Ambuja Cements Limited analyst Q&A

Thank you, sir. We will now begin with the question and answer session. The first question comes from the line of Rahul Gupta from Morgan Stanley.

Two questions from my side. Heartening to hear that cost optimization journey is on track. But can you please help us understand the quantum of cost savings achieved during the year? Also is there any change in the guided benefits of INR100 per ton in fiscal '26 and INR150 in fiscal '27? That's my first question.

Thank you, Rahul. When we started way back in September '22, we had been at the levels of INR4,250 around of cost. And then somewhere like in March '24 quarter , we have been at, say, INR4,170 around that level, and then we committed to achieve INR3,650. In this journey, so far we have achieved already around INR150 to INR175 per ton of cost and the balance INR300 to INR325 per ton is what we are going to expect in FY '26 to up to '28. Now this cost largely will be driven by 3, 4 factors. One is our continued investment on WHRS, AFR and renewable power as one component. And second is the fly ash and for which, for example, we are setting up the fly ash handling systems. Just to share and I mentioned last time that we have entered into a 10 -year agreement with Adani Power for 5 m illion tons of fly ash supply at almost negative 400 wherein we have invested into handling the fly ash from the Tiroda power plant to some of our grinding units. Now these are, like, strategic investments which are being made. Then this BCFC is going to be a game changer for us. So -- and on top of it, still the marine logistics has not taken and achieved its full play, but we are in a fairly good stages of orderin g almost like 8 shipping vessels and which will help us to achieve a significant improvement in our marine shipping or marine transportation as well. So I think the journey is very clear. INR3,650 is, for example, which we have a complete detailed blueprint. And every passing quarter, we are increasing it. In terms of green power, now green power when we got 300 megawatts, it's already started reflecting in my power cost per unit wherein it has reduced by almost INR0.20, INR0.25 to what we were getting, say, last quarter. And so on and so forth, I can go with more details. So I think this is a larger broader outline on the cost part. What was your second question, Rahul?

Yes. So I just wanted an update on the guidance for the next couple of years. I remember last quarter, you talked about higher -- greater than INR100 per ton savings expected in fiscal '26 and another INR150 in fiscal '27. So that's broadly on track, right?

That's absolutely broadly on track. In fact, I'm going to also work -- the whole team is committed here to work to achieve it before what we have committed. So that is like the spirit what we are working on. But like 3,650, absolutely a clear road map.

My second question is on the revenue side. Our share of premium products has improved to 29%. Can you just help us understand how to look at this over the next couple of years, taking into account your expanded capacity, both on organic and inorganic basis?

Very good question again, Rahul. In terms of our premium cement, right from beginning, I think both the brands have been doing extremely well. And the share of premium cement have been averaging, say, 25%, 26%. And this time, it is like 29%, 30%. Our focus remains very core to promote the premium cement because we also see the customers are looking forward to it. Towards this, for example, we are substantially increasing our ground network. We are putting a whole lot of branding and promotion activities around this. We are also going to ensure a consistent quality supplies towards this. The trade sales because this premium product actually becomes part of the trade sales. And precisely over there, our deeper engagement on the ground will help us facilitate it. Typically, you will know that the premium cement, for example, gives you almost INR200 to INR300 per ton extra realization, and that is what's going to differentiate the leader from the others. Our target for FY '26 is around 35% on the premium cement.

The next question comes from the line of Amit Murarka from Axis Capital.

So my first question actually is on ACC. So there were a few like transactions in ACC, which I just wanted to understand better. So one, there was some land purchase under ACC Mineral Resources, which was for about INR680-odd crores. So could you help understand like to what is this land for? And by when can we expect -- I believe new capacities also are planned on this. So some clarity on that, please.

Yes, yes, sure. I think there have been these investments which is coming from ACC. I can actually answer your question on a larger level so that if there are any other questions, which will -- I'm pre-empting it so that it can be replied in one go. See, overall, for example, in terms of ACC, there has been an outgo of, say, almost INR1,100 crores in terms of the cash balance from INR4,660 crores to INR3,590 crores. Now on top of it, we also had this EBITDA and other income. So if I add to that, then the overall investment is around INR4,500 crores in case of ACC, out of which INR2,300 crores is towards the overall, say, investments in the fixed assets and some of them in CWIP. This is like a broader number, then I will come to specific items. Then also, there has been a working capital deployment of INR1,300 crores, and this is absolutely to the third -party companies wherein, for example, an early payment to the MSME vendors, then also in terms of the opex vendors which we have also taken a treasury arbitrage. Then there has been this lease liability payment of INR750 crores, and this is like one area which I will highlight. And then on top of it, it's a dividend payout and tax outgo. So almost like closer to, for example, INR4,500 crores in terms of deployment. To your question about this land and particular, say, investments, which is closer to about INR690-odd crores, this have been invested especially for the land in the western side of the country where we have plans to set up the grinding units and also acquire the -- we have acquired the coal mines. So this is as a business overall is going to benefit. This is closer to Chanda. And as I said, the plants are there in terms of the overall coal and plus the grinding unit. So this is like one point. Second is in terms of the BCFC wagons for Ametha, Kymore, Wadi, ACC has also invested around INR750-odd crores. Then for my Salai Banwa and Sindri, which is like work in progress, some of you would know that ACC is in fairly advanced stages of commissioning them, close to INR500 crores has gone towards the investments around that. Then we have also put in WHRS investments for Chanda and Wadi II, and we have also put into investments with respect to the overall the coal mines and the BCFC and so on and so forth. So from a land perspective, this has gone purely from grinding units to the prospect of the coal mines for which the land is required. Now as a business, sometimes we cannot segment out between Ambuja and ACC because as I said, these are like a one single composite business. Sometimes Ambuja will invest and sometimes ACC will invest. When Ambuja invests, ACC gets the benefit of MSA. When ACC invests, Ambuja gets the benefit of MSA. So this has to be looked upon instead of completely clinically segmenting it. And this is, for example, which will also help you to understand the perspective. What was your next question, Amit?

Yes. So this is helpful. So the land purchases for coal mines largely is w hat I understand then. And some…

Coal mines and the grinding units both actually.

Okay. But no clinker plans in this?

There are coal blocks also, they are around Chanda, so 3 of them, so limestone blocks, the grinding units and the coal blocks.

Sure. Okay. And also there was some impairment of cement plant…

Sorry to interrupt, Amit. I would request you to fall back into the queue if you have any more questions so that the management can answer as many participants as possible.

Just this last one if I can. It's related to the earlier question. So there's some impairment also of the cement plant. So I also wanted to understand that what was this impairment for?

Amit, we have also, I think, highlighted that some of the old assets, which are clinker units, but we find now unfeasible are like Barga rh, Chaibasa and the Wadi line number 1, so which we have decided right now to put them off. And therefore, proactively, we are providing for those assets. If I'm not wrong, it is around close to INR200-odd crores, which is what we have provided. But this is purely like a proactive prudently prudent accounting so that down the line, we will decide not to -- to actually discontinue these assets from a clinking perspective. So far as grinding is concerned, Bargarh is right now working from a grinding perspective. Wadi one line, for reference, we already have started the process of dismantling.

The next question comes from the line of Indrajit Agarwal from CLSA India.

I have 2 questions. First, on other financial assets on consol, there is about a INR1,700 crore increase from March last year to this year. So one, what is this related to? And second, on the land acquisition that you have done in ACC, the grinding unit that you talked about, is it part of the plan to INR140 crores? Or would it be beyond that?

Okay. Let me address to the first question. And in terms of your other financial assets, let me just figure out. So other financial assets, this is closer -- so the numbers which I have right now with me, which is 18, this is the one probably what they're referring to. Just a sec, Indrajit.

Yes. I'm looking at the noncurrent part.

With me. So there is an increase in terms of the government grant, which is close to overall increase of INR109 crores. Then there is -- basically, it's more about the fixed deposits, which are getting reclassified between current and noncurrent. So there are 2 components here. One is the fixed deposits. So like from an accounting perspective, if it is with rema ining maturity of, say, more than 12 months, then it gets classified as noncurrent. So this purely is like an accounting reclassification. But otherwise, then from a government grant receivables perspective, which is also lying here, which is close to about, say, INR109 crores. That's how it is.

Okay. This is clear. And on the ACC pipeline of capacity expansion?

Some of these accounting reclassification queries, what I proposed to the team between, say, 4 to -- between 4 to 6, 2 hours also, Deepak and team will be available for any specific questions on accounts and some details, they will be available. The team will be available to give you the answers, okay?

Okay.

So Deepak number is available to all of you.

And sir, on ACC grinding expansion, is it part of 140 or beyond that?

No, no, everyone is very much part of the 140. Right now, my entire capex program is adhering to 140.

The next question comes from the line of Navin Sahadeo from ICICI Securities.

Great commentary indeed, very assuring. Two questions. One is that of the total promoter fund infusion, which was sum of INR20,000 crores, post the -- I think the Orient deal and of course Sanghi, the entire cash deployment is largely done. And also, I think a couple of months back in one of your maybe media interviews, you did mention that Ambuja will focus on more on organic expansions now. So from that perspective, having deployed the cash and the recent -- I mean, the interview, which I may be mentioning, in general, your view, can we say that the competitive intensity in the industry can be expected to get soften a little bit from here on and overall industry profitability could improve? Or you think that no, there is still room for more M&As and hence, it can be remain volatile?

Navin, very interesting. Thanks. So in fact, the promoters infusion of INR20,000 crores -- and as you know, sum total of all our acquisitions so far after Ambuja and ACC, the enterprise value is almost INR25,000-plus crores. Therefore, in fact, we have also used the existing cash and cash equivalent for the overall, say, acquisitions, and we are also sitting on a good level of, say, further for the growth prospects. Now so far as the prospects for the industry is concerned, I would say more than the action of, say, M&A, I think overall demand levers are better in terms of the government spending. The overall cost initiatives for the mature companies who are -- whose balance sheets are basically - - have the strength to invest will be better, they will have an arbitrage. Therefore, the prospects of the industry definitely looks better. And to me, FY '26 should be far, far better than FY '25. In fact, FY '25, if you slice it, the first 9 months and the last, say, 3 months, you will find the key differentiations already and that March '25 quarter is also spilling over to now, say, June as well. Therefore, I think the prospects are better. And with the discipline of, say, overall cost and also the uptick in the demand. And as I said in my commentary that the premium cement, the overall aspirational demand coming for the good brands, it is there. And with -- and when I look at my brands and my team's strength, they are focusing a lot in terms of the ground network and ove rall leading technology and digitization. We will differentiate and they will actually augur me very well in terms of the growth versus the industry. So these are like the trends which I am going to look at it. And yes, my focus will be more in terms of the organic growth to achieve this 20 million ton additional, which we are expecting in '26, but not that we are averse to any M&A if it is coming at the right opportunity.

Understood. My second question was then about the ramp-up of the acquired units of both Penna and Sanghi. And Sanghi, if I understand, it's still -- utilization is still under 60% in the peak quarter like March, having acquired -- I think it's almost the f ifth quarter for that entity. So if you can just throw some light as to how we can see the ramp -up for Sanghi going ahead? And of course, how is Penna doing so far in the ramp-up there?

Penna, I would say we are so happy with the assets of Penna. In terms of my clinker utilization, it is almost 75% to 80%. So far as cement is concerned, the south markets have been sluggish. Therefore, in terms of cement capacity, it may be a little lower than what the clinker capacity has been -- utilization has been. But clinker is doing great from Penna perspective. So far as Sanghi is concerned, you are right that compared to our own target, we may be a few months behind because more so that it's an island plant, and therefore, we will have to take care of some of the requirements in terms of the power and in terms of the dredging. And these, like, plants have been, like, not so well maintained. So it has gone into refractory linings and so on and so forth, I think. But as of now, both the kilns are up and running, and you will see a significant -- already I'm seeing it in the month of April. Sanghi for me is one of the best assets in terms of the cost. It will be my jewel, I tell you, in terms of the overall clinker cost. It will be my hub of clinker. So Sanghi, for example, it takes time because these are the assets which are sitting on 1,000 million tons of limestone. They have their own typical issues, which are getting addressed. So - - but as a strategy, Sanghi for me is going to be very important. And this year, you will see significant capacity for Sanghi in terms of utilization.

The next question comes from the line of Prateek Kumar from Jefferies Group.

Congrats for the results. My first question is on your capex and cash flow position. So your cash flow was INR10,000 crores. So after Orient Cement pay down, what will be the cash position in April? And is there open offer? What is the timing of that? And overall cash also related to Orient Cement, what is the expectation?

Okay. Thank you, Prateek. So in terms of open offer, we have already deposited the entire amount under open offer closer to around INR2,000 crores into SEBI escrow, and we are expecting the SEBI's clearance of the detailed letter of offer, so that it will move faster. That is one on the open offer. But in terms of the investment, it's already put into the SEBI escrow. So far as the overall cash flow is concerned post Orient, and as you know, that Orient, we have acquired 46% at closer to overall outflow of around INR5,500 crores, INR5,600 crores. After that, I'm sitting almost now on, say, INR5,000 crores of cash, and this is getting added with improved operating performances every passing month. On top of it, we also have some of the areas of incentives and some of the taxes which have already got in our favor. So we are sitting on a good level of projection for the cash flows. And therefore, my entire capex for growth will be self-funded and on top of it, I will be sitting on a decent level of closing cash and cash equivalents. So from a cash perspective, we are fairly in a decent position as of now.

So including as an offer payment second, your current cash position would be expected INR500 crores. Your annual capex expectation is around INR10,000 crores outside of that.

No. So I did not -- I could not hear it properly, but your point is whether your open offer amount is outside INR10,000 crores or within -- it is part of this overall, say, INR10,000 crores. Like in April, we have already put into SEBI escrow. So it is part of this INR10,000-odd crores.

No, no. I meant organic capex is over and above this INR5,000-odd crores which is paid towards Orient Cement, right?

Yes, yes, of course. My organic capex is over and above that, of course.

Right. And just one last question on the…

And that is what I think that we are operating will be met by the existing cash -and-cash equivalents, then recovery of the working capital block and on top of it, my monthly improved operating cash flows coming from the business.

Sorry, Mr. Prateek, those were your 2 questions. I would request you to call back into the queue.

Your voice is not clear. I'm not able to hear properly. Yes, sorry, yes, over to HDFC because I'm not able to hear his voice properly. There is some disturbance.

The next question comes from the line of Parvez Qazi from Nuvama Group.

Congratulations for a good set of numbers. So just one question. What would have been the contribution from Penna and Sanghi in terms of volumes in Q4?

So in terms of volumes of Penna and Sanghi, so far as Penna is concerned, Penna's volume together, I would say, like both together is around 1.6 million tons for the quarter of March '25. There is a mobile -- there is a disturbance again. Can you, someone, switch off the mobile also, please? Yes. So around, say, 1.6 for the quarter, but as I said no, this will ramp up substantially with Sanghi coming into its fullest avatar.

Parvez, there is a disturbance at your end. Could you please move to a quieter area? Parvez, are you there? I hope that answers your question.

So, see, 1.6 is for Penna or Sanghi? I'm sorry, they both…

It is both together. I will not give you specific details, but it is for both together, it is there. I can come back to you with specific, but on an overall basis, it is 1.6.

The next question comes from the line of Sumangal Nevatia from Kotak Securities.

Sir, the first question is on the capex. Can you just share for FY '26 and '27 for our existing ongoing, what would be our organic capex? And broadly, if one could split between projects -- not projects, but on expansions on WHRS, on overall renewable, some breakup?

Sumangal, in terms of capex, let us say the growth capex is closer to around INR6,000 crores. And so far as my efficiency capexes are concerned, let us say, between INR2,500 crores to INR3,000-odd crores, so we are looking at closer to, say, INR9,000-odd crores. Some of them are discrete and some of them are ongoing. So as you know that -- and I mentioned to you around 18 million tons of cement, which will be coming. So one component of this capex out of this INR6,000 crores capex will be that part. Now so in terms of my efficiency capexes, it will be primarily with respect to the WHRS, the BCFC rates. In terms of my growth capexes, I mentioned to you about the geos, which we are looking at to achieve closing or commissioning this year and some of the clinker units. The clinker unit will be Bhatapara, Maratha and Marwar Mundwa and also the Mundra. So the Mundra petchem also is now progressing very well. So these are the 4 lines of clinker. And in terms of grinding, Warisaliganj, Naultha, Salai Banwa, Bhatinda, Raigarh, these are all part of the 140 million tons of capacity. And couple of more will also come. This is the progress which we achieved in terms of the land acquisitions and all. So this is in substance about the capex for FY '26 expected.

Okay. And sir, maintenance will be around…

Sorry to interrupt, Sumangal, that was your question. I would request you to fall back in the queue for more questions. Thank you. The next question comes from the line of Ashish Jain from Macquarie India.

Sir, on the capacity for ACC, which -- the clinker capacity, which you think will be dismantled, what is the total capacity for the 3 plants put together? And the second part of the same question is then versus the 89 million ton clinker capacity that we are indicating in the presentation, does it include any further expansion which is currently not listed there? Or the real number will be lower than 89 once you scrap the 3 plants?

No. So in terms of -- let us first address in terms of the capacity for, let us say, Wadi I, it is around, say, 1 million tons. So far as Bargarh is concerned, also like 1 million. And so far as Chaibasa is concerned, around 0.6 million. So altogether, say, 2 or 2.5 million. And when we say 89 million for FY '28, this is already after factoring in this -- basically reduction of these capacities. This is part of the whole plan of 140 million tons journey. Ashish, does it answer your question?

Yes. Sir, it does.

The next question comes from the line of Shravan Shah from Dolat Capital.

Yes. Sir, 2, 3 things. First, the INR3,650 cost reduction that we are talking, what's the number for fourth quarter for that or maybe for FY '25?

So far as the fourth quarter number is concerned, we are actually at closer to INR4,250 a ton, right? So we are -- in a way, we should be higher of, say, around INR500 as of now. But this is like a variable which keeps moving. So this INR4,200 is what we'll be moving to INR3,650 with all the investment what we are planning to.

Okay. Got it. And second, on the incentive part…

Sorry to interrupt. Following that question, I would request you to fall back into the queue for more questions. The next question comes from the line of Ritesh Shah from Investec.

Sir, what is the industry level supply that we are looking at for next 2 fiscals? The average number would also do fine.

So, Ritesh, I will actually stretch myself to, let us say, up to 2030. And to me, industry supply will be at, say, 6% CAGR while demand will be at 7% to 7.5% CAGR. And therefore, I am at least bullish in terms of demand outpacing supplies. And therefore, we should have a good level of capacity utilization and holding up of the prices with a positive uptick. So these are like we should be targeting to, let us say, hit around, say, 950 million tons of cement capacity by 2030. And versus that, while demand overall in absolute terms will be lesser, but the overall growth, it will be bridging closer to the industry. So if I do a math, so far, 65% is what, say, industry capacity versus demand, but this w ill inch towards getting closer to 67%, 68% at the industry-wide level. This is like my reading for the next 4, 5 years.

The next question comes from the line of Satyadeep Jain from Ambit Capital.

Just want to check on, follow up on the question around impairment. How long have these plants been non-operational? What has been the main reason? And when you look at some of the other assets ACC has, are you confident that Lakheri, Kymore and all will also not have some impairments in the next couple of years?

Thank you, Satyadeep. I think Kymore is one of the best assets. I just was there recently 2 days back. There is no per se any thoughts of anything on that. It's like 100 -plus years of plant. But as you know, that we already have invested into overall up gradation of this plant. So generally, when you have the limestones, so Kymore, Ametha are like neighboring plants and with sizable limestone reserves. So that is, for example, you should allay any kind of concerns over there. So far as these 3 assets which I have mentioned, they have been -- basically, they are always an opportunistic asset depending on at what price of coal and therefore, what is the clinker cost, which you are able to get. And generally, now that we are putti ng up almost 10,000 to 12,000 TPD of clinkering units, therefore the cost arbitrage will be much higher for these new assets compared to some of these old assets. So we have been using them for some of the quarters, which is the opportunity. But in long run, we had always thought that we will have to redefine our strategy around it. And therefore, now we have taken a holistic call to do a proactive provisioning for these assets. The assets can be still operated if the coal prices comes down heavily, for example. So these are all like opportunities which are available. But as a long-term strategy, we think that the new assets which we are putting are substantially competitive as compared to these old assets. Therefore, we'll have to upgrade ourselves on that. On the Lakheri part, again, for example, Lakheri is, as of now, for example, doing very well. Although it is one of the oldest assets in the ACC setup, but it is doing again very well given the market and all. So per se, this will also continue to operate till the time we find it is adding value. And for right now, it is adding very good value.

And what's the strategy for northeast, sir, given the limestone you've acquired there?

So as you know, we have acquired the limestone and therefore, like, of course, we will evaluate in due course in terms of the strategy. We already are serving the market through our plants from Bengal, Farakka and Sankrail. So there is a very huge good popularity and demand for ACC and Ambuja, and that is a very positive thing for us and natural choice for us to move into looking up for a unit. So right now, we have just taken the limestone reserves, but we'll come to specific plans in due course.

The next question comes from the line of Pulkit Patni from Goldman Sachs.

Sir, if you could just talk about exit capacity utilization for Sanghi, Penna and Orient, that will be helpful.

Exit for FY '26, I have the number.

No, FY '25.

Okay. FY '25. So far as FY '25 is concerned, Sanghi is around 40% to 45%. So far as Penna is concerned, as I said, clinker is at a very good levels of 75%, 80%. And so far as cement is concerned, it is also hovering around, say, 45% to 50%. And so far as Orient is concerned, it's a listed company, you would know, bt it is hovering between 60% to 75%.

The next question comes from the line of Hiten Boricha from Sequent Investments.

Sir, my question is on the profitability. So last couple of days, our peers have been reporting the numbers and have been looking at their profitability. So especially the question was on the EBITDA per ton. So our recent peer has reported our EBITDA per ton in around 4 -digit numbers. And we are looking at mostly our capacity is pan -India. When our peers currently, I can name Dalmia Bharat, which has mostly capacity in the south where there has been more pricing issue. Then to the EBITDA per ton of this company is around INR1,000 per ton. So if you can comment on that, how are we looking to increase? I know you have given sort of like roadmap for like 2, 3 years, but if you can give some color on that.

The bulk is good. Like in terms of Dalmia, if you have seen, since you have specifically highlighted his name. So like you will know that Dalmia's overall ratio on the AFR and WHRS, especially on the AFR, they have a very healthy ratio. And the cost of fuel, therefore, for them is an advantage, which is a matter of time for us also now that we are already having a pipeline of all the AFR assets. And I told you, we are targeting ar ound 75% at the overall, say, business level. And therefore, what -- for example, during Holcim days, what they have not done the investment and the other players did the investment, it's a matter of like time, timing gap, actually, which we will also achieve it. So far as -- so that does it answer yo ur question in terms of, therefore, the cost part? So you look at the cost part and you will find the answer. So far as price is concerned, matter of time, like I'm like so far, prices of south was there, it was beaten till December. If you see the March quarter, the delta performance improvement of Ambuja Consol, which is almost, like, INR400 EBITDA, you have not seen this in any other leading companies' improvement. So you look at the quarter -on-quarter, December quarter versus March quarter, you will see that the delta improvement of Ambuja is far, far better and larger compared to any other larger company.

Sorry to interrupt, Hiten. That was your question. I would request you to fall back in the queue. The next question comes from the line of Pankaj Tibrewal from IKIGAI Asset Manager.

Congratulations to Mr. Bahety on the elevation and congrats on good numbers. Just can you give us a flavor on the pricing across pan -India? And what's your view in overall pricing terms, whether it be south or north? And how do you see the scenario going forward?

Good question, Pankaj. Like price is the biggest value driver in our industry. And like if you look at from December to March, different companies have already given the numbers. So the prices have improved price per bag between INR7 to INR10, for example. And as we move into, say, this financial year, again you are seeing a healthy trend on the price, which is better than what people have achieved in March. So prices in last 4 months, I will say that there's a good momentum backed by a buoyancy in the demand in the government capex spending and overall, say, consumption markets of the cement. So far as the pockets are concerned, pockets, for example, like overall, it is healthy, but you will see a good improvement in, say, south market. You have seen some good improvement in, say, central to western market. But eastern are a little subdued or for that matter, even north is a little subdued. But when I say subdued, maybe not as good as south because south has seen a substantial fall. Therefore, the delta will be a little higher and better in terms of percentage. But overall, at the country level, if you take a weighted average, we are seeing a good healthy traction on the prices.

And the second question is that you have done a few acquisitions in the last 12 to 18 months. Do you think from a company perspective, we'll digest those acquisitions, consolidate and then move forward? The traits of a great leader is that. And now the cap acities are there. So from a cultural perspective, from plant efficiency perspective, do you think this year will be a year, FY '26, more of consolidation rather than being aggressive on acquisition?

Pankaj, we highlighted that for FY '26, I think our key focus is and remains on the organic growth. And of course, you are right that in terms of consolidation, in terms of the overall integration, and we are in a very strong now ground in terms of integration. I mentioned to you, Sanghi. I highlighted about Penna. Orient is one of the best, for exa mple, asset which we have seen. And therefore, integration of these companies is natural because we are an acquired business. And we have actually tested the success of integration right from Ambuja and ACC. They were the giants who were operating as an independent company, and you'll see that how well it has been now achieved in terms of integration. And therefore, these smaller companies are going to be much easier and much better. And those employees are looking forward now that they are part of a 100 million tons cement capacity platform. From where they were like 4 million to 5 million or 8 million tons, I think now they're in a much, much larger platform. And in fact, I will get a lot of advantage on cost, on logistics and the motivation levels are very high.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments.

Thank you. I hope most of the questions have been answered, and we are available to discuss it

00 to 6:00 p m. You have my number. Please call me separately for unanswered queries.

Thank you, friends again. It is my pleasure that on this quarter, which is special, achieving 100 million capacity milestone is always special. And thank you that we are part of this journey. Look forward to achieve many more such successful milestones. Thank you again.

Thank you, sir. Ladies and gentlemen, on behalf of HDFC Securities Limited, that concludes this conference. You may now disconnect your lines. ------------------------------------------------------------------------------------------------------------------------------------------------------

This transcript has been edited to improve readability 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