Vedanta Limited — Q4 FY26

Vedanta Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=F4ssea5XD74 Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Vanta Limited fourth quarter and full year 2526 earnings conference 0:08 8 seconds call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:25 25 seconds note that this conference is being recorded. Participants connected on webcast link may change the quality settings to 1080p to watch the 0:33 33 seconds proceedings on best quality. I now hand the conference over to Mr. Chanjit Singh group head investor relations Vanta. 0:41 41 seconds Thank you and over to you. 0:43 43 seconds Thank you Yash. Uh good evening everyone and welcome to Vanta's limited uh Q4 and full year FI26 earning call. On behalf 0:52 52 seconds of team Vanta, I thank you all for joining us today. I hope you had an opportunity to look at the result 0:59 59 seconds releases that we have made. Also, we have uploaded a presentation on our website under the investor presentations 1:07 1 minute, 7 seconds tab outlining the medium-term outlook for the demerged vanta covering all business segments which is 1:14 1 minute, 14 seconds primarily zinc India, zinc international, copper, ferocchrome and nickel. Kindly take a look at it if you 1:23 1 minute, 23 seconds haven't had the times um to already see it. On the call today we have with us 1:29 1 minute, 29 seconds Miss Dhi Naidu our group CEO, Mr. Arun Mishra our executive director, Mr. AJ 1:36 1 minute, 36 seconds Goyel our group CFO, Mr. Anup Agarwal CFO aluminium and Mr. Yasmin Sahorti COO 1:45 1 minute, 45 seconds oil and gas. We will begin the call with a business update from Miss Naidu followed by an update on financial 1:53 1 minute, 53 seconds highlights by Mr. Ajay Goyer and after that we will open the lines for Q&A. 1:59 1 minute, 59 seconds With that I now hand over the call to Miss Naidu. Over to you Dashni. 2:04 2 minutes, 4 seconds Thank you Charjit. Good evening good day everyone and thank you for joining us today. This will be our final results 2:11 2 minutes, 11 seconds call ahead of Derger. Starting next quarter, each of the demerge entities will conduct its own earnings calls as separate companies. 2:21 2 minutes, 21 seconds But before I reflect on the year's performance, I want to take a moment to speak about the tragic incident that unfolded at our Athena power plant in 2:30 2 minutes, 30 seconds Chhattisgarh on the 14th of April. I want to begin by expressing my deepest condolences to the families of those who lost their lives in the tragic incident. 2:41 2 minutes, 41 seconds Across Vidanta, there has been an outpouring of grief and solidarity. I want to acknowledge the efforts by the 2:47 2 minutes, 47 seconds teams on the ground. Our thoughts remain firmly with the families who are grieving and with those who continue to 2:54 2 minutes, 54 seconds receive medical care. The plant is run by our on&m contractor NGS. 3:01 3 minutes, 1 second The incident occurred in unit one of the plant involving the boiler which resulted in the release of pressurized 3:08 3 minutes, 8 seconds hot water and steam exposing various people working in that area. These workers were primarily from our contractor and subcontractor 3:17 3 minutes, 17 seconds organizations who were present in the area carrying out operation and maintenance related work. We continue 3:24 3 minutes, 24 seconds with our efforts to provide the best possible medical care and rehabilitation support to impacted families, including 3:33 3 minutes, 33 seconds monetary compensation, accommodation, and employment opportunities. We are also operating a 24/7 call center to 3:42 3 minutes, 42 seconds address any queries from affected families, extending care and support to all our employees at the site and beyond 3:50 3 minutes, 50 seconds remains our top priority. We are working with all authorities to establish the facts in a transparent and comprehensive 3:58 3 minutes, 58 seconds manner and will take all necessary steps to prevent any reoccurrence of such incidences. 4:07 4 minutes, 7 seconds I also want to take the opportunity to talk to you about the group performance on safety year on year. Our lost time 4:16 4 minutes, 16 seconds injury frequency rate for the year improved 26% to 0.4 four with our last time injuries down 16%. 4:25 4 minutes, 25 seconds Our total recordable injury frequency rate decreased 3% to 1.3 and as part of 4:32 4 minutes, 32 seconds the group safety improvement plans we continue to embed and implement our CRM Adashia critical risk management drive 4:41 4 minutes, 41 seconds incident corrective and pre preventative action closeout and increase our leadership in the field. 4:49 4 minutes, 49 seconds Now I want to turn to our FY26 performance. The year represented a clear inflection point for Vidanta as 4:58 4 minutes, 58 seconds strategy and execution converged to deliver the best ever financial performance in the company's history. We 5:05 5 minutes, 5 seconds delivered record high annual revenue of 1.74 lakh crores, ebida of 56,000 5:13 5 minutes, 13 seconds cr pat of over 9,300 cr and our free cash flow pre-tax of 26,013 5:23 5 minutes, 23 seconds rupees cr. Our return on capital employed gross for the year of 32%. 5:29 5 minutes, 29 seconds All of this on the back of volume growth across various businesses and reduced cost driven through structural 5:36 5 minutes, 36 seconds initiatives. Our efforts on operational excellence transformed FY26 into a year of new milestones where our 5:45 5 minutes, 45 seconds aluminium business delivered its record aluminum production of 2.9 million tons, up 48% yearonear and highest ever 5:54 5 minutes, 54 seconds aluminium production of 2.46 million tons. while also achieving its lowest 6:01 6 minutes, 1 second annual hot metal cost in the last 5 years of $1,752 per ton. Our exit run rate of aluminina 6:10 6 minutes, 10 seconds production at Laniga refinery was close to 4 million tons perom. Zinc India recorded its highest ever annual mineral 6:18 6 minutes, 18 seconds production of 1.1 million tons with silver production of 622 metric tons 6:25 6 minutes, 25 seconds while simultaneously achieving the lowest cost of $959 per ton in the last 6:31 6 minutes, 31 seconds 5 years. At Zinc International, mined metal production increased 27% yearonear to 225,000 6:40 6 minutes, 40 seconds tons, led by the Hamsburg volumes rising 39% year on year, driven by higher throughput, stable or delivery, and 6:48 6 minutes, 48 seconds improved feed grades. Power sales grew 30% yearonear to 16.4 4 billion units 6:56 6 minutes, 56 seconds with the start of operations at Athena and Minakshi alongside a 31% increase in our average NSR. 7:06 7 minutes, 6 seconds The steel unit in Bkaro delivered 1.3 million tons of production, achieving its highest ever annual billet TMT wire 7:13 7 minutes, 13 seconds rod output of a million62,000 tons, 525,000 tons, and 444,000 tons, respectively. 7:22 7 minutes, 22 seconds Through improvements in fuel mix and better raw material utilization, the business achieved an overall cost reduction of 10%. Our pig iron unit in 7:32 7 minutes, 32 seconds Goa achieved its highest ever pig iron production of 8 95,000 tons representing a 10% increase year on year. Our ino 7:41 7 minutes, 41 seconds production grew 5% yearonear to 6.2 million tons while ino Goa achieved a 7:47 7 minutes, 47 seconds 62% yearon-year growth supported by production ramp up initiatives and delivering an 18% reduction in operating 7:55 7 minutes, 55 seconds cost. Our ferocchrome business achieved delivered a strong turnaround with record ferocchrome production of 101,000 8:04 8 minutes, 4 seconds tons up 21% year on year. The restart of the Kendriita mine enabled availability of 8:12 8 minutes, 12 seconds highgrade captive war during the year thereby materially reducing our cost by 19% compared to FY25. 8:22 8 minutes, 22 seconds At the copper business, operational delivery remained strong with Silvasa and Fujera plants together delivering 8:29 8 minutes, 29 seconds copper rod production of 282,000 tons, 10% yearon-year jump. Silvasa recorded 8:36 8 minutes, 36 seconds record annual cathode production of 170,000 tons up 15% resulting from 8:43 8 minutes, 43 seconds debottlenecking, operational efficiency, diversification of raw material resources. 8:51 8 minutes, 51 seconds I'm now going to turn to capital. 8:54 8 minutes, 54 seconds FY26 recorded not only new milestones on operational metrics but also on capex execution. During the year we deployed 9:02 9 minutes, 2 seconds 15,000 cr of growth capital in line with guidance establishing a new benchmark in vidanta's journey on project execution 9:10 9 minutes, 10 seconds as the year marked successful commissioning of various multi-year projects setting us up on a trajectory of multi-year growth. Some of the key 9:19 9 minutes, 19 seconds growth projects completed are the expansion of aluminina refinery at Langigar of 5 million tons banham 9:26 9 minutes, 26 seconds commissioning of the new 435,000 t smelter at kova with production ramp up starting from the current quarter 9:34 9 minutes, 34 seconds commissioning of the 250,000 tons and 210,000 tons per of new bullet lines at Jugadam and Balco respectively start at 9:43 9 minutes, 43 seconds start of the 160,000 tons Dari roster that's roster six at Hindustan zinc successful debottle necking at Hindustan 9:52 9 minutes, 52 seconds zincs Chandera and Dariba resulting in an incremental capacity of 21,000 tons peranom additionally the 1.3 gawatt at 10:02 10 minutes, 2 seconds Athena and Minakshi other facilities commissioned during the year include the wagon facility at Langiga and the 10:09 10 minutes, 9 seconds crusher at Hamsburg phase two as we move into FY27 the pipeline of projects commissioning remains strong the 10:18 10 minutes, 18 seconds uh coal mine and sigimal box mines are awaiting for their EC which will pave the path for starting operations for 10:26 10 minutes, 26 seconds mines. Humsburg phase 2 is around 94% complete whilst our fertilizer project 10:33 10 minutes, 33 seconds in zinc India has already booked around 75% of total capital at ESL plant capacity doubling to 3 12 million tons 10:42 10 minutes, 42 seconds will take around 6 months once we receive the EC all equipment required for the expansion is already in stores 10:50 10 minutes, 50 seconds and at the project site our DI plant in Goa is over 60% complete as of March 26 10:57 10 minutes, 57 seconds end. This capex is primarily financed through internal approvals. Our free cash flow generation pre-capex of around 11:05 11 minutes, 5 seconds 26,000 cr reflecting this strong operational performance. Vidanta emerged as the second highest wealth creator amongst the nifty 100 companies in FY26. 11:18 11 minutes, 18 seconds Just a quick update on critical mineral licenses. As at FY26 close, we had won 11:24 11 minutes, 24 seconds bids for composite licenses on 10 blocks which include those are for gold as well as manganese whilst the remaining eight 11:33 11 minutes, 33 seconds blocks are for critical minerals. In three of these blocks, the expiration is at an advanced stage and we are expecting to be in the decision-making position in a year from now. 11:44 11 minutes, 44 seconds on ESG. During the year, we continue to make meaningful progress on driving renewable energy consumption across all 11:52 11 minutes, 52 seconds operations, reaching 3.97 billion units in FY26 up 52% yearonear, thereby 12:00 12 minutes resulting in a GHD intensity reduction from 6.02 to 5.43 43 tons of CO2 uh 12:08 12 minutes, 8 seconds equivalent per ton of product with inclusive growth central to Vidanta's purpose. We spent over 420 crores in 12:16 12 minutes, 16 seconds FY26 on various CSR initiatives impacting over 6.9 million people through our various programs in 12:24 12 minutes, 24 seconds education, healthcare, livelihoods, women empowerment and community infrastructure. 12:30 12 minutes, 30 seconds In closing, as we mark our final reporting year ahead of de merger, Vidanta delivered a truly landmark 12:38 12 minutes, 38 seconds performance, best in the company's history. The structural improvements made during the year together with the disciplined capital execution has 12:46 12 minutes, 46 seconds resulted in the record level of cash flow generation, which is well reflected in credit upgrades from various rating 12:54 12 minutes, 54 seconds agencies at the group level. Backed by a tier one asset portfolio, record operational and financial performance in 13:02 13 minutes, 2 seconds FY26, we enter FY27 as a more agile, streamlined, and future ready 13:09 13 minutes, 9 seconds organization. With over five decades of experience in manufacturing and metals, Vidanta is leveraging its deep technical 13:18 13 minutes, 18 seconds expertise to expand into a high high potential minerals of future and transition itself for the future. 13:27 13 minutes, 27 seconds Vidanta 2.0 is a strategic transformation designed to align the company's core strengths with India's evolving priorities in energy 13:36 13 minutes, 36 seconds transition, advancing manufacturing and clean technologies. As part of this transformation, we are positioning 13:42 13 minutes, 42 seconds ourselves to meet India's rising need for critical minerals powering the growth of AI data infrastructure and 13:50 13 minutes, 50 seconds advanced technologies. The de merger is now at its final stage. The effective and record date is set for May 1st. In 13:58 13 minutes, 58 seconds the next week, we will be filing with the exchanges for listing approvals. The shares of the resulting companies are expected to list and commence trading by 14:07 14 minutes, 7 seconds mid June. This marks a new chapter defined by simpler structures, sharper accountability, and focused platforms to 14:16 14 minutes, 16 seconds drive growth and value creation. This foundational reset is aimed at sustainable growth over the coming 14:25 14 minutes, 25 seconds decades. With that, I now hand over to AJ to walk us through the financial performance for the year. AJ, 14:36 14 minutes, 36 seconds thank you. Uh, good evening everyone. We ended the fiscal year FI26 on a high note with Q4 marking a pivotal moment 14:43 14 minutes, 43 seconds for VDanta. We delivered record financials, our strongest ever both for the quarter and for the full year. This 14:51 14 minutes, 51 seconds also sets the stage for our next growth chapter through Vanta's de merger. On macro side, despite Middle East 14:59 14 minutes, 59 seconds volatility, better pricing, currency depreciation and supply dynamics play to our advantage. We moved quickly to 15:08 15 minutes, 8 seconds protect supply chains, control cost and reinforce our balance sheet. All that while staying focused on growth. 15:17 15 minutes, 17 seconds Starting with de merger. As earlier communicated last week, our board approved vanta's de merger effective 15:24 15 minutes, 24 seconds from 1st May 2026. This will entail creation of five independent sector 15:31 15 minutes, 31 seconds specific pure play companies allowing each company to chart out their own growth trajectory and attract respective 15:39 15 minutes, 39 seconds thematic investors. We have set 1st May as a record date for de merger. 15:45 15 minutes, 45 seconds Shareholders holding one share of vanta as on 29th April today will receive four additional shares of the resulting 15:53 15 minutes, 53 seconds companies. We are targeting listing and commencement of trading of these shares by Q1 FI27. 16:02 16 minutes, 2 seconds The de merger has been architected with precision on capital structure aligning debt with earning strength and growth 16:10 16 minutes, 10 seconds stage of each resulting companies. Vanta oil and gas and iron steel will be close 16:17 16 minutes, 17 seconds to zero net debt businesses. Other three businesses net debt to aida ratios will be in line with their debt serving capabilities. 16:27 16 minutes, 27 seconds At Vdanta group level de merger our leverage stands at 0.95x 16:35 16 minutes, 35 seconds reflecting resilient aida and disciplined financial structuring for the Q4 and FY26 results following 16:44 16 minutes, 44 seconds NCT approves. We have followed the demagar accounting as per Indian accounting regulations in AS 105 for clarity and like-tolike comparison. 16:56 16 minutes, 56 seconds Our results discussions are for the combined operations which is prede merger and includes all five businesses. 17:05 17 minutes, 5 seconds Moving very briefly to performance, we recorded all-time highs in all three metrices. they being revenue, AIDA and 17:14 17 minutes, 14 seconds PAT both for Q4 as well as for the full fiscal our quarterly revenue grew 29% 17:22 17 minutes, 22 seconds YUI to 51,524 crores supported by positive prices exchange rate and sustained growth 17:31 17 minutes, 31 seconds across our core businesses. Our quarterly Aida grew 59% YUI to 18,447 17:40 17 minutes, 40 seconds crores with AIDA margin expanding sharply up by 915 bits YUI 244% 17:49 17 minutes, 49 seconds again our best ever and finally the PAT grew by 89% YUI to 9,352 17:57 17 minutes, 57 seconds odd crores for the full year we delivered as earlier guided our Best annual results 18:04 18 minutes, 4 seconds ever. Revenue growing 15% YI to 1.74 18:10 18 minutes, 10 seconds lakh crores. Aida up 29% to 55,976 18:16 18 minutes, 16 seconds crores. And finally PAT at 25,096 crores marking a jump of 22% YI. 18:25 18 minutes, 25 seconds Let us take a brief look on Vanta as a portfolio and key businesses continue to deliver strong annual performance. 18:34 18 minutes, 34 seconds Aluminium Aida for the year 25,502 crores up 43% YI with 38% margin driven 18:43 18 minutes, 43 seconds again by positive prices record production and lower COP achieving a 5-year low of $1752 18:53 18 minutes, 53 seconds per turn down 5% Y zinc India Aida 22,056 19:01 19 minutes, 1 second crores up 27% % YUI with best-in-class margin of 56% driven by record mind 19:10 19 minutes, 10 seconds metal positive pricing and coop dropping to $959 per turn again lowest since 5 years down 19:20 19 minutes, 20 seconds 9% y the strength of our diversified business portfolio coupled with momentum in our growth businesses across power 19:29 19 minutes, 29 seconds oil and gas and iron steel continued to drive Vanta a on a strong upward trajectory. 19:36 19 minutes, 36 seconds These businesses are the growth engines and will decisively shape Vanta's next phase of value creation. 19:44 19 minutes, 44 seconds I'll move on briefly to allocation of capital and investors returns. 19:49 19 minutes, 49 seconds We remained focused on disciplined value accurative growth in FI26. We invested 14,918 19:58 19 minutes, 58 seconds crores on growth capexes in strategic projects across aluminium, zinc, oil and 20:04 20 minutes, 4 seconds gas and power. As these projects come on stream, they will drive higher volumes, 20:11 20 minutes, 11 seconds margins and earning visibility across cycles. 20:15 20 minutes, 15 seconds In Q4 FI26, we deleveraged Vanta India's balance sheet by 7,370 20:22 20 minutes, 22 seconds crores. For the full year at VRL group level in dollar terms, we have deleveraged about $1.5 billion including 20:32 20 minutes, 32 seconds reduction of short-term facilities such as buyers and suppliers credit and export advances. 20:40 20 minutes, 40 seconds We also rewarded our shareholders with a handsome dividend of rupees 34 per share. Vanta has been amongst top three 20:48 20 minutes, 48 seconds wealth creators in Nifty 100 companies delivering a TSR of almost 50% which is 2.1 times over Nifty Metal Index. 21:00 21 minutes Notably the FI's ownership of Vanta has rose from around 11% to 14% last year. A 21:08 21 minutes, 8 seconds clear vote of confidence from investors even in this current tumultuous market conditions. 21:15 21 minutes, 15 seconds Balance sheet. Our balance sheet continues to strengthen in a sustained and visible manner. As we have earlier guided our leverage ratio has been 21:23 21 minutes, 23 seconds brought down to under 1x 0.95 from 1.22 to last year. Same time we 21:31 21 minutes, 31 seconds have brought down vial's borrowing cost below 9% at about 8.9. as we close the fiscal and 16% reduction in financing 21:41 21 minutes, 41 seconds cost which is more than rupees 1,563 odd crores with further reduction in the 21:48 21 minutes, 48 seconds borrowing cost in sight in near future on credit rating both Crystal and Ikra has reaffirmed Vdanta's rating as a 21:57 21 minutes, 57 seconds double A with watch developing in addition fish rating has augmented WR's rating to double B minus underscoring 22:06 22 minutes, 6 seconds confidence in our improved balance sheet, cash flow visibility and strategic direction. 22:12 22 minutes, 12 seconds In conclusion, FI26 marked a clear defining year for Vanta with a strong performance and notable advancements 22:20 22 minutes, 20 seconds across strate focus areas. The upcoming de merger marks Vanta's transition into a future new phase of growth and value 22:28 22 minutes, 28 seconds unlocking into a powerhouse of critical minerals, energy transition and technology. Thank you and over to operator for Q&A. 22:38 22 minutes, 38 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 22:46 22 minutes, 46 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 22:55 22 minutes, 55 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 23:02 23 minutes, 2 seconds We'll take a first question from the line of Indrajit Agarwal from CLSA. Please go ahead. 23:10 23 minutes, 10 seconds Hi, thanks for the opportunity. I have two questions for AJ. Uh first, as we split the group 5 or after the de 23:17 23 minutes, 17 seconds merger, how would the dividend policy look like for each of the entities? 23:23 23 minutes, 23 seconds Can you please self mute? There's a lot of disturbance on your line. Thank you. 23:28 23 minutes, 28 seconds Yeah. Yeah. Uh so after the de merger how would the dividend policies look like for each of the entities? 23:36 23 minutes, 36 seconds So that is a hello Indit that is a one change you know that will entail post de merger in that case a five companies board ran independently will be will be 23:45 23 minutes, 45 seconds free to design their own policies uh in case of vanta limited today the board has approved its revised policy on 23:52 23 minutes, 52 seconds dividend basically there will be two changes currently vanta's policy on dividend is more prescriptive it will 24:00 24 minutes become more descriptive uh from rule based it becomes principle based for example Example right now there is a 24:08 24 minutes, 8 seconds there is a requirement to pay at least 30% profit as a dividend going forward board will have the flexibility they can 24:15 24 minutes, 15 seconds pay 30% or the amount as they deem fit in future same way the zinc dividend we have to pass on within 6 months going 24:24 24 minutes, 24 seconds forward vanta board as in the new vanta vanta continuing will have the flexibility of this money upstreaming in 24:31 24 minutes, 31 seconds near future. So in summary, five companies will have a different policies but overall they'll be aligned with the current policy thematically overall. 24:44 24 minutes, 44 seconds So the mandate of upstreaming the dividend of Hindustan goes away with the new policy. Is that correct? 24:51 24 minutes, 51 seconds Correct. And in that case the Vanta limited board will have the flexibility for passing it on or not passing it on within the time frame they deem fit 24:58 24 minutes, 58 seconds looking at multiple factors for the company. Sure. 25:04 25 minutes, 4 seconds My second question related to it is uh now that we still have about $4.7 billion of debt at VRL uh what are the 25:12 25 minutes, 12 seconds modes of addressing that debt? Earlier it used to be brand dividend. Uh is selling stake in one or more entities an 25:20 25 minutes, 20 seconds option that we are considering or still remains at dividend and brand. 25:25 25 minutes, 25 seconds Right. So maybe I'll start with the first Indrajit the current year requirement FI27. So at VDanta resources 25:32 25 minutes, 32 seconds the need for the loan in FI27 is almost.3 billion. Additionally as we know an ICL is due as well which is a VR 25:41 25 minutes, 41 seconds to VL. So total combined half a billion is a requirement for the principal amount. The interest will be something similar. It is in fact shy of half a 25:50 25 minutes, 50 seconds billion. So we need a billion at vdanta resources. In terms of source of money the brand fee is more or less same. So 25:57 25 minutes, 57 seconds it is 400 and the balance 600 receipt means paying out almost 1 to $1.1 billion from Vanta India's side assuming 26:06 26 minutes, 6 seconds the half money goes to minorities. So so with four to 5% dividend and the routine brand fee VRL can be managed that also 26:14 26 minutes, 14 seconds means almost half a billion or 6 billion will be deleveraging organically. 26:20 26 minutes, 20 seconds Now as we demerge all the five companies additionally we will have the optionality of a differentiated capital structure and in that case many anchor 26:29 26 minutes, 29 seconds investors domestically and globally are very keen to come in the capital and that will be additional avenue for deleveraging. 26:42 26 minutes, 42 seconds Sure. Thank you. That's all for Thank you. 26:45 26 minutes, 45 seconds We'll take a next question from the line of Amit Loti from Aditya Birla Capital. Please go ahead. 26:53 26 minutes, 53 seconds Thanks for the opportunity. My questions are on zinc international and copper segments. So the first one on zinc international. Where are we on this 27:02 27 minutes, 2 seconds capacity expansion at Hamsburg and by when do we expect to achieve full ramp up and then second on copper? It has not 27:10 27 minutes, 10 seconds been a profitable unit for us so far and given that treatment charges continue to be negative, how are we thinking about the segment from here on? 27:21 27 minutes, 21 seconds Thank you. Um Amit, I'll take the VZI question and um I'll give AJ the 27:28 27 minutes, 28 seconds question on copper. So on visi the current project the humsburg project is 94% complete and this is now the 27:36 27 minutes, 36 seconds doubling of our run of mine from 4 million to 8 million tons and we're looking at a capacity from the current 27:42 27 minutes, 42 seconds around 220 to 240,000 tons another 220 so all in all about 450,000 tons the 27:50 27 minutes, 50 seconds team is anticipating to commission in the next quarter and to have the plant ramped up for the rest of the year okay 27:57 27 minutes, 57 seconds which is very typical if I look at you know other industry curves uh mcnalty curves uh a ramp up for a plant of this 28:04 28 minutes, 4 seconds size should be anywhere between 12 to 18 months 15 months would be a best-in-class uh ramp up so that's how 28:11 28 minutes, 11 seconds we should look at it within the year you'll see substantial ramp up from phase 2 because it's 94% complete but the better part of this year will be to 28:20 28 minutes, 20 seconds uh ramp up phase 2 after the commissioning in this current uh quarter I hope that explains it so a maybe you want to take the copper question in 28:29 28 minutes, 29 seconds terms of profitability before before AJ starts uh Amit you would have seen that we have released a 28:37 28 minutes, 37 seconds presentation uh which is on the uh Vanta's website and if you download that you can see the 28:45 28 minutes, 45 seconds trajectory for Hamsburg phase 3 uh including our proposal to build a smelter also so we have given the full 28:54 28 minutes, 54 seconds details in terms of the ramp up beyond 500 also uh which is a medium-term outlook 29:01 29 minutes, 1 second spanning next 2 three years is uh is full completely detailed out so handing over to you AJ for the uh copper 29:10 29 minutes, 10 seconds copper I mean this this copper within the vdanta portfolio as we know is a trading business practically and over the last couple of years the margin has 29:18 29 minutes, 18 seconds been a wafer thing there's a one change if I may start with the brand fee right now the entire brand fee is for the 29:25 29 minutes, 25 seconds current vanta at about 3% Now as we demerge we have also done a revised benchmarking in an unbundled 29:34 29 minutes, 34 seconds fashion. So each of the new companies benchmarking is different. In summary the 3% rate continues and the only 29:41 29 minutes, 41 seconds change that will be that will be done post merger. Then the copper brand fee. 29:45 29 minutes, 45 seconds So the brand fee for copper from the current 3% will go down to 0.75%. 29:51 29 minutes, 51 seconds And that alone from India's viewpoint means higher aida by 2.25%. 29:57 29 minutes, 57 seconds uh there are various activities looking at the pricing environment. We do foresee the margin on the copper business going from roughly 1% right now going to at least 5% in FI27. 30:13 30 minutes, 13 seconds AIT does that helps. Thank you so much. Thank you. Yes. Thank you. 30:19 30 minutes, 19 seconds Next question is from the line of Sumangal Natia from Kotak Securities. Please go ahead. 30:28 30 minutes, 28 seconds Yeah, good evening. Thanks. Uh so first question is on uh VRL in FI26. So despite the brand fee and the dividend 30:35 30 minutes, 35 seconds if you see net debt has just reduced by 200 odd million dollars. So could you broadly share what was the cash outflow 30:43 30 minutes, 43 seconds heads there for FI26 in in FI26? Of course you're right dividend and the brand fee is almost 1.1 30:52 30 minutes, 52 seconds billion. uh there is a funding for KCM last fiscal sumul it's almost 330 million and hence that is one reason and 31:00 31 minutes secondly the entire the intercate loan 21 221 million hasn't paid from VR to VL 31:07 31 minutes, 7 seconds and in that case 5.3 has become 5.2 to in the last fiscal. So it's mostly the funding for the KCM. 31:16 31 minutes, 16 seconds Okay. And and we had plans for listing of KCM. Where are we in terms of that? Any guidance? 31:23 31 minutes, 23 seconds You want to take? 31:25 31 minutes, 25 seconds Yeah. So we are in a process of having um filed our S1 with the SEC. Uh we're currently in the third round of 31:33 31 minutes, 33 seconds comments, but I'm sure you would all appreciate that we are in a quiet period in that regard. And as soon as we're able to come into the public, we'll 31:42 31 minutes, 42 seconds we'll actually give you an update on the overall process. But we are progressing on in terms of the S1 piling. 31:51 31 minutes, 51 seconds Uh got it. Uh my second question is on the brand fee. So if you could just call out uh what was the brand fee paid by 31:58 31 minutes, 58 seconds copper entity in FY26? So I mean what's the delta we're looking at? And now when we once we've relooked uh uh till what 32:08 32 minutes, 8 seconds year is the brand fee at 3% fixed for other entities? 32:15 32 minutes, 15 seconds Uh maybe Sumangal after the call we'll have the numbers shared with you but on a broad basis about 3.1 3.2 billion is a 32:23 32 minutes, 23 seconds copper revenue and on that last year the number has been a 3% brand fee now that number will go down to 0.75%. 32:33 32 minutes, 33 seconds So the impact of the brand fee on copper is about 65 million in FI26 FI27 lower 32:41 32 minutes, 41 seconds amount. Now the overall brand fee looking at the volume increase and the better pricing will be something similar. So from Vanta India's viewpoint 32:49 32 minutes, 49 seconds all the five companies combined brand fee FI27 remains similar to last year. 32:55 32 minutes, 55 seconds So the copper impact is mitigated by volume and the pricing. 33:02 33 minutes, 2 seconds Okay, that's useful. AJ, uh, till which year is the rate uh, uh, freezed? Uh, as for the agreement, 33:10 33 minutes, 10 seconds it is the rates are typically if you look at last nine odd years in 2017 the brand fee got commissioned. So we look at revised benchmarking every 3 years. 33:21 33 minutes, 21 seconds So it is for next three years. 33:26 33 minutes, 26 seconds Okay. So till FI 29 it is uh uh free seized. That's correct. 33:33 33 minutes, 33 seconds Okay. Understood. Understood. Uh I have one question uh with respect to zinc international. Now we are guiding for AITA increasing from 100 million to 33:42 33 minutes, 42 seconds eventually $450 million in FI28 in the presentation. I mean in the last many years we've missed and delayed the 33:49 33 minutes, 49 seconds guidance for Amsburg phase 2. So just want to understand last one or two years what has been the key reasons uh uh behind the delay and how confident are 33:58 33 minutes, 58 seconds we of commissioning it and then starting to ramp up in the second half of uh uh the current year. Yeah thank you so much for the question. 34:06 34 minutes, 6 seconds Um so Mangal I I answered partly uh I think when Amit asked the question earlier. So today the project is 94% 34:14 34 minutes, 14 seconds complete. Um so we're very confident about the ramp up plan and commissioning in this quarter and ramp up for the rest of the year. In terms of the reasons for 34:23 34 minutes, 23 seconds the delays twofold uh you know firstly to produce 8 million tons of run of mine u given the stripping ratio of 3 to four 34:32 34 minutes, 32 seconds at this moment we've had a lot to do on catching up of the waste stripping at the Ksburg open pit and that took the 34:39 34 minutes, 39 seconds better part of the last two two years to actually catch up. So this was almost 3 years of delayed in uh stripping waste 34:46 34 minutes, 46 seconds stripping that is now adequately caught up in fact very happy to say that even for the current commissioning and ramp up we are sitting with a healthy 34:54 34 minutes, 54 seconds stockpile in front of the plant we've also had some delays on the ground uh believe it or not I mean it's something I think we as an industry keep talking 35:02 35 minutes, 2 seconds around is skills needed for certain types of work especially in projects in South Africa capital has dried up in fact we are one of the few companies 35:10 35 minutes, 10 seconds that are actually building capital projects today despite it being such a large mining geography and we have had certain skill sets that have been short 35:17 35 minutes, 17 seconds and the team has felt it hard even through our business partner onshore or finding so that's created some of the delays on specialized work like piping 35:25 35 minutes, 25 seconds instrumentation etc. uh but again I think a lot of time has gone in the last six months almost resetting the project to make sure that we can deliver it on 35:33 35 minutes, 33 seconds time uh on the new uh timelines and making sure that you know I keep guiding the t the team that whilst we might not have built this project as we should 35:42 35 minutes, 42 seconds it's still very capital comp you know competitive in terms of capital uh intensity and now we have to get this 35:50 35 minutes, 50 seconds plant to a dream start which I indicated earlier should be a 12 to 15 month type of ramp up for a plant of this uh of this size. So I hope that gives you a 35:58 35 minutes, 58 seconds good sense of what has happened why the misses and why we are confident now given the status of both mining as well as the project that that we that we will 36:07 36 minutes, 7 seconds deliver this year's uh ramp up and you saw last year's numbers right from the previous year the humsburg ramp up in itself because of the waste stripping 36:15 36 minutes, 15 seconds that I just mentioned was almost 40% up year on year. 36:22 36 minutes, 22 seconds Yeah. Yeah. That's very elaborate and thanks. I just have one more question. 36:26 36 minutes, 26 seconds Can I ask uh yeah go ahead. 36:32 36 minutes, 32 seconds Okay. Okay. Uh so I just uh one is uh I mean the resultant entity has still a billion dollars of debt. So uh how are 36:41 36 minutes, 41 seconds we going to service the debt? uh will it be largely through the dividends uh uh from Hindustan zinc and maybe uh the 36:49 36 minutes, 49 seconds leftover is passed out as upstreamed as dividends and second uh the aluminium entity is is on the numbers throwing 36:58 36 minutes, 58 seconds very strong cash flows so generally what's our preference there I mean uh in terms of deleveraging and payout so if 37:07 37 minutes, 7 seconds you could just share some thoughts on capital allocation at at the aluminium entity So maybe I'll start first with the five 37:15 37 minutes, 15 seconds companies and in fact if you look at sumal in the IR pack there's a page which covers all the five companies in unbundled form what will be net debt to 37:23 37 minutes, 23 seconds Aida all of them. uh so if you look at overall Vanta right now 5.5 billion net 37:29 37 minutes, 29 seconds debt and debt to AIDA almost 95 now pre-de merger we have made sure that each of the entities in terms of their 37:38 37 minutes, 38 seconds debt and the cash flow they are in harmony so even before de merger on 1st of May Vanta oil and gas will have nil 37:46 37 minutes, 46 seconds debt so it will be debtfree company vanta iron steel will be close to net debt it will have no debt more than 0.2 37:55 37 minutes, 55 seconds billion that leaves aluminium debt of almost 3.5 billion and in aluminium debt to a better ratio almost 1.3 and as you 38:04 38 minutes, 4 seconds rightly pointed out given their cash flows that will not be a challenge that leaves vanta power there most of the 38:13 38 minutes, 13 seconds debt in fact is structured in the long term with the PFC and the RSC's and there the debt maturities are in fact truly long-term 7 to 10 years vanta 38:22 38 minutes, 22 seconds limited debt will be almost a billion and their debt to Abida will be 0.4 times. So a combination of profitability 38:30 38 minutes, 30 seconds at Vdanta limited through fakor through zinc international and the copper debt can be serviced. Additionally zinc India dividend remains additional optionality. 38:41 38 minutes, 41 seconds So so in summary we don't foresee a challenge looking at the current pricing environment. our work on volume, cost n 38:49 38 minutes, 49 seconds of serving debt of all the five companies. Thank you. 38:57 38 minutes, 57 seconds Got it. Thank is from the line of Riches Sha from Invest. Please go ahead. 39:07 39 minutes, 7 seconds Yeah. Uh hi sir. Uh congratulations for a good set of numbers and the de merger seating. Uh wonderful job. Uh I have like five bucket of questions. First is 39:16 39 minutes, 16 seconds starting with Saudi Arabia. Uh I see there's a $2 billion of capex indicated over there. Uh I also see there's a 39:23 39 minutes, 23 seconds profile broadly from 90 million FI27 to around 200 million FI29. Uh just wanted to understand how this would be funded 39:30 39 minutes, 30 seconds that's one. uh if you can provide a split year wise that would be great and uh the funding of this capex and basically how should we read we read 39:38 39 minutes, 38 seconds into the economics of uh I I see there is a I see there's a smelter commissioning timelines are not very far 39:46 39 minutes, 46 seconds and there's an exciting prospect of the mine as well uh I think mine related capence has not been mentioned over here so if you could just help us understand 39:54 39 minutes, 54 seconds uh the economics of uh how to fund this $2 billion the timeline and the underlying economics that's the first level of questions 40:03 40 minutes, 3 seconds Maybe you ah sorry maybe I'll quick overview of what we are doing in the kingdom and 40:12 40 minutes, 12 seconds then AJ we can talk high level about the funding as it relates to the vidanta uh remain go forward. So as you rightly 40:21 40 minutes, 21 seconds mentioned uh retromo plant I mean this is this is a $13 million plant um capacity of about uh 40:29 40 minutes, 29 seconds 200,000 tons and this is something that we were contemplating for a while uh good on Punit and the team for actually putting this on I think they started 40:37 40 minutes, 37 seconds last year broke ground in October last year and that plant will be ready in September this year from an economics point of view right it's all about 40:44 40 minutes, 44 seconds supply demand as we just discussed on the copper business side but this plant will have got a margin of 5%. Then you 40:52 40 minutes, 52 seconds touched on the uh the mining um the mining block that we recently um acquired and that's in Jabay. Um those 40:59 40 minutes, 59 seconds it's still very nent stages we still doing the exploration there. uh just given some of the early indications of the grades etc that we see both in 41:07 41 minutes, 7 seconds copper as well as in uh gold relatively attractive grades of about one and a half% I think on the um on the on copper 41:14 41 minutes, 14 seconds side which should be maybe north of maybe 2% which makes it more exciting and gold of about 3 g per ton. So I can 41:22 41 minutes, 22 seconds just update on the on the grades uh the the exploration is being supported by h metals so maybe Arun can also uh help us 41:29 41 minutes, 29 seconds with the update. The copper smelter project is still the project that we indicated almost 18 months ago now in 41:35 41 minutes, 35 seconds terms of theou we have with the uh with the kingdom. We continue to work with them. Uh the package of incentives that 41:44 41 minutes, 44 seconds we wanted to make the project work is still under uh discussions uh in the kingdom. So we haven't actually taken a 41:51 41 minutes, 51 seconds project decision uh as of now. Okay. And given what I've just said on some of the incentivization, of course, the $31 41:57 41 minutes, 57 seconds million is largely funded from cash that the um copper business including forger gold is generating will actually be 42:05 42 minutes, 5 seconds funded at that level. The bigger project will actually be funded by some of the incentives that we likely uh to get from the government as we continue these discussions. 42:15 42 minutes, 15 seconds Anything to add? Yes, briefly retain if you look at uh the kingdom has released document a couple of years ago and they want to diversify beyond uh beyond the 42:24 42 minutes, 24 seconds traditional hydrocarbon oil and gas in that case metals and mining is a big priority. It also entails that the the 42:31 42 minutes, 31 seconds kingdom KSA will also provide land power and multiple subsidies including in terms of funding and lower cost of 42:39 42 minutes, 39 seconds funding. What we have agreed with the local government it is still being frozen. The entire funding will be happening uh in the ratio of 7525 42:49 42 minutes, 49 seconds debt to equity. So 25% will be vanta contribution as equity. 75% will be the funding locally at about 2 2 and a half% 42:58 42 minutes, 58 seconds cost of funding. This 25% funding of of the amount you mentioned will be overall several years and that will be managed through vanta limited free cash flows. 43:14 43 minutes, 14 seconds This this helps. Uh my second question was on Zinc International. Again, a very big capex number of $4 billion. Uh the aid is moving from $300 million 43:22 43 minutes, 22 seconds indicated FI2 to around $500 million. Uh how should we read into the funding of the cape? Uh again, it's not a asset 43:30 43 minutes, 30 seconds which is uh at least I understand or appreciate it well. Uh how should we look at the underlying economics of the mine concentrator and the smelter over 43:37 43 minutes, 37 seconds here? Uh that's that's the second bucket of questions. The third and fourth will be quick. I I I I Yeah. 43:44 43 minutes, 44 seconds Yeah. So the good news about Zing International after this year it'll be a self-generating cash self-generating 43:51 43 minutes, 51 seconds cash unit, right? Um although it does have some debt now the on the current project that is executed. Uh the next 43:59 43 minutes, 59 seconds phase of growth which is not approved right which is basically the we've given you guidelines of how to look at the growth comes from the Hamsburg 44:06 44 minutes, 6 seconds underground. uh Kamzog underground I think we have given you some updates on the RNR right now it's almost and I 44:14 44 minutes, 14 seconds think Arun can elaborate because he knows the asset well it's almost as large from an RNR point of view as Hindustan zinc so almost 16 million tons 44:22 44 minutes, 22 seconds of metal there uh the underground material always had a higher grade than actually the open put today is about 7% and the reason for that and the reason 44:30 44 minutes, 30 seconds why we took the decision to go open put initially all those five six years ago is because it was lower capital intensity to So open but then start 44:39 44 minutes, 39 seconds small increase the mine and then consider the underground uh opportunities. So the capital that you saw will be slightly more because of the 44:46 44 minutes, 46 seconds underground but the opportunity we have if we phase this out well is to actually use the current cash that will be generated by the business to support the 44:54 44 minutes, 54 seconds next phase of as we have the 2 million t we're calling it calls it the 2x project 45:02 45 minutes, 2 seconds we do have a 1 million t goal to take the current will be around 450,000 tons 500 if you consider some of the other 45:09 45 minutes, 9 seconds projects that we are considering as part of the deck that you're looking at in uh Namibia gets us to another 500,000 ton expansion in the uh Hamsburg which we're 45:18 45 minutes, 18 seconds calling phase three because phase one and two is currently in execution. Phase three will be the uh new project. So I think that's how you should look look at 45:26 45 minutes, 26 seconds it. This becomes a very different business, right? You no longer should be looking to fund all of the capital. 45:32 45 minutes, 32 seconds It'll it'll self-generate a lot of this cash going forward, right? these kinds of zinc prices, you know, over $3,000 per ton. I think we we we quite excited 45:41 45 minutes, 41 seconds about what that geography can unlock for us. And as Charanjit mentioned earlier, when you start getting into these kinds of capacities, right, you cannot be 45:49 45 minutes, 49 seconds shipping concentrate of this kind of volume because it's almost double the volume you would need to ship. So, we are looking at putting in a a smelter. 45:57 45 minutes, 57 seconds It's a project I looked at way back then when I was in South Africa for the business. But what makes it more attractive today is South Africa has 46:04 46 minutes, 4 seconds some five gawatts of power that's surplus today versus 5 years ago. And the government is very keen to support 46:11 46 minutes, 11 seconds businesses like us that continue to spend money or spend capital in the country to incentivize us to make a smelter complex work together with an 46:19 46 minutes, 19 seconds ACZ. That's what the team is looking at as part of that conceptual study that you saw in the in the deck. 46:28 46 minutes, 28 seconds That helps. I just said possible to break this $4 billion by years or by the way you explain the capital structure uh 46:36 46 minutes, 36 seconds what will be the self-generated cash flow which would actually fund it. Uh it will just help us uh appreciate the cash flow profile because the capex number is quite huge over here. 46:46 46 minutes, 46 seconds Yeah, happy to give the details post the call year on year capex uh what we are doing 46:53 46 minutes, 53 seconds and also the funding uh and the sources of fund for the capex. 47:01 47 minutes, 1 second Sure. Uh quickly third question uh power assets we had an unfortunate incident. 47:07 47 minutes, 7 seconds uh alternative timelines on the resumption of that particular unit are we looking at three months, six months any particular timelines and fourth is critical minerals you have given a 47:15 47 minutes, 15 seconds beautiful slide there are multiple op assets over there uh how should we understand the option value over here thank you so much 47:22 47 minutes, 22 seconds yeah I think I'll start with the question on power and then hand over to Arun for the critical minerals um so yes 47:31 47 minutes, 31 seconds um we are incredibly saddened by our incident at Athena and I gave you a very elaborate update on everything that we're doing on the ground. Uh really 47:38 47 minutes, 38 seconds want to recognize again the efforts by the teams there. Um in terms of restart, I think we cannot commit to any timeline 47:46 47 minutes, 46 seconds at this stage. What we can tell you is that we've only just recently um a couple of days ago been actually given 47:53 47 minutes, 53 seconds access back into the site to commence our full assessment work to look at you know the activities uh rectification restoring uh activities on the site. 48:03 48 minutes, 3 seconds Once our team is on the ground for another few weeks and we have an expert team that supports uh their recommendations, we will then come back 48:11 48 minutes, 11 seconds into the market in terms of the likely timelines for re for re commencement both on the on the unit one uh which is 48:18 48 minutes, 18 seconds the unit in question as well as on the unit two project that was ongoing as well. 48:25 48 minutes, 25 seconds Um so let me add on the critical mineral out of the seven critical mineral blocks 48:32 48 minutes, 32 seconds with vanta. If you look at the timeline of exploration three blocks we hope to finish exploration by 2028 and normally 48:41 48 minutes, 41 seconds we do uh mine planning uh one year ahead of finishing of exploration somewhere in 2027. That means if we add 36 months of 48:50 48 minutes, 50 seconds putting up projects of mining and smelting, we should look at somewhere around 2030 adding three more metals to 48:57 48 minutes, 57 seconds the bottom line of Vanta ret. 49:06 49 minutes, 6 seconds Thank you. 49:07 49 minutes, 7 seconds Thank you. Next question is from the line of Pala Agarwal from Antic Stock Broking. Please go ahead. 49:16 49 minutes, 16 seconds Yeah, good evening and congratulations on the de merger. Uh so first question was you know in the deleveraging during the quarter so uh is part of the 49:25 49 minutes, 25 seconds Hindustan zinc uh you know stake sale proceeds also included in this deleveraging. 49:30 49 minutes, 30 seconds Uh yes uh yes that's right Kalaf so 7,000 370 cr is deleveraging in the fourth quarter it includes every aspect both 49:38 49 minutes, 38 seconds source and application so be it paying a dividend in the previous quarter or divesting a 1.5% in zinc. Yes. Answer is yes. 49:48 49 minutes, 48 seconds Okay. Okay. So basically I think the cash flow from operations of uh I think 14,000 crores. So is that part that includes this the stake sale as well? No 49:57 49 minutes, 57 seconds that is additional. So 14,000 you're right is is operating cash flows. Uh the working capital is next building block 50:05 50 minutes, 5 seconds where the number of days is a right metric. So from 77 days Q3 it has gone down to almost 70 days. Then we invested 50:14 50 minutes, 14 seconds almost 5.7,000 crores in terms of capex's growth and sustaining. We also paid last quarter a dividend that's an 50:22 50 minutes, 22 seconds outflow and zinc stick sale 3,277 cr is additional. It's about 1.1%. So 50:30 50 minutes, 30 seconds the 14,000 crores do not include zinc stick sale is additional. 50:35 50 minutes, 35 seconds There is there is a page uh Palaf in the IR deck on the entire cash bridge for the fourth quarter which covers all these blocks. 50:46 50 minutes, 46 seconds Sure. Okay. Uh I'll take a look also you know uh I think uh you know you have given a very detailed uh breakup of the 50:53 50 minutes, 53 seconds net debt know pre and post merger. Um so just wanted to check you know when in the entity wise you know netcash uh some 51:01 51 minutes, 1 second of the entities like bloom uh uh bloom found so where exactly you know which entity would the debt you know of that 51:08 51 minutes, 8 seconds go to so palab it's already uh taken into consideration when we have given the net 51:16 51 minutes, 16 seconds debt position of respective entity so it's already factored in 51:24 51 minutes, 24 seconds yeah so a bloom Fountain is a holding company or which you know which particular uh you know company of the demerge entity will this debt go to? 51:34 51 minutes, 34 seconds Bloom fountain is a part of iron steel. 51:37 51 minutes, 37 seconds So if you look at the IR deck there's a slide which is quite elaborate. It covers the current vanta where the net 51:44 51 minutes, 44 seconds debt net of cash is about 5.5 billion and the leverage 0.95. 51:50 51 minutes, 50 seconds If you unbundle the current vanta monolithic into five companies, it talks about each of the five companies and 51:57 51 minutes, 57 seconds their iron steel and oil gas are zero or almost net zero debt companies. Vanta 52:04 52 minutes, 4 seconds power leverage will be 4.7 times. Vanta limited will have a billion dollar debt and significant portion of debt goes to 52:11 52 minutes, 11 seconds Vanta aluminium. So out of 5.5 3.5 goes to Vanta aluminium and looking at the AIDA of that business their leverage is 52:20 52 minutes, 20 seconds still 1.3. So in summary even before de merger all the five companies balance sheet are that way architected where 52:29 52 minutes, 29 seconds their assets and the cash flow will be sufficient to service debt post de merger. 52:36 52 minutes, 36 seconds Sure. Okay. Um yeah. Okay. Uh thank you sis. Lastly on the guidance FI27 guidance. So Tina PLF I think is uh is 52:45 52 minutes, 45 seconds there's nothing over there. So is it because of the accident that's happened? 52:49 52 minutes, 49 seconds Yes. Uh Palav as DNI explained that we are taking a stock of the situation and 52:56 52 minutes, 56 seconds once we do that in in the coming weeks we'll come back to the market to disclose the start or the restart and 53:04 53 minutes, 4 seconds thereafter we will be in position to give the details from a PL perspective. 53:10 53 minutes, 10 seconds Okay. But the existing you know PPA that we've signed is a is there any penalty for not supplying or something? No, 53:17 53 minutes, 17 seconds we have insurance in place to cover us for any uh gaps or losses which are there. 53:26 53 minutes, 26 seconds Sure. Okay. Yeah. Thank you sir. 53:28 53 minutes, 28 seconds But again I think just give us time to assess the full situation and come back to the market with a comprehensive update as opposed to a peace meal update that we can provide you with today. 53:40 53 minutes, 40 seconds Thank you. Sure. 53:42 53 minutes, 42 seconds Next question is from the line of Kunal Kotari from Noama Wealth Management. Please go ahead. 53:52 53 minutes, 52 seconds Kunal, your line is unmuted. Please go ahead with your question. Yes, you can move to the next. 54:02 54 minutes, 2 seconds Hi. Uh, good. Yes, Kunal, please go ahead. Can I go ahead? Yes. 54:07 54 minutes, 7 seconds Yeah. Hi. Uh, Ashi here. uh first of all thank you for the opportunity and many congratulations for the great set of 54:14 54 minutes, 14 seconds numbers and finally de merger happening commendable uh the in this uh I'm trying 54:21 54 minutes, 21 seconds to ask one uh simple question uh that going ahead because now we have de merged into different entities obviously 54:29 54 minutes, 29 seconds every entity has a different scope uh but uh in future if we want to go for any acquisition then that acquisition 54:38 54 minutes, 38 seconds will be related to that particular segment only or you know we can do something which can club another business like for example vidanta 54:45 54 minutes, 45 seconds aluminium. So any further acquisition will be only related to aluminium business only or it can be sometimes no 54:54 54 minutes, 54 seconds other zinc vendor or something else also because we have seen plenty we have seen earlier also that you know other 55:00 55 minutes business clubed into different one. So just to make it sure that any further acquisition only in a different particular commodity 55:11 55 minutes, 11 seconds yeah I think from an overall M&A as we've guided the market u before our chairman is still very involved in all M&A uh across the company going forward 55:20 55 minutes, 20 seconds whilst it'll be very clear what the focus of the of the individual businesses are anything outside of the portfolio uh will still happen at the 55:29 55 minutes, 29 seconds whole core level and whole core will be set to make sure there is some visibility of capital allocation across all five businesses but also with its own M&A 55:38 55 minutes, 38 seconds team to start looking at some of these opportunities if it makes most sense synergies wise to go into one of the five companies it would if not you know 55:47 55 minutes, 47 seconds as you've seen our chairman from his previous track record we will we absolutely have other companies in the businesses too or set up new companies 55:54 55 minutes, 54 seconds so that is still very much uh that will still be very much the case the CEOs and their leadership team of the respective 56:01 56 minutes, 1 second companies will be mandated to continue to grow organically. In the first instance, as you know, every business has got their own 2x 3x type growth 56:10 56 minutes, 10 seconds story. And any M&A depending on the size uh shape that's very, you know, uh very in line with the company strategy will 56:18 56 minutes, 18 seconds happen at the company level. Anything else above would happen at a whole core level together with the chairman. 56:27 56 minutes, 27 seconds Thanks. Thanks. That's very clear thing. 56:29 56 minutes, 29 seconds Uh second is on aluminium operations only. Uh please go. Sorry please go ahead. 56:37 56 minutes, 37 seconds No because because we initially had the call from canal and then you came on. So just tell us where you are from please. 56:45 56 minutes, 45 seconds Yeah I'm from Noama only. 56:48 56 minutes, 48 seconds Ah okay all good. So uh uh so uh on aluminium operations u know we 56:56 56 minutes, 56 seconds have seen consistent delay in uh mines like boxite coal mines and you know every time we get a new deadline on 57:03 57 minutes, 3 seconds that. So uh just wondering where we are on that process in terms of approval and secondly uh in terms of aluminium 57:11 57 minutes, 11 seconds smelter also when we are going to fully commission it and lastly uh uh when can we start seeing lower aluminina cost of 57:19 57 minutes, 19 seconds production which will ultimately lead to lower aluminium production. Thank you. Yes. 57:26 57 minutes, 26 seconds Thank you. I'm going to hand over to Anup. 57:29 57 minutes, 29 seconds So As so first let me answer the Albuna piece what you said. So AIS if you recall now even in the last earnings 57:38 57 minutes, 38 seconds call I had said that probably we will see a $50 reduction as we go into the quarter one. Okay but the another thing what I had mentioned was a constant LME. 57:48 57 minutes, 48 seconds So if you if so if you ask me probably by quarter two we should see Alvuna cost hovering around $750. It has two parts 57:55 57 minutes, 55 seconds to it. One, we should also appreciate the Middle East impact that we've had on some of the raw metals like furnace and costic. Had it not been there, probably 58:04 58 minutes, 4 seconds we would have seen a cost of around 710 715. As of now, based on whatever cost we are seeing, we expect the cost to be 58:12 58 minutes, 12 seconds around broadly 74750 in the quarter 2 of financial year 27. Probably a $25 20 $25 58:22 58 minutes, 22 seconds reduction from what was the is the quarter 4 cost. That is where we are uh as of now and if we were to remove the 58:29 58 minutes, 29 seconds middle cost implication probably 700 710 with probably 80 85% of the captive 58:38 58 minutes, 38 seconds aluna. So as that is where we are. So so as we go into quarter 2 quarter 3 we expect the cost to be closer to 710 720 725. 58:49 58 minutes, 49 seconds So as hopefully I have answered that question. 58:52 58 minutes, 52 seconds Yeah. So now now yeah for aluminium cost of production then see aluminium cost of production no 58:59 58 minutes, 59 seconds again if you have seen the guidance we're guiding 1650700 okay now if I were to talk just 59:07 59 minutes, 7 seconds bifurcate it into say H1 what the H1 cost will be maybe compared to quarter 4 you can expect flattish to 1% lower 59:16 59 minutes, 16 seconds lower because of the some of the impact of the raw metal that we are seeing I mentioned some of the raw metal on the 59:23 59 minutes, 23 seconds aluminium side some of the carbon cost so for that the the yearly guidance remains 1650700 59:32 59 minutes, 32 seconds but H1 should be probably flat to 1% lower compared to quarter 4 59:40 59 minutes, 40 seconds now coming to Balco expansion see of the total 304 that we are putting in okay we 59:48 59 minutes, 48 seconds commissioned by March okay the delay was basically ly through partner substitution and resource augmentation 59:55 59 minutes, 55 seconds we've covered in the last couple of calls. Now if I were to give you a way forward as we go along no quarter 1 quarter 2 quarter 3 quarter 4 on a run 1:00:03 1 hour, 3 seconds rate basis broadly we will be doing around 105 KT a quarter so quarter 1 should be 25 quarter 2 ramp up to 50 1:00:12 1 hour, 12 seconds quarter 3 75 and as we go into the quarter four it will be 100%. Asis I think Anoo if I'm not mistakenish 1:00:21 1 hour, 21 seconds asked about the refinery I think linked to aluminina question so Laniga refinery 1:00:27 1 hour, 27 seconds for the year so so so uh as if you were asking about 1:00:33 1 hour, 33 seconds the refinery see as we exited this FI26 no we exited at a run rate of closer to 4 million turn now if you look at our 1:00:42 1 hour, 42 seconds guidance we talking about 4 4.1 now quarter four broadly January February we should be closer to the rated capacity 1:00:51 1 hour, 51 seconds that we put in now why why the delay because the calciners and the boilers that we have put in they are slightly 1:00:58 1 hour, 58 seconds running at a lower capacity of say 75 80% and as we ramp up so we will probably achieve the rated capacity in 1:01:06 1 hour, 1 minute, 6 seconds quarter one there we will achieve the rated capacity 1:01:14 1 hour, 1 minute, 14 seconds yeah see on the Oh my no see I'll first start with Kuroi. So Kurloi we have got the mining lease maybe a week back now 1:01:23 1 hour, 1 minute, 23 seconds from here probably in a month or so we should start seeing the mining operation. So that is on the Kuroy 1:01:31 1 hour, 1 minute, 31 seconds coming to Goarali EC has been recommended at the start of this month the month of April. We are also 1:01:37 1 hour, 1 minute, 37 seconds targeting FC in this quarter and we remain committed to commission this uh block in the timelines that we have 1:01:45 1 hour, 1 minute, 45 seconds indicated last two quarters last quarter this quarter we've been consistent in terms of the timeline CGA also as guided 1:01:52 1 hour, 1 minute, 52 seconds last time okay we are we have got the LOI extension done FC1 is granted EC 1:01:59 1 hour, 1 minute, 59 seconds we're expecting next month and hopefully in H1 we will see the mines opening 1:02:07 1 hour, 2 minutes, 7 seconds So sir in CG Mali obviously we were expecting earlier in February also now we are expecting in May. So what is the actual delay which we are facing mean 1:02:16 1 hour, 2 minutes, 16 seconds why government is not giving it because we have seen lots of news in the newspaper something in the local level also is disturbing. So is this the 1:02:24 1 hour, 2 minutes, 24 seconds reason because of which we are getting this delay in Sigimal mine. 1:02:29 1 hour, 2 minutes, 29 seconds So I'll tell you as let me address it in two part. First coming to the regulatory approvals. No, see there is some there 1:02:35 1 hour, 2 minutes, 35 seconds was a LOI which was which got expired in the month of March. It was administrative process. Okay. It took 1:02:42 1 hour, 2 minutes, 42 seconds some time before that LOI has been extended. It is just we've just got the letter yesterday. So some time has gone into it. Now coming to the noise that we 1:02:51 1 hour, 2 minutes, 51 seconds talking about now. So so see I'll tell you we continue to engage closely with the state government, local administration and surrounding 1:02:59 1 hour, 2 minutes, 59 seconds communities. Okay. to ensure that we have a smooth and responsible operation. 1:03:04 1 hour, 3 minutes, 4 seconds This engagement is driven through focused community development initiatives across healthcare, education, infrastructure, culture preservation and livelihood generation. 1:03:13 1 hour, 3 minutes, 13 seconds And I just keep in mind this is auctioned mine. 1:03:16 1 hour, 3 minutes, 16 seconds Okay. So maybe approvals have taken a little longer time but but we are in touch with the administration with the 1:03:24 1 hour, 3 minutes, 24 seconds community and we expect to open this mine within the timeline that we have committed. 1:03:29 1 hour, 3 minutes, 29 seconds Ash important point to note is when this when this auction happened there was few more mines which were issued to other 1:03:38 1 hour, 3 minutes, 38 seconds players also and we are the first one proceeding ahead with who have reached the EC stage and which is almost at 1:03:45 1 hour, 3 minutes, 45 seconds final stages so the process has its own time particularly uh given the it's a long 1:03:53 1 hour, 3 minutes, 53 seconds process of public hearings FC1 FC2 and if the land If there is a forest land 1:04:00 1 hour, 4 minutes involved which is of the size of few hundred he actors as is the case with CG Mali it is likely to take some time so 1:04:09 1 hour, 4 minutes, 9 seconds it is the process which is happening we don't see any challenge in terms of uh the noise is there of course uh but but 1:04:19 1 hour, 4 minutes, 19 seconds I think it's all uh which is very common with all the infrastructure projects in the country so nothing very different uh in terms of the Nice. 1:04:31 1 hour, 4 minutes, 31 seconds Understood. No issues because you know these things are obviously there when we we already know about these things but you know the timeline keeps on changing 1:04:38 1 hour, 4 minutes, 38 seconds you know almost a delay of a year but u as you rightly pointed out regulatory approvals are one thing one can't handle. Anyway uh best of luck and uh 1:04:47 1 hour, 4 minutes, 47 seconds best wishes for the future for all the companies. Thank you. 1:04:51 1 hour, 4 minutes, 51 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand the conference over to Mr. Chanjit Singh for closing comments. 1:04:59 1 hour, 4 minutes, 59 seconds Over to you sir. 1:05:01 1 hour, 5 minutes, 1 second Thanks everyone uh for joining us. Uh for any unanswered questions you can get in touch with us and we look forward to 1:05:09 1 hour, 5 minutes, 9 seconds connecting again for the Q1 results which will be more for the demerged entities and uh looking forward to 1:05:17 1 hour, 5 minutes, 17 seconds meetings you in the coming weeks. Uh good day and goodbye. 1:05:21 1 hour, 5 minutes, 21 seconds Thank you members of the management team. On behalf of Vanta Limited, that concludes this conference.