Ashapura Minechem Limited — Q3 FY26

Ashapura Minechem Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8D0vxL2xHGg Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Ashapura Minekim Limited Q3 FI26 earnings conference call hosted by 0:08 8 seconds ad factors. This conference call may contain forward-looking statements about the company which are based on the 0:15 15 seconds beliefs, opinions and expectations of the company as on the date of this call. 0:20 20 seconds These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to 0:27 27 seconds predict. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to 0:34 34 seconds ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:43 43 seconds zero on your touchstone phone. Please note that this call is being recorded. I now hand the conference over to Mr. 0:52 52 seconds Chayan Sha, promoter director of Ashapura Mind Limited. Thank you and over to you sir. 0:59 59 seconds Thank you. Hello friends. 1:04 1 minute, 4 seconds Good evening. This is our third investors call and I'd like to welcome 1:10 1 minute, 10 seconds all our stakeholders on this investors call to review our quarterly performance. 1:18 1 minute, 18 seconds I also like to appreciate our team including Manan, Ashish and Sachin who 1:26 1 minute, 26 seconds have maintained this momentum to ensure that you receive all informations on regular basis. 1:37 1 minute, 37 seconds I agree that our quarterly results are par with our previous quarter but 1:44 1 minute, 44 seconds certainly it is slightly below the expectations. 1:49 1 minute, 49 seconds The prolonged monsoon in Gina had impacted our operations and affecting our overall performance. 2:03 2 minutes, 3 seconds we not achieved our expected volume uh which we have planned for quarter 3. 2:13 2 minutes, 13 seconds It's not that there is uh we had uh sufficient commitment but because of the climatic changes and 2:23 2 minutes, 23 seconds uh some logistic difficulties because of changing climates we could not push that volume. It's not uh any other reasons. 2:32 2 minutes, 32 seconds Uh there's no lack of business or there is no lack of orders or not lack of uh 2:38 2 minutes, 38 seconds any uh shipping arrangements etc. But uh we could not reach to the expected 2:45 2 minutes, 45 seconds volume and that's affected the performance. 2:49 2 minutes, 49 seconds At the same time our team is working diligently to mitigate such effects and get back to 2:57 2 minutes, 57 seconds things on track. I'm sure the outcome should reflect in our forthcoming quarters. 3:08 3 minutes, 8 seconds uh I can uh tell more about the GIA operations but before that we just tell you that about the India also the Indian 3:15 3 minutes, 15 seconds operations also have seen some headwinds mainly due to volatality in the raw 3:21 3 minutes, 21 seconds material cost and the climatic changes at the same time you could see that a 3:30 3 minutes, 30 seconds remarkable improvement in our Ibida margin and this is mainly Because of during the 3:38 3 minutes, 38 seconds quarter we are not paid any kind of a substantial damage the maintain consistent shipping freight 3:47 3 minutes, 47 seconds and also our new tie up with the mining and logistic contractors with the China railway. 4:04 4 minutes, 4 seconds These factors help to improve the IBIDA margin. 4:08 4 minutes, 8 seconds Besides that, we have taken a several new initiatives will help to maintain the persistent cost structure. This 4:16 4 minutes, 16 seconds means the improvement in volume in future and I mean that the impre improvement in the volume in the future 4:23 4 minutes, 23 seconds and stabilize the market price will create a many more new records in coming quarters. We are quite optimistic for the future. 4:35 4 minutes, 35 seconds I know the current market price of the boxite might be concern for all. 4:42 4 minutes, 42 seconds it is our concern too but the price in the last few days is stabilized 4:50 4 minutes, 50 seconds at this level and uh I think now it's the time to there will be a some revival 4:57 4 minutes, 57 seconds in the price and that has to go towards north we are waiting for the Chinese spring festival time Chinese new time 5:06 5 minutes, 6 seconds and after that we could see that there will be some upward trend in the box side price but at the current price also 5:15 5 minutes, 15 seconds uh we are fairly comfortable to continue our uh export activities. 5:28 5 minutes, 28 seconds The main reasons for the drop in the boxite price are mainly because of the some of the suspended leases in India has started their operation. 5:41 5 minutes, 41 seconds There is uh another factor is the US China long-term trade deal is yet to be concluded. So that is all the trade deal 5:50 5 minutes, 50 seconds is on the short-term basis. They're waiting for the some trade deal to happen on long-term basis which will again the push the requirement and the demand for the aluminum metal. 6:03 6 minutes, 3 seconds Another factor is the China government has stopped the approval for the new 6:12 6 minutes, 12 seconds smelters uh in China. They want the Chinese entrepreneurs to look the anywhere in the world to set up the new smelters. 6:22 6 minutes, 22 seconds It's related with aluminium or copper and not within the China. So Chinese entrepreneurs are looking for the some 6:30 6 minutes, 30 seconds new opportunities and this is the reason uh the new upcoming aluminina refineries have the excess supplies of the 6:39 6 minutes, 39 seconds aluminina and that has also given us some pressure on the boxite price. 6:47 6 minutes, 47 seconds If you look at that the how the boxite price will go into the future and what are the reasons to be. 6:55 6 minutes, 55 seconds If you look uh overall the picture the Guinea is the only country who has vi is 7:02 7 minutes, 2 seconds a viable or commercially viable country to supply boide to the rest of the world. 7:10 7 minutes, 10 seconds The Guinea will cross 200 million ta exports in this year and currently you 7:17 7 minutes, 17 seconds know you won't see any other country in the world who can replace Guinea now or in next 10 years. So Guinea will remain 7:26 7 minutes, 26 seconds in a pre uh you can say in a very strong positions for coming many years. there's no excess supplies is coming from any 7:35 7 minutes, 35 seconds other part other than the Australia that they they supplies about 40 million tons of boxes and there's no other countries 7:43 7 minutes, 43 seconds like India or Brazil or Indonesia that supplying any major exports either to China or any other countries in the 7:51 7 minutes, 51 seconds world. So looking to these factors, Guinea will remain in a very uh predominant 7:59 7 minutes, 59 seconds conditions [clears throat] to continue to supply and uh 8:14 8 minutes, 14 seconds during the course of time you have taken the several new initiatives that's long-term tie up with the mining 8:21 8 minutes, 21 seconds and uh logistics company long-term tie with the ocean freight 8:28 8 minutes, 28 seconds that will be a long-term sustainability for the Ashapura for as far as the 8:35 8 minutes, 35 seconds costing or the you can say the cost structure is concerned. 8:41 8 minutes, 41 seconds We are able to keep all our cost in control. volume growth is very certain 8:48 8 minutes, 48 seconds and we have lot of optimism on the price stabilizations and uh reasonable level will put Ashapura in much better league. 9:01 9 minutes, 1 second As you also know that Ashapura has hold the license for iron or mining. 9:10 9 minutes, 10 seconds Currently our iron ore has been like we are supplying to the local bification plant and um now the our quality is 9:20 9 minutes, 20 seconds fairly established and stabilized with the benefication plant and we expect some substantial volume during this year. 9:30 9 minutes, 30 seconds Of course, this is a local supply basis and um we will continue to supply to 9:37 9 minutes, 37 seconds this benefit plant whose requirement is very very large. 9:43 9 minutes, 43 seconds So we will have the some more additions of the witness in Guinea uh besides boxes. 9:52 9 minutes, 52 seconds So overall pictures looks uh quite uh um interesting 10:00 10 minutes and u we see that the whatever we could not have able to achieve during the last quarters we'll be able to make up in 10:09 10 minutes, 9 seconds coming quarters uh without any much problem. 10:13 10 minutes, 13 seconds I really appreciate all your interest in uh our current activities 10:19 10 minutes, 19 seconds and u we will continue to brief you on time to time. Thank you very much 10:31 10 minutes, 31 seconds sir. Should we open the floor for questions now? 10:34 10 minutes, 34 seconds Um uh I think we will have a small address by our CFO and then some closing remarks and then we can do that. So over to you Ashish Pay. 10:46 10 minutes, 46 seconds Thank you Manam and good afternoon everyone. 10:51 10 minutes, 51 seconds Coming to financial performance for quarter 3 and 9 months uh for 2526. So first of all let's see quarter 3 10:59 10 minutes, 59 seconds numbers. So consolidated revenue from operations for quarter 3 uh stood at 11:05 11 minutes, 5 seconds 960.4 4 K uh which is more or less par to be precise 8% quarteronquarter growth 11:14 11 minutes, 14 seconds uh on the back of consistent growth in Genia compared to quarter 1. A bit for quarter 3 stood at 143 cr which is a 11:23 11 minutes, 23 seconds growth of 8.3% quarteron quarter. Uh margin is 14.9% which was 13.9 in 11:30 11 minutes, 30 seconds quarter 2. This was mainly driven by reduced damage charges, enhanced cost efficiency and like that. 11:37 11 minutes, 37 seconds PBT U and before exceptional item for quarter 3 uh stood at 89.31 cringing 11:45 11 minutes, 45 seconds over 10% compared quarter on quarter and margin was 9.3% which was 8.5 in quarter 2. 11:54 11 minutes, 54 seconds Uh basic API stood at 8.82 for the quarter. 12:00 12 minutes Gina contributed around 76% to revenue in quarter 3 uh and India contributed 24.2%. 12:10 12 minutes, 10 seconds Coming to 9 months of 26 consolidated revenue stood at around 3,268 12:17 12 minutes, 17 seconds cr reflecting growth of almost 50% yearon year. 12:22 12 minutes, 22 seconds Abita came to around 463 cr which is 52% up compared to year one year with AITA margin of 14.2%. 12:32 12 minutes, 32 seconds Which was less than 14 in last 9 months of the same year. uh profit before tax and exceptional item 12:40 12 minutes, 40 seconds for 9 months uh was rupees 303 cringing 37% yearon year and PBT margin at 9.3% 12:50 12 minutes, 50 seconds versus 10% for last 9 months of 25 and basic EPS for 9 months stood at 30.43 43. 12:59 12 minutes, 59 seconds One exceptional note which we have given in the published result also was uh one-time impact on our PNL because of 13:07 13 minutes, 7 seconds labor code impact. Effective November 25, new labor code revised the definition of wages for the purpose of 13:13 13 minutes, 13 seconds computing employee benefits. Following detailed assessment, company has recognized an incremental impact of 1.77 13:21 13 minutes, 21 seconds cr at standalone level and 4.56 cr in the consolidated result as an exceptional item. 13:31 13 minutes, 31 seconds So that's all from the number point of view. I would request man to uh explain the dynamics of the 13:38 13 minutes, 38 seconds yeah just to share uh thanks Ash just to share some of the uh closing remarks on our uh you know long-term plan. Uh we 13:47 13 minutes, 47 seconds would like to reiterate that we are very confident of achieving our long-term volume target of 15 million tons. Uh 13:56 13 minutes, 56 seconds long uh this is for the 2728 as as we have stated we are confident of that. 14:02 14 minutes, 2 seconds While currently the box side prices are uh lower than our expectation, we expect them to stabilize and gradually pick up 14:10 14 minutes, 10 seconds and we also see that our company has put a lot of efforts to optimize the cost. 14:15 14 minutes, 15 seconds So we remain comfortable to uh make the shipments even at current prices. 14:22 14 minutes, 22 seconds So we expect that while there is a uh you know while there is an impact of price we expect that the increase in 14:30 14 minutes, 30 seconds volume to more than offset that impact and regarding to the India business we 14:37 14 minutes, 37 seconds remain confident of our long-term vision and goal to improving profitability and 14:45 14 minutes, 45 seconds sales through the addition of value added products and uh company remains focused on this goal in each of its major segments. 14:56 14 minutes, 56 seconds Uh thank you all for uh being with us on this call and now we can open the floor for their questions. 15:09 15 minutes, 9 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 15:16 15 minutes, 16 seconds star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you 15:23 15 minutes, 23 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 15:31 15 minutes, 31 seconds wait for a moment while the question queue assembles. 15:39 15 minutes, 39 seconds Our first question comes from the line of Kamlesh Bhagmar from Lotus Asset Managers. Please go ahead. 15:47 15 minutes, 47 seconds Yeah, thanks for the opportunity. money by just one person on the part of the operation. So what is the cost of uh 15:57 15 minutes, 57 seconds let's say production or the cost is the delivery of uh boxite. 16:07 16 minutes, 7 seconds Okay. I think that we have commented on this uh cost structure on earlier calls also but uh I think broadly the cost is 16:18 16 minutes, 18 seconds a break up into the three major categories you can consider that we have the seaf fairing cost we have the uh you 16:26 16 minutes, 26 seconds know the trans shshipment cost uh and then we have the mining and the logistics to the port cost. So broadly 16:34 16 minutes, 34 seconds uh these are the major costs which we are having. Uh as we have mentioned that uh our previous quarter a bit da has come in around $105. 16:45 16 minutes, 45 seconds So uh uh we expect that broadly uh some of this 16:51 16 minutes, 51 seconds cost may be slightly uh elastic with the selling price but most of the cost will remains uh relatively fixed or it will 16:59 16 minutes, 59 seconds gain the efficiency over time. So uh while giving current complete breakup on the call may not be possible but we 17:06 17 minutes, 6 seconds still expect that uh that our costing to be below uh uh uh the current uh current even the current prices of the boxite. 17:16 17 minutes, 16 seconds So for now what we can mention is that uh we our costing would be below even the current price of boxite. Uh however 17:24 17 minutes, 24 seconds detailed breakup would take time. The major components like I mentioned are C freight uh mining and logistics and the 17:31 17 minutes, 31 seconds trans shshipment costs. So that's what I can offer for now. 17:37 17 minutes, 37 seconds So uh like say it is $10 and half dollars a bit per turn in this quarter. So what was the realization? 17:46 17 minutes, 46 seconds I think at at current boxside prices probably the realization would moderate quite a bit. Uh no I'm talking about Q3. How how much about the realization Q3? 17:59 17 minutes, 59 seconds Realization is 10 and a half dollars. That's the AIDA. 18:05 18 minutes, 5 seconds Do you want the total number that is our volume declared volume is uh 1.39 and 18:10 18 minutes, 10 seconds the AIDA is $10. So about uh about 14 14.5 million. 18:19 18 minutes, 19 seconds I am asking that what is the revenue there? You have revenue I have realization sorry revenue I think is so we have given the in the 18:27 18 minutes, 27 seconds segment wise break up we have given that the total turnover from our guinea business has come 729 crores 18:36 18 minutes, 36 seconds uh point and the approx price would be around $70 I mean I'm converting the FOB also into 18:45 18 minutes, 45 seconds the CIF cost but our average index oh so yeah that would be around $70 18:51 18 minutes, 51 seconds Okay. $70 is FOB for C China the equivalent would be $70. 19:00 19 minutes Okay. Okay. And uh any update on the irono business here like say what is this? 19:05 19 minutes, 5 seconds So irono business as we mentioned last time we were having some trial activity with this benefit plant which has uh 19:13 19 minutes, 13 seconds progressed quite well. uh it's still we feel too soon to say but we are very hopeful that we would be having a very 19:21 19 minutes, 21 seconds uh clear uh projection for iron or at the end of the quarter 4 that what can be the uh you know the kind of volume 19:28 19 minutes, 28 seconds and the kind of uh realization which which which we can we can expect I think we should be in a good position to comment on that at the end of quarter 4. 19:37 19 minutes, 37 seconds I think the general idea is that we think that our trials are going quite well with the uh with with with the 19:44 19 minutes, 44 seconds partner on the benification uh plant and we are we are at least confident that uh there will be a long-term iron or 19:51 19 minutes, 51 seconds business with them and you have highlighted about the FI 28 volume guidance on box five. So what 20:00 20 minutes what we are targeting for this year FI 207? 20:04 20 minutes, 4 seconds Uh I think that uh somewhere we are uh we have not given out a target basically but we do think that it could be a 20:12 20 minutes, 12 seconds linear growth as I've mentioned many times that okay we did in the previous year about 3 or 3 and a half million tons and 15 million tons. So we expect 20:20 20 minutes, 20 seconds like a linear ramp up uh uh you know over the year on year and and and and uh that way. So uh from 3 million to 15 20:29 20 minutes, 29 seconds million with the with the uh three milestones in the middle. So you can add it up how it comes but we are expecting 20:36 20 minutes, 36 seconds a linear growth uh between three last year and 15 as a target for 2728. 20:44 20 minutes, 44 seconds Okay. Okay. Great. Thanks. Thank you. 20:49 20 minutes, 49 seconds Thank you. Our next question comes from the line of Nikk Mohata from Sequent Investments. Please go ahead. 20:59 20 minutes, 59 seconds Uh hi, good evening sir and thank you for the opportunity. So my first question is I I think so we have discussed about this debate charges in 21:07 21 minutes, 7 seconds our press release as well in our opening remarks. So can you help us quantify what were these damage charges that were paid in quarter two like the amount for it? 21:18 21 minutes, 18 seconds So I think that uh you know we we're not currently offering that kind of data but I can tell you that one of the reason we 21:26 21 minutes, 26 seconds were able to increase our AIDA even compared to quarter 2 uh quarter 3 has a 21:33 21 minutes, 33 seconds slightly lower pricing still we were able to improve our eida so definitely I 21:40 21 minutes, 40 seconds can say a good part of that contribution uh I would even say maybe at about 20 25 30% of the improvement actually comes 21:49 21 minutes, 49 seconds from uh the fact that our turnaround times for the shipments were much faster than quarter 2. So there is a significant improvement and there may be 21:57 21 minutes, 57 seconds still scope for a little bit more improvement uh as far as the deage is concerned as our execution capabilities 22:05 22 minutes, 5 seconds are improving. But uh I would say that uh it is a a good part of the improvement in the AIDA has come from uh 22:14 22 minutes, 14 seconds our ability to turn around these vessels faster. 22:20 22 minutes, 20 seconds Fair sir. So but so at the same time I believe that quarter three volumes were not as per up to the mark as uh you know 22:28 22 minutes, 28 seconds what we were expecting or what the management was expecting as well. So would that warrant another quarter of 22:36 22 minutes, 36 seconds del charges that might become a problem in coming quarters? 22:42 22 minutes, 42 seconds Okay. So I think that the the reason really was the prolonged monsoon uh and uh we have done our shipment 22:50 22 minutes, 50 seconds planning accordingly. So despite having the little bit of the numbers uh uh you 22:57 22 minutes, 57 seconds know our own internal targets we can safely say were missed for quarter 3 but despite that we had an improvement in demor. So our planning on the vessels 23:04 23 minutes, 4 seconds was probably far better. Uh I think quarter four also should see this kind of a turnaround or better. So because quarter 4 would have obviously no 23:13 23 minutes, 13 seconds monsoon impact. Uh I think our overall cost structure now is quite uh consistent and and and and and fairly 23:21 23 minutes, 21 seconds fixed as we are stabilizing into into this journey. So demorage being one of those costs has also improved. 23:31 23 minutes, 31 seconds Hello. Yeah. Hello. 23:33 23 minutes, 33 seconds Yeah, our future uh our future threat contracts uh at the load court you know we have we are now working on CQD terms. 23:43 23 minutes, 43 seconds So in security terms there is no damage is applicable. So, so this is uh a new developments uh like the shipping companies agreed on uh security terms. 23:56 23 minutes, 56 seconds uh that means that that all the loading is without any damage and this is a good benefit for the company you know and we 24:03 24 minutes, 3 seconds can avoid and they can plan the shipment in a such a way that they they don't have the loss and we also don't have the 24:10 24 minutes, 10 seconds loss and there's a very big uh uh international capsiz carrier. 24:19 24 minutes, 19 seconds That's very positive to hear sir. So secondly on the pricing environment regarding 24:26 24 minutes, 26 seconds boxite. So there has been lot of headwinds regarding the pricing for boxite be it uh increased uh inventories 24:35 24 minutes, 35 seconds at the aluminina refineries in China or increased production out of Guinea. So at these prices we are expecting that 24:43 24 minutes, 43 seconds the prices to stabilize but at current prices how uh sustainable would our abida per turn 24:50 24 minutes, 50 seconds of $9 $10 would be so we definitely expect as I tried mentioning earlier we do expect that 24:58 24 minutes, 58 seconds will moderate as you can understand that our previous quarter we mentioned average pricing was around 70 and currently pricing going around is 60 or 25:06 25 minutes, 6 seconds 61 or something like this so there would be an impact but we still expect to be uh you know first of all we are 25:14 25 minutes, 14 seconds definitely confident of being aida positive the that's the first point uh I think that there can be a moderation 25:21 25 minutes, 21 seconds uh you know at least maybe there may be a 40 50% moderation uh which which I expect that may come in 25:29 25 minutes, 29 seconds the AIDA uh but we expected the volumes to offset uh the you know the port and 25:36 25 minutes, 36 seconds kind of uh the reduced abida expect the volume growth to support us uh in in this phase which which which we are 25:44 25 minutes, 44 seconds expecting from now on but yeah we do think that there may be a 40 50% uh 25:50 25 minutes, 50 seconds moderation in AIDA okay thanks you thank you for the opportunity 25:59 25 minutes, 59 seconds thank you thank you our next question comes from the line of Dhanjay Boria from Alchemy 26:07 26 minutes, 7 seconds please go ahead Hi. Uh maybe you missed this. Just a couple of things. A broadly what capex numbers are we thinking for the next few 26:16 26 minutes, 16 seconds years and B what is our cost of production versus some of our peers in terms of the cost goal? 26:23 26 minutes, 23 seconds Okay. I think uh capeex basically might be uh the the way that we look at it is 26:31 26 minutes, 31 seconds that basically in Guinea we feel that most of our capex is completed. We have a uh you know we as uh we are expecting 26:41 26 minutes, 41 seconds that maybe compared to the capeex we have done another 20 25% more capeex may come through over the next year or year and a half or so 26:49 26 minutes, 49 seconds but uh we we what we think we can highlight is that the bulk of the capeex is done and also having uh uh good 26:57 26 minutes, 57 seconds partners with us has reduced the capeex burden on us to some degree so that's the comment what I can offer on the 27:04 27 minutes, 4 seconds future capeex as far As GI is concerned, uh I think India will also see some capeex which we are finalizing. We are 27:12 27 minutes, 12 seconds looking at expanding a couple of our business capacities but that may be a little bit less significant uh in number 27:20 27 minutes, 20 seconds than the than even the Guinea business but we do feel that in Guinea most of our capex is on the way and that's why 27:26 27 minutes, 26 seconds we are focused on ramping up volumes. Uh your uh second question was on the cost 27:33 27 minutes, 33 seconds curve that where are we? I would like to think that probably we are somewhere we have uh you know between the two deposits probably we would be somewhere in the middle of the curve. 27:44 27 minutes, 44 seconds Okay. 27:44 27 minutes, 44 seconds I think that there are there are the what would your cost what would your cost be? 27:50 27 minutes, 50 seconds So I mean currently like we mentioned that the price was about $70 and our was $10. So about $60 would have been our 27:58 27 minutes, 58 seconds total cost CIF basis right. uh is that maybe almost the $25 would be the kind 28:05 28 minutes, 5 seconds of ocean freight. So balance is our cost in which the major cost really is the logistics. So mining cost is never much. 28:12 28 minutes, 12 seconds It's like two or $3 kind of a mining cost. 28:15 28 minutes, 15 seconds So and then there are also more about about $5 of government uh duties, taxes, royalty on the box side which we export 28:24 28 minutes, 24 seconds per ton bases etc. Um uh going forward we expect that uh you know so last quarter costing would have 28:33 28 minutes, 33 seconds been around 60 but you know going forward we think that okay there may be some reduction in our uh you know 28:39 28 minutes, 39 seconds operating costs or or or or uh you know other efficiencies which we expect because like we said we did only the 1.3 28:47 28 minutes, 47 seconds million in the last quarter. Assuming that we are able to ramp up the volumes what we are looking at some level of 28:54 28 minutes, 54 seconds cost should drop further what it may come in the next quarter that we'll have to see but we are confident of having costing below $60 definitely for the 29:03 29 minutes, 3 seconds next quarter uh as far as the cost curve is concerned I think that there are many there are mine owners there but 29:12 29 minutes, 12 seconds they have operating since many years so we have also got a advantage on the quality of our boxite having the new mine And you know one of our mines has a 29:21 29 minutes, 21 seconds really high quality box size. So when the pricing typically may drop like this. So our higher quality resources 29:29 29 minutes, 29 seconds and reserves would uh help us to uh you know offset some of that uh pricing impact also. So that is an advantage we have being a new player in Guinea that 29:38 29 minutes, 38 seconds uh we have the quite a high quality resources also with us in one of our locations. So I mean in all our locations but currently we are focusing 29:47 29 minutes, 47 seconds on one of them that okay that some of the shipment we can improve the quality and manage to even get a premium. 29:55 29 minutes, 55 seconds Fair and uh um in terms of exports from Guinea where do you usually sell to? 30:01 30 minutes, 1 second Just in terms of it's it's almost all to China. 30:05 30 minutes, 5 seconds Okay. All 100% to China. Okay fine. That is understood. And uh capex you said you're already done with Okay. 30:12 30 minutes, 12 seconds Fantastic. and take care done. Thank you so much. Thank you. Thank you. 30:18 30 minutes, 18 seconds Thank you. Our next question comes from the line of Surendra Kumar Kimka from Kima office. Please go ahead. 30:28 30 minutes, 28 seconds Hello. Yes. Hello. 30:32 30 minutes, 32 seconds Hello. Any disturbance in mining in Africa? I have reading a report that some disturbance going on in Ghana. So any in Guinea also? 30:43 30 minutes, 43 seconds Well, we actually mentioned that there some suspended mines has reopened. So I think that uh at least on the ground of it conditions are good for the mining activity. 30:53 30 minutes, 53 seconds Currently we don't see any kind of disturbances at at a at any major level. 30:59 30 minutes, 59 seconds No, no. You are saying that opening of the mine but I am saying that some minor closed in closing in Ghana for the 31:06 31 minutes, 6 seconds distantly in Guinea there is no such uh activity or that kind of response from the 31:13 31 minutes, 13 seconds government. Yeah. uh may I know that uh one one note we'd like to add that currently it's our uh feeling or our 31:22 31 minutes, 22 seconds view that the current government is uh quite uh stable and uh uh quite 31:28 31 minutes, 28 seconds proactive also. So uh we we we think that uh that at least the business environment is is is quite good. 31:38 31 minutes, 38 seconds Last in the last two three months the price of the aluminium has gone up but why the price of oxide is going down due to the over supply. 31:48 31 minutes, 48 seconds So as we mentioned that uh the the the point is the price of aluminium has gone up in part because there is some 31:55 31 minutes, 55 seconds restriction on the new capacities of smelters in China being one of the reasons and I think couple of other 32:01 32 minutes, 1 second reasons also highlighted uh by my dad on the on the call um which also includes 32:09 32 minutes, 9 seconds that we mentioned that couple of mines has opened up in Guinea which was suspended earlier. It's a mix of factors. However, uh yeah, we are 32:17 32 minutes, 17 seconds optimistic about price stabilizing and maybe gradually pulling upwards after maybe the Chinese New Year. 32:26 32 minutes, 26 seconds Thank you. 32:29 32 minutes, 29 seconds Thank you. Our next question comes from the line of Kitraati from NVS brokerage. 32:36 32 minutes, 36 seconds Please go ahead. 32:44 32 minutes, 44 seconds Ky, your line has been unmuted. Please go ahead with your question. 32:53 32 minutes, 53 seconds I think we can get back to her. Sure. 32:58 32 minutes, 58 seconds Our next question is from the line of Daisy Barocha from Sangi Family Office. Please go ahead. 33:06 33 minutes, 6 seconds Am I able? Yes. 33:10 33 minutes, 10 seconds So first my first question is China has imposed 45 aluminum 33:16 33 minutes, 16 seconds capacity. So so this policy on increment of animal production consequently on China's boxite consumption. So do you 33:26 33 minutes, 26 seconds see this acting as a structure handling the boxite prices over medium price? 33:32 33 minutes, 32 seconds So uh definitely there is a new normal for the time being. We see a couple of things which also mentioned earlier that 33:40 33 minutes, 40 seconds we see that many of the Chinese companies are looking at investing overseas for the smelter capacity. So 33:47 33 minutes, 47 seconds globally smelters may come up maybe you know in Middle East for example or uh 33:54 33 minutes, 54 seconds you know some of the other locations there may be a growth but we do think that the aluminium consumption we expect 34:02 34 minutes, 2 seconds that okay there may be a continuous growth in the consumption of aluminium and uh therefore the smelter capacities 34:09 34 minutes, 9 seconds will continue to grow but maybe the idea is that they may not grow in the for the time being in China 34:16 34 minutes, 16 seconds uh uh uh but we do think that outside of China we think that new capacities may come up. This is 34:23 34 minutes, 23 seconds this is our view. So it may be particularly we think in Middle East you may hear or see something uh soon. Uh as 34:31 34 minutes, 31 seconds far as the pricing is concerned yes for now this is a kind of new normal but we have to see that after the Chinese new year we are optimistic that there can be 34:40 34 minutes, 40 seconds some improvements. at the same time like we we are working on our cost structure to be able to be uh reasonably profitable at this levels also. 34:51 34 minutes, 51 seconds Okay. Thank you. My next my uh there is another question that the box size is recently corrected around $16 34:58 34 minutes, 58 seconds per turn in so what could be the driver for that and from current level how do you see pricing trends evolving like 35:06 35 minutes, 6 seconds what key demand supply dynamics that you could see we I think we've covered this couple of times on the call we mentioned the 35:15 35 minutes, 15 seconds resumption of mines and we also mentioned the temporary halt of increase in smelting capacity in China. Uh only I 35:23 35 minutes, 23 seconds think the comment is that we feel that that things may improve you know if there is some geopolitical stability and maybe you know after the Chinese new 35:32 35 minutes, 32 seconds year but I think we have already covered the reasons for the fall and also potential reasons for stabilization. So 35:40 35 minutes, 40 seconds I think uh we I don't think I have anything much new to add on that. Um I think we just want to wait for the you 35:48 35 minutes, 48 seconds know Chinese new year and see if there is some stabilization in this US China policy which will have uh some kind of 35:56 35 minutes, 56 seconds an impact on manufacturing industry in China. 36:00 36 minutes Okay. Okay. Thank you sir. And one last question sir. According to you what oxide size level would you consider the 36:07 36 minutes, 7 seconds business approaching economics like beyond what you would reassess your capital? I think that given that given 36:15 36 minutes, 15 seconds that this this price crash of boxite has happened probably within the last month and a half or or or so if you if you go 36:23 36 minutes, 23 seconds to see it's very early to comment on what would be the new normal. Uh however 36:30 36 minutes, 30 seconds we are optimistic that we don't think prices will go below this level. So I can at least offer that much that that 36:37 36 minutes, 37 seconds uh prices I don't think should go below the current levels. I do believe that this is some sort of a floor because we also see the costing of the other 36:45 36 minutes, 45 seconds companies uh who are working in Guinea and we think this is a good level for the stabilization. 36:52 36 minutes, 52 seconds Maybe in the near in the medium term I think a few dollars from here upwards could be the could be the new norm maybe 36:59 36 minutes, 59 seconds I mean we we we believe about 64 65 but nowadays commodity markets are quite difficult to predict as as I think world 37:07 37 minutes, 7 seconds over this is going on that there is a lot of volatility in all commodity prices but at least we feel that uh floor can be very close to where we are. 37:16 37 minutes, 16 seconds Okay. Thank you so much from Thank you ladies and gentlemen. In order to ensure 37:25 37 minutes, 25 seconds that management is able to address question from all the participants, please limit your questions to two per participant. 37:33 37 minutes, 33 seconds Our next question comes from the line of Pushkar Jen from Millie Capital. Please go ahead. 37:40 37 minutes, 40 seconds Hi sir, thanks for the opportunity. I just wanted to uh ask about the you mentioned that there are long-term 37:47 37 minutes, 47 seconds contracts with ocean vessels. So like what percentage of those are like fixed rate multi-year contracts versus how 37:54 37 minutes, 54 seconds much uh we remain exposed to you know boxside index or uh changes in the freight uh rates. So these are the these 38:03 38 minutes, 3 seconds are fixed uh in the sense that uh that we have a long-term agreement. uh when I 38:10 38 minutes, 10 seconds say long-term I think it's like 12 months okay not maybe uh 3 years or something but this long-term agreement 38:18 38 minutes, 18 seconds is giving us a edge in terms of the the rate maybe there may be some like variable with the price of the freight 38:26 38 minutes, 26 seconds index but it is basically at a rate lower than the market rate. So it will remain lower than the market rate but it 38:33 38 minutes, 33 seconds there may be obviously it will vary as per the market rate. Uh it vary as per the market rate but there is a uh some discount in this freight compared to the 38:41 38 minutes, 41 seconds going market rate. So this is giving us a significant support and this is also uh one of our at least a quite a lot of 38:49 38 minutes, 49 seconds our volume is covered under this contract. So uh while the rate will vary it is a uh below the index rate uh and 38:57 38 minutes, 57 seconds against that the the you know the shipping company is also getting a uh sustained business. So the agreement is 39:06 39 minutes, 6 seconds that uh you know the the volumes are committed the prices uh can move around but uh in in basic idea is that it will 39:14 39 minutes, 14 seconds be a little bit below the index price through the year. 39:17 39 minutes, 17 seconds Okay. So only if there is like huge fluctuation and that is a significant part of the significant part of our total uh 39:25 39 minutes, 25 seconds targeted business for next year uh is under this contract. So we will be having some advantage in freight compared to the market for this coming 39:33 39 minutes, 33 seconds year and that will also help us with our cost. 39:36 39 minutes, 36 seconds Okay but uh okay got got it. And second question is about the iron ore. Uh so what is the average content now of the or that is being currently extracted? 39:47 39 minutes, 47 seconds Correct. So basically we are supplying to the benification plant. So our grade is a very medium grade which is why it 39:55 39 minutes, 55 seconds requires a benification approximately we are around 45 to 50. 40:01 40 minutes, 1 second Okay. And uh but this is beneficable right like it's improvable. There are some iron or grades which are maybe higher but they they are not possible to 40:09 40 minutes, 9 seconds improve easily. Ours is fairly relatively easy to improve. So our uh I think focus would be on the volume. 40:16 40 minutes, 16 seconds There may be a recovery percentage or a yield percentage at the bification plant but the point is that all of it is 40:23 40 minutes, 23 seconds exportable only. There may be the few kilometers of distance where we may be sending some quantity to the to the 40:31 40 minutes, 31 seconds plant and over there there may be some yield but eventually all of this will be going as a really good quality iron or when it's exported. So while the quality 40:39 40 minutes, 39 seconds of bounds 45 to 50 but it is easily upgradable it crosses 6061 after bification. So it's just a the play on the yield. 40:50 40 minutes, 50 seconds Okay. And the volumes in FI27 we expect from iron or so we have not commented on that very consciously. We are still doing trials 40:59 40 minutes, 59 seconds to understand that you know what is the viability uh for the uh partner who we have on this project but we should be 41:07 41 minutes, 7 seconds able to comment on that at the end of this talk. 41:11 41 minutes, 11 seconds Thanks a lot. We are optimistic that this will be a re fairly substantial quantity even in the context of the 41:19 41 minutes, 19 seconds guinea business. But exact uh uh figures or in terms of what kind of volume target we can see I think we should be 41:27 41 minutes, 27 seconds able to definitely uh comment on that at the end of uh this quarter. All right. Thanks a lot. Thank you. 41:34 41 minutes, 34 seconds Thank you. Our next question comes from the line of UD Mittal from Mittal Family Office. Please go ahead. 41:43 41 minutes, 43 seconds Yeah. So I just wanted to understand uh are you facing any competition from the other players like are there any order cancellation or anything like that? 41:55 41 minutes, 55 seconds I want to take that they asking if there we they are saying that any order cancellation or heavy competition from the other. 42:03 42 minutes, 3 seconds Uh no not really there is no any order cancellation. Yeah. And u there's no 42:10 42 minutes, 10 seconds actually looking this thing there's no much uh new competition also you know there we have our volume we already have 42:19 42 minutes, 19 seconds our customers for that only the price to be negotiated on basis of the index price. So uh do not much concern about 42:29 42 minutes, 29 seconds the volume which we were able to achieve and the price also it's definitely has linked with the index. Yeah. So uh I we 42:39 42 minutes, 39 seconds don't see that there will be any impact of the cancellation of business or or uh any any stringent uh competition. 42:49 42 minutes, 49 seconds Uh and are the customers delaying the contract or something like that due to the price fall? 42:55 42 minutes, 55 seconds Uh not really not really. See if you if you ask me then it it would be China is 43:02 43 minutes, 2 seconds being the largest importer of boxite in the world and sometime you know it it's been some kind of mutual understanding 43:11 43 minutes, 11 seconds among the uh customers or among the receivers to to play some some kind of 43:19 43 minutes, 19 seconds uh strategy to maintain the price because one time the boxite price has touched $120. $20 also. So now it is 43:29 43 minutes, 29 seconds some understanding among the major producers or something. So, so that uh 43:36 43 minutes, 36 seconds uh they they try to control it but there is no they they also understand that the cost structures they are very familiar 43:43 43 minutes, 43 seconds with the the operations in Guinea you know so there is no much impact on this thing and I we as Manan mentioned that 43:50 43 minutes, 50 seconds it is already a floor it's it's not going to be you know below this kind of numbers okay thank you so much 43:59 43 minutes, 59 seconds thank you ladies and gentlemen in the interest of line. Please limit your questions to one per participant. If you 44:06 44 minutes, 6 seconds have more questions, please rejoin the queue. 44:10 44 minutes, 10 seconds Our next question is from the line of Verdaman Sanji from AVS group. Please go ahead. 44:17 44 minutes, 17 seconds Uh, hi sir. What is your uh your floor level below which you need to reconsider the production volumes? 44:25 44 minutes, 25 seconds Yes. So that what is our floor price at which we may choose to like not operate if it goes say below $50 or 44:32 44 minutes, 32 seconds Yeah. Yeah. If it is below $52 maybe then then uh we have to reconsider our stand otherwise uh we will will be very comfortable uh till that number. 44:45 44 minutes, 45 seconds Uh so because you know there is a different kind of uh situation uh one of 44:52 44 minutes, 52 seconds our uh mining concession is very close to the port where the viability at le 44:59 44 minutes, 59 seconds price is also possible and one concession is slightly away from the port. So when we have to decide that uh what kind of compositions or we have to 45:08 45 minutes, 8 seconds or or to product mix we have to do otherwise viability yeah the the business viability below 52 is definitely a concern. 45:20 45 minutes, 20 seconds All right. So we have we I just want to share add on that that we do have you know some uh ability to mitigate this 45:28 45 minutes, 28 seconds like whether it is through the uh freight uh or it is through the managing the you know we have the two current 45:36 45 minutes, 36 seconds active resources by managing the distribution between the resources which we have. We also have a scope of you know improving the quality to get the 45:45 45 minutes, 45 seconds premium over the market price. So it is uh while I understand that optically okay the price drop is is is is is very 45:53 45 minutes, 53 seconds significant but company does have the tools and we are today backed by the very large amount of resource and reserves. So it does give us the ability 46:02 46 minutes, 2 seconds to tide out certain such phases uh even even like like my father mentioned at 46:08 46 minutes, 8 seconds lower prices. We do have some tools and the other thing we would like to mention is that Ashapura group has been in the 46:16 46 minutes, 16 seconds boxite business as such for over 20 years now. So we also have a good relationships with many of these customers. So things like you know 46:25 46 minutes, 25 seconds cancelling the order or trying to do a too much of a unnecessary uh tactics or negotiation this kind of 46:33 46 minutes, 33 seconds situation you know we are even if we will do 15 million tons or something so we will still be about 8 10% of the 46:41 46 minutes, 41 seconds China's boxite import. So we are uh you know uh quite uh confident that you know in this kind of period also we should 46:49 46 minutes, 49 seconds able to maintain our volume plan and uh you know we we we do have some of the tools to mitigate to some extent the uh you know the the lower prices of boxite. 47:02 47 minutes, 2 seconds Okay. So just consider suppose general box at price of 60 and you told we have premium quality boxite. So if you can quantify that premium quality is selling at 63 or 65 what premium? 47:13 47 minutes, 13 seconds So typically it would be anywhere between a dollar to25 depending on how much premium we are offering uh over the over the index 47:22 47 minutes, 22 seconds aluminum. So that's depends on that. So but it can be not it's not going to be like $5 or something but it can be up up to a $25 is possible uh what we can get. 47:34 47 minutes, 34 seconds All right. So with the port upgradations and everything. 47:37 47 minutes, 37 seconds No, I I mean I think we can pause this question. I mean uh but uh because the general comment is there probably but uh 47:46 47 minutes, 46 seconds just last question from my side. Uh so like we have one source country uh like and we have one customer country is 47:52 47 minutes, 52 seconds China. So over the years are we looking for any significant diversion in terms of product mix or geographical mix? 48:00 48 minutes I think that we are open uh we are definitely open and we do have a lot of studies also but currently as on today 48:08 48 minutes, 8 seconds it is entirely based on the majorly based on the China but we are open are we looking we can't see like like we mentioned 48:17 48 minutes, 17 seconds maybe something may come up in middle east even in India there may be some significant requirement Canada also has got something now US also want to 48:25 48 minutes, 25 seconds restart all these locations may still see I know that there are locations nearby but there there may be some that 48:31 48 minutes, 31 seconds it's too early to comment but maybe once we reach a certain amount of boxite as well in other products are you limited 48:39 48 minutes, 39 seconds iron or for the time being I can comment on iron or we do study things time to time but our commercial interest currently is limited to boxite and iron 48:47 48 minutes, 47 seconds or in all right and when the aluminina players like ramping up the capacity 48:54 48 minutes, 54 seconds from China outside China by which year we can But I think uh currently 49:02 49 minutes, 2 seconds it already started in Indonesia. They have started some activities in Middle East. 49:08 49 minutes, 8 seconds So yeah as as my father mentioned you all got that is Indonesia and Middle East certain uh you know we are seeing 49:15 49 minutes, 15 seconds some activity but the point is that fundamentally the smelter capacity needs to come up. The refinery capacity is 49:22 49 minutes, 22 seconds available. So the smelter capacity would collapse you mentioned. Okay. Uh yeah. So we 49:30 49 minutes, 30 seconds think that yeah we should expect maybe over a couple of years something to either come up in Indonesia, Malaysia or Middle East. That's what we are looking at at least the power. 49:40 49 minutes, 40 seconds Yeah, Middle East has certain pockets. 49:42 49 minutes, 42 seconds It has a very low power cost which could make it the ideal uh location for having a smelter which consumes lot of power per ton of aluminium production. 49:55 49 minutes, 55 seconds All right. Thank you. Thank you. 49:59 49 minutes, 59 seconds Thank you. Our next question comes from the line of Kitraati from NBS brokerage. 50:06 50 minutes, 6 seconds Please go ahead. Hello. 50:13 50 minutes, 13 seconds Yeah. Hello. Yeah. Uh can you uh this is Nalin Sha from NBS brokerage. Can you tell us this? Uh I think in the current 50:22 50 minutes, 22 seconds 9 months we have done about 4.77 million uh export uh considering you know I mean 50:29 50 minutes, 29 seconds the fourth quarter is likely to be I think much much better. Can you tell us that what is the target for the current 50:36 50 minutes, 36 seconds year uh total exports? Uh you also mentioned about 2728 to be 15 million tons. So what will be the target for the 2627 next year? 50:49 50 minutes, 49 seconds So good. Uh thank you Nalin. Uh basically I think for quarter 4 at least what I can comment is that we expect it 50:56 50 minutes, 56 seconds to be a record quarter for us as a as from a guinea quarterly export point of view. exact number 51:03 51 minutes, 3 seconds uh would refrain to share and like I mentioned we see a linear linear progression that okay so I think 51:11 51 minutes, 11 seconds that it would be that okay 15 million being year after next next year would be somewhere around would be somewhere halfway between this year and 15 so 51:20 51 minutes, 20 seconds wherever we close we can we put around say 11 and a half 12 million uh yeah we hope so we we we even hope 51:28 51 minutes, 28 seconds for more but I'll not be in a position to say anything but we are internally very aggressive uh you know for for for 51:35 51 minutes, 35 seconds for ramping up in this this basically for us the quarter four and quarter one are the best quarter so our entire focus 51:42 51 minutes, 42 seconds is on execution and volume yeah wonderful wonderful once again congratulations for doing wonderfully well 51:50 51 minutes, 50 seconds thank you thank you thank you our next question comes from the line of Samir Patel from Savvi 51:58 51 minutes, 58 seconds capital please go ahead Yeah. Hi. Uh I just wanted to touch upon the debt uh part. You said your most of 52:07 52 minutes, 7 seconds your capex is done uh in Gene. So how do you see the debt over the next two years? 52:13 52 minutes, 13 seconds We expect uh at least that the the debt is close to its peak or at at peak really. uh we however uh in the interest 52:22 52 minutes, 22 seconds of growing the business we may take little bit of time before we gradually start to retire the debt because as the volume grows so will the working capital 52:30 52 minutes, 30 seconds needs and like we mentioned still there is a 20 25% cipex left over uh while we may be able to manage that entirely from 52:37 52 minutes, 37 seconds internal approval we do think we are close to our peak debt and uh definitely we might be here for some time but uh we 52:46 52 minutes, 46 seconds expect maybe that after a year or so for gradu ually we can start reducing the debt but uh currently we don't see the 52:53 52 minutes, 53 seconds addition of debt uh at least as as of now I I I don't foresee that there will be a further addition of debt 53:01 53 minutes, 1 second okay good thanks so much thank you 53:09 53 minutes, 9 seconds ladies and gentlemen please limit your questions to one per participant next question comes from the line of CA 53:17 53 minutes, 17 seconds Amitesh Mandovra from Amitesh Mandovra in company. Please go ahead. 53:25 53 minutes, 25 seconds Hello. Thank you for this opportunity. Man, I have one question for you. Mhm. 53:30 53 minutes, 30 seconds Given the current aluminium prices and China demand trend, do you expect aluminia producers to restock the boxite inventories once again? Has there been 53:39 53 minutes, 39 seconds any notable aluminia cap capacity expansion or ramp up in China or globally? 53:45 53 minutes, 45 seconds Uh currently my impression of the inventory levels of boxite in China is that while the prices of boxite are lower, we we we see that inventory is 53:54 53 minutes, 54 seconds more or less not increased significantly or there is a pile of stock or something like that. We think inventory is close 54:02 54 minutes, 2 seconds to its uh you know regular levels is is is is what it is currently is alltime low. 54:10 54 minutes, 10 seconds You can mention that. Yeah. 54:11 54 minutes, 11 seconds Yeah. the inventory in China at at the moment is alltime low you know so Chinese will start the buying the you 54:19 54 minutes, 19 seconds know having new inquiries or new business after that they're all waiting for the this spring festival uh after 54:26 54 minutes, 26 seconds the Chinese New Year because the last information is that this inventory level at Chinese is alltime low at the moment 54:36 54 minutes, 36 seconds okay even I have the same information that is why I'm asking do you expect aluminium producer to restock boxside inventory in coming uh quarter. 54:46 54 minutes, 46 seconds Yeah. Yeah. Certainly you know this is the I I as I mentioned earlier there's also some kind of strategic planning by 54:54 54 minutes, 54 seconds the large producers. Yeah. Now again they have to improve the inventory because normally you know they should have the inventory for minimum minimum 55:03 55 minutes, 3 seconds period of 4 months of their production because any any any kind of event can 55:10 55 minutes, 10 seconds happen political uh yeah geopolitical or some kind of uh yeah climatic many many 55:19 55 minutes, 19 seconds changes can happen. So they normally because you know aluminina refinery is such that it is a continuous process 55:27 55 minutes, 27 seconds industries where you cannot afford to stop for few days and you restart and all the restarting cost is so high 55:35 55 minutes, 35 seconds that's why they are very very particular and very clear about having the sufficient inventory to meet all these challenges. 55:45 55 minutes, 45 seconds Okay. And do your long-term contracts include any base or floor price to protect the protect against this current uh spot price correction in walkside? 55:54 55 minutes, 54 seconds We have we are linked to the index. Okay. Yeah. 56:02 56 minutes, 2 seconds Thank you. Thank you. 56:05 56 minutes, 5 seconds Thank you. Our next question comes from the line of Kish from Mangal Kesha. Please go ahead. 56:13 56 minutes, 13 seconds Uh hello. Good afternoon. uh it was it was great set of numbers. I just have a question on the Indian business. Uh as 56:20 56 minutes, 20 seconds Indian business has been has given us support when box prices remain volatile, Indian business can on a consolidated 56:27 56 minutes, 27 seconds level give supports to the overall business and as there asset input cost increase over this quarter. how does the 56:36 56 minutes, 36 seconds Indian business uh looks forward and if uh in the next coming quarters if it can give some support if there could be a headwinds in the box business. 56:48 56 minutes, 48 seconds So the question I assume is just on the outlook of the Indian business and its consistency to be maintained. I I am 56:55 56 minutes, 55 seconds genuinely quite excited about our uh Indian business uh from a medium-term 57:02 57 minutes, 2 seconds even not long-term but even medium-term endpoint as we are bringing in many new products uh uh you know and we are uh 57:10 57 minutes, 10 seconds you know just bringing many of these products to commercialize uh and uh gradually I do think that uh India will 57:18 57 minutes, 18 seconds remain kind of a business where we continue to add value uh and improve the sales work on the import substitute or 57:25 57 minutes, 25 seconds the kind of products where the technology is very limited in India. Uh and over the long term we do see you know even on the cost side we are taking 57:33 57 minutes, 33 seconds a many initiatives uh to continuously reduce the cost. So I think the fact remains that uh Ashapura group has seen 57:42 57 minutes, 42 seconds uh lot of volatility uh in the box side business but our Indian business has always been a source of strength uh uh 57:50 57 minutes, 50 seconds and consolidation for us and not only will that maintain but it will also grow quite significantly over the next two to 57:57 57 minutes, 57 seconds three years. Uh 57:59 57 minutes, 59 seconds [clears throat] 57:59 57 minutes, 59 seconds uh it it just so happens that because Guinea is a large part of our consolidated turnover. So sometimes the 58:06 58 minutes, 6 seconds visibility remains limited but I am very bullish uh on our positioning our products and our future product pipeline. Yeah. 58:15 58 minutes, 15 seconds So the input cost which we have faced recently would somewhat mitigate over the coming years. 58:21 58 minutes, 21 seconds Yeah. Yes. Uh yes we are we are working on lowering our specific consumption creating uh alternate sources and 58:30 58 minutes, 30 seconds creating far value added products which can absorb some of this cost. Of course uh yes the manufacturing as a business in general don't have the overnight kind 58:39 58 minutes, 39 seconds of a uh improvements in in this thing but over the long term India will remain very very strong pillar for the company. 58:48 58 minutes, 48 seconds Okay. Thank you sir. Thank you. 58:52 58 minutes, 52 seconds Thank you. Our next question is from the line of Kush Bafna from Bafna brothers finance and property agent. Please go ahead. 59:01 59 minutes, 1 second Thank you sir for this opportunity and congratulations on a completion. Um so I have a couple of questions. 59:07 59 minutes, 7 seconds First was that uh you have mentioned the Indian business uh uh has suffered due to increase in lower margin uh products. 59:15 59 minutes, 15 seconds So can you throw some light on the same uh I I know that you mentioned on excess cost but also lower margin increase in Indian business. 59:23 59 minutes, 23 seconds Yeah. So we have a basically a product portfolio which caters to about 10 industries. So we have the four major 59:29 59 minutes, 29 seconds verticles in our businesses both through uh shareholding and directly operating in the standalone company. And across 59:37 59 minutes, 37 seconds this even at the very major level we have about 40 50 different types of products which we sell across uh you 59:44 59 minutes, 44 seconds know paint, paper, edible oil uh you know crude oil, steel, non-ferris metals 59:52 59 minutes, 52 seconds uh construction, foundaries etc. So it so happens that that we had a lot more of a lower value shipments also you know 1:00:02 1 hour, 2 seconds like kind of some some kind of a bulk businesses etc in a couple of our businesses and uh maybe the higher value 1:00:09 1 hour, 9 seconds products has had a little bit of a lower shipment so not in full but definitely to some extent if I see the lower AIDA 1:00:17 1 hour, 17 seconds or the or the lower uh you know results compared to previous quarter at least I would say that uh 30% % of that I'm just 1:00:26 1 hour, 26 seconds giving a kind of approximate number would be also because the matrixes change and then I think that this over the year this things also sometimes 1:00:34 1 hour, 34 seconds averages out that the you know some quarters goes better and some quarters goes the in terms of the matrix and some 1:00:41 1 hour, 41 seconds quarters goes this thing today and unfortunately in terms of from an investor standpoint we are catering to so many different industries that to 1:00:48 1 hour, 48 seconds highlight the every industry specific performance gets difficult but uh matrix is something I think it evens out over 1:00:57 1 hour, 57 seconds the years structurally. I don't think that that matrix will be permanently like okay that the lower margin products will come up cost increases yes of 1:01:04 1 hour, 1 minute, 4 seconds course more critical uh we are working on strategy like I think earlier we announced that two of our mines had come 1:01:12 1 hour, 1 minute, 12 seconds into operation this this kind of also activities reduces our cost as we improve our integration so further such 1:01:19 1 hour, 1 minute, 19 seconds things are happening and we'll be happy to share it with you as it happens but we have to definitely work on uh you 1:01:26 1 hour, 1 minute, 26 seconds know our our cost related uh part and we are focused on it to to to improve that. 1:01:32 1 hour, 1 minute, 32 seconds Yeah, thank you. And uh one more question sir. 1:01:36 1 hour, 1 minute, 36 seconds Uh this was regarding the related party exposure. I think uh more than 70% of our loans and advances and around 71% of our investments are to related parties. 1:01:45 1 hour, 1 minute, 45 seconds They have their own auditors uh and some of them some of the subsidies have been making. Could you throw some light on the same? I think uh Ashishwa can 1:01:54 1 hour, 1 minute, 54 seconds comment and then if required we can comment further. 1:02:02 1 hour, 2 minutes, 2 seconds Yeah, you're right. I mean related party transactions are there but uh be assured I mean it's all within limit and with 1:02:11 1 hour, 2 minutes, 11 seconds prior approval of the board shareholders wherever it is required and wherever it is operation need to do that 1:02:19 1 hour, 2 minutes, 19 seconds transaction. So loans and advanc is also well within the limit and uh it's complied by each and every law which we 1:02:27 1 hour, 2 minutes, 27 seconds are supposed to just just operationally also today you can see that uh which is publicly declared information that we 1:02:36 1 hour, 2 minutes, 36 seconds have a holding structure for our guinea business involves you know subsidiaries from India to UAE and then from UAE 1:02:43 1 hour, 2 minutes, 43 seconds onwards to Guinea. This is a well we have fairly disclosed this thing. It's quite well known. So obviously there are 1:02:50 1 hour, 2 minutes, 50 seconds structure wherein you know there is some activity which happens from India to UAE to Guinea even though it is 100% held by 1:02:57 1 hour, 2 minutes, 57 seconds Ashapura and then vicea versa. So even to give you an example lot of purchases you know of of materials like capeex and 1:03:06 1 hour, 3 minutes, 6 seconds engineering items happens to India which eventually reaches Guinea and things like this. So there are many transactions required uh you know to to 1:03:15 1 hour, 3 minutes, 15 seconds support the business but these are ultimately consolidated many of them most of them within the group itself and most of them with the 1:03:24 1 hour, 3 minutes, 24 seconds 100% subsidiaries or the wellestablished subsidiaries with the arms length and relevant documentation etc. So uh there 1:03:32 1 hour, 3 minutes, 32 seconds this is a more like the nature of the structure rather than anything else. So you yeah you can rest assured uh that uh 1:03:41 1 hour, 3 minutes, 41 seconds it's well well within the you know requirement uh and it's only because of the requirement of the business and the business structure which we carry. 1:03:51 1 hour, 3 minutes, 51 seconds Right sir thank you for clarifying that and wishing you all the best for record quarter next year. Thank you. Thank you so much Push. Thank you. 1:03:59 1 hour, 3 minutes, 59 seconds Thank you. Our next question is from the line of Pranjent an individual investor. Please go ahead. 1:04:15 1 hour, 4 minutes, 15 seconds I think we can move forward. Yeah. 1:04:19 1 hour, 4 minutes, 19 seconds Our next question is from the line of Prasad Canodia, an individual investor. Please go ahead. 1:04:31 1 hour, 4 minutes, 31 seconds Mr. Canodoria, your line has been unmuted. Please go ahead with your question. 1:04:40 1 hour, 4 minutes, 40 seconds Sir, as there is no response, can we conclude? Yes. 1:04:47 1 hour, 4 minutes, 47 seconds I would now like to hand the conference over to Mr. Chetan Sha for closing comments. Over to you sir. 1:04:54 1 hour, 4 minutes, 54 seconds So I can uh discuss the closing comments. uh just that we would like to say that yes the uh in for the guinea 1:05:02 1 hour, 5 minutes, 2 seconds business the boxite pricing has been a setback but the company remains confident to tie through this time with variety of initiatives and options at 1:05:10 1 hour, 5 minutes, 10 seconds its hand. We are also fundamentally optimistic about the nature of the business and that gradually we do expect a price recovery as well. 1:05:20 1 hour, 5 minutes, 20 seconds you would like to add that I have a question. Sure. 1:05:24 1 hour, 5 minutes, 24 seconds Sure. See all all my friends and stakeholders, you know, I'd like to tell you that this business, you know, like 1:05:31 1 hour, 5 minutes, 31 seconds the this reserves, the boxite reserves is is last for 50 years. Okay. 1:05:37 1 hour, 5 minutes, 37 seconds And and we look at the quarter on quarter, they will give you a fair picture and sometime unfair pictures. So 1:05:44 1 hour, 5 minutes, 44 seconds we we want to see that how best we utilize our uh resources and how best we 1:05:51 1 hour, 5 minutes, 51 seconds can we can bring into the uh you know effective uh business. So this is what we are 1:05:59 1 hour, 5 minutes, 59 seconds planning this thing. Yeah, it it's going to happen you know that's now lot of climatic changes the geopolitical 1:06:06 1 hour, 6 minutes, 6 seconds instability uh but the demand of this minerals or demand of the ultimate the metals is 1:06:13 1 hour, 6 minutes, 13 seconds going to remain very high it's the aluminum metal per se is is going on CAGR of the 7% and it's going to go much 1:06:23 1 hour, 6 minutes, 23 seconds higher than that because once the more and more EV production will happen that will attract the consump ion aerospace 1:06:31 1 hour, 6 minutes, 31 seconds the defense and many other areas you know this metal is going to have a long-term future so I I have only simple 1:06:41 1 hour, 6 minutes, 41 seconds things to say to all of you is that we have to see the a long-term perspective 1:06:47 1 hour, 6 minutes, 47 seconds of this witness not uh on basically on quarter on quarter however we appreciate 1:06:55 1 hour, 6 minutes, 55 seconds your interest we appreciate your concern about the ashapura and and it gives us a lot of motivations and encouragement you 1:07:03 1 hour, 7 minutes, 3 seconds know to improve on our performance and uh to keep you in touch. Thank you very much all of you. Thank you. 1:07:13 1 hour, 7 minutes, 13 seconds Yeah, thanks everyone. Thank you everyone. 1:07:17 1 hour, 7 minutes, 17 seconds Thanks a lot and looking forward to meeting you all again after 3 months. 1:07:23 1 hour, 7 minutes, 23 seconds Thank you on behalf of Ashakura Mind Cam Limited. That concludes this conference. 1:07:29 1 hour, 7 minutes, 29 seconds Thank you for joining us and you may now disconnect your lines.