Lloyds Metals And Energy Ltd — Q4 FY26

Lloyds Metals And Energy Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=9C1ri24m4Dc Published: 7 days ago

0:00 [music] 0:03 3 seconds Ladies and gentlemen, good day and welcome to the Lloyds Metals and Energy Limited Q4 FY26 earnings conference 0:11 11 seconds call. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to 0:19 19 seconds ask question after the presentation concludes. Should you need assistance during this conference call, please 0:26 26 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been 0:33 33 seconds recorded. I now hand the conference over to Mr. Shivang Singh. Thank you and over to you sir. 0:41 41 seconds Good afternoon everyone and thank you for joining us today. We aturus are pleased to host voids metals and energy 4Q in April 26 month. 0:53 53 seconds We have with us today Mr. Rajesh Gupta managing director Mr. Riyas Shik chief financial officer and Mr. SK Neri 1:01 1 minute, 1 second director of finance from preveni we would like to begin the call with brief opening remarks from the management following which we will have the forum open for an interactive Q&A session. 1:11 1 minute, 11 seconds Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been 1:19 1 minute, 19 seconds included in the earnings presentation shared with you earlier. Now I would like to invite Mr. Rajes Gupta to initiate the proceedings for the results call. Over to you sir. 1:29 1 minute, 29 seconds Good afternoon everyone. A very warm welcome to all the participants joining us on this call today. Thank you Shivant and the entire equinist team. We deep 1:38 1 minute, 38 seconds deeply value your continued uh support and engagement. It fills with me with immense pride to share that Lloyd Sheir 1:45 1 minute, 45 seconds had crossed the controller market cap of 1 lakh cr a milestone that would have seemed distant not long ago. This 1:54 1 minute, 54 seconds milestone belongs first and foremost to every single investor each of each and every one of you who backed us through 2:01 2 minutes, 1 second our 50-year journey through our early days of uncertainty and up to this milestone. This I'm saying from a guy as 2:08 2 minutes, 8 seconds a guy who always thought that IR meant industrial relations only. 2:14 2 minutes, 14 seconds Your patience is a reflection of trust you placed in us and we take that responsibility very seriously. Our sincere gratitude to all our investors 2:22 2 minutes, 22 seconds and stakeholders joining us on this call and on this journey. 2:26 2 minutes, 26 seconds Before I speak about this uh our performance, I want to take a moment uh to acknowledge our team at the mine at 2:34 2 minutes, 34 seconds the plants and all the offices all over the world. What has been achieved by us in n in the FI26 is quite extraordinary. 2:43 2 minutes, 43 seconds It did not happen by accident. It happened because a team because of a team that showed up every day with clarity of purpose and relentless focus on execution. 2:53 2 minutes, 53 seconds In the last 50 years, our in the last 5 years, sorry, in the last 5 years, our CAGR has on revenue is up by 109%. 3:03 3 minutes, 3 seconds And on PAT, the CG is a whopping 139%. 3:08 3 minutes, 8 seconds They show that we are a 50-y old startup. This year our standalone profit crossed 3,100 crores on a standalone 3:16 3 minutes, 16 seconds basis and 3,800 crores 3,829 crores on a consolidated basis. Consolidated revenue 3:24 3 minutes, 24 seconds cross 17,000 crores fast approaching the $2 billion mark. 3:29 3 minutes, 29 seconds On operations front our scaled from 10 million to 22 million tons which is 120% growth in a single year. The plet plant 3:38 3 minutes, 38 seconds commissioned at the end of Q2 reached 100% capacity utilization within 3:44 3 minutes, 44 seconds just 4 months 3 months 3 million tons in 9 months. A ramp up that very few plants 3:51 3 minutes, 51 seconds anywhere in the country have achieved year volume scale 56% year on year with the new skills ramping up as steadily as 4:00 4 minutes the current plant on going on to the projects we have invested heavily for the future 13,500 4:09 4 minutes, 9 seconds crores in the last four years and this will continue in Koni and Gertoli Konsuri in Guroli we have completed the two par plants 4:17 4 minutes, 17 seconds reaching capacity of 8 million tons making us the largest merchant pellet uh merchant pellet player by far and we 4:25 4 minutes, 25 seconds also commissioned along with this the 85 km slurry pipeline uh which is delivering now cost savings and operational stability in the mine and 4:34 4 minutes, 34 seconds hri we have completed our mine capacity increase from 3 to 55 million tons with a cable output of 26 million tons uh 4:43 4 minutes, 43 seconds over the last four years the BSU beneficiation project is progressing pilot results have delivered excellent yields 4:51 4 minutes, 51 seconds and major engineering contracts are completed. Construction machine is mobilized. All major machine are ordered on a key European supplier and we are 5:01 5 minutes, 1 second well in target of first phase readiness by December 2027. 5:06 5 minutes, 6 seconds This plant the BSQ benefit is a trail in India and will lead to greening of our company in a ste cycle in very dramatic ways. 5:16 5 minutes, 16 seconds Meanwhile in Chundraur the DR capacity is doubled power capacity is doubled to 100 million tons uh 100 megawatt sorry 5:24 5 minutes, 24 seconds and it is stabilized the steel plant that is a blast furnace arc furnace coven and the rolling mill of 1.2 2 5:30 5 minutes, 30 seconds million t wire rod is well underway for commissioning for last quarter this year. 5:37 5 minutes, 37 seconds The engineering of this third parrot plant is also near complete uh nearing complete in Chandraur along with the 195 5:44 5 minutes, 44 seconds km pipeline from Hadri to go via Chandraur stockyard. This this pipeline will reduce logistic cost for most of 5:51 5 minutes, 51 seconds the iron output by us uh by more than 500 rupees a ton and is in advanced 5:58 5 minutes, 58 seconds planning stage. Few milestones for us on the efficiency front. The Aida margin 6:05 6 minutes, 5 seconds has held steady at approximately 34% across both the last two quarters 6:12 6 minutes, 12 seconds demonstrating structural cost efficiency and not one-off gains. Return on capital employed stood at 56% X CWIP for FI26 6:23 6 minutes, 23 seconds and return on equity at 37%. These are world class metrics. 6:28 6 minutes, 28 seconds Rising parity with competition is maintained along with a volume increase of 120% and new product like parent 6:35 6 minutes, 35 seconds being started. Romania ranked number one among 38 open cash mines in India by the ministry of coal. 6:44 6 minutes, 44 seconds uh reflection of operational excellence across the growth across the group. 6:50 6 minutes, 50 seconds Other than Sudagar, the growth in uh Kwani operations in Odis and Dhakan uh continue with three new mining 6:58 6 minutes, 58 seconds operations starting a few key updates on our copper. Copper which is the new gold and Congo which is 7:06 7 minutes, 6 seconds our new Surjagut is led by Surya. I want to uh uh congratulate his team and him 7:13 7 minutes, 13 seconds for successful commissioning of the of the Surya copper plant in six months. 7:18 7 minutes, 18 seconds They're the first Indian integrated player in the copper business. 7:23 7 minutes, 23 seconds Copper is the backbone of energy transition, electrification and renewables. 7:30 7 minutes, 30 seconds It is the perfect foil to our one mine portfolio and also our international entry into critical minerals. We have 7:38 7 minutes, 38 seconds defined pathway to expand capacity to 30,000 tons in peranom at Surya mines. 7:45 7 minutes, 45 seconds In addition, we have acquired 49% in KF group. This is the first deal after the US and Congo signed the critical mind 7:52 7 minutes, 52 seconds middle agreement in December 2025 and we are proud to be at the forefront of the strategic realignment in global critical minerals. 8:02 8 minutes, 2 seconds MF is a large operating copper cobalt platform in the uh Katanga copper belt with 50 8:09 8 minutes, 9 seconds plus permits. Cobalt capacity is expected to scale to approximately 20,000 tons in the two operating plants. Along with 8:18 8 minutes, 18 seconds this, we will be achieving 100,000 tons of copper uh over the next 3 to 5 years from both KMF and Surya. 8:28 8 minutes, 28 seconds Let me give you our FY27 outlook briefly. The steel markets and therefore iron or are as strong as ever especially 8:35 8 minutes, 35 seconds in Indian market. Our FI27 guidance reflect the next change in our scale. 8:43 8 minutes, 43 seconds Animal production at 26 million tons. 8:45 8 minutes, 45 seconds Dispatches of 27 million tons. Per of 7.75 to 8 million tons. DR at 125,000 tons. 8 million 8:53 8 minutes, 53 seconds at 825,000 tons. And a formal entry into steel making with wire rod uh mill production at around 150,000 tons. We 9:03 9 minutes, 3 seconds expect annual cost savings to surpass 2,000 crores uh peranom as all logistics and sustainability initiatives are maturing by March 28. 9:14 9 minutes, 14 seconds FY26 has been a year of extraordinary achievement. Our financials have never been stronger. Our operational foundation has never been robust and our 9:22 9 minutes, 22 seconds strategic pipeline in Feris in Paris in steel and now in copper has never been more exciting. We remain deeply grateful 9:29 9 minutes, 29 seconds to all our investors partners and every member of our team with without taking more of your time. I hand over the call to Riyaz uh Mr. Nared and Mr. 9:39 9 minutes, 39 seconds Himur will take you through the detailed financial operations of the TWI and the Congo operations as well. Thank you once again everybody. 9:51 9 minutes, 51 seconds Thank you Raj G. Good evening everyone. 9:54 9 minutes, 54 seconds I want to open with a line from Aristotle that I believe captures exactly what FI26 means for us. We are 10:03 10 minutes, 3 seconds what we repeatedly do. Excellence then is not an act but a habit. 10:10 10 minutes, 10 seconds That is precisely the story of our FI26 numbers. The margin you will see today are not a one-time event. They are the 10:18 10 minutes, 18 seconds outcome of systems we have built, disciplines we have embedded and habits of execution that run deep across every 10:25 10 minutes, 25 seconds function of this organization. With the context, I will take you through the standalone financials and operating performance for Q4 and the full year 10:33 10 minutes, 33 seconds FY26 focusing on the numbers, margins, and capex. 10:38 10 minutes, 38 seconds For the financial highlights for quarter 4 F26 standalone, this has this has been the strongest quarter we have ever reported on a standalone basis. The 10:47 10 minutes, 47 seconds total income came in at rupes 4,977 crores, registering a remarkable 310% 10:54 10 minutes, 54 seconds year-on-year growth. EITA was rupes 1679 crores up 498% yearonear a near sixfold 11:02 11 minutes, 2 seconds jump in absolute profitability that stood at rupees 1066 crores up 368% yearonearita 11:10 11 minutes, 10 seconds margin expanded to 33.73% in quarter 4 an improvement of more than thousand basis point year on year for the financial highlights of the full 11:19 11 minutes, 19 seconds year FI26 FI26 without doubt the best year Lloyd Metals has ever had across every single 11:26 11 minutes, 26 seconds metric. Total income for FI26 stood at approximately 13,838 crores, up 104% 11:35 11 minutes, 35 seconds year-onear. We more than doubled our revenues in a in a single year. EIDA came in at 4673 crores 11:43 11 minutes, 43 seconds growing 133% year-on-year. PAT was rupes 3194 crores up 120% yearonear. EITA 11:52 11 minutes, 52 seconds margin for the full year stood at 33.77% up 418 basis point yearon year. 12:01 12 minutes, 1 second The margin improvement is not oneoff. It is structural and is coming from higher share of value added products especially 12:08 12 minutes, 8 seconds pellets in the revenue mix. Benefits of the slurry pipeline which has started flowing meaningfully into the P&L. 12:14 12 minutes, 14 seconds Better utilization across mining pellets and DR. operating leverage as volume scaled significantly. 12:21 12 minutes, 21 seconds Coming to the operational highlights of for Aronor, Aronode production for quarter 4 FY26 was 9.09 million tons, up 529% 12:30 12 minutes, 30 seconds yearonear. For the full year, production stood at 21.96 million tons, up 120% yearonear. Iron sales volume for quarter 12:39 12 minutes, 39 seconds 4 FY26 was 6.16 million tons, up to 71% yearonear. For FY26, total sales were 16.18 million tons, up 71% yearonear. 12:51 12 minutes, 51 seconds Realization per ton stood at rupees 5,848 in quarter 4 and rupes 5,86 for the full 12:59 12 minutes, 59 seconds year. EITA per ton was rupes 1894 in quarter 4 and 1 for FY26 reflecting 13:06 13 minutes, 6 seconds strong unit economics. Our monthly run rate in April 2026 is already at approximately 2 million tons under 13:14 13 minutes, 14 seconds underpining a strong start for of two to FI27. 13:22 13 minutes, 22 seconds Now the for the operational highlights for pellets pellet production for quarter 4 FI26 was 1.08 million tons and for the full year was 3.03 million tons. 13:33 13 minutes, 33 seconds The pellet plant commence commercial production at the end of f quarter 2 FI26. Within 4 months of commissioning, it has already reached 100% capacity 13:41 13 minutes, 41 seconds utilization which is an exceptional execution outcome. Realization per ton for quarter 4 FI26 stood at 9 rupees 9,590 13:50 13 minutes, 50 seconds supported by strong product quality and strategic geographic positioning. Epita per ton for pellet stood at rupees 4,40 13:57 13 minutes, 57 seconds in quarter 4. robust margin driven by captive iron or slurry pipeline based evacuation and strong demand domestic demand. I'm also pleased to share that 14:06 14 minutes, 6 seconds the second pellet plant was commissioned in May 2026. This takes our total pellet capacity to 8 million tons peranom and 14:12 14 minutes, 12 seconds positions us strongly for FY27 volume growth. 14:17 14 minutes, 17 seconds For the operational highlights of DR and power, DRRi sales volume for quarter 4 FI26 was 14:24 14 minutes, 24 seconds 180 188,000 tons up 171% yearonear for the full year. Uh DR volumes were 14:32 14 minutes, 32 seconds 480,000 tons up 56% yearonear. DR realization stood at rupees 27,36 14:40 14 minutes, 40 seconds per ton in quartto with epida per turn of 7,999. Strong unit economics 14:47 14 minutes, 47 seconds power volumes were up 48% yearonear in quarter 4 FI26 14:54 14 minutes, 54 seconds the value added mix value added products now account to for 32% of FI26 standalone revenues up from 20 20% in 15:02 15 minutes, 2 seconds FI25 in terms of EIT contribution the share is 30% up from 11% in FI25 this 15:10 15 minutes, 10 seconds mix shift is central to improving margin stability reducing volatility and enhancing overall return metrics. With pellet plant 2 now commissioned and the 15:19 15 minutes, 19 seconds wire rod mill on track, this VAP share is expected to improve further in FI27. 15:27 15 minutes, 27 seconds Coming for the capeex update, the company has incurred capex of approximately 13,500 crores during FI24 to FI26. 15:36 15 minutes, 36 seconds FI26 standalone capex alone was 8,100 close to 8,100 crores reflecting the significant investment phase we are 15:44 15 minutes, 44 seconds currently in. Key projects funded include two pellet plants DR expansion slurry pipeline investments and and the ongoing capex of the city plant. 15:54 15 minutes, 54 seconds Importantly, CAPEX execution is on track and within approved budgets. To give further color on capex of 3,500 crores, 16:02 16 minutes, 2 seconds we have capitalized 5,100 crores of assets comprising mainly of pellet plant 1, slurry pipeline and the DRI plants. Rups 1850 crores is capital advances. 16:12 16 minutes, 12 seconds remaining is CWIP which you can see is in our published in our published numbers 16:18 16 minutes, 18 seconds the balance sheet and the net debt standalone net debt as on 31st March 2026 stands at rupes 3,91 cr a 16:26 16 minutes, 26 seconds manageable level given our EIDA generation despite an intensive capex cycle the balance sheet remains comfortable strong EIA has supported 16:34 16 minutes, 34 seconds internal approval funding and controlled leverage working capital continues to be well managed helped by faster dispatch 16:41 16 minutes, 41 seconds app cycles and healthy demand conditions. To summarize, FI26 standalone performance has been extraordinary across every metric. 16:49 16 minutes, 49 seconds Margins are structurally strong. Apex execution remains disciplined and the pipeline into FI24 is the strongest it 16:56 16 minutes, 56 seconds has ever been. With that, I will hand over to Naridi G for performance. 17:08 17 minutes, 8 seconds Thank you Rajes and Viad. Good evening everyone. 17:13 17 minutes, 13 seconds For us at Trini, growth has always been about disciplined, execution, consistency, and doing the fundamentals 17:20 17 minutes, 20 seconds right day in and day out. Let me take you through driven performance in Q4 and the full year FY26. 17:30 17 minutes, 30 seconds Financial overview tip FY26. 17:33 17 minutes, 33 seconds From a financial perspective, FY26 has been a transformational year for the TVI. The total income for the full year 17:41 17 minutes, 41 seconds stood at approximately 8,000 crores to be precise 7997 cr with an IITA of 1990 cr and IITA margin of approximately 25%. 17:53 17 minutes, 53 seconds This compares to the IITA of,62 crores and margins of approximately 16 cr in FY25 and nearly doubling of IITA in a single year. 18:03 18 minutes, 3 seconds In Q4 FY26 specifically, IBITA was 910 cr with margins of 36% reflecting 18:11 18 minutes, 11 seconds exceptional operational operating leverage as volume 16. Cash PAT for the 18:17 18 minutes, 17 seconds full year stood at 1196 cr with cash pad margins of approximately 15%. The improvement in margins reflects better 18:27 18 minutes, 27 seconds operating leverage, higher equipment utilization and continued focus on cost discipline. across all project sites. 18:35 18 minutes, 35 seconds Now I'll come to the operations at Gertioli. The environmental capacity at Surjagar mines has been increased from 10 million ton peranom to 55 million 18:44 18 minutes, 44 seconds tons peranom. A massive regulatory win that unlocks significant volume headroom. FY27 volume growth is expected 18:52 18 minutes, 52 seconds to be more than 75% including BHQ underpinned by full-scale operations at 18:59 18 minutes, 59 seconds Central Hill and completion of FY27 equipment mobilization as per schedule. 19:05 19 minutes, 5 seconds We have now deployed 88 electric equipment units at the mine and 20 electrical units at the railway siding 19:14 19 minutes, 14 seconds that firmly establishes our green mining credentials. BHQ verification plant excavation has commenced with 22 large 19:22 19 minutes, 22 seconds scale equipment mobilized. 14 mobile crushers and 26 heavy earth moving machines are also deployed for BHQ 19:30 19 minutes, 30 seconds crushing at the mine. We have also established a full EV and LG ecosystem at Sjager mines. 100 ton diesel dumper 19:39 19 minutes, 39 seconds has been successfully converted to LG hybrid operation which is a sign significant sustain sustainability 19:47 19 minutes, 47 seconds milestone. Now Odisa operations our Odisa operations also continue to scale meaningfully. 19:53 19 minutes, 53 seconds One of the mine MGM mines has been awarded the prestigious five-star rating by Indian Bureau of Mines which reflects 20:01 20 minutes, 1 second our operational quality. Guali iron or mine production has also been enhanced from 7.4 4 million t peranom to 9 20:09 20 minutes, 9 seconds million t peranom. Surihan mine has scaled up from 0.57 million tons to 4.99 20:16 20 minutes, 16 seconds million tons peranom. These are significant capacity additions. 20:21 20 minutes, 21 seconds Dalpahar iron or mine it's a new mine and the operations are expected to commence in Q1 of FY27 with the FY27 production target of 3 million tons. 20:33 20 minutes, 33 seconds Lassada Pacheri mines again a new mine the MDPA has been signed and operations are to commence in Q1 FY27 with the FY27 20:42 20 minutes, 42 seconds production target of 1.5 million tons peranom Shri metallic mines capacity has been increased from 1.5 million tons to 20:51 20 minutes, 51 seconds 1.8 28 million ton. Overall, the Odisa operation volumes are expected to increase by 39% year to year to 34 to 35 million tons in FY27. 21:04 21 minutes, 4 seconds One of the mining lead Sasha mine Saga Sai mine was selected for the 11th Piki Excellence Award and acknowledgement of 21:12 21 minutes, 12 seconds our operational and sustainability standards. 21:15 21 minutes, 15 seconds I'm coming to coal Svenic Mining our subsidiary PB West and PB Northwest. PB West has achieved the highest 21:23 21 minutes, 23 seconds distinction of a five-star rating from the ministry of coal ranking number one among 383 opencast mines across India which is an extraordinary distinction. 21:34 21 minutes, 34 seconds PB mine was also awarded the overall winner of at the 68th annual mine safety week receiving the Suraka Shikhar gold 21:43 21 minutes, 43 seconds award. INR set at a national record in FY2 526 completing over 1,400 houses 21:51 21 minutes, 51 seconds which is 143% of the previous year's target and acquiring over 420 acres of land which is 103% of the target. Now 22:00 22 minutes record yearly performance at PB West that OB removal has been at 72.8 million 22:07 22 minutes, 7 seconds BCM coal production was 17.5 million tons coal crushing and dispar 17.4 4 million tons. IPCC commissioned on 11th August 25 handling 2.89 million tons. 22:21 22 minutes, 21 seconds Electrical loading 28 21.8 million BCM that is up to up by 80% year on year. 22:28 22 minutes, 28 seconds Electric drill 1.5 lakh m that is up 45% yearon year. Wireless communication 22:36 22 minutes, 36 seconds system implemented across all HMM and midscale equipments. 22:42 22 minutes, 42 seconds Now coming to international and new ventures. International on Indonesia we are rationalizing lower margin 22:49 22 minutes, 49 seconds operations and plan to redeploy equipment to higher return opportunities in Congo and PNG. 22:57 22 minutes, 57 seconds On Geomor gold mining our MDO and exploration contract commencing January 26. We have a targeted IITA contribution 23:07 23 minutes, 7 seconds of approximately 60 crores in FY27. A meaningful new revenue stream with further upside up upside as exploration 23:15 23 minutes, 15 seconds progresses. Now outlook Reveni's focus remain clear, scale responsibly, 23:23 23 minutes, 23 seconds execute efficiently and protect margins through productivity and cost optimization. The pipeline for FY27 23:30 23 minutes, 30 seconds looks strong across Gertioli, Orisa and coal operations. We are confident of sustaining both growth and 23:37 23 minutes, 37 seconds profitability. With that I hand over the mic to Ken. Thank you. 23:47 23 minutes, 47 seconds Yeah. Hello. We'll open up for the questions. Sim. 23:59 23 minutes, 59 seconds Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on 24:07 24 minutes, 7 seconds their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. 24:15 24 minutes, 15 seconds Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assemble. 24:28 24 minutes, 28 seconds The first question is from the line of Amit Tikshik from GS. Please go ahead. 24:35 24 minutes, 35 seconds Yeah. Hi. Uh good evening everyone and uh congratulations for uh good performance. Uh a couple of questions from my side. The first one is on uh 24:45 24 minutes, 45 seconds slide number 25 uh where you have this arrangement with Tata Steel on uh on the BRPL project. uh 24:53 24 minutes, 53 seconds just wanted to understand the economics of this because uh you have mentioned that the free cash and the profit accuring to us uh I mean is is quite 25:02 25 minutes, 2 seconds substantial. So just wanted to understand the capeex part of it and uh how we are you know looking at 25:10 25 minutes, 10 seconds operations to ensure that uh this kind of uh these kind of numbers in terms of free cash acrew to us. 25:21 25 minutes, 21 seconds Yeah thanks for uh for uh the question. 25:25 25 minutes, 25 seconds So as you rightly said I mean this is a business which is already in place. uh so for generating this kind of free cash 25:33 25 minutes, 33 seconds flow the amount of sustaining capex uh is not much so that's why the free cash flows are high uh because this is uh 25:42 25 minutes, 42 seconds take out pay contract that we have with Tatast steel as a captive consumer uh this is of great strategic benefit to 25:51 25 minutes, 51 seconds Tatastel because uh this operates a pipeline which is uh near about the mine mouth of their existing mines 26:00 26 minutes and uh it opens up near the Kalinda plant within the 5 km radius. So because of which the entire capacity is 26:08 26 minutes, 8 seconds dedicated to them and as a part of our uh uh shareholder agreement uh this was 26:15 26 minutes, 15 seconds agreed as a margin for the existing assets. So that's why this is a large amount of free cash flow. Uh you would 26:23 26 minutes, 23 seconds also uh uh uh recall that we had signed the uh MOU with Tatas for evaluating 26:30 26 minutes, 30 seconds multiple projects uh which involved uh uh some of the projects that we'll be taking up with them. It involved working on slurry pipelines for their projects. 26:42 26 minutes, 42 seconds It involved uh steel plant facility in Geroli. uh and it also involved uh uh 26:51 26 minutes, 51 seconds new MDO projects that we'll be doing with them. So given all of that uh we are progressing on some of those 26:57 26 minutes, 57 seconds projects. Uh so as of now uh those projects capex is still being finalized because they are still in the discussion 27:06 27 minutes, 6 seconds and finalization stage but some of these free cash flow will go towards uh generation of uh and development of 27:13 27 minutes, 13 seconds those projects. uh but we have uh uh we intend to maintain uh high return on capital for such 27:22 27 minutes, 22 seconds projects uh so that uh it is deployed and suitable for maintaining the high return on capital that we have. 27:32 27 minutes, 32 seconds Uh so just a related question to this you know because our expertise in laying flurry pipeline in in record time is 27:40 27 minutes, 40 seconds quite well documented. So is there some exclusivity that you have with Tata Steel or you can approach any other 27:48 27 minutes, 48 seconds steel player because lot of them are looking for the there's no Okay. Okay. Okay. Okay. Uh the second 27:56 27 minutes, 56 seconds question I have is on the Congo operations and constellations for starting the copper operations over there and just wondering what kind of 28:05 28 minutes, 5 seconds incremental capex uh you expect to incur in both copper and cobalt project uh to reach the capacities that you have 28:13 28 minutes, 13 seconds mentioned also on the related note this geography is not the easiest one to work so what specific steps you are taking to 28:21 28 minutes, 21 seconds ensure that you know because I mean you have started operation And I would say I don't recall any other company that has done that in such a small time. 28:32 28 minutes, 32 seconds Yeah. Uh so thanks again Amit. Yes. 28:35 28 minutes, 35 seconds Definitely it's a new territory and that's why the new opportunities are coming out of it and uh that's why we 28:41 28 minutes, 41 seconds see that this was a very unique uh case uh which uh presented us an asset which 28:49 28 minutes, 49 seconds was near operational. Uh so to answer the first question how much capital expenditure will be required this plant 28:57 28 minutes, 57 seconds is near about uh 85 to 90% complete. Uh we are already engaging with the EPC 29:06 29 minutes, 6 seconds players. These are worldclass EPC players. The plants are designed and uh 29:13 29 minutes, 13 seconds uh uh built by people like auto tech uh and big rim from China. So we are getting them back on the ground. I think 29:22 29 minutes, 22 seconds uh within this month we are getting them up and running. Uh in terms of completion of the plant uh the total 29:28 29 minutes, 28 seconds plant capex initially was near about uh $1.1 billion out of which uh $800 plus 29:37 29 minutes, 37 seconds million has already been spent. uh based on our current uh evaluation uh 29:45 29 minutes, 45 seconds including the initial working capital and the mine development which will be feeding these plants. Uh it would 29:52 29 minutes, 52 seconds require near about uh 200 to $260 million. We are still working on the 29:58 29 minutes, 58 seconds exact numbers. Uh but this is a fairly broad estimate which can be taken at the 30:04 30 minutes, 4 seconds moment. uh in terms of uh players who are operating and uh working in the 30:12 30 minutes, 12 seconds mines in Congo, it's a fairly established mining destination. Uh it had its challenges earlier. Uh but given 30:20 30 minutes, 20 seconds the rising demand of copper and cobalt as a strategic material for defense products particularly apart from the batteries uh this is something which is 30:28 30 minutes, 28 seconds of great importance to us. So US uh uh because I mean uh US has also started 30:36 30 minutes, 36 seconds realizing that a lot of supply chain of critical minerals is uh is basically residing with China and whenever this 30:45 30 minutes, 45 seconds tariff barriers and uh different problems happened they saw that the supply chain can be choked. So that was one of the key things which kind of 30:53 30 minutes, 53 seconds drove us to this uh because having this kind of an asset uh at such a large scale yes you're right uh it is a high 31:01 31 minutes, 1 second risk if it were doing it alone uh but that risk is mitigated by the fact that we are partnering with the US and US has 31:08 31 minutes, 8 seconds a strategic uh and critical minerals deal which was signed in 2025. So in fact we have very strong support from US 31:16 31 minutes, 16 seconds and uh given the kind of support that US is uh building with DRC uh there is a 31:25 31 minutes, 25 seconds strong cooperation and this is the first project under this so flagship project so it becomes derised by the same amount 31:33 31 minutes, 33 seconds uh it's something what you can probably see with uh uh sujagar like it was one of the first projects that we opened up 31:40 31 minutes, 40 seconds here uh so of Of course risk was there but this was the first project in Maharashtra. So for Maharashtra iron ore 31:47 31 minutes, 47 seconds was new and now Maharashtra is looking at opening up many more mines and coming up uh additional iron ore. So this gives 31:55 31 minutes, 55 seconds us a good entry and also helps us build a very strong partnership with us because uh they see us as reliable 32:03 32 minutes, 3 seconds credible operators. uh so in difficult terrains wherever the US companies are not able to operate or not able to scale 32:11 32 minutes, 11 seconds as fast as they would want the supply chains to be built uh we would uh be a partner of choice uh so this is an 32:20 32 minutes, 20 seconds alternate to China on the global scale and that's why we see this partnership uh is something which will be uh quite 32:29 32 minutes, 29 seconds important and also dered in the entire process because of the presence of US quite clear sir. Thank you so much and all the best. 32:42 32 minutes, 42 seconds Thank you. The next question is from the line of Vikas Singh from ICICI securities. Please go ahead. 32:50 32 minutes, 50 seconds Good afternoon sir. Thank you for the opportunity and congratulation on very good set of number. So my first question 32:57 32 minutes, 57 seconds pertains to if I look at our iron or ramp up has been largely been done while 33:04 33 minutes, 4 seconds the coal had not been ramping up. So are we going to expect uh uh volume growth 33:11 33 minutes, 11 seconds in this segment because if I remember correctly couple of quarters back we have given a pretty uh good numbers in 33:18 33 minutes, 18 seconds terms of revenue guidance on the TV side and what has caused this margin expansion on the year-on-year basis from a bit margin of 16% to 26%. 33:33 33 minutes, 33 seconds In iron or we are starting two new mining leases and the other mining leases where we are already doing we have got the environmental clearances 33:42 33 minutes, 42 seconds enhancement and due to that the aronal production is going to be higher as compared to the earlier years and in 33:50 33 minutes, 50 seconds respect of coal as we stated in donation operations we are slightly slowing down due to lower margins and sharpened 33:57 33 minutes, 57 seconds operations the contract volumes and all these things we are achieving. So yes, we'll be increasing 34:05 34 minutes, 5 seconds our revenues quantity in iron or more as compared to coal and sujakar also we have got a large expansion. So there 34:14 34 minutes, 14 seconds also we are going to increase it. So this is the reason that iron or expension will be much more as compared to coal. 34:20 34 minutes, 20 seconds Okay. So just uh a follow-up question on this. We in the remarks somebody said that 37 39% higher iron production could 34:29 34 minutes, 29 seconds be there. Would our revenue follow the similar model or the rates are different and uh revenue growth would be lower than that? 34:40 34 minutes, 40 seconds No no revenue growth will be there and we'll be getting the benefit of economies of scale. So our revenues would be much much better. 34:47 34 minutes, 47 seconds No. So, so would that go in tandem with the volume at uh assuming the same kind 34:54 34 minutes, 54 seconds of rates we are getting across the board or uh the intensity would be lower than the volume growth. That's what I was asking effectively. 35:04 35 minutes, 4 seconds No, more or less it will be the same. 35:06 35 minutes, 6 seconds Top line would be more or less the same bottom line would be faster because of uh economies of scale. 35:12 35 minutes, 12 seconds Notice sir. So my second question pertains to our realization this quarter. If I see iron ore and pallet there was a deviation one has gone up on 35:20 35 minutes, 20 seconds sequential basis while the par realization gone down which is a little bit surprising. So could you explain what has happened here and what is this 35:28 35 minutes, 28 seconds spot realization? Have we also taken price hike uh today? 35:34 35 minutes, 34 seconds What has gone down so sequentially was down uh as per our own 35:41 35 minutes, 41 seconds presentation while the iron ore had been up uh sharply. So just wanted to understand as volumes have gone up in pellet we 35:50 35 minutes, 50 seconds have had to search new markets and that is why the pellet realizations are little lower because the newer markets are at a distance some tenders were 36:00 36 minutes there earlier which we have not been able to reestablish again and we've been doing a little bit more export 36:06 36 minutes, 6 seconds uh on the uh uh uh [clears throat] top on the pricing of iron uh it's more or less driven by the market we are in line 36:15 36 minutes, 15 seconds with the rest of the market and uh the steel market. Noted sir. 36:22 36 minutes, 22 seconds And sir, lastly if you could give us some update on your BHQ project uh because next year if I remember correctly we wanted to do more of a low 36:31 36 minutes, 31 seconds grade uh beneficiation versus the highrade sales. So, so, so our uh our uh in my opening remarks I mentioned 36:40 36 minutes, 40 seconds that by December 2027 the BSQ first phase of 30 million tons input and around uh 12 million tons output will be 36:48 36 minutes, 48 seconds uh commissioned uh and uh the uh the land is with us. The uh uh the equipment has been uh mobilized. 37:01 37 minutes, 1 second The construction equipment has been mobilized. the crushing of the material has started and we'll be pushing the metal onto the site and getting it 37:09 37 minutes, 9 seconds evacuated from the site in this year and uh over next two years uh that mater will be accumulated there and uh the as 37:18 37 minutes, 18 seconds far as the project itself is concerned we are uh going ahead with uh the total 37:24 37 minutes, 24 seconds engineering is Montamote complete the uh main ordering of 85 90% has been ordered 37:31 37 minutes, 31 seconds on very five fivestar parties. Uh the parent plant has helped us a lot in establishing the final engineering and that is the status. 37:43 37 minutes, 43 seconds This is since we are beneficiating and the mining ratio to output is lower. Do we expect that once the BHQ picks up our 37:51 37 minutes, 51 seconds overall blended pattern on the iron oide atlas would settle on a lower scale? We think it's on a higher scale because BHQ benefited or will be 66 67%. 38:04 38 minutes, 4 seconds The cost upside is around 2003 rupees. I think we explained in the last con call and particularly with the revised 38:11 38 minutes, 11 seconds notification of the government on uh uh reduced royalties. So the upside on the cost will be around 200 300 rupees. The 38:20 38 minutes, 20 seconds upside on the selling price or on the usage level even if you do it internally will be at least 700 800 rupees. So we 38:27 38 minutes, 27 seconds think that the AIDA will go up once the BSQU is commissioned. 38:32 38 minutes, 32 seconds So wouldn't the mining cost per ton of the final material would be three times two and a half times higher. So that 38:39 38 minutes, 39 seconds should get added in the cost not only on the beneficiation there much bigger uh scale volumes uh so 38:49 38 minutes, 49 seconds we would have uh like I said the total cost would be in that range uh register and the royalties are much less this is adjusted for the mining ratio 38:58 38 minutes, 58 seconds you're talking about absolutely absolutely I'm talking about netible or notice sir thank you sir and all the 39:09 39 minutes, 9 seconds Thank you. The next question is from the line of Jasendep Singh from Noora. Please go ahead. 39:17 39 minutes, 17 seconds Hi, thank you for the opportunity and congratulations for a great set of results. Uh so my first question is regarding KEX as as you know you were 39:26 39 minutes, 26 seconds highlighting uh how much capeex will be required for the second uh copper that you have entered. I just wanted to 39:34 39 minutes, 34 seconds understand you know with that uh in mind what will be our FYI 2728 capex guidance 39:41 39 minutes, 41 seconds for console uh lawyers now and and in in line with that you know with capex increasing the earnings are also 39:49 39 minutes, 49 seconds increasing significantly uh but what will be a sustainable net debt to uh a bit or leverage numbers for the company 39:57 39 minutes, 57 seconds and is the company looking for any deleveraging uh in the you know 272 28 that that will be my first question. 40:06 40 minutes, 6 seconds So most um thanks Jashand uh the total capeex excluding the ISP 40:15 40 minutes, 15 seconds for the konsari unit uh uh is around 28,000 crores that is what we have uh of which we have already spent as I have 40:24 40 minutes, 24 seconds mentioned earlier is 13,500 odd crores so that remains with the 14,500 crores to be spent over the next 2 years uh 40:33 40 minutes, 33 seconds next year our plan does around between 10,000 to 11,000 crores is what we are planning to expand because uh that will 40:40 40 minutes, 40 seconds include a lot of portion from the uh BHQ plant and the um uh ISP at uh Chandapur. 40:48 40 minutes, 48 seconds So it should be on 10,500 and next year it should be 4,500 plus. Yes. Uh in 2728 by that time we would be clear on the uh 40:56 40 minutes, 56 seconds largest steel plant at Konari. So the and and also the copper. So all those expenditures will be further in included 41:04 41 minutes, 4 seconds in this and and uh should be a larger number. 41:09 41 minutes, 9 seconds So sir largely copper uh capex will start from FYI 28 you know is that right and also on deleveraging or your 41:17 41 minutes, 17 seconds sustainable net debt will be done FY27 also there will be copper investments. 41:24 41 minutes, 24 seconds Yeah. So actually majority of the copper investments will get done in by 27. So we should have the revenues and 41:32 41 minutes, 32 seconds profitability from copper coming in from 28 because as I said the plants are near about 85 to 90% complete. uh so we want 41:41 41 minutes, 41 seconds to get them running ASAP and that's why uh large part of the capex which actually be done this year 41:49 41 minutes, 49 seconds and and to this we would have to add thei capex also since you were consolidated capex would be around 1,000 cr in this 41:57 41 minutes, 57 seconds coming year in this current year and the 10,000 to 11,000 cr also includes copper is my understanding 42:06 42 minutes, 6 seconds right sir no that's on standalone basis That sounds so consol 42:19 42 minutes, 19 seconds you are asking. Yeah. Okay. Yes sir. 42:21 42 minutes, 21 seconds So so so basically on a console basis uh uh uh copper will be as I mentioned earlier near about 200 to $260 million. 42:32 42 minutes, 32 seconds Uh so we can add near about 2,000 crores. So around 15,000 15,000 crores roughly. 42:43 42 minutes, 43 seconds And so number would be,000 for capex in this 27 26 27 42:50 42 minutes, 50 seconds right sir and and any plan of uh you know leveraging because most of the debt 42:56 42 minutes, 56 seconds on the console book is from Sveni. So any plan for the next two years to reduce the debt on Sveni and what is 43:04 43 minutes, 4 seconds your target mate to aid that that the management is internally working with? 43:09 43 minutes, 9 seconds Yeah debt yes we are looking at if we have plans of 43:16 43 minutes, 16 seconds uh the the RPS is as it is reducing it was just paid around 700 or rupees in the month of April for that the RPS. So 43:24 43 minutes, 24 seconds that uh 2,100 crores in the debt in is uh RPS uh office 700 crores is happening. So over the next 3 years the 43:32 43 minutes, 32 seconds 2,000 cr rupees reduces. So so the debt automatically comes down 43:38 43 minutes, 38 seconds and the regular payments are all understood. And so my last question again because you know Lloyd is 43:46 43 minutes, 46 seconds expanding and uh growing at such a rapid pace. Uh will all the capex uh will the company be able to manage all the capex 43:55 43 minutes, 55 seconds for internal recruitment or is there uh a plan or is management looking towards raising some more capital either through 44:03 44 minutes, 3 seconds debt or equity in near future? How is management looking towards it? 44:10 44 minutes, 10 seconds Uh yes debt we would be raising uh as we have mentioned we should be will have a have a proper mix of uh debt the eida 44:19 44 minutes, 19 seconds should be around 1 1.5 times of the eida not uh more than that that is what our numbers would be uh equity as of now 44:26 44 minutes, 26 seconds we've not not planned of anything and we don't in near future so we don't intend on not uh any equity would be if ever would be 44:34 44 minutes, 34 seconds in the books of taining if we go for an IPO in that company at a later stage not in this year. 44:43 44 minutes, 43 seconds Understood sir. And so my last question will be largely towards uh the new government regulation which came which 44:50 44 minutes, 50 seconds is now you know is fixing uh ASP for uh iron oral grade below 45%. With uh you 44:57 44 minutes, 57 seconds know or the close to two3 of your reserves uh being of in that category uh while understand bonification will be 45:05 45 minutes, 5 seconds there and you will be selling output will be higher grade. uh but just wanted to understand how does that regulation or how does the management look at that 45:13 45 minutes, 13 seconds regulation uh whether there will benefits in terms of royalty or uh whether there will be benefits in more offtakes happening of the lower grade 45:21 45 minutes, 21 seconds just want you to understand that so the the uh royalties paid on material going out of the mine and the lower 45:28 45 minutes, 28 seconds grade of uh less than 45 or less than 35 would be going out of the mine uh entailing a royalty at the rate of 50% 45:36 45 minutes, 36 seconds or 75% respectively uh so that would reduce our BHQ output cost to the to the BHQ plant. So it helps us in terms of reduction of cost. 45:50 45 minutes, 50 seconds Understood sir. And just one last question uh sir mentioned that 2,000 rupees per ton saving coming from 45:57 45 minutes, 57 seconds largely from transport. Can you have a breakdown of that and you know how much will be coming from which 46:05 46 minutes, 5 seconds I mentioned 2,000 crores over the next uh once the second pipeline is commissioned uh from uh HRI to go via the Chandraur 46:14 46 minutes, 14 seconds stockyard all our 16 million tons of material which is now being transported to the railway sidings or to various 46:21 46 minutes, 21 seconds customers by truck that's 600 rupees a ton 5 rupees a ton will be saved so that itself is 1,000 cr rupes plus whatever 46:28 46 minutes, 28 seconds pipeline we already doing right now plus our solar projects and other green initiatives plus uh you know various initiatives during all the sites. So we 46:37 46 minutes, 37 seconds have calculated total of 2,000 rupees per year going forward from uh 2028 onwards. 46:46 46 minutes, 46 seconds Understood. Thank you so much for this and I'll turn back to you. 46:52 46 minutes, 52 seconds Thank you. The next question is on the line of Retesh Bhagwati from Alpha Plus Capital. Please go ahead. 47:01 47 minutes, 1 second Uh thanks for taking my question. Uh and first of all, congrats on great set of numbers. Uh firstly it's in regards to our DRC assets. Uh so we saw our 47:10 47 minutes, 10 seconds commercial production of 12,000 tons peranom copper cathode plant at Surya Mines got commissioned in March 26. Uh 47:17 47 minutes, 17 seconds so and plus we have done an acquisition of another 49% stake in KF. So what I want to first of all understand is how 47:24 47 minutes, 24 seconds are we seeing this ramp up of 10,000 tons peranom to 30,000 tons peranom happening. So what is the timeline for that? Secondly, what I also want to 47:33 47 minutes, 33 seconds understand is how are we seeing this integration of DRC assets happening and what sort of revenue and EITA contribution can we see in this financial year. 47:47 47 minutes, 47 seconds Yeah, thank you. So u I'll uh explain on both the assets. So the first asset actually was commissioned and started 47:56 47 minutes, 56 seconds producing copper plates uh in March 2026. 48:02 48 minutes, 2 seconds Uh so uh we have produced near about uh 700 to 750 tons of copper as of date. uh 48:12 48 minutes, 12 seconds the plant uh as per budget is able to produce near about 40 to 45 tons per 48:20 48 minutes, 20 seconds day. Uh we are having certain supply shortages on the sulfuric acid because it's an inland country. So because of 48:29 48 minutes, 29 seconds which there is a slightly lower volume than expected. Uh but uh good thing is that with the plant that we acquire the 48:37 48 minutes, 37 seconds other company we have a sulfuric acid plant. So we are now uh continuing to supply sulfuric acid from that. So there 48:44 48 minutes, 44 seconds is synergy between the two companies. Uh so with that I think we are looking at uh producing a total of around 9 to 8 uh 48:53 48 minutes, 53 seconds 9 to 10,000 tons of copper for the financial year ending this year. Uh she 49:01 49 minutes, 1 second will not produce anything this year. uh it is expected to start production uh meaningfully by July of 2027 49:10 49 minutes, 10 seconds uh when the plants are expected to be commissioned. So a big uplift will come uh when those plants are completed and 49:18 49 minutes, 18 seconds they start operating fully. Uh they are fully integrated plants in terms of mine uh next door to the plants. Uh so we'll 49:27 49 minutes, 27 seconds have near about 90,000 tons of uh copper production. uh but starting from July 49:33 49 minutes, 33 seconds 2027 until then we'll have around 800 to 900 tons of copper that we expect uh once we solve the sulfuric acid problems 49:42 49 minutes, 42 seconds which should be uh sorted in the next 3 months. So that's broadly the production profile for the Congo assets. 49:52 49 minutes, 52 seconds Okay. Um so basically I also want to understand our stake uh acquisition that we have done for Lloyd's Panguna uh 50:00 50 minutes which we will engage with uh Bugenville Copper Limited. So if you can just provide some clarity on a strategy road 50:07 50 minutes, 7 seconds map anticipated timeline for securing mining rights. 50:12 50 minutes, 12 seconds No asset has been taken over. It's uh we have created a company for future uh 50:18 50 minutes, 18 seconds actions in that country. Uh it is a very active uh was a very active mine 40 years back with port built roads built 50:27 50 minutes, 27 seconds and the mine commissioned and well established etc with very rich copper and gold uh deposits but there is still 50:36 50 minutes, 36 seconds in the discussion stage the we have got the rights uh only and nothing has been acquired and we don't need like you say setting our foot into the area. 50:48 50 minutes, 48 seconds Okay. So just lastly uh on our pilot plant so like we have recently commissioned our second pilot plant as well. So what I want to understand is uh 50:57 50 minutes, 57 seconds like uh what when do we expect you know both pilot plants together to reach the expanded capacity of 10 million tons peranom from our original 8 million tons 51:05 51 minutes, 5 seconds per it's eight it's 8 million tons 2 into 4 8 million tons. The first plant in the first 9 months of operation has achieved 51:13 51 minutes, 13 seconds 3 million tons which is within the capacity. 51:16 51 minutes, 16 seconds uh we hope to repeat that in the second plant as well and therefore we hope to achieve 75 to 8 million tons in this uh complete year. 51:27 51 minutes, 27 seconds Okay, thanks a lot. Uh that's it from my end. Thank you. 51:33 51 minutes, 33 seconds Thank you. The next question is from the line of Suty Aaral from Chhattisgarh Investment. Please go ahead. 51:44 51 minutes, 44 seconds Hello, am I audible? Yes ma'am. Yes. 51:48 51 minutes, 48 seconds Yeah. Firstly, congratulations to the team for great set of numbers. Uh so my first question is does receivers 51:54 51 minutes, 54 seconds increase from uh from 171 crores to 1,480 crores on a consolidate number 52:01 52 minutes, 1 second that is 3.24 times. So is this from the TVI or uh on standalone like 52:09 52 minutes, 9 seconds Yeah. See last year last year it was uh not a consolidated because TVI is just acquired in this year. So only 9 months 52:17 52 minutes, 17 seconds has been consolidated. So if you're looking at a consolidated numbers then it is you're not it is not comparable if you compare it with the last last time. 52:27 52 minutes, 27 seconds Okay. Okay. Got it. Thank you. A reminder to all participants 52:35 52 minutes, 35 seconds that you may restrict yourself to one question. 52:39 52 minutes, 39 seconds The next question is from the line of Park Kak from Charles 91 Asset Management. Please go ahead. 52:48 52 minutes, 48 seconds Hi, thanks for taking my time. 52:50 52 minutes, 50 seconds Congratulations for a good set of numbers. Um, so actually I have a couple of questions. The first one is an extension to the previous participants 52:58 52 minutes, 58 seconds question. And I understand that now since MDO is integrated uh with our operations. If you could uh you know 53:05 53 minutes, 5 seconds just give a bit of color on our uh receivable days and uh inventory days and payable days for the consolidated 53:13 53 minutes, 13 seconds entity going ahead and second sir if you could just on on an accounting side provide the number for IPS benefit this year it would be really helpful. 53:22 53 minutes, 22 seconds uh on the IPS benefits uh basically it is uh right now around 1 year in approval uh one year uh post the claim 53:32 53 minutes, 32 seconds to be made the claim would be made in June uh for the last year so we would get the monies in June 2027 53:40 53 minutes, 40 seconds or current year we're trying to see how that can be expedited for the consolidated receivables data I think this question is a very interesting 53:49 53 minutes, 49 seconds question we don't have the clearcut answer on why Exactly that moment is there. We'll come back very shortly on that. 53:56 53 minutes, 56 seconds Inven the receivables is 15 to 30 days. 53:58 53 minutes, 58 seconds In the receivables are 15 to 30 days. In metal, private buyers but in coal it is 15 days. Lloyd it is 15 days. 54:08 54 minutes, 8 seconds So we have to and so it is similar in uh uh loyal loyal metal. We'll figure out exactly the reasoning behind it and come back. 54:21 54 minutes, 21 seconds Thank you. The next question is from the line of Amayara Nata Investment Advisor. Please go ahead. 54:36 54 minutes, 36 seconds Could you please go ahead? He's not there. 54:42 54 minutes, 42 seconds Since there's no reply from the line of Mr. Misharda, I will promote the next question which is from H Sha from Seven Rivers Holding. Please go ahead. 54:56 54 minutes, 56 seconds Uh yeah. Hi, good afternoon sir. Uh sir, in your in your slide you have given a guidance of 26 million tons for FY27 55:05 55 minutes, 5 seconds uh production of iron or uh can you give us a split how much of this will be consumed internally for the downstream drugs and what will be sold outside? 55:16 55 minutes, 16 seconds around uh 8 million tons 8.85 million tons 8.8 8 million will be consumed uh internally for the pellet plant and the 55:25 55 minutes, 25 seconds DR plant maybe another 200,000 tons. So around 9 million will be consumed this year internally 55:35 55 minutes, 35 seconds plus DR yeah part of the part of the would also be consumed internally in the steel in the D plant. 55:47 55 minutes, 47 seconds Thank you. The next question is from the line of Sudat Gadka from Equitress Securities Limited. Please go ahead. 55:58 55 minutes, 58 seconds Hi sir. Uh so first on that she acquisition uh can you just speak on the debt that we have acquired with that entity and how should one think about that debt? 56:09 56 minutes, 9 seconds Yeah thank you. Uh I mean yes I think that needs a little bit of clarity because otherwise it may look that we 56:15 56 minutes, 15 seconds have acquired a lot of debt. Uh so we uh have become uh owners of the company. So 56:22 56 minutes, 22 seconds of course uh the company was uh under stress. So there's a lot of debt which has acrewed built up and uh they have 56:30 56 minutes, 30 seconds spent that on the plant. But as a part of the overall negotiation process, we have uh also made settlement agreements 56:40 56 minutes, 40 seconds with the key creditors. Uh so actually the total debt which is there on the books of Shemov is around $800 million. 56:50 56 minutes, 50 seconds Uh uh large creditors uh mostly we have negotiated uh and effectively once we 56:57 56 minutes, 57 seconds pay out those creditors this debt will be reduced by 475 million. So that's the amount of negotiation that has been 57:06 57 minutes, 6 seconds done. uh and the balance of the debt which will be remaining on the books uh which is near about $330 million uh that 57:14 57 minutes, 14 seconds is fully nonreourse uh and it will stay at the company level at Shemah uh also 57:22 57 minutes, 22 seconds we are negotiating on that with some of the smaller parties which are there uh so we'll go through that process and 57:30 57 minutes, 30 seconds possibly we can also receive some benefits from there uh so that's broadly the current debt 57:37 57 minutes, 37 seconds uh for completing the plants possibly we'll borrow additional $200 million which will also be nonreourse to LML and 57:44 57 minutes, 44 seconds borrowed at the asset level because the assets itself is uh near about a billion dollars which is already put on the ground. 57:56 57 minutes, 56 seconds Uh so secondly in terms of the ramp up on shimac how should one think about the ramp up in this? 58:03 58 minutes, 3 seconds Uh so as I answered earlier I mean July 2027 we should see uh uh uh reasonably 58:11 58 minutes, 11 seconds uh full commercial scale production. So we should be producing near about uh 58:17 58 minutes, 17 seconds 8,000 tons of uh uh copper including the surya mine. So only shama itself will it 58:24 58 minutes, 24 seconds will be near about 6,000 to 5,500 tons per month. 58:30 58 minutes, 30 seconds Okay. So and the entire debt will get consolidated into our console balance sheet or how should one think about that? Uh 58:38 58 minutes, 38 seconds yes that's right. So although we own 49% but because we are having the operational control on the ground and we 58:46 58 minutes, 46 seconds are the ones who are running the operations which is typically uh for us as as something which we like and 58:55 58 minutes, 55 seconds control because effectively we need the operational controls to make the assets work. Uh so that's why because of that 59:03 59 minutes, 3 seconds reason even though we are 49% uh we uh have operational control and thus it gets consolidated into our doses. 59:12 59 minutes, 12 seconds Okay good. So largely on the standalone operations on the pellet we had spoken about some debottlenecking that we were doing on the standalone operation. So 59:21 59 minutes, 21 seconds when should we start seeing the benefits of that debuting coming in? 59:25 59 minutes, 25 seconds We are stud uh studying and applying to the government for relevant permissions. 59:30 59 minutes, 30 seconds We should get that by the year end that is 26 27. So next year we will see a increased production in that. 59:38 59 minutes, 38 seconds So that will be for both the pellet plants or only the first pellet plants. Yeah. Yeah. Both the pellet plants. 59:44 59 minutes, 44 seconds So effectively we can go to 10 million t of pellet capacities with these two plants. 59:49 59 minutes, 49 seconds Uh no guidance on that but yes that is the target. Okay. Uh got it sir. Thank you so much. 59:57 59 minutes, 57 seconds Thank you. The next question is from the line of Pandai Khan. Please go ahead. 1:00:07 1 hour, 7 seconds Yeah, good evening sir. Congratulations to you all for remarkable set of numbers and metallic numbers for FI26. 1:00:14 1 hour, 14 seconds So to start with the first question just would like to know as uh have already uh said the estimated phase for the second 1:00:23 1 hour, 23 seconds cost and for the extending course and what would be the timeline for that as uh the slurry pipeline for the project 1:00:30 1 hour, 30 seconds the phase one the cost and already it was got clear in the earlier sessions so can you 1:00:37 1 hour, 37 seconds we not I'm not able to understand the can you be your uh so what would be the phase two cost 1:00:45 1 hour, 45 seconds of and the timeline for the the overall total project for the slurry pipeline capacity of uh utilization and overall 1:00:54 1 hour, 54 seconds volumes. So it will take up and ramping up the phase two study pipeline is for the 16 uh million tons what we are planning 1:01:02 1 hour, 1 minute, 2 seconds uh this is the plans for the entire capex to be completed is within two years uh as we mentioned earlier also. 1:01:11 1 hour, 1 minute, 11 seconds Okay. And my next question it is about the uh what would be the revenue growth in terms of volume of iron ore and value added product for FY27 and FIR 28. 1:01:21 1 hour, 1 minute, 21 seconds [clears throat] 1:01:22 1 hour, 1 minute, 22 seconds What uh then we go increase in volume. This is the maximized volume that we have. Uh FY27 1:01:29 1 hour, 1 minute, 29 seconds we discussed FY20 would be operational uh fully. So we'll be having a 1:01:36 1 hour, 1 minute, 36 seconds production of uh say 1 million tons which is 75 80% of the capacity [clears throat] plus the parent plant 1:01:44 1 hour, 1 minute, 44 seconds would be producing that 8 9 million tons. So that would be the value added product uh range and uh and relevantly 1:01:53 1 hour, 1 minute, 53 seconds DR and P etc would also be produced according to that. 1:01:57 1 hour, 1 minute, 57 seconds Okay. Okay. Thank you. And so one more which is what would be the inter segment revenue in terms of tax in IRO uh that 1:02:05 1 hour, 2 minutes, 5 seconds the that is the using because after the acquisition as you can see that inter segment uh revenues have r ramp up like 1:02:14 1 hour, 2 minutes, 14 seconds it is somewhere around 4,4 this uh year. for FI26. So what would be for three when MBO inter intra group 1:02:22 1 hour, 2 minutes, 22 seconds dealing or something for FI27 if you can put some light because captive transfer of 97 crores which we can see the 1:02:30 1 hour, 2 minutes, 30 seconds reflection in this. I I don't think we are ready with that exact figure that you're looking for. We'll come back uh shortly on that. 1:02:39 1 hour, 2 minutes, 39 seconds Thank you. The next question is from the line of Van Sarda from Nirmal Bank Securities Private Limited. Please go ahead. 1:02:57 1 hour, 2 minutes, 57 seconds Mr. Van, sir, could you please unmute your line and go ahead? No. Yes sir. Yeah. 1:03:05 1 hour, 3 minutes, 5 seconds Uh thank you for the opportunity and congratulations. 1:03:10 1 hour, 3 minutes, 10 seconds So we have gued 26 million t of iron production and double down on a pallet production and ding. 1:03:17 1 hour, 3 minutes, 17 seconds production for FI27. So can you broadly tell us the revenue growth and growth for FI27 on the current realization of RN? 1:03:28 1 hour, 3 minutes, 28 seconds I think the figures are all with you. We leave it to the analyst to analyze and uh confirm the figures. 1:03:39 1 hour, 3 minutes, 39 seconds Thank you. The next question is from the line of Tanmay Chadri from Dalat Capital. Please go ahead. 1:03:47 1 hour, 3 minutes, 47 seconds Yeah. Hi sir, thank you for the opportunity. So my uh first question is on the logistics side like what is our evacuation plan [clears throat] to the 1:03:55 1 hour, 3 minutes, 55 seconds pipeline and the trucks and railway sliding and specifically for feeding our recently commenced fire plant? 1:04:04 1 hour, 4 minutes, 4 seconds Your question is not very clear sir. Can you repeat it? 1:04:08 1 hour, 4 minutes, 8 seconds Yes sir. I'm asking on the evacuation plant through the pipeline and on the transport side like for feeding our 1:04:15 1 hour, 4 minutes, 15 seconds recently commenced pallet plant. So the uh recently commissioned parrot plant is being fed by the uh pipeline which was 1:04:22 1 hour, 4 minutes, 22 seconds commissioned around a year back. Uh that same pipeline is now feeding both the parent plants that are commissioned. Uh this product is being evacuated either 1:04:31 1 hour, 4 minutes, 31 seconds by truck or by uh from a railway siding which is around 80 km 70 km away. 1:04:38 1 hour, 4 minutes, 38 seconds Uh that's as far the evacuation of the current type uh current parrot plant and m into the parrot plant is concerned. 1:04:45 1 hour, 4 minutes, 45 seconds Does that answer the question? 1:04:52 1 hour, 4 minutes, 52 seconds Hello. So the line has dropped. Ladies and gentlemen, we take this as a last question. I now hand the conference over to the management for closing comments. 1:05:06 1 hour, 5 minutes, 6 seconds Thank you everybody. Uh I guess we were able to uh reply to all your uh 1:05:13 1 hour, 5 minutes, 13 seconds questions and queries. Uh once again thanks everybody and if you have any further questions we can you can get get 1:05:20 1 hour, 5 minutes, 20 seconds in touch with Mr. Chint or myself uh so that uh we can we can give you all the further replies. So thank you once again for participating and thank you Aquirus team for hosting us. 1:05:31 1 hour, 5 minutes, 31 seconds Thank you sir. 1:05:33 1 hour, 5 minutes, 33 seconds Thank you. On behalf of Equitus Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.