JSW Steel Ltd — Q4 FY26

JSW Steel Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=mPC_08F70lc Published: 14 hours ago

0:03 3 seconds Ladies and gentlemen, good evening and welcome to JSWT Limited Q4 FI26 earnings conference call. As a reminder, all 0:12 12 seconds participant lines will remain in listenonly mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should 0:19 19 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:27 27 seconds this conference is being recorded. With this, I now hand the conference over to Mr. Ashwin Bajaj, group head of investor relations. Thank you and over to you. 0:37 37 seconds Thank you operator. Very good evening ladies and gentlemen. Welcome to JSW's earnings call for Q4 and financial year 2026. We have with us today the management team represented by Mr. 0:48 48 seconds Jantara joint and CEO, Mr. G Sur, Chief Operating Officer, Mr. 0:55 55 seconds director of commercial and marketing and Mr. Sur the CFO. We'll start with opening remarks by Mr. Atara and then open the floor to Q&A. So with that over to you Mr. Dary. 1:07 1 minute, 7 seconds Yeah, thank you Ashwin. Uh good evening everyone. So FYI26 was a transformational year for JSW steel 1:14 1 minute, 14 seconds marked by strategic joint ventures with global steel majors, progress on steel making and downstream capacity 1:21 1 minute, 21 seconds expansions, enhanced raw material security and significant balance sheet deleveraging. In December 2025, we took 1:30 1 minute, 30 seconds a very important strategic step of advancing our long-standing partnership with JF Steel of Japan. We announced a 1:38 1 minute, 38 seconds 50/50 joint venture with them from for our BPSL steel business. The transaction has progressed as scheduled 1:47 1 minute, 47 seconds uh with the JV entity uh being formed uh by end of March and JF has brought in 1:54 1 minute, 54 seconds the first branch of their equity investment under the joint venture. This transaction entails a delvering of 2:01 2 minutes, 1 second approximately 37,000 crores for JSW steel out of which about 30,000 crores 2:07 2 minutes, 7 seconds has been completed at March end. JSW steel's balance sheet has transformed uh with operational uh uh improvements. 2:18 2 minutes, 18 seconds Uh our leverage has fallen to 1.81 as on 31st March and net debt stands at 54,000 2:27 2 minutes, 27 seconds crores. Our credit rating outlook has seen an uplift and we expect to see continued progress on this front. 2:37 2 minutes, 37 seconds As you are aware, we had also been working on a joint venture with POSCO South Korea. Last month, we have signed 2:44 2 minutes, 44 seconds a joint venture agreement with POSCO at this India South Korea summit in New Delhi to set up a green field integrated steel plant of 6 million tons in Orisa. 2:58 2 minutes, 58 seconds This transformation has set the foundation for our next phase of growth. 3:02 3 minutes, 2 seconds Uh India's uh continued strong growth in steel demand and our strong balance 3:08 3 minutes, 8 seconds sheet uh has enabled us to accelerate the uh growth plans. We have been 3:15 3 minutes, 15 seconds targeting a capacity of 50 million tons uh as we have been communicating in India by FI31. 3:21 3 minutes, 21 seconds We are now announcing a target of 62 million tons by FI32. 3:27 3 minutes, 27 seconds which can be achieved through our existing sites. In addition to this, uh the joint ventures of Jaf and POSCO will 3:36 3 minutes, 36 seconds have a cumulative capacity of 16 million tons by FY32. 3:41 3 minutes, 41 seconds Taking the total capacity in India along with joint ventures to 78 million tons. 3:47 3 minutes, 47 seconds Including our Ohio capacity of 1.5 million, the capacity would be close to 80 million tons. uh 3:56 3 minutes, 56 seconds uh for JSW steel and the joint venture entities put together. 4:01 4 minutes, 1 second Uh interestingly if we just look at uh the ranking of steel uh productions uh 4:10 4 minutes, 10 seconds uh US at number three and uh Japan at number four as a country uh produce 4:17 4 minutes, 17 seconds about 80 million tons. So this capacity would bring us uh uh to be one of the largest steel producing companies worldwide. 4:30 4 minutes, 30 seconds During the year we have announced an acquisition um of BMMPath in Karnataka 4:37 4 minutes, 37 seconds a.9 million t producer of long products which should complement our product basket 4:43 4 minutes, 43 seconds uh of long products. BMM is located at close proximity of about 50 kmters from our vijanager steel plant. It has land 4:51 4 minutes, 51 seconds available with expansion potential of.9 million ton to be expanded to 1.8 million ton at low specific investment 4:59 4 minutes, 59 seconds cost. Uh the expansions would focus on engineering specialized steel. Uh and this acquisition is expected to be completed by end of this financial year. 5:11 5 minutes, 11 seconds uh our expansions in um uh 1 million ton in Karapa and the first phase of 5 million ton at GSW Utkal which we 5:20 5 minutes, 20 seconds announced last year are progressing on on track. Uh we are announcing a further 5 million t expansion at Vijayagar which 5:28 5 minutes, 28 seconds will take the Vijanagar steel plant capacity to 25 million tons making it the world's largest single location 5:36 5 minutes, 36 seconds steel plant. Our growth strategy also focuses on value added products and during the year we have announced 5:45 5 minutes, 45 seconds several downstream projects across our various sites in order to maintain our share of BSP over 50%. 5:52 5 minutes, 52 seconds We have also taken big strides uh to enhance our raw material security. We have completed the acquisition of MDR highgrade cooking coal uh mines in 6:01 6 minutes, 1 second Mozanek. We have increased our effective uh uh interest in Ilawara cooking coal mine from 20 to 30%. On the Aronode 6:10 6 minutes, 10 seconds side, we have operationalized one new mine in Goa and we have won one uh additional mine in Goa in the last few days. 6:17 6 minutes, 17 seconds uh we had previously stated our uh target of achieving a 50% captive iron ore integration and 25% captive cooking 6:26 6 minutes, 26 seconds coal by FI31 at a 50 million steel capacity with the MDR acquisition we now expect to be 50% 6:35 6 minutes, 35 seconds captive for both cooking coal and ironor uh by uh FI31 6:44 6 minutes, 44 seconds u we would also target going forward to enhance our 6:50 6 minutes, 50 seconds u uh captive to meet the 50% share uh at 60 million 62 million tons capacity as well. 6:59 6 minutes, 59 seconds So thus the last year has truly been transformational. 7:04 7 minutes, 4 seconds Uh in uh slide eight of our presentation you will see that over the next decade India will be the key steel market 7:11 7 minutes, 11 seconds globally. China steel production and consumption as a share of global demand peaked out around 2020 and is expected 7:19 7 minutes, 19 seconds to see a gradual decline. Other markets will witness muted growth. India is going through a nation building phase 7:26 7 minutes, 26 seconds with steel being a key building block for growth. This creates a long runway for steel demand to outpace the real GDP 7:33 7 minutes, 33 seconds growth in the country. India as the second steel producer and consumer will continue to increase its share of global 7:40 7 minutes, 40 seconds steel consumption from about 9% currently to 16% in a decade. We believe production growth is likely to lag 7:49 7 minutes, 49 seconds consumption growth. JSW's strength and capabilities including human capital, digitalization and AI gives us the 7:57 7 minutes, 57 seconds confidence to grow steadily to meet this Indian opportunity. At the same time, we will stay prudent and focused on 8:04 8 minutes, 4 seconds creating shareholder value as we have done historically in the past. On the macroeconomic front, the global economic 8:13 8 minutes, 13 seconds growth outlook remains resilient with IMF forecasting global growth in 2026 at 3.1%. 8:22 8 minutes, 22 seconds And the outlook for 2027 at 3.2%. 8:26 8 minutes, 26 seconds This is despite the world economy facing elevated uncertaintity driven by geopolitical events particularly in the Middle East which is causing supply 8:34 8 minutes, 34 seconds disruptions. Inflationary risks increasing the pressure on interest rates. IMF however has flagged that 8:42 8 minutes, 42 seconds prolong continuation of this conflict could result in an impact on the GDP. 8:49 8 minutes, 49 seconds Even as global uncertaintities persist, India continues to grow uh to show strong growth momentum. Um the forecast 8:58 8 minutes, 58 seconds by RBI for FI27 uh is 6.9% reflects the strength of domestic fundamentals. 9:06 9 minutes, 6 seconds Uh with Indian growth demand remaining robust. 9:11 9 minutes, 11 seconds Uh India has shown resilience in sustaining growth and geopolitical shocks. uh such shocks are increasingly 9:18 9 minutes, 18 seconds becoming the new normal. Economic activity in India has picked up in the second half of the year supported by GST reforms. 9:26 9 minutes, 26 seconds Healthy rural indicators, strong credit growth, improving capacity utilization and traction across key sectors continue 9:36 9 minutes, 36 seconds to support the outlook. At the same time, risks such as energy price volatility and monsoon related uncertaintities needs to be monitored. 9:44 9 minutes, 44 seconds India's steel consumption also grew at a healthy rate of 7.9% in FI uh 26. 9:51 9 minutes, 51 seconds Um due to uh a large flow of imports in the uh past two years we have been a net importer uh with the imposition of 10:00 10 minutes safeguard duty last year steel imports have declined and exports have risen making India net exporter after 2 years 10:07 10 minutes, 7 seconds looking ahead domestic steel demand is expected to grow at a healthy rate of 7 to 9% in FY27 10:15 10 minutes, 15 seconds incrementally adding 12 to 14 million tons of demand in China steel production was down 4.6% 10:23 10 minutes, 23 seconds in quarter 1 outpacing the 4.2% 2% decline in consumption with production easing and export licensing norms coming 10:31 10 minutes, 31 seconds into play from January beginning. Steel exports including semis fell by 8.1% y 10:39 10 minutes, 39 seconds looking ahead a better demand supply balance is expected as China steel demand is projected to 10:47 10 minutes, 47 seconds u contract at a slower pace than what we have seen in the previous year. 10:53 10 minutes, 53 seconds JW steel's growth continues to be firmly Indiacentric reflecting our long-term conviction in India's growth trajectory. 11:00 11 minutes Steel is the building block for growth across manufacturing, infrastructure, engineering, energy and mobility. A 11:07 11 minutes, 7 seconds strong domestic ecosystem directly contributes to self-reliance while also creating an opportunity to 11:16 11 minutes, 16 seconds build further resilience and self-reliance in the country. Our growth strategy continues to focus on disciplined capital allocation, 11:24 11 minutes, 24 seconds efficient execution, technology and digitalization to create sustainable value for all stakeholders. 11:32 11 minutes, 32 seconds On sustainability, we were included in the S&P global sustainability yearbook, earned the top 1% emblem globally across 11:40 11 minutes, 40 seconds industries, and we're ranked number one in the global steel sector. We have commissioned 1 gawatt of renewable capacity with a total 2.5 gawatt 11:49 11 minutes, 49 seconds approved by our board along with 320 megawatt of uh battery storage. We also deployed India's first electric 11:57 11 minutes, 57 seconds locomotive for captive logistics at Vijayagar. 12:02 12 minutes, 2 seconds On the update of our projects just to give you a brief overview at Vijayagar the BS3 expansion from 3 to 4.5 million 12:09 12 minutes, 9 seconds is uh currently under testing and commissioning. The ramp up is expected to add incremental volumes from Q2 onwards. At Dolby, the phase three 12:17 12 minutes, 17 seconds expansion from 10 to 15 million t is moving ahead as planned with the civil work equipment erection underway and targeted for completion by September 27. 12:28 12 minutes, 28 seconds At JSW Utkal in Orisa, the two pellet plants will be commissioned by FY28. The first phase of 5 million steel capacity will be commissioned by FY30. 12:38 12 minutes, 38 seconds The 30 million ton slurry pipeline in Orisa is progressing well and is expected to be commissioned by FY27. 12:45 12 minutes, 45 seconds The 1 million ton structural uh mill at Karapa is progressing uh uh with equipment ordering underway and commission targeting by FY29. 12:57 12 minutes, 57 seconds We are adding about 3 million tons of value added capacities while we grow our steel capacities across galvanized, electrical, steel, 13:05 13 minutes, 5 seconds tin plate, cold rolling, structural products etc. And these projects are progressing well and will be commissioned between FI28 and 29. 13:14 13 minutes, 14 seconds In addition, let me uh give you a little bit of an update on the raw metal side. 13:18 13 minutes, 18 seconds Uh on Ironode, we have 25 iron node mines out of which 13 are currently operational. We are working on operationalizing the remaining mines as 13:26 13 minutes, 26 seconds well as increasing the EC capacity at some of the operating ones. In Goa, we expect to operationalize two more mines 13:33 13 minutes, 33 seconds in quarter 1 of FI28 by quarter 1 of FI28. 13:37 13 minutes, 37 seconds As we increase our captive iron production, we are geographically optimizing our sourcing, thus reducing our logistics cost and lead times. The 2 13:46 13 minutes, 46 seconds million ton iron mine at Netraha uh which uh is now with the joint venture uh is now part of the uh you 13:55 13 minutes, 55 seconds know is being commissioned in the quarter 4 increasing the iron or availability for the joint venture. On the cooking coal front, as we mentioned 14:02 14 minutes, 2 seconds earlier, uh Mozambique has the potential to yield 250 million tons of usable highquality cooking coal. The mine will be developed in phases and the first 14:12 14 minutes, 12 seconds phase is targeted to be completed by mid calendar year 2008 producing around 5 million ton of usable cooking coal. 14:22 14 minutes, 22 seconds In addition to the 30% stake in Ilawara, we have three mines and coal linkages in India which together will provide around 14:29 14 minutes, 29 seconds 5.5 million tons of cooking coal. Along with MDR, we will have approximately 10 million tons of captive cooking coal 14:37 14 minutes, 37 seconds meeting around 50% of our total cooking coal requirement by FY31. 14:43 14 minutes, 43 seconds Coming to our operating performance, uh quarter 4 was characterized by strong volume growth and operational performance supported by efficient asset 14:50 14 minutes, 50 seconds utilization and increased plant reliability due to uh digitalization efforts across our sites. This was 14:59 14 minutes, 59 seconds reflected in the higher capacity utilization for the Indian operations which stood at 96% 15:06 15 minutes, 6 seconds excluding the BFC shutdown. The downstream capacity utilization also increased in quarter 4 to 95% that 15:13 15 minutes, 13 seconds provided us higher VSP volumes. Steel sales trooped at around 8 million tons for quarter 4 and around 30 million tons 15:22 15 minutes, 22 seconds for FI26 driven by improved domestic sales supported by growing steel demand in India. Our geographic and sectoral 15:30 15 minutes, 30 seconds mix has improved. uh automotive, packaging, alloy, engineering uh uh sectors have increased. Also, branded 15:37 15 minutes, 37 seconds sales constituted about 50% of our total retail sales, enhancing the overall value of the uh volumes. During the 15:46 15 minutes, 46 seconds quarter, we reduced inventory by 700,000 tons and approximately 100,000 tons over the full year. We achieved 99% of our 15:53 15 minutes, 53 seconds production guidance and 102% of our sales volume guidance for the year. 16:00 16 minutes Coming to the financial uh results, our consolidated revenues in quarter 4 crossed 51, 16:06 16 minutes, 6 seconds uh 100 crores uh crossing 50,000 crores for the first time. Adjusted EITA stood at 9,713 16:14 16 minutes, 14 seconds crores with an EITA margin of 19%. While PAT stood at 19,243 crores. 16:21 16 minutes, 21 seconds It is important to note that there was an exceptional gain of 17,888 crores in quarter 4. This includes a gain of 18,51 16:29 16 minutes, 29 seconds crores on slum sale of BPSL steel undertaking and 163 crores exceptional charge on implementation of new labor 16:37 16 minutes, 37 seconds code. The normalized PAT excluding exceptionals for the quarter was 3475 crores. 16:45 16 minutes, 45 seconds In FI26, the adjusted EIT stood at 32,48 crores and the normalized PAT excluding 16:52 16 minutes, 52 seconds exceptionals was 8,700 crores. We transited from quarter 3 uh with one of 16:59 16 minutes, 59 seconds the lowest steel prices which has improved gradually post the imposition of safeguard duty and strengthened through March. Some part of this price 17:07 17 minutes, 7 seconds recovery will be realized in quarter 1 FI27. 17:10 17 minutes, 10 seconds On the cost side, we were impacted by higher cooking coal prices which increased by about $16 per ton. Iron or 17:18 17 minutes, 18 seconds costs were flattish during the quarter with one/ird of captive iron or usage in the quarter FY26. 17:25 17 minutes, 25 seconds At our overseas operation, Q4 performance was better at the plate and pipe mill in Texas. However, the Ohio operations production was impacted as 17:33 17 minutes, 33 seconds activities ramped up in January 26 following the caster upgrades and extreme cold weather. Overall for FI26, 17:41 17 minutes, 41 seconds the performance of US operations improved significantly, reporting a E AITA positive of $36 million compared to 17:49 17 minutes, 49 seconds an AITA loss of $35 million in the previous year. The Italian operations also performed well in FI26, reporting 17:56 17 minutes, 56 seconds an EITA of 16.4 million e versus close to 15 million euros in the previous year. 18:04 18 minutes, 4 seconds The BPSL transaction was driven has driven a structural deleveraging and transformed the balance sheet. Our net 18:11 18 minutes, 11 seconds debt has declined and stood at 54,000 crores by the year end. Our revenue acceptances stood at $2.1 billion. 18:19 18 minutes, 19 seconds Leverage and gearing have dropped substantially to 1.81 and.51 respectively. The second branch of 18:27 18 minutes, 27 seconds equity investment in JF is expected by end June which will drive further deleveraging of 7,900 crores approximately. 18:36 18 minutes, 36 seconds We have also revised our stated maximum cap for gearing from 1.75 to 1.25 and leverage from 3.75 to three. However, 18:45 18 minutes, 45 seconds our comfort level will be to keep the leverage below 2.5. 18:49 18 minutes, 49 seconds During the quarter we incurred capex of 4,612 crores and 15,600 crores for FI26. 18:58 18 minutes, 58 seconds The capex for our approved growth plan is 126,000 crores which will be spent over the next 4 to 5 years. We expect to spend about 22 to 24,000 crores in FI27. 19:11 19 minutes, 11 seconds The JSW online platform uh in which we have about 61% equity stake on a fully diluted basis continued to see strong 19:18 19 minutes, 18 seconds momentum during the year. In quarter 4 it turned profitable for the first time. 19:22 19 minutes, 22 seconds The steel volumes grew by 50% YI and the GMV reached 6,200 crores a 57% YI 19:30 19 minutes, 30 seconds increase. Over 2,000 crores of this GMBB was driven by GSW1's credit offerings. 19:37 19 minutes, 37 seconds Looking ahead, we expect our cooking coal cost to be higher by 12 to $15 in quarter 1. And for FI27, we expect 19:45 19 minutes, 45 seconds consolidated steel production at 29.75 million ton and a sale of 28.6 million ton. This includes volumes from BMM part 19:54 19 minutes, 54 seconds which is being acquired by us but excludes volume from our JA joint venture. 20:00 20 minutes We expect the domestic steel demand to grow in the range of 7 to 9% in FI27 and JSW steel is well position to support 20:09 20 minutes, 9 seconds this growth. We'll be happy to take questions. Thank you. 20:14 20 minutes, 14 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 the touchstone 20:23 20 minutes, 23 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 20:31 20 minutes, 31 seconds question and to restrict to two questions at a time. Ladies and gentlemen, we will wait for a moment while the question assembles. 20:42 20 minutes, 42 seconds We'll take our first question from the line of Bao Zuchi from JP Morgan. Please go ahead. 20:49 20 minutes, 49 seconds Yes. Hi, thanks for the opportunity and congratulations on the strong results. 20:53 20 minutes, 53 seconds The first question was uh basically on the raw material security given you know the target of 78 billion tons. Uh 21:00 21 minutes starting with iron maybe while you said the captive mix would be 50%. We have seen you know some of the global iron 21:08 21 minutes, 8 seconds majors ramping up iron or exports to JWC. So how confident are we in ramping up you know captive mix from one/irdly 21:16 21 minutes, 16 seconds to 50%. and how could be the mix for imports versus domestic sources just to 21:22 21 minutes, 22 seconds provide some guidance on that please uh I'll answer that I'm Aruni regarding 21:30 21 minutes, 30 seconds the security of iron node up to 50% for the captive from the capital sources uh we today also we have a 50% EC capacity 21:40 21 minutes, 40 seconds available for the iron node within India for our own consumption uh depending upon the logistics ratios depending depending upon the proximity depending 21:48 21 minutes, 48 seconds upon the other sources available at that particular point of time we defined to use how much we should be taking out from the captive. So that's how we 21:56 21 minutes, 56 seconds decided to take only up to onethird of the consumption last year from our captive sources even though the issues were available up to 50% of our own 22:03 22 minutes, 3 seconds consumption. So this is how we we try to maximize our uh logistical uh uh 22:10 22 minutes, 10 seconds advantages at different geographies because we are located at almost all geography of India. So uh going forward also we have continued to uh participate in the assets of iron within India. 22:21 22 minutes, 21 seconds Recently we have acquired some more in Goa. We continue to look for something more in south. We have participated in Andhra Pradesh where we have secured our 22:29 22 minutes, 29 seconds some concessions. Those are exploration licenses wherein we are doing more exploration. So today we have 13 operational mines and about 12% of 22:36 22 minutes, 36 seconds exploration. So we will continue to uh you know upgrade keep on upgrading our captive uh sources available and we're 22:44 22 minutes, 44 seconds confident that at 62 million ton of JSW's volume we will uh have a targeted 22:50 22 minutes, 50 seconds volumes of captive sourcing total number of mines as we mentioned 22:57 22 minutes, 57 seconds was uh 25 with uh total combined resources of about 1.7 billion tons 23:04 23 minutes, 4 seconds without the uh mines which are under exploration right So those will add to the resources. 23:12 23 minutes, 12 seconds Okay. Okay. Got it. That's helpful. And the second question is on the Middle East conflict. So you know we have been seeing that there is a reduction in 23:20 23 minutes, 20 seconds commercial NPG supplies and some shortages in natural gas as well. So do you see any risk to the volume guidance if the conflict continues or you know 23:28 23 minutes, 28 seconds those issues are largely resolved uh in the guidance that you've provided? 23:33 23 minutes, 33 seconds Uh well yes LPG and the the gas supplies LG has been recently cause of concern 23:40 23 minutes, 40 seconds because of the Middle East uh disruption but our exposure to the gas linked production is very limited in the 23:48 23 minutes, 48 seconds overall production. However it does have an impact on the cost of production. 23:53 23 minutes, 53 seconds However, we have ensured and we continue to ensure that there won't be any production disruption by virtue of non-avity of gas unless it becomes too severe in coming months. 24:02 24 minutes, 2 seconds Otherwise, uh our our portion to the gas link to steel production is very very less. 24:10 24 minutes, 10 seconds Okay. Thanks a lot very. Thank you. 24:13 24 minutes, 13 seconds Thank you. We'll take our next question from the line of Amit Digshit from Goldman Sachs. Please go ahead. 24:21 24 minutes, 21 seconds Yeah. Hi. Uh good evening sir and uh congratulations for a good performance. A couple of questions uh from my side. 24:28 24 minutes, 28 seconds Uh the first one is on realization. Now given uh that realizations have gone up and spot realizations have gone up much 24:36 24 minutes, 36 seconds higher uh in uh last quarter. uh what kind of realization increase do we expect uh do we expect going for I mean 24:45 24 minutes, 45 seconds in Q1 uh con if you consider that you know the uh prices are rebate at the current level I mean considering the 24:53 24 minutes, 53 seconds contracts that you might have and other things uh so yeah Amit you're right the um 25:02 25 minutes, 2 seconds since the increases have happened between January to uh March gradually uh part of the increase is reflected in our 25:10 25 minutes, 10 seconds quarter four numbers and the balance increase will be reflected in quarter 1. 25:14 25 minutes, 14 seconds U in the uh quarter 4 our uh our uh NSR 25:21 25 minutes, 21 seconds has uh moved up by about 3,800 rupees per ton and uh we would see uh the 25:28 25 minutes, 28 seconds balance of the price increase play out in uh quarter 1. 25:33 25 minutes, 33 seconds Uh is it possible to quantify the balance? 25:38 25 minutes, 38 seconds So difficult to give a number because it will depend on again the product mix you know. So and it will also uh take into 25:45 25 minutes, 45 seconds account a seasonal number but uh I think uh we expect that uh after covering the cost because the cost also will go up. 25:54 25 minutes, 54 seconds My senses or our senses that the cost will go up in the range of 3,000 rupees uh or so per ton but the margins uh will 26:03 26 minutes, 3 seconds still be positive after covering the cost. So the price uh uh will cover the cost and add to the margin. 26:12 26 minutes, 12 seconds Uh great sir, understood. The second one is essentially on the expansions that we have announced. Now most of our 26:18 26 minutes, 18 seconds expansions are flat focused. Uh and you know in the country traditionally we have seen long demand outpacing flats. 26:27 26 minutes, 27 seconds Uh so any thoughts around longs expansion as well? I know you mentioned one of the acquisitions that you have done but apart from that uh are we 26:37 26 minutes, 37 seconds planning to get active in longs as far as downstream expansion is concerned. 26:43 26 minutes, 43 seconds So in the last announcements if you recall we have announced uh that the karata section mill which is the structural mill which would go for uh 26:52 26 minutes, 52 seconds beams and the expansion at our ryer facility which would uh have beam and rails. So those will be uh in lawn 27:00 27 minutes products in the BM facility which we have uh you know just uh approved at the board for acquisition which is a 1 27:08 27 minutes, 8 seconds million t long facility would be expanded to about 1.8 million t and that would also be in special engineering 27:15 27 minutes, 15 seconds steel uh uh product. So yeah these uh would add to the long product capacities 27:21 27 minutes, 21 seconds which uh we currently have. We believe that um you know India uh with the 27:28 27 minutes, 28 seconds infrastructure growth would require long products and these would uh help in uh meeting those demands. 27:37 27 minutes, 37 seconds Okay, fair enough. All right. Thank you. 27:40 27 minutes, 40 seconds Thank you. Next question is from the line of Amit Murka from Access Capital. Please go ahead. 27:48 27 minutes, 48 seconds Yeah. Uh good evening and thanks for the opportunity. So um just wanted to understand the thought on growth going 27:56 27 minutes, 56 seconds ahead like earlier in the past we've seen that usually you would have taken uh one project at a time so given that 28:03 28 minutes, 3 seconds now you're indicating taking up multiple projects so is it now the new normal like or or should we like look at the business now at three balance sheet like 28:11 28 minutes, 11 seconds one standalone one JFJV and one POSCO JV for for all your growth programs going ahead 28:21 28 minutes, 21 seconds From JSW Steel's perspective, if you see the slide which we have already given to you that by FI30, JSW steel alone will 28:30 28 minutes, 30 seconds be at uh 49 uh uh million tons approximately. Can I see that slide 28:36 28 minutes, 36 seconds please? 49 million ton uh uh and on top of that we would have uh the joint venture uh of JSWjaf 28:45 28 minutes, 45 seconds and including Ohio will be close to 55 million tons by FI30. 28:50 28 minutes, 50 seconds The uh expansion of JSW steel alone in FI up to FI32 would be to 62 million. 28:59 28 minutes, 59 seconds So what you would track for JSW steel will be this 62 million tons. On top of this, we have 10 million tons as we 29:07 29 minutes, 7 seconds expect from the joint venture with JF in the existing site and a 6 million t new facility at POSCO. Those would be 29:16 29 minutes, 16 seconds tracked uh again separately and on that gets completed sites 29:24 29 minutes, 24 seconds and one side. 29:26 29 minutes, 26 seconds Yeah. Yeah. And uh Mr. Rat is just adding that uh stat. 29:32 29 minutes, 32 seconds Yeah. So like uh the doli will get over uh in another one year or so then we 29:39 29 minutes, 39 seconds will start this year we'll start paradep and vijag. So we'll have two sides instead of one side each 5 million. 29:47 29 minutes, 47 seconds So yeah that's the target we are taking. 29:50 29 minutes, 50 seconds I know my my question was more longer term. So what I was trying to understand is like usually in the past you have taken one project at a time and then 29:58 29 minutes, 58 seconds moved ahead. So is this now a new normal that you'll be taking up multiple projects through through the JV structure that is in place now? 30:08 30 minutes, 8 seconds Yeah. So as we had uh given it uh you know given you an indication earlier that the uh idea of the JV was to 30:16 30 minutes, 16 seconds strategically grow faster in the country u while it helped us to delever as well. So we'll have a double engine of growth. 30:24 30 minutes, 24 seconds One which JSW steel will grow on and the other which the joint venture will grow on. uh we have also uh you know we we 30:32 30 minutes, 32 seconds have given you an indication that India is the fastest growing market and this is the right time to be able to take this opportunity and grow faster that's 30:40 30 minutes, 40 seconds the idea and we would therefore so your answer is yes we would be expanding 30:46 30 minutes, 46 seconds faster along with the joint ventures right and u given the given that the 30:53 30 minutes, 53 seconds pace of growth is going to be so high um like is there a plan to also kind export uh I mean larger part of these volumes 31:01 31 minutes, 1 second than what we are doing currently then can you just repeat that once sorry I missed 31:08 31 minutes, 8 seconds uh given that the pace of growth at a JSW including JV level is is going to be uh quite accelerated with like multiple 31:17 31 minutes, 17 seconds capacities being done so is there also a plan to essentially raise exports to a much higher percentage than what it is 31:24 31 minutes, 24 seconds today in the current portfolio we don't So you know we don't see the need as of now the way uh you know it is 31:32 31 minutes, 32 seconds structured I think you will see probably more of domestic alignment it's possible that when the capacities incrementally 31:40 31 minutes, 40 seconds maybe come up in the first one year or two years you have a slightly higher export but then uh come down having said that but I would like to say that our 31:49 31 minutes, 49 seconds paradi facility which is on the port uh would be the natural uh place to export 31:55 31 minutes, 55 seconds from so the exports uh from Paradip will naturally uh be higher than other sites. 32:02 32 minutes, 2 seconds Um but u you know given the domestic uh growth uh as we have reiterated earlier 32:10 32 minutes, 10 seconds um our uh feeling is that this capacity will be required to meet the domestic growth uh which we are seeing today. If 32:19 32 minutes, 19 seconds you're looking at a number of 20 30 million tons by the end of this decade and going uh beyond thereafter unless 32:28 32 minutes, 28 seconds capacities are put in place I think India will not uh be able to meet this demand. I also mentioned a line I think 32:37 32 minutes, 37 seconds we we believe that capacities are going to follow demand and there will be a lag 32:44 32 minutes, 44 seconds in the medium term up to 2030. any capacity which you set up today takes four to five years minimum. So when you 32:52 32 minutes, 52 seconds start a project keep that in mind but we are quite confident that uh you know with our faster pace of execution and 32:59 32 minutes, 59 seconds low specific investment cost we are well placed to uh you know grow in India and 33:06 33 minutes, 6 seconds we are we are quite optimistic that uh this is in line with the growth and not in excess of the growth. 33:15 33 minutes, 15 seconds Last question. I request you to join by the queue please as we have participants waiting for their turn. Thank you. 33:23 33 minutes, 23 seconds Next question is from the line of Sumandal Natia from Kotak Securities. Please go ahead. 33:30 33 minutes, 30 seconds Yeah, good evening and thanks for the opportunity. Uh my first question is uh with respect to a JV with BOSCO. I just 33:37 33 minutes, 37 seconds want to understand better what is the rationale and what value does the new JV partner brings given that we already have a very strong balance sheet after 33:46 33 minutes, 46 seconds the pre uh uh uh JF deal and we also have a lot of expertise access to expertise in value added products etc 33:55 33 minutes, 55 seconds given association with JF so uh just just some color on this thanks 34:04 34 minutes, 4 seconds so there are two reasons one is that uh you know both JF and POSCO are leading uh global steel companies and both have 34:13 34 minutes, 13 seconds their strengths on technology. Uh there are certain strengths which JF we have been able to get along with JF to India CRGO being one of them and we have 34:22 34 minutes, 22 seconds collaborated with them on many areas uh of improvements and we'll continue to do so. Poss also has their own uh areas of 34:31 34 minutes, 31 seconds technology and uh especially in the uh you know high strength steels uh uh giga 34:38 34 minutes, 38 seconds steels uh which uh you know would go for lightweing replacement of aluminium uh hydrogen technology to uh reduce 34:46 34 minutes, 46 seconds emissions um uh digitalization and AI. I think those are areas of uh cooperation 34:54 34 minutes, 54 seconds between POSCO and us. In addition to that uh POSCO has a 2 million ton uh uh 35:01 35 minutes, 1 second coal rolling facility in Maharashtra and they would like to integrate backwards uh with a steel plant and one of their 35:09 35 minutes, 9 seconds criterias for uh looking for a steel plant in India has been to have a backward integration of the steel from 35:16 35 minutes, 16 seconds their own facility. So these are the two reasons that is largely because they wanted to 35:22 35 minutes, 22 seconds have a localization sourcing and that is that is one of the primary reason even POSCO wanted to come to India. 35:30 35 minutes, 30 seconds Yeah. So going forward they want to buy rather than sending it from Korea they want to buy more steel from the local facility in India. 35:40 35 minutes, 40 seconds Understood. And uh just to half on on on this topic a bit more. One is I mean uh how does a existing JV partners view 35:49 35 minutes, 49 seconds association with new global players? Uh is there a potential uh uh conflict in future and I mean few years down the 35:57 35 minutes, 57 seconds line we have three large plants applying flat steel from Odisa. So will will we have a different sales strategy different 36:05 36 minutes, 5 seconds targeted downstream products uh across the plants or they will just compete like independent plants? 36:12 36 minutes, 12 seconds We do not foresee any conflict between the JV partners uh per se. Um they will have their own strategies for sure 36:20 36 minutes, 20 seconds because they'll be uh different legal entities. Um but we see as we mentioned the growth of India is uh strong and 36:28 36 minutes, 28 seconds therefore um will enable uh all the uh entities to grow and uh POS Maharashtra 36:38 36 minutes, 38 seconds as I mentioned is a 2 million ton uh lo basically a captive demand for the Costco facility which will come up. So 36:47 36 minutes, 47 seconds keep uh that in mind as well. So that will be supplying basically one/ird of their uh total new capacity to the downstream facility. 36:59 36 minutes, 59 seconds So got it. My second question is okay. Can I have can I go for a second question? 37:07 37 minutes, 7 seconds Yeah, please go ahead. 37:08 37 minutes, 8 seconds Yeah. uh uh so uh just I mean uh on a broader level uh just want to understand uh given the overall macro issues in the 37:18 37 minutes, 18 seconds country and the pressure on inflation do we see any risk of some withdrawal of protection given our domestic prices are 37:25 37 minutes, 25 seconds uh uh enjoying 20% kind of uh uh higher uh prices due to the protection just 37:33 37 minutes, 33 seconds some uh thoughts here I think we if you really look at uh protection. I would say India is 37:41 37 minutes, 41 seconds probably one of the more uh balanced countries with respect to protection as you see it worldwide today. We are seeing protections between 25 to 50% in 37:51 37 minutes, 51 seconds various parts of the world. Uh every country is trying to safeguard their uh uh shores from any kind of uh um trade 38:01 38 minutes, 1 second flows which can be adverse for that country and that is becoming very critical to the supply chain resilience of that country. in India with a 11.5% 38:10 38 minutes, 10 seconds safeguard duty I think we are far lower than what the rest of the world is that's number one number two your 38:17 38 minutes, 17 seconds comparison is with the lows of December I would not do that 3 years back in April 23 we had the same price as we had 38:26 38 minutes, 26 seconds in April 26 the cost environment was similar if you were to look at coal and iron ore but on 38:34 38 minutes, 34 seconds top of that the depreciation of the rupee has been severe So please look at the fact that your cost on account of the overall ecosystem 38:43 38 minutes, 43 seconds has gone up. You have just come back to where you were 3 years back. I would say this more of a price correction and to make it a viable price system today. 38:54 38 minutes, 54 seconds From international price perspective also I think we are now well balanced. 38:59 38 minutes, 59 seconds Yeah, we we uh we do not think that we are uh very much off the international prices 39:06 39 minutes, 6 seconds as we see today. If you look at uh uh you know by and large the western economies if you were to look at Europe 39:14 39 minutes, 14 seconds and uh uh US Europe is already in the range of $830 39:20 39 minutes, 20 seconds of out coil and uh I think uh US is close to $1,100 per metric ton of hot 39:26 39 minutes, 26 seconds coils and Japan also and Korea also internal prices are higher. So we are price point of view also more balanced in India. 39:38 39 minutes, 38 seconds Got it. 39:38 39 minutes, 38 seconds Very useful. Thanks and all the best sir. 39:41 39 minutes, 41 seconds Next question is from the line of Pinakin from HSBC. Please go ahead. 39:49 39 minutes, 49 seconds Yeah thank you very much sir. Uh my first question is uh if you look at the capid silence of 1 lakh 26,000 crores over the next four to 5 years uh that 39:58 39 minutes, 58 seconds clearly does not capture the entire 30 million t uh JSW street expansion and the 10.5 million ton at the trainee. Uh 40:07 40 minutes, 7 seconds so if you take a step back uh can you give us a broad range of the capex over the next five six years to go from the 40:16 40 minutes, 16 seconds current capacity base to 78.5 million ton capacity base and includes downstream mining everything. 40:24 40 minutes, 24 seconds So currently as we have given you the capacity uh expansion plans our capex plants are at 126,000 crores 40:32 40 minutes, 32 seconds um as of now incrementally to be at 62 million plus invest for uh equity for 40:41 40 minutes, 41 seconds the joint venture and our uh mining other investments downstream facilities. 40:48 40 minutes, 48 seconds uh our sense is that we would uh require another 100,000 crores uh between now to 40:56 40 minutes, 56 seconds um FY33 uh because FY32 if you try and try to plan a capacity the uh payment would 41:04 41 minutes, 4 seconds spill over at least to the next year. So you have about 6 to 7 years 7 years in which you would uh uh spread this uh 41:11 41 minutes, 11 seconds capex. Uh so for just to understand clearly this 126 plus another one lakh 41:18 41 minutes, 18 seconds kes so two lakh 26,000 kores over the next let's assume 6 to 7 years right uh 41:24 41 minutes, 24 seconds fi27 is a 22,000 cr so the way we should look at it that in the coming years the annual run rate of the capex will go 41:34 41 minutes, 34 seconds from the 20 to the 30 35,000 k a year in the next couple of years as the project the multiple projects pick up Okay. 41:43 41 minutes, 43 seconds Yes. As uh if this is including the uh joint venture uh projects, including the mining which we would uh you know 41:52 41 minutes, 52 seconds additions which we would do in Mozanic uh including um our own 62 million tons. 41:59 41 minutes, 59 seconds It's a combination of all of them. Yes. 42:02 42 minutes, 2 seconds Got it. Uh and so my second question is if I look at the guidance right if I strip away uh BPS from this year's base 42:10 42 minutes, 10 seconds it implies roughly uh 99 and a half% of u production growth uh in FI27 42:18 42 minutes, 18 seconds uh given the timelines of the project commissionings that we have in terms of Dolby Var is it fair to say that this is 42:26 42 minutes, 26 seconds the broad 8 to 10% tger that we can look at for the next three to four Um if I think if you see the guidance 42:35 42 minutes, 35 seconds which we have given if I recall we have given a guidance of 29.75 million ton which on a lifeto-like basis is a 13% 42:42 42 minutes, 42 seconds growth in production and uh a guidance of sales at 28.6 million tons is a 10% growth. 42:50 42 minutes, 50 seconds Now going forward the capacities as you know we are getting in capacities uh of Vijayagar and uh Dolby put together 42:59 42 minutes, 59 seconds which would add about 7 million tons of uh uh capacity between now to September 27th. The Utkal facilities uh which have 43:08 43 minutes, 8 seconds been taken up and the Vijagar facilities for expansion of another 10 million tons etc which has been taken up would be there by FI30. 43:18 43 minutes, 18 seconds um those will provide uh each of them will provide incremental abitas for the next phase of growth. 43:27 43 minutes, 27 seconds Got it. Got it. This is very helpful. Thank you very much. 43:30 43 minutes, 30 seconds Thank you. Next question is from the line of Palao Agarwal from Antic Stop Broking. Please go ahead. 43:39 43 minutes, 39 seconds Pala, your line is unmuted. Please go ahead with your question. Yeah, good evening. Uh am I audible now? 43:47 43 minutes, 47 seconds Yes. Yeah. So first question was on BM part. 43:50 43 minutes, 50 seconds So uh you know I think uh can you just share what was the actual production and you know uh AIDA number in SI25 for this company. 44:01 44 minutes, 1 second Um I think we'll uh request our investor uh you know team you can reach out to them and take the uh details. I don't 44:09 44 minutes, 9 seconds have it off off the off the cuff right now. 44:12 44 minutes, 12 seconds Sure. because you know I think the it's a facility of it's a facility of.9 million ton um uh just to uh give you an 44:20 44 minutes, 20 seconds overview so.9 million ton so you can uh roughly producing uh in the in the range 44:28 44 minutes, 28 seconds of I would say they would produce in the range of8 million ton in this financial year. 44:34 44 minutes, 34 seconds Sure sir. uh and also you know if I look at the net worth uh you know I think uh probably was about 2,700 crores as per 44:41 44 minutes, 41 seconds you know uh the press release on the stock so uh and the requirement to about 6 and a half thousand cr so that's close to almost three times you know uh on a 44:49 44 minutes, 49 seconds price group basis so uh so is this factoring in the future expansion that can happen 44:57 44 minutes, 57 seconds no so the current price uh at which this is uh this is acquired uh represents 45:05 45 minutes, 5 seconds uh multiple approaches uh discounted cash flow as well as the placement cost. 45:10 45 minutes, 10 seconds It's roughly a million plant also the fact that it has a blast furnace which is very new which was commissioned only 45:17 45 minutes, 17 seconds last year. uh and if you take a normative IITA per ton of plant of this size, you will realize that the 45:25 45 minutes, 25 seconds effective uh EVITA is uh significantly attractive. Plus the fact that this has 45:32 45 minutes, 32 seconds potential uh to expand capacity almost double from here in in fairly short period of time. All of these factors uh 45:42 45 minutes, 42 seconds but the valuation we believe is is fairly attractive. Plus the synergy with our location is very close to Yeah, on 45:49 45 minutes, 49 seconds an expans expanded basis uh you're right that uh you know this gives us the additional headroom because we feel the next 1 million or.9 million ton can be 45:58 45 minutes, 58 seconds expect expanded between 1,600 to 18800 crores making the overall investment very attractive 46:08 46 minutes, 8 seconds I request you to join back the please thank you next question is from the line 46:15 46 minutes, 15 seconds of parts from anati please go ahead Uh thank you uh for the opportunity and 46:23 46 minutes, 23 seconds congratulations on completing the JV and further strengthening the relationship uh with department. Uh I have two questions. The first question is 46:31 46 minutes, 31 seconds pertaining to the uh scheme prices considering you know uh just couple of days back or very recently you know a couple of companies from Vietnam, China 46:40 46 minutes, 40 seconds have taken substantial price hike and also you know your price in Europe and USA are at reasonably high level. I just 46:48 46 minutes, 48 seconds wanted to check if you can just give a number of what can we expect as far as your price increase in quarter one and uh say H1 going forward. 46:59 46 minutes, 59 seconds uh so in the month of April uh uh we have increased prices and uh we have increased some price uh for flat 47:08 47 minutes, 8 seconds products in the month of May as well. I think we increased 2,000 in April and 1,000 in uh May for flat. Uh our belief 47:16 47 minutes, 16 seconds is that uh for now the price will be rangebound. 47:20 47 minutes, 20 seconds Um we will uh we will watch the geopolitical uh uh situation u you know in the country and then take a view as 47:29 47 minutes, 29 seconds of now we believe this uh would be rangebound going going into this quarter and so just continuing to that question 47:37 47 minutes, 37 seconds uh any contracts from auto which would be done at a much higher prices because uh I believe it's at a rolling basis right? Yeah, it would. So, uh, auto gets 47:46 47 minutes, 46 seconds recalibrated quarterly. So, the price increase for, uh, automotive will come in this quarter. The quarterly prices will get recalibrated. Those will be also in this quarter. You're right. 47:57 47 minutes, 57 seconds Okay. And any idea on the hike which I can expect from the from the price from the auto sector. I will not be able to 48:04 48 minutes, 4 seconds give you numbers here but uh you know as we close the things it will come up in terms yeah my second question is pertaining to 48:13 48 minutes, 13 seconds the uh your analyzed capex run rate of say about 30 35,000 odd kores going forward right I believe though you are 48:20 48 minutes, 20 seconds very comfortable for say 27 considering you would be your productions are at about 10 30% higher on a like to basis 48:28 48 minutes, 28 seconds and also the prices are good however going forward at say 35,000 of APS on analyzed business would you 48:35 48 minutes, 35 seconds start uh you know opting for more debt because uh for in the near term I think your cash flows might not match if I'm 48:43 48 minutes, 43 seconds not mistaken uh this is why I'm here uh if you factor 48:50 48 minutes, 50 seconds in the capacity incremental capacity which are going to be available from now 48:58 48 minutes, 58 seconds till next one and a half years and that includes JVML which is not at full capacity yet in FY26 can do 1 million 49:06 49 minutes, 6 seconds more. Uh BF3 which is going to start production once the capacity of radiation is completed that will be 2 49:14 49 minutes, 14 seconds million more and only phase 3 which we expect to come in FY27 49:20 49 minutes, 20 seconds FY CY 27. Now these three put together creates almost 8 million tons of extra 49:28 49 minutes, 28 seconds production which will create anywhere between you know 9 to 12,000 cr of ITA 49:35 49 minutes, 35 seconds which is not in my base today. So if you take that out you'll realize that even if as a company we stretch 49:43 49 minutes, 43 seconds to to 35 30 to 35,000 cr of kick expense a part of it is going to get funded with 49:50 49 minutes, 50 seconds the new cash I will generate so if you exclude that you'll realize that it's from the base the kind of cash 49:57 49 minutes, 57 seconds we are creating we are not going to create very large stress to increase that but of course temporarily debt 50:04 50 minutes, 4 seconds could still go up but given where we stand right now which is at 1.8 date needed to ITA and our expectation is 50:12 50 minutes, 12 seconds this leverage in FI27 perhaps will go slightly better especially after taking trans of JP we think we'll be very 50:20 50 minutes, 20 seconds comfortable so my basic my understanding was for yeah 50:28 50 minutes, 28 seconds yeah go ahead yeah yeah yeah my my my quick understanding was that is expected in CO 27 so the incremental benefit would be 50:37 50 minutes, 37 seconds only from 29 onwards right so I think for 28 and 29 that is what my what I wanted to understand so these two years 50:44 50 minutes, 44 seconds there would be some uh increase in debt right uh if I'm not mistaken uh no not really because uh you know you 50:53 50 minutes, 53 seconds will have JVML which will start which will actually produce entire 5 million in FI27 then you will have DF3 which will have 51:02 51 minutes, 2 seconds some positive uptake in FI27 not fully that would come in FI28 and FI2 28 you will also see Dolby is part volume could be small. 51:12 51 minutes, 12 seconds So this combined will create incremental cash which you are not seeing in our base yet. 51:16 51 minutes, 16 seconds Without Dolby uh just to sum up is 4 million tons at least you will see you know between now to FI27 including the BMM volume that will give you additional 51:25 51 minutes, 25 seconds cash flow till uh Dolby comes in. Do those will start kicking in let's say after let's say October 27 uh to 51:33 51 minutes, 33 seconds December 27th quarter they will start let's say operations and then uh ramp up capacity. 51:39 51 minutes, 39 seconds Thank you. We'll take our next question from the line of Shubang Jen from Nepon India Mutual Fund. Please go ahead. 51:47 51 minutes, 47 seconds Yeah. Hi sir. Good evening. 51:49 51 minutes, 49 seconds Congratulations for the good performance. Uh my first question is can you help us understand the current raw material consumption norms in the Indian 51:56 51 minutes, 56 seconds operations like specifically for iron or and cooking coal for per ton of steel and also within your uh cost of good 52:04 52 minutes, 4 seconds sold roughly what percentage is attributable to iron or cooking coal? 52:10 52 minutes, 10 seconds Well uh percentage utilization or or the ratio of utilization of iron and cooking coal is purely depending upon what grade 52:17 52 minutes, 17 seconds of ironwood we are using and which location and which technology we are using to so typically if I to say then 52:25 52 minutes, 25 seconds it is about 1.8 8 to 1.9 per ton of steel is what the iron kach would be and 52:33 52 minutes, 33 seconds uh cooking coal if I to consider purely cooking coal just is about 7 mill 700 kgs per ton of steel this is a typical 52:41 52 minutes, 41 seconds ratio what we have only cooking coal and if I have to add all the coals uh it becomes about 900 950 kgs depending upon 52:50 52 minutes, 50 seconds uh the process what we getting uh Okay. And uh uh uh roughly what 53:00 53 minutes percentage is attributable to iron or cooking colon cox? 53:08 53 minutes, 8 seconds Well, it it it keeps changing or depending on because both are cyclical in nature but then I would say about 60% 53:16 53 minutes, 16 seconds or 60% put together is the cost uh of cost share of iron or gold. 53:25 53 minutes, 25 seconds book in here and I have one question I request you to join back in the queue please as we are participants waiting for the talk. 53:33 53 minutes, 33 seconds Thank you. Next question is from the line of Indrajit Agarwal from CLSA. Please go ahead. 53:40 53 minutes, 40 seconds Hi, thank you for the opportunity. I have uh my first question is on the export as you said that more and more global economies are getting closed. So 53:48 53 minutes, 48 seconds if at a point in the next couple of years we have a temporary over capacity in flat steel in India which geographies do you think we can still have a market? 54:00 54 minutes No actually um if I really uh we have uh we have modeled the overall flat demand 54:08 54 minutes, 8 seconds in India. Um by and large if you see flat has been growing at a slightly faster pace um in general over the past 54:17 54 minutes, 17 seconds few years. So we see that flat demand will increase. The entry barriers for flat capacity setting up is more um 54:26 54 minutes, 26 seconds therefore in the medium term maybe between the years of 28 to 30. Uh I see that supply will lag demand. uh going 54:35 54 minutes, 35 seconds forward uh you know if you really look at uh the overall thumb rule number if we are incrementally uh generating about 54:44 54 minutes, 44 seconds 12 to 14 million tons of incremental demand uh roughly about 6 to 7 million 54:51 54 minutes, 51 seconds tons of flat steel would be the uh incremental demand. That means you will require to set up at least two hot mills 55:00 55 minutes because each hot strip mill takes almost two years to fully play up. 55:04 55 minutes, 4 seconds So at least two hustrip mills should come every year for you to be able to meet that demand. 55:11 55 minutes, 11 seconds I do not foresee uh too much of a problem in the planning which we see. uh there could be some year as you 55:18 55 minutes, 18 seconds mentioned where if there is any clubbing of capacities which come uh then certain 55:24 55 minutes, 24 seconds amount uh would be exported uh which is fine as I mentioned our uh OISA facility is on the port and that can leverage 55:33 55 minutes, 33 seconds exports uh into into into the world we also have opportunities of supplying 55:39 55 minutes, 39 seconds some green steel uh to the world as you as you know we have said that Salow would produce low gradede emission ution steel from natural gas and DRI in 55:48 55 minutes, 48 seconds renewable energy that is a natural export model. Uh the third one is that 55:55 55 minutes, 55 seconds we see that there is a gap in slabs also which is required internationally the traded slabs internationally has come down post the Russia Ukraine and uh Iran 56:05 56 minutes, 5 seconds conflicts there is a space which has been created in that that's the third opportunity for exports which is there. 56:13 56 minutes, 13 seconds Sure. Uh my second question is actually a bookkeeping question. If you can highlight how much is the iron or cost increase for one Q and what is the tax incidence of the BPSL dealer? 56:26 56 minutes, 26 seconds Uh the iron ore uh the iron or cost have gone up in the last few weeks. uh that there will be a in we are trying to 56:34 56 minutes, 34 seconds reduce and we are trying to do the blending in a manner so that the specific consumption is better and with that we will try to uh moderate the 56:41 56 minutes, 41 seconds impact of the price increase it will be slightly higher but not much from quarter 4 to quarter 1 as far as the 56:49 56 minutes, 49 seconds bookkeeping question is concerned on the BPSL tax something which you asked you wanted to can you repeat that 56:56 56 minutes, 56 seconds partification yeah No. So, uh DPSL has uh had carry forward losses, unabsorbed depreciation. 57:08 57 minutes, 8 seconds So, uh the effective tax on this transaction is significantly lower 57:16 57 minutes, 16 seconds those losses were fully utilized even on JSW books. 57:22 57 minutes, 22 seconds Correct. On JSW books. All right. Thank you. That's all. 57:26 57 minutes, 26 seconds Thank you. Thank you. We'll move to our next question from the line of Ashen from Aquary, India. Please go ahead. 57:37 57 minutes, 37 seconds Hi sir. Uh sir, good evening. Uh so my first question is you know on pricing uh you know you made a point earlier that 57:44 57 minutes, 44 seconds you know current prices are still where we were in 2023 but then if I see that in context of you know China exports 57:51 57 minutes, 51 seconds assuming the China exports drive prices they were much lower in 2023. So how do you think about pricing going ahead? 58:00 58 minutes Have we come to a point where you know pricing is more local you know irrespective of the safeguard duty is that have we come to that point yet do you think? 58:11 58 minutes, 11 seconds No I don't think rights will always be what is internationally available and that has to be taken into account. I 58:19 58 minutes, 19 seconds don't think you can ignore that. But just to give you a number because we were just going into this uh as an analysis from our side China prices uh 58:29 58 minutes, 29 seconds you know in the international market uh in in let's say April May was in the 58:36 58 minutes, 36 seconds range of you know $550 $560 FOB it was actually slightly higher than what it is today it's let's say in the range of 58:44 58 minutes, 44 seconds $510 FOB and uh uh on the cost side also you will see similar structures is India at that 58:53 58 minutes, 53 seconds point of time hot coil prices were in the range of 60,000 rupees uh you can do your math I think uh we 59:01 59 minutes, 1 second are not very far from this basket that's why I compared April 23 to April 26 59:09 59 minutes, 9 seconds but but international prices will always be uh a guiding factor for uh the 59:16 59 minutes, 16 seconds domestic steel prices right right so So secondly you know in terms of the demand you clearly are very positive in demand. 59:26 59 minutes, 26 seconds Is it possible to you know give some color uh uh in terms of which are the key sector segments where we are most 59:34 59 minutes, 34 seconds optimistic on demand if you can you know give some granular color on that. 59:40 59 minutes, 40 seconds So you know the way uh uh uh infrastructure and construction naturally contributes to a very large part of the overall steel consumption 59:48 59 minutes, 48 seconds and that's growing at a very healthy rate. Automotive. If you see from what was expected when we began this year to what we ended this year, automotive 59:55 59 minutes, 55 seconds growth has been really good. Automotive capacity announcements by major auto producers in the country is also a very 1:00:03 1 hour, 3 seconds healthy number. Uh you know we are seeing uh similar kind of traction in the renewable energy uh sector and 1:00:13 1 hour, 13 seconds similarly in uh you know appliances and and others. So I would if you were to sum up infrastructure manufacturing 1:00:22 1 hour, 22 seconds including automotive renewable energy these uh uh are are moving at a fast pace. 1:00:31 1 hour, 31 seconds Ashish I request you to join back the queue please as we participants waiting for their turn. 1:00:36 1 hour, 36 seconds Thank you. Next question is from the line of Rashi from city. Please go ahead. 1:00:42 1 hour, 42 seconds This is a question you mentioned that the cost increase sequentially is expected to be about 3,000 rupees. So apart from cooking pole where all are you expecting increase? 1:00:54 1 hour, 54 seconds Yeah, cooking coal our expectation is between 12 to $15. 1:00:58 1 hour, 58 seconds So the large part of the increase would be somewhere around the exchange rate is for sure one of the the cost element and 1:01:06 1 hour, 1 minute, 6 seconds the sea freigh has gone because there's a large part is seabbone trade also for us whether it's a import of uh cooking 1:01:13 1 hour, 1 minute, 13 seconds coal or other coal or or coastal movement so that impacts so and the fluxes because the middle east is uh is 1:01:22 1 hour, 1 minute, 22 seconds one region where the all the fluxes are coming so that gets impacted and the damage incidences are increasing 1:01:29 1 hour, 1 minute, 29 seconds So gas would be very our exposure to gas is just about 5 to 6% of the total production volume. So it won't impact much to us as but still in the civil we 1:01:37 1 hour, 1 minute, 37 seconds generally get impacted because of the gas prices and on on account of iron or maybe uh you factor 5% quarter 4 to quarter 1 1:01:47 1 hour, 1 minute, 47 seconds on cost and when you say exposure to gas is 5 to 6% uh my understanding was that the gas 1:01:55 1 hour, 1 minute, 55 seconds impacted mostly your downstream production is there any upstream exposure as well 1:02:03 1 hour, 2 minutes, 3 seconds don't uh our uh you're talking about natural gas exposure right natural gas exposure when you uh natural 1:02:12 1 hour, 2 minutes, 12 seconds gas exposure to downstream is not there natural gas is basically used in Dolby uh in our operations to some extent but 1:02:21 1 hour, 2 minutes, 21 seconds as Arun explained it's a very small percentage of our overall requirement downstream uses a little bit of uh uh 1:02:30 1 hour, 2 minutes, 30 seconds LPG but we have been converting to uh different fuels And therefore uh yeah and therefore uh we are able to 1:02:38 1 hour, 2 minutes, 38 seconds mitigate some part of the impact of the uh NPG pricing. Yeah. Thank you. 1:02:44 1 hour, 2 minutes, 44 seconds We using liqufied natur. 1:02:51 1 hour, 2 minutes, 51 seconds Thank you. Next question is from the line of dut shade from oneup financial. Please go ahead. 1:02:57 1 hour, 2 minutes, 57 seconds Hi uh good evening uh sir. Uh so a couple of questions. also what will be the share of our uh JV investments in 1:03:05 1 hour, 3 minutes, 5 seconds this 2.5 lakh cr investment uh the 1:03:16 1 hour, 3 minutes, 16 seconds yeah first of all the as I said 126,000 crores plus at the most another 100,000 crores it could be a little lower but at 1:03:23 1 hour, 3 minutes, 23 seconds the most 100,000 crores uh the JV investment will only be in form of equity right and so if you typically take a project 1:03:30 1 hour, 3 minutes, 30 seconds which we are doing let's say uh we are doing BF6 for example right now in JB Vijeneagar which uh for which the expansion which we have just announced 1:03:39 1 hour, 3 minutes, 39 seconds is 26,000 crores if you were to take that as a benchmark between 25 to 30,000 crores uh equity 1:03:46 1 hour, 3 minutes, 46 seconds would be for any project of this would be about 8 to 10,000 crores so in a project uh like this our share of the 1:03:54 1 hour, 3 minutes, 54 seconds equity would be close to 4 to 5,000 crores in each of these projects that means two projects multiply by two. 1:04:03 1 hour, 4 minutes, 3 seconds Got it. And uh so what is the outlook for the overseas subsidies for FI27? 1:04:11 1 hour, 4 minutes, 11 seconds FI27 uh US operations have uh you know the vacuum degassing uh modification and our caster 1:04:19 1 hour, 4 minutes, 19 seconds modification for dynamic soft reduction has uh uh taken place. They are in the process of stabilizing that will enable 1:04:26 1 hour, 4 minutes, 26 seconds them to produce higher grades. So one that is value accreative. The uh volume also which we lost on account of the 1:04:33 1 hour, 4 minutes, 33 seconds shutdown at Ohio upgradation that will come back. Baytown uh upgradation is getting completed and that should start 1:04:41 1 hour, 4 minutes, 41 seconds uh um operations in quarter two of this uh financial year by the end of quarter two of this financial year and gradually 1:04:50 1 hour, 4 minutes, 50 seconds ramp up. So that these two combined will give you uh a better uh profitability going forward in the US operation. Italy 1:04:58 1 hour, 4 minutes, 58 seconds also the uh sales volumes uh are likely to be better. Yeah. Okay. 1:05:03 1 hour, 5 minutes, 3 seconds Sales volume would be better and uh and the the product mix and the market mix is uh looks to be much better this year. 1:05:10 1 hour, 5 minutes, 10 seconds So we would get a better uh uh overall a bit of financial performance over there. 1:05:15 1 hour, 5 minutes, 15 seconds So overall both assets will show better performance. Reserve is uh FI26. Okay, got it. Uh, and all the best. 1:05:24 1 hour, 5 minutes, 24 seconds Thank you. Next question is from the line of Jashendep Singh Chhatta from Namora. Please go ahead. 1:05:34 1 hour, 5 minutes, 34 seconds Hi, thank you for the opportunity and congratulation uh you know for a good set of numbers. So my first question is 1:05:41 1 hour, 5 minutes, 41 seconds in line with you know one of you know uh participant earlier asked. So just wanted to put the net again into context. So asking in a number of ways. 1:05:51 1 hour, 5 minutes, 51 seconds So in the near term and in the sustainable uh you know how do you how do GSWs look at it leverage how how is 1:06:00 1 hour, 6 minutes management how much is management targeting be to data in the near term and also sustainability. So just wanted to understand the peak it and you know 1:06:09 1 hour, 6 minutes, 9 seconds sustainable tech will be I think uh when JM uh in his opening 1:06:15 1 hour, 6 minutes, 15 seconds speech uh did mention it uh we have divided our upper limit headroom from 1:06:24 1 hour, 6 minutes, 24 seconds 3.75 down to three uh and that basically means we are much 1:06:31 1 hour, 6 minutes, 31 seconds more comfortable uh even while we are in the skipping journey. Instead of giving an absolute 1:06:38 1 hour, 6 minutes, 38 seconds net debt number, uh our preference will be to track the leverage ratios. 1:06:47 1 hour, 6 minutes, 47 seconds We we are uh as we said we are hopeful of uh a lower net debt to uh EIT numbers. Therefore we have revised our cap and we are comfortable below 2.5. 1:06:58 1 hour, 6 minutes, 58 seconds Yes. 1:07:01 1 hour, 7 minutes, 1 second Understood sir. And uh so my next question is a little structural in nature. I just wanted to understand when we look at your JV expansion plans, GSW 1:07:11 1 hour, 7 minutes, 11 seconds uh you know expansion plans for the next decade also we we see that largely blast furnace will govern the expansion stage 1:07:20 1 hour, 7 minutes, 20 seconds right although scrap EF on a smaller term you are putting them. So how far is India uh actually investing in scrap 1:07:29 1 hour, 7 minutes, 29 seconds based EF or EF you know assets? So how will blast one is keep on dictating the uh expansion in the near decision? 1:07:44 1 hour, 7 minutes, 44 seconds So even in our today's mix if I were to see I think about more than maybe close to 1/3 or 30% plus is uh electric hard 1:07:53 1 hour, 7 minutes, 53 seconds furnace based. Uh going forward uh we mentioned that we would be uh putting up a facility in Salo uh of 4 million tons 1:08:02 1 hour, 8 minutes, 2 seconds for uh green steam which will be again uh DR and scrap based. We are also uh now you know adding u uh scrap 1:08:11 1 hour, 8 minutes, 11 seconds processing facilities and uh in in the country we are beginning with uh west then we will add one more in south which 1:08:19 1 hour, 8 minutes, 19 seconds have already we have already started uh creating a supply chain for scrap uh uh buying and u and that's improving uh 1:08:28 1 hour, 8 minutes, 28 seconds every year. So we are increasing scrap collection and uh putting it back into our furnaces. that will further uh even in the converters if you do that will 1:08:37 1 hour, 8 minutes, 37 seconds further bring down your uh overall emissions but having said that you know we must be conscious of the fact that India doesn't have too much of scrap 1:08:46 1 hour, 8 minutes, 46 seconds generation as we speak it will take time for India to generate scrap on its own scrap availability uh from Europe or 1:08:54 1 hour, 8 minutes, 54 seconds from US may go down with their own focus on uh scrapbased production uh the cost of uh uh steel or the cost 1:09:04 1 hour, 9 minutes, 4 seconds of the technologies are also higher. Uh for now the best technology for India is blasphemousness based and using various 1:09:12 1 hour, 9 minutes, 12 seconds technologies to reduce the emissions from the blaspheming fuel consumption circulating gases back 1:09:21 1 hour, 9 minutes, 21 seconds uh using uh recovery uh uh gases and putting it back into the blast furnaces to reduce your metal. All those 1:09:30 1 hour, 9 minutes, 30 seconds dehumidifier various technologies are being used to reduce the emissions from the blast furnaces. That combination 1:09:37 1 hour, 9 minutes, 37 seconds with the grade of iron ore we have makes better sense. Thank you. 1:09:45 1 hour, 9 minutes, 45 seconds Next question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead. 1:09:51 1 hour, 9 minutes, 51 seconds Hi, thank you for taking my question. Uh so uh so industry grew by uh industry demand grew by 8% um in fiscal 26 while 1:09:59 1 hour, 9 minutes, 59 seconds uh you grew by 12% and um if I adjust uh numbers for BPSL and BMM you are guiding 1:10:07 1 hour, 10 minutes, 7 seconds for again 12% growth for fiscal 27 does that mean that you remain confident that the industry would grow at around 8% 1:10:16 1 hour, 10 minutes, 16 seconds that is uh number one and one related question I have is um your uh capacity 1:10:22 1 hour, 10 minutes, 22 seconds expansion um guidance is at around 12% keger through the years. So does that mean that you would continue to grow at 1:10:30 1 hour, 10 minutes, 30 seconds around 1.5 times of the industry um uh continuously for the next few years? Thank you so much. 1:10:41 1 hour, 10 minutes, 41 seconds Yeah. uh I think you know we all of us agree that you know India will be growing close to about 7% of uh GDP and 1:10:50 1 hour, 10 minutes, 50 seconds the elasticity for steel growth is close to 1.3 times to the GDP and we have seen 1:10:56 1 hour, 10 minutes, 56 seconds this uh in the past uh several years uh our guidance is about 8 to 9% or 7 to 9% would be the growth in the steel market 1:11:04 1 hour, 11 minutes, 4 seconds in the coming year and uh the way India is growing the way India is likely to be uh we have no doubt that it will be growing closer about 8 to 9% of the 1:11:12 1 hour, 11 minutes, 12 seconds steel side. Now this is the overall steel out of which flat steel is part of it and we are largely getting to the flat steel and we have no doubts that 1:11:21 1 hour, 11 minutes, 21 seconds about uh 10 to 12% of uh market uh uh sales growth for JSW would be a 1:11:28 1 hour, 11 minutes, 28 seconds challenge from those lines. So we are quite confident on that. 1:11:34 1 hour, 11 minutes, 34 seconds So our growth for sales for this year is about 10%. 1:11:41 1 hour, 11 minutes, 41 seconds Next question. If I adjust if I adjust BPSL from the base and BMM from fiscal 27, that implies around 12% growth. 1:11:49 1 hour, 11 minutes, 49 seconds Right. 1:11:51 1 hour, 11 minutes, 51 seconds No. Uh the way we have given our guidance uh it's excluding BPSL and including BM. 1:11:59 1 hour, 11 minutes, 59 seconds Right. Exactly. So if I adjust if I adjust BPSL from fiscal 26 base as well, your growth would be more like 12%. 1:12:06 1 hour, 12 minutes, 6 seconds Right. That's right. 1:12:10 1 hour, 12 minutes, 10 seconds It will it be adjusted growth from BPSL if you net up according to me it's about 1:12:16 1 hour, 12 minutes, 16 seconds 10%. You can our investor is 10%. And the production is 13%. Yeah. But they 1:12:23 1 hour, 12 minutes, 23 seconds can clarify that if there is any doubt we can reconcile that. 1:12:28 1 hour, 12 minutes, 28 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand the conference over to management for closing comments. Over to 1:12:36 1 hour, 12 minutes, 36 seconds you. So thank you operator just one clarification I would like to make this rash the jar we've got some queries uh 1:12:44 1 hour, 12 minutes, 44 seconds you know so regarding the accounting impact of PPSN we have a slide page number five in the presentation kindly refer to that BPSL has been 1:12:52 1 hour, 12 minutes, 52 seconds deconolidated at March end uh the numbers for PPSL will not be of financial 1:12:59 1 hour, 12 minutes, 59 seconds it would be equity announced and there is a line in the P&L which says income from associates and joy ventures so 1:13:06 1 hour, 13 minutes, 6 seconds that's why BP and financial good. So over to Sachara for any closing comments. 1:13:13 1 hour, 13 minutes, 13 seconds Um I think as we highlighted we we had a transformational year. Our operational 1:13:19 1 hour, 13 minutes, 19 seconds performance has been strong. Uh our balance sheet is much stronger and we have delivered making the foundation for 1:13:27 1 hour, 13 minutes, 27 seconds the next phase of growth. We have targeted 62 million tons uh in India by FI32. 1:13:33 1 hour, 13 minutes, 33 seconds Uh in addition to the joint ventures which would cumulatively add 16 million tons. Uh we believe that India uh 1:13:40 1 hour, 13 minutes, 40 seconds centric growth India is in a very longtime growth story for uh a decade or 1:13:46 1 hour, 13 minutes, 46 seconds two and we would be able to uh uh support that growth in the industrial ecosystem in India. Thank you very much. 1:13:54 1 hour, 13 minutes, 54 seconds If you have any other questions, please reach back to the investor. Thank you. 1:14:00 1 hour, 14 minutes Thank you members of the management team. On behalf of JSW Steel Limited, that concludes this conference. Thank you for joining us. And in the mouth is connect your mind.