Kesoram/ICL integration completes silently.

Given balance sheet strength and capex funded through internal accruals, can we expect payout ratio staying higher for foreseeable future?

I think so, but it will depend on the Board and company's performance. If we perform, if the cement markets do well, I think it should be possible. Over the next few years from FY26 to 2030-31, INR8,000-10,000 crores of capex will happen from the balance sheet every year, but as operating cash flows grow, it becomes very easy for the company to reward its shareholders.

Has brand transition completion helped in giving an edge in realization during the quarter?

Significantly. India Cements volumes for the quarter of 3.12 million tons, non-UltraTech volume was 0.39 million tons only. UltraTech enjoys premium positioning and brand transition has definitely helped. The real logistics efficiency from seamless operations will be visible now with one product leaving from all 9 India Cements factories.

Can you quantify the West Asia crisis impact on other opex and how should we see the June quarter?

The immediate impact in the last quarter - bags became a crisis in March and everybody got impacted. Incremental cost on bags was approximately INR90 crores reflected in other costs. For the June quarter, I don't think there will be too much of an issue. Selling prices have also been increased to cushion the impact of rising input costs.

Between March end and now, how much has been the impact of brand conversion on India Cements and Kesoram?

Kesoram was already operating at INR1,000-plus EBITDA per ton in the January-March quarter. For India Cements, out of 3.12 million tons, only 0.39 million tons was non-UltraTech brand. The real efficiency in logistics from seamless operation will now be visible. Performance will go up further in terms of earnings potential from India Cements.

On cable and wire business - INR800 crores of INR1,800 crores spent. Are we on track for year-end launch?

Yes, we should be on track, on time. We had committed Q3 - in the first month of Q3, we might launch instead of waiting for December.

Can you discuss sequential improvement stripping out international operations?

UAE is only 5 million tons of capacity. Before the war they were at 100% utilization, dropped to 80%, and now with the permanent peace program capacity utilizations are going up. India performance at INR1,200-INR1,250 per ton on much higher volume is the bigger story. UAE had EBITDA of INR267 crores in Q3 and INR278 crores in Q4 - a stable journey.

Can you split the pending efficiency improvement program of INR185?

We are at almost INR185 per ton on nominal basis, we have completed. All these programs which will take us beyond INR300 - whilst we had committed INR300, we will deliver higher than INR300 is what we're looking at. Fiscal '27 also, we should cross significantly higher. We will deliver higher than INR300 by fiscal '28.

Other brand sales volume was 7.4 million tons in FY26 - is it fair to assume this will be close to 0 in FY28?

Yes, 7.34 in FY26 and 0.52 in Q4. Out of 0.52, 0.39 was India Cements and balance was Kesoram old brand. Next quarter, you won't see it. Almost zero.

On trade/non-trade mix of 65-35, is this a sustainable mix going forward?

I have seen it fluctuating between 65, 67, 68. This has been the broad mix. The infra red marks in the slide are temporary - the Gujarat high-speed rail project work is coming to an end. Infrastructure investment will continue - Mumbai is spending $60 billion on city improvement by 2035.

Clinker conversion ratio at 1.48x - how much more can it go in the next 1-2 years?

We have targeted to reach about 1.54x. That road map is already there and let's see how things shape up beyond that.

In the last few weeks of March/early April, have you seen any concerns on availability of bags or pet coke due to the conflict?

No problems. Dispatches have not suffered at any location in the country. Bag availability has not been a crisis - it has become expensive, but it is not a crisis.

Are rising building material costs causing a demand concern for the IHB segment?

Too early to say. We have taken price increases for cement in April. By and large we don't see a slowdown in demand. The undercurrent remains strong. Industry growth for March quarter was about 6% to 7%.

For India Cements reaching INR1,000 per ton, how much will come from cost efficiency versus realization improvement?

First and foremost cost improvement programs. We are still seeing INR200 per ton of efficiency improvement coming into the kitty of India Cements. There is also INR200 of EBITDA per ton on India Cements volume sitting in UltraTech books. Price increases, along with efficiencies, new capacity addition, operating leverage - everything will take us beyond INR1,000 mark. We have reached a number of INR670 per ton on India Cements.

How is rural demand in March quarter and April, and what realization improvement is needed to maintain margins?

We have operated at 90% capacity utilization across our network. Trade mix has not diluted - we are at 66%, 67% hovering around those numbers, which means rural demand has continued to stay steady. For costs - bags went from INR9 to INR15 a bag, that INR6 delta has already happened. Fuel at INR1.77 per kcal might go to max INR1.8. Price increases that have already happened, in my view, sustain the profitability.

On RMC - what is the end goal? And on clinker factor target of 1.54x - by what year?

RMC is an integral part of our business. No need or thought process to monetize it. We will always be fully clinker backed. 1.54x is our target to reach by fiscal '28. UltraTech will continue to be far ahead of the industry on clinker conversions, composite cement, and all other aspects.

Why has cement struggled to raise prices relative to steel and agri, even with strong demand?

Fragmentation of the industry - that sums up everything. Price increases generally happen in the first quarter of the financial year, not in the last quarter. March is never a period to increase prices because it's a volume period. If demand is robust, prices go up. UltraTech will demonstrate its steps-ahead performance next quarter.

With pet coke at 160 and oil at $100 for the rest of the year, will the industry struggle to pass on cost pressures?

No. If every industry is passing on the cost, so are we. Every industry has its own fabric and own pattern of behavior. Demand-supply is always there - if demand is robust, prices go up. UltraTech will be steps ahead in terms of performance.

Fuel cost going from 1.77 to 1.8 - is this due to long-term contracts? How long do contracts and inventory last?

Multiple things - long-term contracts, inventory, sourcing, changing the fuel mix. July-September would be some ripples that we will see, which we will be able to manage better than the industry because of our supply contracts and domestic sources of coal.

On packaging costs - what is the delta from Q4 to now?

Fourth quarter to now roughly INR6 a bag - INR9 to INR15, so it's about INR6 a bag. Some increase and some decrease, so it should remain in the same range. Price hikes that the industry has taken should be adequate to offset the INR6.

Industry demand growing at 6-7% in Q4 - full year number similarly?

6.5% is what my colleagues tell me for the full year. For FY27, we would target double-digit growth.

The price hike being sufficient to offset costs - is coal cost also factored in or just packing?

All. I'm factoring in everything - except if you take dollar to INR100, that's not factored in as it's a notional debit to P&L at end of quarter. Diesel has also not been factored in.

Can you quantify the mark-to-market hit on forex loan and is it above EBITDA?

INR30 a ton. INR120 crores, INR130 crores. It's part of cost, within EBITDA - hit to EBITDA.

Packing cost impact of INR90 crores just for March - should we assume that as the run rate?

No. Prices have stabilized, we have built volumes of inventories and doing alternate sources. With 150 suppliers across the country, INR90 crores cannot be annualized. The cost of bag has stabilized to INR13, INR14 from the peak of INR15+. We have taken care of that with price increases.

On India Cements INR1,000 per ton guidance - does it include EBITDA booked in UltraTech standalone due to tolling arrangement?

All inclusive. You will see INR800 in India Cements books and INR200 of that coming in UltraTech books. We have committed INR300 of cost improvements and already delivered INR185, and we will do more than INR300 - that gives some indication of India Cements trajectory.

Cash generation will be much higher than INR10,000 crores capex - how should we think about the surplus?

The Board has already taken action - the INR240 dividend is the answer. It's a very thought-through strategy. The direction is already visible from 10% of profit in 2020 to 37% of profit, and the proposed dividend is 3x last year's. We will manage our Balance Sheet and will not over-leverage.

Given capex and OCF, should we expect a higher dividend rate or target return on capital? Is wire and cable the only non-cement adjacency?

We are already writing the blueprint beyond 240 million tons. Close to plus/minus INR15,000 crores to be spent on that. There will be capex on cement beyond 240 million tons. And yet our OCF will be large enough to reward shareholders. For adjacencies - as of now, I don't have anything beyond wire and cable. Dividend direction is already visible.

Are you adding any thermal power plants given your ambitious green energy targets?

No thermal capacity. We are adding a higher level of WHRS, tying up renewable and at several locations grid is also available now. We are not adding any thermal capacity.