Q1 2027 Godawari Power and Ispat Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good evening. Welcome to the Godawari Power and Ispat Ltd. Q1 FY27 earnings conference call, hosted by Monarch Network Capital. 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.

Operator: Ladies and gentlemen, good day, and welcome to the Godawari Power & Ispat Limited Q1 FY27 earnings conference call hosted by Monarch Networth Capital. 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 touch-tone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Sahil Sanghi from Monarch Networth Capital. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to the Godawari Power & Ispat Limited Q1 FY27 earnings conference call hosted by Monarch Networth Capital. 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 touch-tone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Sahil Sanghvi from Monarch Networth Capital. Thank you, and over to you, sir.

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

Speaker #1: I now hand the conference over to Mr. Sahil Sanghvi from Monarch Network Capital. Thank you, and over to you, sir.

Speaker #2: Okay, thank you, Shriti. Good afternoon, everyone. It is a pleasure to welcome you on behalf of Godawari Power and Ispat Ltd. Please note that today's discussion may include certain forward-looking statements and, therefore, must be viewed in conjunction with the risks that the company faces.

Sahil Sanghi: Yeah. Thank you, Shruti. Good afternoon, everyone. It is a pleasure to welcome you on behalf of Godawari Power & Ispat Limited. Please note that today's discussion may include certain forward-looking statements, and therefore must be viewed in conjunction with the risk that the company faces. Today we are joined by Mr. Abhishek Agrawal, Executive Director, Mr. Dinesh Gandhi, Executive Director, and Mr. Sanjay Bothra, Chief Financial Officer. May I now please invite the management to present on the company's business outlook and performance. After which, we will open the floor for Q&A. Thank you, and over to the management, please.

Sahil Sanghvi: Yeah. Thank you, Shruti. Good afternoon, everyone. It is a pleasure to welcome you on behalf of Godawari Power & Ispat Limited. Please note that today's discussion may include certain forward-looking statements, and therefore must be viewed in conjunction with the risk that the company faces. Today we are joined by Mr. Abhishek Agrawal, Executive Director, Mr. Dinesh Gandhi, Executive Director, and Mr. Sanjay Bothra, Chief Financial Officer. May I now please invite the management to present on the company's business outlook and performance. After which, we will open the floor for Q&A. Thank you, and over to the management, please.

Speaker #2: Today we are joined by Mr. Abhishek Agrawal, Executive Director. Mr. Dinesh Gandhi, Executive Director, and Mr. Sanjay Botra, Chief Financial Officer. May I now please invite the management to present on the company's business outlook and performance after which we will have the we will have we will open the floor for Q&A.

Speaker #2: Thank you, and over to the management, please.

Speaker #3: Okay, thank you, Sahil. Good afternoon, everyone. Thank you for joining us on today's call. Our financial results and earnings presentation have been uploaded to the stock exchanges and our website. I trust you have had an opportunity to review them.

Dinesh Gandhi: Okay. Thank you, Sahil. Good afternoon, everyone. Thank you for joining us on today's call. Our financial results and earnings presentation have been uploaded to the stock exchanges and our website. I trust you have had an opportunity to review them. I will briefly walk you through the key highlights of the results and progress on various projects, following which we will open the floor for Q&A. GPIL has made a steady start to FY27, delivering resilient performance in Q1 FY27, supported by healthy revenue growth, improved sales realization, stronger realization across key product segments. Sequentially, profitability was impacted by higher input costs, driven by increased iron ore sourcing from the market and elevated coal prices following West Asia crisis. These pressures are expected to ease upon commissioning of beneficiation plant, enabling higher captive mining, improved raw material availability, and enhanced cost efficiency.

Speaker #3: I will briefly walk you through the key highlights of the results and progress on various projects, following which we will open the floor for Q&A.

Speaker #3: GPIL has made a strong start to FY27, delivering resilient performance in Q1 FY27, supported by healthy revenue growth, improved sales realization, and stronger realization across key product segments.

Speaker #3: Sequentially, profitability was impacted by higher input costs, driven by increased R&R sourcing from the market and elevated coal prices following the West Asia crisis. These pressures are expected to ease with the commissioning of beneficiation plants, enabling higher captive mining, improved raw material availability, and enhanced cost efficiencies.

Speaker #3: Coming to the operational performance, our R&R mining volume declined primarily due to space constraints for dumping of overburden. In view of delays in obtaining tea cutting permission in the additional allotted land, this resulted in higher market procurement of R&R for pellet production, leading to elevated input cost.

Dinesh Gandhi: Coming to the operational performance, our iron ore mining volume declined primarily due to space constraints for dumping of overburden in view of delaying obtaining tree-cutting permission in the additional allotted land. This resulted in higher market procurement of iron ore for pellet production, leading to elevated input costs. Despite this, production grew YoY across product categories, except iron ore mining and galvanized products. On a QoQ basis, production remained subdued across most segments, with sponge iron and wire rods being key exceptions. We remain on track to deliver our FY27 guidance with Q1 volume achieving between 16% to 29% of full year guidance. Our value-added product also recorded healthy YoY growth in Q1, led by sponge iron, billet, and rolled production. This is further supported by improved realization of most of the products, both on YoY and quarter-on-quarter basis, contributing to healthy revenue growth during the quarter.

Speaker #3: Despite this, production grew year-over-year across product categories, except R&R mining and galvanized products. On a period-over-period basis, production remained subdued across most segments, with sponge iron and wire ferroalloys being key exceptions.

Speaker #3: We remain on track to deliver our FY27 guidance, with Q1 volume achieving between 16% to 29% of full-year guidance. Our evaluated product also recorded healthy year-on-year growth in Q1, led by sponge iron, billet, and gold production. This was further supported by improved realization of most of the products, both on a year-on-year and quarter-on-quarter basis, contributing to healthy revenue growth during the quarter.

Speaker #3: Talking about the consolidated financial performance, Q1 FY27 revenue recorded both year-over-year and sequential growth, supported by healthy source volume and improved realization. EBITDA and PAT remained broadly stable year-over-year, although profitability softened sequentially due to elevated input costs, primarily on account of higher procurement of R&R from the market and coal prices.

Dinesh Gandhi: Talking about the consolidated financial performance, Q1 FY27 revenue recorded both YoY and sequential growth, supported by healthy sales volume and improved realization. EBITDA and PAT remained broadly stable YoY, although profitability softened sequentially due to elevated input costs, primarily on account of higher procurement of iron ore from market, and coal prices. EBITDA and PAT margin stood at 19.1% and 12.7%, respectively. We expect margin improvement from Q4 FY27 following commissioning of the beneficiation plant, enabling greater utilization of captive iron ore pellets. Now, coming on our key growth projects. The Ari Dongri iron ore mine expansion is progressing as planned, with ramp-up expected from Q3 following commissioning of the beneficiation plant and full-scale operation targeted from FY28. The beneficiation plant will strengthen the captive mine's iron ore security and improve ore quality for pellet production. CAPEX of INR 218 crore incurred in the beneficiation plant till June 2026.

Speaker #3: EBITDA and PAT margin stood at 19.1% and 12.7%, respectively. We expect margin improvement from Q4 FY27, following commissioning of beneficiation plant, enabling greater utilization and captive R&R pellets.

Speaker #3: Now, coming to our key growth projects, the Ari Dongri R&R mine expansion is progressing as planned, with ramp-up expected from Q3, following commissioning of the beneficiation plant, and full-scale operation targeted from FY28.

Speaker #3: The beneficiation plant will strengthen the captive R&R security and improve ore quality for pellet production. Capex of ₹100 to ₹118 crore was incurred in the beneficiation plant till June 26.

Speaker #3: The 4.7 million ton expanded pellet capacity operated at 77% utilization in Q1, and is expected to ramp up to around 80–85% in FY27 as the operations scale up.

Dinesh Gandhi: The 4.7 million tons expanded pellet capacity operated at 77% utilization in Q1 and is expected to ramp up to around 80%-85% in FY27 as the operations will scale up. As regards our integrated steel plant and CRM projects, the company has decided to keep the proposed 1 million tons integrated steel project in abeyance due to on-ground challenges and delays in the approval, especially the approval for water allocation, which resulting in delay in final EC and consequently, the consent to set up the integrated steel plant. Consequently, in order to leverage the benefit of state incentives and subsidies, synergies from proximity of base plant, the 0.7 million tons CRM complex is supposed to be relocated to Maharashtra near Sambhaji Nagar. The identification land for the proposed CRM project has been completed, and application for allotment of land has been submitted to Government of Maharashtra.

Speaker #3: As regards our integrated steel plant and CRM projects, the company has decided to keep the proposed 1 million ton integrated steel project in abeyance due to on-ground challenges and delays in approval, especially the approval for water allocation, which is resulting in delay in final EC and consequently the consent to set up the pellet plant.

Speaker #3: Consent to set up the integrated steel plant. Consequently, in order to leverage the benefit of state incentives and subsidies, and synergies from proximity of the base plant, the 0.7 million ton CRM complex is proposed to be relocated to Maharashtra, near Sambhaji Nagar.

Speaker #3: The identification of land for the proposed CRM project has been completed, and the application for allotment of land has been submitted to the Government of Maharashtra. We expect the land allotment approval by the end of August '26.

Dinesh Gandhi: We expect the land allotment approval by end of August 2026. The project construction activities are expected to start from October 2026. The project is now targeted to be commissioned by December 2027, with plant CAPEX of INR 1,100 crore to be funded through INR 550 crore of debt and balance through internal accruals. The 20-gigawatt BESS project is progressing well and is scheduled for commissioning in Q1 2028. Soil testing has been completed. Construction of the compound wall is underway. Key supply agreements for major equipment and raw materials have been finalized, including long-term sale procurement, keeping the project execution on track. The project is also supported by incentives from the Government of Maharashtra. We have already incurred a CAPEX of INR 501 crore till date in the project.

Speaker #3: The project construction activities are expected to start from October 2026. The project is now targeted to be commissioned by December 2027, with plant capex of ₹1,100 crore to be funded through ₹550 crore of debt and the balance through internal accruals.

Speaker #3: The 20-gigawatt base project is progressing well and is scheduled for commissioning in Q1 '28. Soil testing has been completed, construction of the compound wall is underway, and key supply agreements for major equipment and raw materials have been finalized, including long-term sale procurement, keeping the project execution on track.

Speaker #3: The project is also supported by incentives from the government of Maharashtra. We have already incurred a capex of ₹501 crore to date in the project.

Speaker #3: As regards the expansion of solar projects, capacity from 165 to 290 megawatt, the R&R mines, and additional 2 million ton pellet plant for captive use, the 25 megawatt solar plant has been commissioned in May 2026, and 100 megawatt project is under construction, targeted for commissioning by September 2026.

Dinesh Gandhi: As regards the expansion of solar projects, capacity from 165 to 290 megawatt, the iron ore mines, an additional 2 million tons pellet plant for captive use. The 25-megawatt solar plant has been commissioned in May 2026, and the 100-megawatt project is under construction, targeted for commissioning by September 2026. The proposed 250-megawatt solar project has been kept in abeyance due to relocation of CRM project to Maharashtra, in which the solar power was supposed to be consumed, and also the delay in land allotment for the solar project. The 45-megawatt BESS project for storage of captive solar power plants under implementation and targeted for commissioning by Q3 2027. Targeted for commissioning by Q3 2026, not 2027. Sorry. Upon completion of plant projects, the captive solar power capacity will reach to 290 megawatt, and solar storage capacity will reach to 45 megawatt.

Speaker #3: The proposed 250-megawatt solar project has been kept in abeyance due to the relocation of the CRM project to Maharashtra, in which the solar power was proposed to be consumed, and also due to the delay in land allotment for the solar project.

Speaker #3: The 45-megawatt base project for storage of captive solar power plants is under implementation and targeted for commissioning by Q3 '27. It should be targeted for commissioning by Q3 '26, not '27.

Speaker #3: Sorry. Upon completion of the plant project, the captive solar power capacity will reach 290 megawatts, and solar storage capacity will reach 45 megawatts.

Speaker #3: The Crescent has reaffirmed the credit rating of the company at AA minus, stable, for long-term facilities. I am also pleased to mention that GPIL has been recognized among India’s 500 most valuable companies in 2025, Burgundy Private, Haroon India List 500 list, reflecting growing scale, strong business fundamentals, and sustained value creation.

Dinesh Gandhi: CRISIL has reaffirmed the credit rating of the company at AA- Stable for long-term facilities. I am also pleased to mention that GPIL has been recognized among India's 500 Most Valuable Companies in 2025, Burgundy Private Hurun India list, 500 list, reflecting growing scale, strong business fundamentals, and sustained value creation. On ESG front, the company has completed initiative under energy efficiency and decarbonization program. The 6.9 MW WHRB plant has commenced commercial production, taking total WHRB capacity to 49 MW. GPIL is also advancing its decarbonization efforts. Through 5 TPD carbon capture utilization project in collaboration with IIT Bombay, for which civil work is underway and completion targeted by end of FY27.

Speaker #3: On the ESG front, the company has completed initiatives under its energy efficiency and decarbonization program. The 6.9 megawatt WRHB plant has commenced commercial production, taking total debris capacity to 49 megawatts.

Speaker #3: GPIL is also advancing its decarbonization efforts through a 5 TPD carbon capture utilization project in collaboration with IIT Mumbai, for which civil work is underway and completion is targeted by the end of FY27.

Speaker #3: The company has demonstrated a strong focus on reducing carbon intensity, with CO2 emission per ton of steel tracked under two internationally recognized frameworks: the Carbon Border Adjustment Mechanism (CBAM), calculated and independently assessed by SGS, and the World Steel Association ISO 14064 standard. Under the CBAM methodology, based on the total carbon emissions intensity, the figure is 2 to 3.180 tons of CO2 in Q1 FY27, improving 1.9 percent quarter-on-quarter and 4.2 percent year-on-year from 3.244 tons. Under the World Steel Association methodology, based on fixed carbon emissions intensity, it is 2 to 2.485 tons CO2 per ton of steel produced in Q1 FY27, remaining broadly stable quarter-on-quarter and year-on-year, as against a target of 2.4920 set by the Government of India.

Dinesh Gandhi: The company has demonstrated a strong focus on reducing carbon intensity with CO2 emission per ton of steel trend under two internationally recognized framework: Carbon Border Adjustment Mechanism, CBAM, calculation independently assessed by SGS and World Steel Association, ISO 14064 standard. Under CBAM technology, based on the total carbon basis, emission intensity stood at 3.180 CO2 ton in Q1 FY27, improving 1.9% quarter-on-quarter and 4.2% YoY from 3.244 ton fixed carbon. Under the World Steel Association methodology, based on fixed carbon basis, emission intensity stood at 2.485 ton CO2 per ton of steel production in Q1 FY27, remaining broadly stable quarter-on-quarter and YoY, as against target of 2.4920 fixed by Government of India.

Speaker #3: Overall, Q1 FY27 reflects improved carbon efficiency under the CABM framework, while WSA-based emissions remain stable. As part of its transition towards greener operations, GPIL has added five new dumpers during the quarter, taking the fleet to 15 EV dumpers, 24 EV loaders, and 15 EV excavators.

Dinesh Gandhi: Overall, Q1 FY27 reflects improved carbon efficiency under CBAM framework, while WSA base emission remained stable. As a part of its EV transition towards greener operations, GPIL has added 5 new dumpers during the quarter, taking fleet to 15 EV dumpers, 24 EV loaders and 15 EV excavators. The adoption of electric transportation has reduced operating cost by nearly 75%, CO2 emission by around 88% as compared to the conventional diesel vehicle. Now, coming on the market outlook. India's iron ore production is expected to rise to 8%, to 340 to 345 million tons during FY27, with most incremental supply coming from captive mines. While pellet production stood at provisionally 120 million tons in FY26, up from 109 million metric tons in FY25, led by Odisha and Maharashtra.

Speaker #3: The adoption of electric transportation has reduced operating costs by nearly 75 percent and CO2 emissions by around 88 percent as compared to conventional diesel vehicles.

Speaker #3: Now, coming to the market outlook, India's iron ore production is expected to rise by 8 percent to 340–345 million tons during FY27, with most incremental supply coming from captive mines, while pellet production is provisionally estimated at 120 million tons in FY27.

Speaker #3: In FY26, up from 109 million metric tons in FY25, led by Odisha and Maharashtra. The demand remains supportive, driven by rising steel production and higher pellet use, with a shift towards higher-grade DR grade pellets. However, industry utilization remains constrained at 65 percent due to wood exports, limited high-growth availability, and margin pressure.

Dinesh Gandhi: The demand remains supportive, driven by rising steel production, higher pellet usage with shift towards higher DR grade pellets. However, industry utilization remains constant at 65% due to reduced exports, limited high-grade availability, and margin pressures. Globally, iron ore prices remain resilient, close to about $95 to $105 tons, supported by healthy mill margin and inventory restocking despite peaking Chinese steel consumption. While additional low-cost supply from Guinea's Simandou project presents downside risk, historically, iron ore prices broadly remain stable, closer to about $5,500 range, ex-Mine. While pellet prices are in the range of $9,000 to $11,000 per ton, with current levels at around INR 10,000 a ton. Meanwhile, India's steel demand outlook remains strong, supported by infrastructure, housing, railway, and manufacturing investments.

Speaker #3: Globally, iron ore prices remain resilient, close to about $95 to $105 per ton, supported by healthy mill margins and inventory restocking despite peaking Chinese steel consumption.

Speaker #3: While additional low-cost supply from the nearby Cimandu project presents downside risk, iron ore prices broadly remain stable, closer to about 5,500 range. While pellet prices are in the range of 9,000 to 11,000 per ton.

Speaker #3: With current levels at around ₹10,000 a ton, meanwhile, India's steel demand outlook remains strong, supported by infrastructure, housing, railway, and manufacturing investments. In conclusion, I would like to mention that, backed by strong captive mining assets, a strong balance sheet, ongoing capacity expansion, and focus on ESG and cost optimization, GPIL remains well-positioned to drive sustainable long-term value creation.

Dinesh Gandhi: In conclusion, I would like to mention that led by strong captive mining assets, strong balance sheet, ongoing capacity expansion, and focus on ESG and cost optimization, GPIL remains well-positioned to drive sustainable long-term value creation. With clear roadmap and strong execution focus, company remains confident of achieving its Vision 2030 targets of 4X increase in revenue, 3X growth in EBITDA and PAT. We remain committed to delivering on our growth ambition and creating value for all stakeholders. With this, I would like to conclude my opening remarks and open the floor for Q&A. Thank you, and over to you, moderator.

Speaker #3: With clear roadmap and strong execution focus, company remains confident of achieving its vision 2030 targets of 4X, increasing revenue 3X, growth in EBITDA and PET.

Speaker #3: We remain committed to delivering on our growth ambition and creating value for our stakeholders. With this, I would like to conclude my opening remarks and open the floor for Q&A.

Speaker #3: Thank you, and over to you, Moderator.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone.

Dinesh Gandhi: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use hands up while asking questions. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Manav Gohil from Yes Securities Limited. Please proceed.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use hands up while asking questions. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Manav Gogia from YES Securities Limited. Please proceed.

Speaker #1: If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use a handset for asking questions.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mana Goya from Yes Securities Limited. Please proceed.

Manav Gohil: Yeah, hi. A very good afternoon, and thank you for the opportunity. My first question comes around the steel plant that now is getting delayed again. Just wanted to get your sense of if you could help me in understanding, are there any specific milestones or conditions that need to be satisfied before the board revives this project? Also now going ahead, should we continue to build the steel plant into the company's medium-term expectations, or should now we view it as an optional growth project rather than a committed CapEx plan?

Manav Gogia: Yeah, hi. A very good afternoon, and thank you for the opportunity. My first question comes around the steel plant that now is getting delayed again. Just wanted to get your sense of if you could help me in understanding, are there any specific milestones or conditions that need to be satisfied before the board revives this project? Also now going ahead, should we continue to build the steel plant into the company's medium-term expectations, or should now we view it as an optional growth project rather than a committed CapEx plan?

Speaker #2: Yeah, hi. Very good afternoon, and thank you for the opportunity. So, my first question is about the steel plant, which is now getting delayed again.

Speaker #2: So I just wanted to get your sense of if you could help me in understanding: Are there any specific milestones or conditions that need to be satisfied before the board revives this project?

Speaker #2: And also, going ahead, should we continue to build the steel plant into the company's medium-term expectations, or should we now view it as an optional growth project rather than a committed capex plan?

Speaker #3: Good morning. So, on the first question, the milestone that we expected was the water allocation. Earlier, we were given an LOI by the state government for the water allocation.

Dinesh Gandhi: Good morning. On the first question, the milestone which we expect was the water allocation. Earlier, we were given a LOI by the state government for the water allocation. Once we got back to them for the confirmation letter

Abhishek Agrawal: Good morning. On the first question, the milestone which we expect was the water allocation. Earlier, we were given a LOI by the state government for the water allocation. Once we got back to them for the confirmation letter, there were challenges, because of which the entire water allotment of 9.4 something MCM has been delayed. It's been almost six, eight months now. That is the reason the project has been kept on hold. From an investor's angle, I think you should keep the steel plant as an optional now for the medium-term growth.

Speaker #3: But once we got back to them for the confirmation letter, there were some challenges, because of which the entire water allotment of 9.4-something MCM has been delayed. It has almost been six to eight months now.

Abhishek Agrawal: There were challenges, because of which the entire water allotment of 9.4 something MCM has been delayed. It's been almost six, eight months now. That is the reason the project has been kept on hold. From an investor's angle, I think you should keep the steel plant as an optional now for the medium-term growth.

Speaker #3: So that is the reason the project has been kept on hold. And from an investor’s angle, I think you should keep the steel plant as an option now for the medium-term growth.

Speaker #2: Okay, so we are keeping it as optional?

Manav Gohil: Okay. We are keeping it as an optional for now.

Manav Gogia: Okay. We are keeping it as an optional for now.

Speaker #3: Yes. So until we get the water approval and all, we really don't know what's going to happen. So it's better to keep it as an option for now, the steel plant.

Abhishek Agrawal: Yes. Till the time we don't get the water approval and all, we really don't know what's going to happen. Better to keep it as an option now, the steel plant.

Speaker #2: Okay, no, no, that is quite clear. But just a follow-up on the same, because you know, your slide on the Vision 2030—the numbers over there for revenue and EBITDA—I believe that still includes any, you know, commitments coming in from the steel plant.

Manav Gohil: Okay. No, that is quite clear. Just to follow up on the same, because your slide on the Vision 2030, the numbers over there for revenue and EBITDA, I believe that still includes any commitments coming in from the steel plant. How should that Vision 2030.

Manav Gogia: Okay. No, that is quite clear. Just to follow up on the same, because your slide on the Vision 2030, the numbers over there for revenue and EBITDA, I believe that still includes any commitments coming in from the steel plant. How should that Vision 2030.

Speaker #2: So, how should that vision 2030 be approached?

Speaker #3: No, no, no. That does not, no. That doesn't include—it’s mainly on the CRN complex, which will get commissioned in Q3 of FY27, which is December '27.

Abhishek Agrawal: No, that doesn't include. It's mainly on the CRM complex, which will get commission in Q3 of FY27, which is December 2027, and the battery storage project, which is well on track. We've revised the guidance. If you see our earlier presentation, it was 4x and the EBITDA level. Now we have removed the steel part from that entire investor presentation. Yes, we have.

Speaker #3: And the battery storage project, which is well on track. So, we have revised the guidance. If you see the earlier presentation, it was 4x at the EBITDA level.

Speaker #3: But now we have removed the steel part from that entire investor presentation. Yes, we have.

Speaker #2: Okay. No, no, that is quite helpful. So, second question comes on just pertaining to these challenges that we are seeing out for the steel plant.

Manav Gohil: Okay. No, that is quite helpful. Second question comes on just pertaining to these challenges that we are seeing out for the steel plant. This doesn't have any impact on the rest of the projects, like the BESS or the CRM mill, because now the CRM mill-

Manav Gogia: Okay. No, that is quite helpful. Second question comes on just pertaining to these challenges that we are seeing out for the steel plant. This doesn't have any impact on the rest of the projects, like the BESS or the CRM mill, because now the CRM mill—

Speaker #2: This doesn't have any impact on the rest of the projects, like the BEST or the CRM mill, because now the CRM is shifting towards Maharashtra.

Abhishek Agrawal: No, see-

Manav Gohil: is now shifting towards Maharashtra.

Manav Gogia: —is now shifting towards Maharashtra.

Speaker #3: See, because CRM was coming on the same land as the steel plant, and we're not getting the desired approval for the water allotment. So, that is the reason we have decided to take this step and move the CRM complex to Maharashtra.

Abhishek Agrawal: CRM was coming on the same land as the steel plant, and we're not getting the desired approval for the water allotment. That is the reason we have decided to take this step and move CRM complex to Maharashtra. Maharashtra, again, we have opted for AURIC Industrial Belt, where it's a plug-and-play model, just like the battery storage. Land allotment will happen by end of this month. As Mr. Gandhi said, we should commence the activities on ground by October. CRM, there is a delay of almost six months, but CRM will be on track and please consider steel plant as in hold as of now, for medium-term.

Speaker #3: In Maharashtra, again, we have opted for the Auric Industrial Belt, where it's a plug-and-play model, just like the battery storage. Land allotment will happen by the end of this month.

Speaker #3: And as you said, Gandhi said we should commence the activities on ground by October. So, CRM, there is a delay of almost six months, but CRM will be on track.

Speaker #3: And please consider the steel plant as on hold as of now for the medium term.

Speaker #2: Okay, understood. So just a follow-up on the CRM: we are now moving closer to our BESS facilities, right? So what benefits will take place, either for the CRM complex or for BESS, in terms of cost?

Manav Gohil: Okay. Understood. Just a follow-up on the CRM. We are now moving closer to our BESS facilities, right?

Manav Gogia: Okay. Understood. Just a follow-up on the CRM. We are now moving closer to our BESS facilities, right?

Abhishek Agrawal: Yes.

Manav Gohil: What benefits will take place either for the CRM complex or for BESS in terms of cost? I mean, from moving the product from Chhattisgarh to Maharashtra or just now moving the plant directly over there.

Manav Gogia: What benefits will take place either for the CRM complex or for BESS in terms of cost? I mean, from moving the product from Chhattisgarh to Maharashtra or just now moving the plant directly over there.

Speaker #2: I mean, from moving the product from Chhattisgarh to Maharashtra, or just now moving the plant directly over there.

Speaker #3: See, on the battery storage side, it was always planned in Maharashtra only. So, there are no changes in the battery storage project from day one.

Abhishek Agrawal: On the battery storage side, it was always planned in Maharashtra only. There are no changes in the battery storage project from day one. On the CRM side, the additional advantage, what we envisaged is, the local consumption of the value-added steel which we're going to be producing. Maharashtra being an automobile hub. A lot of our products will be consumed in automobile. We expect a demand growth local in Maharashtra, which will add to the benefit of CRM. For raw material, there is a lot of supply like JSW is there in Dolvi, then there is ArcelorMittal in Gujarat. We don't see a challenge in procurement of HR coil. On the consumption side, Maharashtra is a big state for the consumption. That is why the industrial policy of Maharashtra government is giving us those benefits in terms of SGST and other things.

Speaker #3: On the CRM side, the additional advantage, what we understand is, you know the local consumption of the valued steel which we're going to be producing, so Maharashtra being an automobile hub.

Speaker #3: Right? And a lot of our products will be consumed by the automobile sector. So we expect, you know, demand growth locally in Maharashtra, which will add to the benefit of CRM.

Speaker #3: But for raw materials, there is a lot of supply, like GSWs, then Dolvi, then there is ArcelorMittal in Gujarat. So we don't see a challenge in the procurement of HR coils.

Speaker #3: On the consumption side, Maharashtra is a big state for consumption. And that is why the industrial policy of the Maharashtra government is giving us those benefits in terms of, you know, SJSC and other things.

Speaker #3: So, we feel shifting CRM is actually a boon to us by shifting to Maharashtra rather than Chhattisgarh.

Abhishek Agrawal: We feel shifting CRM is actually a boon to us by shifting to Maharashtra rather than Chhattisgarh.

Manav Gohil: Understood.

Manav Gogia: Understood.

Speaker #2: Understood. Understood. So my next question is on the read-only mining side. We faced some challenges this particular quarter in terms of the production from the mining.

Abhishek Agrawal: Yeah.

Manav Gohil: Sure. My next question comes on the Ari Dongri mining site. We faced some challenges this particular quarter in terms of the production from the mining. Is it expected to continue for Q2 as well? Q3 or?

Manav Gogia: Sure. My next question comes on the Ari Dongri mining site. We faced some challenges this particular quarter in terms of the production from the mining. Is it expected to continue for Q2 as well? Q3 or?

Speaker #2: So, is it expected to continue for Q2 as well? And Q3 or... okay.

Abhishek Agrawal: Yes.

Manav Gohil: Okay.

Manav Gogia: Okay.

Speaker #3: No, no, no. So I'll tell you. The mines had basically two lands. One was the private land, where we've already started dumping. All the formalities are over, and we have started using the land for dumping.

Abhishek Agrawal: No. I tell you. The mines had basically two lands. One was the private land where we've already started dumping. All the formalities are over, and we have started grading the land for dumping. On the government land, last stage approvals are pending, basis which we will be allowed to enter the land and do the tree cutting and all. That should happen in Q2. From Q3 onwards, we expect the mining production to ramp up and eventually achieve full capacity from Q4 or early Q1 next financial year. Q2, you can expect the same numbers in terms of mining production.

Speaker #3: On the government land, last year's approvals are pending, based on which we will be allowed to enter the land and do the tree cutting and all.

Speaker #3: So, that should happen in Q2. From Q3 onwards, we expect the mining production to ramp up and eventually achieve full capacity from Q4 or early Q1 next financial year.

Speaker #3: So, for Q2, you can expect the same numbers in terms of mining production.

Manav Gohil: Understood. We'll continue to have a higher procurement from the merchant miners for at least one more quarter now.

Manav Gogia: Understood. We'll continue to have a higher procurement from the merchant miners for at least one more quarter now.

Speaker #2: Understood. So we'll continue to have a higher procurement from the merchant miners for...

Speaker #3: No, see, in Q2—so, Q2, if you realize, we have already informed the investors last month only that we have shut down one of our new, the new 2 million plant, because of unavailability from the market, as well as the cash pricing.

Abhishek Agrawal: No. Q2, if you realize, we have already informed the investors last month only, we have shut down one of the new 2 million plant because of iron ore availability from the market as well as the cash pricing. Q2 will be dull in terms of pellet production and mining numbers. Q3 onwards, we expect to run the pellet capacity at full production, and mining ramp-up will happen from Q4 and eventually full capacity from Q1 of FY28.

Speaker #3: So, Q2 will be dull in terms of pellet production and mining numbers. From Q3 onwards, we expect to run the pellet capacity at full production.

Speaker #3: And mining ramp-up will happen from Q4 and eventually reach full capacity from Q1 of FY28.

Manav Gohil: Understood. That is quite helpful.

Manav Gogia: Understood. That is quite helpful.

Speaker #2: Understood, understood. That is quite helpful. So, just one follow-up more. Now, the beneficiation plant is coming in from Q3, right? And can you just help me in understanding how we should look at the quarterly trajectory of captive ore availability?

Abhishek Agrawal: Yes.

Manav Gohil: Just one follow-up more. Now the beneficiation plant is coming in from Q3, right?

Manav Gogia: Just one follow-up more. Now the beneficiation plant is coming in from Q3, right?

Abhishek Agrawal: Yes.

Manav Gohil: Can you just help me in understanding how should we look at the quarterly trajectory of the captive ore availability? Because you're saying Q4 is where we'll ramp up to full mining production activities, right? Post the beneficiation plant coming in and the iron ore mine production ramping up, are we going to completely eliminate the merchant iron ore procurement? That would be the right way to look at it?

Manav Gogia: Can you just help me in understanding how should we look at the quarterly trajectory of the captive ore availability? Because you're saying Q4 is where we'll ramp up to full mining production activities, right? Post the beneficiation plant coming in and the iron ore mine production ramping up, are we going to completely eliminate the merchant iron ore procurement? That would be the right way to look at it?

Speaker #2: Because you're saying Q4 is where we'll ramp up to full mining production activities, right? And post the pellet sorry, post the beneficiation plant coming in and the iron ore mine production ramping up, what sort are we going to completely eliminate the merchant iron ore procurement that would be the right way to look at it?

Speaker #3: See, so Q3, you can say we'll still, so we'll be running the pellet plant at full capacity. The purchase from market will be still about 25 to 30 percent.

Abhishek Agrawal: Q3, you can say, we'll be running a pellet plant at full capacity. The purchase of market will be still about 25% to 30%. From Q4, gradually, it should come down below 10%. Finally in FY28, it should be 100% captive. That is the target.

Speaker #3: And from Q4, gradually, it should come down below 10 percent. And finally, in FY28, it should be 100 percent captive. That is the target.

Speaker #2: Okay. Understood. That is.

Manav Gohil: Okay. Understood. That is helpful. Sure. I have more. I'll join back to queue for more, sir. Thank you so much.

Manav Gogia: Okay. Understood. That is helpful. Sure. I have more. I'll join back to queue for more, sir. Thank you so much.

Speaker #3: Yes.

Speaker #2: Helpful. Sure, sure. I have more. I'll jump back to Q4 now, sure. Thank you so much.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Abhishek Agrawal: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Aman Kothari, from Aequitas Investments. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Aman Kothari, from Aequitas Investments. Please proceed.

Speaker #1: Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Aman Kothari from Equities Investment.

Speaker #1: Please proceed.

Speaker #2: Yeah, okay. Thanks for the opportunity. So, the first question was just a follow-up on the previous one: the 3 million guidance that we've given for iron ore—that is after including for beneficiation.

Aman Kothari: Yeah, perfect. Thanks for the opportunity. Sir, the first question was just a follow-up on the previous one, that the 3 million guidance that was given for iron ore, that is after including for beneficiation?

Speaker #3: See, so basically, beneficiation is more on the input side. The 3.4 million guidance given for the whole year for the mining production is basically a usable ore for the pellet plant.

Abhishek Agrawal: See, basically, beneficiation is more on the input side. The 3.4 million guidance given for the whole year for the mining production, which is basically a usable ore for pellet plant, that is still on track. That is very much on track. We're not revising our mining guidance for the full year. 3.4 million we have given for this year, and it is very much on track.

Speaker #3: That is still on track. That is very much on track. So we're not revising our mining guidance for the full year. 3.4 million we have given for this year, and it is very much on track.

Speaker #2: And the rest would be the market purchase, an additional 1.2, 1.3 million.

Aman Kothari: The rest would be the market purchase, additional 1.2, 1.3 million.

Speaker #3: Yes. No, so in that case, see, what will happen is our pellet production will be on the lower side, we expect. So, accordingly, our market purchase for the full year will be on the lower side.

Abhishek Agrawal: Yes. No, in that case, see what will happen is our pellet production will be on the lower side, we expect. Accordingly, our market purchase for the full year will be on the lower side because we have already shut another pellet plant last month, and I think it will continue to remain shut in this quarter. Accordingly, the purchase for market in terms of volume will be slightly on the lower side.

Speaker #3: Because we have already shut down one of the pellet plants last month, I think we will continue to remain shut in this quarter.

Speaker #3: So, accordingly, the purchase for the market in terms of volume will be slightly on the lower side.

Speaker #2: Got it. And so the reason for shutting down the pellet production, obviously, first was the iron ore. But how big is the gas supply issue for us?

Aman Kothari: Sir, the reason for shutting down the pellet production, obviously first was the iron ore, but how big is the gas supply issue for us? Is it expected to normalize post Q2?

Speaker #2: Is it expected to normalize post Q2?

Speaker #3: See, no, so to be—see, I think there was a little misunderstanding. We are able to secure 100 percent gas from the supplier.

Abhishek Agrawal: I think there was a little misunderstanding. We are able to procure the 100% gas from the supplier. The issue is, as per the new guidelines of PNGRB, the purchase value of the gas has gone up drastically. It is almost up by 40% and 45%. Purchasing iron ore from the market and also getting gas at a higher price, that makes pellet plant operation commercially unviable.

Speaker #3: But the issue is, as per the new guidelines of PNRGB, so the value, the purchase value of the gas has gone up drastically. It's almost up by 40, 45 percent.

Speaker #3: So, purchasing iron ore from the market and also getting gas at a higher price makes pellet plant operations commercially unviable. That was what we stated in our statement last month: that commercially, in the current market scenario—where steel is down and pellet prices touched an all-time low of about ₹8,700 at the start of July—it makes the pellet plant commercially unviable to purchase from the market and use expensive gas.

Aman Kothari: Okay.

Abhishek Agrawal: That was what we have stated in our statement last month, commercially in the current market scenario where steel is down and pellet prices touched all-time low of about INR 8,700 in the starting of July, it makes pellet plant commercially unviable to purchase on the market and use expensive gas.

Speaker #2: Fair, fair, fair. Makes sense. So the second question is on the iron ore pricing. This year, we have seen iron ore come down to around $94.

Aman Kothari: Fair. Makes sense.

Abhishek Agrawal: Yeah.

Aman Kothari: Sir, the second question is on the iron ore pricing. This year we have seen iron ore come down to around $94. We further expect that the Simandou project should ramp up by the end of this year and further double down the next year. How do you see the iron ore market pricing for the next one, two years?

Speaker #2: We further expect that the CMRDO project should ramp up by the end of this year and further double down next year. So, how do you see the iron ore market pricing for the next one to two years?

Speaker #3: See, I feel iron ore will keep hovering between $90 to $100 because the CMRDO project will take some time to ramp up. Plus, the demand in India is definitely growing for iron ore.

Abhishek Agrawal: See, I feel iron ore will keep hovering between $90 to 100 because the Simandou project will take some time to ramp up. The demand in India is definitely growing for iron ore. If you see, a lot of port-based plants have started importing iron ore. I feel iron ore should remain in the levels of between $90 to 100, depending on the market to market. Yeah. We don't feel iron ore going down below $90 soon.

Speaker #3: If you see, a lot of port-based plants have started importing iron ore. So I feel iron ore should remain at levels between 90 to 100, depending on the market to market, yeah.

Speaker #3: We don't expect iron ore to go below $90 soon.

Speaker #2: Okay, got it. And with the beneficiation, we will be able to command a much better price in terms of quality.

Aman Kothari: Okay, got it. With the beneficiation we'll have, we'll be able to command a much better price in terms of quality.

Speaker #3: See, beneficiation will mainly help us in reducing the mining cost. Because right now, I'm beneficiating the entire ore in the factory complex by paying a transportation cost of ₹1,000.

Abhishek Agrawal: See, beneficiation will mainly help us in reducing the mining cost, because right now I'm benefiting the entire ore in factory complex by paying a transportation of INR 1,000. By now benefiting in the mines, my mining cost will go down of usable concentrate, which will feed to the pellet plant. The idea is to reduce the mining cost and improve on the profitability. That is why we're putting up a beneficiation plant in the mines now.

Speaker #3: So by now, beneficiating in the mines, my mining cost will go down for usable concentrate, which will feed the pellet plant. So the idea is to reduce the mining cost and improve profitability.

Speaker #3: That is why we are putting up a beneficiation plant in the mines now.

Speaker #2: Got it. Perfect. And just one last question before I jump back in the queue. Do we do any sensitivity analysis for iron ore pricing? Let's say if there's a 5% or 10% fall in iron ore prices, what could be the impact on our revenue or profitability, for that matter?

Aman Kothari: Got it. Perfect. Just last question before I'll join back on the queue. Sir, do we do any sensitivity for iron ore pricing? Let's say if there's a 5%, 10% fall in iron ore prices, what could be the impact on our revenue or profitability for that matter?

Speaker #3: See, if you ask me, right, a ₹100 decline in iron ore pellet price means we'll lose ₹40 crore in a year, based on 4 million tonnes of production of iron ore pellets.

Abhishek Agrawal: If you ask me, right, INR 100 down in iron ore pellet, we'll lose INR 40 crore in a year. Basically, the 4 million production of iron ore pellets. It's very simple. Iron ore cost still doesn't impact so much in terms of pellet prices. Pellet prices are mainly driven on the steel sentiment. For example, today, if you see, the steel sentiments are slightly down, that's why the pellet prices were below INR 9,000. Last couple of weeks, the market has revived almost by 10% in the domestic. Pellet prices are back to INR 10,000 levels in the domestic. I would say pellet plays more important role in our cost economics rather than the iron ore fines prices.

Speaker #3: So, it's very simple. Iron ore cost still doesn't impact so much in terms of pellet prices. Pellet prices are mainly driven by the steel sentiment.

Speaker #3: For example, today, if you see, the steel sentiments are slightly down. So that's why the pellet prices were below ₹9,000. But in the last couple of weeks, the market has revived almost by 10% in the domestic.

Speaker #3: So, pellet prices are back to the 10,000 level in the domestic market. So, I would say pellet plays a more important role in our cost economics rather than iron ore fines prices.

Speaker #2: Okay. And pellet prices, as you mentioned, are entirely driven by your steel economics and steel demand.

Aman Kothari: Okay. Pellet prices, as you mentioned, are entirely driven by your steel economics and steel demand.

Speaker #3: Yes, yes, definitely, definitely, definitely.

Abhishek Agrawal: Yes. Definitely.

Speaker #2: Okay, thank you, sir. I'll just join back again with you.

Aman Kothari: Okay. Thank you, sir. I'll just join back again in the queue.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Abhishek Agrawal: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. To ask a question, please press star and one now. The next question is on the line of Yogansh from Mittal Analytics. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. To ask a question, please press star and one now. The next question is on the line of Yogansh from Mittal Analytics. Please proceed.

Speaker #1: To ask a question, please press star and one now. The next question is from the line of Yoganj from Mittal Analytics. Please proceed.

Speaker #2: Hi, thanks for the opportunity. Am I audible?

[Analyst] (Mittal Analytics): Hi. Thanks for the opportunity. Am I audible?

Yogansh Jeswani: Hi. Thanks for the opportunity. Am I audible?

Speaker #3: Yes.

Abhishek Agrawal: Yes.

Speaker #2: Yeah. Thank you, Abhishek Ji, for your elaborate answers. Just one question on the three things that we are doing. So, the pellet plant is already up and running, right?

[Analyst] (Mittal Analytics): Yeah. Thank you, Abhishekji, for the elaborate answer. Just one question on the three things that we are doing. The pellet plant is already up and running, right? Like you said, we are not operating it, but it's up and running.

Yogansh Jeswani: Yeah. Thank you, Abhishekji, for the elaborate answer. Just one question on the three things that we are doing. The pellet plant is already up and running, right? Like you said, we are not operating it, but it's up and running.

Speaker #2: Like you said, you're not operating it, but it's up and running. And then we'll be having—yeah, and then we'll be having beneficiation coming up and the mining scale-up.

Abhishek Agrawal: Yes.

[Analyst] (Mittal Analytics): Yeah. We'll be having a beneficiation that's coming up and the mine will scale up. Once all these three of our major actions come into force, say suppose end of FY27. FY28 onwards, what kind of benefits do you see coming into our books? If you could quantify that broadly, like you touched upon that we save INR 1,000 per ton in transportation with the beneficiation at mine. If you could just break it down in a little more granular form and just help us understand how much our EBITDA per ton can change with all these three things combined.

Yogansh Jeswani: Yeah. We'll be having a beneficiation that's coming up and the mine will scale up. Once all these three of our major actions come into force, say suppose end of FY27. FY28 onwards, what kind of benefits do you see coming into our books? If you could quantify that broadly, like you touched upon that we save INR 1,000 per ton in transportation with the beneficiation at mine. If you could just break it down in a little more granular form and just help us understand how much our EBITDA per ton can change with all these three things combined.

Speaker #2: So, once all three of our major actions come into force, say, at the end of FY27, so from FY28 onwards, what kind of benefits do you see coming into our books?

Speaker #2: If you could quantify that broadly, like you touched upon that we'll save ₹1,000 per ton in transportation with the beneficiation at the mine. If you could just break it down in a little more granular form and help us understand how much our EBITDA per ton can change with all these three things combined.

Speaker #3: Just to give you a very brief breakup, currently our mining cost stands at about ₹3,000 to ₹3,500, depending on production. So, our target is to bring down the mining cost below ₹2,700 from FY28.

Abhishek Agrawal: Just to give you a very brief breakup, currently our mining cost stands about between INR 3,000 to INR 3,500, depending on the production. Our target is to bring down the mining cost below INR 2,700 from FY28. Beneficiation is a part of it. Again, the EV deployment in the mines is again a part of it. The whole idea is to bring down the mining cost. INR 100 saving the iron ore gives away a bit of INR 4,550 crore on a five, six million production of iron ore. The idea is to bring down the mining cost, and that's why all these initiatives have been taken. That is on the first side. Pellet production, we expect to be at full capacity from FY28, which is about 4.5 million tons. Straight away, with high volumes, that will give us a higher number in terms of profitability.

Speaker #3: So, beneficiation is a part of it. Again, the EV deployment in the mines is also a part of it. So the whole idea is to bring down the mining cost.

Speaker #3: So, ₹100 saving in the iron ore segment gives a benefit of ₹45–50 crore on a 5–6 million tonne production of iron ore.

Speaker #3: So, the idea is to bring down the mining cost, and that's why all these initiatives have been taken. So, that is on the first side.

Speaker #3: Pellet production, we expect to be at full capacity from FY28, which is about 4.5 million tons. So, straight away, with high volumes, that will give us a higher number in terms of profitability.

Speaker #3: So these two are the major reasons for iron ore mining and the pellet.

Abhishek Agrawal: These two are the major reasons for iron ore mining and the pellet.

Speaker #2: Right. And sir, with more iron ore mining that we can do, will this volume help us in generating some business, or we can't sell because of the feeling that we have of 4 million something on the pellets—4.7 million, 47 lakh on the pellets, sorry.

[Analyst] (Mittal Analytics): Right. Sir, with the more iron ore mining that we can do, will this volume help us in generating some business or we cannot sell because of the feeling that we have of 47 lakh on the pellets. Sorry.

Yogansh Jeswani: Right. Sir, with the more iron ore mining that we can do, will this volume help us in generating some business or we cannot sell because of the feeling that we have of 47 lakh on the pellets. Sorry.

Speaker #3: No, see, we are allowed to sell as a captive miner as per the new MMDR Act. We are allowed to sell 50% of our iron ore in the market at an additional royalty of 150%.

Abhishek Agrawal: No. See, we are allowed to sell as a captive miner. As per new MMDR Act, we are allowed to sell 50% of our iron ore in the market at an additional royalty of 150%. That is only possible if you are able to feed 100% to your pellet plant. In the longer term, we have no intention of selling iron ore in the market. We want to make 100% iron ore captive to the pellet plants. Going forward, maybe two, three years down the line, if we feel the opportunity is there, we are still able to have a surplus iron ore, then only we'll think of selling in the market. At the moment, we have no plans of selling iron ore in the market. Rather, we'll conserve it and keep mines running longer.

Speaker #3: But that is only possible if you are able to feed 100% to your pellet plant. So, in the longer term, we have no intention of selling iron ore in the market.

Speaker #3: We want to make 100 percent of iron ore captive to the pellet plants. And going forward, maybe two or three years down the line, if we feel the opportunity is there and we are still able to have surplus iron ore, then only we'll think of selling in the market.

Speaker #3: But at the moment, we have no plans to sell iron ore in the market. Rather, we'll conserve it and keep the mines running longer.

Speaker #2: Explain that. So, for FY28, at least, we don't have any plans to sell.

[Analyst] (Mittal Analytics): Fair enough. FY28, at least, we don't have any plans to sell.

Yogansh Jeswani: Fair enough. FY28, at least, we don't have any plans to sell.

Speaker #3: No, no, no, no, no, no.

Abhishek Agrawal: No.

Speaker #2: And sir, if you could just help me understand, what is the conversion rate from your beneficiated iron ore to your pellet?

[Analyst] (Mittal Analytics): Sir, if you could just help me understand, what is the conversion rate from your beneficiated iron ore to your pellet?

Yogansh Jeswani: Sir, if you could just help me understand, what is the conversion rate from your beneficiated iron ore to your pellet?

Speaker #3: See, conversion remains same.

Abhishek Agrawal: See, conversion remains same.

Speaker #2: In terms of quantity, y-yeah.

[Analyst] (Mittal Analytics): In terms of quantity.

Yogansh Jeswani: In terms of quantity.

Abhishek Agrawal: It depends, between INR 1,500 to INR 1,800 on annual basis.

Speaker #3: It is about, depends, between Rs. 1,500 to Rs. 800 on an annual basis.

Speaker #2: Sorry, your voice broke, sir. I couldn't hear you.

[Analyst] (Mittal Analytics): Sorry, your voice broke, sir. I couldn't hear.

Yogansh Jeswani: Sorry, your voice broke, sir. I couldn't hear.

Speaker #3: It's between 1,500 to 1,800 rupees on an annual basis. 1,500 to 1,800.

Abhishek Agrawal: It's between INR 1,500 to INR 1,800 on annual basis. 1,500 to 1,800.

Speaker #2: Okay, okay. And sir, broadly, like you said, as of now, we're not looking to sell iron ore, but suppose we decide to sell in the future, what kind of delta would you capture?

[Analyst] (Mittal Analytics): Okay. Sir, broadly, like you said, as of now, we're not looking to sell iron ore, but suppose we decide to sell in future, what kind of delta would you capture? Is it safe to assume that the delta that you capture in pellet is much more versus what you capture in iron ore, and hence we don't want to sell iron ore outside?

Yogansh Jeswani: Okay. Sir, broadly, like you said, as of now, we're not looking to sell iron ore, but suppose we decide to sell in future, what kind of delta would you capture? Is it safe to assume that the delta that you capture in pellet is much more versus what you capture in iron ore, and hence we don't want to sell iron ore outside?

Speaker #2: Is it safe to assume that the delta you capture in pellet is much more versus what you capture in iron ore, and hence we don't want to sell iron ore outside?

Speaker #3: See, the first thing is, if you want to sell iron ore, we have to pay 150% royalty on lumps and 250% royalty on fines.

Abhishek Agrawal: See, the first thing is, if you want to sell iron ore, we have to pay 150% royalty on lumps and 250% royalty on fines. Straight away, INR 1,000 of delta goes away if we intend to sell iron ore in the market, and the delta in pellet is almost INR 4. Commercially, it doesn't make sense to sell iron ore in the near term. Unless pellet prices really, really crash to below INR 1,000, probably, we can think of selling iron in the market, but I don't see that happening very soon.

Speaker #3: So, straight away, ₹1,000 of delta goes away if we intend to sell iron ore in the market. And the delta in pellet is almost ₹4.

Speaker #3: So commercially, it doesn't make sense to sell iron ore in the near term. Unless pellet prices really, really crash to below ₹1,000, then probably we can think of selling iron ore in the market.

Speaker #3: But I don't see that happening very soon.

Speaker #2: Got it. And one last question from my end, sir. So, in FY28, there will be very limited volume growth, right? Now, the major growth will come in the steel business once the CRM mill comes up, right?

[Analyst] (Mittal Analytics): Got it. One last question from my end, sir. In FY28, there will be very limited volume growth. Right? Now the major growth will come in on our steel business once the CRM mill comes up, right?

Yogansh Jeswani: Got it. One last question from my end, sir. In FY28, there will be very limited volume growth. Right? Now the major growth will come in on our steel business once the CRM mill comes up, right?

Speaker #2: And other than that, the main driver for our EBITDA growth would be from the BESS, once it comes online from Q1 FY28 onwards.

Abhishek Agrawal: Yes.

[Analyst] (Mittal Analytics): Other than that, the main driver for our EBITDA growth would be from the BESS once it comes online from Q1 FY28 onwards.

Yogansh Jeswani: Other than that, the main driver for our EBITDA growth would be from the BESS once it comes online from Q1 FY28 onwards.

Abhishek Agrawal: Right.

Speaker #2: Perfect. Thank you so much, sir. Thank you, and all the best to you and your team.

[Analyst] (Mittal Analytics): Okay. Thank you so much, sir. Thank you and all the best to you and your team.

Yogansh Jeswani: Okay. Thank you so much, sir. Thank you and all the best to you and your team.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Abhishek Agrawal: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Sunil Jain from Edelweiss Securities. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Sunil Jain from Edelweiss Securities. Please proceed.

Speaker #1: Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Suneel Jain from Nirmal Bang Securities.

Speaker #1: Please proceed.

Speaker #4: Yeah. Thanks for this opportunity, sir. This was more related to the iron ore mine. You said that part of the land was private and part of the land was government.

Sunil Jain: Yeah, thanks for this opportunity, sir. This was more related to iron ore mine. You said that part of the land was private and part of the land was government. In private land, the operation has started. First of all, in the government land, whatever the approval is pending, what nature of that approval and will that can delay the production for a longer time?

Speaker #4: And in private land, the operation has started. So, first of all, in the government land, whatever approval is pending, what type or what nature of approval is that, and could that delay the production for a longer time?

Speaker #3: No, see, the approval that is pending is the final approval from the state government for entry to the land and tree cutting, because it is government land.

Abhishek Agrawal: No, see, the approval which is pending is the final approval from the state government for entry to the land and tree cutting, because it is a government land, it is a revenue land, and there was a plantation done. There is a process we have to follow, which includes the forest department as well. The file is under application. We are very hopeful we should get the desired approvals by end of September. We say that from October onwards, we will get the land to start dumping.

Speaker #3: It's a revenue land, and there was a transition done, so there is a process we have to follow, which includes the forest department as well.

Speaker #3: So, the file is in the application. We are very hopeful we should get the desired approvals by the end of September. And besides that, from October onwards, we will get the land to start dumping.

Speaker #4: And thereafter, the key iron ore production can take some time.

Sunil Jain: Thereafter, the key iron ore production can take some time.

Speaker #3: So, ramp-up will start happening from October onwards. But as I said, eventually, the full ramp-up capacity will happen by the end of Q4 and early Q1 of the next year.

Abhishek Agrawal: Ramp up will start happening from October onwards. As I said, eventually the full ramp up capacity will happen end of Q4 and early of Q1 next financial year.

Speaker #4: Yeah, but on the private land, can we independently start producing iron ore or not? Both have to.

Sunil Jain: Yeah, on the private land, whether we can independently start producing iron ore or no, both have to-

Speaker #3: See, no, no, see, we can start producing iron ore at 6 million capacity from today itself. Basically, we needed additional land for dumping of overburden.

Abhishek Agrawal: No. See, we can start producing iron ore at 6 million capacity from today itself. Basically, we needed additional land for dumping of overburden. On the private land, we have started dumping the overburden. That is where we are able to still produce the current capacity of iron ore. Once we get the government land, the dumping capacity can improve and eventually the iron ore production will improve.

Speaker #3: So, on the private land, we have started dumping the overburden. That is where we are able to still produce the current capacity of iron ore.

Speaker #3: Once we get the government land, the dumping capacity can improve, and eventually, the iron ore production will improve.

Speaker #4: Okay. So basically, most.

Sunil Jain: Okay. Basically-

Sunil Jain: Okay. Basically—

Dinesh Gandhi: Sunil, let me clarify. In fact, the land for dumping ground is separate from the land for mining. The mining area and dumping area is slightly different. This additional land which has been allotted is only for the dumping ground. In that also there are two land, one is private and another one is the government land. Tree cutting for the dumping ground land is something which delays the mining operations.

Speaker #2: Suneel, let me clarify. In fact, the land for the dumping ground is separate from the land for mining. The mining area and dumping area are slightly different.

Speaker #2: This additional land which has been allotted is only for the dumping ground. So, in that also, there are two lands: one is private and the other one is government land.

Dinesh Gandhi: In that also there are two land, one is private and another one is the government land. Tree cutting for the dumping ground land is something which delays the mining operations.

Speaker #2: So, tree cutting for the dumping ground land is something which delays the mining operations.

Speaker #4: Okay, okay.

Sunil Jain: Okay.

Speaker #2: I hope it is clear to you. For mining, my full land is available.

Dinesh Gandhi: I hope it is clear to you. For mining, my full land is available.

Speaker #4: Available. Okay, okay, fine. Okay. For dumping, you need area, and they are the—

Sunil Jain: Available. Okay, fine. For dumping, you need area.

Speaker #2: Yeah, yeah, yeah. This land was specifically for the purpose of dumping—the overburden.

Dinesh Gandhi: Yeah. This land was specifically for the purpose of dumping the overburden.

Speaker #4: Okay, fine. Fine. But the point is, without that dumping, you can't increase the current iron ore.

Sunil Jain: Okay, fine. The point is, without that dumping, you can't increase the current iron ore.

Speaker #2: Volume—yeah, I don't have the space to keep the overburden in the mining area.

Dinesh Gandhi: Volume. Yeah. I don't have the space to keep the overburden in the mining area.

Speaker #4: Yeah, yeah, true. And sir, second thing, related to the project which we have now shifted to Maharashtra, will we have better profitability in the base project or even in mill capacity? Is there any possibility of higher margin because of that, or will you still go with your earlier guidance?

Sunil Jain: Yeah. True. Sir, second thing related to the project which we had shifted now to Maharashtra. Now, whether we will have a better profitability in BESS project or even in the cold rolled mill capacity. Any possibility of higher margin because of that or still you will go with your earlier guidance?

Speaker #3: See, in terms of profitability, we don't see much change. The only positive side in Maharashtra is, key, the local consumption in Maharashtra is on a very higher side.

Abhishek Agrawal: In terms of profitability, we don't see much change. The only positive side in Maharashtra is the local consumption in Maharashtra is on very higher side. For us, we already have a demand available, which will save us on the transportation cost on the finished product. That is one advantage we will get in Maharashtra. Plus, the Maharashtra industrial policy incentive is also much better compared to Chhattisgarh. From that angle also, the incentives we will be getting yearly will add to the profitability of CRM complex. The storage from day one was in Maharashtra only and that project remains on track. Nothing changes there.

Speaker #3: So for us, we already have demand available, which will save us on the transportation cost of the finished product. So that is one advantage we will get in Maharashtra.

Speaker #3: Plus, the Maharashtra industrial policy incentive is also much better compared to Chhattisgarh. So, from that angle also, the incentives we will be getting yearly will add to the profitability of the CRM complex.

Speaker #3: Storage from day one was in Maharashtra only, and that project remains on track. Nothing changes there.

Speaker #4: So, this incentive will be able to improve some margin, or not?

Sunil Jain: This incentive will be able to improve some margin or no?

Speaker #3: Yes, yes. So the incentives will improve the margin by another 2 to 3 percent for sure on the CRM complex side.

Abhishek Agrawal: Yes. The incentives will improve the margin by another 2% to 3% for sure on the CRM complex side.

Speaker #4: Okay, okay. So earlier you were targeting somewhere around 7–8 percent. So it can move up.

Sunil Jain: Okay. Earlier you were targeting somewhere at around 7% to 8%. It can move up to-

Speaker #3: Yeah, so we should yeah, exactly. We should touch 10, 11 percent. With incentives.

Abhishek Agrawal: Yeah, exactly. We should touch 10% to 11% with incentives.

Speaker #4: Okay, okay. Great, sir. Thank you very much.

Sunil Jain: Okay. Great, sir. Thank you very much.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that they may press star one (*1) to join the queue. The next question is from the line of Sanooj from SKP Securities.

Abhishek Agrawal: Thank you. Before we take the next question, we would like to remind participants for the investor guidelines. The next question is from the line of Tanuj from SKP Securities. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants for the investor guidelines. The next question is from the line of Tanuj from SKP Securities. Please proceed.

Speaker #1: Please proceed.

Speaker #2: Yes, thank you for the opportunity. I just wanted to understand—there has been an increase in the iron ore production cost by approximately 10%.

[Analyst] (SKP Securities): Sir, thank you for the opportunity. Just wanted to understand that there has been an increase in the iron ore production cost by approximate 10%. Wanted to understand the reason. Is it just with respect to the natural, like the fuel?

Tanuj Nangalia: Sir, thank you for the opportunity. Just wanted to understand that there has been an increase in the iron ore production cost by approximate 10%. Wanted to understand the reason. Is it just with respect to the natural, like the fuel?

Speaker #2: So, I wanted to understand the reasoning—is it just with respect to the natural, like the fuel?

Speaker #3: No, so the iron ore cost has gone up because of the higher purchase of iron ore from the market. No other reason—just mining cost.

Abhishek Agrawal: No. The iron ore cost has gone up because of the higher purchase of iron ore from the market. No other reason.

Dinesh Gandhi: No. Mining cost.

Abhishek Agrawal: Mining cost. Okay. Exactly. The mining cost again has gone up. It's mainly because of lower production in the mines and the other operating cost has gone up only because of the lower production. Once we are able to achieve the desired capacity, the mining cost will automatically come down.

Speaker #3: Okay. The mining cost, exactly. The mining cost, again, has gone up. It's mainly because of lower production in the mines. And the other operating cost has gone up only because of the lower production.

Speaker #3: Once we are able to achieve the desired capacity, the mining cost will automatically come down.

Speaker #2: Okay, because in the last 10 years, this is the highest mining cost.

[Analyst] (SKP Securities): Okay. In last 10 years, this is the highest mining cost side.

Tanuj Nangalia: Okay. In last 10 years, this is the highest mining cost side.

Speaker #3: Yes, yes, yes. Because of the lower production on the mining side, the cost has gone up. Once we achieve the targeted production, the mining cost will automatically come down.

Abhishek Agrawal: Yes. Because of the lower production on the mining side, that is why the cost has gone up. Once we achieve the production, the mining cost will automatically come down. No other reason.

Speaker #3: No other reason.

Speaker #2: Okay, my second question is, like,

[Analyst] (SKP Securities): Okay. My second question is.

Tanuj Nangalia: Okay. My second question is.

Speaker #3: Plus, plus, plus, as Mr. Gandhi mentioned, of course, there's also the impact of the diesel which is consumed in the mines for the operations. So that also has an impact on the mining operations.

Abhishek Agrawal: Plus, as Mr. Gandhi mentioned, of course, there's also impact of the diesel which is consumed in the mines for the operations. That also has an impact on the mining operations.

Speaker #2: Okay, got it. My next question is, I have seen an increase in the sales volume of the pellet. So, in your peer group companies also, there has been a drastic increase in pellet production and sales.

[Analyst] (SKP Securities): Okay. Got it. My next question is, I've seen a increase in the sales volume of the pellet. In your peer group companies also there has been a drastic increase in pellet production and sales. Is there any specific reason behind that?

Tanuj Nangalia: Okay. Got it. My next question is, I've seen a increase in the sales volume of the pellet. In your peer group companies also there has been a drastic increase in pellet production and sales. Is there any specific reason behind that?

Speaker #2: So, is there any specific reason behind that?

Speaker #3: No, so, see, our new pallet plant was running at full capacity. In Q1, we were operating all three plants, so that is why the additional production happened.

Abhishek Agrawal: See, our new pellet plant was running at full capacity. In Q1, we were operating all the 3 plants. That is why the additional production happened and that is why the additional pellet sales happened. Because our captive consumption for pellets remains constant with our DRI capacity. Whatever additional pellets will be produced, will be sold in the market. That is why you see a substantial jump in Q1 for pellet sales.

Speaker #3: And that is why the additional pellet sales happened. Because our captive consumption for pellets remains constant with our DRI capacity. So, whatever additional pellets will be produced will be sold in the market.

Speaker #3: So that is why you see a substantial jump in Q1 for pellet sales.

Speaker #2: Okay. And sir, can you give a view on your, like, demand? How is the demand on the pellet side?

[Analyst] (SKP Securities): Okay. Sir, can you give a view on your demand? How is the demand on the pellet side?

Tanuj Nangalia: Okay. Sir, can you give a view on your demand? How is the demand on the pellet side?

Speaker #3: See, the demand was quite low at the end of June and early July. The prices had touched COVID lows of below ₹9,000. That was the reason we had to shut one of our plants, because the operations were commercially unviable.

Abhishek Agrawal: The demand was quite lull end of June, early July. The prices had touched COVID low of below INR 9,000. That was the reason we had to shut one of our plants because the operations were commercially unviable. Since the steel market has revived in last 2, 3 weeks, pellet demand is better compared to probably July. The prices also shot up by almost 10%.

Speaker #3: But since the steel market has revived in the last two or three weeks, pallet demand is better compared to probably July. And the prices have also shot up by almost 10%.

Speaker #2: Okay, got it. Now, sir, like, we have moved our—we are not going ahead with our integrated steel plant. So, is there any plan to use the internal pellet to make sponge or something like that?

[Analyst] (SKP Securities): Okay. Got it. Now sir, we are not going ahead with our integrated steel plant. Is there any plans to use the internal pellet to make sponge or something like that? How are we moving ahead if we have canceled our ISP plan. What's the CapEx pipeline like? Are we thinking in terms of something around sponge or anything like?

Tanuj Nangalia: Okay. Got it. Now sir, we are not going ahead with our integrated steel plant. Is there any plans to use the internal pellet to make sponge or something like that? How are we moving ahead if we have canceled our ISP plan. What's the CapEx pipeline like? Are we thinking in terms of something around sponge or anything like?

Speaker #2: Like, how are we moving ahead if we are, like, we have canceled our ISP plan? So what's the CAPEX pipeline? Like, are we thinking in terms of something around sponge or anything like that?

Speaker #3: No, so firstly, we haven't canceled, canceled. We have kept the project on hold. Once we get the desired approvals, probably we'll have a rethink about what to do.

Abhishek Agrawal: No. Firstly, we haven't canceled. We have kept the project on hold. Once we get the desired approvals, probably we'll have a rethink, by what to do. On the consumption of pellet side, we have no plans of expanding the DRI capacity. Again, getting a new land, going for the EC, it's a long drawn process. We have no plans of increasing our DRI capacity. Whatever pellets will be produced, will be sold in the merchant market. There is actually a good demand of high grade pellets, be it the domestic market or be it international market. We actually started exporting. We exported two ships in end of Q1 and early of Q2 before shutting our pellet plant. We will keep selling pellets in the market in the longer term.

Speaker #3: On the consumption of pellet side, we have no plans of expanding the DRI capacity because, again, getting a new land, going for the EC—it's a long, drawn-out process.

Speaker #3: So, if you have no plans of increasing the DRI capacity, whatever pellets will be produced will be sold in the merchant market. And there is actually a good demand for high-grade pellets, be it in the domestic market or be it in the international market.

Speaker #3: We actually started exporting, and we exported two ships at the end of Q1 and early Q2 before shutting our pallet plant. So we will keep selling pallets in the market in the longer term.

Speaker #2: Okay. And sir, I was going through your past phone calls. There has been a tendency, with respect to all of our approvals, for a lot of delays.

[Analyst] (SKP Securities): Okay. Sir, I was going through your past phone calls. There has been a tendency, with respect to all of our approvals, there is a lot of delays. Is there any specific reason?

Tanuj Nangalia: Okay. Sir, I was going through your past phone calls. There has been a tendency, with respect to all of our approvals, there is a lot of delays. Is there any specific reason?

Speaker #2: So, is there any specific reason or is it just the—

Speaker #3: No, I would say it's very unfortunate there have been enormous delays at different stages, when it comes to approvals from the state government, but that is something which is not in our hands.

Abhishek Agrawal: No, I would say it's very unfortunate. There have been enormous delays at different stages when it comes to approvals from the state government. That is something which is not in our hand. Hopefully, whatever pending approvals are still there, we should get it as soon as possible. That's all I can say. It's very unfortunate, it's really not in our hands, to be honest.

Speaker #3: And hopefully, whatever pending approvals are still there, we should—we would—should get as soon as possible. That's all I can say. It's very unfortunate, but it's really not in our hands, to be honest.

Speaker #2: Okay, got it. Thank you so much, sir. That's all from my end.

[Analyst] (SKP Securities): Okay. Got it. Thank you so much, sir. That's from my end.

Tanuj Nangalia: Okay. Got it. Thank you so much, sir. That's from my end.

Speaker #3: Yes.

Abhishek Agrawal: Yes.

Speaker #1: Thank you. The next question is from the line of Vineet Thakur from 90 Plus 91 Asset Management. Please proceed.

Abhishek Agrawal: Thank you. The next question is from the line of Vineeth Thakur from Plus 91 Asset Management. Please proceed.

Operator: Thank you. The next question is from the line of Vinit Thakur from Plus91 Asset Management. Please proceed.

Speaker #2: Hi, sir. Thank you so much for the opportunity, sir. I have a question that we answered. If you could, sir, just help me out with the understanding of the iron ore cost—I think the previous participant also had asked.

Vineet Thakur: Hi, sir. Thank you so much for your opportunity, sir. Most of my questions have been answered. If you could, sir, just help me out with the understanding of the iron ore cost, and the previous participant also have asked, by when do you expect to get the approval for the expansion for the dumping area?

Vinit Thakur: Hi, sir. Thank you so much for your opportunity, sir. Most of my questions have been answered. If you could, sir, just help me out with the understanding of the iron ore cost, and the previous participant also have asked, by when do you expect to get the approval for the expansion for the dumping area?

Speaker #2: But when do you expect to get the approval for the expansion? To get for the dumping area?

Abhishek Agrawal: As we mentioned earlier, we are very hopeful we should get the pending approvals by end of Q2, and from Q3 onwards, you can see improvement in mining production and eventually full load capacity from FY28. That's what we envisage.

Speaker #3: As we mentioned earlier, we are very hopeful. We should get the pending approvals by the end of Q2, and from Q3 onwards, you can see improvement in mining production and eventually full capacity from FI28.

Speaker #3: That's what we envisage.

Speaker #2: And sir, what's the update on BESS?

Vineet Thakur: Sir, what's the update on BESS?

Vinit Thakur: Sir, what's the update on BESS?

Speaker #3: The project is very much on track. The groundwork has started. Everything has been placed. The machine delivery will start happening from December, and we expect to roll out the first container in Q1 of FY28.

Abhishek Agrawal: The project is very much on track. The groundwork has started. Everything has been placed. The machine delivery will start happening from December, and we expect to roll out the first container in Q1 of FY28. The BESS project is very much on track.

Speaker #3: So, the BESS project is very much on track.

Speaker #2: Okay, sir. And sir, coming to the realizations of iron ore, they had seen a good peak in Q4 and the start of Q1 as well.

Vineet Thakur: Okay, sir. Sir, coming to the realizations of iron ore and pellet, they had seen a good peak in Q4 and start of Q1 as well. I think in Q2 they have been little softer, as you had mentioned as well. Do you think they will have a little bit of lower realization going forward?

Vinit Thakur: Okay, sir. Sir, coming to the realizations of iron ore and pellet, they had seen a good peak in Q4 and start of Q1 as well. I think in Q2 they have been little softer, as you had mentioned as well. Do you think they will have a little bit of lower realization going forward?

Speaker #2: But I think in Q2, they have been a little softer, as you had mentioned as well. But do you think they're going to get they will have a little bit more a little bit of lower realization going forward?

Speaker #3: No, so if you ask, on a longer term, we still feel the iron ore prices will hover around between ₹9,000 to ₹10,000 in the longer term.

Abhishek Agrawal: No. If you ask on a longer term, we still feel the iron ore prices will hover around between INR 9,000 to INR 10,000 in the longer term, INR 9,000 being the lower side and INR 10,000 being on the higher side. This year also we see last five months, the average pricing and our selling price also remains around INR 10,000 levels. Plus, it's a commodity and it's a cyclic business. Ups and down will keep happening depending on the market here. We don't see major change in iron ore pellets in the longer term.

Speaker #3: 9,000 being on the lower side and 10,000 being on the higher side. And if you also see the last five months, the average pricing and our selling price also remain at around 10,000 levels.

Speaker #3: Plus, it's a commodity, and it's a cyclical business, so ups and downs will keep happening depending on the market here. We don't see a major change in iron ore pellets in the longer term.

Speaker #2: And sir, you had also mentioned regarding—that you were exploring exports as an option for your pellets if the domestic market...

Vineet Thakur: Sir, you had also mentioned regarding that you were exploring exports as an option for your pellets to if domestic market-

Vinit Thakur: Sir, you had also mentioned regarding that you were exploring exports as an option for your pellets to if domestic market-

Abhishek Agrawal: We did export 2 vessels in June and July. Then we had to stop exports because of shutting off of another pellet plant. Export opportunity is always there. Depending on the domestic demand and pricing, we are always open for exports.

Speaker #3: We did export two vessels—in June and July. And then we had to stop exports because of the shutting off of another pellet plant. So, export opportunity is always there.

Speaker #3: Depending on the domestic demand and pricing, we are always open for exports.

Speaker #2: What are the realizations you got in June for exports?

Vineet Thakur: What is the range you got in June for exports?

Vinit Thakur: What is the range you got in June for exports?

Speaker #3: It was slightly—slightly, I could say almost at par with the domestic market, which was about ₹9,000 ex-plant, when the market in the domestic was ₹9,000.

Abhishek Agrawal: It was slightly, I could say almost at par with the domestic market, which was about INR 9,000 ex-plant. The market in the domestic was INR 9,000 in June and July.

Speaker #3: In June and July.

Speaker #2: Okay, got it. Thank you, sir.

Vineet Thakur: Okay, got it. Thank you, sir.

Vinit Thakur: Okay, got it. Thank you, sir.

Speaker #3: Yeah.

Abhishek Agrawal: Yeah.

Speaker #1: Thank you. The next question is from the line of Karthik Gada from Multiple Wealth Management. Please proceed.

Abhishek Agrawal: Thank you. The next question is from the line of Kartik Gada from Multiple Wealth Management. Please proceed.

Operator: Thank you. The next question is from the line of Kartik Gada from Multipl Wealth Management. Please proceed.

Speaker #2: Yeah, thank you for the opportunity. Sorry if this is getting repeated—I was able to join only a little late. I just wanted to understand: during the quarter, we sold down our stake in Jammu Pigments, which we had invested in a couple of years ago.

Kartik Gada: Yeah, thank you for the opportunity. Sorry if this is getting repeated. I was able to join a little late. Just wanted to understand, during this quarter we sold down our stake in Jammu Pigments, which we had invested in a couple of years ago. Just wanted to understand the thought process. What changed? What led to this decision?

Speaker #2: We just wanted to understand the thought process—what changed, and what led to this decision.

Speaker #4: Hello.

Dinesh Gandhi: Hello.

Speaker #3: Vineet ji. Yeah.

Abhishek Agrawal: Vineet Agrawal.

Abhishek Agrawal: Vinitji.

Abhishek Agrawal: Hello.

Kartik Gada: Hello.

Abhishek Agrawal: Yeah.

Speaker #2: Yeah.

Speaker #4: So, Jammu Pigment—we have not sold much. We have sold, I think, about stocks worth around ₹25 crore. We are still considering our strategy regarding Jammu Pigment.

Dinesh Gandhi: Jammu Pigment, we have not sold much. We have sold, I think, stocks worth about INR 25 crores. We are still thinking on the strategy on Jammu Pigment. In fact, we had a time either to increase our stake or exit or whatever you do. We have not yet fully decided on that. The promoters, other family members like their daughter and son-in-law have also joined the business. Earlier, the statement was that they don't have any succession planning and therefore planning to exit. Then we also have a lot of other things coming up in Chhattisgarh and now in Maharashtra, CRM, other things. Operationally, that location is becoming slightly difficult for us in Jammu and Kota. We are in the process of taking a call.

Speaker #4: In fact, we had a time either to increase our stake or exit, or whatever you do. We have not yet fully decided on that.

Speaker #4: But the promoters' other family members, like their daughter and son-in-law, have also joined the business. Earlier, the statement was that they don't have any succession planning.

Speaker #4: And therefore, planning to exit. We also have a lot of other things coming up in Chhattisgarh and now in Maharashtra, CRM, and other things.

Speaker #4: And operationally, that location is becoming slightly difficult for us in Jammu and Kota. So, we are in the process of taking a call. We have partially sold stake to the promoters.

Dinesh Gandhi: We have partially sold stake to the promoters, and if they desire and if they want, then we can even offload some more quantities going forward.

Speaker #4: And if they desire, and if they want, then we can even offload some more quantities going forward.

Speaker #2: Okay. So, are there any expected timelines, or will it be as is?

Kartik Gada: Okay. Any expected timelines or it will be?

Speaker #4: No, no, no, no. There are no timelines on this. We are still in discussion as to how to go forward with this.

Dinesh Gandhi: No, no timelines are there on this. We are still in discussion as to how to go forward on this.

Speaker #2: Understood. Yes, that’s it from my end. Thank you so much.

Kartik Gada: Understood. Yeah. That's it from my end. Thank you so much.

Speaker #4: Yeah, thank you.

Dinesh Gandhi: Yeah. Thank you.

Speaker #1: Thank you. The next question is from the line of Aman Kothari from Equities Investment. Please proceed.

Dinesh Gandhi: Thank you. The next question is from the line of Aman Kothari from Aequitas Investments. Please proceed.

Operator: Thank you. The next question is from the line of Aman Kothari from Aequitas Investments. Please proceed.

Speaker #3: Hi sir, thanks for taking me back. Sir, I think in the last two phone calls, we had spoken about Boria, Tebu, and the TOFR that we were going to file in Q1 of this year.

Aman Kothari: Hi, sir. Thanks for taking me back. Sir, I think last to last con call, we had spoken about Boria Tibu, the TOFR that we were going to file in Q1 of this year. Just wanted to know what's the update on that filing.

Speaker #3: So, just wanted to know what's the update on that filing. So, see, Boria, the Tebu expansion plan is very much on track. We have started preparing the documents.

Abhishek Agrawal: See, Boria Tibu expansion plans are very much on track. We have started preparing the documents. We will be putting up a beneficiation plant inside the mines as well. For which, the trials are under process. Once everything is finalized, we will be filing the TOFR for Boria Tibu. We expect Boria Tibu expansion to happen somewhere in probably April 30, FY31. That is the plan. The current mining capacity is 0.7 million. From next year onwards, Boria Tibu will be running at full capacity of 0.7 million. Currently, it is running at about 0.2, 0.3 million. Eventually by FY31, we will be taking the mining capacity from 0.7 to 4 million tons.

Speaker #3: We also will be putting up a beneficial plant inside the mines as well, for which the trials are under process. And once everything is finalized, we will be filing the TOF for Boria, Tebu.

Speaker #3: And we expect the Boria, Tebu expansion to happen probably around April 30, FY31. That is the plan. The current mining capacity is 0.7 million.

Speaker #3: From next year onwards, Boria and Tebu will be running at full capacity of 0.7 million. Currently, it is running at about 0.2–0.3 million. And eventually, if FI31, we will be taking the mining capacity from 0.7 to 4 million tons.

Speaker #2: Got it. Got it. Perfect.

Aman Kothari: Got it. All right, perfect. The beneficiation plant would also be 4 million tonnes then?

Speaker #4: And the beneficiation plant would also be 4 million tons then?

Speaker #3: Yes. So, 4 million mining, 4 million beneficiation. And since the mines are on the lower side, the grid is on the lower side, we expect the output to be close to about 1.5 to 2 million tons of usable concentrate for the pellet feed.

Abhishek Agrawal: Yes. 4 million mining, 4 million beneficiation, since the mine grade is on the lower side, we expect the output of a close to about 1.5 to 2 million tonnes usable concentrate for the pellet feed.

Speaker #2: 1.5 to 2 million, usable. Okay.

Aman Kothari: 1.5 to 2 million. Okay.

Speaker #3: Yeah, and it could be about 40%. Yeah, yeah.

Abhishek Agrawal: Yeah. It could be about 40%. Yeah.

Speaker #2: Okay.

Speaker #4: The tail loss would be much higher in this.

Aman Kothari: Okay. Tail off would be much higher in this.

Speaker #3: Yes, because the Fe grade is on the lower side. The average Fe grade in the mines is somewhere about 45 to 50. So of course, the tailing will be on the much higher side to maintain the output of the concentrate at 65% Fe.

Abhishek Agrawal: Yes, because the grade is on the lower side. The average grade in the mines is somewhere about 45 to 50. Of course, the tailing will be on the much higher side to maintain the output of the concentrate of 65 above.

Speaker #2: Got it.

Aman Kothari: Got it. Sir, you gave a proper update on how our BESS is progressing in terms of supply arrangements, in terms of for domestic EMS also being finalized. Are we having any conversations or discussions around the commercial arrangements, about any customer discussions or how we're looking to progress around that?

Speaker #4: And sir, you gave a proper update on how our base is progressing in terms of supplier arrangements, and in terms of our domestic EMS also being finalized.

Speaker #4: Are we having any conversations or discussions around the commercial arrangements about any customer discussions, or how we're looking to progress around that?

Speaker #3: See, we have already tied up with domestic EMS. We have already tied up with domestic PCS, as per the requirement of the Government of India, where currently 20% of your entire system has to be made in India.

Abhishek Agrawal: See, we have already tied up with the domestic EMS. We already tied up to a domestic PCS, as per directive of Government of India, where currently 20% of your entire system has to be made in India. We already achieved that. In terms of commercial sales, from August onwards, we have started quoting our containers in the market and we'll start participating in tenders for future supplies.

Speaker #3: So, we have already achieved that. And in terms of commercial sales, from August onwards, we have started quoting our containers in the market, and we will be participating in tenders for future supplies.

Speaker #2: Got it.

Aman Kothari: Got it. This will be the tender where we will be participating.

Speaker #4: So these will be the tenders where we will be participating with the—sorry.

Speaker #3: Exactly. It will be mainly with the back-to-back guarantee to the developer who will be participating in tenders. So, we'll be doing a back-to-back guarantee. If he wins the bid, we'll be the supplier for that particular project.

Abhishek Agrawal: Exactly. It will be mainly with a back-to-back guarantee to the developer who will be participating in tenders. We'll be doing a back-to-back guarantee if we win the bid. We'll be the supplier for that particular project. That is how we intend to go ahead with the sales.

Speaker #3: That is how we intend to go ahead with the sales.

Speaker #2: Got it.

Aman Kothari: Got it. Just on the ferro galvanized products, I think we saw a decline also in galvanized products volume for this quarter. Any particular reason why we saw a particular decline?

Speaker #4: And just on the FERO or galvanized products, I think we saw a decline also in galvanized products volume for this quarter. Any particular reason why we saw this decline?

Speaker #3: Usually, you know, during the monsoon, the deliveries are on the lower side. The projects get delayed. So that is why the galvanizing products, you can see, are on the lower side.

Abhishek Agrawal: Usually, being a monsoon, the delivery is on the lower side, the projects get delayed, that is why the galvanized products you can see is on the lower side. Once the monsoons are over, you will see the volumes back at the desired level. It's just a seasonal effect, nothing else.

Speaker #3: Once the monsoons are over, you will see the volumes back at the desired levels. It's just a seasonal effect, nothing else.

Speaker #2: Got it.

Aman Kothari: Got it. Sir, just my last question, I think you had explained it very well on last concall, the difference between a BF and a DR pellet. Since you had mentioned that we have already started exporting and the DR pellets, the gap paste, command a much higher premium, is it something that we will look at in the near term, or we will be focusing only on the domestic market?

Speaker #4: And sir, just my last question. I think you had explained it very well on the last phone call, the difference between a BF and a DR pallet.

Speaker #4: So, since you had mentioned that we have already started exporting and the DR pellets, the gas-based command a much higher premium. Is it something that we will look at in the near term, or will we be focusing only on the domestic market?

Speaker #3: No, we very much have plans to, you know, enter the DR market, which is mainly the Middle East. But that can only happen once we are able to, you know, feed 100% from our mines.

Abhishek Agrawal: No, we very much have plans to enter the DR market, which is mainly the Middle East. That can only happen once we are able to feed 100% from our mines, because they are very specific quality conscious. Once we are able to do that, we have plans to enter into DR market as well because of the higher premiums.

Speaker #3: Because they are very specific and quality conscious. So, once we are able to do...

Speaker #4: So once Ari Dongri will be running up with the beneficiation plant, we can then probably do the DR pellets?

Aman Kothari: Once Ari Dongri will be running up with the beneficiation plant, we can then probably do the DR pellets?

Speaker #3: No, I would say that will happen only once we are able to feed 100% of our pellet capacity from our mines, because then we can start playing with the quality of the product.

Abhishek Agrawal: No, I would say that will happen only once we are able to feed 100% of our pellet capacity from our mines. Then we can start playing with the quality of product. That will happen FY28, once we are able to achieve the 100% mining capacity.

Speaker #3: So, that will happen in FY28, once we are able to achieve 100% mining capacity.

Speaker #4: Okay.

Aman Kothari: Okay.

Speaker #3: Yes, yes. Yes, very much. Yes.

Abhishek Agrawal: Yes.

Aman Kothari: Yes, sir.

Abhishek Agrawal: Yes, very much. Yes.

Speaker #4: Perfect. Thank you. Thank you so much, sir, for taking the question. And good luck, sir.

Aman Kothari: Perfect. Thank you. Thank you so much, sir, for taking our questions, and good luck, sir.

Speaker #3: Thank you so much.

Abhishek Agrawal: Thank you so much.

Speaker #1: Thank you. The next question is from Nidhi from BigMint. Please proceed.

Abhishek Agrawal: Thank you. The next question is on the line of Nidhi from Bibment. Please proceed.

Operator: Thank you. The next question is on the line of Nidhi from Bibment. Please proceed.

Speaker #5: Good afternoon, sir, and many thanks for the opportunity. Sir, my first question is: as one of the pellet plants is on shutdown, should we expect any change to the company's FY27 pellet production guidance of 4.0 million tons?

[Analyst] (Bibment): Good afternoon, sir, and many thanks for the opportunity. Sir, my first question is, as your one of the pellet plant is on shutdown, should we expect any change to the company's FY27 pellet production guidance of 4.0 million tonnes?

Abhishek Agrawal: Although we haven't revised, we are still evaluating. You can expect the volumes to be slightly on the lower side. Once we have a full final guidance internally, we will inform all the investors. You can expect a slightly lower guidance for the entire year since one of our pellet plants is already shut from last almost 45 days now.

Speaker #3: Although we haven't devised, we are still evaluating. But you can expect the volumes to be slightly on the lower side. Once we have a full final guidance internally, we will, you know, we will inform all the investors.

Speaker #3: But you can expect a slightly lower guidance for the entire year, since one of our pellet plants has already been shut for almost 45 days now.

Speaker #5: Okay. So should it meet 4.0 million tons, or will it be?

[Analyst] (Bibment): Okay. Should it meet 4.0 million tonne?

Speaker #3: No, no, no. I think the production will be slightly on the lower side, but with the exact guidance, we will come back in some time.

Abhishek Agrawal: No, I think the production will be slightly on the lower side, with exact guidance, we will come back in some time.

Speaker #3: Once we have a full clarity once we have a full clarity, yeah.

[Analyst] (Bibment): Okay.

Abhishek Agrawal: Once we have a full clarity, yeah.

Speaker #5: Okay. Okay. Sir, my second question is: How do you see the pellet market outlook for this fiscal in terms of demand, pricing, and margins, particularly with rising domestic supply and subdued export demand?

[Analyst] (Bibment): Okay. Sir, my second question is, how do you see the pellet market outlook for this fiscal in terms of demand, pricing, and margins, particularly with rising domestic supply and subdued export demand?

Speaker #3: See, the prices were the lowest two months back. But with the steel demand going up slightly, the prices have again gone up by 10%.

Abhishek Agrawal: See, the prices, they searched lowest 2 months back, with the steel demand going up slightly, the prices have again gone up by 10%. I still feel in the longer term, the prices will keep hovering between INR 9,000 to 10,000 FY40.

Speaker #3: But I still feel, in the longer term, the prices will keep hovering between 9,000 to 10,000 rupees next quarter.

Speaker #5: Okay. Okay. Okay, sir. Thank you very much.

Dinesh Gandhi: Okay, sir. Thank you very much.

[Analyst] (Bibment): Okay, sir. Thank you very much.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Speaker #1: To ask a question, please press star and one now. The next question is on the line of Rohan Mehta from StartEasy. Please proceed.

Speaker #6: Hi sir, good afternoon. Am I audible?

Rohan Mehta: Hi, sir. Good afternoon. Am I audible?

Speaker #3: Yes, please.

Abhishek Agrawal: Yes, please.

Speaker #6: So, a couple of questions. First, have the cost of materials just gone up by 40%? As I understand, we procure the materials one quarter back.

Rohan Mehta: Couple of questions. First, our cost of materials have just gone up by 40%. As I understand, we procure the materials one quarter back. Let's say we might have procured our material in about February or March when the West Asia wasn't as impactful. Can you just segregate this cost for me?

Speaker #6: So, let's say we might have procured our material in about February or March, when West Asia wasn't as impactful. So, can you just segregate this cost for me?

Speaker #3: See, on the total, I know total raw material cost, which is mainly for us iron ore and the imported coal. So, domestic coal was largely stable.

Abhishek Agrawal: On the total raw material cost, which is mainly for us iron ore and the imported coal. Domestic coal was largely stable. Iron ore contributes about 75% of the increased cost and 25% was the imported coal.

Speaker #3: So, iron ore contributes about 75% of the increased cost, and 25% was the imported coal. Just to be very specific in terms of numbers, our imported coal cost was about ₹10,500 for Q4 and early Q1.

Rohan Mehta: Okay.

Abhishek Agrawal: Just to be very specific in terms of number, our imported coal cost was about INR 10,500 for Q4 and early Q1. Now it's almost touched INR 13,000. Straight away, 25% impact because of the West Asia crisis, and 75% is mainly account of iron ore for purchasing from the market compared to our own mined material.

Speaker #3: Now, it's almost touched ₹13,000. So, straight away, a 25% impact is because of the West Asia crisis, and 75% is mainly on account of iron ore for purchasing from the market compared to our own mines material.

Speaker #6: So that will be much more impactful in Q2 because, as you just said, the imported coal cost has gone up much more.

Rohan Mehta: That will be much more impactful in the Q2, because just you said the imported coal cost has gone up much more.

Speaker #3: Yes, Q2 will continue to remain on the higher side because the prices still have not reduced compared to Q4 levels. The dollar was there. The shipping freight is still on the higher side.

Abhishek Agrawal: Yes. Q2 will continue to remain on the higher side because the prices still have not reduced compared to Q4 levels. Dollar was there, the shipping freight is still on the higher side. The index is slightly lower because of the current crisis, but still on the higher side.

Speaker #3: The index is slightly lower because of the current crisis, but it is still on the higher side.

Speaker #6: Okay. And on the natural gas side, sir, when can we expect some sort of normalcy? Is there a timeline when this force majeure will just expire and we may get it at the—?

Rohan Mehta: Okay. On the natural gas side, sir, when do we expect some sort of normalcy? Is there some timeline where this force majeure will just expire?

Abhishek Agrawal: No.

Rohan Mehta: Get it at the

Rohan Mehta: Maybe get it at the—

Speaker #3: No, no clarity, to be honest. We have been in touch with a supplier again, but he has no guidelines. It's a very uncertain situation, you know, how the war unfolds every day.

Abhishek Agrawal: No clarity, to be honest. We have been in touch with our supplier GAIL, but he has no guideline. It's an everyday situation. How the war unfolds every day. As you know, things are very irrational right now, so we just hope for the best here.

Speaker #3: So, as you know, things are very irrational right now. So we just hope for the best here.

Speaker #6: Absolutely. And at what pellet prices does it make sense to produce at these gas prices?

Rohan Mehta: Absolutely. At what pellet prices does it make sense to produce at these gas prices?

Speaker #3: See, at these levels, we are evaluating our operation for the third plant. We are also talking to the suppliers. If we are able to secure the required quantity of volume to run the pallet plant.

Abhishek Agrawal: At these levels, we are evaluating our operation for the third plant. We are also talking to the suppliers if we are able to secure the required quantity of volume to run the pellet plant. If we do so, we will definitely come back and announce it to the investors. At the moment, it is under shutdown and we feel August will also be a shutdown period. September, there might be a possibility we can start the operation for the third plant.

Speaker #3: If we do so, we will definitely come back and announce it to the investors. But at the moment, it is under shutdown, and we feel August will also be a shutdown period.

Speaker #3: In September, there might be a possibility that we can start the third operation for the third plant.

Speaker #6: Okay. And just the last question. So, at current capacity expansions, we won't be needing any debt, right? The plant doesn't come into the picture?

Rohan Mehta: Okay. Just the last question. At current capacity expansions, we won't be needing any debt, right?

Abhishek Agrawal: No.

Rohan Mehta: If the steel plant doesn't come into the picture.

Speaker #3: See, to be honest, as we clearly said, the steel plant is put on hold. We have no clarity. So, if we see the steel plant requirement of funds, we were taking almost a huge debt, you know, to fund the steel plant.

Abhishek Agrawal: See, to be honest, as we clearly said, the steel plant is put on hold.

Rohan Mehta: Yes.

Abhishek Agrawal: We have no clarity. If you see the steel plant requirement of funds, we were taking almost a huge debt to fund the steel plant. Since it's on hold now, we don't need to borrow any money for funding our current projects. We have sufficient free cash flows to fund the entire projects now.

Speaker #3: Since it's on hold now, so we don't need to borrow any money for funding our current projects. We are very much you know, we have sufficient free cash flows to fund the entire projects now.

Speaker #6: Perfect. Thank you so much, sir. That's all from my side.

Rohan Mehta: Perfect. Thank you so much, sir. That's all from my side.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. The next question is from the line of Swati Agarwal from Chhattisgarh Investments. Please proceed.

Abhishek Agrawal: Thank you. The next question is from the line of Shruti Aggarwal from Chhattisgarh Investments. Please proceed.

Operator: Thank you. The next question is from the line of Stuti Agarwal from Chhatisgarh Investments. Please proceed.

Speaker #5: Thank you for the opportunity. Officer, I just wanted to know, was there a revision in the budgeted capex for the CRM rolling for the CRM project?

Shruti Aggarwal: Thank you for the opportunity. Sir, I just wanted to know, was there a revision in the budgeted CapEx for the CRM project?

Stuti Agarwal: Thank you for the opportunity. Sir, I just wanted to know, was there a revision in the budgeted CapEx for the CRM project?

Speaker #3: Yes. Earlier, the capex in this was about, I think, ₹950 crore. Now it's about ₹1,100 crore. It's mainly on account of, you know, the one-time cost we will be incurring on account of the land in Maharashtra and other basic infrastructure.

Abhishek Agrawal: Yes. Earlier the CapEx initial was about, I think, INR 990, 950 crores. Now it is about INR 1,100 crores. It is mainly on account of the one-time cost we will be incurring on account of the land in Maharashtra and other basic infrastructure. Earlier, the entire complex was coming up in Chhattisgarh with the steel plant, so a lot of common infrastructure cost was getting absorbed. Since now CRM will be independent, it is a one-time cost which we have to incur to start the plant, which is the land, the infrastructure, the transmission lines and other things. That is why the CapEx is above almost about 15% and 20% compared to the previous CapEx announcement of INR 950 crores.

Speaker #3: Earlier, the entire complex was coming up in Chhattisgarh with the steel plant, so a lot of common infrastructure cost was getting absorbed. Since now, CRM will be independent.

Speaker #3: So it's a one-time cost which they have to incur to, you know, start the plant, which is the land, the infrastructure, the transmission lines, and other things.

Speaker #3: So that is why the capex is almost about 15–20% above the previous capex announcement of ₹950 crores.

Speaker #5: Okay. So the entirely 200

Shruti Aggarwal: Okay, sir.

Stuti Agarwal: Okay, sir.

Dinesh Gandhi: The entirely INR 200 crore is not by increase of CapEx from working capital. Margin money is also included in INR 1,100 crore. Actually, the increase will be much lower.

Speaker #4: crore is not by increase of capex from working capital margin money is also included in 1100 crores. So actual increase will be much lower.

Speaker #5: And sir, what will be the estimated land cost in Maharashtra land?

Shruti Aggarwal: Sir, what will be the land cost estimated? Land cost for the Maharashtra land.

Stuti Agarwal: Sir, what will be the land cost estimated? Land cost for the Maharashtra land.

Speaker #4: Closer to 45, 50 crores.

Dinesh Gandhi: Closer to INR 45, 50 crore.

Speaker #5: Okay.

Shruti Aggarwal: Okay.

Stuti Agarwal: Okay.

Speaker #3: Land cost will be about ₹50 crore. Yeah, yeah, yeah. And the land parcel is about 35 acres.

Abhishek Agrawal: Land cost will be about INR 50 crore. Yeah. The land parcel is about 35 acres.

Speaker #5: Okay. And also, the expected commissioning date will be in...

Shruti Aggarwal: Okay. Also expected commissioning date will be.

Stuti Agarwal: Okay. Also expected commissioning date will be.

Speaker #3: December 27, which is Q3 of FY28.

Abhishek Agrawal: December 2027, which is Q3 of FY28.

Speaker #5: Okay, sir. Thank you. That's all.

Shruti Aggarwal: Okay, sir. Thank you. That's all.

Stuti Agarwal: Okay, sir. Thank you. That's all.

Speaker #3: Thank you.

Abhishek Agrawal: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant.

Abhishek Agrawal: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Nitin Shah, an investor. Please proceed.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Nitin Shah, an investor. Please proceed.

Speaker #1: The next question is from the line of Mithin Shah, an investor. Please proceed.

Speaker #7: Yeah. Good afternoon, sir. Sir, my question is regarding the cash utilization. We already have some healthy cash on books, and we would be, for a steady state pellet price, making something more than ₹1,000–1,200 crore every year.

Nitin Shah: Yeah. Good afternoon, sir. Sir, my question is regarding the cash utilization. We already have some healthy cash on books, and for a steady state pellet price, we would be making something more than INR 1,000 to 1,200 crores every year. Now that steel plant is shelved, what are your plans with regards to utilization of the cash?

Speaker #7: And now that the steel plant is shelved, what are your plans regarding the utilization of the cash?

Speaker #3: If you ask.

Dinesh Gandhi: We will come back, sir. Let this CapEx be over, the CRM and BESS project, and let's have the full clarity on integrated steel plant, and then we'll come out with the plan for the cash.

Speaker #4: We will come back later. This capex will be over. The CRM and, you know, base project. And let's say they have full clarity on the integrated steel plant.

Speaker #4: And then we'll come out with the, you know, plan for the case.

Speaker #7: Okay. Okay. Thank you so much.

Nitin Shah: Okay. Thank you so much.

Speaker #1: Thank you. The next question is a follow-up question from the line of Manu Gogia from Yes Securities Limited. Please proceed.

Nitin Shah: Thank you. The next question is a follow-up question from the line of Manoj Govia from YES SECURITIES Limited. Please proceed.

Operator: Thank you. The next question is a follow-up question from the line of Manav Gogia from YES SECURITIES Limited. Please proceed.

Manoj Govia: Yes. Just one question I had on CAPEX. How should we now take a look at FY27 and FY28 because now the steel CAPEX is no longer part of it?

Manav Gogia: Yes. Just one question I had on CAPEX. How should we now take a look at FY27 and FY28 because now the steel CAPEX is no longer part of it?

Speaker #7: Yes, so just one question I had on capex. How should we now take a look at FY27 and FY28, because now the steel capex is no longer part of it?

Speaker #4: You know, we have given numbers in our presentation. We have given the numbers.

Dinesh Gandhi: We have given numbers in our presentation. We have given the numbers.

Speaker #7: Only only those numbers.

Manav Gohil: Only those numbers.

Manav Gogia: Only those numbers.

Speaker #4: For FY27 and FY28, how much will be the capex?

Dinesh Gandhi: FY27, 28, how much will be the CapEx?

Speaker #7: Okay, got it. And in terms of pricing for Q2—or sorry, not pricing—in terms of pellet production, should we assume the 675, 1,800, or would that be the right way to look at it?

Manav Gohil: Okay. Got it. In terms of pricing for Q2, sorry, not pricing. In terms of pellet production, should we assume the 675,000, 1,800? Would that be the right way to look at it?

Manav Gogia: Okay. Got it. In terms of pricing for Q2, sorry, not pricing. In terms of pellet production, should we assume the 675,000, 1,800? Would that be the right way to look at it?

Speaker #3: Sorry, come again please.

Abhishek Agrawal: Sorry, come again please.

Speaker #7: So for pellet production and during Q2 of FY27, should we assume 650 to 700 KT for this particular quarter, in terms of pellet production?

Manav Gohil: For pellet production during Q2 of FY27, should we assume 650 to 700K, 1,800 for this particular quarter in terms of pellet production?

Manav Gogia: For pellet production during Q2 of FY27, should we assume 650 to 700K, 1,800 for this particular quarter in terms of pellet production?

Speaker #3: No. So if we happen to keep the plant shut for the entire quarter, the numbers will be on the lower side. So at the moment, if you talk about, Samir, about 500 KT.

Abhishek Agrawal: No. If we happen to keep the plant shut for the entire quarter, the numbers will be on the lower side.

Manav Gohil: Okay.

Manav Gogia: Okay.

Abhishek Agrawal: At the moment, if you talk about, Samir, about 500K.

Speaker #7: Okay. Got it.

Manav Gohil: Okay. Got it.

Manav Gogia: Okay. Got it.

Speaker #3: Yeah.

Abhishek Agrawal: Yeah.

Speaker #7: Okay.

Manav Gohil: Okay.

Manav Gogia: Okay.

Speaker #1: Thank you. The next question is from the line of Vineet Thakur from Plus 91 Asset Management. Please proceed.

Manav Gohil: Thank you. The next question is from the line of Vineet Thakur from Plus 91 Asset Management. Please proceed.

Operator: Thank you. The next question is from the line of Vinit Thakur from Plus91 Asset Management. Please proceed.

Speaker #4: Yeah. Hi, sir. Just one question. Since you said we will be funding all of our capex going forward through internal approvals, what will be our new capex for the next three years, excluding the ISP, if it is not in the medium-term growth?

Vineet Thakur: Yeah. Hi, sir. Just one question. Since you said we will be funding all of our CapEx going forward through internal accruals, what will be our new CapEx for next three years excluding the ISP is not in the medium-term growth?

Vinit Thakur: Yeah. Hi, sir. Just one question. Since you said we will be funding all of our CapEx going forward through internal accruals, what will be our new CapEx for next three years excluding the ISP is not in the medium-term growth?

Speaker #3: See, for the CRM, we have included it within the capex of ₹1,100 crore, out of which about ₹80 crore has already been spent. So, about ₹1,000 crore remains on the CRM side.

Abhishek Agrawal: See, for the CRM, we have envisaged a CapEx of INR 1,100 crore, out of which about INR 80 crore have already been spent. About INR 1,000 crore on the CRM side. On the battery storage side, we have already spent about close to INR 500 crore. The remaining CapEx of close to INR 700 to 800 crore will be spent in this year and next year. Plus on the remaining mining CapEx. Overall, we envisage a CapEx of close to about INR 2,000 crore for remaining FY27 and entire FY28.

Speaker #3: On the battery storage side, we have already spent about close to ₹500 crore. The remaining capex of close to ₹700–800 crore will be spent in this year and next year.

Speaker #3: Plus, on the remaining mining capex, overall we are within the capex of close to about ₹2,000 crores for the remaining FY27 and the entire FY28.

Speaker #4: So, for '27, you're saying ₹2,000 to ₹2,100 crores, and for '28, you're saying ₹2,000 crores. And for '29, how much will it be, and in which year?

Vineet Thakur: For FY27, you're saying INR 2,100 crore and FY28 you're saying INR 2,000 crore.

Vinit Thakur: For FY27, you're saying INR 2,100 crore and FY28 you're saying INR 2,000 crore.

Dinesh Gandhi: No, the numbers are given in presentation, how much will be in which year. You can refer the presentation. Shall I send you the presentation?

Speaker #4: You can refer to the presentation. Shall I talk you through the presentation?

Speaker #7: No, sir. I do have it, but it's only till '28. I want it till '29, if you have any projection till '29.

Vineet Thakur: No, sir. I do have it's only till FY28. I want it till FY29. If you have any projections till FY29.

Vinit Thakur: No, sir. I do have it's only till FY28. I want it till FY29. If you have any projections till FY29.

Speaker #3: No, no, no, no.

Abhishek Agrawal: No.

Speaker #4: Twenty-nine, there is no projection as of now.

Dinesh Gandhi: For FY29, there is no projection as of now.

Speaker #3: No, no projection.

Abhishek Agrawal: No projection as of now.

Speaker #4: Okay.

Vineet Thakur: Okay. Got it, sir. Thank you.

Vinit Thakur: Okay. Got it, sir. Thank you.

Speaker #7: Got it, sir. Thank you.

Speaker #1: Thank you. That was the last question for today. I now hand the conference over to the management for the closing comments. Over to you, sir.

Vineet Thakur: Thank you. That was the last question for today. I now hand the conference over to the management for the closing comments. Over to you, sir.

Operator: Thank you. That was the last question for today. I now hand the conference over to the management for the closing comments. Over to you, sir.

Speaker #4: Yeah. Thank you very much for joining us on this call. We hope that we have been able to address all your questions. Should you have any more questions or require any clarification, please get in touch with our Investor Relations team.

Dinesh Gandhi: Yeah. Thank you very much for joining us on this call. We hope that we have been able to address all your questions. Should you have any more questions or require any clarification, please get in touch with our investor relation team at Go India Advisors. Thank you very much. With this, we conclude this call.

Speaker #4: At GoIndia Advisors, thank you very much. Thank you very much. With this, we conclude this call.

Abhishek Agrawal: Thank you.

Speaker #3: Thank you.

Abhishek Agrawal: On behalf of Godawari Power and Ispat Limited, that concludes this call. Thank you for joining us, and you may now disconnect your line.

Operator: On behalf of Godawari Power & Ispat Limited, that concludes this call. Thank you for joining us, and you may now disconnect your line.

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Q1 2027 Godawari Power and Ispat Ltd Earnings Call

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