Godawari Power And Ispat limited — Q3 FY26

Godawari Power And Ispat Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7071LbL7soU Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Gdavri Power and Espat Limited Q3 FI26 earnings conference call 0:08 8 seconds hosted by Go India Advisors LLP. As a reminder, all participants client will be in listenonly mode and there will be 0:15 15 seconds an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an 0:23 23 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand over the conference to Miss Sana 0:31 31 seconds Kapoor from Go India Advisors. Thank you and over to you ma'am. Thank you PI. Good afternoon everyone. 0:40 40 seconds It's my pleasure to welcome you on behalf of Godavry Power and Mispad Limited. Thank you for joining us today 0:46 46 seconds for the Q3 and 9month FI26 earnings call. Please note that today's discussion may include certain forward-looking statements and must be 0:56 56 seconds therefore viewed in conjunction with the risks that the company faces. We are joined today by Mr. Abhishek Agraal, 1:02 1 minute, 2 seconds executive director, Mr. Dh Gandhi, executive director and Mr. Sanjay Bhotra, chief financial officer. May I 1:10 1 minute, 10 seconds now invite Mr. Dh Gandhi to present the company's business outlook and performance after which we will open the floor for Q&A. Thank you and over to you sir. 1:21 1 minute, 21 seconds Thank you Sana. Good afternoon everyone. 1:24 1 minute, 24 seconds Thank you for joining us today on this call. Our financial results and earning presentations are available on our 1:31 1 minute, 31 seconds website as well as on the stock exchange. I believe that you had a chance to review them. I will brief uh 1:38 1 minute, 38 seconds take you through the results uh post which we can have a call session answer session. I am pleased to share that 9 1:46 1 minute, 46 seconds months FI26 marked an steady performance with slight decline in revenue across operational and financial front revenue 1:54 1 minute, 54 seconds remained uh you know stable with slight decline IATA and paid margin stood strong at 22% and 14% respectively 2:03 2 minutes, 3 seconds despite softer reposition operating momentum remained strong in Q3 FI26 on Y basis with iron or mining 2:12 2 minutes, 12 seconds production increasing 46 6% while Ron or pellet and value added product remained steady growth pallet sales temporarily 2:20 2 minutes, 20 seconds declined during uh Q3 FY26 on account of accident in the pellet plant in uh end 2:28 2 minutes, 28 seconds of September 25 which impacted uh you know production and sales volume during Q3 whereas value added steel products 2:36 2 minutes, 36 seconds sales grew 15% YI realization for Yih you know uh and quarter soften across 2:44 2 minutes, 44 seconds almost all product categories except hair always and galvanized product in Q3 on year bases basis a beta margin 2:52 2 minutes, 52 seconds expanded to 20% from 17% in Q3 FI25 despite a marginal decline in 2:59 2 minutes, 59 seconds realization and you know pate volumes on a quarteronquarter basis sales beta and paid moderated largely due to lower 3:07 3 minutes, 7 seconds pellet sales volume and softer realization for intermediate and finished productist Understanding these challenges, margin remained resilient 3:14 3 minutes, 14 seconds with IBIT and paid margin sustained at 20% and 13% respectively reflecting companies strong operational efficiency 3:22 3 minutes, 22 seconds and margin stability. Q3 uh you know during 9 months production volume uh showed healthy growth with iron or 3:31 3 minutes, 31 seconds mining and pallet increasing by 27% and 10% respectively while eduated product remained uh largely stable with modest 3:39 3 minutes, 39 seconds 4% growth. On sales front pallet find increase of 17% whereas it was slight 3:46 3 minutes, 46 seconds dip of 3% on value added product. Coming on consolidated permanential performance for 9 months revenue dipped slightly on 3:54 3 minutes, 54 seconds account of softer realization which were to some extent offset by higher production and uh sales of pallet 4:01 4 minutes, 1 second galvanized fabricated product and r structural product. 4:07 4 minutes, 7 seconds uh ieta and pet were you know lower primarily due to decline in sales ilization still ITA and pet margins 4:16 4 minutes, 16 seconds remain strong at 22% and 14% respectively uh now coming on uh company's growth 4:25 4 minutes, 25 seconds plan uh and uh the updates during 9 months uh of the current financial year 4:32 4 minutes, 32 seconds uh I am happy to announce that GPL has received much awaited environment clearance from ministry of environment, forest and climate change for more than doubling 4:41 4 minutes, 41 seconds the iron or mining capacity of Ariong mine uh from 2.35 million to 6 million t. The consent to operate is expected to 4:49 4 minutes, 49 seconds be received in few days following which commercial operations of the Aronor mining and ramp up capacity will start 4:58 4 minutes, 58 seconds uh hopefully you know during the current month itself. This marks a significant milestone in strengthening GPL rail 5:06 5 minutes, 6 seconds security backward integration while zon forcing is long-term visibility and competitive positioning. 5:15 5 minutes, 15 seconds Uh you know uh uh environment clearance and consent to establish for 5.4 4 million ton crutching and benification 5:23 5 minutes, 23 seconds plant has also been received and we expect to complete the work for benification plant uh by end of fi Q2 5:31 5 minutes, 31 seconds fi27. I'm pleased to highlight that additional 2 million ton RNR pilot plant has commissioned uh and operations 5:40 5 minutes, 40 seconds commenced in December 25 with commissioning of GPI total plet manufacturing uh capacity 5:47 5 minutes, 47 seconds uh uh to more than 7 uh 1.7 times uh 1.7 times from 2.7 million to 4.7 million 5:56 5 minutes, 56 seconds trening its uh integrated operation and supporting future growth. 6:03 6 minutes, 3 seconds This achievements will drive volume and profitability growth in FI27. 6:10 6 minutes, 10 seconds Progress on 7 million ton CRM complex remain on track with land acquisition completed. 6:17 6 minutes, 17 seconds Major equipment order finalized and bank funding secured. Construction will begin in April 2026. Commissioning targeted for March 27. 6:28 6 minutes, 28 seconds GPAL is also expanding its solar captive solar capacity by over three times from 165 megawatt current to 540 megawatt to 6:37 6 minutes, 37 seconds support captive consumption across Ron or mine integrated steel plant and CRM operations. Land acquisition for solar 6:44 6 minutes, 44 seconds expansion has been completed. Execution is currently underway and these projects are expected to be completed in phased 6:51 6 minutes, 51 seconds manner beginning from March 27 to March March 26 to March 27. 6:58 6 minutes, 58 seconds In order to operate these projects uh in more efficient manner and save on the cost of banking uh the company has 7:05 7 minutes, 5 seconds recently decided to set up an battery energy storage capacity of 45 megawatt hour in one of the solar project uh to 7:13 7 minutes, 13 seconds meet the power requirement of captive aronor mine where grit is highest at about 11 per unit. 7:21 7 minutes, 21 seconds uh these equipments uh which are being ordered uh will be the you know uh the same uh uh uh composition which our base 7:30 7 minutes, 30 seconds manufacturing facility will uh you know commence over a period of next one year. 7:35 7 minutes, 35 seconds Additionally, as you are aware, company has decided to venture into manufacturing of battery energy storage system with an initial capacity of 20 7:43 7 minutes, 43 seconds gawatt with a capex of 1,025 crores during 2026 27 and commissioning of base 7:51 7 minutes, 51 seconds project is targeted for Q4 FI27. The decision to take up base project with a capacity of 20 gawatt is driven by 7:58 7 minutes, 58 seconds availability of single line 20 gawatt manufacturing line which enables better land utilization structural uh you know 8:08 8 minutes, 8 seconds lower structural and operating cost improved manufacturing efficiencies and supporting higher operating margins as a 8:15 8 minutes, 15 seconds part of company's ongoing uh efforts to simplify and streamline group structure. 8:21 8 minutes, 21 seconds The board has approved this investment of this entire 27 uh 37.85% 8:28 8 minutes, 28 seconds stake in a dentist steel which operates a merchant iron or pellet plant. Uh you know this uh this stake is uh is being 8:37 8 minutes, 37 seconds divested for a approximate value of 91 crores. This transaction is expected to be completed by March 26. 8:48 8 minutes, 48 seconds Coming on the ESG you know up front the company has completed major initiative under its energy efficiency 8:54 8 minutes, 54 seconds decarbonization project resulting in higher average DRA production increased daily stream generation the company 9:01 9 minutes, 1 second achieved a score of 76.6 from K ESG rating agency reflecting its recognition as an industry leader with strong ESG 9:10 9 minutes, 10 seconds risk management and performance. The company continues to make steady progress towards his long-term goal of 9:17 9 minutes, 17 seconds achieving net zerocarbon emission by 2015. 9:23 9 minutes, 23 seconds Coming on the market outlook on international front global RNO prices remained rangebound uh you know during 9:31 9 minutes, 31 seconds FI20 during calendar 26 uh at USD95 to $110 range and currently uh is stood at 9:39 9 minutes, 39 seconds about $102 supported in H1 by weather related production losses. However, rising 9:46 9 minutes, 46 seconds supply is likely to keep the prices going forward. China's steel consumption has officially picked and is expected to 9:54 9 minutes, 54 seconds gradually decline although recent stimulus measures including direct cash transfer should provide uh near-term 10:02 10 minutes, 2 seconds demand support. Global RNR market is at an inflection point with an supply edition such as Genova's Shimandu 10:11 10 minutes, 11 seconds project commencing operation in November 25 and expected to export 5 to 10 million tin uh calendar 26. Full ramp up 10:20 10 minutes, 20 seconds will start take you know is expected to take longer. Ronor prices in 2026 are expected to be rangebound uh averaging 10:29 10 minutes, 29 seconds around $100. On domestic fund, NMDC RNR prices have remained largely uh 10:36 10 minutes, 36 seconds rangebound at 4,500 to 5,500 excluding seasonal fluctuation. Current prices at 3,900 10:43 10 minutes, 43 seconds lift the revised structure with statutory levies excluded from January 2026. Pallet prices have uh tracked a 10:53 10 minutes, 53 seconds similar trend trading at about 8,500 to 10,000 uh during uh calendar 26 with 11:00 11 minutes current prices at around 10,000 uh uh rupees a ton uh which is expected to remain stable during FI26. India's steel 11:09 11 minutes, 9 seconds demand is expected to grow steady through uh uh the uh calendar 26 supported by infrastructure growth with 11:18 11 minutes, 18 seconds budget 26 allocating 12.2 lakh cr towards infrastructure capex providing strong demand visibility. We believe 11:26 11 minutes, 26 seconds that RNOR demand in India is expected to remain strong in view of demand growth from newly commissioned and ongoing 11:33 11 minutes, 33 seconds projects with imposition of safeguard duty. The prices of finished and intermediate products across value chain have risen by 5 to 10% which is expected 11:43 11 minutes, 43 seconds to support profitability in 2026 and onward. 11:48 11 minutes, 48 seconds In conclusion, leveraging competitive strength of captive RNO strength position and ongoing capacity expansion, 11:55 11 minutes, 55 seconds company is strongly positioned to deliver sustained growth, value creation underpinned by efficiency gain, solar 12:03 12 minutes, 3 seconds cost optimization and firm commitment to ESG. 12:08 12 minutes, 8 seconds With this uh we can open the floor for Q&A. Thank you all. 12:13 12 minutes, 13 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone tele. 12:23 12 minutes, 23 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 12:30 12 minutes, 30 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question question assembles. 12:44 12 minutes, 44 seconds The first question is from the line of Siddhart from Eekious. Please go ahead. 12:50 12 minutes, 50 seconds Hi sir. Uh so the first question is on the capeex. So how should one think about the capeex over the next 3 years? 12:57 12 minutes, 57 seconds What would be the cash outflow over 26 27 and 28? 13:03 13 minutes, 3 seconds Uh see our capeex till now is finalized till end of fi 27. uh like the capex in 13:13 13 minutes, 13 seconds solar uh to reach a capacity of close to about 500 megawatt plus base in CRM. All these projects we are expecting to 13:21 13 minutes, 21 seconds commission by March 27 and uh beyond which we have not yet announced any 13:28 13 minutes, 28 seconds further capex. So our capex in the next fun year of course is an heavy capex uh but with our strong balance sheet of 13:37 13 minutes, 37 seconds around 10,000 uh 1,000 cr of cash reserve and uh dead tie up for the upcoming project except base u you know 13:47 13 minutes, 47 seconds we are fully tied up with requirement of our cash flow for fi27 13:55 13 minutes, 55 seconds is the total cex for fi 27 uh our fi27 7 capex we'll be in you know close to about 2,000 cr plus - 200 14:04 14 minutes, 4 seconds crores also for this year how much have we spent till now and how much we spend in the fourth quarter 14:11 14 minutes, 11 seconds GCR uh I don't have the exact number right now but we would have spent you know close to about you know 6 to 700 cr 14:20 14 minutes, 20 seconds in the current financial year uh so second is on the mine uh now given that we are expecting the CTO also 14:28 14 minutes, 28 seconds coming in in this itself. Uh how should we think about the mining volumes for FI27? 14:35 14 minutes, 35 seconds Okay. So Sat just to answer that uh so uh the CTO uh we're sending in we are very much hopeful the CTO should should 14:42 14 minutes, 42 seconds receive very soon maybe this week or maybe next week. So yeah once that is received so uh there'll be a very slight increment in the production for this 14:51 14 minutes, 51 seconds year probably uh you know because only one month will be left for this financial to get over for next year uh from 2.35 we're looking at a capacity of 14:59 14 minutes, 59 seconds 5 million and then the next year which is FI so April 27 onwards we're looking capacity of 6 million tons. So that is 15:08 15 minutes, 8 seconds how we plan to you know ramp up our mining capacity. 15:11 15 minutes, 11 seconds Okay. So next year we should reach by to around 5 million turn irrespective of when the benefitication facility comes online. 15:19 15 minutes, 19 seconds Yes. So I'll tell you what will happen is uh so by October November of FI sorry for o sorry October 26 we should be able 15:29 15 minutes, 29 seconds to start producing of 6 million tons because with delay so we'll get only 3 months of dry season in this you know 15:36 15 minutes, 36 seconds next financial year then monsoons will come. So eventually by monsoons the idea is to get the plant up and running and from October onwards uh we want to run 15:44 15 minutes, 44 seconds the benification at full capacity along with the mining that is entire planning going forward. 15:50 15 minutes, 50 seconds Oh okay last question uh on uh the pellet capacity so even FI27 we should 15:57 15 minutes, 57 seconds reach somewhere at around 75% utilization. 16:02 16 minutes, 2 seconds No, see before the new plant was commissioned we were operating close to at 90% capacity and uh our plant has been running well from last two months 16:10 16 minutes, 10 seconds and for next year next financial year we will operate at more than 90% capacity for the entire capacity. 16:19 16 minutes, 19 seconds Yes. So we should be able to produce more than 4 4.2 million tons from next year onwards. 16:25 16 minutes, 25 seconds Okay. So lastly on the steel plant uh any thoughts on the steel plant or we will take it up somewhere next year only 16:33 16 minutes, 33 seconds now no see so uh as we you know we had said earlier as well we were waiting for the mining EC to get received because uh we 16:41 16 minutes, 41 seconds didn't want to you know overcommit on the cape side now since mining has been received the EC so the team is working on the last minute details and hopefully 16:51 16 minutes, 51 seconds uh if you know we'll discuss internally I if he want to go ahead with the seed plant. I think the proposal would be taken in the next board meeting. 16:59 16 minutes, 59 seconds Oh, okay. So, we got it. But this will be a 1 million seal plant only that we will be Yes. Yes. It will be it will be agreed to different a new location 1 million uh blast seal plant primary. 17:11 17 minutes, 11 seconds Okay. Thank you. So, thank you. Thank you. 17:18 17 minutes, 18 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchstone telephone. I repeat 17:25 17 minutes, 25 seconds participants who wish to ask question may press star and one at this time. 17:32 17 minutes, 32 seconds The next question is from the line of Vikas Singh from ICS securities limited. Please go ahead. 17:39 17 minutes, 39 seconds Good afternoon sir. So my first question pertains to D's remark on the iron or 17:46 17 minutes, 46 seconds supply scenario. So one of our competitor like Lloyd had also came up with a large supply. So are we going to 17:54 17 minutes, 54 seconds see some excess supply in the iron nose phase in the domestic market as well for the next 6 to 12 months perspective and 18:04 18 minutes, 4 seconds is that our assumptions and would that our overall performance see so uh I I would like to break this 18:12 18 minutes, 12 seconds question in two parts in terms of volume supply from lawyers definitely there will be a supply addition supply coming in from Lloyd uh apart from our new 18:21 18 minutes, 21 seconds pellet plant and there's one more person who's commissioned the PE fund in this area. But at the same time, the domestic demand has gone up because people are still you know commissioning their new 18:30 18 minutes, 30 seconds DI killings. So volume should definitely go up in terms of supply from the market depending uh NBC is also coming with a 2 18:38 18 minutes, 38 seconds million pellet plant which will start with Q1. So there might be some volume pressure but because of our uh quality 18:45 18 minutes, 45 seconds you know because of our mining capacity and the medication going up uh the quality we make you know we have a different uh end buyer you know our 18:54 18 minutes, 54 seconds target audience is totally different so we don't see a challenge in terms of a performance in terms of volume there might be pressure you know over 12 months there might be some lean period 19:02 19 minutes, 2 seconds but on the overall performance of the company I don't see a challenge because of the quality we make because we'll be producing two we'll be producing high in 19:11 19 minutes, 11 seconds two plants and a commercial egg in one of the plants. So because of higher grade we will always demand a higher premium that will keep a margin intact 19:18 19 minutes, 18 seconds and our customer audience will be totally different than other players in the market. 19:24 19 minutes, 24 seconds noted and says after recent INR depreciation has the exports been uh now 19:31 19 minutes, 31 seconds profitable or uh it is still not uh and what is the difference uh at which we would start 19:39 19 minutes, 39 seconds export today today today see today uh we selling everything domestically uh we have no intentions of uh entering the 19:48 19 minutes, 48 seconds export market at the moment uh because the difference is the delta is very huge the delta is more than you know $157 at the moment Domestic demand is quite strong because 19:56 19 minutes, 56 seconds in last few weeks the entire supply chain of domestic has gone up right from you know DRI to billets to steel making there has been upurge in the finished 20:04 20 minutes, 4 seconds demand uh from the market. So at the moment we have no plans of you know exporting uh any blets. Uh we have very 20:11 20 minutes, 11 seconds strong demand and sitting in February we are we almost booked till you know end of this quarter. 20:18 20 minutes, 18 seconds Noted. So my second question pertains to our capital allocation since now our cash inflow is going to go up 20:26 20 minutes, 26 seconds significantly. We have invested in jumbo pigment then we are doing batteries and at the same time ste going forward uh 20:35 20 minutes, 35 seconds both how should we look at our capital allocation in terms of uh because jam pigment hasn't done anything yet. So if 20:44 20 minutes, 44 seconds after battery our whole and sole focus would be on the steel only and or we will still take up those small focus of 20:53 20 minutes, 53 seconds capexes because we are kind of a little bit reluctant to do a large capex on a single uh segment. So how should 21:02 21 minutes, 2 seconds see Jamu Jamu whatever money we've invested uh we always have the option of you know increasing our stake uh that we 21:10 21 minutes, 10 seconds can do any time but at the moment we have no plans to invest any more money in Jumbo pigments jumbo pigments will run independently uh whatever cash 21:18 21 minutes, 18 seconds generation happens uh from the operations uh basis that only they will look to expand further uh we have no no 21:26 21 minutes, 26 seconds intention of missing any further moneyments just to make it very clear on the allocations inside and Mr. Din G me mentioned so our CRM our solar and a 21:35 21 minutes, 35 seconds best so the outflow in this this year should be close to about 2,00 2500 Ks with a strong cash reserve uh with the 21:43 21 minutes, 43 seconds mining capacity coming up uh and I beta going you know our cash is going plus from the current financial year I think we we are well versed to you know meet 21:52 21 minutes, 52 seconds all the cap capital allocation requirement we don't see challenge no and s I just seen In our 22:00 22 minutes presentation, our carbon intensity remains very high despite we using some 22:06 22 minutes, 6 seconds of the solar. So after assimilating all the solar power projects basically what 22:14 22 minutes, 14 seconds is the final carbon uh ext we current we currently at we currently at 2.4 2.4 22:21 22 minutes, 21 seconds levels 2.45 levels. So to reduce the carbon density a new PEL plant we have switched from coal gas to natural gas. 22:28 22 minutes, 28 seconds That is one of the initiatives uh with solar capacity adding for my captive consumption that will further reduce my 22:35 22 minutes, 35 seconds intensity but uh and we also working in one of the you know carbon capture projects with IIT Bombay it's an R&D 22:43 22 minutes, 43 seconds project for 510 capture per day uh if that is successful I think I think then we have a clear path to move forward but 22:50 22 minutes, 50 seconds you need to understand for the entire steam cycle today the major crux where carbon emission is happening is is a DRR 22:57 22 minutes, 57 seconds out of 2.4 2.4 45 1.8 1.85 is a contribution only from DI. So that is the area where we really need to attack 23:05 23 minutes, 5 seconds if you want to bring down a carbon level. On the power front we have taken care on the fret side we have taken care. Now the main challenge remains 23:12 23 minutes, 12 seconds that we arrive where we have tied up with IIT Bombay. We are working on a R&D project of five tons per day. That project should be up and about by coming 23:20 23 minutes, 20 seconds Diwali which is 10 months from now on and the results are good then we have a clear path how to move forward to reduce the carbon density. 23:29 23 minutes, 29 seconds You got it. And so just one last question if I may squeeze in. So coal costwise next quarter what are our 23:36 23 minutes, 36 seconds expectation? I believe he imports most of the coal. So INR depreciation has hit them and al as well as there talks about 23:44 23 minutes, 44 seconds Indonesian supply getting hampered. So your thoughts? 23:48 23 minutes, 48 seconds See see Indonesian coals are mainly used for uh power plant. they're not used for DR but definitely it will have a certain 23:55 23 minutes, 55 seconds impact on the south of price as well because there will be a a glut in the system so there will be some transfer of 24:03 24 minutes, 3 seconds you know uh a new new buyer and new market seller right uh our current cost in the Q4 quarter absolute value is 24:10 24 minutes, 10 seconds about 11,000 rupees of important contribution is 8,000 rupees in Q1 24:17 24 minutes, 17 seconds because we have we do forward buying so Q1 the cost will very maximum is about 5 24:24 24 minutes, 24 seconds 7%. We've ensured that so any substantial impact if has to happen probably happen you know from Q2 onward 24:31 24 minutes, 31 seconds which is almost 6 months from now on so no point commenting about that. 24:36 24 minutes, 36 seconds Okay that's all from my side and all the best for future. Thank you. Thank you. 24:44 24 minutes, 44 seconds Before we take the next question we would like to remind participants that you may press star and one to ask a question. I repeat participants who wish 24:52 24 minutes, 52 seconds to ask a question may press star and one at this time. The next question is from the line of manav from Yes Security. 25:01 25 minutes, 1 second Please go ahead. 25:05 25 minutes, 5 seconds Yeah. Hi uh very good afternoon. Thank you for the opportunity. So first question is uh you know in the presentation we have mentioned that 25:12 25 minutes, 12 seconds roughly 452 acres of land acquisition has been done for the integrated steel plant and for the CRM complex. So what 25:21 25 minutes, 21 seconds would be the capeex outlay of the 452 acres if you could give me the number to acquire the land? 25:30 25 minutes, 30 seconds Yes. I think it's about it's about 32 crores. Am I correct Bra G? 25:37 25 minutes, 37 seconds Yes sir. 25:38 25 minutes, 38 seconds Yeah. So it's about 30 crores. So we have signed a 19 99 year lease agreement uh with the state industry department and the total outflow has been about 32 crores to acquire the land. 25:50 25 minutes, 50 seconds Okay. Uh got it. And so for the capeex that you mentioned for you know 2,000 K to earlier question by Sedhar G just 25:57 25 minutes, 57 seconds wanted to know it doesn't include any steel capexes which are you know probably going to no no no steel so so so steel capex is 26:06 26 minutes, 6 seconds not involved for steel we will uh we will first have to you know internally discuss get it approved by the board. So whatever capexes we'll be doing right 26:14 26 minutes, 14 seconds now it has nothing to do with the new steel plant. It's CRM about 1100 K the battery storage uh and the additional 26:21 26 minutes, 21 seconds capacity. These are the three major capexes which will uh you know happen in FI27. 26:28 26 minutes, 28 seconds Got it. Got it sir. Uh so just uh you know on the pricing front can you you know give us give us some sense on how Q4 is shaping up versus Q3? 26:39 26 minutes, 39 seconds See on on the mining side. 26:44 26 minutes, 44 seconds Sorry, can you come again? On the mining side market. 26:47 26 minutes, 47 seconds Market side. Okay. Sorry. See, yeah. So, see on on the market side, uh fortunately there has been a quite enough surge. Uh you know, in terms of 26:55 26 minutes, 55 seconds prices, uh pellet is up almost 10 12%, D is up by 20%, uh semi finish and finish 27:02 27 minutes, 2 seconds almost up by 12 13%. the demand is quite strong and uh you know so the the change 27:09 27 minutes, 9 seconds we have realized you know in last couple of years is you know usually used to think Q4 and Q1 are the best quarters for steel but what we got sorry earlier 27:19 27 minutes, 19 seconds was Q1 and uh Q2 for best quarters for steel but now we have realized there's a change in in terms of you know demand 27:27 27 minutes, 27 seconds and supply now Q4 and Q1 are supposed to be the best quarters before the monsoon arrives so if you see Q Q2 was dull, Q3 27:35 27 minutes, 35 seconds was also very dull and this was a trend last year as well. So Q4 the demand is very good and we're expecting the demand to continue for at least for Q1 as well before the monsoon arrives. 27:48 27 minutes, 48 seconds Got it. So that is quite helpful. Yeah. 27:50 27 minutes, 50 seconds So on the imported coal would it be possible to give what the current mix is for us right now? You know imported versus the domestic coal usage. 28:00 28 minutes See for a DRI we 100% we completely import RB1 coal. So that's about 0.5.6 28:07 28 minutes, 7 seconds million tons annually and for our coal gas operation for pellet plant and for our power plant we do about 0.4 million 28:16 28 minutes, 16 seconds tons of domestic coal. So the ratio is about you know 55 or 6040. 50% is imported and 40% is domestic. 28:23 28 minutes, 23 seconds We need about a million we need about a million tons annually to run entire operations. 28:29 28 minutes, 29 seconds Okay. That is quite helpful. So just uh if I'll squeeze in one more question just wanted to know you know the company has acquired four wagons basically for 28:38 28 minutes, 38 seconds uh logistics purposes. So what sort of costsaving are we expecting uh you know this from this acquisition versus what the current mode is. 28:47 28 minutes, 47 seconds So see there there are two two basically uh two purpose to you know buy four four wagons under the railway scheme. One is 28:56 28 minutes, 56 seconds with a new pellet capacity uh we uh we do realize we we want to also sell pellets outside the riaur market for 29:05 29 minutes, 5 seconds which uh the railway is the cheapest mode. So to ensure the rack ability and and timely movement of our racks uh we 29:14 29 minutes, 14 seconds have acquired this acquisition where one bag one bags entire rack will cost us about about uh I think about 24 25 cr 29:21 29 minutes, 21 seconds rupees. Secondly the the scheme which under which we have acquired so there is flat 10% discount on fret for a period 29:29 29 minutes, 29 seconds of 15 years that is the scheme railway has designed so 10% saving will be there on the railway threat for 15 years plus 29:36 29 minutes, 36 seconds the most important point is the timely evacuation of our pilot volumes uh via rack mode. 29:45 29 minutes, 45 seconds Okay and and we can lease this out as well right during uh low demand. So, so, so if you feel if we feel if we feel our 29:53 29 minutes, 53 seconds our racks are not getting fully utilized, we can always lease out on rental basis to other companies and and earn extra income from that. 30:02 30 minutes, 2 seconds Okay. Okay. So, okay. Yes. 30:04 30 minutes, 4 seconds Sure. But, but it wouldn't be a separate business line operation that you No, no, no, no. This is this is just to this is just a part of infrastructure 30:11 30 minutes, 11 seconds where we want to you know move for a timely movement of a pallet volume outside market and given a situation if the racks are not being fully utilized 30:19 30 minutes, 19 seconds we can always you know rent it out to other buyers other players who wants it for better movement in our disclosure we have clearly 30:28 30 minutes, 28 seconds mentioned that we don't want to enter into the logistics business it is for the captive requirement in idle case only it will be led out Okay. Okay. 30:38 30 minutes, 38 seconds Yeah. We have clearly mentioned in our disclosure as well. 30:42 30 minutes, 42 seconds Got it initially. Thank you so much. Uh sir, just one last question. Wanted to you know uh get a fair bit of understanding on the other expenses 30:50 30 minutes, 50 seconds going down by roughly 11% Q on Q. So could you give uh the reasons behind the same please? 30:57 30 minutes, 57 seconds Can you please come again? Other expenses uh going down you know on a quarterly basis. 31:04 31 minutes, 4 seconds So no see if you see so see see one was because our par volumes are quite low our par due to the unfortunate accident was almost shut for you know span of 40 31:13 31 minutes, 13 seconds days so entire October a par was not running so it there might be some contribution based that as well because there was no fuel burn there was no you 31:22 31 minutes, 22 seconds know other uh items purchased so that can be one of the reasons plus what has happened is the domestic coal for power plant is towards almost rock bottom due 31:31 31 minutes, 31 seconds to better availability post monsoon so that can also contribute on the other you know other operating costs going down. 31:38 31 minutes, 38 seconds Got it. Got it. So primarily because of the lower pay volumes. 31:42 31 minutes, 42 seconds Exactly. Exactly. Yeah. Mainly ble volumes. Yes. 31:45 31 minutes, 45 seconds Sure. That's that's all. Thank you so much and all the very best. Thank you. Thank you. 31:54 31 minutes, 54 seconds Participants who wish to ask a question may press star and one at this time. to ask a question please press star and one now. 32:04 32 minutes, 4 seconds The next question is from the line of Sahil Sangui from Monarch Network Capital. Please go ahead. 32:12 32 minutes, 12 seconds Yeah, good afternoon. Thank you for the opportunity. Um my first question is um despite six lakh t of pellet production 32:20 32 minutes, 20 seconds um the sales that we've done uh seems to be pretty low. I mean uh I understand some part of the pellet goes into forward integration but uh still I 32:29 32 minutes, 29 seconds believe as compared to the previous few few quarters we've not sold enough. So any particular reason you want to flag off on this? 32:36 32 minutes, 36 seconds Yeah there are two two primary reasons. 32:38 32 minutes, 38 seconds Yeah. One was uh there was additional capacity of so our pellet plant uh there was couple of people who also commissioned the pellet fun in the same 32:45 32 minutes, 45 seconds period. So suddenly there was an over supply of pellet in the domestic market. Uh the the steel market was very lull. 32:53 32 minutes, 53 seconds uh there was absolutely very less demand the sponge prices were you know towards rock bottom since covid about 20 22,000 33:00 33 minutes rupees so there was a phase up in December where where the demand of pellet was quite low uh that is why the inventory has gone up but since then uh 33:10 33 minutes, 10 seconds all inventory will be cleared in Q4 uh because of demand being back on the higher side so just a you know cotton 33:18 33 minutes, 18 seconds cart analysis uh at today's position our entire which is piled up in December has been audited off 33:25 33 minutes, 25 seconds right good to hear that so so so we'll we still targeting a 3 million t of production this year yes yes we are very very we might not 33:34 33 minutes, 34 seconds able to reach at probably exactly but plus minus 5% we should be there so our production volume guidance start of the year we are very much on track to 33:41 33 minutes, 41 seconds achieve that got it got it uh secondly um just the first year of operations for best um um 33:49 33 minutes, 49 seconds would it would it be safe to assume a 40 45% utilization or should we assume a little lower? 33:56 33 minutes, 56 seconds No. So uh uh just to be on a very because it's a new vertical totally new field even even we have considered a 40 34:03 34 minutes, 3 seconds to 50% uh you know plant load for the first year. So April 27th to December March 28th we consider a portioning 34:11 34 minutes, 11 seconds capacity of say 8 to 10 gawatt only against 20 gawatt line. Right. And margins could be around 6%. 34:20 34 minutes, 20 seconds Yeah. So for for our modeling we have considered a margin of about 7%. Got it. Got it. Got it. 34:26 34 minutes, 26 seconds The reason the reason I the reason I'll tell you why is we have considered slightly higher margin compared to our our peers is because uh we have chosen 34:36 34 minutes, 36 seconds uh a new technology cell which is a 620 a cell against a 314 cell which others are doing. So because of that our our 34:44 34 minutes, 44 seconds operating cost will be slightly on the lower side and that is why the hence improved margin. Right. Right. Right. 34:51 34 minutes, 51 seconds So our first line will be 100% basis 628 ASL. 34:58 34 minutes, 58 seconds Got it. Got it. Thank you. Thank you so much. Thank you. Thank you. 35:06 35 minutes, 6 seconds A reminder to all participants to ask a question please press star and one on their touchstone telephone. 35:14 35 minutes, 14 seconds To ask a question please press star and one. Now the next question is from the line of vinit takur from plus 91 amc. 35:23 35 minutes, 23 seconds Please go ahead. 35:25 35 minutes, 25 seconds Hi good afternoon sir. Thank you for the opportunity. I would uh like to know what is our revenue what is our revenue and EITA guidance once the entire capeex 35:34 35 minutes, 34 seconds is done what is the level of debt that we are expecting to have in the books for the capeex 35:42 35 minutes, 42 seconds uh so talking about next year or or once all the new capacities are running up to production was it uh next year and uh once the 35:50 35 minutes, 50 seconds capacities are all done uh are live see so from current operations once uh so next year once the mining will be at 35:58 35 minutes, 58 seconds full capacity our operations will be at full capacity. We're looking at a revenue of close to about uh 6 and a half,000 7,000 KS from the C complex. Uh 36:07 36 minutes, 7 seconds on the on the battery storage side, if you consider a capacity of 8 GW, so you can consider revenue of 5,000 KS and 36:14 36 minutes, 14 seconds from the CRM again you consider 50% capacity which is a 3 three and a half lakh ton. So you can consider a volume 36:22 36 minutes, 22 seconds of close to about 2,000 KSE. So put together anything between 12,000 to 15,000 K will be the turnover from FI28. 36:32 36 minutes, 32 seconds Okay sir. And so what is the level of debt debt that we are expecting to have in the books for the capeex 36:40 36 minutes, 40 seconds bes will be close to about uh say uh peak date at fi27 as of uh the capex which 36:48 36 minutes, 48 seconds have been announced till date uh will be in the range of net debt will be lower but on the gross side it will be in the 36:55 36 minutes, 55 seconds range of about 1,500 cr with the minus cash balance will be the net debt you know that depends on the 37:04 37 minutes, 4 seconds cash flow generation in next financial year. What we have done is we have tied up a date of 1,500 cr for all these capex to keep the you know cash on the 37:13 37 minutes, 13 seconds balance sheet for our future expansions and and and the way we have negotiate with the bank is uh you know depending on our cash flows uh for the next year. 37:22 37 minutes, 22 seconds We always have a choice to prepay. 37:24 37 minutes, 24 seconds Exactly. We always prepay and also we will only draw when there is a requirement. So we also kept we kept the both option opens of prepayment and draw the money as and when required. 37:37 37 minutes, 37 seconds Okay sir and sir I would like to know what was the impact on of the new labor law on GP also employee expenses or anything has increased drastically 37:46 37 minutes, 46 seconds because of that or see so there will be of course there will be because now with a new employee 37:53 37 minutes, 53 seconds code coming in effectively so earlier so now you have to treat your contract labors at the same category of your employees so there will be a very 38:01 38 minutes, 1 second marginal impact probably I think hardly about you know 78 crores on on on annual basis This is not a very huge impact 38:07 38 minutes, 7 seconds that now the law says even your third party employees or a contractor employees has to be detailed in the same 38:15 38 minutes, 15 seconds way as you take your own company employees that's the major difference so there are change of law the change of salary structure uh which will be complied from exponential year the 38:24 38 minutes, 24 seconds impact is very minimal yeah you can say about 72 lakh rupees a month that's it not not very major and sir how much free cash flow are you 38:32 38 minutes, 32 seconds expecting 3 years down the It's very difficult because see uh if if you don't go ahead with the steel plant 38:40 38 minutes, 40 seconds then probably from FI28 once all our capexes are done and the new portion capacity comes up there will be 38:49 38 minutes, 49 seconds close to about 2500 or 2,000 of cash every year. But if the steel plant is shaping up and we do decide to go ahead 38:56 38 minutes, 56 seconds then for the next 3 years all our free money will be invested in the new steel plant. So it's difficult to comment at the moment. All depends you know how what what capex plan going forward. 39:07 39 minutes, 7 seconds So since you've mentioned the steel plant uh is there any clarity on when will we have when will we make a decision if you want to do it or not to 39:16 39 minutes, 16 seconds in in in uh best possible worst possible scenario I think by end of so which will be the annual board meeting which will happen in April and May we will have a 39:24 39 minutes, 24 seconds full clarity on that. So either we are going ahead or we not going we'll drop it that's very clear because we were waiting for the mining EC to come. Now 39:32 39 minutes, 32 seconds since that has come uh we working on the last you know last finune details and uh I think by next board meeting either 39:40 39 minutes, 40 seconds we'll take it up or we'll drop it that's for sure. So what's the expected capeex for the steel plant if we do go ahead to 39:47 39 minutes, 47 seconds go ahead and what will be the capacity for it? You're thinking capacity capacity will be 1 million and the cape vis 39:56 39 minutes, 56 seconds should be somewhere about uh 5,000 crores. Okay sir. Thank you sir. Thank you. Thank you. 40:04 40 minutes, 4 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 40:16 40 minutes, 16 seconds Participants who wish to ask a question, please press star and one at this time. 40:22 40 minutes, 22 seconds The next question is from the line of Arian Bhya from Inv Research, please go ahead. 40:29 40 minutes, 29 seconds Thank you for the opportunity sir. My question is from the incremental sales volume. So please correct me if I'm wrong. So the increment of sales volume 40:36 40 minutes, 36 seconds once both iron or mining and pellet come will be 2.7 from the pellet plant and.5 from the benification plant. Is my understanding correct? 40:46 40 minutes, 46 seconds No. So firstly we will not be selling anything out of a benovish plant. 40:50 40 minutes, 50 seconds Benovation plant is being put up to enhance the quality of concentrate which will feed to a pellet plant. So there'll be nothing sold out of beneficial plant. 40:59 40 minutes, 59 seconds It's part of our internal process on the fed side which you know if you do a volume of say 4 million so out of which about 1 41:08 41 minutes, 8 seconds million will be for captive consumption and 3 million will be for merchant scene. 41:13 41 minutes, 13 seconds Okay. So four out of the 4 million 1 million for captive consumption and 3 million yes whatever. So we we produce four we produce 4.2 4.5 whatever we produce or 41:22 41 minutes, 22 seconds above 1 million that will be for midi merchant sale. 41:25 41 minutes, 25 seconds Okay. Okay. And so my second question is regarding margin on the CRM complex. So what is it victim expecting because like we will be buying HR boys from outside 41:33 41 minutes, 33 seconds and yeah see so it's it's more of a exactly it's more of a convergent business to make value added steel we 41:40 41 minutes, 40 seconds have also filed for two pay schemes under the new scheme by steam industry so on a yearon basis I see I see a 41:49 41 minutes, 49 seconds operating margin level it's about 8 to 10% on the maximum side 8% to 10%. 41:55 41 minutes, 55 seconds Just wanted a clarity on this margin because this look at the HR coil prices which is around 512,000 and CR coil is around 57,000. Shouldn't the gross 42:04 42 minutes, 4 seconds margin be 10% as compared to a VA margin? 42:10 42 minutes, 10 seconds See uh on on papers you are very correct but you know uh we are getting into value scheme uh a lot of branding a lot 42:19 42 minutes, 19 seconds of marketing will be required you know we have to educate our customers because we will be competing against you know all established players like the JSW 42:26 42 minutes, 26 seconds Tata and all that so that's why to be very conservative for initial couple of years to establish self ourselves as you 42:33 42 minutes, 33 seconds know the leading players with the desired quality we have considered the margins on the slower side once we establish You can definitely consider 8 10% on on the gross profit margin side. 42:43 42 minutes, 43 seconds Definitely. 42:45 42 minutes, 45 seconds Okay. Got it done. So last question is on our best project. Can you give the unit economics for the best like per gaw of revenue we can get there? 42:54 42 minutes, 54 seconds See today if you see today per megawatt hour of uh the entire setup uh to deliver a site for usage by a by a buyer 43:04 43 minutes, 4 seconds is about 80 lakh rupees per megawatt hour. So it makes one container at about 4 rupees. So at your first year of 8 8 43:11 43 minutes, 11 seconds gawatt you can easily multiply you know 8 gawatt into 80 lakhs. So it becomes close to about 6,000 crores of revenue 43:18 43 minutes, 18 seconds with a operating margin of about 6 7 8 7 to 8%. 43:23 43 minutes, 23 seconds Got it. Got it. Thank you. So on 6,000 K 8% comes about you know 450 500 K. 43:29 43 minutes, 29 seconds Got it. Got it. Thank you. Thank you. 43:36 43 minutes, 36 seconds A reminder to all participants, if you wish to ask a question, please press star and one on your touchtone telephone. 43:45 43 minutes, 45 seconds To ask a question, please press star and one. Now the next question is from the line of Sadhart from Equidius. Please go ahead. 44:02 44 minutes, 2 seconds Mr. Sad, please proceed. 44:16 44 minutes, 16 seconds You can take the next question. I think he's not there. 44:21 44 minutes, 21 seconds The next question is from the line of Abi Shaha from Siddhi Technology. Please go ahead. 44:27 44 minutes, 27 seconds So yeah, I have one question. Uh what is the difference between BF pellets and BR pellets and what is the mix? Yeah. 44:38 44 minutes, 38 seconds Yeah. Please submit your question. So sorry. 44:41 44 minutes, 41 seconds So uh what is your mix in producing BF pellets and DR pellets? As you said in 44:47 44 minutes, 47 seconds one of your remarks that you have higher quality of node. So does it mean that you have higher DR pellets mix in your production? 44:58 44 minutes, 58 seconds Okay. Just so to clarify technically first uh basically there are two DR fellets. One is the coal based GS punch which we operate and one is the gasbased 45:06 45 minutes, 6 seconds G which is being operated by you know mostly Middle East and few European countries. Even SR Hzira is doing the 45:13 45 minutes, 13 seconds same thing. So to make a DR gasbased pellet uh the major difference comes in the 45:21 45 minutes, 21 seconds physical parameters which is one is the sizing. So for a BF pellet or a cold gr pellet the size you produce is 5 to 18 45:29 45 minutes, 29 seconds where for DR pellet you need a size of 9 to 18 that is a major change. Secondly the strength of BF pellet you know 45:37 45 minutes, 37 seconds there's a time called CCS which is a cold crushing strength. So for BF 220 plus is more than enough but for gas based GR pellets you need a minimum of 45:45 45 minutes, 45 seconds 270 280. So that is where you know the challenge comes to maintain that physical parameters and that's the 45:53 45 minutes, 53 seconds reason you get a substantially higher premium in the export market compared to a BF pallet. So for example today a BF pellet premium for a 6580 pellet is 46:01 46 minutes, 1 second hardly about 13 bucks whereas for a DR pellet the premium is about 28 bucks. So that is where the difference is technically between a BS pellet and DR 46:10 46 minutes, 10 seconds pellet. In our case since there is there is a strong demand from the domestic market. So we have no intentions of you 46:18 46 minutes, 18 seconds know making the BR pellet and exporting to Middle East. We are always have the option to doing that but at the moment looking at the current domestic demand 46:25 46 minutes, 25 seconds we will keep making BF pellets which are equally suitable for Dunar. Okay. Okay. Yeah that worked. 46:35 46 minutes, 35 seconds Thank you. Thank you. 46:40 46 minutes, 40 seconds Before we take the next question, we would like to remind participants that you may press star and one to ask a question. 46:49 46 minutes, 49 seconds Participants who wish to ask question may press star and one now. 46:54 46 minutes, 54 seconds The next question is from the line of manov from Yes Security Limited. Please go ahead. 47:00 47 minutes Yeah. Hi, thank you once again sir. Uh my question is you know pertaining to the best uh so you just mentioned that 47:08 47 minutes, 8 seconds for the first year we would be running at a 45 to 50% you know utilization level. I wanted to talk about the second 47:15 47 minutes, 15 seconds phase of that will we uh take the expansion post the first year of running and seeing how things are going on or 47:22 47 minutes, 22 seconds will it be you know being done simultaneously? 47:25 47 minutes, 25 seconds No no no no no no no no. Uh uh we we we we got to be little cautious uh you know because it's a totally a different field. Uh there will be huge 47:34 47 minutes, 34 seconds competition. So uh we will only invest into the second phase once we are able to stabilize the line for the first phase. 47:45 47 minutes, 45 seconds Got it. And what would be the timelines that uh I think for the brownfield expansion now it would be a lesser period right which would be taken up. 47:53 47 minutes, 53 seconds Yes. So probably just to just to commission the second page will take about maximum about about uh about 8 to 10 months. That's it. 48:02 48 minutes, 2 seconds Got it. Got it. And sir uh you know second question is could you just give me how the ferro alloy market is shaping 48:09 48 minutes, 9 seconds up in terms of pricing? I think you know the prices have been quite steady over the last six months. How do we see it going? 48:16 48 minutes, 16 seconds Yeah. So the federalized price has been hovering you know 70,000 plus - 5% benchmark. uh on the lowest side it went to 68,000 when the market was lull in Q3 48:25 48 minutes, 25 seconds and today when the market is good the prices have moved up to about 74,000 so fair for entire year has been operating at you know 70,000 plus - 5% range and I 48:34 48 minutes, 34 seconds feel this this will continue so since the market is good right now I feel the prices should be about 74 75,000 for you know few months going forward 48:44 48 minutes, 44 seconds okay uh that is quite helpful so one one last question wanted to know you know there have been discussions about 48:50 48 minutes, 50 seconds expanding the Bora Bora Tibbu mine. So what's the management's view on uh we we have we have we we no we have we 48:59 48 minutes, 59 seconds have we have full plans to expand the Bitco mines uh as I have we have commented earlier as well uh the mines 49:06 49 minutes, 6 seconds being low grade so we have to put up a beneficial plant inside the mines for which essential area would be required 49:15 49 minutes, 15 seconds so uh we've already started the process of preparing the tour to file for the new EC along with the benevision plant. 49:23 49 minutes, 23 seconds So we see that plant up and running in say FI30 which is 3 years from now on very bare minimum. 49:30 49 minutes, 30 seconds Got it. And no so the the no the documents are under preparation. Uh we have finalized how we 49:38 49 minutes, 38 seconds want to run that mine along with benefitation. So we the tour will be filed in Q1 of next financial year for the new EC. 49:47 49 minutes, 47 seconds So you can consider about 12 to 12 15 months of uh EC period and then another 15 to 20 months of plant election. So 3 years from now on. 49:57 49 minutes, 57 seconds Okay. Got it. Uh and uh this would come regardless whether we proceed ahead with the steel plant or not. Right. 50:05 50 minutes, 5 seconds Yes definitely because uh today my parrot requirement for my pellet to feed my parrot plant I need about about 5 million tons of you know concentrate. So 50:13 50 minutes, 13 seconds it's always you know nice to have a backup of a million ton of same grade from a different mine. So if if you don't put up the steel plant this will 50:21 50 minutes, 21 seconds you know be an alternative source. So if there are you know some challenges because of public sale in monsoon or something we can always you know feed uh the mines to the pellet plant. 50:32 50 minutes, 32 seconds Okay. And what capacity expansion are we planning from 0.7 to what? 4 million 4 million. Uh so 4 million uh 100% 4 50:41 50 minutes, 41 seconds million benefit. So the output of concentrate will be close to about 1.5 million tons and 40 and 40% recovery. 50:51 50 minutes, 51 seconds Got it. Got it. Yes. Uh that that was very helpful. Yeah. So thank you so much. Thank you. Thank you. 51:00 51 minutes A reminder to all participants that you may press star and one to ask a question. I repeat 51:07 51 minutes, 7 seconds to ask a question please press star and one. Now the next question is from the line of Shikhar Mundra from VVC commercial limited. Please go ahead. 51:19 51 minutes, 19 seconds Uh hi. Uh so for the expanded pallet capacity of 4.7 million tons uh what is the corresponding iron or which required? 51:30 51 minutes, 30 seconds Sorry come again you not you not clear for the expected capacity of 4.7 million tons of plet. What is the iron ore which is required to make that? 51:41 51 minutes, 41 seconds Okay, so on actual double basis we need about a 5 million tons of iron ore. But to make that 5 million tons we will have 51:48 51 minutes, 48 seconds to benefiticate the 6 million. So of 6 million we we about 15 to 20% there will be yield losses to upgrade the quality 51:56 51 minutes, 56 seconds of so from 6 million we'll do about 4.75 tons of concentrate which will be sufficient enough to feed my entire pel plant. 52:05 52 minutes, 5 seconds Okay. So the entire 6 million tons of you know capacity will be used I mean we have to sell we no we we have no no we rather than 52:13 52 minutes, 13 seconds selling rather we would like to you know public mining life we have no intention of because I'll tell you another reason because if we happen to sell in the 52:19 52 minutes, 19 seconds market as for the new MMDR act because our mines was allotted in the captive category we allowed to sell 50% apart 52:28 52 minutes, 28 seconds from a consumption but then we have to pay additional royalty so the royalty amount will be 1,000 rupees plus so does it make sense to sell addition but better to reserve 52:37 52 minutes, 37 seconds any extend your mining life or have a buffer stock if something goes you know in the m because of extreme amounts you know you know it can be anything 52:45 52 minutes, 45 seconds got it got it and uh post this expansion letter on 4.7 million tons what what will be the split between high grade pallets and low grade pal pallet 52:55 52 minutes, 55 seconds so about so on the split will be so about uh about 70% will be high grade 30% will be 53:03 53 minutes, 3 seconds low grade and on what is the Current split current split is again it's it's same. 53:08 53 minutes, 8 seconds So current split is about 65 is high grade 35 is low grade. So one plant will continue remain like that. The two 53:14 53 minutes, 14 seconds bigger plants will keep reducing. Sorry the ratio will will change to 80%. So 80% will be high grade 20% will be low grade. My apologies. 53:24 53 minutes, 24 seconds Okay. Okay. So our margins we are expecting our margins to slightly improve. 53:29 53 minutes, 29 seconds Exactly. So whatever challenges you going to face from the pressure you know the supply side because of lawyers and other competitors we will very much negate that with our quality and high premiums. 53:39 53 minutes, 39 seconds Got it. Got it. Thank you. Thank you and all the best. Thank you so much. Thank you. 53:46 53 minutes, 46 seconds The next question is from the line of D Sha from Shri Polymers. Please go ahead. 53:59 53 minutes, 59 seconds Mr. Dh please proceed with your questions. 54:08 54 minutes, 8 seconds As there is no response sir can we move to the next question. Yeah. 54:14 54 minutes, 14 seconds Okay. The next question is from the line of Sedhart from Equirius. Please proceed. 54:21 54 minutes, 21 seconds Uh hi sir. So first on the mining side uh now with the expanded capacity and ramping of the mines will there be some 54:29 54 minutes, 29 seconds change in the cost structure uh given the operating leverage that would be coming in uh how should we see the mining cost moving over the next two years. 54:38 54 minutes, 38 seconds See the mining cost uh should remain on the similar level. Uh primarily there are two reasons. One is uh because of 54:46 54 minutes, 46 seconds additional mining our our mining costs will slightly go up because uh the way our mind say it's it's it's not a very 54:54 54 minutes, 54 seconds open cast you know flat land we are going well below the sea level. So currently we mining at about 100 m and 55:02 55 minutes, 2 seconds to reach 6 million we have to probably reach about 140 150 m. So our mining cost will go up. uh that will be 55:09 55 minutes, 9 seconds compensated by the volume uh the solar plant we have established the new battery storage as well as uh the 55:18 55 minutes, 18 seconds benefit so we still expect the mining cost to be at 3,000 level in the longer term which is currently right now. 55:27 55 minutes, 27 seconds Okay. Uh secondly with all the power projects coming online in the next two years what kind of cost savings would we have on the energy side? 55:36 55 minutes, 36 seconds See on mining side you know today the grid tariff is about 11 rupees uh which will be replaced by a power of say 3 55:44 55 minutes, 44 seconds rupees. So on the plant side the grid car is about 7 rupees which will be raised up by you know 3 rupees. So on 55:50 55 minutes, 50 seconds total food put together our annual cost average cost of generation which is currently about 3.75 rupees should be well below 3 rupees. 56:01 56 minutes, 1 second So the payback should be less than 2 years for the entire soda. Oh no. So for mining the payback is about 3 years but for my plan side the payback is about 56:09 56 minutes, 9 seconds four four and a half five years because the tariff is on the lower side. Oh okay. Got it. Thank you so much. 56:16 56 minutes, 16 seconds Thank you. 56:19 56 minutes, 19 seconds Thank you. The next question is from the line of Dish Sha from Shri Polymer. Please go ahead. 56:26 56 minutes, 26 seconds Yeah ma'am. After all expansions, what could be total turnover of the company in 2020 2030? 56:38 56 minutes, 38 seconds 20 30 sir 2030. 56:41 56 minutes, 41 seconds Yeah. 20 2030 total turn of the company, right? Yeah. Ex expected. 56:49 56 minutes, 49 seconds Yeah, of course. Of course. I do understand that. So the total turn of the company. So I'll tell you uh 7 + 10 roughly roughly at about 25,000 KS. 57:03 57 minutes, 3 seconds Okay. Okay. Thank you. Yeah. Thank you. 57:08 57 minutes, 8 seconds Thank you ladies and gentlemen. That was the last question for today. I now hand over the conference to management for closing comments. Over to you sir. 57:19 57 minutes, 19 seconds Uh thank you ladies and gentlemen for joining us on this call. We hope we have been able to answer all your queries. In 57:27 57 minutes, 27 seconds case you have any further question, please get in touch with us or to our uh investor relation team. Thank you very 57:34 57 minutes, 34 seconds much. Thank you and with this con this call. Thank you very much. Cultural beings. 57:42 57 minutes, 42 seconds Thank you. 57:43 57 minutes, 43 seconds Thank you. Thank you on behalf of Go India Advisers LLP. That concludes this conference. Thank you for joining us and you may now disconnect your lines.