Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.

Yes, hi. Thank you for taking my question. I have couple of questions. First, on a console basis, volumes grew by around 9% year -on-year, and this is on the back of industry struggling at around 1%, 2%. So can you give more color on what's happening on this? What drove such high growth? Similarly, on the pricing side, I understand a strong pricing was also a function of you gaining -- or the expansion of premium products. But if I look at prices per bag, that has also not fallen a lot from INR249 to INR247. So any additional color on this front would be very helpful? Thank you.

Yes, Rahul, good question. Our volume growth is driven both by our current capacities and also the acquired capacities. As you know, we've been ramping up. Those capacities are helping us to fill up the voids which are there because we didn't have presence in some markets. Like, for example, Sanghi itself, if we take an example last year versus this year, there's a tremendous increase. Some volume growth has also happened in B2B segment where, again, we are not having capacity, so they have been used to expand. And therefore, you've seen -- because of premium products and also because of a very structured marketing, we've been varied Y-o-Y, the drop is substantial. I mean you can see that. For 2 quarters, it's not so substantial.

Yes. So just to understand this, you would have substantially gained market share on volume s within the quarter. So anything different that you are doing or was industry not that bad? How should we reiterate this 9% year-on-year growth?

So Rahul, this also has -- this is, I think, the volume of CLC. This also includes clinker sales, which happens from Ambuja to its subsidiaries and otherwise. But even if you remove the clinker sales, I think the volume is still a healthy 7%. And as I mentioned, this is also a function of the acquisition of new assets that we have done. Some of them are not working in the previous period or working at a lower utilization. And with Ambuja ACC brands, we've been able to increase it.

Okay. And when can we get numbers for Penna -- Penna is not included in this quarter, right?

Part of it is. So the number of very, very small quantity of Penna is there.

Almost 45 days of operations of Penna, Rahul, is part of this quarter and half year.

So can you give us numbers around that? What would be volumes, what kind of EBITDA that you have got from Penna because that will not be in the base, right?

That will not be in the base. We can, offline, give it you. Or we can connect and give it to you.

But broadly, like in terms of volume, from a cement perspective, Penna has given almost 4.5 lakh. But more importantly, on the clinker, Penna is helping us a lot . And we are seeing a capacity of almost a 70% utilization for Penna in 45 days and -- which is also helping us to meet some of the requirements of our southern plants from clinker perspective. Ajay Ji already highlighted that our sales includes both cement plus clinker, right? So on Penna, as part of our integration has went extremely very well. And within like a month or 2 months, we were able to operate at almost 70%, 75%. During our acquisition, we had given targets to hit 80%, 85% in, say, 3 years' time, but I see that we wi ll be able to achieve much before that.

Yes. Cement volume for Penna would be in the range of 1 lakh to 2.5 lakhs.

That was with clinker you see.

That's including clinker?

Yes, yes.

And excluding clinker, it would be around 150.

Around 1 lakh odd.

Okay. So just my -- just a suggestion, I'm sure other participants would have similar questions. If you can help us more details around what kind of numbers were consolidated from Penna during the quarter, that will be very helpful, otherwise.

Sure. Thank you. So we’ll move to the next question please.

Yes, sir. Thank you. The next question is from the line of Navin Sahadeo from ICICI Securities Limited. Please go ahead.

Yes. Good afternoon. And thank you for the questions. Also congratulations on decent set of numbers. So I have 2 questions. First is, I just wanted to get a better sense of now the cash that we have, which is already mentioned, of course, at INR10,000 crores-odd. But from Penna perspective, also that -- the cash which is lined up for Orient assuming the open offer gets subscribed fully, so in that context, what kind of appetite do we still have from an acquisition perspective is what I would request some color on. Are we open to doing further a similar size of Orient kind of an acquisition or here on, we could be looking at more smaller side of acquisition? And how should one look at?

So Navin, very good question. First of all, you'll appreciate both are very strategic acquisitions. And they are helping us both inimproving cost efficiencies, but also improving volume because these are 2 big drivers of value. Now I think we are currently focused on completing Penna. It's a very good asset, multiple tasks ahead of us, and Orient. So I think our hands are quite full right now with these 2. Having said that, I also mentioned in the opening that we are building 3 kilns as part of our expansion, 2 which we had already started and 1 is part of the Penna. So about 11 million tons of clinker and 20 million, 22 million tons of cement is already underway. So I think that with 10 million of Penna of 8.5 million of Orient, 18.5 million and add another 20 million. So I think we're already having a substantially low-cost new expansions happening. And I laid out the roadmap right up to 118 million. 118 million minus 140 million leaves only 22 million. So I think that also, as I mentioned, we have plan in place. With all these consolidations, our balance sheet and also the strength of annual cash generation goes up. In spite of all this, at the group level, we remain healthy, cash positive. And I think generally, we don't comment on the future, so I think I'll leave it at that. Maybe that's for some other day, some of the time.

And Navin, like in terms of net worth of almost INR60,000 crores and debt-free leaves enough opportunity for expansions on both organic and inorganic. So I will just rest myself here, but you can understand the strength the balance sheet has.

Okay. Helpful. Second question, I'll put it on Penna. If you can just walk a little bit further in detail here because you gave volumes, which is around 100 kt for cement, but you also said it was supporting significantly in terms of clinker to some of the southern plants. So from an incremental perspective, what kind of volumes, first of all, can we expect from Penna because that I'm assuming would be fairly stabilized as of now? Or does it continue to support more clinker to other units? So I just wanted to understand the actual cement contribution that one can expect from Penna. And also what is the cash now that is yet to be paid? Because your presentation says about INR7,800-odd crores is the amount allocated. The deal, as we understand, was INR10,400 crores. So the balance amount, how should be that looked as well?

Yes, Navin. So what I'll do is I'll ask Vinod to address the cash part, but let me first address your question on Penna. We're very happy with the Penna ramping up. In fact, our clinker, all the kilns have operating at near 85%, 90% utilization levels. And we are also doing some small adjustments because the plants were not running earlier, but we are very happy that already they are producing almost at 80%, 85%. And hopefully, by the time we close this year, we'll be hitting 95%. And obviously, that clinker is helping some of our grinding units in South, and that will play out. Parallelly, the demand and the sales teams are working. I'm confident in the next quarter when I come in front of you, the sales of Penna would also be quite healthy, and it's going in the right direction. I think we are more or less on track as far as sales is concerned. But for the right reasons, I cannot comment on what's happening this quarter, which I can only comment when I meet you for the results for the next quarter. Vinod Bhai, could you just throw some light on the cash?

Yes. So Navin, on the cash & the capex, if you remember, during announcement also, we said there are under construction assets. Krishnapatnam grinding unit which is increasing from 2 million to 4 million tons and also the ongoing capex at the Jodhpur, the Marwar project of Penna. Both of them are progressing very well. And the remaining outgo will happen with part of the progressive milestones to be achieved. That is how it is planned, and which is very much a part of the overall transaction. So your observation is right.

Yes. To summarize, by end of '26, this entire INR10,400 crores would have got consumed. We have paid about INR7,800-odd crores.

Absolutely right. So I said, as per the current year, the milestones are laid out. Now if it is '26 or if it is little 3 months or 4 months here and there, but the progressive payment will be made once the seller achieves the targets.

Thank you. The next question is from the line of Raashi Chopra from Citigroup. Please go ahead.

Thank you. Just -- I want to just come back to the volume question. If you were to exclude the acquisitions -- the volumes on the acquisition on a year-on-year basis, what is the growth or what is the organic volume for 14.2 million?

We would still be around 5%, 5.5%, Raashi.

Just pure plain organic volume...

Yes.

Okay. On the...

Actually, it's very difficult for us in future also to bre ak this up because as we use ACC and Ambuja two brands largely. And whatever we buy, we try and sell in these two brands because these are premium brands. It also help us in improving our market position. You've already seen in the pricing when we start selling in these brands, we do premium pricing. It gives us that extra leverage. So I think as far we are concerned, we'll continue to report the numbers the way we are. Of course, if it's needed, we can certainly deep div e with you guys on more detail, b ut I think we will continue to -- because we'll keep buying and we'll also be building our new capacities. So it's difficult then to differentiate. And Penna, any case is a subsidiary of Ambuja. So it will anyway get subsumed 100% in Ambuja console.

Right. Okay. Also on the pricing front after the quarter how have prices done?

Beg your pardon.

How about spot pricing versus the quarter, cement?

So let me comment more on the scenario on demand. I think demand is now opening up with the rains behind us, elections behind us. Diwali hopefully brings a lot of goodwill and good luck. So I think demand has started opening up now in short. And I think in our guidance, we have said that we're expecting for the full year FY '25, 4% to 5% growth. You already know first half; the growth has been tepid. So obviously, we are looking at growth in the range of 8% to 9% going forward. And thereby will be average of around 4% to 5%. The early offshoots of demand, we are only seeing. The pre -Diwali demand has been good. Hopefully, this continues post Diwali as well. And I see no reason because the INR11 lakh growth program on infrastructure, all the other initiatives the government is driving this, there is a stable policy regime. And I think that because of elections and also heavy rains got disturbed in the first two quarters. I don't see any reason why it should not really bring that -- the spirit which we are seeing earlier also, except for these two quarters which are an aberration.

The pricing is a very tricky question. I think demand is good, things then settle down. And I don't want to get into this discussion for various reasons.

Sure. So just one last question. On the cost reduct ion, INR500 target that you had, how much more is remaining from here on?

A lot more. We are on track. And again I laid out all the -- see end of the day INR500 or INR450 is a result of certain inputs. The initiatives multiplied by the saving per initiative. I have laid out and every time when I come before you guys, I clearly lay out what is the progress. So I very clearly detailed out on coal mining. I laid out on green power. I laid out on waste heat recovery, general efficiency programs, acquisition of new assets and optimizing it further, increasing capacity util ization, increasing productivity, doing more direct dispatches, improving our warehouse footprint, going for our own rakes, in future going for more ships for the Sanghi fleet. When you add all this together, the whole number of INR450, INR500 comes in place. We already reduced cost almost to INR 250 which was, of course, slightly higher I think when we acquired the businesses, but I believe we are very well on track. And every quarter, every year you will see this journey going towards that end-state objective to emerge one of the lowest cost saving producers in the business.

So, Raashi, also like in my opening remarks, I highlighted that somewhere like in December '23, we had come up with this whole program of cost and it is just like almost about a year from there. And March '28 is what, for example, we had put our aspirations to achieve those numbers. So we are very well on that journey. And with every progressive quarterour investments have been made substantial. And the results will start coming in, as I said, from the coming quarter itself from say December when we start getting green power to the sea logistics. For example, we are placing orders for the vessels to WHRS, which again investments have been committed and so on and so forth. I think that you will see it is not going to be backended, it will be like progressive with moving quarters.

That's fine. Thank you for detail. I just -- I think just to be more clear what I'm trying to ask you that how much of the INR500 has already happened? Is it INR100, is it INR150 or we still have like the entire INR500 to go.

I would say 25 %-odd has been achieved, 25% to 30%. But -- this is, again, yes as of now our assessment, but safe to assume say INR150-odd has been achieved.

Got it. Thank you.

Thank you. The next question is from the line of Ashish Jain from Macquarie. Please go ahead.

Yes. Tuticorin is yes, but you understand Tuticorin is only a grinding unit. It needs my clinker. So it's basically -- I think it includes that also. Whatever we are paying and wherever we are investing capital, we have to make sure that the capital at charge is delivering its returns. And as you can see in our growth that our growth strategy is clearly in line with our stated objectives.

Sir, just to clarify, so you said Penna did 450,000, out of which 100,000 was cement, balance was clinker. Safe to assume large part of that clinker would have gone to Tuticorin?

No. That is -- Penna clinker also goes to our own gri nding units which are there in South. And we would have done an equal amount of sales from Tuticorin also, just to answer that question. About 1 lakh comes from Tuticorin as well.

Got it, sir. That helps. Sir, secondly, in terms of the pricing, so while I can see Y-o-Y pricing is down and you alluded to that means most of your peers this quarter have reported a fairly weak pricing sequentially as well whereas our pricing has been resilient sequentially. So is it like mix impact? Have we sold more in specific regions or what has gone behind that and if you can just help to understand that as well?

I think a couple of things. Number one, OPC sales slightly higher, OPC yields higher price per ton. So that is evident. Number two, as I mentioned, 6 percentage improvement in our premium products across the brands. And number three mix you rightly mentioned. So I think we add all three together, we've been able to do a little better on price, but as I said year -on-year, it's still quite a harsh number because it's such a strong 9%, 10% decline. All the work you do on cost and of course somehow gets into the lower slot more.

Right. Sir, lastly, just one question on capacity expansion. So last say two, three quarters we have done a phenomenal job in terms of the organic growth that we have achieved. But our end capacity target has largely remained unchanged while we have spoken about building a lot more capability in terms of limestone acquisition and various other project initiatives. So should we think that post fiscal '28, we will remain in an accelerated expansion phase even let's say, from '28 to '31 or what kind of number should we think b ecause while you're adding capability, we're also acquiring a lot. I just want to understand how capacity could look, let's say, slightly away from '28 as well.

So Ashish, we have been very consistent in our message of doubling our capacity from 67.5 million in September '22. That's the day when we had bought these companies, and our Chairman has given this in his first speech post-acquisition that we will double by '28. We remain committed to that target. Should there be a need to revise it in near future, still '28 is a little far away. We'll certainly come back to you. As of now, we are fully committed to make sure that number one we deliver on our promise and cost. Number two, we deliver on our promise on growth. And number three, we keep highest governance on ESG. And number four as of now we are debt-free, and we hope to remain debt- free as part of our expense. These are the four stated objectives. We remain steadfast on that. Whenever a good opportunity for acquisition has come, we have taken it. I guess that from the past track you can more or less project how we have acted and how we have reacted to the changing context.

Right. Got it sir. Thank you so much and best of luck.

Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.

Hi, sir. Good afternoon. C ongrats on good numbers. If you could mention this MSR despite higher share of nontrade Q-on-Q, our MSR is positive while the industry wide we have seen 3% realization dip. And also in your capex, there is no mention on the Mundra project on a capex slide. So is there any delays? And also if you could discuss on Sanghi plant, we are seeing no capex progress and even volume ramp-up seems to be not as was earlier in when it was acquired, the plan was that the ramp -up would happen fast. So if you could share some detail on these, that would be great.

So let me address your concern on capex. First, let me address your concern on price. As I mentioned, we have had a substantial decline Y-o-Y. Quarter-on-quarter, our premium product percentages have gone up; number two, I mentioned we moved some OPC sales in bulk in OPC, the prices are better there; number three, also the mix. So I think that's the reason on the quarter- to-quarter. On your question on Sanghi, we had a very severe monsoon and impact of that was very severe in Mundra area. In fact, almost for 2 weeks, the plant was flooded. Post that, what we have done is we have 2 kilns there, 1 kiln is fully refurbished, restarted, and now it is running the new kiln, the line 2 kiln is now fully running at free capacity. The line 1 kiln is now under maintenance, and this undergoes the entire refurbishment. This was part of our planned strategy. And I believe in quarter 3 and quarter 4, we should start seeing Sanghi clinker production coming at almost near full production. And with that, we'll translate into cement as well. For Sanghi, we also had to do some work on the channel. So we have finished that work. We are now starting our Marine expansion plan there. So that will also be part of this strategy. Mundra, we stay on track, and I think we should be commissioning this pr oject somewhere in '26, '27. Again, Phase 1 for grinding unit has already started. Also, the clinker line we are expecting somewhere in '26, '27.

In Sanghi, what is the end plan 15 million ton which you are targeting, when would that be taken up?

So Sanghi, second kiln, we'll announced in due course. As I speak to you, we are in the process of getting environmental approvals. We are in the process of also getting the jetty expansion, and we are also in the process of placing orders for ships, which are needed to transfer across the coast. We are also fortifying our position across the West South Coast with grinding units and/or bulk cement terminals. And at some stage, Sanghi will stop, and Penna will take over through its BCTs from Krishnapatnam onwards right up to Cochin. So I think that whole strategy piece has been worked out. At some stage in future, you will hear from us in a much more detailed investor deck as well. But give us some time, we'll certainly share with you.

Just to highlight the MSA volumes is wrongly mentioned in the Q2 Q3 I think the breakeven number is just what has got printed against, if you share that MSA volumes...

Okay. Thanks for bringing it up, our team will address that.

Thank you. The next question is from the line of Indrajit Agarwal from CLSA. Please go ahead.

Hi, thank you for the opportunity. Most of my questions are answered. I just have one question on the cash flow. There's a sharp increase in other current assets and other current liabilities if you can -- or cash outflow because of these 2 items. If you can please highlight what costs asset items led to this increase?

We also, Indrajit, in my opening remarks, again, when I highlighted, so there is an overall, say, utilization of closer to INR4,100 crores, which is part of the net working capital. And in the net working capital, there are various assets right from inventory to receivables. Ajay ji mentioned about increasing trend of the OPC sales. And typically, as you know that this leads to increase in the receivables, then what we've also done is piled up a good level of inventory for coal, given that the prices of the pet coke has been substantially lower, and then we actually have used the oppo rtunity. As you speak, I'm holding almost 65 to 70 days of inventory of coal, and which will give me the benefit in time to come. So we have been opportunistic in terms of this a, the trend of sales; and b, in terms of building up the inventory. Primarily, these are the 2 factors which will see increase in the current assets, which would have gone up. And then on top of it, as I said, some of the factors are not apple-to- apple comparison because of the overall Purchase Price Allocation of Sanghi, Tuticorin and Asian, which has been finalized this quarter and also provisional numbers of Penna, which has gone into the balance sheet. More specifics, I can off-line connect separately, but these are a few points you should look into it and then I can address separately.

Sure, sir. I'll connect with you separately because the numbers I'm looking at in the consol cash flow, other assets, cash outflow INR2,100 crores and other liabilities of INR800 crores.

Broadly in line with what I told initially, like when I say that opening of INR16,000 crores to closing of INR10,135 crores, I broadly highlighted the major inflows and the major outflows leading it to the net case of INR10,135 crores in the overall consol level.

No, that's helpful. Second, while our realizations have been largely flat quarter -over-quarter, if you can give us some broad regional trend for the quarter gone by itself? Like where do you think that prices have declined the most and where you have had like more resilient place.

I think that we can do more off-line, too much of a micro detailing at this call.

Yes. Good afternoon, Sir. My first question is on, we have this notes to account given in results. It says around INR130 crores incentives at West Bengal unit. Is this a one-off which is benefiting also the revenues? Or is this like an incentive we will continue to accrue like in 60 days? How should we understand this?

Yes, Prateek this is more business as usual because as part of our various incentives states, there are certain accruals. And this, we got a very good case in Supreme Court, got order in our favor and now it's for us to encash it through the state and we are working on that. So we have a very strong case. And therefore, this is more of business income, which has been booked now, normal course of business.

But ideally, we should address this in revenues to arrive at the realization, right, because this was not there in last quarter. Would that be right?

So Prateek, Vinod here. For example, like I would look at it in a normal course of business. So that is how we would calculate. But it all depends on how you calculate. But as you highlighted, it is like very much part of the incentives, which we will be g etting from the West Bengal government, and it is very much part of the business income, operating income.

Okay. And what are the full year incentives we are expected to get this year and mayb e next year, including this INR138 crores?

So I'm expecting around closer to INR80-odd crores for the another project. Let us say, together is closer to INR220-odd crores, which I should be getting from this -- for these plants in West Bengal from the government. By the wa y, we have already received INR 45-odd crores in the past.

No, sir, I was asking just cumulatively overall for the company, how much we are looking to get in FY '25 and as a run rate basis.

Quarterly, my incentives ballpark is around INR250-odd crores. And therefore, if I extrapolate so for a year, we're close to around, I would say, INR600 crores to INR650-odd crores is my incentives which I put in a year.

Okay. Out of INR650 crores, we have accrued INR138 crores specifically we had mentioned, that's why we have given a note around it...

Yes, that is. Therefore, since there was a background to the -- this particular item with respect to one of the Supreme Court cases, therefore, this came into the notes from the auditors.

Okay. My other question is regarding your Mundra limestone grinding plant. We have taken that out from our capacity schedule. Is the timeline for that like sort of push ed out to later year? Or how we are looking to that?

Which plant you're talking about, Mundra?

It's very much in the plan. As I mentioned, it is mentioned in, I think, 2027 we should be commissioning that.

Okay. And last question on organic capex this year. What is the targeted organic capex hits off M&A?

I think we have already done close to INR3,500 -odd crores for the first half, well on track. Maybe there's small 10%, 20% slippage here and there. Some projects are 100%, some projects are sometimes because of permits, sometimes because of land. But I thin k by and large, we are trading quite well.

Okay. Sir, what is the capex number, which we should expect for full year FY '25?

So Prateek, our target when we started the year is closer to, say, INR7,000-odd crores. And while we have crossed 50% milestone, another INR3,000 -3500 crores, is what we are expecting to end with the full financial year. So closer to INR7,000 – 8000 crores, is what we are expecting for the full year.

Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.

Thank you and congratulations on good set of numbers. Sir, first, is it possible to tell the MSA volume for second quarter?

Very much, yes. Very much.

So our total MSA volume would be around 3.7 million.

Okay. Got it. And second, just wanted to understand both in terms of the green share and whatever the expansions that we have, what I see is green share last time, we said that by FY '25, we will be looking at close to 31%, but now we are saying at 20%-odd, so currently 18.2%. And for all the expansions, if I see many projects are getting delayed by 1 or 1 quarter. So any specific reason?

See, as I mentioned earlier, there was my rains and this I mentioned more for Sanghi plant. We had a very heavy rainfall in Gujarat and Khavda area also, where our solar power is. As a result, the 200 megawatt, which should have happened 2 months back is now happening in this quarter. So that's one reason. Second, at one plant, one of our wastage plants also got delayed for about 2 months. So I think other than that, there is no major delay. And as these projects start coming in, you will start seeing the same number which I promised albeit with the delay of maybe 1 or 2 months here and there.

Okay. And for the -- even for the grinding expansion, Sankrail, Farakka...

Heavy capex project, so by and large, we are on track. Some projects, we are absolutely on track. Some projects, slight delays. Some projects, delays are more. But then on the other hand, we are also doing M&A. So what is important is with the Penna addition of 10 million, ongoing another 4 million, with the Orient addition in the future of 8.5 million, straight away 4% market share uptake is there from M&A itself. So I think from the market perspective, it helps us.

And then sir, broadly, when we said that out of INR530-odd cost reduction, INR150 we have done. So if I broadly divide and do the math of close to INR120, INR125 per ton for next 3 years that we are looking at, so if somebody looks at from currently INR780-odd EBITDA per ton, it has to move up significantly what we were looking at close to INR1,400, INR 1,500-odd. Then are we assuming a significant price hike to coming from now onwards?

If you look at the price, current prices are one of the lowest ever. So I wouldn't make any future estimate on the current price. You'll have to make a much more analytical estimate, what is the right price and what should be the future price. Therefore, if you adjust for the normal price, and then if you look at our end state costs, whic h we are targeting about INR3,800, I think then the numbers we're seeing is very much achievable.

Okay. And for ACC, is it possible for full year, how much capex we are looking at?

How much?

For ACC, how much full year capex are you looking at?

I don't think I have that number, but we can certainly give you...

Yes. So I think maybe offline, we can connect, but if I have to just give you for ACC for t he balance around closer to INR1,000-odd crores is what we are expecting to incur and like some of them, for example, Salai Banwa and all are already under progress, and w e should be achieving this part of my 6 million tons of GU, it has to be up and running before March '25, so yes, ballpark within ACC, say, INR1,000-odd crores.

Okay, and all the best. Thank you.

Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.

Thanks for the opportunity. Sir, my question is around right -of-use assets and the cash flow statement, there is an entry called payment of principal portion of lease liabilities. So this number seems to be quite high for ACC. Could you just help understand what is this -- the item and why is it so high for ACC?

Okay. While you are asking for ACC, I have the details on a consol basis, I will just try and attempt that and then maybe separately, we can speak about the ACC part. So the ROU asset, which is there, closer to INR 1,498-odd crores, which is as of September '24. And when we started, it was closer to, I'd say, INR1,100-odd crores. Typically, right of the use of assets would include some of your long -term assets, which are available to you for use. This would include the RMX assets, the office building if you take it on a long-term lease, some of the guest houses, which we've taken on long -term lease and on top of it, some of the contracts on shipping or the rate which you enter into long-term leases. So that is like basically right of use of assets. So on an overall basis, for example, when I look at the overall, say, tangible block of asset, this is a smaller portion of the larger block. And I would say it is actually less than 3%, 4% of the overall, say, my block. And we haven't seen any significant additions per se, in 6 month s, except as I said, around INR500-odd crores, which is for the factors which I mentioned. Again, please bear for me on the point that the numbers are not apple -to-apple comparison given, again, my point that there are 3 companies which have got finalized in terms of their purchase pric e allocation and the fourth company which is Penna, which is provisional basis. Therefore, you will have to also put the lenses from that perspective. ACC, maybe off -line, I can address your question. I don't have the details right now, but this was on a consol basis for Ambuja. So there will be a glimpse of ACC also in the same manner.

Sure. ACC, It's like looking like a big number, I mean, it's almost INR 700 crores for the first half. So that was what I want to understand and although...

So I think all these intangible assets basically, which is where ROU also part of the sale, and you will have this generally, like in terms of any asset which is available on long -term usages, and I will give you some examples of ships to rates to office b uildings to guest houses and likewise, right? So yes.

Sure. Because, I also noted that in Ambuja consol e, that number is actually not different from ACC, which means some leases that have happened in Ambuja ACC as well, right?

No, basically because the RMX items get -- which are primary for ACC, and therefore, in console, we'll find delta is marginal between ACC and Ambuja. And when we look at ACC as I said to you for RMX, especially for the mixers and the transit pumps, we have been little going our RMX business aggressively now, and this is more on the outsourcing model wherein you will take the transit mixers and the transit pumps on a long-term leases, which will become part of the ROUs.

Sure, sir. And just a second question on Penna sales volumes. So is there any sales being made in the Penna brand also or its all MSA with Ambuja ACC?

Ajay ji, would have answered, but I'll just answer on this point. Like so for the interim period, given that there have been ongoing contracts and especially some of the government contract where Penna was listed as an approved brand, we have continued over there. But otherwise, primarily we have used Ambuja and ACC. Having said that, obviously, the brand remains with us, and we are free to use the requirements. But yes, for certain government contracts and some of the institutional sales, we have used Penna brand.

In case of Penna, this is similar to what we have applied for Sanghi, which is primarily cost plus 10% kind of formula. And I'm happy, by the way, that Sanghi, as I told you, has come into EBITDA positive, with this formula, otherwise, it was going through negative EBITDA for many years. And likewise, even Penna has seen a very good healthy utilization of capacities. When we acquired, it was less than 30% capacity utilization and which I'm very happy to highlight that now we are almost at 65%, 70% capacity utilization for Penna.

Thank you.

Thank you. Ladies and gentlemen, we'll take this as a last question. I would now like to hand the conference over to the management for closing comments.

I hope most of the questions have been answered. If you have any unresolved queries, please contact us. Thank you, Sanjeev, and the Motilal Oswal Securities team for organizing this call. Thank you.

Thank you, everyone, again, on behalf of the management team, wishing you all a very, very happy and prosperous Diwali. Be safe and healthy and enjoy festivals. Thank you.

Thank you. On behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. ------------------------------------------------------------------------------------------------------------------------------------------------------

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Ambuja Cements Ltd

Registered office: Adani Corporate House Shantigram, S.G. Highway Khodiyar, Ahmedabad – 382 421 Gujarat, India Ph +91 79-2555 5555; www.ambujacement.com; CIN: L26942GJ1981PLC004717