Earnings Call Transcript - XNSE:STARCEMENT 2026-11-12

Operator

Ladies and gentlemen, good day and welcome to the earnings conference call for the quarter and half year ended 30th September 2026 of StarCement hosted by Philip Capital India Private Limited. As a reminder, all participant clients will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Agarwal from Philip Capital India Private Limited. Thank you, and over to you, sir.

Vaibhav Agarwal, Host

Thank you, Robin. Good evening, everyone. On behalf of Philippe Capital, India Private Limited, we welcome you to the Q2 and H1FI 27 call of Star Cement Limited. On the call, we have with us Mr. Pusar Bajanka, Managing Director and CEO, and Mr. Manoj Agarwal, Chief Finance Officer at Star Cement Limited. I would like to mention on behalf of StarCement Limited and its management that certain statements that may be made or discussed on today's conference call may be forward-looking statements related to future business developments and anticipated company outcomes by its management. Such statements on today's call will be based on StarCement's management's current expectations, and these statements are subject to a number of risks, uncertainties, and other important factors which may cause actual developments and results who differ materially from the statements made. Star Cement Ltd. and the management of the company has no obligation to publicly update or alter these forward-looking statements, whether as a result of new information or future events or otherwise. I will now hand over the floor to the management of Star Cement for their opening remarks, which will be followed by interactive Q&A. Thank you, and over to you. Tushar, you can take it forward. Thank you.

Tushar Bhajanka, CEO

So, hi. Good afternoon, everyone. My name is Tushar Bhuginka, and I'm the MD of Star Cement. I welcome you all to the conference call of FY27, quarter 2. I would like our CFO, Mr. Manoj Agarwal, to give us remarks regarding the numbers, and then we can start with the Q&A session. Thank you so much.

Manoj Akarwal, CFO

Yeah. Hi, Frank. Very good afternoon. I, on behalf of the Starts Committee Committee, welcome you to our conference call for discussing our number of 22FY27 and half-year-end date, September 26. Now, starting from clinker production, during the quarter ended September 26th, we have produced 9.08 lakh ton of clinker as against 9.18 lakh ton same quarter last year. So far as cement production is concerned, we have produced 11.56 lakh ton this quarter as against 10.83 lakh ton same quarter last year. Now, I will take you through sales volume. During the quarter, we have sold 11.23 lakh 10 of cement and 0.74 lakh 10 of clinker as against 10.72 lakh 10 of cement and 1.01 lakh 10 of clinker in same period last year. This is as far as cement and clinker sale is concerned. As far as geographical distribution of cement is concerned, in Northeast we have sold around 7.96 lakh ton as against 7.84 lakh ton of cement during the same quarter last year. And as far as outside Northeast is concerned, we have sold 3.27 lakh ton of cement this quarter as against 2.88 lakh ton during the same quarter last year. In terms of blend mix, it is almost 18% of OPC and the rest is TPC. These are the quantitative numbers of this quarter. Now I will take you through the financials. The total revenue figure for this quarter is around 831 crore as against 811 crore same period last year. As far as EBITDA figure is concerned, this quarter we have done in EBITDA around 164 crore as against 194 crore last year. Profit after tax is 39.58 crore as against 71 crore in same period last year. On the per-10 EBITDA front, it is 1,372 during this quarter as against 1,651 per-10 same quarter last year. This is what our quarterly numbers of second quarter. The total revenue figure for the half-year ended September 26 is around 1,774 crores as against 1,723 crores same period last year. As far as the EBITDA figure is concerned, during this half-year ended September 26, we have done an EBITDA of around 3 is 167 crore as against 424 crore last year. Profit after tax is 113 crore as against 169 crore in same period last year. On Pertan EBITDA front, it is 1438 during the half-year range of September 26 as against 1716 Pertan same period last year. These are the quarterly and half-yearly numbers. Now, I request all of you, if you have any query, you can ask the same, and I will request Weaver to moderate the query wherever it's required. Thank you. Now, over to Weaver.

Operator

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Harsh Mittal with MK Global Financial Services. Please go ahead.

Harsh Mittal, Analyst — MKM Global Financial Services

Yeah, thank you for the question. Good evening, team. So, my first question is on the volume trend. So, we understand that the first half was quite subdued compared to the last year. We quoted approximately 6% VOI growth in the first half, probably due to the elections and the heavy rainfalls. My question is, how do you see the second half panning out, and particularly, how has the month of October been in terms of demand?

Tushar Bhajanka, CEO

Thanks.

Operator

Members of the management, you are not audible if you are speaking at this time. Oh, sorry.

Tushar Bhajanka, CEO

Yeah. Can you hear me now?

Operator

You are audible, sir. You may go ahead.

Tushar Bhajanka, CEO

Sorry, yeah. So I was just saying that the first half, you know, the demand was subdued for, I think, two main reasons. One was the election, and the second reason was, of course, the flood, which happened in Assam. And Assam is our major market, right? So that is why the demand in Q2 was very subdued. But in Q3, Q4, we are seeing good traction in terms of volume. So we do expect the pent-up demand to show up in the second half of the year. And we do expect double-digit growth in the second half in terms of volume.

Harsh Mittal, Analyst — MKM Global Financial Services

Sir, any volume guidance if you can describe, including clinker, cement plus clinker for this volume?

Tushar Bhajanka, CEO

So, I think there should be about 12 to 13% growth in terms of volume in quarter 3 and quarter 4. You know, I will have to take out the exact absolute number, you know, in terms of tonnage. But then I think there should be a sequential growth compared to a YOY of about 12 to 13.

Harsh Mittal, Analyst — MKM Global Financial Services

Understood. Go on. So, second question is on the realization. So, we have seen price highs across India in trade and non-trade. How has been the realization, particularly in the Northeast region, in September and October?

Tushar Bhajanka, CEO

So, in September, the prices were broadly plattish, but in October, we have seen that the prices have increased a bit, right? So, I think there has been about 10 rupees increase. In Northeast, I think there has been about 10 to 15 rupees increase in outside Northeast, which is basically West Bengal as well. So there is a trend of increasing prices, but at the same time, the price increase is a bit weak, right?

Operator

To ask a question, you may press star and one. Our next question comes from the line of Shravan Shah with Dolat Capital. Please go ahead.

Shravan Shah, Analyst — Dolat Capital

Hi, sir. Thank you. Sir, couple of questions. So, first, sir, on the capex date and the expansion front. So, in terms of the last presentation that we have uploaded for Q1, so, it seems that in terms of the capex number has been increased. So, till now in 1H, we have done. So, just wanted to get a clarity that in presentation, we have mentioned 560-odd crod for this year, next year, 1910, and 529-610. So, particularly the nimble, we are saying now 3,080-odd crod kind of a total capex versus previously that number was slightly on the lower side. So that is one aspect. Second is now whether the, we will only be looking the nimble, the 5 million ton expansion or the 2 million ton which we were looking at either Bihar or West Bengal, will that be also be considered till F-29.

Tushar Bhajanka, CEO

Yes, so I think there must have been some increase in the overall KPX because now we have actually decided to put...

Shravan Shah, Analyst — Dolat Capital

So, in a nimble, clinker is a 3.3 and the cement will be a 3 million ton and Jajjar will be a 3 million ton grinding versus a 2 million ton.

Tushar Bhajanka, CEO

Yes. And so, what we have gone, you know, so, and the 3.3 million tons of clinker.

Shravan Shah, Analyst — Dolat Capital

Just to get more clarity, so now for the entire 6 million ton, including the thinker, what will be the total capex, and how it will be spread in 27, 28, 29, and will this entire 6 million ton come by Q4, F28, 1Q, F29, when it will start?

Tushar Bhajanka, CEO

So this, you know, will come by about July, August, July, August, 2028. Okay, so that I think is about Q1, that's about Q2 of FY20. And the KPEX, I think we will, in our presentation, give an accurate breakup of the KPEX that we expect. These are, of course, sensitive numbers. We are, of course, trying to do as little KPEX as possible and to optimize it. So, the numbers that we will share in the presentation will be of the actual scenario that we see. You know, as the project goes on. I think it should be within the 3,000 crores, which has already been showcased in our last presentation.

Shravan Shah, Analyst — Dolat Capital

Okay, and roughly for the West Bengal or Bihar, if we go for it, what would be the capex and whenever we'll go, will it also come by Q2F29 or when it will come?

Tushar Bhajanka, CEO

So, the Bihar, the Capex would, of course, be more than West Bengal, and that is why we are contemplating between Bihar and West Bengal, because Bihar will be a greenfield plant which will require its own rail residing, wagon, tupler, land, etc., whereas Seliguri, we already have the land, we already have a flight for the EC, you know, railway is already there, so a lot of things are just already there, right, so the Capex would differ a lot. I think Celigudi would be about 350 crores of the Apex, whereas...

Shravan Shah, Analyst — Dolat Capital

So, whenever we will start, in terms of the broader timeline, in terms of when it will start, and also, in terms of the, for NIMBOL, we were looking for the EC by this October, November, whether that EC has came.

Tushar Bhajanka, CEO

Yeah, so the EC for NIMBOL, to be important, there is a EI meeting.

Operator

Sorry to interrupt, Shravan, we request you to please rejoin the queue if you have any further questions. Thank you. Ladies and gentlemen, you may press star and want to ask a question. Our next question comes from the line of Rajesh Ravi with HDFC Securities. Please go ahead.

Rajesh Ravi, Analyst — HDFC Securities Limited

Yeah, hi, Shadeva.

Operator

You are audible, sir. You may proceed.

Rajesh Ravi, Analyst — HDFC Securities Limited

Yeah. A few questions. First, on the filter railway deciding what is the status of the operational emission and the cost-saving outlook for that unit. And second, on the fuel cost, we were expecting a decline of 10 PASA in Q2 versus Q1, while it has remained steady at 155. So, you know, why did this happen and what is the outlook for QG?

Tushar Bhajanka, CEO

So, the filter, I think, you know, we were supposed to get two things. We were supposed to get power connection and we were supposed to get railway siding. So, railway siding, you know, so power is partially connected, but the railway siding, I think, will come by January. And that's when we'll start seeing savings in flyage costs as well. The, what was the second question for you?

Rajesh Ravi, Analyst — HDFC Securities Limited

On the fuel cost, we saw, you know, in Q1 call, you are expecting fuel cost to come up by 10 pesa Q1Q, from 155 to 145, 1.45, while it remains flattish at 1.55. Why did it happen so? And again in Q3, what is the cost of the limited Q3 cost?

Manoj Akarwal, CFO

Rajesh, we have told that 1.45 we will reach by the end of March, we will be reaching at 1.45. Okay. So, because we have gradually decreased. So, because 1.55, this quarter it is 1.52. Okay. So, it will gradually decrease.

Tushar Bhajanka, CEO

And also, the problem is that, you know, there is a gold shortage throughout, right? So, as you see in other companies' presentation as well, the fuel prices are going up. Because, uh...

Rajesh Ravi, Analyst — HDFC Securities Limited

Given that the industry will see a spike in Q3, and particularly in Q4, to maintain at 1.5, that is not me, and, you know, good for the numbers. And, Cynthia, you mentioned that, you know, railway siding would be for Brisbane by January, and so thereafter, the benefits should start coming, right?

Tushar Bhajanka, CEO

Yes, exactly. Exactly. We were having some issues with the power as well, you know, so that will also get resolved. Because there was some problem in the substation, so that will also get resolved, and the railway siding will also come. So the economics of silksha plant will also become much better, and then I think we should see some operational savings also in terms of cost from Q4 onwards of this year.

Rajesh Ravi, Analyst — HDFC Securities Limited

So, Gaur, H2 guided that you are looking at 12-13% cement volume growth in the H2G around here, right?

Tushar Bhajanka, CEO

Yeah, year-on-year, yes.

Rajesh Ravi, Analyst — HDFC Securities Limited

So, how has that been? How has demand shaped up for you or sales shaped up for you in the month of October in terms of growth?

Tushar Bhajanka, CEO

So, October was actually, like, you know, more than 12%. So, you know, that is why it just gives me some confidence that I think in the remaining month.

Rajesh Ravi, Analyst — HDFC Securities Limited

So, the full year 7-8% cement volume growth target can largely remain intact.

Tushar Bhajanka, CEO

Yeah, I think so. Yeah.

Rajesh Ravi, Analyst — HDFC Securities Limited

Okay. And on the incentive, I see, sequentially, we have booked higher incentive in this quarter. Yeah. Any specific reason, I believe for the fully, as we have cut the guidance, you know, so is it 36 crore, some contents of some one-offs, which may not come through in Q3, Q4? How should one read it?

Manoj Akarwal, CFO

In Q3 and Q4, we have already told that there is some change in the incentive. So, accordingly, because this quarter we have got the approval for the remaining 20 years to 12 years. So, that is why there is an increase in the subsidy. And in the next two quarters, we are expecting around, same coin, 65 crores, a half year. Next half year, we'll be getting around 65. This two half year, it is around 60 crores. Next half year, I assume it will be around 65 to 70 crores of subsidy. Thank you very much.

Operator

Rajesh? Rajesh, does that answer your question?

Rajesh Ravi, Analyst — HDFC Securities Limited

Yeah, yeah. Okay, okay. Understood. So, understood that Q2 run rate will continue in Q3, Q4. Okay. Yeah.

Operator

Yeah.

Rajesh Ravi, Analyst — HDFC Securities Limited

I think that's all. Thank you. And all the best. I'll come back in queue.

Operator

Thank you. Thank you. You may press star and one to ask a question. The next question is from the line of Shravan Shah from Dholat Capital. Please go ahead.

Shravan Shah, Analyst — Dolat Capital

Hi, sir, just continuing on that, so in terms of how do we pencil in the CAPEX number for this year, next year, FY28, 29, broadly?

Tushar Bhajanka, CEO

I think the CAPEX numbers of this year, next year, and FY29, you know, we will show, we will, I, yeah.

Shravan Shah, Analyst — Dolat Capital

But broadly, if you can spell, it would be helpful. The direction is because last time we said that 5,600 crores for this year, 1,500 crores kind of a number for next year for 28, which obviously has increased in the presentation, 1,900 crores. So that's a broadly. Can we go by what the Q1 presentation number says?

Tushar Bhajanka, CEO

Yeah, I think broadly we can go by that number, you know, and if in the presentation right now, we will only try to optimize basis, whatever CAPEX we have already done, and whatever understanding of the CAPEX, revised understanding of the CAPEX we have now, you know, the number should only go down. Yes, I think that stand broadly remains for now because I think the markets are also corrected significantly, right?

Shravan Shah, Analyst — Dolat Capital

Okay, got it. Sir, a couple of data points. What was the premium share for this quarter, clinker factor, lead distance, and? Sorry, sir, premium, sir, I couldn't hear. How can you repeat it?

Tushar Bhajanka, CEO

17.3. 17.3.

Shravan Shah, Analyst — Dolat Capital

And in terms of the green, sir, what was the number for this quarter?

Tushar Bhajanka, CEO

For the fuel?

Shravan Shah, Analyst — Dolat Capital

Green power, sir.

Tushar Bhajanka, CEO

Green power, I... Green power was number 28%.

Shravan Shah, Analyst — Dolat Capital

Twenty-eight percent. And in terms of the fuel mix, FSA, SPOT, and AFR, and biomass?

Tushar Bhajanka, CEO

So, you know, SSA was about 45 percent. You know, washy coal and co-fying coal was about 40 percent. Biomass was about...

Shravan Shah, Analyst — Dolat Capital

Okay. Okay. Got it. And in terms of the non-cement revenue for this quarter was how much, sir?

Manoj Akarwal, CFO

22. It is 22 crores.

Shravan Shah, Analyst — Dolat Capital

22 crores. Okay. So for one edge, it is 37, 38 crores. So for full year, how one can look at this?

Manoj Akarwal, CFO

It will be around 100 crores for the whole year.

Shravan Shah, Analyst — Dolat Capital

Okay, got it. And just one clarification in terms of the nimble, the incentive what we have given in the presentation. So just directionally, it would be more beneficial for particularly for nimble to go for the SGST versus capital subsidy. And because if you go for SGST, that will be a part of revenue. So that's what I'm asking.

Manoj Akarwal, CFO

No, because in the cash flow term, it is better to have a capital investment subsidy. Okay, may or may not be it will not come into the revenue, it is a capital revenue grant, but in terms of the cash flow, it is better in the present value, capital subsidy is better than the GST thing. So that is why we have chosen that.

Shravan Shah, Analyst — Dolat Capital

Okay, okay, okay. And, sir, in terms of the profitability, previously, we were looking at 1,500 to 1,600 odd rupees for this year. So, because the first half is slightly on the lower side, so can we be able to maintain that?

Manoj Akarwal, CFO

No, Stravan, whatever we have told regarding the EBITDA guidance, that we will see that by the year end, whatever we have told, that will be achieved. Okay, okay, okay. Got it, sir.

Shravan Shah, Analyst — Dolat Capital

Thank you and all the best.

Operator

Thank you. To ask a question, you may press star and one. Our next question comes from the line of Naveen Shahdev with ICICI Security. Please go ahead. Yeah, hi. Good evening, sir, and thank you for the opportunity. I hope I'm audible. Hello? You are audible, sir?

Rajesh Ravi, Analyst — HDFC Securities Limited

Yeah, yeah, yeah.

Naveen Sahadev, Analyst — ICICI Securities

Thank you. Thank you, sir. So my first question was on the fuel mix. So what we are gathering is, The significant increase in the premiums, the e-auction or the auction coal India is getting currently because globally the prices have shot up. So in a scenario like that, how are we managing to keep the cost as in, I believe because you said Q3 and Q4 also, especially Q3, the cost is just going to be splattish at around 1.5. So I'm just trying to understand in a scenario where the domestic coal or the e-auction coal premiums charged by Coal India have more than doubled. As what I could understand from the October data, how are we able to manage it to keep the cost flattish, if you can just help us understand that?

Tushar Bhajanka, CEO

Yeah, so, hi. We're going to be spending the three months.

Naveen Sahadev, Analyst — ICICI Securities

My second question then was around the, like, you know, significant expansions that cement companies are planning for Northeast. More recently, we saw Ambuja planning a 4 million ton unit. Seems like J.K. Lakshmi has also firmed up its plan to set up a plant in Northeast again. And Shree Cement is already, as you know, pursuing. I'm not sure if there is any other company that is looking at it, and you could help us understand if there are more players. But given the capacity influx that's happening, is it safe to conclude that this region, which earlier had prices largely insulated, could now face more volatility because several larger companies with deeper pockets are eyeing the space?

Tushar Bhajanka, CEO

I think, you know, like we discussed last time also, you know, Northeast, you know, they all have announced and they all will be putting up the plants as humans, right? And, you know, first of all, I think they will take two, three years to put a plant because plants in Northeast or in Assam all... and then we also have about 15-17% Thank you. We'll also be looking for a return on those capixels. So I think everyone comes, enters, to earn some money, right? The money in office is not at the turnover, it is in margin. And I think everyone understands that. So I do think that... I think in the long term, the pricing should stabilise.

Naveen Sahadev, Analyst — ICICI Securities

And just in relation to this, is it also fair to assume that the new plants will be eligible for the same incentive structure that we are currently getting or enjoying, or it is slightly different or at a slightly lower level than what we have?

Tushar Bhajanka, CEO

So, I think, personally, it may be similar. What we're getting is just that, you know, we had gotten about 200% on our... You know, we will also put our Rangshu plant in, and they're also probably trying to put their plants in. The productivity or the subsidy may be different, but the quantum per year may be similar for the years that we are getting it.

Naveen Sahadev, Analyst — ICICI Securities

Understood. Can I slip in one more question, please? This was about the CAPEX outflow. I understand that as compared to the previous CAPEX plan, there is uncertainty or we are reviewing the East India's unit. That's why the total CAPEX outlay that you have given in your Q1 presentation, which comes with a little bit of a lag, is changed. But it seems outflow for FY28, which earlier was guided at 1,400 crore, is short up to 1910, whereas the plant is still largely coming in Q2 of 29. So if you could just help us understand the reason for expediting this KPEX or it's still flexible, we can like, you know, still keep the load on F529 with performance guarantees and stuff like that. Just a bit, some clarification to help us understand hash out loads for KPEX.

Tushar Bhajanka, CEO

Yes, no, thank you. So, I mean, you know what, the CapEx guidance that we'll give in Q... I think we'll get clarity or judgment in a month's time, you know, when we've aggregated the full land, and then we apply for the EC. So I think because now, you know, most, like the majority of the project is... which we are getting in flight.

Manoj Akarwal, CFO

One thing is that because that 2229, whatever we have projected, 1900, this is flexible because the entire project cost will be same. Maybe that can be tweaked between 29 and 28, because there can be a bias rate. We can avail the bias rate option, because part of the machinery will come from the imported machinery. So that 1900 is not a static figure. That can be tweaked in maybe 28. That amount can be transferred to 29 or maybe to 30 if we have a two-year bias rate. So that, it just was an estimate, but it takes 10 bit 12 to 20, 8 to 29, even up to 20, 2030.

Operator

Understood. Thank you. Ladies and gentlemen, this is the final reminder. There will be no further reminders for you to ask a question by pressing star and one. Our next question comes from the line of Rajesh Ravi with HDFC Securities. Please go ahead.

Rajesh Ravi, Analyst — HDFC Securities Limited

Thank you, sir. Just a follow-up on the North-East extensions by the competitors. What is your estimation of the three companies setting up capacities, you can actually use the cement, by when do you see practically their clinical unit starting?

Tushar Bhajanka, CEO

So, we don't have a

Tushar Bhajanka, CEO

clear idea about SheFament right now, because... So, you know, You know, with what situation they're in. But I think J.K.

Rajesh Ravi, Analyst — HDFC Securities Limited

Lakshmi had announced, and The other two companies may be back-ended and later, how about Web 2.29 is where I assume so, for next to the 5.27, 28, 29, last part of these three years. Would Star and Dalmia be the dominant player in the market and want any of the stable pricing and selling margins to accrue for the next two to three years?

Tushar Bhajanka, CEO

Yeah, I mean, that is what my expectation is, right? And even after that, I think the, you know, like for us as StarClements, you know, we have about, you know, most of our sales in Northeast happens through our trade network, right? So out of all the companies. In the mainland India also, we have the highest trade shares, one of the highest trade shares. Good thing that, you know, the dominance, even after two, three years, you know, will, of course, be with income and fee will happen, market will be shared. Some smaller players, which are insufficient, they may shut down. You know, although things may happen, I think the dominance remains even after. So, yeah, for three years, the margin pressure will not be there for sure. Till the time the, you know, capacities come. And even the capacities that come, you know, like, you have to probably rationalize a bit because even the kiln which, you know, she committed putting is a 1,000,000 kiln. Right? It's what my idea is. Because the Heapy pandemic is a 1,000,000 kiln. So, and even J.K. Lakshmi is 1 million EC, right? So that means that they cannot produce more than 1 million, right? And Adani is 4 million, but I don't know the timelines of it. So, you know, so a 1 million capacity is something that the market can adjust because it is growing at about 1.5 million every year, right? So, you know, so market, we'll have to read it a bit, and then there is about 15, 16 percent. Cement coming from outside as well, right, to this market, which of course will also reduce. So I think there is a bit of all those things which will play out, but I think for the next two years, I do not see a problem in the margin, right?

Rajesh Ravi, Analyst — HDFC Securities Limited

Understood. Understood. That's quite helpful. And could you, Manu sir, could you share what was the blended power consumption cost per unit in QT?

Operator

Thank you. Ladies and gentlemen, we have our next last two questions. The first from the line of Naveen Shahadev from ICICI Security. Please go ahead. Yeah, thank you. Thank you for the follow-up. Just to confirm, how much material you say, how much cement comes into northeast from other regions? I'm assuming it would be largely West Bengal, right? So, how much material that comes in?

Tushar Bhajanka, CEO

It's about 16, 15-16%.

Operator

15% to 16%.

Tushar Bhajanka, CEO

15% of the market share of Northeast is with outside sales. And that's largely through Rakes.

Operator

So it comes, as in, if you could just help me slightly understand better, it comes from West Bengal state only or from other states, and which are the catchment areas for that? Because I believe Rave is quite a... Rake, as in, it's a difficult terrain, right? So which are the catchment areas for material to come into that market?

Tushar Bhajanka, CEO

So Chathamgarh, Westing Wall, you know, are probably areas where the, you know, the cement rake. And attachment areas are, of course, like areas which are closer to the station, right? So it could be Guwahati, it would be Silcher, it would be, you know, any place which is close to Guwahati. And they're normally selling in consignment basis, so they're not making their dealer network, they're selling in consignment. So, you know, when the going becomes a bit hard, the rig stops coming as much. You know, when they see a good margin, they start sending rigs. So this is normally the phenomena that happens.

Operator

Just one on this. This 16-17% transpires into what kind of volume? Is it 2-3 million times?

Tushar Bhajanka, CEO

16-17% transpires to about, yeah, at least, like,

Manoj Akarwal, CFO

Naveen Ji, it is around 15 million market, I suppose 16%, it is around, here this is 2.4 million per year.

Operator

Understood, understood. And just last question, is there any update on the RMC units we were probably looking to explore in the north region as part of our penetration program into the region before our capacity comes up there?

Rajesh Ravi, Analyst — HDFC Securities Limited

I'm just holding it.

Operator

Some glitches are there.

Tushar Bhajanka, CEO

We have to resolve. Tushar, we proceed to the next. Yeah, now it's okay.

Operator

Yeah. Our next question. Our next question comes from the line of Tushar Agarwal with ICICI Bank. Please go ahead.

Rajesh Ravi, Analyst — HDFC Securities Limited

Hello, I'm audible.

Operator

You are audible.

Tushar Agarwal, Analyst — ICICI Bank

Yeah, you are audible. Yeah. Just some data points. What is the blended fuel cost on KKL basis for this quarter?

Manoj Akarwal, CFO

This is consumption, Vajid, 1.52, it is now, per and fill.

Tushar Agarwal, Analyst — ICICI Bank

Okay, and just want to confirm the volume figures, can you please repeat the volume figures?

Manoj Akarwal, CFO

Volume figures, total is the 11.23 is the cement, and 0.74 is the clinker, total 11.97.

Tushar Agarwal, Analyst — ICICI Bank

Okay, thank you so much.

Operator

Thank you. The next question is from the line of Naveen Shadev with ICSA Securities. Please go ahead.

Naveen Sahadev, Analyst — ICICI Securities

Yeah, and sorry if I was not audible. I was only asking if there is any update on the RMC units we were exploring to set up in North before our greenfield unit commission there.

Tushar Bhajanka, CEO

So, I don't know if you got the answer to the first question, because I had disconnected, but, you know, 16% would, of course, mean about 2.4 to 2.5 million tons. Thank you. Thank you. Local markets, but at the same time, they are So that they can start serving the market in some capacity. Activity will start one year before we... So that idea was very helpful.

Operator

Great. All the best. Thank you. Thank you. We will now take our last question from the line of Shravan Shah from Daulat Capital. Please go ahead.

Shravan Shah, Analyst — Dolat Capital

Sir, what was the trade share for this quarter?

Tushar Bhajanka, CEO

Trade share was 77%.

Shravan Shah, Analyst — Dolat Capital

77%. Okay. And broadly, for this quarter Q2, in terms of the industry level for Northeast, the growth would be the similar what we have seen for ourselves in terms of the 45% or it would be on the lower side?

Tushar Bhajanka, CEO

It would be in Northeast. In North East for quarter three and quarter four? Quarter two. Yeah, quarter two. That is because of the monsoon, you know, so like almost one and a half months went in that. So the, and Assam is like the major market in North East. And both Assam and Nagaland were completely flooded this time. So I think because of that, you know, the growth has been quite new. And then plus like, you know, the money put problem is still going on. Right. So there is a significant regrowth in those markets. But that has also played a role in the world.

Shravan Shah, Analyst — Dolat Capital

So, so far in the second half, so broadly, if I, if I look, correct me if I'm wrong, in Q1 also, I think one, one and a half percent and plenty. So broadly, one can say kind of a one percent or maybe a half a percent kind of a growth for northeast in the one edge. And then for second half, this, we are expecting to bounce back to which number?

Tushar Bhajanka, CEO

So, in the second half, we are expecting for it to be, you know, the growth in Northeast to be, you know, close to a double digit, right? And then we are seeing a good growth in West Bengal markets. So, there I think the growth would be in the higher team, right? So, the overall growth on a company basis becomes about 12 to 13 percent.

Shravan Shah, Analyst — Dolat Capital

Yeah, for you, I got it. I was trying to understand for the industry. So, for industry also in second half in Northeast, we are looking at a different level.

Tushar Bhajanka, CEO

So, I mean, honestly, the growth will be about 7-8%, you know, for the industry in Northeast, I guess. Yeah.

Shravan Shah, Analyst — Dolat Capital

Okay, 7-8% or 8-10?

Tushar Bhajanka, CEO

I would just go for 7-8% only, because, you know, Because, I mean, the market seems a bit dry in terms of credit and all, so I would go with 7-8%.

Manoj Akarwal, CFO

Because the industry will grow to 7-8%, but we will grow in double series, because Headroom is with us and other Dalmia. So, everybody will be having a full capacity utilization at that time, and we have the capacity, so that is why our growth is... They have more than 10 percent, and the industry 7 to 8 percent. That is what Sataji has told.

Shravan Shah, Analyst — Dolat Capital

Yeah, I know. So I was trying to understand, sir, the clinker sell, what we are doing. So close to 1,26,000 ton that we have sold in one edge. So just trying to understand why can't we make it cement and sell? Is it not more profitable? Or is it the demand is not there and that's why we have to sell the clinker?

Tushar Bhajanka, CEO

No, so, sorry, can you just repeat your question again?

Shravan Shah, Analyst — Dolat Capital

I was saying that in 1H, we have sold 1,26,000 ton of clinker. So, just trying to understand why don't we make the cement and then sell versus this clinker sale, and how do we look at this clinker sale going forward?

Tushar Bhajanka, CEO

So, good question. I think, you know, the clinker is normally sold to players which are smaller branding units, which do not have a clinker plant. Right? These branding units are not branded players. They are non-branded players who do not directly compete with you. Right? And the customers who are buying non-branded cement are not customers who will definitely go and buy star cement. Because the gap in prices is huge between the non-branded and branded. So we are basically selling slinker to those people, you know, who are making cement, which is not directly competing with you. So we are not selling it to a Dalmia. You know, we will not be selling it to, you know, Yeah, and some of the clinker is also not being used in Northeast. It is going to Filigodi, it may be going to Nepal, it may be going to other areas which are not in Northeast. So it's a mix of the two, but I do get your point that we should try to avoid selling clinker and sell cement instead. So that we have started from Q3 onward. What we have done is that we have increased the prices of clinker so that we are only selling clinker selectively. And even if you are telling Klinker, we get a good realization for it. And, you know, so that there's no oversupply of Klinker in the market. Right?

Shravan Shah, Analyst — Dolat Capital

Oh, okay. Got it, sir. Thank you.

Tushar Bhajanka, CEO

You see that from quarter three onwards, the tonnage may reduce, but the margin may increase in Klinker sales.

Shravan Shah, Analyst — Dolat Capital

Great, great. Thank you. Thank you, sir.

Operator

Thank you. I would now like to hand the conference over to Mr. Vaibhav Agarwal for closing comments.

Vaibhav Agarwal, Host

Yeah, thank you. Tushar, this is one small clarification I needed. So, in the call earlier, you said that for the silly-goody grinding unit, you will take the call maybe in Q3 or towards Q4, maybe in the second half of current year. So, will this grinding unit call will also be complemented with a clinkerization unit call and Omran, because we are looking at a capacity external clinker also. So, is it fair to say that both the capacities will come together or will be only the grinding capacity call, which we will take in next quarter?

Tushar Bhajanka, CEO

Thank you. So, I mean, basically, you know, we are taking these two decisions independently, right, because we are putting up a grinding unit in celebrity because we do see a good growth in.

Vaibhav Agarwal, Host

I was asking you basically from the perspective that you are saying that 1st December, maybe December, you are groundbreaking for the Rajasthan plant. And I presume it will take 18 to 24 months for you to come there commissioning the Rajasthan plant as well as Jarja. So will the Rajasthan and Jarja even come together? And secondly, will your Umganshu expansion be holding hold in the Rajasthan? Or can you take both the expansions simultaneously within our targeted debt to Abidda?

Tushar Bhajanka, CEO

Yeah, no fair enough. So, we will be taking the... I mean, the chajar and the nimbol clinker plant will... Thank you. In case we think that the demand is good, then we may start, there may be some overlap between the synchronization and Nimbol and Omdanshu, but it really depends on how the demand opens up.

Vaibhav Agarwal, Host

And then just one last thing, regarding the Bihar unit, which you have said that you will be evaluating between Bihar and Silikud. So, suppose you could decide for Silikud, then Bihar is not ruled out, right? In the future, you are still considering Bihar because you are buying land, like you said in the previous pause. So, when you are buying land, Bihar will still be there in the ambit in the future or it will be called off?

Tushar Bhajanka, CEO

Yeah, so we will defer, like once we put silly goodies in, we will defer Bihar. But yes, I think we will, you know, we are still... That we had gotten earlier. We'll buy the plot, we'll apply for permission and everything, and then we'll just keep that plot ready for the future, that whenever we do want to put up the grinding unit, maybe along with the clinkerization and whatnot.

Vaibhav Agarwal, Host

So, nutshell, if you can ask, which year you are targeting the 20 million capacity target for Star Cement, Malakpur, say, 2031, 2032 is a fair estimate, or you can still say 2030, we can achieve that number.

Tushar Bhajanka, CEO

No, but I think, you know, practically, if you are going with 6 million tons, like, broadly, we are about 9, we are 9.7, let's just think.

Vaibhav Agarwal, Host

On behalf of Philippe Capital India Private Limited, I'd like to thank the manager of Star Summit for the call, and many thanks for joining the call. Thank you very much, sir. Thank you.

Operator

Certainly, sir.

Vaibhav Agarwal, Host

Thank you. Thank you very much.

Operator

On behalf of Philippe Capital India Private Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.