Jindal Steel Ltd — Q4 FY26

Jindal Steel Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=VlnGSYETFpU Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Jindal Steel Q4 FY26 earnings conference call hosted by JM 0:10 10 seconds Financial Institutional Securities. As a reminder, all participant lines will be in the listenonly mode and there will be 0:18 18 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:27 27 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:36 36 seconds I now hand the conference over to Mr. 0:38 38 seconds Ashto Sumani from JM Financial Institutional Securities. Thank you and over to you sir. 0:45 45 seconds Thanks operator and welcome everyone to the call. I will first thank Jindel Steel for giving JM Financial the opportunity to host today's call. 0:53 53 seconds Without much ado, I'll hand over the call to Mr. Vishal Chanduk, head investor relations Jindel Steel to introduce the management. Over to you, Vishal. 1:03 1 minute, 3 seconds Hi Ash, good morning. Um, thank you very much. Good morning ladies and gentlemen. 1:07 1 minute, 7 seconds Uh, sorry, good afternoon. U, thank you very much for joining us for the Q4 FI25 earnings briefing on a Saturday on a 1:14 1 minute, 14 seconds long weekend. Um quickly we'll introduce the management participants. We have with us Mr. Goautam Malotra CEO, Mr. 1:21 1 minute, 21 seconds Damodar Mul the whole director, Mr. Suni Lagar CFO, Mr. Sanjiv Nanda, president finance, Mr. Pankar Malan ED sales and marketing, Mr. PK BJ Nay Angul and Mr. 1:33 1 minute, 33 seconds Debu Joti Roy Edar without much ado, I would request u Mr. 1:39 1 minute, 39 seconds Gautam to uh start with his opening remarks. After this we will open the floor for the Q&A. Over to you sir. 1:48 1 minute, 48 seconds Thank you Vishal. Uh small correction I think Vashal meant FY26. So good afternoon ladies and gentlemen. Welcome 1:55 1 minute, 55 seconds to Jindel Steel's fourth quarter FY26 and FY26 earnings conference call. We appreciate you finding time on a Saturday afternoon to join us. 2:06 2 minutes, 6 seconds FY26 has been a defining year for Gindle steel marked by significant progress across our expansion projects which have 2:14 2 minutes, 14 seconds taken our steel making capacity from 9.6 million tons peranom to 15.6 million tons peranom. We have had a steady ramp 2:22 2 minutes, 22 seconds up of these newly commissioned capacities at Angul and a continued focus on operational efficiencies across all three manufacturing sites including Ryard and Patratu. 2:34 2 minutes, 34 seconds As we transition into a higher scale of operations, we are well positioned to deliver not only higher volumes but a value add product range geared towards 2:43 2 minutes, 43 seconds the infrastructure demands of a growing India. 2:47 2 minutes, 47 seconds Let us start with a big picture view on the global steel industry which is entering a phase of measured recovery. 2:54 2 minutes, 54 seconds There are projections of modest growth of.3% in 2026 to reach 1.7 3:00 3 minutes billion metric tons accelerating to 2.2% 2% in 2027 at 1.762 billion tons. 3:10 3 minutes, 10 seconds China's demand contraction is gradually decelerating while India and other developing Asia remains growth drivers. 3:17 3 minutes, 17 seconds Developed economies including the EU, US and Japan are expected to return to positive growth in 2027. 3:24 3 minutes, 24 seconds The Middle East conflict has tempered near-term regional demand. However, the broader global output out outlook remains largely resilient. 3:34 3 minutes, 34 seconds With regards to China specifically, production remains resilient despite weak demand. Crude steel production was 3:41 3 minutes, 41 seconds 950 million metric tons in CY25, down 5% yearon year, even as domestic steel demand continued to contract at 7% yearonear. 3:51 3 minutes, 51 seconds This growing gas signals persistent over supply. 3:56 3 minutes, 56 seconds With that context, exports reached a record high of 119 million tons in CY25 with surplus steel entering global 4:04 4 minutes, 4 seconds markets to compensate for continuing demand weakness primarily in real estate construction. 4:11 4 minutes, 11 seconds Coming on to India, the country continues to assert itself as the world's fastest growing major steel market with domestic demand projected to 4:19 4 minutes, 19 seconds expand by 7.4% in 2026 and accelerate further to 9.2% 2% in 2027. 4:27 4 minutes, 27 seconds This outlook is underpinned by broad-based strength across all key steel consuming sectors, infrastructure-led art construction activity, the automotive sector, a 4:36 4 minutes, 36 seconds broader industry capex cycle, and a nationwide rail network expansion plan. 4:41 4 minutes, 41 seconds These demand fundamentals are well reflected in FI26 with finished steel consumption rising 8% yearonear to 164.2 4:49 4 minutes, 49 seconds 2 million tons and crude steel production expanding 11% year on year. 4:56 4 minutes, 56 seconds At a quality level, Q4 FI26 sustained this trajectory with finished steel consumption at 44.6 million tons and crude steel output at 44.7 million tons. 5:08 5 minutes, 8 seconds This reflects growth rates of 10% and 5% respectively over Q3 FI26 underscoring India's steel demand 5:16 5 minutes, 16 seconds recovery. It is also important to recognize that India has now become a net exporter of steel with.1 million tons in FI26. 5:25 5 minutes, 25 seconds It is important to note that the safeguard duty on flat steel imports stepped down from 12% to 11.5% effective April 21, 2026. 5:37 5 minutes, 37 seconds Turning to Gindle Steel, FI26 has been an exciting milestone year in terms of project execution and capacity expansion. During the year, we made 5:46 5 minutes, 46 seconds significant progress on the Angul expansion. As you would recall, this plan is to increase the iron making capacity by 6.6 million tons through BF2 5:55 5 minutes, 55 seconds or 4.6 million tons, which is operational, and DR2 of 2 million tons, which is under construction. At a steel 6:03 6 minutes, 3 seconds making level, capacity was increased by 6 million tons with BF2 and BF3 each at 3 million tons. 6:09 6 minutes, 9 seconds The coal rolling complex of 1.2 2 million tons peranom enhances the ginsel steel product portfolio and supports margin improvement through higher value 6:17 6 minutes, 17 seconds added products. On the power side, we commissioned the 150 megawatt Shri Bumi power plant consisting of two modules of 525 megawatt each. 6:28 6 minutes, 28 seconds The coal 5 conveyor belt between the thermal coal mine in Otkali and Angul is operational now on the slurry pipeline from Burbell to Angul. This challenging 6:36 6 minutes, 36 seconds project is close to completion now. The pipeline is expected to be commissioned in this quarter Q1 FY27. 6:45 6 minutes, 45 seconds Overall, as mentioned earlier, the Angul expansion has taken our company's total steel making capacity from 9.6 million 6:52 6 minutes, 52 seconds tons peranom to 15.6 million tons peranom. 6:58 6 minutes, 58 seconds During the year, we have continued to progress our integrated raw material strategy. We have been declared the preferred bidder for Takarani A1 in 7:05 7 minutes, 5 seconds Oisha for thermal coal. You may recall at the end of last year we were awarded the Sardapur Jaltab East colon block. 7:14 7 minutes, 14 seconds For FI26 production volume was 9.25 million tons and sales was at 8.68 million tons representing an increase of 14% and 9% respectively. 7:25 7 minutes, 25 seconds For Q4 FY26, production volume was 2.65 65 million tons representing quarteron quarter growth of 6%. And yearon-year 7:34 7 minutes, 34 seconds growth of 26% and sales volume was at 2.62 million tons representing a quarteron quarter growth of 15% and 7:43 7 minutes, 43 seconds yearon-year [clears throat] growth of 23%. 7:49 7 minutes, 49 seconds This performance reflects a strong ramp up at Angul and improved capacity utilization across operations including 7:55 7 minutes, 55 seconds Ryer. Dispatches have also improved in line with a stronger demand environment. 8:01 8 minutes, 1 second Overall, we have achieved a balanced sales mix across product categories with focus on optimizing realizations by moving our product mix towards higher value added products. 8:14 8 minutes, 14 seconds Coming on to the financial performance in FI26, Jinder Steel reported consolidated gross revenue of 62,412 8:21 8 minutes, 21 seconds crores, an increase of 8% compared to FI25. 8:25 8 minutes, 25 seconds Consolidated adjusted AIDA was 9,99 Kores and on a per ton basis the adjusted Aida was 10,482 8:35 8 minutes, 35 seconds rupees per ton compared to 11,712 rupees in FY25. 8:41 8 minutes, 41 seconds The profit after tax for the year is 3,361 crores, a growth of 18% over last year and a corresponding earnings per 8:49 8 minutes, 49 seconds share of 33 rupees. The board of directors has recommended a final dividend of 2 rupees per share. 8:58 8 minutes, 58 seconds For Q4 FI26, consolidated gross revenue was 19,399 crores compared with 15,172 crores in Q3 FI26, a growth of 28%. 9:12 9 minutes, 12 seconds In addition to the expansion ramp up volumes, HRC and TMG rebar prices recovered strongly during the quarter, 9:19 9 minutes, 19 seconds although the benefits were partially offset by an increase in cooking pool prices. The blended ASP has increased by 4743 per ton on a sequential basis. 9:31 9 minutes, 31 seconds Consolidated adjusted Aida for the quarter was 2,647 Kores and an adjusted Aida per ton of 10,93 rupees. 9:41 9 minutes, 41 seconds Profit tax for the quarter was 1,41 crores. 9:47 9 minutes, 47 seconds Until the previous quarter, the Australian assets were under care and maintenance. This quarter we have closed the shaft and the reserves are no longer 9:54 9 minutes, 54 seconds accessible although we still have the license. Accordingly we have recognized an impairment of rupees 1433 kores which 10:03 10 minutes, 3 seconds equates to 159 million US in the standalone business and rupees $834 10:10 10 minutes, 10 seconds kores which equates to $93 million in the consolidated results. 10:16 10 minutes, 16 seconds Overall, the ramp up of the expanded Angul facility along with a commitment to ongoing operating efficiencies and customer focus will drive our financial performance in the quarters to come. 10:30 10 minutes, 30 seconds As of 31st March 2026, consolidated net debt was 16,19 crores with a net debt to 10:36 10 minutes, 36 seconds a bida of 1.66 66 and debt to equity of 43x. [clears throat] With a ramp up of new capacities and corresponding 10:45 10 minutes, 45 seconds improvement in operating cash flows, we expect leverage metrics to normalize by Q2 FY27. We remain committed to 10:52 10 minutes, 52 seconds maintaining a disciplined capital structure whilst funding our sustainance and future growth initiatives. 11:00 11 minutes During FI26, we have invested a further 9,574 crores out of the total planned capex program of 47,043 crores. 11:10 11 minutes, 10 seconds Along with the 25,924 crores already invested up to FI25, the remaining capex program is 11,544 crores. 11:22 11 minutes, 22 seconds It is interesting to note that from FI22 to FI26 net debt increased from rupees 8,876 11:29 11 minutes, 29 seconds crores to rupees 16,19 crores which is 7,143 crores more and during the same time we 11:37 11 minutes, 37 seconds have invested rups 35,498 crores in the current capex program which reflects the strong internal 11:45 11 minutes, 45 seconds acrual allocation we've been able to do to the cap capital allocation framework. 11:52 11 minutes, 52 seconds We are making strong progress on our AI and digital transformation journey. From upskilling our workforce and deploying AI powered digital agents to running 12:01 12 minutes, 1 second smarter and increasingly autonomous plants, we are building Jindel Steel into a truly intelligent enterprise. Our 12:09 12 minutes, 9 seconds Jarvis which stands for Jindel AI for real-time visibility intelligence and systems platform unifies production 12:16 12 minutes, 16 seconds sales and business data into one thinking layer. While investments in robotics end to end digitally integrated 12:24 12 minutes, 24 seconds systems ensure that our business processes are safe, connected and future ready. 12:33 12 minutes, 33 seconds General Steel's ESG journeys runs in four clear phases. 12:37 12 minutes, 37 seconds Through FI30, we are building site level control systems and credible reporting foundations. By 2030, we target a 30% 12:45 12 minutes, 45 seconds CO2 in intensity reduction, 50% renewable energy and full biodiversity coverage across all sites. The 2030 to 12:54 12 minutes, 54 seconds 2040 decade will scale hydrogen circularity and CCS infrastructure. 12:59 12 minutes, 59 seconds By 2047, our goal is net zero emissions, zero waste, and net positive biodiversity. 13:08 13 minutes, 8 seconds We were pleased to have our sustainability efforts recognized during the year with S&P Global raising our ESG 13:14 13 minutes, 14 seconds score from 37 on 100 to 74 on 100 and our CSA score improved from 3272. 13:24 13 minutes, 24 seconds Looking ahead, we expect continued ramp up of the new capacities in Angul to drive volume growth. Steel demand in India is expected to remain reasonably 13:33 13 minutes, 33 seconds strong, supported by infrastructure development and construction activity. 13:37 13 minutes, 37 seconds Steel prices have shown recovery in recent months and are expected to remain supportive in the near term. Although wrong cost, particularly poking coal, may remain volatile. 13:48 13 minutes, 48 seconds With that context, a production plan for FI27 is 11 to 11.5 million tons and sales between 10 and a half to 11 13:55 13 minutes, 55 seconds million tons. For QY FI27, we expect cooking coal prices to increase by 20 to $25 per ton sequentially. 14:05 14 minutes, 5 seconds Thank you. 14:12 14 minutes, 12 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 14:22 14 minutes, 22 seconds If you wish to remove yourself from the question Q, you may press star and two. 14:27 14 minutes, 27 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 14:39 14 minutes, 39 seconds Our first question comes from the line of Jashandep Chhatta from Namura. Please go ahead. 14:47 14 minutes, 47 seconds Hello. Yeah, thank you for the opportunity and congratulations sir for a very good set of numbers. Uh my first question is on realization. We see that 14:56 14 minutes, 56 seconds realization has improved in the fourth quarter. Uh the steel values continue to improve in the first quarter as well. So 15:04 15 minutes, 4 seconds I wanted to understand uh have your contracts been reset on the higher uh you know realizations and what will be 15:12 15 minutes, 12 seconds the impact of your or the uh you know what will be the impact on realization in the first quarter and any comment on 15:19 15 minutes, 19 seconds the re uh recent dip in steel prices. Uh that that will be my first question. 15:31 15 minutes, 31 seconds Thank you for your question. So two things uh we have a mix in a order book of spot selling as well as uh 15:38 15 minutes, 38 seconds contractual uh selling. So typically in a rising market and a falling market there is usually a lag also in the 15:46 15 minutes, 46 seconds system. Uh so you can see that has increased uh significantly and considerably in the last quarter. Uh I 15:53 15 minutes, 53 seconds think second part of your question was more related to you seeing a slight dip in the market. Uh yes, but we still feel that the at the moment the market's 16:02 16 minutes, 2 seconds holding firm and there's nothing to worry about on that front. Uh and we do have contracts uh on the earlier prices as well which are continuing which will 16:10 16 minutes, 10 seconds continue to support us as we move ahead in this quarter. Thank you. 16:15 16 minutes, 15 seconds Great sir. Thank you so much. Uh so it means the realization will remain strong. And my second question uh is 16:22 16 minutes, 22 seconds with BF uh you know commission uh making capacity commission uh with flurry pipeline expected to come in first 16:30 16 minutes, 30 seconds quarter and then convey belts also uh largely commission what will be our uh 16:36 16 minutes, 36 seconds you know gender sees capacity uh uh sorry capex uh out there for f 27 and 28 16:44 16 minutes, 44 seconds and which are the key projects now which are left and n28 is uh will it be fair to say that now Jill has been looking 16:52 16 minutes, 52 seconds more at asset shaping than any you know further capacity expansion in the next couple of years 17:00 17 minutes that's a lot of questions in one question okay let me try and break it up so the first I I'll start reverse I 17:07 17 minutes, 7 seconds think you're 100% right we at we finished our capex so more or less finished our capex program our focus is on sweating the assets and getting 17:14 17 minutes, 14 seconds returns out of them so bang on on that uh another question you had is I think our guidance has been fairly clear that we'll be allocating 7 a half th000 to 17:23 17 minutes, 23 seconds 10,000 kores to our uh capital uh expansion programs or sustainance capex as we call it. So I think that broadly 17:31 17 minutes, 31 seconds answers your question. If I've missed any part of the question feel free to go ahead. 17:38 17 minutes, 38 seconds Thank you. Participants in the interest of time and fairness to others please restrict yourselves to two questions. 17:45 17 minutes, 45 seconds For any more questions, you may rejoin the queue. 17:49 17 minutes, 49 seconds Our next question comes from the line of Daran Meta from Dalat Capital. Please go ahead. 17:57 17 minutes, 57 seconds Yes sir. Uh thanks for giving the opportunity. Uh so my uh first question was uh basically we had earlier 18:05 18 minutes, 5 seconds indicated shift to high uh through uh throughputs and low margin products in Q3. However, since that even in Q4, our 18:14 18 minutes, 14 seconds share of value added products has fallen Q. So, can you just provide any timeline that by what time should we be able to 18:22 18 minutes, 22 seconds recalibrate towards higher value added products and what is the target value added mix uh for FI27? 18:35 18 minutes, 35 seconds So, I think our thought process on this is uh fairly clear. At the moment we are ramping up our facilities and whilst in 18:42 18 minutes, 42 seconds ramp up our primary goal is first to achieve capacity utilization and once we start achieving capacity the desired 18:49 18 minutes, 49 seconds capacity utilization numbers we start uh going towards the mix optimization. So that's the way we approaching it. So I 18:57 18 minutes, 57 seconds think you're going to see a little bit of movement in the first two quarters of this year and then it stabilization in the second half of the year. 19:05 19 minutes, 5 seconds Sure sir. So, and would you like to call for any one-off uh startup uh cost in this quarter? 19:13 19 minutes, 13 seconds Which quarter? Last quarter or this quarter? No, this Q4. 19:18 19 minutes, 18 seconds It was all u I think most of the startup costs were covered in Q3. There was some end of it which was there in Q4 but 19:26 19 minutes, 26 seconds it's not anything which is significant and it's all done now. Okay. Okay. Thank you sir. 19:33 19 minutes, 33 seconds Thank you. The next question comes from the line of Vikas Singh from ICICI securities. Please go ahead. 19:42 19 minutes, 42 seconds Good afternoon sir and thank you for the opportunity sir. Can you tell us the contract versus spot sales mix uh uh 19:51 19 minutes, 51 seconds this quarter and expected in the 1. And uh the another question would be the product mix changes uh impact on your 19:59 19 minutes, 59 seconds overall realization because as we see the sequential jump was much higher than what you have realized this quarter. So 20:06 20 minutes, 6 seconds if you could just uh elaborate on that point for us Vicas hi this is Vishal here for any 20:16 20 minutes, 16 seconds data related questions I'll connect with you offline and can you please repeat the second part of your question? So our product makes changing towards more on 20:24 20 minutes, 24 seconds HRC. So obviously it's a slightly on a blend based deterating. 20:32 20 minutes, 32 seconds So just wanted to understand the product mix change versus the realization uh ratio impact. Basically how should we 20:39 20 minutes, 39 seconds look at the going forward realization increase uh basic 20:46 20 minutes, 46 seconds see I think u I would stay away from saying uh the word deterating. Um yes we 20:53 20 minutes, 53 seconds are increasing our flat sales and you picked up correctly on the especially on the HR side and over there also we continue to expand our value added 21:02 21 minutes, 2 seconds portfolio. Along with that we have the downstream facilities which will actually add more capability and more uh niche products downstream which will 21:10 21 minutes, 10 seconds also add to our realization and our value addition uh program and our ratios on that. Uh in terms of how the numbers 21:18 21 minutes, 18 seconds will pan out I think earlier our teams have already spoken about it. I think today we around 5050%. Uh flat sales will increase in times to come and move 21:26 21 minutes, 26 seconds towards 70% uh odd as we move ahead. 21:31 21 minutes, 31 seconds Noted any update on the FY27 Netflix in the production guidance as well as the 21:39 21 minutes, 39 seconds benefits which we are going to receive from the infrastructure projects combined. 21:46 21 minutes, 46 seconds I think the guidance I've given infrastructure I so uh because if you're specifically referring to any project as 21:54 21 minutes, 54 seconds such because we have already just announced the FI27 production and sales guidance at 11 11 and a half% 11 to 11 22:03 22 minutes, 3 seconds and a half million tons of production and 10 to 10 and a half to 11 million tons of sales. 22:09 22 minutes, 9 seconds Yeah, that I see on your presentation. I think this was on a slide five. Uh infrastructure related if you can tell 22:17 22 minutes, 17 seconds me the slurry pipeline and the ports facility how much uh savings we are actually building it from those two projects. 22:26 22 minutes, 26 seconds So I think of slurry we've been clear in the past slurry will come online and it'll start delivering in this financial 22:33 22 minutes, 33 seconds year and uh roughly about 700 rupees is the savings that we indicated on that and if you want to take it to a per ton 22:41 22 minutes, 41 seconds basis on steel level it'll be roughly about 750 to,000 rupees uh as we ramp up. 22:48 22 minutes, 48 seconds No sir thank you and all the best. 22:52 22 minutes, 52 seconds Thank you. The next question comes from the line of Kiran Nike from Modi Fencap. Please go ahead. 23:01 23 minutes, 1 second Thank you for giving me an opportunity. 23:07 23 minutes, 7 seconds Excuse can you hear me sir? Please go ahead. Yes, we can. Hello. 23:16 23 minutes, 16 seconds Yes, we can hear you. 23:18 23 minutes, 18 seconds So, thank you. So uh can you give me a guidance for revenue growth for FI27? 23:27 23 minutes, 27 seconds I think we've given you the guidance for our sales and production numbers. Uh and uh I think revenue is a function of a 23:34 23 minutes, 34 seconds lot of other things. So uh we'll stick with that for the time being and EITA margin will be how much for 27. 23:46 23 minutes, 46 seconds So uh Ken Eida is a function of several things uh a lot of which includes raw material and the pricing which remains outside our control 23:55 23 minutes, 55 seconds and also I'd like to add I think if you look at our performance over the years and quarters largely we've been a very robust and a consistent performer on IDA 24:04 24 minutes, 4 seconds uh numbers as well as uh percentages. So I think that should uh provide enough confidence uh for you to take uh guidance from that. 24:15 24 minutes, 15 seconds Thank you sir. Thank you sir. 24:18 24 minutes, 18 seconds Thank you. The next question comes from the line of Satya Jen from Ambit Capital. Please go ahead. 24:27 24 minutes, 27 seconds Hi, thank you. Um the first question on the write downs um in um I'm not sure if you miss me in the prepared remarks. 24:34 24 minutes, 34 seconds what you um write down in uh JPML and um in Bologong. 24:44 24 minutes, 44 seconds Hi this is Silar. So basically we have written down or the W symbolization 24:51 24 minutes, 51 seconds Australian asset by 834 cr mainly because you know we are going to uh 24:59 24 minutes, 59 seconds close that mine so we have already closed the shaft and that's why it took the heat of around 834 crores or India 25:08 25 minutes, 8 seconds level if you can see that we have already priced out around 1,433 three during the quarter. 25:20 25 minutes, 20 seconds So uh the remaining loans that you have um is it fair to say that there would be no additional write downs now? 25:27 25 minutes, 27 seconds So that's that's right. So we don't expect any further write down this is represented by the independent valuation done by agency. 25:39 25 minutes, 39 seconds Okay. And uh just on the role uh rail brakes uh that the company was going to buy, what is the current uh position? 25:49 25 minutes, 49 seconds How many rail brakes have already been acquired? How many are there? 25:57 25 minutes, 57 seconds So we are about uh I think our rail break program was about 79 rakes. We at about 72 rates and the remaining rates also very soon getting delivered. So I 26:07 26 minutes, 7 seconds think in the next 2 three months we should be all in. Okay. Thank you so much. 26:15 26 minutes, 15 seconds Thank you. The next question comes from the line of Mitesh from HSBC bank. Please go ahead. 26:27 26 minutes, 27 seconds Mitesh. Please go ahead with your question and kindly unmute your line in case if you're on mute. 26:35 26 minutes, 35 seconds Since we don't have a response, we'll move to the next participant. The question comes from the line of Somaya V from Aventus Park. Please go ahead. 26:46 26 minutes, 46 seconds Thanks for the opportunity sir. Um so my first question is on iron or so if you could just help with uh the kind of pricing trends that we saw last quarter 26:55 26 minutes, 55 seconds and also in terms of captive versus uh outside uh by if you could give us a mix uh and also possible uh a mine level 27:05 27 minutes, 5 seconds tensa and the new mine. 27:16 27 minutes, 16 seconds Okay. So I think mine level uh uh you can take it offline with Vashad but largely speaking we saw that the pricing 27:24 27 minutes, 24 seconds was more or less uh stable and our mix is about 6040 27:31 27 minutes, 31 seconds uh 60 captive that's that's 60 cap 40 cap 27:40 27 minutes, 40 seconds uh sir also in terms of incremental volumes that we are bringing in this year so uh in terms of mass markets, how do we plan to uh are we going to go into 27:49 27 minutes, 49 seconds newer markets uh or in the existing markets we have the uh headroom to kind of uh have this uh sales put in? So how 27:56 27 minutes, 56 seconds do we see in terms of this incremental 2 million tons versus last year uh in terms of placing in markets and which which markets would be to be more in the 28:04 28 minutes, 4 seconds eastern or will we have to move uh to new markets? 28:08 28 minutes, 8 seconds So I think uh there are a couple of uh ways we looking at this. Firstly uh with a wide product portfolio and the fact 28:17 28 minutes, 17 seconds that we have a very rich value arithmetics and value addition is actually in our DNA. We are able to cross-ell products to existing customers 28:24 28 minutes, 24 seconds and we become a good natural choice for them to start buying uh other products also which we've just launched from us. 28:32 28 minutes, 32 seconds So we become kind of a more or less quote unquote one-stop shop for them for a large portion of the portfolio. Uh second part I think you're talking about 28:41 28 minutes, 41 seconds which markets uh I think that's more difficult to answer but uh we continue to remain focused on what we define as 28:49 28 minutes, 49 seconds our strategic markets and our strategic markets where we get we have strong presence where usually closer to where 28:56 28 minutes, 56 seconds we are and also markets which tend to be larger in size. So that's the way we look about it. But generally you're 29:03 29 minutes, 3 seconds thinking that our customers actually benefit from cross-selling opportunities that we bring on the table now. 29:11 29 minutes, 11 seconds Okay. So on the mining as so if you could just help us uh you could speak about Australia uh in terms of Mozambi 29:18 29 minutes, 18 seconds and South Africa. So what are the kind of contribution that we have had in this quarter and also with respect to the Australian asserts is there any is there 29:27 29 minutes, 27 seconds any cash flow u you know you mentioned that u winding down of assets. So is there any cash outflow that uh is 29:35 29 minutes, 35 seconds required from our side uh by the time this kind of gets to so I will take your question. So 29:43 29 minutes, 43 seconds basically as you say regarding the Australian mine so hardly we have the since we have already closed and we have 29:52 29 minutes, 52 seconds retained lot of people so we have very minimal uh expenditure cash flow there. 29:58 29 minutes, 58 seconds So that that is one question and regarding our mojabing file. So we have 30:05 30 minutes, 5 seconds clearly we are operating a positive level. So we are getting all the nine calls from there to our for our captain. 30:14 30 minutes, 14 seconds Hope that and South Africa also. 30:19 30 minutes, 19 seconds Yeah South Africa also. South Africa also is operating but uh due to some 30:25 30 minutes, 25 seconds local issues so we are not aita positive but that mine is operating at 30:33 30 minutes, 33 seconds so maya just to add to it [clears throat] if you look at the entire big picture of the overseas acid uh mine base the only place where we 30:42 30 minutes, 42 seconds have taken the large part of the write down is on Australia rest of the mines on a net basis are functioning on an IITA positive largely. 30:52 30 minutes, 52 seconds Got it. Sure. Thank you. 30:55 30 minutes, 55 seconds Thank you. The next question comes from the line of Amit Mora from Access Capital. Please go ahead. 31:05 31 minutes, 5 seconds Yeah. Hi. Uh thanks for the opportunity. 31:08 31 minutes, 8 seconds Uh just uh two questions. Firstly u on the thermal uh captive power plants. uh 31:16 31 minutes, 16 seconds just wanted to understand when do we expect the ramp up on those capacities and uh what really is the strategy on the power uh production from there. I 31:24 31 minutes, 24 seconds believe you will have some excess power capacity at hand once you fully ramp up uh these the expanded power capacities 31:33 31 minutes, 33 seconds or will you be looking to sell in the merchant market or will you just uh think of using it for capital consumption? 31:42 31 minutes, 42 seconds So I think the ramp up will be complete between uh the first within the first half of this year. Uh in terms of the excess power, yes, we intend to sell it. 31:53 31 minutes, 53 seconds But if you look at the overall picture and the financials, u it's it's not really material to that. Uh but it does two three things. One, obviously we can 32:01 32 minutes, 1 second sell the excess power, but it gives us stability of power for our assets and it gives us redundancy of power for our 32:08 32 minutes, 8 seconds facilities as well. So that's the way to think about it. But yes, it will contribute to the bottom line but it's not material. 32:16 32 minutes, 16 seconds Understood. And also is it fair to say that now there'll be no excess sale of sale of byproducts going ahead with the 32:23 32 minutes, 23 seconds ramp up in steel uh capacities happening now. Yeah, that's right. 32:30 32 minutes, 30 seconds Okay. And just very uh lastly like you are also looking to increase your EC capacity for some of the mines which I believe is still pending. So when is that expected to come through? 32:43 32 minutes, 43 seconds It's underway. I think uh pinpointing a date will be difficult but the process is underway and it's working fairly well 32:51 32 minutes, 51 seconds and at the moment uh with the current capacities I think within that also be fairly comfortable. 32:59 32 minutes, 59 seconds Okay, unders. Yeah, that's it for me. Thank you. 33:03 33 minutes, 3 seconds Thank you. The next question comes from the line of Saras Singh from Tun Securities. Please go ahead. 33:11 33 minutes, 11 seconds Um hi [clears throat] uh thank you for taking my question. Uh so two questions uh first is wanted your input on the 33:18 33 minutes, 18 seconds overall steel demand in India uh especially uh with the ongoing inflationary uh trends that we are seeing across commodities. Uh are we 33:27 33 minutes, 27 seconds hearing some kind of uh delays in capeex uh executions across both uh public and private uh companies? 33:38 33 minutes, 38 seconds No, nothing like that. I think it's fairly healthy. I think I indicated towards the 9 9 and a half% market increase that we expecting and uh with 33:47 33 minutes, 47 seconds the kind of infrastructure program that we're rolling out, we don't see any uh issues on that side. 33:56 33 minutes, 56 seconds Got it. Uh second question is uh actually on the timeline of the ramp up of uh the slurry pipeline. So if it gets 34:04 34 minutes, 4 seconds uh um the project uh gets onboarded uh in Q1 uh so by when can we expect a full 34:12 34 minutes, 12 seconds uh 100% ramp up or at least at the uh at the level of 750 to,000 rupees uh per ton of uh steel uh uh savings. 34:25 34 minutes, 25 seconds See full utilization will not happen this year because uh this utilization will increase as the other facilities 34:32 34 minutes, 32 seconds that we have coming up in the future also come online um namely PP2. So but in terms of savings whatever material we 34:41 34 minutes, 41 seconds bringing in we will save on that material per ton basis as I indicated that is not a function of uh how much uh utilization we have. 34:51 34 minutes, 51 seconds Got it. That's all from my side. Thank you. 34:55 34 minutes, 55 seconds Thank you. The next question comes from the line of Rashie from Cityroup. Please go ahead. 35:01 35 minutes, 1 second Thank you. What was the NSR increase during the quart of Psequentially? 35:09 35 minutes, 9 seconds Just indicated uh the ASP increases is about 4,700 rupees per Okay. And spot versus what we saw in the 35:17 35 minutes, 17 seconds fourth quarter. Then how much upside is there for realizations to go up to where sport is at the moment? 35:23 35 minutes, 23 seconds talking about Q1, Q1 and going forward as in if if Q2 will be higher than Q1 then Q1 Q2 basically 35:31 35 minutes, 31 seconds how much more upside do we have on regulations I think predicting the market will be uh difficult but all I can tell you is that 35:38 35 minutes, 38 seconds the market's holding up uh it's healthy and uh as I indicated because of the way we do our product mix and our contract 35:46 35 minutes, 46 seconds mix um we are in a comfortable position at the moment okay then on the cost side in the Last quarter that's the third quarter you had 35:55 35 minutes, 55 seconds a onetime startup cost of about 1,500 rupees a ton and you indicated that there was something this quarter as well. So what is the total quantum you 36:04 36 minutes, 4 seconds know or this quarter what is the income 125 crores that was as I indicated earlier as I 36:12 36 minutes, 12 seconds indicated earlier um it's done now so we can expect a reversal of this entire thing going forward 36:21 36 minutes, 21 seconds it's a cost cost uh can't be reversed no as in it won't recur and that was oh yeah that's what it's over. 36:30 36 minutes, 30 seconds Yeah. One. 36:32 36 minutes, 32 seconds Yeah. Okay. And the cooking goal cost increase during this quarter was how much? $20. About $9. Yes. 36:38 36 minutes, 38 seconds Okay. Thank you. 36:41 36 minutes, 41 seconds The next question comes from the line of Indrajit Agarwa from CLSA. Please go ahead. 36:49 36 minutes, 49 seconds Uh hi, a couple of questions. Uh given that our flat steel exposure is rising, uh what kind of end markets are we 36:56 36 minutes, 56 seconds tracking? uh in terms of segments is it more autos discretionary what kind of end markets are we already talking 37:05 37 minutes, 5 seconds always sorry first of all thank you for your question we've been maintaining that we are an infrastructure organization and we also wrapping up our 37:13 37 minutes, 13 seconds facilities our focus would be largely led you know would be on infrastructure sector followed by building and construction and then of course into the 37:21 37 minutes, 21 seconds downstream facilities then followed with the automobile sector So do we need uh some kind of approvals 37:28 37 minutes, 28 seconds from the consumers on these or fresh approvals from the consumers on these or what we have is good enough for now. 37:36 37 minutes, 36 seconds Uh see our HSM has gone very well in terms of getting the approvals and we have developed all the grades which are needed for all the niche products. We in 37:44 37 minutes, 44 seconds the process of ramping them up in this quarter and going forward also. And to add on to that, I think if you think uh 37:51 37 minutes, 51 seconds the thing to look at over here is this is not something which will hold our plans. Uh we are well positioned to execute our plans going forward. 38:00 38 minutes Sure. And lastly, if you can give the flat and long mix for 4Q and FI26 as a whole, 38:12 38 minutes, 12 seconds 52% flat, 48% long. Yes. for the full year. 38:20 38 minutes, 20 seconds This is for the Q4 and full year. 38:26 38 minutes, 26 seconds Sorry, for the full year FI26 14 951. 38:35 38 minutes, 35 seconds Sorry. 38:47 38 minutes, 47 seconds Are your questions answered? Endrilit. Yes. Thank you. Thank you. 38:53 38 minutes, 53 seconds The next question comes from the line of Pratik Singh from IFL Capital. Please go ahead. 38:59 38 minutes, 59 seconds Hi. Uh thanks for the opportunity. Uh wanted to get a sense about the metallic balance right now. Uh as the DR plant is yet to commission. So understand that we 39:08 39 minutes, 8 seconds have 15 million tons of uh iron making and 15.6 6 million tons of uh crude steel making. So uh is there any plan to 39:17 39 minutes, 17 seconds uh buy DR or other metallics outside and produce more this year or that's something uh we won't be looking at and 39:24 39 minutes, 24 seconds DR plans once it comes up it will it is the only one which will be contributing to our arithmetic facilities. 39:31 39 minutes, 31 seconds So uh Pratik Vishal here so as you must have noted that we have already announced our guidance for the production and sales volume for this 39:40 39 minutes, 40 seconds year. So that would explain the kind of uh volumes that we are looking up and how we uh plan to deliver as and when 39:47 39 minutes, 47 seconds our DR comes up which obviously is under construction phase we will have more metallics and for the next year the volumes will continue to ramp up. So I 39:55 39 minutes, 55 seconds would suggest you know if you can take the current guidance and work accordingly that would be great. 40:01 40 minutes, 1 second Understood. And uh given that we have seen price increase in 4Q sequentially every month, fair to assume that the 40:10 40 minutes, 10 seconds current uh NSRS would be or current ASPs would be still higher than what we delivered in uh 4Q. 40:20 40 minutes, 20 seconds It is uh but u yeah it's it's holding strong. it is higher and uh at the moment we don't see anything which is 40:28 40 minutes, 28 seconds otherwise understood. Thanks and all the best. 40:35 40 minutes, 35 seconds Thank you. The next question comes from the line of Rajesh Ravi from HTFC securities. Please go ahead. 40:43 40 minutes, 43 seconds Hi, good afternoon. Uh my first question pertains to this tax impact of the eight particular write down in Australia. So 40:50 40 minutes, 50 seconds has it have any tax impact on the uh reported P&L? 40:57 40 minutes, 57 seconds Yes, also whatever it uh we have written down 1,433 cr and that will save a uh tax on that. 41:09 41 minutes, 9 seconds Yeah. 41:09 41 minutes, 9 seconds So this 840 cr is net of taxes or this is uh before tax. 41:15 41 minutes, 15 seconds So 840 cr is on the Australia balance sheet. Yes. Australia. 41:20 41 minutes, 20 seconds Yeah. And India level we have written of 1,433 and that is subject to income tax benefit. 41:28 41 minutes, 28 seconds Okay. 41:28 41 minutes, 28 seconds So these are numbers these are gross numbers you can calculate the tax accordingly. Right. 41:35 41 minutes, 35 seconds Understood. And second is on the value added product share has come down to around 61%. From 66% Q on Q. Just wanted 41:43 41 minutes, 43 seconds to understand uh the uh pricing gain versus the uh you know average price increase for steel. Uh uh is it because 41:53 41 minutes, 53 seconds uh this was taper down also on account of lower share of value added product. 42:01 42 minutes, 1 second No I think I indicated earlier that as we ramping up we're going to focus on both the things capacity utilization as 42:07 42 minutes, 7 seconds well as the value ad mix. uh what you need to also appreciate that you know uh value addition and value added products 42:16 42 minutes, 16 seconds is something which is built into our DNA and we continue to focus on that and in times to come it'll come back to its uh normal robust levels and improve 42:24 42 minutes, 24 seconds further. Uh we also have additional capacities in our flats in the plate segment on our heat treated plates which 42:32 42 minutes, 32 seconds are doing very well and they're also growing. So that will also add to a value added mix. 42:38 42 minutes, 38 seconds Understood. And uh versus steel prices uh you know what would be the uh you know concurrent increase that we have 42:45 42 minutes, 45 seconds seen in the uh which we can expect for cooking coal and iron prices in Q1 42:55 42 minutes, 55 seconds uh poking coal I've already indicated is going to be about 20 to $25 uh increase in this quarter 43:02 43 minutes, 2 seconds and for eron that's difficult to predict it's a monthly thing that happens so it's it's fairly difficult to predict uh without 43:10 43 minutes, 10 seconds any basis current price for April basis April prices at least it's plus minus 150 rupees here and 43:18 43 minutes, 18 seconds there so that's how it moves but anything beyond that is very difficult to articulate understood understood and lastly when you mention the slurry pipeline 750 43:26 43 minutes, 26 seconds rupees per saving once fully ramped up this is on the company level saving Yes. 43:39 43 minutes, 39 seconds Sorry, at steel level. Okay, understood. 43:43 43 minutes, 43 seconds Great. Thank you. I'll come back in queue. 43:46 43 minutes, 46 seconds Thank you. The next question comes from the line of Mitesh Sha from HSBC Bank. Please go ahead. 43:55 43 minutes, 55 seconds Hello. Am I audible? Yes, Mesh. Please go ahead. 43:58 43 minutes, 58 seconds Yeah. Hi, this is Finakin over here from HSBC. Uh, so a couple of questions. 44:02 44 minutes, 2 seconds First, can you give us a timeline of what are the key projects which will be commissioned in S27 and 28? 44:13 44 minutes, 13 seconds I think the projects uh slurry will be commissioned in this quarter. Uh we already indicated ports will be commissioned and we have two projects 44:22 44 minutes, 22 seconds left uh which we had indicated for this financial year which were DRRi2 and PP2. 44:27 44 minutes, 27 seconds Sure. So the DRRi plant is what Q2 Q4 how should we look at it? 44:34 44 minutes, 34 seconds It's towards the end of the year. 44:37 44 minutes, 37 seconds Okay. Uh second is the if you look at Q4 volume sales of 2.62 and the guidance uh effectively it's fair to say that the Q4 44:46 44 minutes, 46 seconds sales uh is going to be the run rate for this year. I mean sequentially uh unlikely to see any big pickup in sales volume. 44:56 44 minutes, 56 seconds I think um you know the the market is seasonal so this factors in the seasonality as well. 45:03 45 minutes, 3 seconds Oh okay got it. Thank you very much. 45:07 45 minutes, 7 seconds Thank you. The next question comes from the line of Ashish Jen from Mcquaryi Group. Please go ahead. 45:15 45 minutes, 15 seconds Hi sir good afternoon. So my first question is you know a clarification this uh cost savings from slurry pipeline which you said is 750 rupees 45:24 45 minutes, 24 seconds per ton is on the full volumes full steel volumes of the company right like on like 10 11 million t kind of number 45:32 45 minutes, 32 seconds is that the weight of thing so earlier indicated that 700 rupees per ton of irono coming in which will 45:41 45 minutes, 41 seconds translate to that kind of a number but that is not dependent on it going towards the full utilization 45:53 45 minutes, 53 seconds Secondly, uh you know in terms of our raw material security uh you know where do we see arts you know moving in terms 46:02 46 minutes, 2 seconds of let's say in the next two years or so versus where we are on uh on thermal coing coal and iron 46:11 46 minutes, 11 seconds and by security I mean that integration yeah I think all our announcements ments are there. Uh the new mines are also 46:19 46 minutes, 19 seconds announced. So that's also available. So we have the coal mine and the iono mine as I indicated. And the current capacities are already I think in the 46:28 46 minutes, 28 seconds pack for each mine. So I if you want any further details I think Val can take it offline. 46:34 46 minutes, 34 seconds I'll turn to Val. Okay. Okay. Thank you sir. Thank you so much. 46:39 46 minutes, 39 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing remarks. 46:53 46 minutes, 53 seconds Thank you and uh once again thank you for joining us on a Saturday afternoon. 46:57 46 minutes, 57 seconds Uh overall Jindel Steel is well positioned to benefit from the ongoing industry dynamics and deliver sustainable growth in the coming years. 47:05 47 minutes, 5 seconds Uh thank you once again ladies and gentlemen. I I would like to invite you and thanks 47:14 47 minutes, 14 seconds Thank you sir. Ladies and gentlemen, on behalf of GM Financial Institutional Securities, that concludes this conference call. Thank you for joining 47:22 47 minutes, 22 seconds us and you may now disconnect your lines.