Key takeaways of the call

Mines globally across for all minerals are optimizing costs. But replacement demand continues to happen globally in mining sector. However the sales to domestic mining sector continue to be flattish with volume around 7000-8000 tonnes a year. In case of cement sector the domestic market is internally seen as flattish for FY16 with a likely volume increase of about 1000 tonnes from current 70000 tonnes. On global cement sector demand, excluding Chinese demand, which is a different kind of market which is largely met internally and not of global quality; there is not much of room for growth.

Forex gain for the fiscal ended March 2015 was Rs 48 crore compared to a loss of Rs 68 crore compared to corresponding previous fiscal. The forex gain for the quarter ended march 2015 was Rs 8 crore compared to nil in the corresponding previous quarter.

Tax rate for FY16 will sustained at about 28-29%.

The company is reasonably successful in its attempt to get into primary crushers segment. Some of the trails are successful and the company has arrived but significant volume is some time away.

Current capacity stands at 260000 tonnes and the phase I of green field expansion of 80000 tonnes capacity will get commissioned in Q2FY16.

Full year transfer pricing adjustments made only in Q4FY15 and that has resulted in consolidated EBITDA for FY15 lower than standalone EBITDA of FY15.