Q1 2027 National Aluminium Co Ltd Earnings Call

August 3, 2026

Speaker #1: Ladies and gentlemen, good afternoon, and welcome to the Q1 FY27 earnings call of National Aluminium Company Limited (NALCO), hosted by Systematix Group. 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.

Shalender: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings call of National Aluminium Company Limited, NALCO conference call hosted by Systematix Group. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Ms. Shweta Dikshit from Systematix Group. Thank you and over to you.

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings call of National Aluminium Company Limited, NALCO conference call hosted by Systematix Group. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Ms. Shweta Dikshit from Systematix Group. Thank you and over to you.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Ms. Shweta Dixit from Systematics Group.

Speaker #1: Thank you, and over to you.

Speaker #2: Thank you, Shalin. Good morning, everyone. On behalf of Systematics, we welcome you to the Q1 FY27 earnings conference call of NALCO Limited. I would like to thank the management for giving us the opportunity to host this call, and I now hand over to Mr. Bharat Sahu, Company Secretary, NALCO, to discuss the company's financial and operational performance.

Shweta Dikshit: Thank you, Shalender. Good morning, everyone. On behalf of Systematix, we welcome you to the Q1 FY 2027 earnings conference call of NALCO Limited. I would like to thank the management for giving us the opportunity to host this call. I now hand over to Mr. Bharat Sahu, Company Secretary, NALCO, to discuss the company's financial and operational performance. Over to you, sir.

Speaker #2: Over to you, sir.

Speaker #3: Namaste. Good morning. Warm greetings from NALCO, a Navratna CPSE under the Ministry of Mines. Let me, at the outset, introduce our functional directors, who are present on this earnings call.

Bharat Kumar Sahu: Namaste. Good morning. Warm greetings from NALCO, Navratna CPSE under Ministry of Mines. Let me at the outset introduce our functional directors sitting in this earnings call. Sitting in the middle is our CMD, Shri Brijendra Pratap Singh.

Speaker #3: In the middle is our CMD, Sri Brijendra Pratap Singh.

Speaker #4: Good morning.

Brijendra Pratap Singh: Good morning.

Speaker #3: And sitting next to him is Director of Finance, Shri Abhay Kumar Behuria.

Bharat Kumar Sahu: Sitting next to him is Director Finance, Shri Abhay Kumar Behuria.

Speaker #4: Namaskar.

Abhay Kumar Behuria: Namaskar.

Speaker #3: And sitting next to him is Dr. Tapas Kumar Patnaik, our Director of HR.

Bharat Kumar Sahu: Sitting next to him is Dr. Tapas Kumar Pattanayak, our Director HR.

Speaker #5: Good morning to all.

Tapas Kumar Pattanayak: Good morning to all.

Speaker #3: Sitting next to me is our Director of Production, Shri Pankaj Kumar Sharma, sir. And I am Bharat Sahu, the Company and Compliance Officer.

Bharat Kumar Sahu: Sitting next to me is our Director of Production, Shri Pankaj Kumar Sharma sir. I am Bharat Kumar Sahu, the Company Secretary and Compliance Officer. On 31 July evening, NALCO Board considered and approved the financial results for the Q1 of our FY 2027. NALCO has already registered a robust performance in the Q1. The presentation is already uploaded in the website of the stock exchange and also on the website of the company. It is a robust performance, I will request our CMD sir just to highlight some of the key financials of this Q1, then we will start taking the calls. The questions from your side, please.

Speaker #3: On 31st July, evening, NALCO Board considered and approved the financial results for the first quarter of our FY27. NALCO has already registered a robust performance in Q1, and the presentation is already uploaded on the website of the stock exchange, as well as on the website of the company.

Bharat Kumar Sahu: The presentation is already uploaded in the website of the stock exchange and also on the website of the company. It is a robust performance, I will request our CMD sir just to highlight some of the key financials of this Q1, then we will start taking the calls. The questions from your side, please.

Speaker #3: It is a robust performance, and I will request our CMD, sir, to just highlight some of the key financials of this Q1. And then we'll start taking the calls and questions from your side, please.

Speaker #4: Good morning. At the outset, our performance for Q1—the presentation is already loaded—but I would like to give a few highlights of the Q1 performance.

Brijendra Pratap Singh: Good morning. At the outset, our performance for the Q1, already the presentation is loaded, I would like to give few highlights of the Q1 performance. Q1, our overall total income, which grew if you compare to previous year Q1, from INR 3,930 crore to INR 5,400 crore, around 39% growth Q1 to Q1. Same if you see CPLY. Earnings, if you see PBT grew by around 88%. EBITDA grew by around 78%. There has been a substantial growth both in revenue collection, both in profitability of the company. If you see the highlights of the performance, physical performance also has been very good. Whatever targets we have set in the beginning of the year, almost all targets we have achieved. We have achieved best ever production in bauxite, in hydrate production, and in power generation.

Speaker #4: Our overall total income grew, if you compare Q1 to the previous year, from ₹3,930 crores to ₹5,400 crores—around 39% growth Q1 to Q1, same if you see CPLY. Earnings, if you see, PBT grew by around 88%, EBITDA grew by around 78%.

Speaker #4: So, there has been substantial growth both in revenue collection and in profitability of the company. If you see the highlights of the performance, physical performance also has been very good. Whatever targets we set at the beginning of the year, we have achieved almost all targets.

Brijendra Pratap Singh: There has been a substantial growth both in revenue collection, both in profitability of the company. If you see the highlights of the performance, physical performance also has been very good. Whatever targets we have set in the beginning of the year, almost all targets we have achieved. We have achieved best ever production in bauxite, in hydrate production, and in power generation.

Speaker #4: We have achieved best-ever production in bauxite, in hydrate production, and wind power, in power generation, as far as quarter one progress is concerned.

Brijendra Pratap Singh: As far as Q1 progress is concerned, best Q1 in all these areas. Financially, if you see, best quarter performance we have done as far as our revenue generation is concerned, is the ever best quarter we have done. As far as profitability is concerned, best Q1 profitability we have achieved. The major contributors have been, of course, our internal, if you see, improvement in the volumes of production, whatever targets we have taken, almost we have reached to the peak of the volume in all the areas. If you see refinery, if you see our metal production, all the areas. We have targeted at least 5% to 10% more than the capacity utilization, whatever we are going to do, more than the rated capacity we have targeted this year.

Speaker #4: Best quarter one in all these areas. Financially, if you see, best quarter performance we have done as far as our revenue generation is concerned—it is the ever-best quarter we have done.

Speaker #4: As far as profitability is concerned, this is the best Q1 profitability we have achieved. The major contributors have been, of course, our internal improvements. If you see, in terms of the improvement in volumes of production, whatever targets we have set, we have almost reached the peak of volume in all areas.

Speaker #4: If you see refinery, if you see our metal production, all the areas, we have targeted at least 5% to 10% more than the capacity utilization. Whatever we are going to do, more than the rated capacity, we have targeted this year.

Brijendra Pratap Singh: If you see refinery, if you see our metal production, all the areas. We have targeted at least 5% to 10% more than the capacity utilization, whatever we are going to do, more than the rated capacity we have targeted this year. As far as other areas are concerned, we are also targeting to reduce our cost, increase our efficiencies, which is in our hand, that is increasing volumes and reducing the cost. We are also going for some value-add products for our future or future expansions.

Speaker #4: As far as other areas are concerned, we are also targeting to reduce our cost and increase our efficiencies, which is in our hands—that is, increasing volumes and reducing the cost.

Brijendra Pratap Singh: As far as other areas are concerned, we are also targeting to reduce our cost, increase our efficiencies, which is in our hand, that is increasing volumes and reducing the cost. We are also going for some value-add products for our future or future expansions. As far as expansion is concerned, fifth stream refinery is going to come this year. Also we are targeting to expand our smelter capacity, for which we are going for CPR mixing capacity, doing it with the various milestones, which we will be discussing in the presentation. Once again, thank you, Systematix Group, for organizing this conference call.

Speaker #4: We have also gone for some valued products for our future, our future expansions. As far as expansion is concerned, the 1.5 refinery is going to come this year.

Brijendra Pratap Singh: As far as expansion is concerned, fifth stream refinery is going to come this year. Also we are targeting to expand our smelter capacity, for which we are going for CPR mixing capacity, doing it with the various milestones, which we will be discussing in the presentation. Once again, thank you, Systematix Group, for organizing this conference call.

Speaker #4: And also, we are targeting to expand our smelter capacity, for which we are going for CPR making, going ahead with the various milestones, which we will be discussing in the presentation.

Speaker #4: So, once again, thank you, Systematics Group, for organizing this conference call.

Speaker #2: Yes.

Bharat Kumar Sahu: Yes. Ma'am, over to you. We can now request all our esteemed participants to come forward with their questions.

Speaker #3: Ma'am, over to you. We can now request all our esteemed participants to come forward with their questions.

Speaker #1: Thank you. Thank you very much. We will now begin the question and answer session.

Shalender: Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one. Participants are requested to use handsets while asking a question. We will wait for a moment while the questions come in. The first question is from the line of Mr. Amit Lahoti from Aditya Birla Capital. Please go ahead.

Operator: Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one. Participants are requested to use handsets while asking a question. We will wait for a moment while the questions come in. The first question is from the line of Mr. Amit Lahoti from Aditya Birla Capital. Please go ahead.

Speaker #2: Question and answer session.

Speaker #1: Anyone who wishes to ask a question may press star and one. Participants are requested to use handsets while asking a question. We will wait for a moment.

Speaker #1: While the question queue assembles, the first question is from the line of Mr. Amit Lahoti from Aditya Birla Capital. Please go ahead.

Speaker #5: Amina, refine the how is the commissioning process moving there and can we still produce 300,000 tons in the current fiscal?

Amit Lahoti [Head: Alumina refinery. How is the commissioning process moving there, and can we still produce 300,000 tons in the current fiscal?

Amit Lahoti: Alumina refinery. How is the commissioning process moving there, and can we still produce 300,000 tons in the current fiscal?

Speaker #4: Our 15 refinery, the current—we have, from June onwards, started the commissioning of a few of them. Decommissioning activities we have started. Few of the packages, almost around 50—more than 50 packages—are there.

Brijendra Pratap Singh: Our fifth stream refinery, June onwards, we have started the commissioning of few of that. Commissioning activities we have started. Few of the packages, almost around 50, more than 50 packages are there. Few of the packages, mechanical completion already has been done, and the trial of those packages are under process. Few of the packages are left out. Our target is by September end, we have to complete mechanical completion of all these packages. Do the integrated trial first, that is the water run needs to be done within the packages. After that, we start the actual production process, which will take maybe 3 to 4 months to stabilize and reach to the level of 60%, 70%. This year, our target was that we'll be producing around 2 lakh tons of alumina from this refinery.

Speaker #4: For a few of the packages, mechanical completion has already been done, and the trial of those packages is under process. A few packages are left out.

Speaker #4: Our target is, by the end of September, we have to complete the mechanical completion of all these packages. Do the integrated trial first—that is, the water run is to be done within the packages.

Brijendra Pratap Singh: Our target is by September end, we have to complete mechanical completion of all these packages. Do the integrated trial first, that is the water run needs to be done within the packages. After that, we start the actual production process, which will take maybe 3 to 4 months to stabilize and reach to the level of 60%, 70%.

Speaker #4: And after that, we start the actual production process, which will take maybe three to four months to stabilize and reach to the level of 60–70 percent.

Speaker #4: This year, our target was that we'll be producing around 200,000 tons of alumina from this refinery. So even if we start the actual production from November or December onwards, we'll still be able to achieve those kinds of figures.

Brijendra Pratap Singh: This year, our target was that we'll be producing around 2 lakh tons of alumina from this refinery. Even if we start the actual production from November, December onwards, after that also we'll be able to achieve those kinds of figures from the fifth stream refinery, that is around 2 lakh tons of alumina production.

Brijendra Pratap Singh: Even if we start the actual production from November, December onwards, after that also we'll be able to achieve those kinds of figures from the fifth stream refinery, that is around 2 lakh tons of alumina production.

Speaker #4: From the first-time refinery, that is around 200,000 tons of alumina production.

Speaker #5: Right. So why has there been a delay? Because earlier we were planning to start producing from June onwards. So, as we are seeing around a six-month delay, is there any reason for it?

Amit Lahoti [Head: Right. Why has there been a delay? Because earlier we were planning to start producing from June onwards. As we are seeing around 6 months of a delay, any reason around it?

Amit Lahoti: Right. Why has there been a delay? Because earlier we were planning to start producing from June onwards. As we are seeing around 6 months of a delay, any reason around it?

Brijendra Pratap Singh: We were planning to start the commissioning activity from June onwards, and after that complete it in next 3 to 4 months. Of course, the mechanical completion, which was supposed to be done by June, July, may be getting delayed by 2, 3 months. This is a big project. Big project, it is very difficult to exactly pinpoint the date of commissioning and all that, and it's a chemical process plant. Now, maybe by September end, we are targeting the mechanical completion will be there, and we'll start. There is almost 2, 3 months delay is there.

Speaker #4: We were planning to start the commissioning activity from June onwards, and after that, complete it in the next three to four months. Of course, the mechanical completion, which was supposed to be done by June or July, may be getting delayed by two or three months.

Speaker #4: So this is a big project—a big project. It is very difficult to exactly pinpoint the date of commissioning and all that, and it's a chemical process plant.

Speaker #4: So now, maybe by September end, we are targeting that mechanical completion will be there and we'll start. There is almost a two to three months delay, not a very huge delay.

Speaker #5: Sure. Okay. My second question is on employee cost, which has gone down below ₹1,600 crore if we annualize the Q1 number of ₹395 crore. So is it part of the superannuation plan that you guided in Q3 FY26, where you were going to affect senior people—around 200 to 250—with a cost saving of ₹70 to ₹80 crore?

Amit Lahoti [Head: Sure. Okay. My second question is on employee cost, which has gone down below INR 1,600 crore if we annualize Q1 number of INR 395 crore. Is it part of the superannuation plan that you guided in Q3 FY 2026 that you were going to affect senior people of around 200 to 250 with a cost saving of INR 70 to 80 crore? Is it same which is coming now?

Amit Lahoti: Sure. Okay. My second question is on employee cost, which has gone down below INR 1,600 crore if we annualize Q1 number of INR 395 crore. Is it part of the superannuation plan that you guided in Q3 FY 2026 that you were going to affect senior people of around 200 to 250 with a cost saving of INR 70 to 80 crore? Is it same which is coming now?

Speaker #5: So, is it the same as what is coming now?

Speaker #4: Good morning. Myself, Director of Finance. Is that the right question—why is our employee cost going down? If you see the CTC of our last year 2026, our average CTC was around ₹36 lakhs.

Abhay Kumar Behuria: Good morning. Myself Abhay Behuria, Director of Finance. It is a right question, why our employee cost is going down. If you see the CTC of our last year, 2026, our average was around INR 36 lakh. In this quarter, it is around INR 33 lakh. There is a reduction of INR 3 lakh almost. That is because, rightly you have said, that is because of superannuation of the high paid employees and induction of the employees at the entry level. That is the one reason. Second reason is we have made some provisions last year towards retirement benefits. That is provision towards actual valuation of leave, gratuity, and which was on the higher side. This quarter we need not to provide that. Another area is PRP. PRP we have made a provision last year, which is now required to be provided this year in that ratio.

Speaker #4: And this quarter, it is around 33 lakhs. There is a reduction of 3 lakhs, almost. That is because, as you rightly said, it is due to the superannuation of high-paid employees.

Speaker #4: And induction of the employees at the entry level—that is one reason. The second reason is, we have made some provisions last year towards retirement benefits. That is, provisions towards taxable valuation of leave, gratuity, which was on the higher side.

Abhay Kumar Behuria: That is the one reason. Second reason is we have made some provisions last year towards retirement benefits. That is provision towards actual valuation of leave, gratuity, and which was on the higher side. This quarter we need not to provide that. Another area is PRP. PRP we have made a provision last year, which is now required to be provided this year in that ratio. That has reduced our cost. We expect that this trend will continue in the next 3 quarter also.

Speaker #4: This quarter, we do not need to provide that. Another area is ERP. For ERP, we made a provision last year, which is not required to be provided this year in that ratio.

Speaker #4: That has reduced our cost, and we expect that this schedule will continue in the next three quarters also.

Abhay Kumar Behuria: That has reduced our cost. We expect that this trend will continue in the next 3 quarter also.

Speaker #5: Okay, so for the full year, we can still see this number around ₹1,600 crore. Is that right?

Amit Lahoti [Head: Okay. For the full year, we can still see this number around INR 1,600 crores. That is right?

Amit Lahoti: Okay. For the full year, we can still see this number around INR 1,600 crore. That is right?

Speaker #4: Right, right. In the latter part of the year, in the last quarter—Q4—there may be some impact from the pay revision, because from 1st January 2027, the pay revision is due.

Abhay Kumar Behuria: Right. In the latter part of the year, in the last quarter, Q4, there may be some impact of pay revision because 1 January 2027, pay revision is due. The last quarter, there may be some increase of 15% additional. Otherwise, two quarters, Q2 and Q3, the cost will be in this line only.

Speaker #4: So, in the last quarter, there may be an increase of 15 percent additionally. Otherwise, in the second and third quarters, the cost will remain in this line only.

Speaker #5: Understood. Thank you so much.

Amit Lahoti [Head: Understood. Thank you so much.

Amit Lahoti: Understood. Thank you so much.

Speaker #1: Thank you, sir. Next question is from the line of Mr. Aditya Valika from Axis Securities. Please go ahead.

Shalender: Thank you, sir. Next question is from the line of Mr. Aditya Walekar from Axis Securities. Please go ahead.

Operator: Thank you, sir. Next question is from the line of Mr. Aditya Walekar from Axis Securities. Please go ahead.

Speaker #2: Okay. My question is with respect to our alumina sales volume. So, for FY27, you have guided 25 lakh tons of alumina production, but is there any guidance in terms of sales volume? Because that number fluctuates a lot.

Aditya Walekar: My question is with respect to our alumina sales volume. For FY 2027 you have guided 25 lakh tons of alumina production, anything in terms of sales volume? Because that number fluctuates a lot. If you can guide on the full year volumes for FY 2027.

Aditya Welekar: My question is with respect to our alumina sales volume. For FY 2027 you have guided 25 lakh tons of alumina production, anything in terms of sales volume? Because that number fluctuates a lot. If you can guide on the full year volumes for FY 2027.

Speaker #2: So, if you can guide on the full-year volumes for FY27.

Brijendra Pratap Singh: This financial year, last year we sold around 14 lakh tons of alumina. This year we are targeting 16 lakh. Whatever 2 lakh extra alumina we are trying to produce from fifth stream, that will be added to our sales volume. 2 lakh extra we'll be selling this year.

Speaker #4: In the last financial year, we sold around 14 lakh tons of alumina. This year we are targeting 16 lakh tons. Whatever extra 2 lakh tons of alumina we produce over last year, that will be added to our sales value.

Speaker #4: So, 2 lakh extra we’ll be selling this year.

Speaker #2: Yeah, understood. And the second part is—since we have seen now that the aluminium prices have come down, going forward in Q2, do you foresee any raw material cost pressure which will persist? Because we have seen in the earlier quarter, you had guided that there is some cost inflation on CPQ and other raw materials.

Aditya Walekar: Yeah, understood. The second part is, we have seen now that the aluminum prices have come down. Going forward in Q2, do you foresee any raw material cost pressure which will persist? Because we have seen that in the earlier quarter you have guided that there is some cost inflation on CP coke, lump, and other raw materials. Will it impact our margins going forward as the aluminum prices have cooled down?

Aditya Welekar: Yeah, understood. The second part is, we have seen now that the aluminum prices have come down. Going forward in Q2, do you foresee any raw material cost pressure which will persist? Because we have seen that in the earlier quarter you have guided that there is some cost inflation on CP coke, lump, and other raw materials. Will it impact our margins going forward as the aluminum prices have cooled down?

Speaker #2: So, will it impact our margins going forward as the aluminium prices have cooled down?

Speaker #4: Aluminium prices you see, in the first quarter average, we got around $3,500, $3,600, or $3,700 on the LME. Now, it has come down to around $3,200.

Brijendra Pratap Singh: The aluminum prices you see in Q1 average we got around 3,500, 3,600, or 3,700 of LME. Now it has come down to around 3,200. Raw material prices, of course, has increased. You see caustic soda prices, last year average was around 42,000. In Q1, our expenditure was around 45,000 per ton. In Q2 it will become around 49,000. Of course, caustic soda prices are going to go up by around 3,000 to 4,000 as compared to Q1. CP coke prices also has gone up. 44,000 was last year, it has gone to 66,000 to 70,000. These are the two major areas and also HFO. HFO price, which was 46,000 last year, it has gone up to 75,000. This has increased our overall cost of production by around INR 15,000 to 16,000 per ton of metal.

Speaker #4: Raw material prices, of course, have increased. You see, caustic soda prices last year averaged around ₹42,000. In Q1, our expenditure was around ₹45,000 per ton, and in Q2 it will become around ₹49,000.

Speaker #4: Of course, caustic soda prices are going to go up by around ₹3,000 to ₹4,000 as compared to Q1. CPCO prices have also gone up. ₹53,000 was ₹44,000 last year; it has gone to ₹66,000 to ₹70,000.

Brijendra Pratap Singh: 44,000 was last year, it has gone to 66,000 to 70,000. These are the two major areas and also HFO. HFO price, which was 46,000 last year, it has gone up to 75,000. This has increased our overall cost of production by around INR 15,000 to 16,000 per ton of metal. These three areas, caustic soda, CP coke, and HFO. These are the three areas where our cost and also aluminum fluoride by some amount. Of course, around 10% to 15% increase in the input raw material prices are there, which is increasing our cost by around INR 15,000 to INR 16,000 metal prices.

Speaker #4: These are the two major areas, and also HFO. HFO price, which was ₹46,000 last year, has gone up to ₹75,000. So this has increased our overall cost of production by around ₹15,000 to ₹16,000 per ton of metal.

Speaker #4: So these three areas—caustic soda, CPCO, and HFO—these are the three areas where our costs have, and also aluminium fluoride by some amount.

Brijendra Pratap Singh: These three areas, caustic soda, CP coke, and HFO. These are the three areas where our cost and also aluminum fluoride by some amount. Of course, around 10% to 15% increase in the input raw material prices are there, which is increasing our cost by around INR 15,000 to INR 16,000 metal prices.

Speaker #4: So, of course, around 10 to 15 percent increase in the raw material prices is there, which is increasing our cost by around Rs. 15,000 to 16,000 in metal prices.

Speaker #2: And so anything which can offset that, I mean, we have seen just recently alumina prices have increased to $350 per ton. And then, is there any scope to offset that with lower—

Aditya Walekar: Anything which can offset that means we have seen just recently alumina prices have increased up to $350 per ton. Is there any scope to offset that with lower coal power cost, or you think that the margins could take slight hit?

Aditya Welekar: Anything which can offset that means we have seen just recently alumina prices have increased up to $350 per ton. Is there any scope to offset that with lower coal power cost, or you think that the margins could take slight hit?

Speaker #2: Whole power cost or you think that the margins could take slight hit?

Speaker #4: Alumina prices, what we expected in the beginning of the month or year was around $310 to $320. But of late, we are getting around $370 alumina prices.

Brijendra Pratap Singh: Alumina prices, what we expected in the beginning of the month here was around $310 to $320. Of late we are getting around $370 alumina prices. That is because in Russia also Rusal and China, two of the refineries, due to red mud issues, they've reduced the production. The bauxite prices in New Guinea has increased slightly. That's why the alumina prices which we were expecting that it will be somewhere around $320, we are getting around $370. That will offset somewhat raw material, what is increased in the raw material costs. Because raw material had given us an expenditure burden in Q1 of around INR 120 crore.

Speaker #4: That is because in Russia, also Rusal, and in China, two of the refineries, due to red mud issues, they have reduced the production. The bauxite prices in New Guinea have increased slightly.

Speaker #4: So that's why the alumina prices which we were expecting that it will be somewhere around 320 dollar we are getting around 370 dollars. So that will offset somewhat raw material what is increased in the raw material cost because raw material has given us an expenditure burden in Q1 of around 120 crore.

Brijendra Pratap Singh: That's why the alumina prices which we were expecting that it will be somewhere around $320, we are getting around $370. That will offset somewhat raw material, what is increased in the raw material costs. Because raw material had given us an expenditure burden in Q1 of around INR 120 crore.

Speaker #4: Rs 200 crore. Rs 230 crore extra due to the increase in raw material prices. So, alumina prices are the prices which we are expecting—if we remain at the level of Rs 3700—then that will offset the input raw material cost.

Abhay Kumar Behuria: INR 200 crore.

Brijendra Pratap Singh: INR 200 crore.

Abhay Kumar Behuria: INR 230 crore.

Abhay Kumar Behuria: INR 230 crore in extra due to increase in the raw material prices. Alumina prices are the prices which we are expecting, if we remain at the level of $370, then that will offset the input raw material cost.

Brijendra Pratap Singh: INR 230 crore in extra due to increase in the raw material prices. Alumina prices are the prices which we are expecting, if we remain at the level of $370, then that will offset the input raw material cost.

Speaker #2: Understood. Understood, sir. That's it. That's it from us.

Aditya Walekar: Understood, sir. That's it from our side.

Aditya Welekar: Understood, sir. That's it from our side.

Speaker #1: Thank you. The next question is from the line of Pinakin from HSBC. Please go ahead.

Shalender: Thank you. The next question is from the line of Pinakin from HSBC. Please go ahead.

Operator: Thank you. The next question is from the line of Pinakin from HSBC. Please go ahead.

Speaker #3: Thank you very much, sir, for this opportunity. I have a few questions. The first is, you highlighted $370 per ton as your alumina realization currently.

[Analyst] (HSBC): Thank you very much, sir, for this opportunity. Sir, I have few questions. The first is you highlighted $370 per ton is your alumina realization you're getting currently. What was the alumina realization you got in Q1, sir?

Pinakin Parekh: Thank you very much, sir, for this opportunity. Sir, I have few questions. The first is you highlighted $370 per ton is your alumina realization you're getting currently. What was the alumina realization you got in Q1, sir?

Speaker #3: And what was the alumina realization in Q1, sir?

Brijendra Pratap Singh: Can you repeat the question? Just last line.

Speaker #4: Yes. Can you repeat the question? Yeah, just the last line.

Speaker #3: The alumina realization in Q1, quarter one.

[Analyst] (HSBC): The alumina realization in Q1, quarter one.

Pinakin Parekh: The alumina realization in Q1, quarter one.

Speaker #4: In Q1, our average realized price was around $323 per ton of alumina.

Brijendra Pratap Singh: Q1.

Abhay Kumar Behuria: Q1, our average realization was around INR 323 alumina.

Speaker #3: Yeah. And Q1 cost of alumina, sir. Will Q2 cost be higher or flat?

[Analyst] (HSBC): Q1 cost of alumina, sir, will Q2 cost higher or flat?

Pinakin Parekh: Q1 cost of alumina, sir, will Q2 cost higher or flat?

Abhay Kumar Behuria: A little louder.

Abhay Kumar Behuria: A little louder. Voice is cracking. It's not clear. Not very clear.

Speaker #4: A little louder. We are not able to hear. It's not clear. Not very clear.

Brijendra Pratap Singh: Voice is cracking.

Abhay Kumar Behuria: It's not clear.

Brijendra Pratap Singh: Not very clear.

Speaker #3: One second.

[Analyst] (HSBC): One second. Alumina cost of production, sir, will it be higher in Q2 versus Q1?

Pinakin Parekh: One second. Alumina cost of production, sir, will it be higher in Q2 versus Q1?

Speaker #4: Alumina cost of production, sir—will it be higher in quarter two versus quarter one? In quarter one, our cost of production—if you see—are you talking about alumina or metal?

Abhay Kumar Behuria: Q1, our cost of production, if you see. Are you talking about alumina or metal?

Speaker #3: Alumina. Alumina.

[Analyst] (HSBC): Alumina.

Pinakin Parekh: Alumina.

Brijendra Pratap Singh: Alumina cost normally range between INR 21,000 to 22,000. Last quarter, it is around within that range only. The second quarter, since we have observed all the input cost increase in Q1, similar pattern of cost price will remain in the next quarter. We don't think our cost will be increased. Rather, our cost will be within that range only, around INR 21,000 to 22,000 per ton of alumina. Rather, we'll be getting advancement in the price because CMD sir has already explained that the next quarter we are going to get incremental price of around $50 from alumina.

Abhay Kumar Behuria: Alumina cost normally range between INR 21,000 to 22,000. Last quarter, it is around within that range only. The second quarter, since we have observed all the input cost increase in Q1, similar pattern of cost price will remain in the next quarter. We don't think our cost will be increased. Rather, our cost will be within that range only, around INR 21,000 to 22,000 per ton of alumina. Rather, we'll be getting advancement in the price because CMD sir has already explained that the next quarter we are going to get incremental price of around $50 from alumina.

Speaker #4: Our alumina cost normally ranges between 21,000 to 22,000. Last quarter, it was around within that range only. And for the second quarter, since we have observed all the input cost increases in the first quarter, a similar pattern of cost price will remain in the next quarter.

Speaker #4: And we don't think our costs will increase. Rather, our costs will remain within that range—around 21,000 to 22,000 per ton of alumina.

Speaker #4: And rather, we'll be getting an advantage in the price because, as CNG sir has already explained, in the next quarter we are going to get an incremental price of around $50 from alumina.

Speaker #3: Got it, sir. Got it. My second question is, sir, you highlighted a metal cost of production increase of ₹15,000 to ₹16,000 per ton. Was that cost of production increase already seen in Q1, or will that increase come in Q2 versus Q1?

[Analyst] (HSBC): Got it. My second question is, sir, you highlighted metal cost of production increase of INR 15,000 to 16,000 a ton. Was that cost of production increase already seen in Q1, or will that increase come in Q2 versus Q1?

Pinakin Parekh: Got it. My second question is, sir, you highlighted metal cost of production increase of INR 15,000 to 16,000 a ton. Was that cost of production increase already seen in Q1, or will that increase come in Q2 versus Q1?

Speaker #4: No, it is already. It was already expected because we know that raw metal prices are going to go up. These three raw materials are caustic soda, HFO, and CPCO.

Brijendra Pratap Singh: No, it was already expected because we are knowing that raw material prices are going to go up. These three raw materials, that is caustic soda, HFO, and CP coke. That was almost expected. The similar kind of cost will continue in Q2 also.

Speaker #4: So, that was almost expected, and a similar kind of cost will continue in Q2 also.

Speaker #3: Okay, similar kinds of costs will continue. Got it, sir. So, my third question is: you highlighted LME prices, which have moved. Now, how are the domestic aluminum premiums? Because you highlighted previously that they change with a lag.

[Analyst] (HSBC): Okay. Similar kind of cost will continue. Got it, sir. Sir, my third question is, you highlighted LME prices which have moved. How are the domestic aluminum premiums because you had highlighted previously that they change with a lag. Have they increased in recent times or you see the premiums increasing in the domestic sales?

Pinakin Parekh: Okay. Similar kind of cost will continue. Got it, sir. Sir, my third question is, you highlighted LME prices which have moved. How are the domestic aluminum premiums because you had highlighted previously that they change with a lag. Have they increased in recent times or you see the premiums increasing in the domestic sales?

Speaker #3: So, have they increased in recent times, or do you see the premiums increasing in the domestic sales?

Speaker #4: Premium has increased. Earlier, the premium was around $60. Now, it has gone up to around—we did the tender last—around $110.

Brijendra Pratap Singh: Sir, premium has increased. Our earlier premium was around $60. Now it has gone up to around, we did the tender last around $110. Premium has increased by around $50.

Speaker #4: $110. Premium has increased by around $50.

Speaker #3: Got it. And do you expect this to increase further, sir—the domestic?

[Analyst] (HSBC): Got it. Do you expect this to increase further, sir? The domestic premium.

Pinakin Parekh: Got it. Do you expect this to increase further, sir? The domestic premium.

Speaker #4: No, no. That premium increase was due to the war situation in the Middle East. Now, since the war situation is easing, we are expecting that it may remain the same, or maybe it may go down also.

Brijendra Pratap Singh: No. That premium increase was due to that war situation in the Middle East. Now, since the war situation is easing out, we are expecting that it may remain same or maybe it may go down also.

Speaker #3: Got it, sir. And sir, my last question is: Because of the war situation in the Middle East, were any of your export shipments impacted, which will now normalize, either in alumina or aluminum?

[Analyst] (HSBC): Got it. Sir, my last question is because of the war situation in the Middle East, were any of your export shipments impacted, which will now normalize either in alumina or aluminum?

Pinakin Parekh: Got it. Sir, my last question is because of the war situation in the Middle East, were any of your export shipments impacted, which will now normalize either in alumina or aluminum?

Speaker #4: Yeah. A few of the shipments, like one shipment, was ordered earlier—of course, that was before the war—which was ordered at $390 also.

Brijendra Pratap Singh: Yeah, few of the shipments, like one shipment was earlier ordered. Of course, that was before the war, which was ordered at $390 also. That has got materialized. We are getting better realization in that. As far as other shipments are concerned, other shipments, whatever is getting ordered, they are going. No other pending shipments are there.

Speaker #4: That has got materialized, so we are getting better relations in that. As far as other shipments are concerned, as shipments, whatever is getting ordered, they are going.

Speaker #4: There are no other pending shipments.

Speaker #3: Got it, got it. Thank you very much, sir.

Manav Gogia: Got it. Thank you very much, sir.

Pinakin Parekh: Got it. Thank you very much, sir.

Speaker #1: Thank you.

Shalender: Thank you.

Operator: Thank you.

Speaker #4: Thank you.

Brijendra Pratap Singh: Thank you.

Speaker #1: The next question is from the line of Mr. Vikas Singh from ICICI Securities. Please go ahead, sir.

Shalender: The next question is from the line of Mr. Vikas Singh from ICICI Securities. Please go ahead, sir.

Operator: The next question is from the line of Mr. Vikas Singh from ICICI Securities. Please go ahead, sir.

Speaker #4: Good morning, sir, and thank you for the opportunity.

Vikas Singh: Good morning, sir. Thank you for the opportunity.

Vikash Singh: Good morning, sir. Thank you for the opportunity.

Speaker #1: Sir, took you usually

Brijendra Pratap Singh: Thank you.

Vikas Singh: Sir, Q2 usually, being a monsoon season, had traditionally been weaker, especially on the coal input side. Just wanted to understand, had we have sufficient coal inventory, including the captive this time, and any one-off costs in escalation or any disruption we have experienced so far?

Vikash Singh: Sir, Q2 usually, being a monsoon season, had traditionally been weaker, especially on the coal input side. Just wanted to understand, had we have sufficient coal inventory, including the captive this time, and any one-off costs in escalation or any disruption we have experienced so far?

Speaker #3: Being a monsoon season, it has traditionally been weaker, especially on the coal input side. So, just wanted to understand, have we had sufficient coal inventory, including the captive, this time? And have there been any one-off cost escalations or any disruptions we have experienced so far?

Speaker #4: As far as our power plant is concerned, we are in Angul. That is for our smelter there. We are having sufficient coal because that coal we are getting from our captive source—around 60-70 percent of coal we are getting from the captive source—so there, issues are not there.

Brijendra Pratap Singh: As far as our power plant is concerned, there in Angul, that is for our smelter. There we are having sufficient coal because that coal we are getting from our captive source. Around 60%, 70% of coal we are getting from the captive source. There, the issues are not there. Of course, in our refineries, the coal stock is on the lower side. The coal stock we have to maintain at the level of maybe 10 to 15 days. Now it is around two to three days. That is because of the restriction given by the government, the priority of the rails there. We are heavily dependent on the rails from the Indian Railways, and the priority is given to the power plant. Some issues are there. We are taking it very aggressively with the Indian Railways and our ministry, and some improvement is there.

Speaker #4: Of course, in our refineries, the coal stock is on the lower side. The coal stock we have to maintain at the level of maybe 10 to 15 days; now it is around two to three days. That is because of the restriction given by the government, the priority of the rakes. There, we are heavily dependent on the rakes from the railways, and the priority is given to the power plants. So there are some issues. We are taking it very aggressively with the Indian Railways and our Ministry, and some improvement is there. And since now the summer is over, restrictions will come down, so we are expecting that these stocks will also improve in the coming days.

Brijendra Pratap Singh: That is because of the restriction given by the government, the priority of the rails there. We are heavily dependent on the rails from the Indian Railways, and the priority is given to the power plant. Some issues are there. We are taking it very aggressively with the Indian Railways and our ministry, and some improvement is there. Since now the summer is over, restrictions will come down. We are expecting that these stocks will also improve in the coming days.

Brijendra Pratap Singh: Since now the summer is over, restrictions will come down. We are expecting that these stocks will also improve in the coming days.

Vikas Singh: As long as the rail availability for the shipment is concerned, there is no problem so far.

Vikash Singh: As long as the rail availability for the shipment is concerned, there is no problem so far.

Speaker #4: As far as the rake availability for the shipment is concerned, there is no problem so far. For that shipment, our own rakes are there for dispatching kiln-signed alumina; for that, no issues are there. We have got our own BTAP rakes; for that, no issues are there.

Brijendra Pratap Singh: No. For that shipment, our own rails are there for dispatching gilson alumina. For that, no issues are there. We have got our own BTAP rails. For that, no issues are there.

Speaker #3: Got it, sir. aluminum?

Vikas Singh: Okay, sir. Sir, a different question about you going in Barcelona, half a million ton aluminum plant-

Vikash Singh: Okay, sir. Sir, a different question about you going in Barcelona, half a million ton aluminum plant-

Speaker #1: Mr. Vikas Singh, your voice is breaking.

Shalender: Mr. Vikas Singh, your voice is breaking.

Operator: Mr. Vikas Singh, your voice is breaking.

Speaker #4: Is it better?

Vikas Singh: Is it better?

Vikash Singh: Is it better?

Speaker #1: Yeah, it is better. Please.

Shalender: Yeah, it is better.

Operator: Yeah, it is better.

Speaker #3: Hello? Yeah. So sir, my second question pertains to the case about our half-a-million-ton aluminium plant capex. Could you give us some highlights—at what stage of board approval these plants are, when we will start on this, and the capex, any?

Vikas Singh: Hello.

Vikash Singh: Hello.

Shalender: Please.

Operator: Please.

Vikas Singh: Yeah. Sir, second question pertains to the case really about our half a million tons aluminium plant CapEx. Could you give us some highlights at what stage of board approval these plants are? When we will start on this, the CapEx?

Vikash Singh: Yeah. Sir, second question pertains to the case really about our half a million tons aluminium plant CapEx. Could you give us some highlights at what stage of board approval these plants are? When we will start on this, the CapEx?

Speaker #4: For this 0.5 million ton smelter plant, as far as developments are concerned as of date, if you see, we have already finalized the technology supplier, that is EGA. We are going to sign the technology license with them—maybe this month by the 10th or 15th. So, DPR making is under process, the consultant is making the DPR. Our target is that in the next three to four months we will be ready with the DPR and get the board approval, maybe in October or November, for the DPR for setting up this 0.5 million ton smelter and also a 1,000 megawatt power plant.

Brijendra Pratap Singh: For this 0.5 million tons smelter plant, we had developments as far as of date, if it is UC. We have already got technology supplier finalized. That is EGA. We are going to sign technology license with them maybe this month by 10th or 15th. DPR making is under process. The consultant is making the DPR. Our target is next three to four months, we will be ready with the DPR and get the board approval maybe October, November, for the DPR for setting up this 0.5 million tons smelter, also 1,000 MW power plant. After that, maybe we will take eight to nine months to order the packages. By next year, August, September, we should order all the packages and start the groundwork maybe next year, October, November. From there it will take three to three and a half years to set up this plant.

Speaker #4: After that, maybe we'll take eight to nine months to order the packages. By next year, August or September, we should order all the packages and start the groundwork, maybe next year, October or November. From there, it will take three to three and a half years to set up this plant.

Brijendra Pratap Singh: After that, maybe we will take eight to nine months to order the packages. By next year, August, September, we should order all the packages and start the groundwork maybe next year, October, November. From there it will take three to three and a half years to set up this plant. The timelines which we have given to the ministry and our internal timeline is by December 2030, we have to complete this plant along with the power plant.

Speaker #4: So the timelines which we have given to the Ministry and our internal timeline is: by December 2030, we have to complete this plant along with the power plant.

Brijendra Pratap Singh: The timelines which we have given to the ministry and our internal timeline is by December 2030, we have to complete this plant along with the power plant. As far as the power plant is concerned, we have done one JV agreement with Neyveli Lignite for setting up this power plant so as to reduce our CapEx and to have the raw material security, that is the coal. NLC is having the coal mines here itself in Talcher district. The coal supply will be from there. That will be good for this power plant. This power plant DPR is also under process. At the same time, both will get ordered and get commissioned by 2030 end or 2031 H1.

Speaker #4: As far as the power plant is concerned, we have done one JV agreement with Neyveli Lignite for setting up this power plant.

Brijendra Pratap Singh: As far as the power plant is concerned, we have done one JV agreement with Neyveli Lignite for setting up this power plant so as to reduce our CapEx and to have the raw material security, that is the coal. NLC is having the coal mines here itself in Talcher district. The coal supply will be from there. That will be good for this power plant. This power plant DPR is also under process. At the same time, both will get ordered and get commissioned by 2030 end or 2031 H1.

Speaker #4: So as to reduce our capex and to have raw material security—that is, coal—NLC is having the coal mines here itself in Talcher district, so the coal supply will be from there.

Speaker #4: So that will be good for this power plant. So, this power plant DPR is also under process. So, at the same time, both will get ordered and get commissioned by the end of 2030 or the first half of 2031.

Speaker #4: Capex is concerned the overall capex expenditure will be somewhere around ₹25,000 crores, and this will start from financial year 2027-28, with the peak being in 2028-29, 2029-30, and 2030-31.

Brijendra Pratap Singh: CapEx is concerned, the overall CapEx expenditure will be somewhere around INR 25,000 crores, this will start from financial year 2027-28, the peak will be 2028-29, 2029-30, 2030-31. This will be the two, three years where this CapEx flow distribution will be there. This year, for that project, no major CapEx will be there. Of course, technology licenses, we have to give something, maybe INR 300, 400 crores. The major CapEx will be coming next financial year onwards.

Brijendra Pratap Singh: CapEx is concerned, the overall CapEx expenditure will be somewhere around INR 25,000 crore, this will start from financial year 2027-28, the peak will be 2028-29, 2029-30, 2030-31. This will be the two, three years where this CapEx flow distribution will be there. This year, for that project, no major CapEx will be there. Of course, technology licenses, we have to give something, maybe INR 300, 400 crore. The major CapEx will be coming next financial year onwards.

Speaker #4: This will be the two to three years where this capex, capex flow distribution will be there. This year, for that project, no major capex will be there. Of course, for technology licenses we have to give something, maybe ₹300 to ₹400 crores, but the major capex will be coming next financial year onwards.

Speaker #3: Noted sir.

Vikas Singh: Noted, sir. Sir, just one clarification. The shipments or the exports which we do to Russia, is it on a US dollar denominated or it's in the Russian currency? Whatever the US dollar denominated sales we do in the export market, we book the US dollar to Indian rupee at the time of shipment, right?

Vikash Singh: Noted, sir. Sir, just one clarification. The shipments or the exports which we do to Russia, is it on a US dollar denominated or it's in the Russian currency? Whatever the US dollar denominated sales we do in the export market, we book the US dollar to Indian rupee at the time of shipment, right?

Speaker #1: Sir, just one clarification: the shipment of the exports which we do to Russia, is it dollar denominated or is it in the Russian currency? And whatever the dollar-denominated sales we do in the export market, we book the dollar into rupee at the time of shipment, right?

Speaker #4: No, whatever shipments our exports are going, that is on a dollar basis at the time of ordering. When our tender is floated, we do the spot tenders, and that is the dollar rate as of that day.

Brijendra Pratap Singh: No. Whatever shipment our exports are going, that is on a US dollar basis at the time of ordering. When our tender is floated, we do the spot tender, that is the US dollar rate as of that day.

Speaker #3: Okay. But the booking happens, or the sales get booked, at the time of shipment, right?

Vikas Singh: Okay. The booking happens or the sales got booked at the time of shipment, right?

Vikash Singh: Okay. The booking happens or the sales got booked at the time of shipment, right?

Speaker #4: Actually, for booking, we do the spot tenders, and on the date of opening the spot tender, whatever the dollar prices are there, that is finalized.

Brijendra Pratap Singh: Actually, we do the spot tender, the date of opening the spot tender, at that date, whatever the US dollar prices are there, that is finalized.

Speaker #3: Noted, sir. Noted. Understood. Thank you, sir, and all the best for the future.

Vikas Singh: Noted. Understood. Thank you, sir, and all the best for future.

Vikash Singh: Noted. Understood. Thank you, sir, and all the best for future.

Speaker #4: Thank you.

Brijendra Pratap Singh: Thank you.

Speaker #1: Thank you. The next question is from Mr. Mano Gogia from Yes Securities Limited. Please go ahead.

Shalender: Thank you. The next question is from Mr. Manav Gogia from YES Securities Limited. Please go ahead.

Operator: Thank you. The next question is from Mr. Manav Gogia from YES Securities Limited. Please go ahead.

Speaker #3: Yeah. Hi, good morning. Thank you so much for the opportunity. So, my first question is regarding the captive coal mines. We were targeting 4.8 million tons of production for FY27.

Manav Gogia: Yeah. Hi, good morning. Thank you so much for the opportunity. Sir, my first question comes on the captive coal mines. We were targeting a 4.8 million tons production for FY2027. Can you just elaborate on where we are in the EC process for our mine expansion?

Speaker #3: So, can you just elaborate on where we are in the EC process for, you know, our mine expansion?

Speaker #4: Already, the mining plan approval we have done. For mining plan approval, it is to be done from the Board. This Board, we have done the mining plan approval, and now we are applying for the EC.

Brijendra Pratap Singh: Already, the mining plan approval we have done. For mining plan, approval is to be done from the board. We have done the mining plan approval, and now we are applying for the EC. Next, maybe 2, 3 months, we will be getting the EC. Already we have started the production and 4.8 million tons, we are sure. We are going at the rate of 4.8 million tons or monthly breakup, whatever we have done. Next 2, 3 months, we will be getting EC from MoEFCC. There are no major issues in that.

Speaker #4: Next, maybe in two or three months, we'll be getting the EC. So already we have started the production, and 4.8 million tons—we are sure we are going at the rate of 4.8 million tons on a monthly breakup, whatever we have done.

Speaker #4: So, in the next two to three months, we'll be getting EC from MOEFCC. So, there are no major issues in that.

Speaker #3: Oh, okay, that's good to hear. And could you just give me what was our total coal production in Q1 from captive mines?

Manav Gogia: Oh, okay. That is good to hear. Could you just give me what was our total coal production in Q1 from our captive mines?

Speaker #4: Q1 was 11.04 million.

Brijendra Pratap Singh: Q1 was

Abhay Kumar Behuria: 11.04 lakh.

Speaker #3: 11.

Brijendra Pratap Singh: Seven point. Initially what happened, initially four, five days in the beginning of Q1, five days the production from the mines were not there. There were some technical issues. Now we have ramped up the production. The subsequent quarters will be managing those, whatever shortfalls were there.

Speaker #4: Because initially, what happened was that in the beginning of Q1, for about four or five days, the production from the mines was not there. There were some technical issues.

Speaker #4: Now we have ramped up the production. And in the subsequent quarters, we'll be managing whatever shortfalls were there.

Speaker #3: Oh, okay, okay. Can you just repeat the number once more, sir?

Manav Gogia: Oh, okay. Can you just repeat the number once more, sir?

Speaker #4: 11.04 lakh ton.

Abhay Kumar Behuria: 11.04 lakh ton.

Speaker #3: Okay, sure. And sir, my second question is: you know, regarding the Potangi mines, we have already appointed an MDO. When do we expect production to take place, or has it already started?

Manav Gogia: 11 point. Okay. Sure. Sir, my second question is, now the Potangi mines, we have already appointed an MDO. When do we see the production to take place? Or has it already started?

Speaker #4: Potangi mines, actually, we have already ordered the MDO, and for going to the mines and starting the production, one road is to be made—an eight-kilometer road.

Brijendra Pratap Singh: Potangi mines, actually, one, we have already ordered the MDO, for going to the mines and starting the production, one road is to be made, 8-kilometer road. For making the road, tree cutting is to be done. We have, along with district authorities, some resistance is coming there. Some activists and some residents are coming there. District authorities, two, three times we have tried along with the state government, police force and all that. We are trying to mobilize the locals there along with the MDO. I think in this month itself, that is in the month of August, along with the authorities, we will be again going there for making the road. Once the road making will take around maybe 15, 20 days, we are targeting maybe September, October onwards. October onwards, we will start the production.

Speaker #4: For making the road, tree cutting is to be done. We have, along with district authorities, some resistance coming there—some activists and some resistance are coming there.

Speaker #4: District authorities—two, three times we have tried, along with the state government, police force, and all that. We are trying to mobilize the locals there along with the MDO.

Brijendra Pratap Singh: District authorities, two, three times we have tried along with the state government, police force and all that. We are trying to mobilize the locals there along with the MDO. I think in this month itself, that is in the month of August, along with the authorities, we will be again going there for making the road. Once the road making will take around maybe 15, 20 days, we are targeting maybe September, October onwards. October onwards, we will start the production.

Speaker #4: And I think in this month itself, that is, in the month of August, along with the authorities, we will be going there again for making the road.

Speaker #4: Once the road making will take around maybe 15 20 days that method we are targeting maybe September October onwards. October onwards we'll start the production.

Speaker #3: Oh, okay, sure. That is quite helpful, sir. So, one last question I had: As of, you know, March 2026, our total employee count was roughly 4,880.

Manav Gogia: Okay, sure. That is quite helpful, sir. One last question I had. As of March 2026, our total employee count was roughly 4,880. What would the employee count be as of right now or as of Q1 end?

Speaker #3: What would the employee count be as of right now, or, you know, as of Q1 end?

Brijendra Pratap Singh: 4848.

Speaker #4: For December, as of now, it is 4,848.

Abhay Kumar Behuria: 4848.

Brijendra Pratap Singh: As of now it is 4848.

Speaker #3: Okay. So there could be another 150 to 170 employee reduction by the year end, right?

Manav Gogia: Okay. There could be another 150 to 170 employee reduction more by the year-end, right?

Speaker #4: Oh yes, sir. Every year, we'll be talking around 200—170 to 200—every year, reduction will be there in the coming three to four years.

Brijendra Pratap Singh: Yes. Every year we'll be reducing around 100.

Manav Gogia: Okay.

Brijendra Pratap Singh: 170 to 200 every year reduction will be there in coming three, four years.

Speaker #3: Sure, sure, sir. That is quite helpful. All the very best.

Manav Gogia: Sure, sir. That is quite helpful. All the very best.

Speaker #4: Thank you.

Brijendra Pratap Singh: Thank you.

Speaker #1: Thank you, sir. The next question is from Amit Murarka of Axis Capital. Please go ahead.

Shalender: Thank you, sir. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.

Operator: Thank you, sir. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.

Speaker #3: Oh, yeah. Hi, all. Thanks for the opportunity. So, you mentioned the mechanical completion of the alumina plant in September and roughly an additional 200 Kt production, right?

Operator 2: Hi. Thanks for the opportunity. You mentioned the mechanical completion of the alumina plant in September and roughly additional 200 KT production. Right? Next year, can we assume the full run rate of this capacity?

Amit Murarka: Hi. Thanks for the opportunity. You mentioned the mechanical completion of the alumina plant in September and roughly additional 200 KT production. Right? Next year, can we assume the full run rate of this capacity?

Speaker #3: So, but next year, then, can we assume the full run rate of this capacity?

Speaker #4: Oh yes, sir. From next year onwards, we have to do it. We will be going to 1 million tons production from there, and 2.2—already we are at 2.2 or 2.3, we are going from the existing.

Brijendra Pratap Singh: Yes. Next year onwards we have to do. We will be going to 1 million ton production from there and 2.2 already we are, 2.2.3 we are doing from the existing. Maybe we'll be going to 3.1, 3.2 next year onwards.

Speaker #4: Maybe we'll be going to 3.1, 3.2 next year onwards.

Speaker #3: Sure. Also, on this local market premium for aluminium, how does it really work? Do you enter into some contracts once the premium is fixed, or does it go with the spot market itself?

Operator 2: Sure. Also on this local market premium for aluminum, how does it really work? You will enter into some contracts once the premium is fixed or is it like goes with the spot market itself?

Amit Murarka: Sure. Also on this local market premium for aluminum, how does it really work? You will enter into some contracts once the premium is fixed or is it like goes with the spot market itself?

Speaker #4: Actually, we do export tender from export tender premium. That is loaded on the domestic prices, pricing whatever we do. That is loaded on the domestic pricing.

Brijendra Pratap Singh: Actually, we do export tender. From export tender premium, that is loaded on the domestic pricing whatever we do. That is loaded on the domestic pricing, LME. Domestic pricing is based on the LME.

Speaker #4: LME. Domestic pricing is based on the LME.

Speaker #3: No, no, I know. I'm talking about the premium. So, when you sell in the local market, the premium that you book or charge customers in the local market is also based on some benchmark—let's say MJP benchmark, something like that—or do you fix it?

Operator 2: No, I'm not talking about the premium. When you sell in the local market, the premium that you book or charge customers in the local market is also based on some benchmark, let's say MJP benchmark, something like that, or you fix it?

Amit Murarka: No, I'm not talking about the premium. When you sell in the local market, the premium that you book or charge customers in the local market is also based on some benchmark, let's say MJP benchmark, something like that, or you fix it?

Speaker #4: It is not on the MJP. The process we follow is: we do one export tender. In the export tender, whatever premium we get, that premium is fixed for the next three to four months, unless and until we do the next export tender.

Brijendra Pratap Singh: It is not on the MJP. The process we follow is we do one export tender. In export tender, whatever premium we do get, that premium is fixed for next three to four months unless and until we do the next export tender. Suppose we did a export tender last month, we got a premium of INR 110. That premium will be loaded on the domestic pricing for next three to four months until we do the next export tender and we discover the premium.

Speaker #4: So, suppose we did an export tender last month. We got a premium of $110. So that premium will be loaded onto the domestic pricing for the next three to four months, until we do the next export tender and we discover the premium.

Speaker #3: Okay okay okay.

Operator 2: Okay.

Amit Murarka: Okay.

Speaker #4: Are you talking about the metal price or alumina?

Abhay Kumar Behuria: You are talking about the metal price or alumina?

Speaker #3: Aluminium. Same with the sales that you make locally.

Operator 2: Aluminium.

Amit Murarka: Aluminium.

Abhay Kumar Behuria: Aluminium.

Operator 2: The sales that you make locally.

Amit Murarka: The sales that you make locally.

Speaker #4: That is our policy. What CMD sir has explained, that is our—we have a structured policy for fixing the aluminium price, and there are other factors also there.

Abhay Kumar Behuria: That is our policy what CM sir has explained. We have a structured policy for fixing the aluminum price, and there are other factors are also there. One factor is premium. Whatever premium is discovered for tendering, export tendering, that is added to our aluminum price, domestic supply. Okay?

Speaker #4: One factor is the premium. Whatever premium is discovered for tendering—export tendering—that is added to our aluminium price for domestic supply. Okay.

Speaker #3: Sure, sure. Got it. So it's revised based on every tender that you do.

Operator 2: Sure. Got it. Revised based on every tender that you do.

Amit Murarka: Sure. Got it. Revised based on every tender that you do.

Speaker #4: Every tender, yes. The frequency of tenders depends—every three to four months, so we do it normally.

Abhay Kumar Behuria: Every tender, yes. The frequency of tender depends three, four months. We do normally.

Speaker #3: Right. Also, what is the capex outlook now for FY27 and FY28, if you could provide the numbers?

Operator 2: Right. What is the CapEx outlook now for FY 2027-2028? If you could provide the numbers.

Amit Murarka: Right. What is the CapEx outlook now for FY 2027-2028? If you could provide the numbers.

Speaker #4: Our target is ₹1,500 crore. Maybe we'll be crossing that—we'll be somewhere ending up with around ₹2,600–2,700 crore. You are talking, no?

Brijendra Pratap Singh: Our target is INR 1,500 crore. Maybe we'll be crossing that. We'll be somewhere ending up with around 2026, 2027, you are talking, no?

Speaker #3: Yeah, this year as well as next year.

Operator 2: Yeah, this year as well as next year.

Amit Murarka: Yeah, this year as well as next year.

Speaker #4: This year, our target is around ₹1,500 crore, because most of the payments for the system are done, so major capital expenditure is not there. But still, we'll be doing somewhere around ₹1,500 to ₹1,700 or ₹1,800 crore.

Brijendra Pratap Singh: This year, our target is around INR 1,500 because most of the payments for 5th stream is done. Major capital expenditure is not there, but still we'll be doing somewhere around INR 1,500 to 1,700 or 1,800 crore. Next year onwards, it will increase because our expansion of the smelter will be there. Next year, how much we have planned?

Speaker #4: Next year onwards, it will increase because our expansion of the smelter will be there. So, next year, how much have we planned?

Speaker #3: Next year, we have planned around 500.

Abhay Kumar Behuria: Next year we have planned INR 2,500.

Speaker #4: 2500.

Speaker #3: 2500.

Speaker #4: 2,500 maybe in 27–28. After that, it will go to maybe 4,000–5,000 crore. After next, maybe 6,000–7,000 crore. We have done the phasing, and the major expenditure will come from this smelter expansion and power plant expansion.

Brijendra Pratap Singh: INR 2,500 maybe in 2027, 2028. After that, it will go to maybe INR 4,000 crore, INR 5,000 crore. After next year, maybe INR 6,000 crore, INR 7,000 crore. We have done the phasing, the major expenditure will come from the smelter's expansion and power plant expansion.

Speaker #3: Sure, got it. And also, regarding captive coal—I think earlier you had mentioned about 4.6-odd million tons production this year, so you seem to be on track for that.

Operator 2: Sure. Got it. Also captive coal, I think earlier you had mentioned about 4.6 million tons production this year. You seem to be on track on that?

Amit Murarka: Sure. Got it. Also captive coal, I think earlier you had mentioned about 4.6 million tons production this year. You seem to be on track on that?

Speaker #4: Oh yes, yes. Captive coal: last year we did 4 million tonnes. This year, we are targeting 4.8 million tonnes because a 20 percent increase is allowed for that. All permissions and all that are under process, and on a monthly basis we are producing at the rate of 4.8 million tonnes, and we'll be achieving that at the end of the year.

Abhay Kumar Behuria: Yes. Captive coal, last year we did 4 million tons. This year we are targeting 4.8 million tons because 20% increase is allowed. For that, all permissions and all that under process, on a monthly basis, we are producing at the rate of 4.8 million tons, we'll be achieving that at the end of the year.

Brijendra Pratap Singh: Yes. Captive coal, last year we did 4 million tons. This year we are targeting 4.8 million tons because 20% increase is allowed. For that, all permissions and all that under process, on a monthly basis, we are producing at the rate of 4.8 million tons, we'll be achieving that at the end of the year.

Speaker #3: Sure, sure. That's it for me. Thank you.

Operator 2: Sure. That's it from me. Thank you.

Amit Murarka: Sure. That's it from me. Thank you.

Speaker #1: Thank you. The next question is from Sumangal Nematia from Kotak Securities. Please go ahead.

Shalender: Thank you. The next question is from Sumangal Nevatia from Kotak Securities. Please go ahead.

Operator: Thank you. The next question is from Sumangal Nevatia from Kotak Securities. Please go ahead.

Speaker #3: Yeah, good morning. Thanks. So, just continuing on the previous question—one, on the capex, can you share how much we spent in Q1? And then, for the expansion, I just want to know: the power capex will happen in the JV, so will we be contributing only the amount of equity, which could be maybe around 20-30 percent? So just if you can explain how the power expansion capex will happen.

Sumangal Nevatia: Good morning. Thanks. Just continuing on the previous question. One on the CapEx, can you share, in 1Q, how much we spent? For the expansion, I just want to know, the power CapEx will happen in the JV. Will we be contributing only to the amount of equity, which could be maybe around 20%, 30%? Just if you can explain how the power expansion CapEx will happen.

Speaker #4: Yes. Regarding our capex plan, as CMD sir has already explained, for the smelter we are going for EPC mode, and for the power plant, we have a JV with NLC and we'll be doing both.

Abhay Kumar Behuria: Yes. Our CapEx plan, what Nishanth Agadi explained, smelter, we are going to do EPC mode, for power plant, we have JV with NLC, we'll be doing both. Okay? Contribution to our total expenditure towards our CapEx for up to 2030, 2031 will be around INR 24,000 crore. INR 17,000, 18,000 crore on smelter INR 6,000 crore towards contribution for this power plant. 1,080 MW power plant through JV mode. The total cost will be around INR 12,000 crore INR 6,000 crore from our side INR 6,000 crore from NLC, because 50/50 JV is there. In power plant, we have a debt equity ratio of 30/70. If you follow that, our equity contribution will be lower. It is around INR 3,500, our share will be INR 1,760.

Speaker #4: Okay, so contribution to total expenditure towards our capex up to 2030–31 will be around ₹24,000 crore: ₹17,000–18,000 crore on the smelter, and ₹6,000 crore towards contribution for this power plant.

Speaker #4: The 1080 megawatt power plant is through JV mode. The total cost will be around ₹12,000 crore, with ₹6,000 crore from our side and ₹6,000 crore from NLC, because it's a 50:50 JV.

Speaker #4: In power plant we have a debt equity ratio 30 70. So if you follow that our equity contribution will be lower it is around 3500 our share will be 17 60 and balance will be financed through bank through our NALCO and NLC will be the guarantor because this is the new JV will be the guarantor and money will be taken from the bank.

Abhay Kumar Behuria: In power plant, we have a debt equity ratio of 30/70. If you follow that, our equity contribution will be lower. It is around INR 3,500, our share will be INR 1,760. Balance will be financed through bank, through our NALCO, and NLC will be the guarantor because this is a new JV, we will be the guarantor, and money will be taken from the bank. If you see otherwise, if you see our firm base, if you see our balance sheet as on date, we have a firm base of around INR 10,500 crore cash.

Abhay Kumar Behuria: Balance will be financed through bank, through our NALCO, and NLC will be the guarantor because this is a new JV, we will be the guarantor, and money will be taken from the bank. If you see otherwise, if you see our firm base, if you see our balance sheet as on date, we have a firm base of around INR 10,500 crore cash. Every year we are adding INR 3,500 after paying our dividend and all our CapEx is regular. If you see that area, we need not to take any money from the outside because we have sufficient balance. Since we have entering into a JV agreement for power plant, the power plant will be financed by that company, the JV company. Equity participation will be 30%, 70% will be taken from the bank.

Speaker #4: So, if you see otherwise, if you see our firm base, if you are balanced—it doesn't debt—we have a firm base of around ₹10,500 crore cash.

Speaker #4: So every year we are adding 3,500 after paying our dividend and all our regular capex expenditure. So, if you see that area, we need not take any money from outside because we have a sufficient balance.

Abhay Kumar Behuria: Every year we are adding INR 3,500 after paying our dividend and all our CapEx is regular. If you see that area, we need not to take any money from the outside because we have sufficient balance. Since we have entering into a JV agreement for power plant, the power plant will be financed by that company, the JV company. Equity participation will be 30%, 70% will be taken from the bank.

Speaker #4: Since we have entered into a JV agreement for the power plant, the power plant will be financed by that company. The JV company equity participation will be 30 percent, and 70 percent will be taken from the bank.

Speaker #4: So the balance money which we have will be utilized for our expansion project of the smelter and other projects. We are also considering that this will be entirely through equity because we have sufficient balance.

Abhay Kumar Behuria: Balance money, which we have, we will be utilizing for our expansion project of smelter and other project we are also considering, that will be entirely through equity because we have sufficient balance. The power plant will be 30 equity, debt equity is 30/70. That is the present proposition, and we are going to go by this philosophy.

Speaker #4: So the power plant will be 70:30, 30 equity-based. Debt-equity is 30:70. So that is the present proposition, and we are going to go by this philosophy.

Speaker #3: Understood. So, for the power plant, ₹12,000 crore for 1,000 megawatt—I mean, generally the thumb rule is ₹7–8 crore per megawatt, so why is the cost so much higher?

Sumangal Nevatia: Understood. Sir, for the power plant, INR 12,000 crore for 1,000 megawatt. I mean, generally the thumb rule is INR 7 or INR 8 crore per megawatt. Why is the cost so higher?

Speaker #4: Hey, it's not—sorry, one megawatt—I think it's 10 crore per megawatt, so it will be 10,000 to 11,000 crore. It is not higher.

Abhay Kumar Behuria: Sorry. One megawatt, I think INR 10 crore one megawatt. It will be INR 10,000 to INR 11,000 crore. It is not higher. Because we are going to set up 1,080 megawatt power plant.

Speaker #4: Because we are going to set up a 1,000 to 80 megawatt power plant.

Speaker #3: Okay, understood. And sir, what you said is the cash balance as on Q1 cash is ₹10,500 crore?

Sumangal Nevatia: Okay. Understood. Sir, what you said was the cash balance as on Q1, net cash is INR 10,500?

Speaker #4: Yes. As on 30th June 2026, as on date, it is 10,500 plus.

Abhay Kumar Behuria: Yes. As on 30 June 2026. As on date it is INR 10,500 plus.

Speaker #3: Understood. And in Q1, how much did you spend for capex?

Sumangal Nevatia: Understood. In Q1, how much did you spend for CapEx?

Speaker #4: Is this for this year, or are you talking about subsequent capex?

Abhay Kumar Behuria: This year or you're talking about the subsequent?

Sumangal Nevatia: Only in the first quarter.

Speaker #3: Only in the first quarter.

Abhay Kumar Behuria: First quarter we have spent, I think INR 350.

Speaker #4: I think 350.

Speaker #3: Understood. Understood. Sir I wanted to understand that on the previous question on sales of metal you shared it is I mean the premium is decided as per the export tender so the domestic price just to clarify it is the LME plus the customs duty plus whatever we get as a premium in the export are the are these three components there?

Sumangal Nevatia: Understood. Sir, I wanted to understand that on the previous question, on sales of metal, you shared the premium is decided as per the export tender. The domestic price, just to clarify, it is the LME plus the custom duty, plus whatever we get as a premium in the export. Are these three components there?

Speaker #4: There are some handling charges and some stock yard charges something are also added on that yes on that this is and the transportation charges transportation charges from port to our a point and the port to the customer point because you have a calculation module the three factor is there you have rightly mentioned that is the export import duty plus premium plus handling charges and plus freight equalization what freight customer have paid to their location how what they will be paying from our location to their understood so can you share what were these three components for 1Q LME we know but the breakup of the realization we available in our domain our domain you can get it from our website I think pricing policy is there so that policy we need to see whether it is a classified one or not we can share or not okay okay that's fine and sir just one last thing on the aluminum metal you said 15 to 16000 rupees increase in cost so this is 50 to 60 15000 yeah 15 yeah 15 to 16 so this is with respect to fourth quarter or with respect to last year as an average last year average last year average was 156 16 157 around 157000 this year average first Q1 is around 170000 and so for the as per the today's trend 2Q should be what sir Q2 will slightly slightly increase because CP coke prices and plastic soda in Q2 will be slightly higher not much higher maybe it will go to 172 or 171 72 it depends on how much efficiency we are achieving understood and just one last question sir with I mean when we are adding around less than a million tons of captive coal this year what is the cost saving what is the difference between the cost of captive coal versus what we are replacing linkage or reaction coal our cost of captive coal which we are sourcing from our own mines it is around landed cost it is 1600 quarter if we compare this cost with our coal from there are two type of coal we are taking from the coal India one is agreement FSA linkage fuel supply agreement another is through auction so FSA coal is around almost same phase is 17 16 1700 and if you see that auction coal it is varying from 3500 to 3600 so there is a difference in auction coal and if you see the FSA coal FSA coal we are not regularly getting because of the rack supply so the auction coal is too higher than our captive coal so there is a great advantage between auction coal and our captive coal okay that is 1500 almost okay and sir last year what is the breakup of a coal how much was link linkage and how much was reaction last year if you see linkage okay linkage and e auction linkage and auction around 55 45 linkage and e auction yeah and linkage and e auction and we are talking about because of total 7.2 million 4 million is our own we are taking 3.2 from coal india out of 3.2 linkage and coal e auction kitna hoga linkage linkage was around 34 million 30 lakhs from our CPP and 10 lakhs from revision linkage and auction coal it was around 1 million 1 lakh 10 lakhs just we'll check up the data and let you know sure sir that that was my last question I'll wait for the answer and I'll join back the queue thank you thank you sir thank you the next question is from Mr. Diganth Arya from Greenage Wealth please go ahead hi thank you for the opportunity sir just want two questions I had you know one was on the aluminum metal price outlook like you know and because you know the Middle East war destroyed one or two big production factories you know when they come back on stream you know what happened what is your expectation of aluminum metal prices that's number one and number two is that you know in recycled aluminum also India is seeing a lot of investments you know like does NALCO have any plans and and you know can that impact our sales going forward two three years later yeah these are the two questions metal prices as of now it is 3200 LME is 32 so what forecasts are telling CRU and plats and all that that remaining part of the year that that will remain somewhere around 31 32 we are also expecting somewhere in between 3000 to 3200 will be the LME in the remaining part of the year because whatever smelters are supposed to come in the Middle East that will be coming maybe by end at the Q4 of this financial year because this smelters will take some time more six seven months eight months more so supply restrictions there the projections are there there will be a deficit of around 0.88 million ton of metal in the international market if you see the production and consumption pattern there is a deficit of around 0.88 million ton so LME will be there somewhere around 3200 got it sir got it and sir just on the recycling is concerned we were talking about recycling in our in as far as NALCO is concerned recycling basically is done for the secondary producers who are making small small quantity and since we are a major producer so we don't we don't go into a recycling because that also disturbs the quality of the metal we produce in aluminum sector the quality of the metal is very important the purity of the aluminum whenever the recycling is done the quality assurance is not there so our plans for recycling is not there okay okay sir okay thank you so much thank you thank you the next question is from Mr. Akhilesh Kumar from MK please go ahead hi hi sir thanks for taking my question so my first question is that for this quarter did we have any LME linked contracts for alumina and if yes then how do we stand for the quarters ahead of us yes we could not get you if you can repeat your question yes sir so my question is on did we have any LME linked contracts for alumina for one Q for 27 and if yes then how do we stand for the quarters ahead of us term contract term contract in Q1 I think in the beginning one or two shipments start yeah we have to see it but now as of now last two three months we have two months we are not having any we that we call as a term contract which is linked to the LME that is not there because we had a few tenders in which the percentage was very low it was coming around 10% of the LME that's why we canceled that tender because spot prices we are getting better so is it fair to say that for FY 27 also for the remaining of the year we won't be having any term contracts actually we go for the tender we will be doing some tender if we get better prices then only we'll go because as of now if we are getting 30 70 and the percentage wise if we get only 10% 11% so around 3200 LME that will come to maybe around 320 so we don't order that so it totally depends on we'll be doing tender if we get the better prices around 12 13% 14% then only we'll book the orders and can you say also explain how we are getting this 50 of premium versus our one Q average which you said was around 320 for alumina and now for this quarter you are expecting it to be 370 so why this differential is there whatever whatever premium I was talking that was for metal aluminium alumina may we are not alumina whatever we are selling that is a spot tender fixed price suppose we are doing a spot tender and on that spot tender whatever suppose we are getting 370 dollar rupee dollar per ton or 350 dollar whatever that is a fixed price spot tender for shipment but that premium I was talking was for the metal for aluminium whatever aluminium we are selling in the domestic market on that we load some premium that depends on whatever export we do few some export of the aluminium also some metal exports also we do we do 500000 tons every month in that export tender whatever premium we are getting that is loaded to the domestic customers sure sure so is it fair to say that for second quarter alumina realizations could be close to 360 370 dollars for NALCO yes yes already this month July we have spot tenders August spot tender also somewhere around 370 we have we are getting last spot tender we have done two three batch that also we got 380 so Q2 average 370 I think we'll be getting Q2 okay okay now what we have mentioned the past quarter lesson was around 323 and the next quarter we'll be expecting 50 more that is through spot tendering or term contract whatever it is we are expecting that because the price what is now being prevailed it will give us more 50 more that our earlier realization okay got it and my sir second question is on the box side to alumina production also for this quarter we have used kind of 3.2 tons of oxide for one ton of alumina which is efficient if we compare it to the last few quarters which was at around three point five tons of box site so any particular reason for this improvement and can we expect this to sustain ahead also it totally depends on the quality of offsite we are getting from the mines and basically we have started a few new faces in there in our minds so when the quality of offsite is good so per ton consumption of box site it goes down in the coming days because we are going to start south block two also where we will be getting better quality of oxide our north block which was a very old block that has almost exhausted so we are starting some new phases where the box site quality will be better so average specific consumption of box site will be we'll be getting better sure sir thank you so much that's it for me thank you the next question one query just one query was there on the linkage coal and all that our director production is there he is going to answer that question basically for our CPP we are utilizing linkage coal and it's called D and E coal last year we have utilized 47.16 lakh coal from linkage through MCL and utkal D and D 40 or we are taking coal from E through E auction for our alumina refinery and through linkage we last year we purchased 11.24 lakh through linkage and E auction coal around 7 lakh so approximately 40% coal of total coal used in refinery is taken purchased through E auction and balance is through linkage thank you thank you sir thank you we have next question from Patanjali Srinivasan from Sundaram Mutual please go ahead hi sir thank you for the opportunity I just wanted clarity on one of the sir please be a little bit louder sir please yeah my audible now is it better yes better sir yes good morning yeah yeah good morning sir so you had mentioned about this premiums at for metal at around 110 currently can you tell us what was it in the last time when you had done the revision and what is the impact between then and now that was last time we have done around five six months back at that time we got the premium was around 60 60 somewhere around 60 okay but based on what you're saying your premium has only increased but I think in your presentation you had mentioned something like premiums are declining or premiums are likely to reduce war risk premium can you tell me the difference between the two you see the premium totally depends on the demand supply if the demand is more the supply is lesser the premium we get better now last time when the tender we did at that time the supply restrictions were there due to this war situation since the war situations are easing out so even the smelters in the middle east they are trying to increase the production in the subsequent months when this eases out the premium will go down got it sir miss one question your new alumina refinery that you are starting what will be the difference in terms of cost of production versus your current plants because the current plants are much older right cost of cost of production in the expansion unit you are talking correct we have calculated for our expansion unit stream the cost of production will not be much high because our average if you see our current cost of production of alumina this last year it was around 20,000 but this year first quarter we have got around 22,700 66 because of the increase in caustic soda and fuel oil that is HFO these were the two major contributors that has increased in our new refineries there is a 15 refinery the advantage which we will be getting is that is a pressurization where the caustic soda consumption will be on the lower side the caustic soda consumption in our existing refinery which is around 103 kg to 105 kg per ton of alumina production that should go up to go down to around maybe 85 to 90 kg per ton of alumina consumption and that will reduce our cost by maybe I think by thousand or 1500 rupees per ton as far as alumina cost is concerned and other areas like manpower cost and all that because that is a big unit one line producing around one million ton now from four lines in the existing refinery from four lines we are producing 2.1 million ton so the fixed cost that is the manpower cost will also be on the lower side of course the interest interest is not there the depreciation will be loaded some depreciation will be loaded on the cost but what we have calculated the overall cost of the existing refinery and the new refinery will be almost same new new refinery also somewhere around 22 23,000 will be the cost coming got it sir thank you sir thank you thank you the next question is from Parvani Datta please go ahead sir I just have one question just a clarification our current alumina capacity is 2.1 million ton right yes yes and sir after expansion how much is this going to become you see our current capacity is 2.1 but last year we produced around 2.3 so we have done 0.2 excess of our capacity with expansion one more one million ton will be added so after expansion we are targeting the rated capacity will be 3.1 million ton but we'll be targeting around maybe 3.2 or 3.3 million ton and sir this comes up when this extra one million ton capacity one million ton this year only 0.2 million ton will be added from next year onward that is 27 28 okay 27 28 we will have full 3.1 million ton yes yes so then obviously we'll have as of now we are selling what closer to one million right last year we sold around 1.4 million 14 lakh tons this year we are planning 1.6 so after this goes to the full capacity because in our smelter we require only 0.9 0.95 million ton the rest has to be sold in the open market so next year we'll get a extra one million ton meaning full okay that has to be sold okay sir thank you that's all from my side and sir one.

Brijendra Pratap Singh: There are some handling charges and some stockyard charges, something are also added on that. Yes. On that basis.

Abhay Kumar Behuria: The transport is from.

Brijendra Pratap Singh: Transportation charges

Abhay Kumar Behuria: from port to our AE point and The core to the customer point, because you have a calculation module. The three factors there you have rightly mentioned, that is the export-import duty, plus premium, plus handling charges, and plus freight equalization. What freight customer have paid to their location, what they will be paying from our location to their location.

Sumangal Nevatia: Understood, sir. Can you share what were these three components for Q1? LME we know, but the breakup of the realization.

Abhay Kumar Behuria: That's available in our domain. You can get it from our website. I think pricing policy is there. That policy, we need to see whether it is a classified one or not, we can share or not.

Sumangal Nevatia: Okay. That's fine. Sir, just one last thing. On the aluminium metal, you said INR 15,000 to 16,000 increase in cost. This is

Abhay Kumar Behuria: Not 50 to 60. 15,000.

Brijendra Pratap Singh: Not 50 to 60. 15,000.

Sumangal Nevatia: Yeah, 15 to 16. This is with respect to Q4 or with respect to last year as an average?

Abhay Kumar Behuria: Last year average. Last year average was 156, 157 around. INR 157,000. This year average Q1 is around INR 170,000.

Brijendra Pratap Singh: Last year average. Last year average was 156, 157 around. INR 157,000. This year average Q1 is around INR 170,000.

Sumangal Nevatia: As per the today's trend, Q2 should be what, sir?

Abhay Kumar Behuria: Q2 will slightly increase because CP Coke prices and caustic soda in Q2 will be slightly higher. Not much higher. Maybe it will go to INR 172 or INR 171. It depends on how much efficiency we are achieving.

Brijendra Pratap Singh: Q2 will slightly increase because CP Coke prices and caustic soda in Q2 will be slightly higher. Not much higher. Maybe it will go to INR 172 or INR 171. It depends on how much efficiency we are achieving.

Sumangal Nevatia: Understood. Just one last question, sir. When we are adding around less than a million tons of captive coal this year, what is the cost saving? What is the difference between the cost of captive coal versus what we are replacing, linkage or e-auction coal?

Abhay Kumar Behuria: Our cost of captive coal, which we are sourcing from our own mines, it is around landed cost is INR 6,000 per ton. If we compare this cost with our 2 type of coal we are taking from the Coal India. One is agreement, FSA linkage, fuel supply agreement. Another is through auction. FSA coal is around almost same range, in INR 1,700, INR 1,600, INR 1,700. If you see that auction coal, it is varying from INR 3,500 to INR 3,600. There is a difference in auction coal. If you see the FSA coal, FSA coal we are not regularly getting because of the rack supply. The auction coal is too higher than our captive coal. There is a great advantage between auction coal and our captive coal. Okay? That is INR 1,500 almost.

Abhay Kumar Behuria: If you see that auction coal, it is varying from INR 3,500 to INR 3,600. There is a difference in auction coal. If you see the FSA coal, FSA coal we are not regularly getting because of the rack supply. The auction coal is too higher than our captive coal. There is a great advantage between auction coal and our captive coal. Okay? That is INR 1,500 almost.

Sumangal Nevatia: Okay. Sir, last year, what is the breakup of our coal? How much was linkage and how much was e-auction?

Abhay Kumar Behuria: Last year, if you see linkage and e-auction.

Pankaj Kumar Sharma: Linkage and auction. Around 55, 45.

Abhay Kumar Behuria: Linkage and e-auction.

Pankaj Kumar Sharma: Yeah. Linkage and e-auction.

Abhay Kumar Behuria: Because out of total INR 7.2 million, INR 4 million is our own. We are taking INR 3.2 from Coal India. Out of INR 3.2 linkage and coal, e-auction kitna hoga linkage?

Pankaj Kumar Sharma: Linkage was around INR 34 million. INR 30 lakhs from our CPP and INR 10 lakhs from linkage. The auction coal, it was around INR 1 million. INR 1 lakh. INR 10 lakhs.

Abhay Kumar Behuria: Just we will check up the data and let you know.

Sumangal Nevatia: Sure, sir. That was my last question. I will wait for the answer and I will join back the queue. Thank you, sir.

Shalender: Thank you. The next question is from Mr. Digant Arya from Greenidge Wealth. Please go ahead.

Operator: Thank you. The next question is from Mr. Digant Arya from Greenidge Wealth. Please go ahead.

Digant Arya: Hi. Thank you for the opportunity. Sir, just two questions I had. One was on the aluminum metal price outlook, and because the Middle East war destroyed one or two big production factories. When they come back on stream, what happens? What is your expectation of aluminum metal prices? That's number 1. Number 2 is that, in recycled aluminum also, India is seeing a lot of investments. Does NALCO have any plans, and can that impact our sales going forward two, three years later? These are the two questions.

Digant Haria: Hi. Thank you for the opportunity. Sir, just two questions I had. One was on the aluminum metal price outlook, and because the Middle East war destroyed one or two big production factories. When they come back on stream, what happens? What is your expectation of aluminum metal prices? That's number 1. Number 2 is that, in recycled aluminum also, India is seeing a lot of investments. Does NALCO have any plans, and can that impact our sales going forward two, three years later? These are the two questions.

Abhay Kumar Behuria: Metal prices as of now it is $3,200. LME is 32. What forecasts are telling CRU and Platts and all that remaining part of the year, that will remain somewhere around 31, 32. We are also expecting somewhere in between 3,000 to 3,200 will be the LME in the remaining part of the year. Whatever smelters are supposed to come in the Middle East, that will be coming maybe by end at the Q4 of this financial year. These smelters will take some time more, 6, 7 months, 8 months more. Supply restrictions, there the projections are there. There will be a deficit of around 0.88 million tons of metal in the international market. If you see the production and consumption pattern, there is a deficit of around 0.88 million tons. LME will be there somewhere around $3,200.

Brijendra Pratap Singh: Metal prices as of now it is $3,200. LME is 32. What forecasts are telling CRU and Platts and all that remaining part of the year, that will remain somewhere around 31, 32. We are also expecting somewhere in between 3,000 to 3,200 will be the LME in the remaining part of the year. Whatever smelters are supposed to come in the Middle East, that will be coming maybe by end at the Q4 of this financial year.

Brijendra Pratap Singh: These smelters will take some time more, 6, 7 months, 8 months more. Supply restrictions, there the projections are there. There will be a deficit of around 0.88 million tons of metal in the international market. If you see the production and consumption pattern, there is a deficit of around 0.88 million tons. LME will be there somewhere around $3,200.

Digant Arya: Got it, sir.

Digant Haria: Got it, sir.

Abhay Kumar Behuria: Sir, just as far as recycling is concerned, we are talking about recycling. As far as NALCO is concerned, recycling basically is done for the secondary producers who are making small quantity. Since we are a major producer, so we don't go into a recycling because that also disturbs the quality of the metal we produce. In aluminum sector, the quality of the metal is very important, the purity of the aluminum. Whenever the recycling is done, the quality assurance is not there. Our plans for recycling is not there.

Brijendra Pratap Singh: Sir, just as far as recycling is concerned, we are talking about recycling. As far as NALCO is concerned, recycling basically is done for the secondary producers who are making small quantity. Since we are a major producer, so we don't go into a recycling because that also disturbs the quality of the metal we produce. In aluminum sector, the quality of the metal is very important, the purity of the aluminum. Whenever the recycling is done, the quality assurance is not there. Our plans for recycling is not there.

Digant Arya: Okay, sir. Thank you so much.

Digant Haria: Okay, sir. Thank you so much.

Abhay Kumar Behuria: Thank you.

Shalender: Thank you. The next question is from Mr. Akhilesh Kumar from MK. Please go ahead.

Operator: Thank you. The next question is from Mr. Akhilesh Kumar from MK. Please go ahead.

Akhilesh Kumar: Hi, sir. Thanks for taking my question.

Brijendra Pratap Singh: Sure.

Akhilesh Kumar: My first question is that, for this quarter, did we have any LME-linked contracts for alumina? If yes, how do we stand for the quarters ahead of us?

Brijendra Pratap Singh: Please, we could not get you. If you can repeat your question.

Akhilesh Kumar: Yes, sir. My question is on, did we have any LME linked contracts for alumina for Q1 of FY27 and if yes, then how do we stand for the quarters ahead of us?

Brijendra Pratap Singh: Term contract in Q1, I think in the beginning, one or two shipments happened. We have to see it. As of now, last two, three months, we are not having any. That we call as a term contract, which is linked to the LME. That is not there because we had a few tenders in which the percentage was very low. It was coming around 10% of the LME. That's why we canceled that tender, because spot prices we are getting better.

Akhilesh Kumar: Is it fair to say that for FY27 also, for the remaining of the year, we won't be having any term contracts?

Brijendra Pratap Singh: Actually, we go for the tender. We will be doing some tender. If we get the better prices, then only we'll go. Because as of now, if we are getting $370 and the percentage wise, if we get only 10%, 11%, so around 3,200 LME, that will come to maybe around $320. We don't order that. It totally depends on, we'll be doing tender. If we get the better prices around 12%, 13%, 14%, then only we'll book the order.

Akhilesh Kumar: Can you, sir, also explain how we are getting this $50 of premium versus our Q1 average, which you said was around $320 for alumina, and now for this quarter, you are expecting it to be $370. Why this differentiation, sir?

Brijendra Pratap Singh: Whatever premium I was talking, that was for metal, aluminium. Alumina, we are not. Alumina, whatever we are selling, that is a spot tender, fixed price. Suppose we are doing a spot tender, and on that spot tender, suppose we are getting $370 per ton or $350, whatever, that is a fixed price spot tender for shipment. That premium I was talking was for the metal, for aluminium. Whatever aluminium we are selling in the domestic market, on that we load some premium. That depends on whatever export. We do some export of the aluminium also. Some metal export also we do. We do 500,000 tons every month. In that export tender, whatever premium we are getting, that is loaded to the domestic customers.

Brijendra Pratap Singh: That premium I was talking was for the metal, for aluminium. Whatever aluminium we are selling in the domestic market, on that we load some premium. That depends on whatever export. We do some export of the aluminium also. Some metal export also we do. We do 500,000 tons every month. In that export tender, whatever premium we are getting, that is loaded to the domestic customers.

Akhilesh Kumar: Sure. Is it fair to say that for Q2, alumina realizations could be close to $360, $370 for NALCO?

Brijendra Pratap Singh: Yes. Already this month, July, we have spot tenders. August spot tender also, somewhere around $370 we are getting. Last spot tender, we have done two, three batch. That also we got $380. Q2 average, $370, I think we will be getting, Q2.

Akhilesh Kumar: Okay.

Brijendra Pratap Singh: Now, what we have mentioned, Q1 was around $323, next quarter we will be expecting $50 more. That is through spot tendering or term contract, whatever it will be. We are expecting that. The price trend what is now being prevailed, it will give us $50 more than our earlier realization. Q1.

Akhilesh Kumar: Got it. My second question is on the bauxite to alumina production. For this quarter, we have used kind of 3.2 tons of bauxite for 1 ton of alumina, which is efficient if we compare it to the last few quarters, which was at around 3.5 tons of bauxite. Any particular reason for this improvement? Can we expect this to sustain ahead also?

Brijendra Pratap Singh: It totally depends on the quality of bauxite we are getting from the mines. Basically, we have started a few new phases there in our mines. When the quality of bauxite is good, per ton consumption of bauxite, it goes down. In the coming days, because we are going to start South Block 2 also, where we will be getting better quality of bauxite. Now our North Block, which was a very old block, that is almost exhausted. We are starting some new phases where the bauxite quality will be better. Average specific consumption of bauxite will be getting better.

Akhilesh Kumar: Sure. Thank you so much. That's it from my end.

Shalender: Thank you. The next question-

Operator: Thank you. The next question-

Brijendra Pratap Singh: One query. Just one query was there on the linkage coal and all that. Our Director (Production) is there. He's going to answer that question.

Pankaj Kumar Sharma: Basically, for our CPP, we are utilizing linkage coal and Utkal D and E coal. Last year we have utilized 47.16 lakh coal from linkage, through MCL, and Utkal D and E, 40 lakh tons. We are taking coal through e-auction for our alumina refinery. Through linkage, last year we purchased 11.24 lakh tons through linkage and e-auction coal around 7 lakh. Approximately 40% coal of total coal used in refinery is purchased through e-auction and balance is through linkage. Thank you.

Shalender: Thank you, sir. Thank you. We have next question from Patanjali Srinivasan from Sundaram Mutual. Please go ahead.

Operator: Thank you, sir. Thank you. We have next question from Patanjali Srinivasan from Sundaram Mutual. Please go ahead.

Pathanjali Srinivasan: Hi. Thank you for the opportunity. I just wanted clarity on one of the-

Shalender: Excuse me, sir. Please be little bit louder, sir. Please.

Operator: Excuse me, sir. Please be little bit louder, sir. Please.

Pathanjali Srinivasan: Yeah. Am I audible now? Is it better? Yes, better.

Brijendra Pratap Singh: Yes. Good morning.

Pathanjali Srinivasan: Yeah. Good morning, sir. You had mentioned about this premiums for metal at around $110 currently. Can you tell us what was it in the last time when you had done the revision and what is the impact between then and now?

Brijendra Pratap Singh: Last time, we have done around five, six months back. At that time, we got the premium was around $60. Somewhere around $60.

Pathanjali Srinivasan: Okay. Based on what you're saying, your premium has only increased. I think in your presentation, you had mentioned something like premiums are declining or premiums are likely to reduce, war risk premium. Can you tell me the difference between the two?

Brijendra Pratap Singh: You see, the premium totally depends on the demand supply. If the demand is more, the supply is lesser, the premium we get better. Last time when the tender we did, at that time, the supply restrictions were there due to this war situation. Even the smelters in the Middle East, they are trying to increase the production. In the subsequent months when this eases out, the premium will go down.

Pathanjali Srinivasan: Okay, sir. Just one question. Your new alumina refinery that you are starting, what will be the difference in terms of cost of production versus your current plants? Because the current plants are much older, right?

Brijendra Pratap Singh: Cost of production in the expansion unit you're talking?

Pathanjali Srinivasan: Correct.

Brijendra Pratap Singh: We have calculated for our expansion unit fifth stream, the cost of production will not be much high because our average, if you see our current cost of production of alumina, last year it was around INR 20,000, but this year, Q1, we have got around INR 22,766 because of the increase in caustic soda and fuel oil, that is HFO. These were the two major contributors that has increased. In our new refineries, there is a fifth stream refinery. The advantage which we'll be getting is that is a pressure digestion, where the caustic soda consumption will be on the lower side. The caustic soda consumption in our existing refinery, which is around 103kg to 105kg per ton of alumina production. That should go down to around maybe 85kg to 90kg per ton of alumina consumption.

Brijendra Pratap Singh: In our new refineries, there is a fifth stream refinery. The advantage which we'll be getting is that is a pressure digestion, where the caustic soda consumption will be on the lower side. The caustic soda consumption in our existing refinery, which is around 103kg to 105kg per ton of alumina production. That should go down to around maybe 85kg to 90kg per ton of alumina consumption.

Brijendra Pratap Singh: That will reduce our cost by maybe, I think, by INR 1,000 or INR 1,500 per ton, as far as alumina cost is concerned, and other areas like manpower cost and all that, because that is a big unit, one line producing around 1 million tons. From four lines in the existing refinery, from four lines, we are producing 2.1 million tons. The fixed cost, that is the manpower cost, will also be on the lower side. Of course, the interest is not there. The depreciation will be loaded. Some depreciation will be loaded on the cost. What we have calculated, the overall cost of the existing refinery and the new refinery will be almost same. New refinery also, somewhere around INR 22,000, INR 23,000 will be the cost coming.

Brijendra Pratap Singh: The fixed cost, that is the manpower cost, will also be on the lower side. Of course, the interest is not there. The depreciation will be loaded. Some depreciation will be loaded on the cost. What we have calculated, the overall cost of the existing refinery and the new refinery will be almost same. New refinery also, somewhere around INR 22,000, INR 23,000 will be the cost coming.

Pathanjali Srinivasan: Got it, sir. Thank you, sir.

Brijendra Pratap Singh: Thank you.

Shalender: Thank you. The next question is from Palguni Dutta. Please go ahead.

Operator: Thank you. The next question is from Palguni Dutta. Please go ahead.

Palguni Dutta: Sir, I just have one question, just a clarification. Our current alumina capacity is 2.1 million ton, right?

[Analyst]: Sir, I just have one question, just a clarification. Our current alumina capacity is 2.1 million ton, right?

Brijendra Pratap Singh: Yes.

Palguni Dutta: Sir, after expansion, how much is this going to become?

[Analyst]: Sir, after expansion, how much is this going to become?

Brijendra Pratap Singh: You see, our current capacity is 2.1, Last year we produced around 2.3.

Palguni Dutta: Okay.

[Analyst]: Okay.

Palguni Dutta: We have done 0.2 excess of our capacity. With expansion, 1 million ton will be added. After expansion, we are targeting the rated capacity will be 3.1 million ton, We'll be targeting around maybe 3.2 or 3.3 million ton.

Brijendra Pratap Singh: We have done 0.2 excess of our capacity. With expansion, 1 million ton will be added. After expansion, we are targeting the rated capacity will be 3.1 million ton, We'll be targeting around maybe 3.2 or 3.3 million ton.

Palguni Dutta: Sir, this comes up when, this extra 1 million ton capacity?

[Analyst]: Sir, this comes up when, this extra 1 million ton capacity?

Brijendra Pratap Singh: 1 million ton, this year, only 0.2 million ton will be added. From next year onward, that is 2027, 2028.

Palguni Dutta: Okay. 2027, 2028, we will have a full 3.1 million ton.

[Analyst]: Okay. 2027, 2028, we will have a full 3.1 million ton.

Brijendra Pratap Singh: Yes.

Palguni Dutta: Obviously, as of now, we are selling what? Closer to 1 million, right?

[Analyst]: Obviously, as of now, we are selling what? Closer to 1 million, right?

Palguni Dutta: Last year, we sold around 1.4 million, 14 lakh tons. This year, we are planning 1.6. After this goes to the full capacity, because in our smelter, we require only 0.9, 0.95 million tons. The rest has to be sold in open market.

Brijendra Pratap Singh: Last year, we sold around 1.4 million, 14 lakh tons. This year, we are planning 1.6. After this goes to the full capacity, because in our smelter, we require only 0.9, 0.95 million tons. The rest has to be sold in open market.

Palguni Dutta: Next year we'll get extra 1 million tons.

[Analyst]: Next year we'll get extra 1 million tons.

Palguni Dutta: Yes.

Brijendra Pratap Singh: Yes.

Palguni Dutta: Okay.

[Analyst]: Okay.

Brijendra Pratap Singh: That has to be sold.

Palguni Dutta: Okay, sir. Thank you. That's all from my side. Sir, one more.

[Analyst]: Okay, sir. Thank you. That's all from my side. Sir, one more.

Brijendra Pratap Singh: Yes.

Shalender: Ma'am, please press one. Palguni, ma'am. Meanwhile, we will take Mr. Rajesh Majumdar from 360one Capital. Yeah, Palguni ma'am is back. Please go ahead.

Operator: Ma'am, please press one. Palguni, ma'am. Meanwhile, we will take Mr. Rajesh Majumdar from 360one Capital. Yeah, Palguni ma'am is back. Please go ahead.

Palguni Dutta: What was the cost of this 1 million ton new refinery?

[Analyst]: What was the cost of this 1 million ton new refinery?

Brijendra Pratap Singh: Around INR 5,600 crores.

Brijendra Pratap Singh: Around INR 5,600 crore.

Palguni Dutta: Okay. Fine, sir. Thank you. That's all from my side.

[Analyst]: Okay. Fine, sir. Thank you. That's all from my side.

Palguni Dutta: Thank you.

[Analyst]: Thank you.

Palguni Dutta: One more thing, sir, this is all through internal accrual, right?

[Analyst]: One more thing, sir, this is all through internal accrual, right?

Brijendra Pratap Singh: Yeah, it was internal accrual. No interest will be loaded. Depreciation only will be there.

Palguni Dutta: Okay. Thank you so much.

[Analyst]: Okay. Thank you so much.

Brijendra Pratap Singh: Thank you.

Shalender: Thank you. The next question is from Mr. Rajesh Majumdar. Please go ahead.

Operator: Thank you. The next question is from Mr. Rajesh Majumdar. Please go ahead.

Rajesh Majumdar: Yes, sir. Good morning, and thanks for the opportunity. I had a few questions on the bauxite alumina part. First of all, on the existing bauxite mine at Panchpatmali, what is the balance life of the Panchpatmali mine, and what is the reserve there? Potangi mine, what are you producing right now, and what is the capacity it can go up to next year?

Pankaj Kumar Sharma: At our Panchpatmali bauxite mine, we are having a reserve of around 110 million ton. In addition to that, we have acquired new mine, which is also having around 110, 120 million ton. If we take the present rate of this thing, around 8 million ton per year if we take, we can say that the balance life of our Panchpatmali bauxite mine will be approximately 15 to 20 years.

Rajesh Majumdar: Okay. I understand that the Potangi mines, the bauxite quality is better due to which the cost of production for the new alumina expansion is going to be lower. Is that correct?

Pankaj Kumar Sharma: Please repeat.

Rajesh Majumdar: I'm saying that the quality of bauxite, which is going to be mined from the Potangi mine is going to be incrementally positive for the cost of alumina production going forward. Is that correct?

Pankaj Kumar Sharma: Basically, the quality of bauxite at Potangi mine, we will come to know after detailed exploration and all, after development of mine. At this point of time, we cannot be 100% sure that we will be getting that advantage.

Rajesh Majumdar: Okay. How are you assuming that the caustic soda requirement for the new expansion will be lower based on the plant specification, not on the bauxite, is it? The caustic soda.

Pankaj Kumar Sharma: Basically, for this year, we will be feeding bauxite from our existing mine to the new fifth stream. Once the production of Potangi bauxite mine starts, then only we will be using Potangi mine bauxite. This bauxite both will be mixed and proportionately will be used in our fifth stream as well as in old stream.

Rajesh Majumdar: The cost of production is likely to fall further with the Potangi mines being operational fully. Is that correct?

Pankaj Kumar Sharma: I think more or less it will be same.

Brijendra Pratap Singh: Yes, because you see when the new mines are operated, the quality is better. When the mines become older, we go deeper, the quality is deteriorating. This will be a new mine, so the quality will be getting better. In our new refinery, which is coming out with the pressure digestion with the new technology, there the caustic soda consumption advantage we'll be getting due to the new technology in the refineries.

Rajesh Majumdar: Right. Thank you. I wanted to ask on the alumina realization one question, because we track something on the LME, which is a different number from the one you get on the $370, because LME average for last quarter is $320, $325, but you've got $370. Could you tell us which countries the broad breakup of the exports are, and why is there a difference between the LME and your realization?

Brijendra Pratap Singh: As far as you're talking about alumina?

Rajesh Majumdar: Alumina, yes.

Brijendra Pratap Singh: Alumina is not directly linked with the LME. It totally depends on the demand supply of the alumina. Earlier we used to get from, if you compare to LME, it was we are getting around 14%, 15%. Now it has come down to 10% to 11%. Most of our alumina are going to the Middle East as of now also. Around 60% to 70% of the alumina is going to Middle East by some route or other. Few of the aluminas are also going to maybe Europe, some China shipments are going. Actually, what is happening is the bauxite prices has gone up also slightly, New Guinea due to rains and all that. In Rusal, Russia and also China, two of the major refineries, they have curtailed the production of alumina because of the red mud issues there.

Brijendra Pratap Singh: Actually, what is happening is the bauxite prices has gone up also slightly, New Guinea due to rains and all that. In Rusal, Russia and also China, two of the major refineries, they have curtailed the production of alumina because of the red mud issues there. Some temporary supply restrictions are there, which has caused to the increase in alumina spot prices to the level of $370, $380, which we are seeing with the easing out of this war situation and supply requirements in the requirement of alumina in the Middle East. It will continue to the same level.

Brijendra Pratap Singh: Some temporary supply restrictions are there, which has caused to the increase in alumina spot prices to the level of $370, $380, which we are seeing with the easing out of this war situation and supply requirements in the requirement of alumina in the Middle East. It will continue to the same level.

Rajesh Majumdar: Right. On the long term, the alumina prices will bear towards 14%, 15% of LME. Is that right assumption as the production comes back in aluminum? Is that the right assumption?

Brijendra Pratap Singh: 14%, 15%, maybe 11%, 12%, because LME on the higher side. LME is around $3,200, $3,300. Alumina, if you see percentage wise, it not go more than 11% to 12%.

Rajesh Majumdar: Right. Sir, my last question was on the net debt. Did you mention that the net debt is INR 10,000 crore now?

Brijendra Pratap Singh: Net debt?

Rajesh Majumdar: Net cash, sir.

Brijendra Pratap Singh: That is a cash reserve. We are zero debt company.

Rajesh Majumdar: No, what is the net cash as on the balance sheet as of Q1? Cash minus net debt.

Brijendra Pratap Singh: That is around INR 10,500.

Abhay Kumar Behuria: That is around INR 10,500.

Rajesh Majumdar: That means that through the year, even after your dividend payments, you'll end up with a INR 15,000 crore kind of cash. Is that a correct number?

Brijendra Pratap Singh: Pardon?

Rajesh Majumdar: If you see the balance cash flows and the CapEx. I'm saying if you see the balance cash flow for FY 2027.

Brijendra Pratap Singh: Just our director finance will explain you every year how much we'll be adding in the cash.

Abhay Kumar Behuria: No, we have a balance of INR 10,500 now. Every year, seeing our profitability and the PAT, we are adding INR 3,500 plus because we are expecting an earning PAT of INR 6,000 plus. This year also, we are projecting to earn INR 6,000 plus, and next year onwards also. After paying our dividend and our normal CapEx expenditure around INR 1,500 crore, and the non-cash item will be added to that PAT, we'll be adding INR 3,500 plus every year. When our CapEx funding will be there, we will have a sufficient cash reserve with us, so we can easily finance our requirement through our internal accruals, okay.

Rajesh Majumdar: That CapEx on the smelter will be approximately what, INR 4,000, INR 5,000 crores per annum?

Rajesh Majumdar: That CapEx on the smelter will be approximately what, INR 4,000, INR 5,000 crore per annum?

Abhay Kumar Behuria: Yes. We have already explained that for a power plant, we have gone for a JV. Requirement of fund will be lesser there because that will be funded through debt-equity ratio, debt 30-70. The balance in our smelter part will be funding through our internal accruals only. We need not go to the market for borrowing for our smelter expansion, seeing our cash reserve and our future earning potential.

Rajesh Majumdar: Sir, one last question, if I could sneak in. The capacity of the aluminium right now on the 960 pots we are operating is 4.6 lakh tons. Is there a possibility of any brownfield kind of growth there, or it will be limited to 460 only? Like in the case of alumina, you have gone 2.1 and maybe 2.3.

Abhay Kumar Behuria: Although we are having capacity of 4.6 lakh tons, last year we have produced around 4.72, this year also we are expecting we will be producing around 4.76, 4.77 lakh tons.

Rajesh Majumdar: Realistically you can go up slightly more.

Abhay Kumar Behuria: As on date, we are operating around 958, 959 pots.

Rajesh Majumdar: Okay. realistically, you can go to 4.75 kind of number totally in aluminium.

Abhay Kumar Behuria: Yes. 4.75 we are expecting.

Brijendra Pratap Singh: Yes. 4.75 we are expecting.

Rajesh Majumdar: Thank you so much.

Shalender: Thank you, sir. There are no further questions from the participants, I now hand the conference over to Mr. Bharat Kumar Sahu for closing comments. Please go ahead, sir.

Operator: Thank you, sir. There are no further questions from the participants, I now hand the conference over to Mr. Bharat Kumar Sahu for closing comments. Please go ahead, sir.

Bharat Kumar Sahu: Yeah. Thank you, Mr. Shailendra. On behalf of NALCO, I thank all the esteemed participants who took out their valuable time and participated in this earning call of NALCO. This shows your keen interest in the business activities of NALCO, and also in the future, we expect a similar kind of cooperation from your side. Thank you, Chorus team, for facilitating this post-earning call for this Q1 results of NALCO. I also thank Systematix Group for continuously hosting this post-earning call of NALCO on a quarterly basis, and we solicit similar kind of cooperation in future also. Thanks. Thank you all.

Rajesh Majumdar: Thank you.

Brijendra Pratap Singh: Thank you.

Shalender: Thank you. On behalf of NALCO Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of NALCO Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 National Aluminium Co Ltd Earnings Call

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