Q1 2027 Indian Metals and Ferro Alloys Ltd Earnings Call

Speaker #1: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Vaibhav Gupta from Adfactors PR. Thank you, and over to you, Mr. Gupta.

Speaker #2: Thank you, Ranjiv. Good evening, everyone, and thank you for joining us on the Indian Metals and Ferro Alloys Limited earnings conference call for the first quarter ended June 30, 2026.

Vaibhav Gupta: Thank you, Ranjit. Good evening, everyone, and thank you for joining us on Indian Metals and Ferro Alloys Limited earnings conference call for Q1 ended 30 June 2026. Today, we have with us Mr. Subhrakant Panda, Managing Director, Mr. Saunak Gupta, Chief Financial Officer, Mr. Bijayananda Mohapatra, Whole Time Director and Chief Operating Officer, Mr. Suresh Chigurupalli, Head of Ferro Alloys and Business Unit. We will begin the call with the opening remarks by Mr. MD, Mr. Subhrakant Panda, who will provide an overview of the company's business performance, key operational developments, and the outlook of the business. This will be followed by the question and answer session. Before we begin, I would like to remind everyone that certain statements made or discussed on today's call may be forward-looking in nature and should be viewed in the context of the risks and the uncertainties that the company faces.

Speaker #2: Today we have with us Mr. Subrakant Panda, Managing Director; Mr. Sona Gupta, Chief Financial Officer; Mr. Vijayananda Mohapatra, Full-Time Director and Chief Operating Officer; and Mr. Suresh Babu, Cedar Valley Head of Ferro Alloy and Business Unit. We will begin the call with opening remarks by our Managing Director, Mr. Subrakant Panda, who will provide an overview of the company's business performance.

Speaker #2: He opens with developments and the outlook of the business. This will be followed by the question-and-answer session. Before we begin, I would like to remind everyone that certain statements made or discussed on today's call may be forward-looking in nature.

Speaker #2: And should be viewed in conjunction with the risks and uncertainties that the company faces. A detailed explanation of these risks is included in the earnings presentation that has already been shared on the stock exchanges.

Vaibhav Gupta: A detailed explanation of these risks is included in the earning presentation that has already been shared on the stock exchanges. The company does not undertake any obligation to publicly update this forward-looking statement. With that, I would now like to hand over the call to Mr. Subhrakant Panda. Over to you, sir.

Speaker #2: The company does not undertake any obligation to publicly update these forward-looking statements. With that, I would now like to hand over the call to Mr. Subrakant Panda.

Speaker #2: Over to you, sir.

Speaker #3: Thank you, Vebhav. At the outset, let me welcome all of you who have taken time out from your busy schedules to attend this investor concall to discuss Infra's Q1 FY27 results.

Subhrakant Panda: Thank you, Vaibhav. At the outset, let me welcome all of you who have taken time out from your busy schedules to attend this investor con call to discuss IMFA's Q1 FY27 results. As I'm sure you will agree, this is a real breakthrough quarter where in terms of both revenues as well as profitability, it's the highest ever. That's a reflection of not just firm prices, but also tonnage from our KNR2 acquisition coming into play. I will not get into the details of output and all of that because that's shared as part of the presentation which we have uploaded to the stock exchanges. Suffice it to say that as against average output of about 65,000 tons in a quarter, in Q1 we have touched 80,000 tons.

Speaker #3: As I'm sure you will agree, this is a real breakthrough quarter, where in terms of both revenues as well as profitability, it's the highest ever.

Speaker #3: And that's a reflection of not just firm prices, but also tonnage from our KNR2 acquisition coming into play. I will not get into the details of output and all of that because that's shared as part of the presentation, which we have uploaded to the stock exchanges.

Speaker #3: But suffice it to say that, as against an average output of about 65,000 tons in a quarter, in Q1 we have touched 80,000 tons. As you know, going ahead we are also looking to commission the KNR1 greenfield project, where for the first furnace we have already initiated the process of heating the refractory lining.

Subhrakant Panda: As you know that going ahead, we are also looking to commission the KNR1 greenfield project, where the first furnace we have already initiated the process of heating the refractory lining. We expect first tapping around the third week of this month. What we are looking at from the core business, which is ferroalloys, is that there is substantially more tonnage waiting to come online. That'll help us going ahead deliver a record performance. Just to put that in perspective, that as I mentioned in Q1 FY27, we are looking at about 80,000 tons. When all furnaces are up and running, which we expect in Q4 when everything is stabilized, that we will be looking at about 120,000 odd tons. There is a full 50% increase in tonnage which is coming.

Speaker #3: And so we expect first tapping around the third week of this month. What we are looking at from the core business, which is ferro alloys, is that there is substantially more tonnage waiting to come online, so that will help us, going ahead, deliver record performance.

Speaker #3: So, just to put that in perspective, as I mentioned, in Q1 FY27 we are looking at about 80,000 tons. But when all furnaces are up and running—which we expect by, I mean, in the fourth quarter when everything is stabilized—we will be looking at about 120,000 odd tons.

Speaker #3: So there is a full 50% increase in tonnage, which is coming. One point here I would like to point out that in all our interactions, we had while we never we generally don't give any guidance with regard to tonnage, but given that there is so much happening in terms of greenfield, in terms of the acquisition, et cetera, so we had given some indications.

Subhrakant Panda: One point here I would like to point out that in all our interactions we had, while we generally don't give any guidance with regard to tonnage, given that there is so much happening in terms of greenfield, in terms of the acquisition, et cetera, we had given some indications. As far as FY27 is concerned, we had indicated 400,000 tons, we're going to tone it down a little bit because while we were able to switch on all furnaces at KNR2 in the month of March and in fact got a little bit of production. Some of the transformers we feel should not be loaded beyond a certain point. We are taking it a little safe, if I can put it that way. We have already ordered two sets of transformers plus a spare.

Speaker #3: As far as FY27 is concerned, we had indicated 400,000 tons, but we're going to tone it down a little bit because while we were able to switch on all furnaces at KNR2, in the month of March and in fact got a little bit of production, but some of the transformers we are we feel should not be loaded beyond a certain point.

Speaker #3: So we are playing it a little safe, if I can put it that way. We have already ordered two sets of transformers, plus a spare.

Speaker #3: So, sometime in Q2 or Q3, we will be looking to replace the two sets of transformers where we have a little bit of concern.

Subhrakant Panda: Sometimes in Q2 or Q3 we will be looking to replace the two sets of transformers where we have a little bit of concern. Secondly, as far as the gas cleaning plant is concerned, again some work needs to be done on that and therefore we are restricting load a little bit to ensure that we comply with emission norms. When all of that is sorted out, I think we will be able to push the load higher as we had indicated. As I said, just to be transparent and clear, we are toning down the guidance a little bit for FY27. I think there will be a lot of questions. Let's go into the Q&A mode, and I will do my best along with my team to respond to your queries. Thank you.

Speaker #3: And secondly, as far as the gas cleaning plant is concerned, again, some work needs to be done on that, and therefore, we are restricting load a little bit to ensure that we comply with emission norms.

Speaker #3: So, when all of that is sorted out, I think we will be able to push the load higher, as we had indicated. But as I said, just to be transparent and clear, we're toning down the guidance a little bit for FY27.

Speaker #3: So, I think there will be a lot of questions. Let's go into the Q&A mode, and I'll do my best, along with my team, to respond to your queries.

Speaker #3: Thank you.

Operator: Shall we open the line for questions?

Speaker #1: Shall we open the line for questions?

Speaker #3: Yes, please. Go ahead.

Subhrakant Panda: Yes, please. Go ahead.

Speaker #1: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone 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 question. Ladies and gentlemen, we will wait for a moment while the question queue settles. The first question comes from the line of Joe Shah with Seven Seas. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue settles. The first question comes from the line of Joshua Ua with 7C.

Speaker #1: Please go ahead.

Speaker #4: Good day, everyone. Today we are a bit busy day because after AGM, concluding at AGM, we are starting with the concall. Anyway, now Mr. Panda, I understand we expect to sell additional ferrochrome to India and I understand that ferrochrome demand in India is a bit weak.

Joe Shah: Good day, everyone. Today is a bit of a busy day because after concluding the AGM, we are starting with the concall. Anyway, Mr. Panda, I understand we expect to sell a little ferrochrome to India, and I understand that ferrochrome demand in India is a bit weak, mainly because of stainless steel flats are imported from China, and stainless steel producers are happy converting them into finished products. The benefit of ferrochrome, the use of ferrochrome is going to China and not to India. In steel products, there should be restrictions on imports of stainless steel work, especially stainless steel flats. That now they will have to produce stainless steel flats in India using Indian ferrochrome. This is one suggestion. I need your comments, please. Thank you.

Speaker #4: Mainly because stainless steel flakes are imported from China, and stainless steel producers are happy converting them into finished products. The benefit of the use of ferrochrome is going to China and not to India.

Speaker #4: So, like in steel products, there should be restrictions on imports of stainless steel products, especially stainless steel sleeves. So, there is no—there will have to produce stainless steel sleeves in India using Indian ferrochrome.

Speaker #4: So this is one suggestion. I need your comments, please. Thank you.

Speaker #3: I would not like to comment on that because there are multiple issues in terms of demand, supply, and other factors. So, it would not be prudent of me to comment.

Subhrakant Panda: I would not like to comment on that because there are multiple issues in terms of demand, supply, and other issues. It would not be prudent of me to comment. Yes, in general, I have always held a view that whether it comes to stainless steel or any other commodity or any other product, that Indian industry is confident and wants a level playing field. If there is unfair competition, then that is something that should be looked into. I would just like to limit my comments to that much.

Speaker #3: But yes, in general, I have always held the view that, whether it comes to stainless steel or any other commodity or any other product, Indian industry is confident and wants a level playing field.

Speaker #3: So, if there is unfair competition, then that is something that should be looked into. But I would just like to limit my comments to that much.

Speaker #4: Okay. Yeah.

Joe Shah: Okay. Yeah.

Speaker #1: Mr. Shah, are you done with the questions?

Operator: Mr. Shah, are you done with your questions?

Speaker #4: No. Can I ask one more question?

Joe Shah: No. Can I ask you one more question?

Speaker #3: Sure.

Subhrakant Panda: Sure.

Speaker #4: Yeah. Now, ferrochrome production of Samancor and Glencore from South Africa will start, and it is expected that they will produce 4.5 million tons of ferrochrome per year.

Joe Shah: Yeah. Ferrochrome portion of Samancor and Glencore from South Africa will start, and expectation is that they will produce 4.5 million tons of ferrochrome per year. What will be its impact on short-term ferrochrome prices as well as on chrome ore prices? I understand from our MD's comment in the past that in long-term, it will balance out because Chinese ferrochrome production will shift to South Africa. What will be the short-term impact on ferrochrome prices? Thank you.

Speaker #4: So now, what will be its impact on short-term ferrochrome prices, as well as on chrome ore prices? I understand from our MD's comment in the past that, in the long term, it will balance out because Chinese ferrochrome production will shift to South Africa.

Speaker #4: But what will be the short-term impact on ferrochrome prices? Thank you.

Speaker #3: Thank you for your question. So, as we have discussed in the past, my view is that the special tariff which has been announced by SCOM for South African producers, or the other two producers, certainly makes South African ferrochrome more competitive.

Subhrakant Panda: Thank you for your question. As we have discussed in the past, my view is that the special tariff, which has been announced by Eskom for South African producers or other two producers, that certainly makes South African ferrochrome more competitive. I think the jury is still out as to how competitive they become with this tariff. Having said that, generally, our expectation is that we would expect to see in terms of chrome units. That means if the South African producers consume more chrome ore themselves, then it would logically should lead to less chrome ore being available for Chinese.

Speaker #3: I think the jury is still out as to how competitive they become with this spare tariff. But having said that, generally our expectation is that we would like we would expect to see in terms of chrome units that means if they if the South African producers consume more chrome ore themselves, then it would logically should lead to less chrome ore being available for Chinese.

Speaker #3: Now, again, something which is which is evident is that if South African production increases, and I don't think the number of four and a half million is right because at the moment only Glencore has switched on, I believe, lion one and Suresh might have the numbers, but I think it's something like 7,800,000 tons.

Subhrakant Panda: Again, something which is evident is that if South African production increases, I don't think the number of 4.5 million is right, because at the moment only Glencore has switched on, I believe line one, and Suresh might have the numbers, but I think it's something like 700,000 to 800,000 tons expectation, including others. Whatever that number is, that clearly if ferrochrome production in South Africa goes up and China doesn't compensate in terms of lesser output, then you will see some sort of glut. That is going to impact everybody, including the South African producers themselves, because they have made it repeatedly clear that INR 0.62 is not something which is very attractive, but something that they need to get to stay in the game.

Speaker #3: Expectation. But and including others. But whatever that number is, that clearly if ferrochrome production in South Africa goes up and China doesn't compensate in terms of lesser output, then you will see some sort of glut.

Speaker #3: And that is going to impact everybody, including the South African producers themselves. Because they have made it repeatedly clear that 62 cents is not something which is which is very, very attractive, but something that they need to stay in need to get to stay in the game.

Speaker #3: Having said that, we are confident about our competitiveness and our resilience. And we believe that with different sectors also starting to ask for special tariffs, like manganese, et cetera, we may see some short-term turmoil. Even that, I'm not so sure about.

Subhrakant Panda: Having said that, we are confident about our competitiveness and our resilience, and we believe that with different sectors also starting to ask for special tariffs like manganese, et cetera, that we may see some short-term turmoil. Even that, I'm not so sure. Clearly, I think it should balance each other out. That is where also the point I made at the beginning, that even if we see some price correction, please keep in mind that we have another 50% volume coming in. That will certainly provide a boost to our numbers in subsequent quarters. By the grace of God, we're quite confident.

Speaker #3: But clearly, I think it should balance each other—each other out. And that is also where the point I made at the beginning comes in: even if we see some price correction, please keep in mind that we have another 50% volume coming in.

Speaker #3: So that will certainly provide a boost to our numbers in subsequent quarters. So we are quite, by the grace of God, we are quite, quite...

Speaker #4: Okay.

Joe Shah: Okay.

Speaker #1: Thank you. Next question comes from the line of Tisha Chamriya with Trinata Asset Managers. Please go ahead.

Operator: Thank you. Next question comes from the line of Tisha Chamaria with Trinita Asset Managers. Please go ahead.

Speaker #5: Good evening, sir. Am I audible?

Operator 2: Good evening, sir. Am I audible?

Subhrakant Panda: Yes.

Speaker #3: Yes.

Speaker #5: Yes, sir. So my question was that—you have already answered it halfway. Given the current ferrochrome pricing environment, where does our company believe it sits on the global cost curve?

Operator 2: Yes, sir. My question was that you have already answered it halfway. Given the current ferrochrome pricing environment, where does our company believe it sits on the global cost curve? Have there been any recent operational initiatives that have strengthened your competitive position related to the South African and Kazakh producers?

Speaker #5: Have there been any recent operational initiatives that have strengthened your competitive position relative to the South African and Kazakh producers?

Speaker #3: So it's very difficult to accurately pinpoint where we stand, but suffice it to say that we are fairly competitive and resilient, as I mentioned a little while ago.

Subhrakant Panda: It's very difficult to accurately pinpoint where we stand. Suffice it to say that we are fairly competitive and resilient, as I mentioned a little while ago. Therefore, what we believe is that we will be able to hold our own, whatever may be the circumstances. The situation is not as gloomy as one might think. As I said, very clearly, we expect that increase in ferrochrome production in South Africa should lead to a reduction in chrome ore. If that doesn't happen, then this whole exercise of giving a special tariff to encourage restarts, it'll not work out well. That is one. We are fairly competitive on a global scale, if I can put it.

Speaker #3: And therefore, what we what we believe is that we are we will be able to hold our own whatever may be the circumstances. And I'm not and I'm the situation is not as gloomy as one might think.

Speaker #3: As I said, very clearly, we expect that an increase in ferrochrome production in South Africa should lead to a reduction in chrome ore exports. Because if that doesn't happen, then this whole exercise of giving a special tariff to encourage restarts will not work out well.

Speaker #3: So that is one. We are fairly competitive on a global scale, if I can put it that way. If I can ask Suresh to talk a little bit about some of the initiatives that we have undertaken in terms of digitalization and other Kaizen initiatives, etc., that we are implementing.

Subhrakant Panda: If I can ask Suresh to sort of talk a little bit about some of the initiatives that we have done in terms of digitalization and other Kaizen initiatives, et cetera, that we are taking. Suresh, in a couple of minutes, if you can just give a little update on some of the initiatives you have been spearheading to enhance our competitiveness.

Speaker #3: So Suresh, in a couple of minutes, if you can just give a little update on what you have been—some of the initiatives you have been spearheading to enhance our competitiveness.

Speaker #4: Yeah, thank you for that. So, we have initiated digital twin at one of our locations, and we are hurrying the deployment in other locations also.

Suresh Chigurupalli: Yeah. Thank you for that. We have initiated Digital Twin at one of our locations, and we are heavily deploying in other locations also. This is basically to make the operator intervention a little less and the cost optimization model. We're also initiating the Kaizen theories at different locations to optimize the cost. We will be very competent as far as the throughput cost is concerned.

Speaker #4: So this is basically to make the operator intervention a little less, and it's a cost optimization model. We're also initiating the Kaizen series at different locations to optimize the cost.

Speaker #4: So we will be very competent as far as the throughput cost is concerned.

Speaker #5: Okay, got it, sir. Also, China is a key player for global ferrochrome demand. Based on your customer interactions during Q1, are you seeing any improvement in stainless steel production, inventory, or supply? How does that shape your outlook for the second half of FY27?

Operator 2: Got it. Also, China is the key driver for the global ferrochrome demand. Based on your customer interactions during the quarter, are you seeing any improvement in the stainless steel production or inventory replenishment? How does that shape your outlook for the second half of the FY27?

Speaker #3: So, I don't think I have the numbers for FY27, but yes, stainless steel production has grown. I mean, it may not be very aggressive growth, but about 2.5% to 3% growth is there.

Subhrakant Panda: I don't think I have the numbers for FY27, but yes, stainless steel production has grown. It may not be very aggressive growth, but about 2.5% to 3% growth is there. Globally, if you look at it. Secondly, I think from a point of view of what is supporting prices at the moment, it is actually cost pressures because of availability of ore and pricing of ore, which is supporting ferrochrome prices. Of course, as you well know, that because we have our captive chrome ore mines, we are by and large insulated from that situation.

Speaker #3: Globally, if you look at it. And secondly, I think from a from a point of view of what is supporting prices at the moment, it is actually cost pressure because of availability of ore and pricing of ore, which is which is supporting ferrochrome prices.

Speaker #3: And, of course, as you well know, because we have our captive chrome ore mines, we are by and large insulated from that situation.

Speaker #1: Thank you. Ms. Chamriya, please remain on the queue for more questions. The next question comes from the line of Parthiv Johnson with Anandwati. Please go ahead.

Operator: Thank you. Ms. Chamaria, please rejoin the queue for more questions. Next question comes from the line of Parthiv Jhunjhunwala with Anand Rathi. Please go ahead.

Speaker #6: Hi, sir. Congratulations on a great set of numbers and a record quarter. It was a fantastic result, sir. So, just wanted to quickly check on a couple of things.

Parthiv Jhunjhunwala: Hi, sir. Congratulations on a great set of numbers on the record quarter. It was a fantastic result, sir.

Subhrakant Panda: Thank you.

Parthiv Jhunjhunwala: Sir, just wanted to quickly check on a couple of things. I'm sorry, actually, I missed your opening remark. I just wanted to get your understanding on this entire South Africa. Considering that the volumes have actually started picking up from Merafe, though they are down compared to last year, but they are still much higher than Q1. What is your understanding on that? Because eventually they would be selling it to China at the end of the day.

Speaker #6: I'm sorry, actually, I missed your opening remark. I just wanted to get your understanding on the entire situation in South Africa now, considering that the volumes have actually started picking up from Mirafe.

Speaker #6: Though they are down compared to last year, they are still much higher than Q1. So what is your understanding on that? Because eventually, would they be selling it to China at the end of the day?

Speaker #3: Yeah. So, a couple of things on that part—as we have discussed on the call, I have discussed on the call several times in the past two quarters.

Subhrakant Panda: Yeah. A couple of things on that, Parthiv. As we have discussed on the call, I have discussed on the call several times in the past two quarters, that unquestionably with $0.62 tariff being available to Glencore and Samancor, that they have switched on their more efficient furnaces, and that is what you are seeing, an increase in output. As you correctly said, it is more than what it was in Q1 of the calendar year, but less than the corresponding quarter. Again, we believe that this needs to be looked at in terms of chrome units. That is, if ferrochrome increases, then logically chrome ore supply should reduce, and that will impact ferrochrome production in China.

Speaker #3: That, unquestionably, with a $0.62 tariff being available to Glencore and Summoncore, they have switched on their more efficient furnaces, and that is why you're seeing an increase in output.

Speaker #3: And as you correctly said, it is less than it is more than what it was in Q1, but of the calendar year. But less than the corresponding quarter.

Speaker #3: So again, we believe that this needs to be looked at in terms of chrome units. That is, as ferrochrome increases, logically, chrome ore supply should reduce.

Speaker #3: And that will impact ferrochrome production in China. Having said that, if that were not to happen for whatever reason, keep in mind that South African miners and integrated producers have the possibility of selling just the ore.

Subhrakant Panda: Having said that, if that were not to happen for whatever reason, keep in mind that South African miners and integrated producers have the possibility of selling just the ore. It doesn't make sense, logically speaking, to convert it into ferrochrome and drive down prices and make less money themselves and for everybody else. Where is that balancing point or that tipping point? Is it possible to fine-tune it with that efficiency? I think we'll have to wait and watch. The other point I made in my opening remarks is that, as against 65,000 tons production on average in Q1 FY27, we have a volume of 80,000 tons.

Speaker #3: So it doesn’t make sense, logically speaking, to convert it into ferrochrome and drive down prices, making less money themselves and for everybody else.

Speaker #3: But where is that—where is that balancing point, or that tipping point? And is it possible to fine-tune it to that, with that efficiency?

Speaker #3: I think we'll have to wait and watch. But the other point I made in my opening remarks is that, as against 65,000 tons production on average, in Q1 FY27, we have a volume of 80,000 tons.

Speaker #3: And by the end of the year—financial year, that is—so the fourth quarter, which is January to March 2027, we will be looking at a full 50 percent higher volume at roughly about 120,000 to 125,000 tons per month.

Subhrakant Panda: By the end of the year, financial year, that is, the Q4, which is January to March 2027, we will be looking at a full 50% higher volume at roughly about 120,000, 125,000 tons per month. Parthiv, I don't know if you caught my other comment about we're slightly toning down the production guidance at KNR overall. We were indicating about 200,000 tons for FY27. While we have been able to start the four furnaces at KNR 2, there are a couple of furnaces, I think we are not loading the transformers fully because these are units which have not operated for a long time. Therefore, we have ordered two full sets of transformers and a spare.

Speaker #3: Parthiv, I don't know if you caught my earlier comment about how we're slightly toning down the production guidance at KNR overall. Previously, we were indicating about 400,000 tons for FY27.

Speaker #3: But while we have been able to start the four furnaces at KNR2, a couple of furnaces—I think we are not loading the transformers fully.

Speaker #3: Because these are units which have not operated for a long time, we are therefore looking into this. We have ordered two full sets of transformers and a spare.

Speaker #3: And over the course of Q2 and Q3, we will be replacing the slightly doubtful transformers with the new ones, and also some work on GCP needs to be done.

Subhrakant Panda: Over the course of Q2 and Q3, we will be replacing the slightly doubtful transformers with the new ones, also some work on GCP needs to be done. These are the unexpected surprises that one has when it comes to an acquisition, especially one which had not been running. This is par for the course, again, from a results perspective, even with these volumes, we are expecting fairly attractive numbers in Q2 and going ahead.

Speaker #3: So so these are the unexpected surprises that one has when it comes to an acquisition, especially one which had not been running. But this is par for the course and again, from a results perspective, volume I mean, even with these volumes, we will we are we are expecting fairly attractive numbers in Q2 and and going ahead.

Speaker #6: Okay, that's actually quite helpful. So, basically, when you say 120, 100, you mean to say your volumes for 2027 will be in the 360 to 380 kind of range?

Parthiv Jhunjhunwala: Okay, that's actually quite helpful. Basically, when you say 120,000, you mean to say your volumes for 2027 will be about 360,000, 380,000 kind of a range?

Speaker #6: Instead of 400?

Subhrakant Panda: 380,000 is what we are expecting for the year. If you remember, we had said 400,000 tons. That's where we were hoping that based on what we had seen during all the checkups that we had done while taking over the unit, that we'll be able to load it a little more. Broadly, again, Suresh, I think, can confirm that about 6 to 7 megawatts is lesser loading is happening. They also didn't have adequate power availability, that has come through another Suresh, how much? 15 MVA.

Speaker #3: 3380 is what we are what we are expecting. For the year, if you remember, we had said 400,000 tons. That's where we were we were hoping that we can based on what we had seen during during all the checkups that we had done while taking over the unit, that we will be able to load it a little more.

Speaker #3: Broadly, again, Suresh, I think, can confirm that about 6 to 7 megawatts of lesser loading is happening. We also didn't have—they also didn't have—adequate power availability.

Speaker #3: So that has come through another, Suresh. How much? 15 MVA?

Speaker #6: 15 MVA. Yes, yes. 15 MVA is enhanced load.

Suresh Chigurupalli: 15 MVA. Yes, sir. 15 MVA is the enhanced load.

Speaker #3: Yeah, so all of that has and will impact tonnage a little bit. But as I said, prices at the moment are more than making up.

Subhrakant Panda: All of that will impact tonnage a little bit, but as I said, prices at the moment are more than making up, and even 380-plus will still be a significant boost in terms of tonnage.

Speaker #3: And even 380-plus will still be a significant boost in terms of tonnage.

Speaker #1: Thank you. Mr. Johnson, please remain in the queue for more questions. The next question comes from the line of Maran Bandur with Walford PMS. Please go ahead.

Operator: Thank you. Mr. Jhunjhunwala, please rejoin the queue for more questions. Next question comes from the line of Manan Bhandari with Wolfe for PMS. Please go ahead.

Speaker #5: Hello. Thank you so much for the opportunity, and congratulations on the numbers. Sir, I just had one question regarding your realizations, specifically embedded realizations. So, a few quarters back, you had said that our embedded realizations...

Manan Bhandari: Hello. Thank you so much for the opportunity, and congratulations on the number. Sir, I just had one question around your EBITDA realizations. A few quarters back, you had said that our EBITDA realization

Speaker #6: Sorry for interrupting. Mr. Bandur, there's a lot of disturbance in the background. Can I hear you?

Operator: Sorry for interrupting. Mr. Bhandari, there's a lot of disturbance from the background.

Manan Bhandari: Okay.

Operator: Sorry to hear you.

Speaker #5: Okay, okay. Yeah. Can you hear me now?

Manan Bhandari: Okay. Yeah, can you hear me now?

Speaker #6: Yes. Please go ahead.

Operator: Yes. Please go ahead.

Speaker #5: Okay, sorry for that. Sir, this is the question that was asked earlier, two or three quarters back, once about the EBITDA profit, and you had stated that our average EBITDA would be around ₹20,000.

Manan Bhandari: Okay. Sorry for that. Sir, just the question was that earlier, two, three quarters back, once about the EBITDA profit, you had stated that our average EBITDA would be around INR 20,000. You said that because of the plant being closer to the different ports, it's going to help us and raise it to around INR 22,000 something. Just needed an understanding that are we still on par with that or is it going to be higher, about INR 25,000? Not just because the realizations are better right now, just in general over a long period.

Speaker #5: But then you said that because of the plants being closer to the different ports, it's going to help us and raise it to around 22,000-something.

Speaker #5: So, I just needed an understanding—are we still on par with that, or is it going to be higher, about 25,000? Like, not just because the realizations are better right now, but in general, over a long period.

Speaker #3: So, a couple of questions. We actually don't give EBITDA guidance in terms of specific numbers or what we expect per ton. But certainly, what I had indicated is that both KNR1 and KNR2 are more competitive than Thiruvali in terms of cost of production.

Subhrakant Panda: Couple of questions. We actually don't give EBITDA guidance in terms of specific numbers, what we expect per ton. Certainly what I had indicated is that both KNR I and KNR II are more competitive than Therubali in terms of cost of production. Therefore, once KNR I and KNR II all stabilize and we get to that 500,000 tons production in a smooth manner, then we will see our margins improve by about INR 1,500 to INR 2,000. That is what I had said. Now at the moment, on a per ton basis, if you look at for Q1, obviously my number is a lot higher because what we are seeing is our selling price being just shy of INR 120,000, blended selling price. That is significantly higher.

Speaker #3: And therefore, once KNR1 and KNR2 are all stabilized and we get to that 500,000 tons production in a smooth manner, then we will see our margins improve by about 1,500 to 2,000.

Speaker #3: So, that is what I had said. Now, at the moment, on a per-ton basis, if you look at Q1, obviously the number is a lot higher.

Speaker #3: Because what we are seeing is is our selling price being just shy of 1,20,000. Blended selling price. So that is significantly higher. And secondly, the point I had made is that just just being a little conservative in making this this statement, that whatever you see a correction or don't see a correction, we have a lot of volume coming on line, which will boost the overall performance.

Subhrakant Panda: Secondly, the point I had made is that just being a little conservative in making this statement that whatever you see a correction or don't see a correction, we have a lot of volume coming online, which will boost the overall performance. That's the specific statement.

Speaker #3: So that's the specific statement.

Speaker #5: Okay. Thank you so much, sir. That's it from us.

Manan Bhandari: Okay. Thank you so much, sir. That's it from me, sir.

Speaker #1: Thank you. Next question comes from the line of Parthiv Johnson with Anand Rathi. Please go ahead.

Operator: Thank you. Next question comes from the line of Parthiv Jhunjhunwala with Anand Rathi. Please go ahead.

Speaker #6: Yeah, sir. So I just wanted to quickly take the previous question forward. Considering the EBITDA per ton has actually substantially improved, I agree pricing had to play a large role in it.

Parthiv Jhunjhunwala: Yeah, sir. Sir, just wanted to quickly take the previous question forward. Considering the EBITDA per ton has actually substantially improved, I agree pricing had to play a lot of role in it. Has the benefits of that KNR I and II started coming in, the added or enhanced EBITDA per ton?

Speaker #6: But have the benefits of KNR 1 and 2 started coming in? Has the added or enhanced EBITDA per ton started to reflect in the numbers?

Speaker #3: Not not that much. And the reason I would say that is when you are when you are ramping up load, so that's where for some time you are consuming power without any output and all of that.

Subhrakant Panda: Not that much. The reason I would say that is when you are ramping up load, that's where for some time you are consuming power without any output and all of that. A lot of inefficiencies are there in the initial period. Some benefit is there. It's very difficult to quantify it because, as I said, for example, we have the renewable energy contract that we have signed up with JSW Energy. Now we have had that corridor since June, and we are expecting the power to flow in August. It's maybe a crore or so a month. Those little inefficiencies are there. It's next to impossible to absolutely synchronize it, fine-tune it to that extent.

Speaker #3: So a lot of a lot of inefficiencies are there. In the initial period. So some probably is some benefit is there. It's very difficult to quantify it because as I said, there are I mean, for example, we have the we have the renewable energy contract that we have signed up with JSW Energy.

Speaker #3: Now, we have had that corridor since June, and we are expecting the power to flow in August. So, I mean, it's maybe a crore or so a month.

Speaker #3: But those little inefficiencies are there. But then it's next to impossible to absolutely synchronize it, fine-tune it to that extent. So that is where I'm saying that we will see the benefit of selling another in its fullest form probably from Q4 of this year, assuming that we are able to smoothly operate the four furnaces at a higher load at KNR2 as well as the two furnaces at KNR1.

Subhrakant Panda: That is where I'm saying that we will see the benefit of Kalinganagar in its fullest form probably from Q4 of this year, assuming that we are able to smoothly operate the four furnaces at a higher load at KNR II as well as the two furnaces at KNR I.

Speaker #6: Got it, sir. And sir, my last question is pertaining to the inventory. Just wanted to get inventory and the other expenses. Just wanted to get a sense of what is the closing stock on books as on date, and the other expenses were relatively lower quarter on quarter.

Parthiv Jhunjhunwala: Got it, sir. Sir, my last question is pertaining to the inventory. Inventory and the other expenses. Just wanted to get a sense of what is the closing stock on books as on date, and the other expenses were relatively lower QOQ. What has led to that dip in lower other expenses?

Speaker #6: So, what has led to that dip in lower other expenses?

Speaker #3: Shauna, could you answer that, please?

Subhrakant Panda: Shaunak, would you be able to answer that please?

Speaker #2: Yeah, so on the second question, I will answer it first on the other expenses. So, as you know, for Q4, we had said that since the USD had gone up from Q3 end to Q4 end, from 89.9 to 94.65.

Saunak Gupta: Yeah. On the second question, I will answer it first on the other expenses. As you will, Q4, we had said that since the USD had gone up from Q3 end to Q4 end from 89.9 to 94.65. Exports that we raised for MTN, that is the maximum possible impact of INR 32 crore has come in our financials as a negative for that. For Q1 end, more or less the currencies have remained similar. Those INR 32 crore impact is no longer. In fact, we have got some foreign gain during this quarter. That's where the maximum amount of benefit has come on the other expenses. Besides, whatever is the cost efficiency initiatives we have taken, specifically on the predictable maintenance and shutdown. There also we have got some cost benefit. These two add up to the lower other expenses.

Speaker #2: So, in our exports that we hedge for MTM, the mark-to-market impact of ₹32 crore has come in our financials as a negative for that.

Speaker #2: But for the end of Q1, more or less, the currencies have remained similar. So, those 32 crores impacted us. On the impact, we had got some forex gain during this quarter.

Speaker #2: So that's where the maximum amount of benefit has come on the other expenses, besides whatever cost efficiency initiatives we have taken, specifically on the predictable maintenance and shutdown.

Speaker #2: So, there also, we have got some cost benefits. So these two add up to the lower other expenses. And on the inventory side, ferrochrome is under control as per whatever is the inventory plan.

Saunak Gupta: On the inventory side, ferrochrome is under control as per whatever is the inventory plan. On the chrome ore, we have stocks primarily, we have stocked up to meet whatever is our additional capacity for next 1 year. Approximately our ferrochrome stock of total 6 lakh tonnes. Almost stock up to 6 lakh tonnes is there with us.

Speaker #2: On the crore mode, we have stock primarily—we have stocked up to meet whatever is our additional capacity for the next one year. So, approximately our ferrochrome stock is a total of 6 lakh tons; almost half of 6 lakh tons is there with us.

Speaker #3: And Parthiv, I'd like to add one more point that in the context of dramatically increasing our ferrochrome output, we'll also have to build up a little bit of ferrochrome stock.

Subhrakant Panda: Parthiv, I'd like to add one more point. That in the context of dramatically increasing our ferrochrome output, we'll also have to build up a little bit of ferrochrome stock because that about 17,000, 18,000 tonnes, which works well when we have only 2 locations. Now that we have a third location and higher tonnages. This is where over the next 1 or 2 quarters, we will be sort of making sure that everything sort of settles down in a manner which is efficient. That is why I'm repeatedly saying that Q4 onwards is when we expect to see smooth operations with ferrochrome inventory having reached the level that we want it to reach for a given higher output. All those things will settle down by Q4.

Speaker #3: Because that's about 17,000 to 18,000 tons, which works well when we have only two locations. But now that we have a third location and higher tonnages, this is where, over the next one or two quarters, we will be making sure that everything settles down in a manner which is efficient.

Speaker #3: So that is why I'm repeatedly saying that Q4 onwards is when we expect to see smooth operations with inventory having reached the Ferrochrome inventory having reached the level that we wanted to reach for a given a higher output.

Speaker #3: So, all those things will settle down by the fourth quarter.

Speaker #6: Okay, sir. That's quite helpful, sir. Thank you.

Parthiv Jhunjhunwala: Okay, sir. That's quite helpful, sir. Thank you.

Speaker #1: Thank you. Next question comes from the line of Harsh Vasa with SBI Cap Securities. Please go ahead.

Operator: Thank you. Next question comes from the line of Harsh Vasa with SBICAP Securities. Please go ahead.

Speaker #7: Congratulations, sir, and your team on the fantastic results. Sir, one of my questions is already answered, but it was just pertaining to selling price, as you all know that the realization per ton was around ₹1,19,000 this quarter.

Harsh Vasa: Congratulations sir and your team on fantastic results. Sir, one of my questions is already answered, but it was just pertaining to selling price. As we all know that the realization per ton was around 119,000 this quarter. Is this trend continuing for Q2 as well currently?

Speaker #7: So, is the trend continuing for Q2 as well? Like, currently?

Speaker #3: So actually, we don't generally give a guidance beyond a quarter or so, because it's difficult. But having said that, for Q2 we are seeing more or less results of the same level, with a little bit of correction.

Subhrakant Panda: Harsh, we don't generally give a guidance beyond a quarter or so because it's difficult. Having said that, Q2, we are seeing more or less results at the same level, little bit of correction. Again, volumes will make up for minor correction in price that we are seeing. Beyond that, let's see how it plays out. Broadly speaking, I'm quite confident that the cost structure is such. It's not a question of Chinese buyers are just sitting, South Africans will come and the tonnages will simply shoot up. Because I think the disruption which was there in South Africa means that they are very clear that companies like us which have really worked with them to sort of have a stable relationship.

Speaker #3: But again, volumes will make up for minor correction in price that we are seeing. Beyond that, let's let's see how it plays out. Broadly speaking, I'm quite confident that the cost structure is such that and it's not a question of Chinese buyers are just sitting South African will come and they will the tonnages will will simply shoot up.

Speaker #3: Because I think the disruption which was there in South Africa means that there is they are very clear that companies like us which have which have really worked worked with them to to sort of have a stable relationship, we will continue to sort of get I can't call it preferential treatment, but certainly some degree of understanding that it's not a it's a good idea to keep our supplies in the mix.

Subhrakant Panda: We will continue to sort of get, I can't call it preferential treatment, but certainly some degree of understanding that it's a good idea to keep our supplies in the mix.

Speaker #7: Okay, sir. Okay, sir. Thank you.

Harsh Vasa: Okay, sir. Thank you.

Speaker #1: Thank you. Next question comes from the line of Asha Patel with Molecule Ventures. Please go ahead.

Operator: Thank you. Next question comes from the line of Asif Patel with Molecule Ventures. Please go ahead.

Asif Patel: Thank you for the opportunity. Congratulations on a blockbuster set of numbers, sir. This quarterly result actually puts us in a different league altogether. This is the first time we are seeing the full benefit of the integrated business model which we boast about. My question is, sir, regarding the Q2 volume guidance. I agree that we cannot envisage a year out, but at least for Q2, can we expect now that the KNR 2 has been operating at optimum utilization, at least the two ongoing furnaces? Can we expect Q2 to have at least upwards of 90,000 metric ton sort of a volume?

Speaker #7: Thank you for the opportunity. Congratulations on our blockbuster set of numbers, sir. This quarterly result actually puts us in a different league altogether. This is the first time we are seeing the full benefit of the integrated business model, which we boast about most.

Speaker #7: So my question is, sir, regarding the Q2 volume guidance. So I agree that we cannot envisage a year out. But at least for Q2, can we expect now that the KNR2 has been operating at optimum utilization, at least the two ongoing furnaces, can we expect Q2 to have at least upwards of 90,000 metric tons sort of a volume?

Speaker #3: Look, I don't want to get into the specifics of numbers in terms of production. We will certainly go further beyond where we are at the moment.

Subhrakant Panda: Look, I don't want to get into the specifics of numbers. In terms of production, we will certainly go up further beyond where we are at the moment. As I mentioned, we are also looking to build up a little bit of stock because if I just give you from a theoretical perspective, 17,000, 18,000 tons of ferrochrome stock is okay when you are producing 265. When you are producing 400 or 450, it is not adequate. Those little balancing will happen. Ashif, I will reiterate a point which I have always made. I advise investors not to look at IMFA from a quarter-on-quarter basis or what we will achieve this quarter or next quarter. Certainly we are answerable. We should have a general upward trajectory.

Speaker #3: But as I mentioned, we are also looking to build up a little bit of stock. Because, I mean, if I just give you, from a theoretical perspective, 17,000 to 18,000 tons of ferrochrome stock is okay when you're producing 265,000.

Speaker #3: But when you're producing 400 or 450, it's it's not adequate. So those little balancing is is will will happen. And Asha, I will reiterate a point which I have always made, which is that I I advise investors not to look at IMPA from a quarterly quarter and quarter basis or what we will achieve this quarter or or next quarter.

Speaker #3: But I mean, certainly we are answerable. We should have a general upward trajectory. But whether it is 84 or 86 or 82 is not as relevant as how quickly we are able to get to 500,000 tons and maintain that.

Subhrakant Panda: Whether it is 84 or 86 or 82 is not that relevant as how quickly are we able to get to 500,000 tons and maintain that. That's been our approach rather than a short-term play of what exactly we will get during this quarter. Shaunak, I don't know if you have anything to add.

Speaker #3: So that's been our approach, rather than focusing on a short-term play of what exactly we will get during this quarter. Shaunak, I don't know if you have anything to add.

Speaker #7: Yeah, I do. What you said is correct. So that's more or less what we will be—sort of quarter two—what we see is the average price realization will more or less remain the same.

Saunak Gupta: Yeah, I think what you said is correct. That's more or less will be about Q2, what we see is average price realization will more or less remain same. On the volume one, there will be some incremental volume. But since we are building on the ferrochrome stock, more or less it could be on the similar range.

Speaker #7: And the volume one, there will be some incremental volume. But since we are building on the ferrochrome stock, more or less it will be in a similar range.

Asif Patel: Okay. Sure. Just to zoom it out and see on a yearly stance. I understand that this time around, what we have delivered is absolutely robust, 30% operating margin, 35,000 metric ton EBITDA. This is the typical peak which we used to do, and this we are able to do when the industry cycle is at medium level. This in fact reflects our benefit of captive ore. Can we just at least assume that even if there is a little bit of a reduction in expected volumes by 5%, can we expect at least the quarterly EBITDA which we posted on Q1, can we annualize that given the volume uptick which we are seeing ahead of us?

Speaker #7: So sir, broadly.

Speaker #1: Sure. Sure.

Speaker #7: So just to zoom out and see on a yearly sum, I understand that this time around what we have delivered is absolutely robust: 30% operating margin, 35,000 metric ton EBITDA.

Speaker #7: This is the cyclical pick which we used to do, and this we are able to do when the industry cycle is at a medium level.

Speaker #7: So, this in fact reflects our benefit of captive ore. So, can we just at least assume that even if there is a bit of reduction in expected volumes by 5%, can we expect at least in Q1—can we analyze that, given the volume of it which we are seeing ahead of us?

Speaker #3: No. So, in the interest of transparency, because we have talked about 400,000 tons for FY27 at various fora, I wanted to put that out there.

Subhrakant Panda: Yeah. So in the interest of transparency, because we have talked about 400,000 tons for FY27 at various fora, I wanted to put that out there. As I said, we don't give a written guidance per se, but if we have stated a number, it is better for us to clarify why we are not achieving that number. But that apart, I think annualizing this EBITDA again calls for us to look at what the numbers and the margins will be two or three quarters hence, which I don't want to do. I am quietly confident, but what those numbers are, will it be slightly up, slightly down, is not something I would like to get into. Because again, I would reiterate that I think it's better to look at the general trajectory or the general sort of strength of IMFA rather than look at specifics in a quarter.

Speaker #3: While, as I said, we don't give a guidance per se, but if you stated a number, it is better for us to clarify why we are not achieving that number.

Speaker #3: But that apart, I think annualizing this EBITDA again calls for us to look at what the numbers and the margins will be two or three quarters hence, which I don't want to do.

Speaker #3: I am quietly confident, but what those numbers are—whether it will be slightly up or slightly down—is not something I would like to get into.

Speaker #3: Because again, I would reiterate that I think it's better to look at the general trajectory or the general sort of strength of IMFA, rather than look at specifics in a quarter.

Speaker #1: Thank you. Mr. Patel, please rejoin the queue for more questions. The next question comes from the line of B.V. Agarwal with FICOM Family Office. Please go ahead.

Operator: Thank you. Mr. Patel, please rejoin the queue for more questions. Next question comes on the line of B.V. Agarwal with SPICOM Family Office. Please go ahead.

Speaker #7: Yeah. Hi, sir. Thanks for taking my question. I had one question regarding the expansion of SecOps. So they've announced that they'll be increasing their capacity from 145,000 tons to 500,000 tons by 2028.

B.V. Agarwal: Yeah. Hi, sir. Thanks for taking my question. I had one question regarding the expansion of FACOR. So they've announced that they'll be increasing their capacity from 145,000 tons to 500,000 tons by FY28. At the same time, IMFA has guided to increase in domestic sales to 40% of the total volumes. So in light of this capacity additions, how do you assess the domestic ferrochrome market over the next two to three years? Do you expect any extra supply to create an oversupply situation or expect pressure on domestic pricing and margins?

Speaker #7: And at the same time, IMPA has guided to increase the domestic sales to 40% of the total volumes. So, in light of this capacity addition, how do you assess the domestic ferrochrome market over the next two to three years?

Speaker #7: Do you expect any extra supply to create an oversupply situation, or expect pressure on domestic pricing and margins?

Speaker #3: So, we are not—I obviously wouldn't want to comment on SecOps' plans and their timelines. That is for them to clarify to the markets and to investors.

Subhrakant Panda: I obviously wouldn't want to comment on FACOR's plans and their timelines. That is for them to clarify to the markets and to investors. But broadly, what we believe is that Indian ferrochrome demand is growing because stainless steel is growing. There has been some cutbacks. So while we have added and FACOR is talking about adding, but there has been some cutbacks also. I don't see any difficulties in that regard. In any case, like I've always said that, whether we sell domestically or we export, there is not that much of a price difference because the duty protection is hardly 2% or 3% or something of that sort. So we always retain the ability to sell more outside if we want to. I mean, export more.

Speaker #3: But broadly, what we believe is that Indian ferrochrome demand is growing because stainless steel is growing. There have been some cutbacks. So while we have added, and SecOps is talking about adding, there have also been some cutbacks.

Speaker #3: So I don't I don't see any difficulties in that regard. In any case, like I have always said, that I mean, whether we sell domestically or we sell I mean, we export, there is not that much of a price difference because I mean, the duty protection is hardly two, three percent or something of that sort.

Speaker #3: So we always retain the ability to to sell more outside if we want to. But our I mean, export more. But our approach has been that as the largest producer, I think it is incumbent upon us to ensure that the domestic Ferrochrome demand is adequately met.

Subhrakant Panda: Our approach has been that as the largest producer, I think it is incumbent upon us to ensure that the domestic ferrochrome demand is adequately met. By no means do we feel that we are the only ones to do it. Others moving ahead with their plans is more than welcome.

Speaker #3: And by no means do we feel that we are the only ones to do it. So, I mean, others moving ahead with their plans is more than welcome.

Speaker #7: Right, sir. Fair enough. That was helpful. Thanks a lot, and all the best.

B.V. Agarwal: Right. Fair enough. That was helpful. Thanks a lot, and all the best.

Asif Patel: Thank you. Next question comes from the line of Vinit Thakur with Plus 91 AMC. Please go ahead.

Speaker #1: Thank you. Next question comes from the line of Vinith Thakur with plus 91 EMC. Please go ahead.

Speaker #8: Hi, sir. Thank you for the opportunity congratulating a great set of numbers. So I joined late my question about the repetitive. But could you just explain to me how the increment in the margins what has led to it and what would be a sustainable margins going forward as well?

Vinit Thakur: Hi, sir. Thank you for the opportunity. Congratulations on a great set of numbers. I'll join late, my question might be repetitive, but could you just explain to me how the incremental in the margins, what has led to and what would be the sustainable margins going forward as well?

Speaker #3: So very clearly, prices have moved up substantially. That is what has added. But in terms of the overall numbers, our volume is also on the way up.

Subhrakant Panda: Very clearly prices have moved up substantially, that is what has added. In terms of the overall numbers, our volume is also on the way up. As against a standard of about 65,000 tons, we have produced and sold about roughly 80,000 tons. It is a combination of volume as well as prices moving up. Like I said, we have more volume coming online in the next one to two quarters. We are quite confident about the numbers that we will churn out.

Speaker #3: So, against the standard of about 65,000 tons, we have produced and sold roughly 80,000 tons. So, it's a combination of volume as well as prices moving up.

Speaker #3: And like I said, we have more volume coming online in the next one to two quarters, so we are quite confident about the numbers that we will churn out.

Speaker #8: So post the new the new plant in the Kalevanagar plant, what is the capacity going forward?

Vinit Thakur: Post the new plant at the Kalinganagar plant, what will be your capacity going forward?

Subhrakant Panda: As I said, our capacity will be about a little more than half a million tons. We are expecting in FY27 about 380,000 tons, which is a slight reduction from what we had indicated earlier. We are still maintaining 475,000 to 500,000 tons for FY28.

Speaker #3: So, as I said, our capacity will be a little more than half a million tons. We are expecting in FY27 about 380,000 tons, which is a slight reduction from what we had indicated earlier.

Speaker #3: And we are still maintaining 545,000 to 500,000 tons for FY28.

Speaker #8: Production capacity, sir.

Vinit Thakur: Production or capacity, sir?

Speaker #3: Production.

Subhrakant Panda: Production.

Speaker #8: Production of half a million in '28, you're saying. So could you comment on these West Asia prices and how has that led to IMFA's margin increment, or what is the industry scenario going forward now post West Asia prices?

Vinit Thakur: Production of half a million in 2028 you're saying.

Subhrakant Panda: Yes.

Vinit Thakur: Could you comment on this West Asia crisis and how has that led to IMFA's margin incremental? What is the industry scenario going forward now post the West Asia crisis?

Speaker #3: So, fortunately for us, there's no impact from the West Asia crisis, because we don't import anything from West Asia or sell anything to West Asia.

Subhrakant Panda: Fortunately for us, no impact of the West Asia crisis because we don't import anything from West Asia or sell anything to West Asia. In the initial days, certainly there was a little bit of disruption in terms of container availability and all of that, but that has by and large settled down. Many of the fact that we're 95% export at this stage, and a lot of that is going to the Far East, which is not affected by this is obviously beneficial. Secondly, when we talk about gas requirement and all of that's not relevant for any of us. Fortunately, we have not had any noticeable impact. Yes, freight rate and domestic freight and export freight has gone up a little bit, but prices have more than made up for that.

Speaker #3: In the initial days, certainly there was a little bit of disruption in terms of container availability and all of that, but that has by and large settled down.

Speaker #3: But many of the—the fact that we're nearly 95% exports at this stage, and a lot of that is going to the Far East, which is not affected by this, is obviously beneficial.

Speaker #3: And secondly, when we talk about gas requirement and all of that, that's not relevant for any of us. So, fortunately, we have not had any noticeable impact.

Speaker #3: Yes, freight rates, both domestic and export freight, have gone up a little bit, but prices have more than made up for that.

Speaker #1: Thank you. Mr. Thakur, please rejoin the queue for more questions. The next question comes from Shivam Purohit with SBI Securities. Please go ahead.

Operator: Thank you. Mr. Thakur, please rejoin the queue for more questions. Next question comes from the line of Shubham Purohit with SBS Securities. Please go ahead.

Speaker #7: Yeah. Hello. Thank you so much for the opportunity, and congratulations to the entire team for posting such strong results. So sir, my question is regarding the medical cost.

Shubham Purohit: Hello. Thank you so much for the opportunity, and congratulations to the entire team for posting such strong results. Sir, my question is regarding the met coal cost. Recently we have seen the met coal prices have declined or have corrected for quite some amount. The question pertains that the bookings that we have done during the current quarter, that is Q2. Is the effect of those declining prices expected to be seen in the upcoming quarters, let's say Q3 or Q4?

Speaker #7: So, recently we have seen that medical prices have declined, or have corrected by quite some amount. So the question pertains to the bookings that we have done during the current quarter, that is Q2.

Speaker #7: So, is the effect of those declining prices expected to be seen in the upcoming quarters? Let's say, Q3 or Q4.

Subhrakant Panda: Actually, met coal prices have moved up a little bit. I don't know about coking coal, but as far as metallurgical coke is concerned, it's moved up a little bit on account of Colombia, et cetera, their currency depreciation. Again, prices by and large have made up for all of those things.

Speaker #3: Actually, medical prices have moved up a little bit. Now, I don't know about Coca-Cola, but as far as metallurgical coke is concerned, it's moved up a little bit.

Speaker #3: On account of Colombia, etc., their currency depreciation. But again, these are—I mean, prices by and large have made up for all of those things.

Speaker #7: Okay. So, a small uptick would be the impact that we would see in the medical prices.

Shubham Purohit: Okay. A small uptick would be the impact that we would see in the met coal prices.

Subhrakant Panda: It may not be in Q2, maybe in Q3.

Speaker #3: It's not been Q2, maybe in Q3.

Speaker #7: Of three months, let's say.

Shubham Purohit: Of three months, let's say.

Speaker #1: Thank you. The next question comes from the line of Yash Lahoti with SOIC Research. Please go ahead. Mr. Lahoti, please proceed with your question.

Operator: Thank you. Next question comes from the line of Yash Lahoti with SWIC Research. Please go ahead. Mr. Lahoti, please go ahead with the question. Mr. Lahoti, please unmute yourself and go ahead with the question. Since there's no reply from the line of Mr. Lahoti, we'll promote the next in line. That is Mr. Saket Kapoor from Kapoor & Co. Please go ahead.

Speaker #1: Mr. Lahoti, please unmute yourself and go ahead with your question. Since there's no reply from Mr. Lahoti's line, we'll promote the next in line.

Speaker #1: That is Mr. Sakit Kapoor from Kapoor & Co. Please go ahead.

Speaker #7: Yeah. Namaskar, sir, and thank you for the opportunity. Sir, as you mentioned correctly, the price trends are more likely to be in the same vicinity or closer to 1,20,000, or is it difficult to hazard a guess for the ensuing quarter?

Saket Kapoor: Yeah. Namaskar, sir, and thank you for the opportunity. Sir, as you mentioned correctly that the price trends are more likely to be in the same vicinity of closer to 120,000 or is it difficult to hazard a guess for the ensuing quarter? Since that you have already spoken that for you the visibility for a quarter or at max two is what you can guide us. Taking that into account, what should be then the reasonable EBITDA runway on top of 281 which we did for Q1? What should be the modeling for the coming two quarters at least? What is the visibility for, say, in front of you?

Speaker #7: And since you have already always spoken that for you, the visibility for a quarter, at max two, is what you can guide us.

Speaker #7: So, taking that into account, what should be the reasonable EBITDA runway on top of the 281 which we did for Q1? What should we model in for the coming two-quarter exit, or what is the visibility for this in front of you?

Speaker #3: So again, you know, I don't want to get into too much of guidance, but clearly as far as prices are concerned in Q2, we are seeing, broadly speaking, similar prices, maybe a slight correction.

Subhrakant Panda: Again, I don't want to get into too much of guidance. Clearly, as far as prices are concerned in Q2, we are seeing broadly speaking similar prices, maybe slight correction. We will also have a little bit of slight tonnage extra in Q2 to make up for it. Q3 and Q4 is when you will have much larger tonnage coming online. While I'm not saying the prices will go down, I would not want to hazard a guess. On an overall basis, I think we are fairly confident of delivering robust numbers.

Speaker #3: But we will also have a little bit of tonnage, a slight tonnage extra in Q2 to make up for it. And Q3 and Q4 are when you will have much larger tonnage coming online.

Speaker #3: So while I'm I'm I'm not saying the prices will go down, but I I would not want to hazard a guess. But on an overall basis, I think we are fairly confident of return of of delivering robust numbers.

Speaker #7: So, this Q1 number can also be a base for this financial year. That is my understanding.

Saket Kapoor: This Q1 number can be a base also for this financial year. That is not a background understanding.

Subhrakant Panda: Sorry?

Speaker #3: Sorry?

Speaker #7: We can take this Q1 number of FY27 as a base for this current financial year.

Saket Kapoor: We can take this Q1 number of FY27 as a base for this current financial year.

Subhrakant Panda: Well, let me not make a definitive statement because we are seeing prices at recent highs. There is still 50% tonnage waiting to come. That's where even any slight correction will get balanced out is what we believe. Again, I would not want to be drawn into giving specific numbers, because I think that would not be appropriate.

Speaker #3: Well, let me not make a definitive statement because we are seeing prices at recent highs, but there is still 50% tonnage waiting to come.

Speaker #3: So, you know, that's where even any slight correction will get balanced out, is what we believe. But again, I would not want to be drawn into giving specific numbers, because I think that would not be appropriate.

Speaker #1: Thank you. Mr. Kapoor, please rejoin the queue for more questions. The next question comes from Anand Sagar with Chhattisgarh Investment Limited. Please go ahead.

Operator: Thank you. Mr. Kapoor, please rejoin the queue for more questions. Next question comes from the line of Anant Sagar with Chhattisgarh Investment Limited. Please go ahead.

Speaker #7: Sir, congratulations on the brilliant set of results. I just have one question, sir. You know, we had a 50,000-ton furnace.

Anant Sagar: Sir, congratulations for the brilliant set of results. I just have one question, sir. We had a 50,000 ton furnace in the KNR2, in which there was some kind of environmental clearance pending. Do we have clarity on that, sir?

Speaker #7: In the KNR2, in which there was some kind of environmental clearance pending, do we have clarity on that, sir?

Speaker #3: Not at the moment. We are we are hoping that somewhere around middle of next year is when we can we can do that. In fact, at the current board meeting, we have also you know, approved a slightly higher budget because again, when we do a more detailed review of of you know, what is the what is the situation and what work remains to be done.

Subhrakant Panda: Not at the moment. We are hoping that somewhere around middle of next year is when we can do that. In fact, at the current board meeting, we have also approved a slightly higher budget because, again, when we do a more detailed review of what is the situation and what work remains to be done. Little bit of another 15, 20 crores or so is what we have approved in this budget. Somewhere around middle of next year or thereabout. I don't want to give a definitive answer at this point in time. Again, we will need to now move ahead on the environment clearance and all of that. Certainly we are keen on getting that going as quickly as possible.

Speaker #3: So, a little bit of another 15–20 crores or so is what we have approved in this budget. So, somewhere around the middle of next year, or thereabouts. I mean, I don't want to give a definitive answer at this point in time.

Speaker #3: Because, again, we will need to now move ahead on the environment clearance and all of that. But let's see. Certainly, we are keen on getting that going as quickly as possible.

Speaker #7: So, just to clarify, sir, you're saying that by the middle of next year, you will have some clarity in further quarters.

Anant Sagar: Just to clarify, sir, you're saying that by the middle of sometime next year you'll have some clarity in further quarter, the furnace will be operational. Correct, sir?

Speaker #7: The furnace will be operational, correct, sir?

Speaker #3: No, what I'm saying is, in the next three or four months, we will have clarity on whether that furnace will be up and running by the middle of 2027, or, you know, slightly longer, or something of that sort.

Subhrakant Panda: No. What I'm saying is, in the next three or four months we will have clarity whether that furnace will be up and running by middle of 2027 or slightly longer or something of that sort.

Speaker #7: Okay, sir. Thank you.

Anant Sagar: Okay, sir. Thank you.

Speaker #1: Thank you. Next question comes from the line of Pranav Jain with Agelessess Capital and Finance. Please go ahead.

Operator: Thank you. Next question comes from the line of Pranav Jain with Ageless Capital and Finance. Please go ahead.

Speaker #7: Hi, sir. Thank you for the opportunity. And congratulations on the good set of results. Very happy to see the company outperform. Sir, just going back to Q4, where you had mentioned that due to, you know, that there might be a one one-time increase in cost due to the ramp up of production and which is visible in this quarter, just want to understand, is this the peak as to what our cost escalation might be at least till Q3 since from Q4, once our operations stabilize, we can see a potential benefit like you had mentioned?

Pranav Jain: Hi, sir. Thank you for the opportunity, and congratulations on the good set of results. Very happy to see your company outperform. Sir, just going back to Q4, where you had mentioned that there might be a one-time increase in cost due to the ramp-up of production, and which is visible in this quarter. Just want to understand, is this the peak as to what our cost escalation might be, at least till Q3, since from Q4 once our operations stabilize, we can see a potential benefit, like you had mentioned.

Speaker #3: So look, from a cost escalation perspective, there are two things. One is the fixed costs, which are spread over and divided by a larger tonnage.

Subhrakant Panda: Look, from a cost escalation perspective, there are two things. One is the fixed cost, which is spread over or divided over a larger tonnage. That will enhance. Obviously the variable cost in terms of met coke and other things that can move up or down a little bit, that's hard to say at this point in time. We are not seeing significant risks on that front, having said that.

Speaker #3: So that will enhance. But officially, the variable cost in terms of METCOC and other things, this moves up or down a little bit. You know, that's hard to say at this point in time.

Speaker #3: We are not seeing significant, you know, risks on that front, having said that.

Pranav Jain: sir, second, this is my one last question. We've seen ferrochrome prices correct a little, and since it is passed on with a lag, while Q2 is stable as mentioned, Q3, Q4 might see a larger dip in realization since we already have a visibility of that.

Speaker #7: And sir, secondly, just one last question. We've seen ferrochrome prices correct a little, and since it is passed on with a lag, while Q2 is stable, as mentioned, Q3 and Q4 might see a larger dip in realizations.

Speaker #7: Since we already have visibility on that.

Speaker #3: No, we don't have visibility or whatever visibility we have are not comfortable sharing it. As I said, we you know, one has to wait and watch because there are there are multiple factors there are, you know, overavailability and pricing is a concern.

Subhrakant Panda: No, we don't have visibility, or whatever visibility we have, I'm not comfortable sharing it. As I said, we wanted to wait and watch because there are multiple factors. There are ore availability and pricing is a concern. It's not so simple for ferrochrome prices to dip also. But having said that, we definitely don't give a guidance for Q3 and Q4. I want us to just wait and watch. What I will say, repeat, is that we certainly have higher volumes coming on, which will see us delivering a robust set of numbers going ahead.

Speaker #3: So it's not so simple for ferrochrome prices to dip also. But having said that, we definitely don't give a guidance for Q3 and Q4.

Speaker #3: So one has to just wait and watch. What I will say, to repeat, is that we certainly have higher volumes coming on, you know, which will see us delivering a robust set of numbers going ahead.

Speaker #1: Thank you. Mr. Jain, please rejoin the queue for more questions. The next question comes from the line of Joe Shah with Seven Seas. Please go ahead.

Operator: Thank you. Mr. Jain, please rejoin the queue for more questions. Next question comes from the line of Joe Shah with Seven Seas. Please go ahead.

Speaker #5: Dr. Kanda, I want to understand the timeline for auctioning of the metallic mines with composite license. I understand that the allotment deadline is 31st March 2027.

Joe Shah: Mr. Panda, I want to understand the timeline for auctioning of polymetallic mines with a composite license. I understand that allotment deadline is 31 March 2027. Am I right?

Speaker #5: Am I right?

Speaker #3: What auction are you talking about?

Subhrakant Panda: What auction are you talking about?

Speaker #5: All the metallic mines with the composite license.

Joe Shah: Polymetallic mines with a composite license.

Speaker #3: No, I have not kept up with that. I'm not, so I would not like to comment until I look into that.

Subhrakant Panda: No, I have not kept up with that. I would not like to comment until I look into that a little bit.

Speaker #5: Okay. Now, coming to Iran, talking optimism, we believe that the general belief is that, you know, the Iran war has to come to an end in six months' time.

Joe Shah: Okay. Now, coming to Iran talk optimism, we believe that general belief is that Iran war has to come to an end in six months' time, and it will lead to reconstruction demand for stainless steel 316L. There will be a huge demand. What is your take on that?

Speaker #5: It will lead to reconstruction demand for stainless steel 316L. That will be a huge demand. So what is your take on that?

Speaker #3: Certainly, when all these geopolitical, you know, conflicts simmer down and settle down, you know, whether it is there or whether it is Ukraine, Russia, etc., certainly there will be there will be demand.

Subhrakant Panda: Certainly when all these geopolitical conflicts simmer down and settle down, whether it is there or whether it is Ukraine, Russia, et cetera, certainly there will be demand. Even from an Indian perspective, there is significant CapEx outlay for public infrastructure. We are now seeing that switch where a lot more stainless steel is being used than before. I think within India also, I believe that there is significant demand, which we and others can cater to.

Speaker #3: But, you know, I mean, even from an Indian perspective, there is significant, you know, capex outlay for public infrastructure. And we are now seeing that switch where a lot more stainless steel is being used than before.

Speaker #3: So I think within India also, with I believe that there is, you know, significant you know, demand which we and others can cater to.

Operator: Thank you. Mr. Shah, please rejoin the queue for more questions. Next question comes from the line of Deepak Pandey with Sagun Capital. Please go ahead.

Speaker #1: Thank you. Mr. Shah, please rejoin the queue for more questions. Next question comes from the line of Deepak Pandey with Sagun Capital. Please go ahead.

Speaker #7: Hi, sir. Congrats on a good set of numbers. Sir, regarding our treating some sort of entry into critical minerals, any comment on that?

Deepak Pandey: Hi, sir. Congrats on a good set of numbers. Sir, Jindal are stating some sort of entry into critical minerals. Any comment on that?

Speaker #3: So that is something we are very clearly we are very clearly said that critical minerals is something we are interested in because it's a certain adjacent to our skill set.

Subhrakant Panda: That is something we have very clearly said that critical minerals is something we are interested in because it's certainly adjacent to our skill set. We have looked at a couple of blocks but have unfortunately not been successful in the bid. That is something that we will keep on trying to see if we can make a breakthrough in that. Yes, critical minerals does remain an area of interest for us.

Speaker #3: We have looked at a couple of blocks, but have unfortunately not been successful in the bid. So, that is something that we will keep on trying, to see if we can, you know, if we can make a breakthrough in that.

Speaker #3: But yes, critical minerals do remain an area of interest for us.

Speaker #1: Mr. Pandey, are you done with the questions?

Operator: Mr. Pandey, are you done with your questions?

Speaker #7: Yes. Thank you.

Deepak Pandey: Yes. Thank you.

Speaker #1: Thank you. Next question comes from the line of Sakit Kapoor with Kapoor & Co. Please go ahead.

Operator: Thank you. Next question comes from the line of Saket Kapoor with Kapoor & Co. Please go ahead.

Speaker #7: Yes, sir. Just in continuation to the same, sir, how have we tied up for the selling of the incremental capacity? I think we were more inclined to sell domestically.

Anant Sagar: Yes, just in continuation to the same thing, how have we tied up for the selling of the incremental capacity? I think we were more inclined to sell domestically. How are things shaping up? With respect to the key raw material for the coking coal, the met coke part, I missed your comment how those prices are currently trending. These two questions.

Speaker #7: So, how are things shaping up? And with respect to the key raw material—the coking coal, the Metcoke part—I missed your comment.

Speaker #7: How are those prices currently trending? These two questions.

Subhrakant Panda: Met coke prices have moved up a little bit, not a tearaway run, but moved up a little bit. Which is again what happens is, ferrochrome prices are high. Secondly, in Colombia, et cetera, there is currency depreciation. All of that is having an effect. But inasmuch as selling material is, ferrochrome is concerned, as I said, it is something that we can very easily adjust from domestic to export and exports to domestic. Of course, with long-term customers where we have a minimum base tonnage, we will not go below that. Broadly, Suresh, I think in Q1, if I recall correctly, about 15% to 18% domestic sales. Is that right?

Speaker #3: So, METCOC did not tear away and run, but moved up a little bit, which is again what happens if Ferrochrome prices are high. Secondly, in Colombia, etc., there is, you know, currency depreciation.

Speaker #3: So all of that is having a factor. But in as much as selling material, as far as ferrochrome is concerned, as I said, it is something that we can very easily adjust from domestic to export and export to domestic.

Speaker #3: Of course, with long-term customers where we have a minimum base tonnage, we will not—you know—we will not go below that. But broadly, Suresh, I think in Q1, if I recall correctly, about 15 to 18 percent domestic sales—is that right?

Speaker #7: Yeah, yeah. Around 19 percent we have sold in domestic.

Suresh Chigurupalli: Around 19% we have sold in domestic.

Speaker #3: Yeah. So that is something that you know, we can cater to as I as I said, our I mean, not from a point of view of price because clearly there is very little duty protection and therefore by and large, there is you know, there is parity between between domestic and international prices.

Subhrakant Panda: That is something that we can cater to, as I said. Not from a point of view of price, because clearly there is very little duty protection and therefore by and large, there is parity between domestic and international prices. The only difference is the timing of confirming an order. Both from a domestic consumer point of view as well as some of our export consumers, customers, there is interest in picking up tonnage. We don't, as I said repeatedly, we don't see any concern on that front.

Speaker #3: The only only difference is that timing of confirming an order. But so we I mean, both from a from a domestic consumer point of view as well as some of our export consumers, customers, there is you know, there is interest in in picking up tonnage.

Speaker #3: So, as I have said repeatedly, we don't see any concern on that front.

Speaker #7: Sir, on slide number 10, it speaks about our EBITDA cost per metric ton rising from close to ₹82,000 to ₹86,000. So, as you mentioned, the prices moved up and the other raw material prices also increased.

Saket Kapoor: Slide number 10, it speaks about our EBITDA cost per metric ton rising from closer to $82,000 ton to $86,000. As you mentioned that the prices moved up and the other RM prices also improved. Taking into account the current setup, what should be the cost of per metric ton trajectory be shaping up going ahead? Or what kind of flexibility trend can we expect on this front?

Speaker #7: So, taking into account the current setup, what should be the cost per metric ton trajectory shaping up going ahead, or what kind of inflationary trend can we expect on this front?

Subhrakant Panda: Broadly, I think Sorry. I've actually a bit of a cold and fever, that is why I'm coughing. My apologies. Broadly, I think the biggest advantage for us is the fact that chrome ore is sourced from our captive mines because that is the biggest input to the cost of production. That is by and large, under control. Only if royalty prices move up a little bit, that has an impact. Secondly, as far as met coke and all that is concerned, little bit up and down as it does happen. As I said, on account of currency depreciation in Colombia, on account of ferrochrome prices staying high. All of that sort of translates into input costs moving up a little bit. That is the classical time lag as one of the earlier investors asking the question.

Speaker #3: See, broadly, I think what is—sorry, I actually have a bit of a cold and fever, but that's why I have coffee. My apologies.

Speaker #3: So broadly, I think you know, the biggest advantage for us is the fact that chrome ore is sourced from our captive mines, because that is the biggest, you know, input to the cost of production.

Speaker #3: So that is, by and large, under control. And I mean, only if royalty prices move up a little bit, that has an impact.

Speaker #3: Secondly, as far as METCOC and all that is concerned, a little bit of up and down does happen. As I said, on account of currency depreciation in Colombia, on account of ferrochrome prices staying high, all of that sort of translates through into, you know, input costs moving up a little bit.

Speaker #3: But you know, that is the classical time lag, as one of the earlier investors was asking the question. That classical time lag between stainless steel, ferrochrome, and chrome ore, and metallurgical coke—except, in our case, chrome ore is not impacted.

Subhrakant Panda: That classical time lag between stainless steel, ferrochrome and chrome ore and metallurgical coke, except in our case, chrome ore is not impacted, but other things move up and down a little bit.

Speaker #3: But other things move up and down a little bit.

Speaker #1: Thank you. Mr. Kapoor, please rejoin the queue for more questions. The next question comes from the line of Anishika Patel, an individual investor. Please go ahead.

Operator: Thank you. Mr. Kapoor, please rejoin the queue for more questions. Next question comes from the line of Anishika Patel, an individual investor. Please go ahead. Ms. Patel, please go ahead.

Speaker #1: Mr. Patel, please go ahead. Mr. Patel? Yes, please go ahead. Mr. Patel, we cannot hear you. Can you come on the line and speak?

Anishika Patel: Hello.

Operator: Ms. Patel? Yes, please go ahead. Ms. Patel, we cannot hear you. Can you come in the range and talk? Since there's no reply from the line of Ms. Patel, we'll move to the next. That is from the line of Harsh Diwakar, an individual investor. Please go ahead.

Speaker #1: Since there is no reply from the line of Mr. Patel, we'll move to the next. That is from the line of Harsh Diwakar, an individual investor.

Speaker #1: Please go ahead.

Speaker #5: Yeah.

Harsh Diwakar: Yeah. Hello, sir. Congratulations for the best record results regarding the revenue and the profit. Hello?

Speaker #7: Hello, sir. Congratulations on the record results regarding revenue and profit. Hello.

Speaker #3: Yeah, thank you.

Subhrakant Panda: Yeah. Thank you.

Speaker #7: Yeah, yeah. So I had one or two questions regarding some issues we had—specifically, the impact of the Middle East war due to the USA and Iran.

Harsh Diwakar: Yeah. I had one or two questions regarding some coke things. We had been impacted by the Middle East war due to the US, Iran. How does it impact the coke consumption and prices?

Speaker #7: How did it impact the coke convention and prices? Along with that, I wanted to—sorry.

Subhrakant Panda: Much as I clarified just a couple of questions ago that no impact from as far as the West Asia crisis is concerned because we neither import anything or sell anything there. Yet certainly freight costs for domestic and otherwise have gone up a little bit, but nothing significant.

Speaker #3: But as I clarified just a couple of questions ago, there is no impact as far as the West Asia crisis is concerned, because we neither import anything from there nor sell anything there.

Speaker #3: But yes, certainly, certainly freight costs for domestic and otherwise have gone up a little bit, but nothing significant.

Speaker #7: Okay. And one more question. What is the specific—like, what's the coke consumption pattern of Ferrochrome and ore consumption pattern of Ferrochrome as of now?

Harsh Diwakar: Okay. One more question. What is the specific, like what's the coke consumption pattern of ferrochrome and ore consumption pattern of ferrochrome as of now?

Speaker #3: So broadly, that's 0.65 kilograms of coke and, broadly, 2.5 tons of chrome ore.

Subhrakant Panda: Broadly, that 0.65 kilograms of coke and broadly 2.5 tons of chrome ore.

Speaker #1: Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of the question and answer session. I now hand the conference over to Mr. Subrahmanyan Panda, PMD, for closing comments.

Operator: Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I now hand the conference over to Mr. Subhrakant Panda, the MD, for closing comments.

Speaker #3: So thank you very much for taking time out to discuss and is there are any questions that you know, we have not been able to answer or if there were others in the queue who would like to you know, like to reach out, please please reach out to investor relations and we will certainly make an attempt to to revert to you.

Subhrakant Panda: Thank you very much for taking time out to discuss. If there are any questions that we have not been able to answer or if there were others in the queue who would like to reach out, please reach out to investor relations and we will certainly make an attempt to revert to you. Going ahead, we are eagerly waiting for the first furnace at KNR 1 to start producing later this month. We will, of course, alert, give an update about that. Secondly, of course, the second furnace we are expecting by end September, early October to come online. We will keep sharing regular updates. Thank you.

Speaker #3: And going ahead, we are, you know, eagerly waiting for the first one at KNR1 to start producing later this month. We will, of course, alert that.

Speaker #3: Alert given; update about that. And secondly, of course, the second furnace we are expecting by end of September or early October to come online. So we will keep sharing regular updates.

Speaker #3: Thank you.

Speaker #1: Thank you. On behalf of Indian Metals and Ferro Alloys Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Saket Kapoor: Thank you. On behalf of Indian Metals and Ferro Alloys Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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