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JK Lakshmi Cement Ltd
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Ladies and gentlemen, good day, and welcome to the JK Lakshmi Cement Q1 FY '23 Earnings Conference Call hosted by PhillipCapital India Private Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Vaibhav Agarwal from PhillipCapital India Private Limited. Thank you. And over to you, sir.
Yes. Thank you, Melissa. Good evening, everyone. On behalf of PhillipCapital India Private Limited, we welcome you to the Q1 FY '23 call of JK Lakshmi Cement. I need to highlight that JK Lakshmi Cement is also the Holding Company of Udaipur Cement Works Limited, and therefore, the call is also open about -- discussion about the performance of Udaipur Cement Works Limited.
On the call, we have with us Dr. Shailendra Chouksey, Whole-Time Director; Mr. Arun Kumar Shukla, President; and Mr. Sudhir Bidkar, CFO of JK Lakshmi Cement.
I would like to mention on behalf of JK Lakshmi Cement and its management that certain statements that may be made or discussed on this conference call may be forward-looking statements related to future developments and current performance. These statements are subject to a number of risks, uncertainties and other important factors, which may cause the actual developments and results to differ materially from the statements made. JK Lakshmi Cement and the management of the company assumes no obligation to update or alter these forward-looking statements, whether as a result of new information or future events or otherwise.
I'll now hand over the floor to the management team of JK Lakshmi Cement for their opening remarks, which will be followed by interactive Q&A. Thank you, and over to you, sir.
Thank you, Mr. Vaibhav, and good afternoon ladies and gentlemen on this Q1 Con Call for JK Lakshmi Cement. We have with us Dr. Chouksey, Whole-Time Director, who has been with us on all the calls in the past. And it's my pleasure to introduce Mr. Arun Kumar Shukla, our President, who has joined us in February 2021 and now is being formally inducted on the Board with effect from 1st August 2022, that is from Monday.
And Dr. Chouksey, the Whole-Time Director, along with Mr. Wali, would be laying down their office on the conclusion of their term as the Whole-Time Director on 31st of July, 2022. Mr. Shukla would be looking after the entire operation, be it, manufacturing, operations, or in the marketing, et cetera. So he will be the CEO of the company, and he'll be taking forward the journey of JK Lakshmi Cement from where Dr. Chouksey and Wali had left it on 31st of July, 2022.
Now the results you would have seen already, one important change which we have done in this quarter, which I'd like to highlight in the beginning, so that, that clarity comes for all the analysts, is so far earlier what we were doing whenever Udaipur Cement Works wanted to source cement, they used to supply clinker and they were booking the clinker as their sale and the cement which got converted from that clinker was being shown cement purchase for UCW and cement sales for JK Lakshmi for the clinkers applied by them. So it resulted in unnecessary duplication.
So from this quarter, that is from financial year '23, what we have started doing, whatever clinker they supplied, that will be on a conversion basis, and they will only pay the conversion charges. No sale of clinker will be shown in Udaipur, nor any sale of the corresponding cement will be shown in JK Lakshmi. So that's why there were so many questions from the analysts yesterday why there is no sale on the clinker, and that is the change which we have made. So there will not be any duplication.
Only the cement, which has been purchased either by Udaipur or by JK Lakshmi from Udaipur or by Udaipur from JK Lakshmi against which no clinker has been given, then only -- that only will be shown as actual sales, because that is real. But on a consolidated basis, that will also get wiped off. So, figures we have already shared with most of the analysts.
And now with those remarks, I throw the floor open for question and answers.
Mr. Bidkar, before you open it for question and answer, let me first and foremost thank every participant and let me also thank them for all the cooperation that we have received and are receiving in particular. I would also like to take this opportunity to welcome Mr. Arun Shukla, who has been with us now for the last 1.5 years, and I can assure the entire investor community that the company is in very safe and in very good heads. And I'm very sure that we are all -- the queries that you may have today will also be answered very appropriately by Mr. Arun Shukla, who is already hands-on on the job for now last more than a year.
Thank you. Thank you very much, and thank you PhillipCapital.
[Operator Instructions]
We have the first question from the line of Shravan Shah from Dolat Capital.
I have a couple of questions. So starting with the realization growth. So, on Q-on-Q front, if you calculate the number, it is 12.2%. So just wanted to understand if you can split in terms of the region-wise where the actual increase in terms of the realization has happened? And now post June, how much till now in last 1 month, we have seen the price decline?
Mr. Chouksey, would you like to answer that?
Normally, we are not -- serve the numbers region wise, but what we can share in a very broad level is that most of these markets had witnessed price increase. As we all know that the quarter one, Q1, April to June is a quarter when we register normally a good growth, though not as good as January-March.
And this year, we saw a decline, in fact, in the demand in the month of June. So there was some price correction in the month of June. But in April and May, most of the markets that we are operating in saw a good improvement in the price. And of course, one of the driver of the price rise was that in fact that everyone has been facing huge cost pressures. So there was an increase, and that was all around increase. Number one.
Number two question you asked about the current quarter, is I think a very usual phenomena that the monsoons witnessed price going down, and we have witnessed some price pressures in -- again, in most of the markets, but more so in the Gujarat market, which faced a lot of barrier, as well as in the northern markets. Chhattisgarh was comparatively not that deeply worse, but yes, there was minor pressure there as well.
Sir, do you want to quantify broadly how much INR5, INR10 decline, which would have happened in the last 1 month?
I would not hesitate to say that the price fall would happen in the range of about INR10 a bag, and even now, I don't think the prices have -- one can be very sure that they have stabilized. But that's about the type of pressure that we have seen.
Okay. Now coming on the cost front. So there are 3 line items which we have seen a significant increase. So, starting with the employee cost, it has increased significantly quarter-on-quarter from INR 81-odd crores to INR 102 crores. So, is there any one-off and this run rate is sustainable?
Employee cost in this quarter is -- you are talking of a consolidated basis or stand-alone basis?
Yes, consol basis, sir. Whatever my question will be, it will on consol basis.
With the figure of INR 92 crores, that is on a stand-alone basis. So that is the run rate which will be there in the coming quarters.
Okay. Now coming on the main power and fuel cost. So last time we were expecting that it can inch up by 7% to 8% quarter-on-quarter. Even if we take the current prices and the increase would be INR 200 to INR 250, but the actual increase on power and fuel front is much, much higher. So close to INR 400 kind of an increase is there, so any specific reason? And is this the peak or can we see a further increase in the next quarter also?
First, I would like to clarify your earlier question, Shravan, that was regarding the employee cost. On a stand-alone basis, overall last year for the full year was about INR326 crores on a stand-alone basis, that translates into about INR 82-odd crores for each quarter. Considering the normative increase of about 10%, 12%, the current cost of INR 92 crores in the stand-alone is reasonable.
And last quarter, if you were to compare that was only because of operation that initial provision was higher in the last quarter, or whatever was the cost which was coming to it, that was slightly lower. So if you compare with the immediate preceding whatever you may see, there is may be some increase out of proportion. But if you see the average for the full year and then see the increase and then that is a normative increase in the employee cost.
As regards power and fuel, yes, there has been an increase higher than what we had envisaged earlier. And actual cost in this quarter has been -- we have booked it in the P&L at about INR 11,700 as against INR 9,000. So the increase is quite high. Yes, you're right. There may be some increase again going forward because the prices are still continuously going up. So we may see further increase in the power and fuel cost in the coming quarter as well.
Okay. But the increase now should be much, much lesser in the second quarter?
No, it will still be about 20% plus.
The third question is on the other expenses. So on a consol basis, so last quarter -- from last quarter to this quarter, significant INR 57 crore, INR 58 crore increase. So any specific one-off or this is also a normal run rate?
Which one, sorry, again -- can you please the question.
Other expenses. So this quarter, other expenses on consol was INR207 crore versus INR 149 crore in the last quarter, Q4. So is there any one-off or this is a normal --?
Yes, you are unfortunately comparing [Technical Difficulty] some of the volumetric increase, some of these expenses, other expenses includes like stores and spares, et cetera, that would be linked to the production. So the volumetric increase will also have to be factored in. Plus packing also is there. So if the volumes have gone up by 20%-odd, then that 20%-odd is the normative increase other than that is the inflation increase.
Okay. Okay. And is there anything in terms of the one-off in other income because that has also declined. So this quarter only INR 7-odd crore versus INR 15 crore, INR 16 crore run rate.
Yes. Because the funds have started moving for the CapEx in UCW.
Okay. Sir, now I'm coming on the...
The returns has started coming down from this.
[Operator Instructions] We have the next question from the line of Girish Choudhary from Spark Capital.
My question is to Mr. Arun Kumar Shukla ji, so firstly, good to be interacting with you for the first time. To start with, if you can just briefly share your vision for the company, what are the 2, 3 focus areas for us to take notice of or monitor? And what would be the biggest challenge you foresee?
Yes. Good afternoon, and I'm really happy to be part of this conversation today. And probably, I think I would really want to listen this time all of you, and I'll come back to you with all these queries next time. That is what I would suggest all of you to kind of bear with me. Next time on, I'll take all your queries, and I'll reply each and every one of them, right.
Okay. Sure, sir, I appreciate. So, my second question is that, if I read your FY '22 annual report, you shared your 2030 vision where you intend to increase the capacity to 30 million tonne, which is like doubling from the current levels after UCWL expansion. So if you can throw some light on this journey in terms of geographical mix, brownfield, greenfield, inorganic and also time lines?
It will be basically a combination of the brownfield and greenfield. We have the capabilities of increasing our capacities as we mentioned, we have been mentioning that in the past also in all the con calls, at all the 3 location, Udaipur, another third line can come in, so we can add another line and Udaipur obviously -- and Durg also can add another line. Plus, we have got 2 limestone mines also, one in Nagore and another in Kutch. So, those will be greenfield. A combination of that will lead us closer to that $30 million, which is our vision for the year '30.
But any time lines on when this will get started, because we currently are working on the UCWL expansion.
Yes, UCWL we expect it to be in place by '24. So maybe 1 year before that completion will start taking up the brownfield at these places and then parallelly start the work on the land acquisition and other for the greenfield also. Homework has already started for the land acquisition.
If I may add to what Mr. Bidkar is saying, while we have a clear visibility on the Udaipur expansion. As far as the other expansion or the heap wheel is concerned, we'll obviously -- we have this capability as we have been talking earlier. And our capabilities have been enhanced with these 2 or 3 mines that we have got, we have got in fact now 2 mine blocks allocated to us in Nagore only. And one is in the -- and we have one in Kutch in Gujarat. Besides we have -- our own capability were brownfield, so we'll take a decision as and when the -- once the wrapper gets completed or prior to that, taking into account the demand supply situation in different areas and then take a call which one to take first.
Lastly, on the BCG project, how is it coming along? And what is the scope and how much cost savings has been achieved in there?
BCG, we answered last time also that the BCG vehicle is already completed. And all the savings that we were to obtain have just been captured in our results.
Thank you. We have the next question from the line of Sanjay Nandi from Ratnabali Investments.
Sir, can you please share the volume numbers for this quarter?
In this quarter, we have in JK Lakshmi Cement out of the sale of 26.91, clinker sale of 0.91, so the total is 27.86%. Udaipur, we have sales of cement of 5.55%. And on a consolidated basis, cement sale is 29.37% after eliminating the inter-unit sale and 0.95% of clinkers, making a total of 30.32% for the quarter on a consolidated basis.
30.32%, okay. And what's the stand-alone debt and consol debt, sir, standing in the books as of this quarter?
Sorry?
What's the stand-alone debt, sir?
Stand-alone debt. Total stand-alone debt is about INR 800 crores -- sorry, INR 900 crores, INR 920 odd crores on a stand-alone, and cash is INR 900 crores. So the net debt is only INR 1,520 crores. So, we'll be a debt-free company on a stand-alone basis and by the end of this financial year. That is important, which we have been debt-free company in the financial year on a stand-alone basis, on a net debt basis. And on a consolidated basis, we have as of 30th June, total debt of INR1,800 crores and cash of about INR1,150 crores, so net is INR 662 crores of net debt on a consol basis.
[Operator Instructions] We have the next question from the line of Amit Murarka from Axis Capital.
Sir, the first question is on power and fuel. So, what was the fuel mix in this quarter for you?
We have, in this quarter, fuel mix of about -- we did about 46% of coal, 41% of pet coke and 13% was the other alternate.
46%, 41%, and 13%?
46% coal, 41% pet coke, that is 87%, and 13% is other fuel.
Yes. And what was the power and fuel cost this quarter that you mentioned in rupees per tonne?
INR 10,600 -- sorry, INR 11,700, sorry.
Okay. Sir, did you have some older inventory or something, because this INR 7,700 crores is still actually quite low compared to how things were...
Not INR 7,000 – INR 11,700.
Yes, yes, still INR 11,700 also. Sorry, one more thing on coal. Could you please also tell us what was the domestic coal within that 46%?
Domestic was very less whatever may we have that we are not getting -- in the Eastern region. We are not getting any coal, we have to procure it. So, it tend to be sold.
Okay. Did you take any e-auction, because I believe some companies have been taking it.
Not much. Domestic is only 7% to 8%, and the others is all being imported. Because the entire domestic coal is being diverted towards power. Not only the coal is a scarcity commodity in India, but the wagons are also not being available.
Yes. And so -- but -- so you said next quarter, we'll see a 20% rise. But then after that, like, do you see pretty much a peak coming in? Or there could be further increases after that also?
Should be peak, but some price softening has started happening. So hopefully, second quarter, we'll see the peak of the power and fuel. And we hope that that decline or softening continues. Unless the trend is reversed, we see that second quarter should be picking out as far as the inventory cost is -- power and fuel cost is concerned.
Got it. Got it. And what is the stage of the Udaipur plant now, like, you equipping the ordering, I believe you have done the long lead items and what's the further progress after the last quarter now?
Anyway whatever external clearances were required, those are all in place, barring that approval from Airport Authority, so that is progressing as per schedule, and we hope to see that coming up as per the schedule as of now.
[Operator Instructions] We have the next question from the line of [ Mudit Agarwal ] from Motilal Oswal Financial Services.
Am I audible?
Audible, very much audible.
Sir, I have just one question regarding the -- our supply to the Eastern and Central UP through Amethi grinding unit, as we have started supplying the Eastern and Central UP through the Amethi grinding unit. I just want to understand what kind of arrangements we have with this grinding unit? And what kind of volume growth we can expect from that new grinding unit? I think that should be a grinding unit on a hire or on a tolling charge basis we have. Just wanted to know your views about it.
That unit has a certain state incentives. And therefore, the best option that we have is that we sell them clinker and buy cement from them. So currently, that is what the system that we have adopted.
Okay. So, sir, unclear, if you can throw some more highlights about, is it a hire unit from a existing player or anything different is that? I mean, we have a complete grinding unit available?
Yes. This is available exclusively to us. Nobody else is grinding from this. This is a new unit which has come. And they have got a state incentive. And if we take that unit on hire, then obviously there would be a -- there would have to be a state transfer of the asset, which can jeopardize the incentives that unit is getting. So the best option that we have is to sell clinker to them and buy cement from them. That was your first question as to what is the modality that we have adopted.
Regarding the volume, it has a capacity of really 1 million tonnes a year. And depending on the clinker that we are able to spare, we expect that in the first year, we should -- in the first 12 months of the operations, we should be able to get about 6 lakh tonnes cement from them.
Okay. Okay. That's really helpful, sir. Just one last thing. For what period this grinding unit is available to us?
This -- we have the first right of refusal as far as this unit is concerned, we have a 10-year agreement with them currently. And thereafter, this can be renewed at our choice.
[Operator Instructions] We have the next question from the line of Prateek Kumar from Jefferies.
My first question is on UCW CapEx, out of INR 1,650 crores CapEx, how much is spent till now? And also...
INR 350 crores.
INR 350 crores, okay. And as you have indicated earlier, the time line for this is in phases in 2Q and 4Q of '24, is that right?
Yes, yes.
So clinker is expected by 2Q and which is like sort of 12 months from now. And so, I mean, have we started the construction work there, because it's...
It has started.
Okay. Okay, secondly, for your long-term expansion plans that you mentioned earlier in the call, do you foresee any limestone renewal -- mine renewal issues post 2030 for some of your mines?
It is too early to...
Only mines which is coming up for renewal in that period, other than that, there is no issues on that.
You see that there are more 20, 25 companies who will be facing this issue to start directly 2030. And we are very sure and hopeful that by that time better systems would be adopted by the government itself in terms of the notification of amendments in that. Thereby the existing lease operators and the manufacturers themselves will probably have the first flight. So while they may do a bidding purely from the point of view of assessing the rates, et cetera. But I do not think that any mines or any cement company plants would be getting for non-renewal of the mining lease. That's our thinking, and that is what we have earlier discussed with the central government on this point.
The effect in your case maybe -- the impact may be higher. So maybe we can also see significant cost estimation on RM cost or our return ratios after that or we don't foresee that?
As of now, I don't foresee any significant on this account.
Sure. And sir, just one question on your demand trends. How have demand like sort of fairing in, in the month of July?
Well, the demand, I would say, it would still register a growth over the corresponding quarter or the month. So the demand per se continues to be fairly good, not too many application in that industry. These are usual release season and demand easily gets affected in this quarter. So there's nothing new. But still, we are seeing a definite pattern of growth over the last year. So I mean I wouldn't compare with the previous quarter or the quarter prior to that. But definitely, compared to the corresponding quarter, we will see our growth.
We have the next question from the line of Uttam Kumar Srimal from Axis Securities Limited.
Sir, with regard to, sir, these other expenses, this is only INR 200 crores that we have reported this quarter. Is this sustainable going forward also?
Yes, it is, as I mentioned, a part of that is linked to the volumes. So, it will move in tandem with the volume growth.
Okay. And sir, how has been our sale of value-added product during this quarter?
Sorry?
Value-added product like RMC and all other plots in all there?
INR 118 crores in this quarter.
How much, sir?
1-1-8, INR 118 crores.
And sir, a couple of data points, like trade mix for this quarter and blended mix this quarter?
Blended, we did about 67% in this quarter, and trade was about 56%.
56%, okay. And what was the percentage of premium cement during this quarter, sir?
Premium cement, we are selling only in the north, it is about 14%.
1-4?
Yes.
Okay, through the last quarter it was around 25%. So it has gone down this quarter?
That was of the credit sale. So now we are talking about the total sales.
We have the next question from the line of Ritesh Shah from Investec.
Sir, just one question. Just wanted to understand, is there anything different on the marketing side that we have done over the last 3 to 4 quarters? And is it dripping us any benefits on back of that?
Can you please repeat your question? I'm sorry...
Yes. Chouksey sir, first congratulations for your excellent tenure at JK Lakshmi. Sir, my question was -- are there any specific marketing efforts or new initiatives that the company has taken in the last 3 to 4 quarters? And if yes, are we getting any benefits out of it so far? Or how should we look at this particular variable?
I think one of the areas that we are focused is on the geo mix, so trying to curtail our -- the distances that we are going. So we are definitely increasing our sale in the nearby markets. And all these -- and the second effort that we have been working is on enhancing our network and the addition of the dealers, so that we are able to build a cadre of dealers, who are the main taker for the credit category of cement, and thereby increase our credit segment. So that is the effort that we've been doing. We have been continuously getting results -- good results on that, beside that we are also trying to focus more and more on our premium products. So we are -- all these 3 efforts are slow moving, but gradual moving. And in due course, you'll see the full import or the full benefits out of these efforts.
Sure, sir. This is very helpful. Sir, just a related question. Sir, how should we understand the number of brands that we have in the marketplace. We have multiple brands, which is a reflection of OPC, blended cement and basically value-added products. Do we think that we need to rationalize the number of brands which are there in the marketplace? Just some flavor over here would be pretty useful.
We have a brand integration strategy in place and we are working on that. But the attempt is that in one market, with -- number one, all these markets are catering to individual niche consumers. So they are not actually in competing or in the same market space. Secondly, we have certain profiles for our Udaipur, which is from where we supply mainly the Platinum brands, either Platinum Heavy Duty or Platinum Supremo. Because of the different characteristics of the cement, we have a certain consumers who prefer only the Platinum band. So we thought we would definitely like to retain these consumers from where we are able to get better pricing as well. And therefore, all these brands are very well working in harmony with each other.
Sure, sir. Sir, just another question. How should we look at group simplification going forward, given we have JK Lakshmi and UCW. Are there any time lines over here that one can look at?
Sorry, repeat, can you repeat your question?
Bidkar sir, the question is, when should we look at group simplification? Or should we assume that JK Lakshmi and UCW will continue to lead us through separate entities? Is there any roadmap from this particular angle?
Yes, we have been talking this in the past also on the con calls. The reason as to why we are keeping the 2 entities separately as a listed entity is on account of the differential tax rate. While JK Lakshmi continues to be taxed at the old regime of 35%, UCWL has opted for the lower tax regime. And the reason for that for JK Lakshmi to continue is to avail this MAT credit entitlement of about INR 250-odd crores, which is sitting in their tax books.
So in case we switch over, we'll lose that tax benefit MAT advantage. So that's the reason as to why we continue to have separate entity. The moment we exhaust this MAT credit entitlement, which will be maybe 2 to 3 years' time, depending on the actual profitability in these 3 years, then JK Lakshmi can also graduate to 25%, and that will be the opportune time for us to collapse the structure and merge the 2 entities.
[Operator Instructions] We have the next question from the line of Kamlesh Bagmar from Prabhudas Lilladher.
Yes, sir. Sir, my one question was on the part of your realization. So if I net out the non-cement revenues, then your realizations are up 16% quarter-over-quarter. The INR 700 per tonne and the loss of taxes, it would be INR 49. In none of the market we have seen such a sharp increase in the prices. And that also on the average basis, not on aggregate or in between. So what's the reason for that? Is it because of the, like say, we have changed from [indiscernible] to FOR or what has been the reason for that? And the improvement has not fallen into the margins. So margins have been like, say, flattish or down quarter-over-quarter, though last quarter has been abnormal because of those cost items, but even on a year-over-year basis.
Kamlesh, you were there in the -- since the beginning of the call, I had made this opening remarks that this change has happened in the way we are accounting for the cement being procured by UCWL for conversion from their clinker. Earlier, what was happening is that the entire clinker, which UCWL used to get -- sell to JK Lakshmi was then shown as sale and the converted cement was being shown as sales by JK Lakshmi.
So it was resulting in double accounting for clinker as well as cement. Now from this current quarter, what we have done is that they will not show that as clinker sale, only convert -- clinker will get converted at JK Lakshmi. So as a result, what has happened, the volumes have come down significantly in this quarter for the clinker supplied by them against with no sale has been booked in JK Lakshmi, only the conversion charges were borne by -- paid by UCWL. So that's the reason as to why with the lower quantity in this quarter, the sales realization appears to be on a higher side. Equally, if you were to analyze the expenditure part, that has also gone up correspondingly.
As a result, the profitability remains the same. But when we are comparing on sequentially from fourth quarter to this, that is the change which has happened. Suddenly, the realization shows improvement. Suddenly the expenditure shows improvement because of the lower volume in this quarter on account of this -- the different basis on which we are doing. If you were to see on a consolidated basis, then there will not be any such abnormalities noticed. So kindly see it on a consolidated basis, there will not be any substantial increase either in the cost or in the realization. Those will be then whatever are the normative increases in the cost and the realization in the market.
But even on the consol basis, like, say, we are seeing INR 600-odd per tonne improvement in realization quarter-on-quarter, which is 12%. So, honestly, let's say, on the realization part, it's really not summing up.
Consol basis, there is a normative increase which has happened from last year, the average was about INR 4,800 – INR 4,900, now it is about INR 5,400. So that is the normative increase which has happened in the realization. And as regards the cost, there is an increase from INR 4,300 last year to INR 4,900, part of which is volume-linked and others is the normative increase.
Ladies and gentlemen, we will now take the final question from the line of Shravan Shah from Dolat Capital.
Sir, a couple of things. Sir, you mentioned the non-cement revenue is INR 118 crores. So out of that RMC revenue was how much?
RMC was about INR 55 crores.
INR 55 crores. And the other clarification needed is, you said the blending ratio in this quarter was 67%. Last time, I think you mentioned 55%. If so, despite a significant increase in blending ratio from 55% to 67% Q-o-Q, our trade mix has remained the same 56%, which was in the last quarter?
In the fourth quarter our blending was 65%, not 55%. 65%, it has gone up to 67%.
Okay. And here, last time also we mentioned that we want to increase our trade share and the blending ratio of 4% to 5% in FY '23. But in this quarter, nothing has happened. So, do we think that we can still able to increase this trade set by 4% to 5% by -- for the full year FY '23?
Yes, that is what our target is. It doesn't happen overnight. It doesn't happen in one quarter, gradually it will happen. Our desire is to move towards that, and we are hopeful that it will happen.
Okay. And sir, the lead distance for this quarter was how much?
Lead distance of this quarter, just a second. 393.
393, okay. And just to again clarify, the UCW expansion, you said that the 1.5 MTPA clinker will start in next September because last time we said by December.
But I said third quarter, third quarter is December, you are right.
Okay. Okay. Third quarter. And the CapEx for the full year on consol, what we mentioned last time, INR 700 crores and INR 900 crores for '20 to '24, the number remains same or is there any change?
Total CapEx for that project is about INR 1,650 crores. And we have done INR 350 crores. So balance will get spread over the next 2 years.
Okay, okay. And in terms of the -- broadly, last time we said the volumes we were expecting 7% to 8% for full year. And in terms of the profitability, INR 1,000 per tonne. So any change in stand there?
It will all be dependent on the demand and also the way the coal prices, that coke and coal prices behave for the remaining period of the year. So our endeavor is to reach that figure of INR 1,000 per tonne.
Okay. And last, again, sir, just wanted to clarify actually, the -- even I asked and the previous participant also asked, on consol basis, you mentioned the increase in the realization should be normalized, but still there is a 12%, 12.2% increase. So if you -- that's what everybody wants to understand what actually has happened why such a significant increase. So something more clarity would be helpful.
Yes, that is the reason as to why I mentioned because of the change in the way we are accounting for the converted cement for which we are doing UCWL. While in the previous quarter, there was a -- which was being booked both as clinker as well as on the cement basis. In this quarter, it is only net of that.
But sir, on consol basis also it should get nullified. So, still on consol basis, our realization has increased 12.2% Q-o-Q?
Yes, that is there. That is normative. That is -- it has increased, on a consolidated basis, you are right, because that -- those factors get eliminated on a consolidated basis. So on that basis, it is increased by 12%, you're right.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Vaibhav Agarwal for closing comments. Please go ahead, sir.
Yes. Thank you. On behalf of PhillipCapital India Private Limited, I would like to thank the management of JK Lakshmi Cement for the call and many thanks to the participants joining the call. Thank you very much, sir. Melissa, you can now conclude the call. Thank you.
Thank you. Thank you, Mr. Vaibhav. Thank you all the participants.
Thank you.
Most welcome, sir.
Thank you, members of the management and Mr. Agarwal. Ladies and gentlemen, on behalf of PhillipCapital India Private Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.