The company has conducted a conference call on 29 January 2020 to discuss the results for the third quarter ended June December and way forward. Mr. Shailendra Chouksey, Whole-time Director, and Mr Sudhir Bidkar, CFO of the Company, addressed the conference call.

Key highlights

• The Company posted 251% jump in net profit to Rs 49.31 crore on the back if 7% growth in total income from operation to Rs 1004 crore in Q3FY20. During the quarter Company has been able to reduce its logistic cost substantially as well as improve its product mix to cut down the cost further. The fuel prices have softened further. These cost reductions enabled the Company to post an EBIDTA of Rs. 166.59 crore, 48% from from corresponding previous quarter. After providing for interest and depreciation, PBT rose 281% to Rs. 75.35 crore. After providing for Taxes and Other Comprehensive Income, Company's Profit moved 251% to Rs. 49.31 crore.

• The Company sales (including clinker) stood at 23.7 lakh tonnes. Current quarter utilisation: 66% for cement and 95% for clinker plant.

• The company's trade sales increased to 58% in Q3FY20 from 56% in Q2FY20 as the company was selective in choosing non-trade projects.

• The company has taken Rs10-15/bag price hike in January 2020. The Company cautioned that price sustenance will be dependent on improvement in demand despite higher volumes expected in Q4FY20.

• The company has maintained its guidance for 98 lakh tonne in FY2020E and 99 lakh tonne in FY2021. It is hopeful of H2FY20 volumes being better than H1FY20 volumes. The company also highlighted that there was marginal volume growth in December and January and was seeing demandprimarily from the infrastructure and housing segments.

• The Company plans to debottleneck its 1.6 MT capacity at Udaipur cement works (UCWL) to 2.2 MT at a capex of Rs 60 crore which will get completed by end of FY21. There will also be a marginal increase in clinker capacity to support this expansion.

• The Company is evaluating brownfield expansion at either Sirohi or Udaipur plants which will be announced after ~2months. The company highlighted that it has sufficient land and limestone at both locations for such capex. The projects shall primarily be funded by internal accruals and the balance through debt.

• The Company plans Capex for the 10MW WHR power plant at Sirohi at Rs 150 crore.

• The company commissioned a 0.8 MT grinding unit at Cuttack, Odisha taking its total standalone cement capacity to 11.7 MT and consolidated cement capacity to 13.3 MT. Utilisation levels for Odisha grinding unit was 40% in Q3FY20 and indicated that it will scale up to 55% in Q4FY20.

• The Company power cost per tonne fell by 5.5% on account of lower pet coke prices. The company is currently consuming 85% pet coke. It expects petcoke prices to remain flat going ahead.

• The company's trade: non-trade sales increased to 58%:42% in Q3FY20 across India. Meanwhile, trade: non-trade sales stood at 70%:30% for East.
• The Company consolidated net debt stood at Rs. 1665 crore and standalone net debt stood at Rs. 1150 crore in Q3FY20. The Company expects debt to reduce by Rs. 50 crore in Q4FY20 and by Rs. 300 crore in FY21. The Company expects capital expenditure to be funded through a debt-equity ratio of 65:35.

• The company currently has a thermal power capacity of 54 MW and a 15 MW waste-hear recovery system (WHRS) in North India. It is undertaking a 12 MW WHRS expansion at Sirohi plant which is expected to lead to Rs. 7-8 crore per quarter savings. The company has a 7.5 MW WHRS and 20MW thermal power capacity in the eastern region.