/tonne in FY17. Average cost of blended power/unit stood at ~Rs6/unit.

• The Company mycem power volume increased to 2.5x of FY17 and mycem power's share of business increased to 9% of trade sales during FY18.

• The Company expects industry to witness a demand growth of 7% in FY19 lead by increased infrastructure development activities. Sustained demand in UP (post resolution of sand crisis), favourable monsoon and pre-election spending in major states like Madhya Pradesh, Rajasthan and Chhattisgarh are likely to drive the demand in Central region. India Meteorological Department forecasts normal and early onset of monsoon this year – 97% of long period average.