india cements y 2012 earnings call 25 apr’12 - … call/130005_20120425.pdfindia cements y 2012...

India Cements Y 2012 Earnings Call 25 Apr’12

Operator Ladies and gentlemen, good evening and welcome to Post Results FY12 Earnings Conference Call of the India Cements Limited, hosted by MF Global Sify Securities India Private Limited. As a reminder for the duration of this conference, all participant lines will be in the listen‐only mode. There will be an opportunity for you to ask questions at the end of today's presentation. Please note that this conference is being recorded. At this time, I would now like to hand the conference over to Mr. Vaibhav Agarwal from MF Global Sify Securities India Private Limited. Thank you and over to you Mr. Agarwal.

Vaibhav Agarwal Thank you Terrance. On behalf of MF Global Sify Securities India Private Limited, we welcome you to the FY12 earnings conference call of the India Cements Limited. We will first have our initial round of presentation from the management and then we will take the Q&A. Over to you, sir.

T S Raghupathy, Executive President Good afternoon ladies and gentlemen. I would like to thank you for participating in this call. I'll give a brief ‐ this is Raghupathy. I'll give a brief view of the industry and thereafter I'll get into little bit of company details. The all India production and consumption went up by 6.6% for the year as a whole. But what is more interesting is for the first nine months, that growth in consumption was 5.4%, but for the quarter January, March country as a whole, the growth was an impressive 9.6%.

More importantly, as far as company's markets are concerned, south which registered a negative growth of 3% during the first nine months, recorded the demand growth very sharply and recorded a growth of during the quarter January, March. The capacity utilization of the industry on all India basis was 75% as opposed to 63% in the south.

ICL capacity utilization was 67%. Now, in the effect of our company's performance fourth quarter on year‐on‐year basis. Volume was more or less maintained. So, 25.28 lakh tonnes against 25.32 lakh tonnes last year. Thanks to better selling prices, EBITDA increased by about 22.6%, at 222 crores against 181 crores. EBITDA margin improved from 18.1% to 19.8%, again because from the back of better prices net plant realization went up by 12% to 3,465 per tonne as against 3,095 per tonne.

Variable ‐‐ there was some increase in variable cost of around 9%, primarily due to increase in price of fuel, power and dependence on hike offer and higher maintenance cost. Likewise interest charges were higher, primarily due to replacement of FCCB with that and provisions for ForEx fluctuation on pending LCs and fuller utilization of cash credit facility.

Freight and handling charges also went up by about 10%, primarily due to a reversion in cost of petroleum products and also due to value of rig. We also has the more long laid locations in order to further improve the dispatches, so all this contributed to a higher rate and handling cost.

Variable cost, because of all these factors, variable cost was also higher at 2,025 per tonne against 1,756 per tonne and increase of roughly about 15%.

Now, if you look at the year as a whole, cement sale was 94.5 lakh tonne against 99.3 lakh tonne with ‐ 4.85%. Primarily this is due the fact that the sale was ‐‐ the demand in South was as I said for the first nine months was pretty negative at 3%, so we could only ‐‐ we lost sales during the first nine months for ‐ demand.

EBITDA went up by almost 100% from 473 crores last year to 929 crore. NPR went up by 29% from 2,660 per tonne to 3,430 per tonne. As I said variable cost was also up by 11% at 1,954 per tonne as against 1,756 per tonne last year. This was again primarily due to fuel, power and raw material cost.

Interest charges are substantially higher at 287 crore as against 142 crore. Freight cost was higher at 793 per tonne against 712 per tonne. By and large the distribution pattern was between Tamil Nadu and Kerala, we sold about 64%, AP was around 18% and Karnataka 16% and other markets about 2.25%.

Now, overall debts of the company as on 31st March was around 2,700 crores against 2,455 crores last year March.

Cash on hand 3 crores against 33 crores and what we have planned by way of capital expenditure for the next two years towards power plant, mining land and replacement CapEx et cetera is about 550 crores.

With respect of shipping and IPL, shipping EBITDA was 3.37 crores as against 3.26 crores year‐on‐year. Year as a whole 7.26 crores against 9.76 crores last year. Likewise IPL year‐on‐year basis EBITDA is minus 1.81 crores for the

quarter as against 1.21 crores last year. Year as a whole EBITDA this year is 41.30 crores against 0.35 crores last year.

Some general information imported coal usage was around 60% and imported coal price is about US$118 and in Indian rupees worth was Rs. 6,900 last year is now Rs. 7,400.

Indigenous coal cost went up from 3,700 per tonne to 4,000 per tonne.

Average cost of coal was around Rs. 6,400 per tonne.

In respect of power plant Shankar Nagar the first boiler have stabilized 25 megawatts commissioned in January and went in to commercial production in March it was stabilized at near 100% second boiler of another additional 25 megawatts we are going to commence very shortly may be in the next couple of weeks.

As with our coal project we have all approvals procedures and other clearances are in place. And roads connecting roads have been more or less ‐‐ bridge construction is in the final stage we expect steal structures are being installed and we expect the bridge construction to be over by middle of May.

Thereafter it should be possible for the mining contractor to take the equipment and enter the mine. Basically, the delays were unavoidable because of interests and very heavy range. This is about India Cements.

In the sector of Trinetra, volume for the fourth quarter was 3 lakh tonnes against 2.72 lakh tonnes in the previous quarter. EBITDA went up to 12 crores as against 7 crores in the previous quarter. On account of better prices, net plant realization was up by 9% at 2,946 per tonne as against 2,740 per tonne in the previous quarter.

Power plant is running steadily except for some now and then which are being up and there too. During the quarter the loss has been dropped down to 4 crores as against 12 crores in the previous quarter.

Now the prices have improve further and NPR has also improve further and we believe that we will be in money during this year. By enlarge this is snapshot of the industry and the company. We'll be quite pleased to answer any query and any clarifications that you may request. Thank you.

Questions And Answers

Operator Thank you so much sir. We will now begin with the question‐and‐answer session. [Operator Instructions]. We have our first question from the line of Rajesh Kumar Ravi from Karvy. Please go ahead.

Rajesh Kumar Ravi Yeah, good evening sir. Hello?

T S Raghupathy, Executive President Yes.

Rajesh Kumar Ravi Could you share the realizations that you have made in this quarter, because sequentially I see that on a standalone basis the realization have sequentially declined. Any reasons for the same or what are your numbers, net realizations and ‐?

T S Raghupathy, Executive President Net plant realization is the same. Actually 3,465 per tonne as against 3,461 per tonne in third quarter.

Rajesh Kumar Ravi Would you please repeat the numbers again?

T S Raghupathy, Executive President 3,465 versus 3,461 in the third quarter.

Rajesh Kumar Ravi 3461 in the ‐‐ okay. So, and what would be the other operating incomes like the IPL revenue and the shipping revenues? Could you share the revenue numbers?

T S Raghupathy, Executive President Yeah, for the quarter?

Rajesh Kumar Ravi Yeah, for the quarter and ‐‐ yeah.

T S Raghupathy, Executive President IPL was on 0.15.

Rajesh Kumar Ravi How much?

T S Raghupathy, Executive President 0.15.

Rajesh Kumar Ravi Crores?

T S Raghupathy, Executive President Crores, yes.

Rajesh Kumar Ravi Okay. And full year is?

T S Raghupathy, Executive President Shipping was 11.38 crores.

Rajesh Kumar Ravi 11.38 crores. And similarly for the full year?

T S Raghupathy, Executive President For full year, IPL was 137.29.

Rajesh Kumar Ravi 137.29 crores.

T S Raghupathy, Executive President And then the shipping was 37.42.

Rajesh Kumar Ravi 37.42. Okay. And so, could you give the IPL EBITDA for the quarter?

T S Raghupathy, Executive President It was minus 1.81.

Rajesh Kumar Ravi Minus 1.81 crores. So what is the status of the coal mines in Indonesia? What amount of volumes do you expect to doing this quarter ‐‐ this year in FY13?

T S Raghupathy, Executive President No, like I said, all the roads, connecting roads has been done up normally. These roads are very slushy and with lot of coal. So we have done up all the roads to sort of metal ropes and motorable ropes, and the bridge connecting the river and the mines is almost complete. We are in the final stage. It will take maybe another three weeks, and that after the mining contractors can enter and start the activity of selling the trees and start working on the mine plan et cetera. So, hopefully we should be able to commence, start seeing coal from the second quarter. So first quarter, we can not ‐‐ and what would be the run rate that you are expecting on a monthly basis?

T S Raghupathy, Executive President Beg your pardon?

Rajesh Kumar Ravi What would be the monthly run rate that you expect to mine?

T S Raghupathy, Executive President No, it's too early days to mention. First we need to start mining and get to know the operation before we will be in a position to ‐.

Rajesh Kumar Ravi Okay, no issue sir. On the captive power plant, the one that you have said that is undergoing stabilization, when do we expect sizable volumes coming in from there under another 50 megawatt that is by the end of FY14 that we are expecting, could you throw some light on that?

T S Raghupathy, Executive President No, the first boiler in 25 megawatt which is happening fully.

Rajesh Kumar Ravi So, that's 25 megawatt is fully operational?

T S Raghupathy, Executive President Yes. Second boiler has been sort of ‐ and we expect that to stabilize, that is an equal 25 megawatts. We expect that to stablize in the next two to three weeks.

Rajesh Kumar Ravi Okay. And the remaining?

T S Raghupathy, Executive President So, it's that in the month of June from ‐‐ after 10th of June we should be having entire 50 megawatts in place.

Rajesh Kumar Ravi T S Raghupathy, Executive President That is in Andhra.

Rajesh Kumar Ravi Yeah.

T S Raghupathy, Executive President We are looking at March. ‐ sometime in March 2013.

Rajesh Kumar Ravi March 2013, so FY14 we should be having contribution from there?

T S Raghupathy, Executive President Yeah, yeah. Definitely.

Rajesh Kumar Ravi Okay. That's all from my side for now sir. Thank you for your comments. Thanks.

Operator Thank you. We have our next question from the line of Dhimant Kothari from Religare Mutual Fund. Please go ahead.

Dhimant Kothari Good afternoon, sir.

T S Raghupathy, Executive President Good afternoon.

Dhimant Kothari I wanted to know why the salary cost ‐‐? Yeah, I wanted to understand the sequential increase in the salary cost for this quarter, is that a year‐end adjustment or how it is?

T S Raghupathy, Executive President Dhimant Kothari Okay.

N. Srinivasan, Vice Chairman and Managing Director And also provision for ‐‐salary

Dhimant Kothari Okay sir. And could you share the annual sales and EBITDA number for IPL.

N. Srinivasan, Vice Chairman and Managing Director What?

Dhimant Kothari IPL, the annual sales and EBITDA number?

V M Mohan, Joint President, Corporate Finance 137 crores is revenues

Dhimant Kothari Okay

N. Srinivasan, Vice Chairman and Managing Director And 41 crores is EBITDA.

Dhimant Kothari Okay and how much of it is of the cost is included in employee expenses for the year.

N. Srinivasan, Vice Chairman and Managing Director Sorry?

Dhimant Kothari How much of the expenses relating to IPL are employee expenses.

N. Srinivasan, Vice Chairman and Managing Director It will be very, very little. Because, expenses relating to IPL are in administrative category.

Dhimant Kothari Okay, okay.

V M Mohan, Joint President, Corporate Finance Employee cost

Dhimant Kothari Okay. That shall be all from me. Thank you

Operator Thank you. We have the next question from the line of Navin Sahadeo from Edelweiss Securities. Please go ahead.

Navin Sahadeo Yeah, good afternoon sir. Good afternoon sir. Hello?

V M Mohan, Joint President, Corporate Finance Good afternoon.

Navin Sahadeo Good afternoon, Navin.

Navin Sahadeo Yes first question was with respect the brand ratio for the quarter and if I am looking at the numbers correctly I am simply just doing a simple arithmetic of cement production clinker production adjusting to the clinker sales that brand ratio in the last three quarters was about 1.3 on a average of 1.31 for the quarter it seems to have dropped to 1.15. Any comments on that as to like it is a conscious decline in the blending ratio or non availability of the mixing ingredients.

N. Srinivasan, Vice Chairman and Managing Director See we have sold clinker during the quarter yes. Yeah adjusted to that. Sir I have adjusted to that.

V M Mohan, Joint President, Corporate Finance No adjusted it can be 1.31

N. Srinivasan, Vice Chairman and Managing Director 1.31 only, Navin.

V M Mohan, Joint President, Corporate Finance It is around 1.3, 1.31.

Navin Sahadeo Okay so you are saying Okay so may be I will recheck my calculation.

V M Mohan, Joint President, Corporate Finance There must be some sort of mistake but conversion continues to be around 1.31

N. Srinivasan, Vice Chairman and Managing Director 1.31 only for this quarter also.

Navin Sahadeo Okay. Second question

V M Mohan, Joint President, Corporate Finance ‐‐ is also around 74%

N. Srinivasan, Vice Chairman and Managing Director 74% PPC as in blendish

N. Srinivasan, Vice Chairman and Managing Director Blended cement, yes Blended cement. Okay. Second sir any clarity to mean you said from next quarter you will see the import coal from Indonesia coming through but any idea now on the cost or should we still wait for the same.

V M Mohan, Joint President, Corporate Finance I think it's better we wait for a while because all the cost today are on paper only when we start hitting the pole that we'll be able to get up from ‐‐

Navin Sahadeo Okay. And one last question if I could please ask. The power and fuel cost sequentially on a ‐‐ basis has just remained flat no I thought I was assuming a slight decline because may be with improved coal availability from the Singareni mines, some bit of decline in the international coal prices, could have yielded some benefits?

T S Raghupathy, Executive President Yes, that one was overall variable cost.

Navin Sahadeo Overall barring fuel cost, has remained just flat.


Navin Sahadeo We were expecting some bit of decline because as I said, improved availability from the Singareni coal mine and also some bit of decline in the international coal prices?

T S Raghupathy, Executive President There has been an increase in price also, because open market coal we are buying, that is the cost plus coal. So, there has been an increase in the cost of Singareni coal also, number one.

Number two, the fuel price has also gone up, the power cost has also gone up because of the load shading and also non‐availability of power. We have to result to high cost power from Tata Power and all that, during this quarter.

Navin Sahadeo Okay.

T S Raghupathy, Executive President Navin Sahadeo Rs. 3.58. Okay, but do we...

T S Raghupathy, Executive President That will have an impact of nearly Rs. 25 to Rs. 30 per tonne on cement.

Navin Sahadeo Sure, sure. Fine sir, fine. Thank you, thank you very much.

Operator Thank you. We have our next question from the line of ‐‐ Shetty from ENAM Securities. Please go ahead.

Analyst Hi sir, Nitesh over here. Just a clarification. In the beginning, you mentioned some growth numbers for the industry. So I believe, those numbers are without ACC Ambuja, is that correct?

T S Raghupathy, Executive President No, its actually, it includes ACC and Ambuja also. See, the overall production as I said is on 2011, it has gone up to 225 million tonnes.

Analyst Okay.

T S Raghupathy, Executive President The growth rate by in large is going by the trend. It will be more or less same even if we include Ambuja and ACC.

Analyst

Alright and even from the ‐ yes?

T S Raghupathy, Executive President In terms of growth rate, yes. And even for the regional growth number that you give ACC Ambuja numbers included. For example, you mentioned it for south, the Q4 growth is about 9% as against first nine month is only 3%, so that also includes ACC Ambuja, is it?

T S Raghupathy, Executive President See, we don't have the exact number for the fourth quarter, but as I said, I am only going by the trend, the trend cannot be very different from what has happened to other unit. So, I believe it should be around the same.

Analyst All right sir, not a problem. Sir, my second question is this demand growth in south, you mentioned that there is a mark improvement in south in later part of the year. So, what kind of sustainability you are looking at or have you seen any marked improvement in the say some of the keys things in Andhra Pradesh, or you are getting comfort that it will be sustained or will be again back to say 3%, 4% or probably zero growth in south particularly.

T S Raghupathy, Executive President Basically, in respect of Andhra Pradesh, for the first nine months, it was almost minus 10%, which has come down to minus 2% in the fourth quarter, primarily because the government has started some spend on housing and also on growth.

Analyst Okay.

T S Raghupathy, Executive President Now, they have placed orders on the cement factories or supply of cement for both housing as well as for road for this quarter also.

Analyst Is it?

T S Raghupathy, Executive President So I think some further plan has been put into place to take up some development activity. So therefore, we believe that Andhra should fair much better and what it was last year and the year before last. And possibly, some more fund allocation is being made by the Central Government. I mean this is what we guess ‐ we don't really know the actual position, but all that we know is they have started placing orders for housing and for roads.

Analyst T S Raghupathy, Executive President Well, that is the only project which is not really coming to play, they have just about started, in fact in terms of putting the consistent material in the market place, I think it may take a month or two.

Analyst All right.

T S Raghupathy, Executive President Otherwise, all other major projects which were in pipeline, let's say six months back like Jindal and couple of other plants, all are in production and all are in the market also.

Analyst So as such, going forward say next one year. You do not see any big project which is still yet to come on scene. More or less all are done, right ?

N. Srinivasan, Vice Chairman and Managing Director There are couple of them still. We ‐‐ have start plant of which is near Malkapur in Karnataka, that has to start production in terms of clinker production.

And then the Vikat plant in Karnataka which will come on stream. So, this should happen by end of this financial year.

Analyst And this ‐‐ plant, how many million tonne sir?

N. Srinivasan, Vice Chairman and Managing Director I think it's 2 million tonne.

Analyst 2 million tonne. Okay. Thank you so much sir. I appreciate your response.

Operator Thank you. We have our next question from the line of Sonali Salgaonkar from CRISIL. Please go ahead. Good afternoon sir.

N. Srinivasan, Vice Chairman and Managing Director Good afternoon, Sonali.

Sonali Salgaonkar Yes, sir what is the proportion of dispatches by rail and road for your company in this quarter and for the entire year?

N. Srinivasan, Vice Chairman and Managing Director It is roughly 75%, 75% to 77% by road and balance

Sonali Salgaonkar Okay. Sir my next question is in your sense what would be the estimated growth in South India over the next one or two years and what would be the key drivers for that?

N. Srinivasan, Vice Chairman and Managing Director

Actually our guess is as good as your because the key drivers has been majorly private sector housing and private sector projects.

Sonali Salgaonkar Okay.

N. Srinivasan, Vice Chairman and Managing Director But as I said, Tamil Nadu government is also set up an ambitious industrial policy has put in very ambitious industrial policy in place.

And Andhra, the government finally have started spending some money on housing projects.

Sonali Salgaonkar Okay.

N. Srinivasan, Vice Chairman and Managing Director And Kerala and Karnataka are growing on it's own, so I think South growth should grow up at least by 1% or 2% compared earlier year. Alright. Okay. Thanks, sir. Thanks for your answers.

Operator Thank you. We have our next question from the line of Neha Manpuria from J.P. Morgan. Please go ahead.

Neha Manpuria Thanks for taking my question, sir. My first question is on in terms of pricing. It seems that it was flat quarter‐on‐quarter but we did see some improvement in end of March and April so in that sense should we expect realizations to improve from here?

N. Srinivasan, Vice Chairman and Managing Director Yes, I think this quarter will be better than last quarter.

Neha Manpuria Okay. And in terms of cost would it be right to see that there is still some cost pressure left and we could cost going up further. In your case, probably you would see benefit from commissioning of your power plant but otherwise is this has the cost peaked here or how should we look at the cost going forward?

T S Raghupathy, Executive President There should be some marginal reduction in the fuel cost.

Neha Manpuria Okay. But otherwise you expect cost to remain ‐‐?

T S Raghupathy, Executive President Yeah, otherwise the cost will remain more or less constant because it may be neutralized by the increase in power cost during this

quarter because ‐‐ still we are dependent on ‐ of power.

Neha Manpuria Okay.

T S Raghupathy, Executive President Because there is mill power ‐‐ power holidays are being extended in Tamil Nadu as well as in A.P. So the power holiday means mill power from the electricity board. Okay, okay, okay.

T S Raghupathy, Executive President So we need to buy power at the higher price from the exchange.

Neha Manpuria Okay, okay.

T S Raghupathy, Executive President So it is slightly influenced.

Neha Manpuria Okay. And sir in terms of our CapEx plan, the 550 crores that you mentioned over the next two years, are we look ‐other than this are we looking at any expansion on the ground either in South India or outside South India?

T S Raghupathy, Executive President No, 550 crores is majorly for the power plant and the coal and regular CapEx only.

Neha Manpuria Yes, that's right.

T S Raghupathy, Executive President Not for any cement, the capacity is ‐.

Neha Manpuria Yeah, that's why ‐ outside this, do we ‐‐ are we considering any other projects either on the drawing board or looking at expanding outside of South India?

T S Raghupathy, Executive President See, actually we are now looking at ‐‐ and in expanding, because it will at least take 2.5 to 3 years if we start the process now.

Neha Manpuria T S Raghupathy, Executive President

So we are looking at expansion and we will be finalizing that we want to not carry out this shortly. But in any case we believe, it will at least take nine to 12 months for us to commit usually for the projects, because we know the accruals themselves will take some time.

Neha Manpuria Okay, got it. Thank you so much sir.

T S Raghupathy, Executive President We will start to work on it, the expenditures most likely may start happening from the end of the year or in next year.

Neha Manpuria Okay, got it. Thanks so much sir. Appreciate it.

Operator Thank you. We have a next question from the line of Sri Harish Seshadri from Sundaram Mutual Fund. Please go ahead.

Sri Hari Seshadri Hello. Can you hear me? Good evening Sir. Hello?

T S Raghupathy, Executive President Good evening.

Sri Hari Seshadri Sir, my question more towards the regulatory stuff. I saw a news article regarding the power plant, there was some public interest litigation. So, can you throw light on that issue, is that of significant importance? And also regarding the competition commission, how do you view with respect to some other industries facing similar some penalty?

T S Raghupathy, Executive President The public interest litigation has become the order of the day and people file PALs for the heck of it, and the subject is some PAL has been filed in Madurai and this is our third or fourth, the earlier ones have been dismissed.

Sri Hari Seshadri T S Raghupathy, Executive President So, I think it's a formality which we need to go through.

Sri Hari Seshadri Okay.

T S Raghupathy, Executive President And regarding competition commission, the correct position is that they have sent notices to number of companies including ours asking for certain details and data, which has been furnished.

Sri Hari Seshadri Okay. So, do we expect the time line regarding that sir? Or you have a time line like when the order might come?

T S Raghupathy, Executive President No, it's for them to fix ‐‐ I think we are still at it, and we don't know what ‐‐ finally what they are going to decide or what the time line we will scale?

Sri Hari Seshadri Okay, sir. Thanks for answering these questions. Thank you.

Operator Thank you. We have our next question from the line of Jinesh Gandhi from Motilal Oswal. Please go ahead.

Jinesh Gandhi Hi sir. My question is, first I needed some data points. NPR for FY12 you mentioned was 3,430?


Jinesh Gandhi And how much it was for FY11? 2,661.

Jinesh Gandhi 2,661. Secondly, EBITDA for shipping for fourth quarter this year you mentioned of 3.37 crores?


Jinesh Gandhi And for last year 3.26 crore was EBITDA loss?

T S Raghupathy, Executive President Yeah.

Jinesh Gandhi Okay. So it's almost doubling of number there, from loss to profit?

T S Raghupathy, Executive President

Yes.

Jinesh Gandhi And with respect to coal requirement of the balance 40% which you source from open ‐‐ from domestic market, what would be split between open market and linkage?

T S Raghupathy, Executive President Linkage coal will be roughly around 60% of the balance coal.

Jinesh Gandhi So about ‐‐.

T S Raghupathy, Executive President 40% would be open market.

N. Srinivasan, Vice Chairman and Managing Director Cost

Jinesh Gandhi Yeah, okay and for the numbers which you gave for Trinetra we are pertaining on quarter‐on‐quarter basis fourth quarter versus, third quarter right?

N. Srinivasan, Vice Chairman and Managing Director Yes yes.

Jinesh Gandhi Okay. And coming to the operational side, in the press release you have mentioned that operating other income includes revenues from IPL and shipping business. Is that correct?

N. Srinivasan, Vice Chairman and Managing Director What is that? Come again

Jinesh Gandhi In your financial press release you have mentioned that operating other income includes income from IPL and ship freight.

N. Srinivasan, Vice Chairman and Managing Director Yes

Jinesh Gandhi So because when I look at FY12 numbers operating other income is roughly about 11.8 crores for full of FY12. Where as shipping and IPL combined is about 175 crores. So it somehow match these numbers somehow doesn't match

N. Srinivasan, Vice Chairman and Managing Director No no income of operations include.

Jinesh Gandhi Okay other operating income is not including that right?

N. Srinivasan, Vice Chairman and Managing Director Jinesh Gandhi Okay I understood right so there was

N. Srinivasan, Vice Chairman and Managing Director other operating income.

Jinesh Gandhi Right so there was a misunderstanding. And would you be sharing revenues for revenues and EBITDA for windmill for fourth quarter?

N. Srinivasan, Vice Chairman and Managing Director Windmill?

Jinesh Gandhi Yeah

N. Srinivasan, Vice Chairman and Managing Director Wind mill fourth quarter revenue was 65 lakhs.

Jinesh Gandhi 65 lakhs only okay.

N. Srinivasan, Vice Chairman and Managing Director Not major expenditure

Jinesh Gandhi Okay understood, understood. And you indicated that staff cost was higher because of remuneration for Directors in this quarter would you be able to quantify that?

N. Srinivasan, Vice Chairman and Managing Director ‐‐ both Yes. So how much would be remuneration for Directors of that?


Directors will be about 11 crores

Jinesh Gandhi Okay. And leave would be about another 10 crores

N. Srinivasan, Vice Chairman and Managing Director No leave has incremental provision based on evaluation would be about 11 crores

Jinesh Gandhi 11 crores? 10 to 11 crores. Okay, okay. And also in the press release you have mentioned that Coromandel Electric Company has now become a subsidiary. Can you shed more light on this what is the Coromandel Electric Company and what does it do and how much stake we have?Hello?

N. Srinivasan, Vice Chairman and Managing Director See, we have been actually drawing the power supply but Coromandel Electric Company Limited for the past six‐seven years actually.

Jinesh Gandhi Right.

N. Srinivasan, Vice Chairman and Managing Director It is based on ‐‐

Corporate Participant It was associated last year we have one of the subsidiary and they had a merger activity during this quarter ‐‐ company

Jinesh Gandhi Okay.

Corporate Participant Jinesh Gandhi Okay.

Corporate Participant So because of that these ‐‐ have also become a subsidiary because ‐‐ shareholding in CEC Coromandel Electric Company one of our subsidiaries has become a ultimate ‐‐

Jinesh Gandhi Okay. So, now we have become ultimate ‐‐

Corporate Participant

Coromandel Electric Company was associated some time back and we were buying power ‐‐

Jinesh Gandhi Right, right. Okay. And lastly with respect to your Indonesia coal I understand we plan to replace some portion of our imported coal. What would be the cost of imported coal which we want to replace by Indonesian coal?

N. Srinivasan, Vice Chairman and Managing Director Cost of imported coal for as of now will be ‐‐ cost will be close to Rs.7,500.

Jinesh Gandhi Yeah, but that would be of multiple ‐‐ value. Isn't' it?

V M Mohan, Joint President, Corporate Finance Yeah. That is actually 6,000 kilo ‐‐

Jinesh Gandhi Yeah, at

N. Srinivasan, Vice Chairman and Managing Director For a 6,000 kilo‐‐ important coal it will be cost will be around $115 to $150 multiplied by the fact ‐‐ it comes to Rs. 7,500. So the same coal we plan to replace by captive coal from Indonesia.

N. Srinivasan, Vice Chairman and Managing Director No not really this coal that we will be mining is more of power grade coal with lower ‐‐ higher moisture.

So, what really we will be doing is that two things one is we will be majorly using this coal for power, plus we will also be blending our own mine coal with high salary, high CV coal, what proportion et cetera, we will know only after we start mining, so it will be a blend of both. So it's not that individual ‐‐ I mean our own mine coal will 100% replace, substitute the existing imported coal.

Jinesh Gandhi Okay, okay, understood, understood. And lastly, on the captive power plant, when would be the second phase starting for the current one?

T S Raghupathy, Executive President Shankar Nagar second phase will happen very soon, may be in the next three to four weeks.

Jinesh Gandhi Next three to four weeks. And what kind of savings we expect from this captive power, now that it will be replacing the great power which costed us about Rs. 3.7 ‐‐ Rs. 3.6, Rs. 3.7 per unit?

T S Raghupathy, Executive President I'm not able to get you?

Jinesh Gandhi What kind of savings we expect from captive power?

T S Raghupathy, Executive President See, the battery power rate has been actually increased in Tamil Nadu also.


T S Raghupathy, Executive President That is from Rs. 4 to Rs. 5.50. Okay.

T S Raghupathy, Executive President See that we have given the current coal cost and all that, without considering even our own coal.


T S Raghupathy, Executive President So, the current coal cost, it should give a saving up around Rs. 1 to Rs. 1.5 per unit.

Jinesh Gandhi Okay, okay. Understood.

T S Raghupathy, Executive President On the operating cost.

Jinesh Gandhi Right, right, right, understood. Okay sir, thanks. Thanks a lot and all the best.

T S Raghupathy, Executive President Excuse me?

Operator Thank you. We have our next question from the line of Rahul Kumar from Jefferies. Please go ahead.

Anand Agarwal Yes, good afternoon this is Anand Agarwal hear. Sir, could you give me the revenue for the clinker sales this quarter?

T S Raghupathy, Executive President 20.3 crores. Sorry, 20.0?

T S Raghupathy, Executive President 20.3 crores.

Anand Agarwal 0.3 crores, okay. And has there been a change in the foreign currency this translation treatment in this quarter. I mean till last quarter, you were writing‐off the short‐term or the fluctuation on the short‐term liability in the P&L, has it been change in this quarter and if so what is the impact?

T S Raghupathy, Executive President There has been a change of the business even in the third quarter, and there is a disclosure note in the press release, it will say that consequent to the permission granted by the ministry, the company as expressed and offset. So, as far as assets are concerned, and the asset that has been acquired out of a foreign currency, the variation gets added or we subtracted from the cost of the assets.

As with that August portion, that I just continue to be carried forward, like differed revenue expenditure and I guess for over the currency or the foreign currency ‐ there is a phase of foreign currency, as far as some variations are adjusted to the P&L.

Anand Agarwal Sir, but this time around, I mean I think in the ‐‐ even I think I mean, okay. So, as last time around the short term impact was 137.6 million, what was the impact in this quarter?

T S Raghupathy, Executive President Yes, it is for the current year, for the current last quarter, it is 6.3 crores.

Anand Agarwal This is a positive impact or negative impact?

T S Raghupathy, Executive President No, no, no, negative, negative, negative, 6.3 crores.

Anand Agarwal 6.3, so otherwise I mean the ‐‐ your interest expense would have been lower to that extent, I mean excluding this? No, it is 6...

T S Raghupathy, Executive President No, it is 6.3. It is like this. Interest would have been 70 crores.

Anand Agarwal Okay.

T S Raghupathy, Executive President And there is a saving between 31st December and now to the extent of 6.3 crores. So, therefore the interest that has been dEBITed at 64.

Anand Agarwal Okay. So that's what, there is positive impact in this quarter?

V M Mohan, Joint President, Corporate Finance Yes, positive impact.

Anand Agarwal Correct. Otherwise, the interest, I mean so basically 70 crores would have been your interest expense otherwise.

V M Mohan, Joint President, Corporate Finance Yes, exactly.

Anand Agarwal Okay, okay. And second I think, sir if I remember, on the December quarter, you had mentioned that you will be closing the year with MAT, I mean if the effective tax rate has come out to be higher at 23% or so, and in for this quarter is much higher, so one, any particular for this? And second, how do you look at it for FY13?

T S Raghupathy, Executive President For tax release?

Anand Agarwal T S Raghupathy, Executive President I just want to intent, it was our only tax unit for the financial year '13?

Anand Agarwal Okay.

T S Raghupathy, Executive President And if you look at this current quarter, the taxation for the financial year ended '12, as well as for the current quarter will be approximately the corporate tax base. Including the deferred tax rate. You will have to look at current tax and deferred tax. Current tax was lower in last year, and deferred taxes were higher.

Anand Agarwal Okay. And just last, I mean, would you like to give any guidance for volume for FY13?

T S Raghupathy, Executive President In ballpark, we there own 10 million tonnes.

Anand Agarwal Okay. Thanks a lot.

Operator Thank you. [Operator Instructions]. We have our next question from the line of Ajit Motwani from Emkay Global. Please go ahead.

Ajit Motwani Yeah, good afternoon sir. Thanks a lot for taking my question. Sir my question is on you know the great power tariff hikes in some of the states. Hello?

T S Raghupathy, Executive President Yeah.

Ajit Motwani A.P is close to about 10%, 15% effective March to Tamil Nadu at least the low tension lines are at least about 29% increase, Maharashtra is about 10. So, just wanted to know on a blended basis, what was the cost in FY12 and how do you see that for FY13 for the grid power purchase?

T S Raghupathy, Executive President As far as Tamil Nadu is concerned, it will not have much impact on us because we will be trying practically mill power from ‐ grid.

Ajit Motwani Okay.

T S Raghupathy, Executive President Whereas in the case of Andhra Pradesh, they will have an impact of around 70% from the grid power.

Ajit Motwani Okay. So for all the production that it will ‐ you will be depending 70% on that, and that will go about 10 to 15?

T S Raghupathy, Executive President Which one?

Ajit Motwani That Andhra power cost will go up by 10 to 15% from the grid.

T S Raghupathy, Executive President Yes 10% to 15 % in Andhra production alone.

Ajit Motwani

And Maharashtra, 10, 15 ‐‐?

T S Raghupathy, Executive President Maharashtra was ‐‐ I mean exposure is very, very limited, because it is only up to the early grinding on it we are managing. Only the grinding unit, so only for the grinding power, it may have an impact not much, actually we saw that also, that's very significant.

Ajit Motwani T S Raghupathy, Executive President Let us come on to the mining and see, we don't want to comment anything unless we ‐ mining and experience it. Because so much of news has been floating around, we want to really experience before commit anything on there.

Ajit Motwani Okay. But you know you will some idea because ‐‐?

T S Raghupathy, Executive President No, royalty will be ‐‐ what are government charges. I mean quite frankly, as of now, I mean may be $2, $3 or $3, $4 per tonne. We have not really looked at it because we have not started production, and nothing major, I mean nothing to be bothered about, concerned about.

Ajit Motwani Okay. And sir one last question, I was looking at your freight cost, do your NPRs on a sequential basis are flat, your freight cost have gone up by about 4.2 odd percent even though your dependence on the rail is only 26 odd percent. So just wanted to know the reason for this.

T S Raghupathy, Executive President No, see the two components to the freight cost, one is the road freight cost also which keeps growing up on account of and diesel price and other operating cost of running the trucks. And in respect of rail movement, see basically while ideally we would like to sell the entire quantity in South, we have to reserve to certain long‐lead moments also but for two reasons, one is there is market in East and West. And also sometimes we have restrictions by the railways for movement to South. So, a longer lead movements obviously belongs, involves more freight. So ‐‐ and also the railway freight was increased from I think from ‐‐.

Ajit Motwani That was on 6th of March.

T S Raghupathy, Executive President Around 1st of March or something, and the increase was slightly healthy. This is the combination of all this reflect to freight.

Ajit Motwani So largely it is the lead distance that has gone up. Yeah, yeah. No, not only the lead distance, railway freight also costs went up.

Ajit Motwani Sure. Yeah, that's it from my side. Thanks a lot.

Operator Thank you. We have a next question from the line of Amit Rathi from Merrill Lynch. Please go ahead.

Amit Rathi Thank you. My question had been answered.

T S Raghupathy, Executive President A bit louder please.

Operator Sir his question is done. We have our next question from the line of Ajay Vora from Enam Asset Management. Please go ahead.

Ajay Vora Yeah, even my question has been answered. Thanks.

Operator Thank you. We have a next question from the line of Rajesh Kumar Ravi from Karvi. Please go ahead.

Rajesh Kumar Ravi Hi, sir. One follow up question, you carried on the volume front of ballpark figure of 10 million, yeah, 10 million tonnes now this is what you have already done in FY12, so you don't see any volume growth happening in FY13?

V M Mohan, Joint President, Corporate Finance 9.4 only this year.

Rajesh Kumar Ravi This is your excluding the what I'm saying is from CME data

N. Srinivasan, Vice Chairman and Managing Director 10 million excluding Trinetra.

V M Mohan, Joint President, Corporate Finance This 10 million excludes Trinetra

Rajesh Kumar Ravi No excluding Trinetra also the total cement dispatch itself is coming at 9.4, so you are saying 10 million tonne is excluding Trinetra?

N. Srinivasan, Vice Chairman and Managing Director Yes.

Rajesh Kumar Ravi Okay. And

N. Srinivasan, Vice Chairman and Managing Director ‐‐ other 1.2 million

V M Mohan, Joint President, Corporate Finance 1.3 million tonnes

N. Srinivasan, Vice Chairman and Managing Director 1.2 million tonnes to 1.3 million tonnes will be from Trinetra.

Rajesh Kumar Ravi Okay. 1.2. So this is excluding clinker sales you would be ideally not wanting to sell clinker? Hello.

N. Srinivasan, Vice Chairman and Managing Director Opportunity based if anything comes we sell.

Rajesh Kumar Ravi Okay.

N. Srinivasan, Vice Chairman and Managing Director We don't know if any opportunity come we will definitely sell clinker

Rajesh Kumar Ravi Okay. And sir overall industry capacity you would have some numbers on the what amount of capacities got added in FY12 and in your as region as well as Pan India and similarly for FY13?

N. Srinivasan, Vice Chairman and Managing Director We had capacity version or around 63% for industry in South. We expected to remain more or less on that level I mean ‐‐ marginally

Rajesh Kumar Ravi Absolute numbers you have some data industry and Southern market both.

N. Srinivasan, Vice Chairman and Managing Director No, you are talking about absolute number, absolute capacity is it

Rajesh Kumar Ravi Yeah, absolute capacity addition in FY12 and FY13 though what's happened in FY10 or what do you expect in FY13 to go on stream

N. Srinivasan, Vice Chairman and Managing Director The capacity including the so called minis which have become 120 million last year is likely to by this year it will be 130 million and around the same capacity utilization the growth will be taken care of.

The growth we are expecting this year. ‐‐ capacity is going up from 120 million to 130 million tonnes.

Rajesh Kumar Ravi So this has already happen or you see this 10 million in FY13?

N. Srinivasan, Vice Chairman and Managing Director More or less happened if you include Jayprakash and Balaji plant and JSW and all those things and part of ‐‐ will come this year

Rajesh Kumar Ravi Analyst Okay, so this is 10 million tonne of addition and sort of additions you expect in FY13.

N. Srinivasan, Vice Chairman and Managing Director FY13 as I told you that's whatever we have told you this is the full capacity will come in this year and full production will come this year and by end of FY13 we are expecting the Vikas plant in Karnataka

Rajesh Kumar Ravi 5 million tonne.

N. Srinivasan, Vice Chairman and Managing Director ‐‐ clinker production in Karnataka.

Rajesh Kumar Ravi Okay so another 5 million tonne to 6 million tonne at least?

N. Srinivasan, Vice Chairman and Managing Director Yeah.

Rajesh Kumar Ravi Okay. All India basis you have any numbers to share

N. Srinivasan, Vice Chairman and Managing Director All India

V M Mohan, Joint President, Corporate Finance All India is about 300 plus million

Rajesh Kumar Ravi No incremental addition FY12 and FY13.

N. Srinivasan, Vice Chairman and Managing Director Rajesh Kumar Ravi Okay.

N. Srinivasan, Vice Chairman and Managing Director Basically, most of the expansions are in Rajasthan and Gujarat for the next year, so adds to around 10 million. So we are expecting 20 million tonnes, 22 million tonnes addition next year.

Rajesh Kumar Ravi Okay. So on similar number would have got added in this FY12 itself?

N. Srinivasan, Vice Chairman and Managing Director I couldn't get your question.

Rajesh Kumar Ravi I'm saying that, 10 million got added in Southern market itself in FY12.


Rajesh Kumar Ravi And another similar 10 million tonne would have got added across India other than this southern market?

N. Srinivasan, Vice Chairman and Managing Director Yes, yes. That's what we are expecting.

Rajesh Kumar Ravi Okay. Okay. Thank you so much for your taking my question. Thanks.

N. Srinivasan, Vice Chairman and Managing Director Okay. Thank you. Thank you. We have our next question from the line of ‐‐ Equities. Please go ahead.

Analyst Hi sir, good evening. Just two housekeeping questions. One in terms of CapEx outgo in cash flow terms in the consolidated books that seems to be up about 825 crores year‐on‐year and standalone books was about 425 crores, how much of this is related to Coromandel Electric Company a difference 400 crores and which are the other CapEx that we have carried out in the consolidated entity.

N. Srinivasan, Vice Chairman and Managing Director Consolidated CapEx you are talking about increased in fixed asset

Analyst Yes sir increase in fixed asset is about 550 crores and depreciation was about 285 crores in console.

N. Srinivasan, Vice Chairman and Managing Director What the action on account of ‐‐ CECL.

Analyst Yes sir how much is related to CECL sir?

N. Srinivasan, Vice Chairman and Managing Director I don't have an exact number Coromandel Electric ‐‐ consequent as a merger ‐‐ has also gone up so that is also added to these.

Analyst But Coromandel Electric, is it safe to say that it's only a 24 megawatt gas base unit, so it should not be more than 100 crores, is that a safe number to assume?

V M Mohan, Joint President, Corporate Finance I could probably give you the details of that a little later, I don't have it with me right now.

Analyst Okay. Yes, probably if you get ‐ you will wait for data a little later?

Analyst Okay. That would be helpful sir. And secondly, on the non current investments, that seems to gone up by Board again 100 crores in the console books. Is this any other investments that we have done off late?

T S Raghupathy, Executive President Non current investment, we'll again ‐‐ I'll just tell you. Just give me a second.

Analyst Yes sir?

T S Raghupathy, Executive President Yes, this increase is primarily on account of investment in sugar.

Analyst

Okay.

T S Raghupathy, Executive President 35 crores in Coromandel Sugars convertible debentures.

Analyst Okay.

T S Raghupathy, Executive President And in another company, in the consolidated.

Analyst Okay, okay, okay. Great sir. And finally, I think...

T S Raghupathy, Executive President This is only a conversion of an advanced ‐‐ capital. Okay.

T S Raghupathy, Executive President Advances have ‐‐ does not behave like ‐‐.

Analyst Okay. So basically it's more from loans and advances in to this one or?

V M Mohan, Joint President, Corporate Finance Exactly.

Analyst Okay. Great sir. And sir finally on the demand side, is it safe to assume that south could grow closer to about 10% this year, would that be a ball part number?

V M Mohan, Joint President, Corporate Finance That will be very optimistic. So, I think we expect 6% to 7% growth in south.

Analyst How much sir?

V M Mohan, Joint President, Corporate Finance 6% to 7% on the outer, that is the growth in south.

Analyst Okay. Great, thanks sir. Thanks a lot for taking my question, sir.

Operator Thank you. We have next question from the line of Reena Verma from Merrill lynch. Please go ahead.

Reena Verma Yes, hi. Thank you very much for this call. I have couple of housekeeping questions and then another one on the industry. Just from a housekeeping standpoint, what is the total consolidated volume for fiscal '12 please, including

T S Raghupathy, Executive President The total volume including Trinetra.

V M Mohan, Joint President, Corporate Finance 33.28% volume up. See the volume for the year is 94.51. For on a standalone, and a 10.08 for Trinetra. And 0.76 lakh tonnes for clinker.

Reena Verma 0.73?

V M Mohan, Joint President, Corporate Finance Yes, 0.76.

Reena Verma 0.76, okay. Thank you very much. And my second question on the house keeping front was about your FY12 CapEx, how much is that please?

T S Raghupathy, Executive President Sorry, FY12?

Reena Verma CapEx?

T S Raghupathy, Executive President You want what? What exactly is the question, please? What is addition?

Reena Verma Yes, capital expenditure for fiscal '12 was how much, please?

Corporate Participant 74 crore and 76 crores.

476?

Corporate Participant Crore.

Reena Verma Okay. Thank you very much for these numbers. I also had a question for Mr. Raghupathy or Mr. Sriniwasan. I just wanted to understand that are there any examples globally of what happens when a probe in fertilization is concluded? Does it impact cement prices or it doesn't?

N. Srinivasan, Vice Chairman and Managing Director Actually no, it's first of all, fertilization ‐‐ there has to be very strong sort of material evidence for anyone to say that there was ‐ pollutant on making a mine successor. So there can be three sums of, one as they can, they may not find the effects to be whatever reports they got to be true. Second, we can say that in case in their opinion there was in fact a curtail, they can take a position that on the season basis, ‐ like what has happened in the Western world, that could also be a marginal penalty. So any of these three things can happen, and I don't know whether regardless any thing has impact on the ‐ place as such.

Reena Verma No, I didn't mean the share prices, I meant the cement prices. What happens in the market, where the regulator holds up the industry? Does it really bring down crisis?

T S Raghupathy, Executive President So, the producers will continue to sell at prices based on demand supply balance and also the kind of price they need to get to get a fair return on the investment and to the stakeholders and so on. So, I don't see any impact on the marketplaces regardless of what the outcome of CPI is.

Reena Verma That's very helpful. Thank you very much. Just a minor follow‐up is in terms of the April volume trends, are you still seeing South doing relatively well?

T S Raghupathy, Executive President See, March has been very ‐ the prices have taken place, so possibly there was inventory for the first 10 days of April. So, it will start picking from May I believe.

Reena Verma Operator Thank you. We have a next question from the line of Vijay Raghavan from Spark Capital. Please go ahead.

Vijay Raghavan Thanks for taking my question. I just have one clarification on IPL. The IPL EBITDA which you mentioned is before paying the franchisee lease of $9 million?


Vijay Raghavan Is it right sir?


Vijay Raghavan Okay. I just wanted to know what is the receivable position on this IPL?

N. Srinivasan, Vice Chairman and Managing Director There is no receivable, because everything is paid for in advance like gate collection, sponsorship, everything is paid for ‐‐ there are no receivables.

Vijay Raghavan Okay, understood. And on the central board revenue, sir?

N. Srinivasan, Vice Chairman and Managing Director Central, that has also come.

Vijay Raghavan Okay. Sir, I presume that sixth year is the year in which franchises will get more share of revenue sir. Is there ‐‐ is my understanding right? Yeah. Next year as the whole thing will go up, because for reasons, one is that the ‐ contract is still that we suppose to get more revenue.

Vijay Raghavan Okay.

T S Raghupathy, Executive President Second, there is number of teams have become nine now, so the more number of matches so that it's still ‐ but that is now only.


T S Raghupathy, Executive President All told that we should be getting more, but you know as the central pull depends upon many other things. Considering the total revenue then they will take out their cost and then share with all of us.


T S Raghupathy, Executive President So we normally accounted as it comes instead of ‐ reply on that.

Vijay Raghavan Okay. Sir also can you share what is the gross plot on capital working processes of balance sheet?

N. Srinivasan, Vice Chairman and Managing Director What's the ‐‐?

Vijay Raghavan Gross block

V M Mohan, Joint President, Corporate Finance Vijay Raghavan Yes, standalone and consolidated, both.

V M Mohan, Joint President, Corporate Finance One second. Gross margin is around 6,500 crores. Then capital work‐in‐progress is 145 crores.

Vijay Raghavan Okay, how was it in consolidated numbers?

V M Mohan, Joint President, Corporate Finance Consolidated...

T S Raghupathy, Executive President Standalone will be 7, 651 crores. And 170 crores will be working.

Vijay Raghavan Okay. Sir one last question. I just wanted to know what is the break up of our loans and advances shipping in the long term. I'm seeing 1,552 crores in our consolidated numbers. I presume a Trinetra Cement is there in this, apart from that, what are the loans and advances we have?

T S Raghupathy, Executive President See, loans and advances will be as soon as that was okay, in the customer related, because subsidiary will not be there.

Vijay Raghavan Sorry sir.

T S Raghupathy, Executive President

Subsidiaries will not be there in the consolidated, we launched to associate advances for capital expenditure or that will be included under long run, other long run.

Vijay Raghavan Okay. So, what is the breakup, can you share the breakup? Yes, very big list for me to give it out right now.

Vijay Raghavan Okay. Sir what is the debt on Trinetra's book sir?

T S Raghupathy, Executive President Trinetra, one moment.

Vijay Raghavan External debt?

T S Raghupathy, Executive President Yes. 252 crores.

Vijay Raghavan Okay. And the amount I have just gone from our Balaji Trust to Trinetra?

T S Raghupathy, Executive President That is in the form of an investment. Investment is investment...

Vijay Raghavan I know sir. How much of total amount we have put in? Investments and loans put together?

T S Raghupathy, Executive President Investments including preference capital, it is 615 crores

Vijay Raghavan 615 crores. Sure, thanks a lot sir.

Operator Thank you. Our next question is from the line of Mangesh Bhadang from Quant Broking. Please go ahead. Hi, sir. I just want to know how much is the interest that we have capitalized in FY12?

T S Raghupathy, Executive President Sorry? Interest capitalized, is that?

Mangesh Bhadang Yeah.

T S Raghupathy, Executive President Okay. Just a moment. 6 crores

Mangesh Bhadang How much is that.

V M Mohan, Joint President, Corporate Finance 8 Crore.

Mangesh Bhadang That's the only amount. So on so basically the total net interest out go is around 2,800 crores for 2,700 crores of that as you have mentioned in FY12.

N. Srinivasan, Vice Chairman and Managing Director 286 crores is the interest ‐‐ total interest including ‐‐ RX 28 crores that includes that is 286 crores.

Mangesh Bhadang 286 Crores.

V M Mohan, Joint President, Corporate Finance Yes it is 286 Crores.

Mangesh Bhadang Okay sir and just one more clarification 2,700 crores does not include our sales tax deferral right? Sorry?

Mangesh Bhadang The total debt that you had mentioned FY12 2,700 crores it does not include sales tax deferral

N. Srinivasan, Vice Chairman and Managing Director It includes deferral.

Mangesh Bhadang Okay and that would be around 500 crores?


One second around 606 crores.

Mangesh Bhadang 606 crores. Okay, sir. Thanks. That's it from my side.

Operator Thank you. We have a next question from the line of Ritu Modi from Ambit Capital. Please go ahead.

Ritu Modi Hello sir, thank you for taking my question. Sir, I just have two questions relating to the demand growth in state wise in South.

Sir you said in the fourth quarter South grew by 9% can you just give me a split of the regions as to how they've grown?

N. Srinivasan, Vice Chairman and Managing Director You want the region wise breakdown?

Ritu Modi Yes sir.

N. Srinivasan, Vice Chairman and Managing Director Ritu Modi Yeah.

N. Srinivasan, Vice Chairman and Managing Director Yeah, it is AP was minus 2.14% which was minus 10.66 for the first first nine months

Ritu Modi Minus 10. sorry sir?

N. Srinivasan, Vice Chairman and Managing Director Tamilnadu 12.63%

Ritu Modi Okay.

N. Srinivasan, Vice Chairman and Managing Director Karnataka 10.82%

Ritu Modi Okay.

N. Srinivasan, Vice Chairman and Managing Director Kerala 11.77%

Ritu Modi This is for the fourth quarter.


Ritu Modi N. Srinivasan, Vice Chairman and Managing Director Yeah the current prices in South Hyderabad is between 270 to 280. Bangalore is around 320, Chennai is around 330 and Kerala is around 355.

Ritu Modi And do you expect the prices to remain at these levels or grow still further increase in the prices.

N. Srinivasan, Vice Chairman and Managing Director No it will certainly remain at this levels and cost increase it should be possible for us to pass on.

Ritu Modi Okay. Sir and one last question is what is your percentage shareholding in Trinetra as of now. As at the end of the quarter?

N. Srinivasan, Vice Chairman and Managing Director It is 61%.

Ritu Modi 61% okay sir thank you so much. Thank you.

Operator Thank you. We have our next question from the line of V. Srinivasan from Angel Broking. Please go ahead.

V. Srinivasan Good evening. Sir thank you for taking my question. Just a few quarters back you had spoken about some entry into infrastructure space like what is the development on that side currently?

N. Srinivasan, Vice Chairman and Managing Director Outlet they've started ‐‐ money, sorry.

Our infrastructure. Basically we have some land in Coimbatore we have kick out housing projects there.

V. Srinivasan V. Srinivasan Okay.

N. Srinivasan, Vice Chairman and Managing Director It's in a very, very initial stage.

V. Srinivasan Okay, okay.

N. Srinivasan, Vice Chairman and Managing Director We are also looking at whether any good candidate is available for small acquisition possibility but nothing has been firmed up yet.

V. Srinivasan So for the next one year like what will be sort of investments we might be making like over the next one or two years so like?

V M Mohan, Joint President, Corporate Finance It is not going to be significant, the purpose of looking for a company is to see whether we can ‐‐ we will be eligible for building as to get an eligibility for bidding, that is all, nothing more.

V. Srinivasan Okay, sir. Thanks a lot.

V M Mohan, Joint President, Corporate Finance Okay.

V. Srinivasan Yes.

Operator Thank you. We have our next question from the line of Navin Sahadeo from Edelweiss Securities. Please go ahead. Well, just one last follow‐up question. How much power are we eligible to source from APGPCL and CCL, if you could just mention that?

T S Raghupathy, Executive President APGPCL is about 9 megawatts ‐ 23 megawatts and CCL is also around the same.

Navin Sahadeo So, 23 megawatt each ‐‐ from each of these sources, right?

V M Mohan, Joint President, Corporate Finance Yes.


Navin Sahadeo Fine. Thank you very much.

Operator Thank you. In the interest of time, that was our last question. I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments. Please go ahead sir.

Vaibhav Agarwal Thank you Terrance. On behalf of MF Global Sify Securities India Private Limited, I would like to thank the management at the India Cements Limited for this opportunity for the conference call. Also many thanks for all the participants for joining in for the call. Terrance, you may now conclude the call.

Operator Thank you so much Mr. Agarwal. On behalf of MF Global Sify Securities India Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.

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