Ladies and gentlemen, good day and welcome to the JSW Steel Limited Q1 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashwin Bajaj, Group Head, Investor Relations. Thank you, and over to you, sir. Yes. Thank you, operator. A very good evening, ladies and gentlemen. Welcome to JSW Steel's earnings call for Q1 of financial year 2027. We have with us today the management team represented by Mr. Jayant Acharya, Joint MD and CEO, Mr. G.S. Rathore, Chief Operating Officer, Mr. Arun Maheshwari, Director of Commercial and Marketing, and Mr. Swayam Saurabh, the CFO. We will start with opening remarks by Mr. Acharya and then open the floor to Q&A. With that, over to you, Mr. Acharya. Good evening, everyone. The global growth outlook remains intact despite ongoing uncertainty, with the IMF lowering its global forecast for 2026 just by 10 basis points to 3% while upgrading the outlook for 2027 to 3.4%. Global economic activity remained resilient during the quarter, with manufacturing support by inventory restocking amid the Middle East conflict and continued strength in the global tech cycle driven by AI-related investments. The disinflation trend that has been in place since 2024 appears to have stalled, prompting major central banks to adopt a more cautious stance. The adverse impact of the conflict on supply-side disruptions and elevated energy cost started to moderate in end June, the recent escalation and development remain key monitorables. Looking ahead, reconstruction-related demand could provide an additional growth impetus. India remains one of the fastest-growing major economies globally, with RBI growth projection at 6.6% for FY 2027, reflecting resilience amidst external headwinds. Industrial production and exports have performed well recently, despite the impact of geopolitical disruptions. The automotive sector saw sustained double digit expansion in domestic passenger vehicles and commercial vehicle sales over the past three quarters following the GST rate cuts implemented in September 2025. The rural demand remains healthy, underpinned by a strong Rabi harvest, which supported growth in four-wheelers, two-wheelers, and tractor sales. Some below-normal monsoon remains a key risk to monitor. The investment cycle also continues to strengthen, aided by a healthy public CapEx pipeline and sustained momentum across commercial real estate, energy, data centers, defense, and maritime sectors. India's steel consumption remains strong and grew by 8.3% in quarter one. With the imposition of safeguard duty in December 2026, India had become a net steel exporter after two years in FY 2026. However, in quarter one, India has become a net importer of steel once again. Imports grew by 22% quarter-on-quarter and exports fell quarter-on-quarter by about 16%. Looking ahead, domestic steel demand is expected to grow at a healthy rate of 7%-9%, providing a strong base for future capacity growth. In China, steel production was down 3.9% during January to May and consumption declined by 4%. Steel exports, including semis, fell between January to March, though they continued to remain at elevated levels. On sustainability, I'm happy to report that Project SEED, our flagship decarbonization project, has delivered a cumulative emissions reduction of approximately five million tons CO2 since 2022. We have also been systematically ramping up deployment of scrap steel, resulting in scrap utilization growth by 16% YoY in quarter one. JSW Steel had launched the GreenEdge brand, its low-emission steel brand, supported by a carbon bank of 1 million tons of CO2 credits certified by Bureau Veritas. In quarter one, we successfully executed our first GreenEdge export order, marking a key milestone in the journey from product launch to active market adoption. Before we get into the quarter one performance, I would just like to remind you that BPSL steel business was deconsolidated from JSW Steel's financials with effect from 27 March 2026. Hence, in our results materials this quarter, we have presented the previous period volumes and financials on a pro forma basis, excluding BPSL, to make them comparable to the current period. Coming to our operating performance. Utilization of capacities for our Indian operations stood at approximately 94%, excluding the BF-3, which was under shutdown, much higher than the 88% in quarter one last year. This was achieved through efficient operation of our assets across all plants. Our consolidated crude steel production at 6.59 million tons and Indian operations production of about 6.35 million tons were up by 3% YoY. However, excluding the BF-3, which was under shutdown, our consolidated production growth grew by a significant 15% YoY, driven by the ramp-up of our JVML operations. Consolidated steel sales for the quarter grew by 4% YoY to 6.25 million tons. We delivered our best Q1 flat sales, which grew by 9% YoY as we focused on flats due to better demand and pricing. Our total hot rolled sales were also the best ever for a quarter one, up 18% YoY. Carbon steel longs demand in the market was impacted by labor availability due to the state elections and diesel availability issues due to the Middle East conflict, resulting in lower long sales. Our sharp focus on the downstream segment enabled VASP sales to grow 8% YoY, accounting for 61% of our total sales. Sales to the institutional sector were the highest ever for quarter one, up by 5% YoY. Retail sales, however, experienced some pressure during the quarter due to higher imports and channel de-stocking. We achieved our best ever quarter one sales in the auto and renewable sectors, with volumes increasing by 18% and 25% YoY. Sales to the MSME construction equipment, bearings, and defense sectors registered substantial growth. Moving to our financial results. JSW Steel delivered a strong financial performance. Our consolidated revenues during the quarter one FY 2027 were INR 47,364 crore. Adjusted EBITDA stood at INR 9,373 crore with an EBITDA margin of 20%, while PAT stood at INR 4,696 crore. Steel prices recovered from early January this year and strengthened further through March. During quarter one, flat prices saw some moderate decline while long prices saw a significant correction. As we mentioned in last quarter's call, some part of the price discovery of quarter four was realized in quarter one. Thus, overall realizations were higher quarter-on-quarter. On the cost side, we were slightly higher than our guidance given in the last results due to an increase in various input costs on account of the Middle East conflict. Coking coal prices increased by around $17 per ton, slightly higher than our guidance of $ 12-$ 15. Iron ore costs were also higher during the quarter one in question. Moving to our overseas operations at the Ohio EAF facility, we have commissioned the vacuum degas in quarter one, which will enable us to produce higher steel grades, especially the API grades in U.S. Production and sales were significantly higher quarter-on-quarter as we had taken shutdowns for the caster upgrades in quarter four. Ohio generated a positive EBITDA for quarter one. The plate and pipe mill in Texas also performed better quarter-on-quarter basis due to better operational efficiencies and higher sales driven by a strong plate and pipe demand. Both U.S. operations generated a combined EBITDA of $16 million. The Italian mill also performed well in quarter one, reporting a higher EBITDA of EUR 7 million, though volumes were affected by an annual shutdown in May. We recently signed a program agreement with the Italian government for implementation of the rail mill modernization project. The agreement covers various aspects relating to the project, including a grant of EUR 33 million for the project. The second tranche of JFE's equity investment of INR 7,875 crore for JSW JFE joint venture transaction has been received on 30th June as scheduled. With this, the JV transaction has been completed. Last quarter, we had revised our stated maximum cap for gearing from 1.75x to 1.25x and leverage from 3.75x to 3x. However, we would like to reiterate that our comfort level will be to keep the leverage below 2.5x. Leverage and gearing have further dropped versus last quarter to 1.46x and 0.42x respectively. Our net debt stands at INR 45,750 crore and is substantially down from FY 2025. Our revenue acceptance is stood at $2 billion. During the quarter, we incurred a CapEx of INR 4,900 crore, and we expect to spend between INR 22,000-INR 24,000 crore in this financial year. Let me update you on the growth projects as well. The progress is good. At Vijayanagar BF-3, the expansion from three to 4.5 million tons has been completed, and the blast furnace was lit up on June 26th, towards the end of June 26th. The blast furnace is ramping up and is now at about 80% within a few weeks, when we'll add incremental volume from Q2. Our projects at Dolvi, Utkal, and the slurry pipeline continue to be on track. On 3rd July, we conducted the groundbreaking ceremony of our previously announced one million ton EAF and structural project at Kadapa in the Rayalaseema region of Andhra Pradesh. Key equipment orders have been placed, and commissioning is targeted for FY 2029. Our various downstream projects are progressing well, and in this quarter we have enhanced the scope of a few of them. We are adding about 0.44 million tons of capacity in the earlier announced downstream projects at Vijayanagar, Khopoli, and Rajpura. At Khopoli, we have also enhanced the product capability to include a wider range of high-strength steels, value-added coated steel products in the overall capability. Lastly, we are now adding a rail capability to the 1 million ton structural mill at Raigarh. Let me now update you on the developments on the raw material front. We are strategically enhancing our raw material security, as we mentioned, both on iron ore and coking coal. We have 25 iron ore mines, out of which 13 are currently operational, and we are working on operationalizing the remaining mines, as well as expanding some of our operating mines. We continue to bid rationally for new mines, and in May 26th, we had won the Pissurlem mine in Goa. As we increase iron ore production from our captive mines, we are geographically optimizing our sourcing, thus reducing logistics cost and lead times. On the coking coal front, we have taken over the Dugdha Washery from BCCL in June. We are modernizing and expanding the capacity of the washery to handle coking coal from our linkages with BCCL and our captive mines. We continue to progress on our other coking coal initiatives, including the MdR project in Mozambique and the three captive mines in India. For our MdR deposit, we have finalized and placed one of the major EPC orders and are in the process of finalizing others as well. The JSW One Platform, in which we have 60.52% equity stake on a fully diluted basis, saw steel volumes grow by 36% YoY. GMV was INR 5,919 crore in Q1, up 51% YoY. INR 1,987 crore of this GMV was driven by JSW One's credit offerings, which was also up by 49% YoY. JSW One continued to deliver positive EBITDA in quarter one of this financial year. Looking ahead, our volume should increase in quarter two, driven by the ramp-up of BF-3 in Vijayanagar and Ohio operations. There will be an impact on cost as coking coal costs are expected to be higher by $12-$ 15 in quarter two. Coking coal costs have come down recently, and that should be reflected in the subsequent quarter, and that is Q3. Iron ore costs are also trending down, and that should be favorable towards the end of quarter two and quarter three. India steel demand is expected to grow at a healthy rate of 7%-9% in FY 2027, and we expect to add an incremental demand of 12 million-13 million tons in India. Demand growth will be supported by public CapEx, as well as improving private CapEx, growth in manufacturing, and the robust auto sector. We are also seeing a broadening consumption across the country, across the rural side as well. With a strong balance sheet and improving operating performance, we are well poised to carry forward our growth journey and contribute to India's growth story. With that, we are happy to take questions. 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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. We also request that you please restrict yourselves to two questions only. You may rejoin the queue if you have any further questions. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question comes from the line of Alok Deora with Motilal Oswal. Please go ahead. Good evening and congratulations on good set of numbers. Sir, had a couple of questions. First is on the steel prices. How do we see the prices moving, and for us in the second quarter, considering that there has been a sharp correction, especially in the long steel prices. Some color on that, and also on the demand scenario, because the offtake has been pretty subdued in the first quarter. You briefly mentioned that it would be slightly better in Q2, but if you could provide some sense on the demand side. That would be my first question. The demand, as we saw for India, I think is quite good at +8%. We had drawn down our inventories quite substantially, if you recall, during the March quarter end. Some of the inventories we needed to rebuild for our operations of downstream and for our plate mill at Anjar which we have done, which is our usual process in the first quarter. On the long side, we did have an impact of lower sales due to a lower price from the secondary market, some labor shortage, and coal availability in some of our project core areas. We see the volumes improving in quarter two with the ramp-up of BF-3. You will see higher volumes from JSW Steel for the quarter two as the BF-3 ramps up and JVML continues to operate fully. On the pricing, it will be difficult to give an indication at where it will be. The long prices have corrected, as you also said, and we have also commented. The flat corrections have been moderate. We feel that the flat pricing is quite reasonably priced. Longs is a seasonal impact, which we see every monsoon. We feel that the prices would normalize as we go into the second half of this year with a good demand growth, normalization of projects, and CapEx growth, and in general, a seasonally stronger H2 as we go ahead. Sure. Also, sir, on the iron ore side, how much was the captive iron ore and what's the iron ore cost impact we could see in the quarter two? If you could just highlight on that. Our captive iron ore was closer to 30% or so, including the Netrabanda mine, which supplies to JJSL now. At about that range. Iron ore costs have gone up during the quarter. Direct iron ore costs have gone up by about INR 200 +, INR 230- odd per ton of iron ore. Oh, got it, sir. That's all from my side. Thank you, and all the best. Thank you. Our next question comes from the line of Amit Dixit with Goldman Sachs. Please go ahead. Yeah. Hi, good evening, everyone, and thanks for the opportunity. Congratulations for a good performance. A couple of questions from my side. The first one is that you have added a couple of small downstream projects, one at Dolvi III of around INR 2,000 crore in this quarter compared to the last one. Possible to elaborate on that? What is this downstream project all about? Also, the progress on the CRGO project that we have been discussing earlier would be helpful. Hello? Yeah, sorry. It was on mute, didn't realize. There is no downstream facility being added in Dolvi. There are some design changes in our raw material handling system because the conveyors which we had planned from the port operations to the plant were to go through a certain area of land, and that did not materialize. We had to create a higher structure on a double conveyor basis, and that resulted in a much stronger cost on the RMHS side. The project cost, there was some enhancement in the other areas, including some of the costs due to the Middle East conflict as well. We continue to remain very strong on the IRR. If you see the total cost of the project from a specific CapEx investment point of view, for a five million ton of facility, is still below INR 5,000 crore per million tons and remains very competitive. Yeah, got it, sir. That's helpful. The second question is essentially on the West Asia crisis only that we have been seeing certain companies reporting, in other sectors of course, the one-off costs. Did we also face some one-off cost due to maybe escalation in energy cost or propane or something, that we don't expect to recur possibly if the war settles down or situation becomes better? Was there some element of such kind of cost also in this quarter, if you want to quantify that? Of course. We did not see a very significant impact. Of course, some fluxes, gas prices went up, plus there were indirect costs in the form of higher container cost, shipping cost went up. We believe that most of it, for example, gases should reverse fully in this quarter. As we go towards war subsides and there is more stability, all of this should come back. How much it would have been as a ton of steel cost or something? It has been varying, depending on the product. There has been an impact on the fluxes, as Swayam mentioned. On the bunkering side, the marine fuel had gone up. That has an impact overall. Month-on-month, I would say it will be around maybe $20 kind of overall on the steel side. Correct. Okay. Sir, can you please be clearer? Sorry, I couldn't hear your last sentence. Close to about $20 per ton of steel. $20. Okay, great. That is helpful, sir. Thank you so much, and all the best. Thank you. Our next question comes from the line of Sumangal Nevatia with Kotak Securities. Please go ahead. Yeah, good evening. Thanks for the chance. My first question is on the raw materials. First, if you can share about our coking coal initiatives. In next three, four years, what volumes, what percentage of our requirement could be met from captive mines? And what sort of cost advantage can we foresee there? On iron ore, overall over next two, three years, from 30%, where are we looking at? The slurry pipeline, what sort of cost advantage or cost reduction do we expect from 2028 onwards? On the raw material front, first of all, your question was on the coking coal front. There are several initiatives we have taken. First thing is, we are developing a mine in Mozambique, India, which will have a start production by mid of 2028. That is one thing which we will have. We continue to get our material from our equity stake from Illawarra Mine in Australia. On the domestic side, we have started using partially material in one of the locations. We are seeing the benefits coming in. However, the actual quantification of the benefits will be done when we come to size and scale. Maybe in next three years, probably we will be able to scale it up to three million ton kind of input from the domestic sources, which will be close to about more than 10% of our total feed. This is our target for domestic coking coal. What about Mozambique, Australia in terms of volumes and cost benefit? Australia is close to about two million ton a year. Mozambique will start by mid of 2028. Our target is to take it to seven million ton per annum. Eventually, when the project fully starts. Understood. That's useful. On the iron ore? Iron ore, we continue to, as Mr. Acharya mentioned in the opening remarks, we have 25 mines as of now, out of which 13 are operational, and we are working on to make the rest of the mines operational, which should come in phases as and when we get the approvals and all those timelines are done. Hopefully we'll be able to. Yeah. I wanted to understand about the slurry pipeline. What sort of volumes do we expect to move, and the cost saving which we will incur? I think a couple of quarters back when we took this approval, definitely we had mentioned the capacity of the slurry pipeline is about 7 million ton, and we intend to do about 20 million ton out of that for now. The cost saving as compared to today is about INR 1,000 per ton. Per ton of iron ore. Yeah, per ton of iron ore. Understood. My second question- Please go ahead. Yeah. One more question. I just wanted to understand, given the BPSL deal, we've significantly deleveraged the balance sheet. What sort of rating upgrade and subsequently interest cost saving are we expecting to flow through in the coming quarters or next one to two years? Hi. Yes. Of course, we are in that cycle where our credit standing is getting evaluated, and you would have already noted, Fitch recently has upgraded us from B B to BB+ with a positive outlook. We have also gotten a rating upgrade from CARE. We expect this trajectory to continue. As far as cost is concerned, the fact that absolute gross debt is going to be lower, absolute interest costs should trend lower versus our historical numbers. We, over time, should start to see some advantage in terms of borrowing costs. It also depends on the mix. It's difficult to give you a number, but we should see gradual reduction also on the rate front of finance cost. Got it. Thanks. All the best. Thank you. Thank you. Our next question comes from the line of Pallav Agarwal with Antique Stock Broking. Please go ahead. Good evening, sir. I had a question on the standalone, the change in inventory part. If I look at the volumes, the sales volume were actually higher than the production volume. Is this change in inventory due to your work in progress or some of the raw material inventories? I think the way you should look at it is look at the overall India operations and see the numbers. On an overall basis, our inventory has gone up, as we mentioned, to some extent to build up some inventory, which was drawn down in March quarter for our downstream operations and finished good servicing. In addition to that, some of the slab transfer to our Anjar plate mill. Specifically for the standalone question also, which you asked, I think Swayam can answer. You know our Vijayanagar facility also hosts JVML, which is a subsidiary. Depending on capacity available, there are inter-unit transfer. JSW Steel side of volume gets reported under standalone. The transfer between JVML and Vijayanagar or vice versa is the reason why the volumes look higher. Sure. Could you actually just give us a breakup of when you mention consolidated volumes. Does that include standalone plus JVML, Ohio, and what else is included in those volumes? Consolidated volume would include the standalone plus JVML, plus Raigarh, plus Salem. That is in standalone. No. The consolidated volume. Plus U.S., Ohio. Adjusted for any intercompany volume elimination. Volume and sales profit elimination. Coated business. Coated is not part of volume? No. Coated is basically netted off. The transfers are netted off, but if you purchase in coated from outside, it becomes, again, part of overall adjustment. It includes all our units basically, other than JJSL. Sure. Okay. I'm assuming the Salem volumes being a one million ton plant and the Raigarh would not be very significant on a quarterly basis. Correct. Okay. Sir, just lastly also, you mentioned there was some spillover of benefits from Q4 prices, maybe auto contracts in Q1. Is it possible to quantify what exactly, how much was the benefit in 1Q? The auto prices for most of the customers have been finalized. Some part of the benefit, I think close to 90% of the benefit is already factored in the results of quarter one. One or two closures which are in the process will get concluded, and that will reflect in Q2. I don't have the exact numbers to give you with respect to how much, because it depends on product, depends from customer to customer, it will be different. Sure, sir. Okay. Yeah. Thank you so much. Thank you. Our next question comes from the line of Ritesh Shah with Investec India. Please go ahead. Hi, sir. Thank you for the opportunity, and congratulations on the set of numbers. I have a few questions. The first is a hypothetical one, sir. If hypothetically safeguard duties are not reinstated or extended, then how are we looking at the regulatory scenario? I understand anti-dumping duty investigations have been initiated. If you could provide some color on what has been proposed by the industry over here. I'm just painting a scenario wherein safeguards are not there and anti-dumping duties are there or not there. The imports into India in the last quarter have gone up. As we explained, we've become a net importer. We have seen imports going up from Japan, Russia, and China in particular. The government of India and the industry had applied also. The government of India has considered to investigate the case. The anti-dumping against some of these countries have been initiated. What the results will be, will be difficult to say. I think it's an investigation which is a quasi-legal process, takes its course, and the results will come out in due course. The anti-dumping is other than safeguard and can run in parallel to the safeguard, as is today also there in U.S. and Europe. Sure. That helps. Sir, my second question is, on the last quarterly call, we had indicated a CapEx of INR 1 lakh + INR 1 lakh, 26,000 crore. The total was, I presume, INR 2 lakhs, 26,000 crore. I see on slide number 41, we have given a split of INR 1 lakh 30,000 crore. I just wanted to have some clarity on that total number of 226 versus 130. I presume a part of it will be towards JV mining, et cetera. If you could provide some breakup with respect to those numbers, that would be great? The indications, I think you're talking about 220 or what is the, we're talking about the future for 62 million tons. Those are not approved in the board yet. What you are getting in the slides in the investor presentation of INR 130,000 crore is the currently approved budgets, which are there for our operations across all the locations. This includes JV mining, everything? This includes everything. Growth, mining, downstream operations, cost-saving projects, all of them put together. The projects which will further get added onto this, like Odisha Phase 2. Odisha Phase 1 is included. Odisha Phase 2, our Salav, our Odisha Phase 3, or any other equity investments in our operations of expansions in JJSL or in POSCO, those all would get added. In addition to that, our investments, once we fructify fully into our mining operations, if any of them gets added, would further add. Downstream operations, as we add capacity, we would add downstream operations. Those will all get added, and as and when it is approved, we'll come back to you and give you the numbers. Sure. Sir, just last one. We haven't spoken about the Maharashtra option, that 25 million tons that we have. Can you provide some light over here with respect to the underlying land iron ore and the timelines? No, as of now, there is no further update. We had indicated that Maharashtra, Gadchiroli is one of the sites under consideration because of the availability of iron ore in that region. We have one mining lease which we have had won in the auction. That's still in the early stage of evaluation, and the mine evaluation is going on. We will come back to you with further updates as and when we have. As of now, there is no change. Sure. Thank you so much. I'll join back with you. Thank you. Thank you. Our next question comes from the line of Amit Murarka with Axis Capital. Please go ahead. Yeah. Hi, good evening, and thanks for the opportunity. On JSW Coated, last few quarters, I see that the per ton EBITDA has consistently been around INR 6,000. Earlier, there used to be a range of INR 3,000-INR 5,000. I just wanted to understand what is driving this steady improvement in margins in coated and what is the outlook over there? The coated is basically the value-added space of JSW Steel. All the coated products are under JSW Coated mostly. In addition to some, we have facilities in Vijayanagar as well. Our effort has been to see that we build up capability of high grades and more of specialty products, which is able to meet both the industrial, the automotive, as well as the consumption retail demand. This has started bearing fruit. The template capability is also the packaging sector is doing well. Our branded products which we have been launching, including the JSW Silveron for Galvalume has gained a lot of traction. In color, apart from our JSW Colouron, which is the highest selling color brand, JSW Endura is also doing very well in the color space and getting a premium vis-à-vis competition. All these initiatives put together, I think, is improving the overall value. In addition to that, we have taken various measures to improve cost efficiencies in the overall business. Sure. Fair to say the run rate of margin and EBITDA look sustainable then? I would say there could always be some lags with respect to the hot rolled coil price increase versus the impact of prices going into the end-use segment, because the coated is more towards the end-use segment. I would say a range of between INR 5,000-INR 6,000 per ton is good. The zinc and aluminum prices is another factor which we need to consider as a variable, and in the recent case also, the aluminum has been on the higher side because of the Middle East conflict. That can also impact your overall cost. Sure. Just another question on the second quarter. While you said that the realization is a bit volatile, but given that coking coal is up and spot prices are down for rebar, like 2Q spreads, like in the previous quarter, I think you had given a guidance on cost and spreads. Could you ballpark at least indicate what kind of spreads movement could be there? Could it be down INR 2,000 or INR 3,000 per ton in second quarter? Seasonally, July-September is a quarter where you do see some movement of prices. I think in July, the long product prices, I feel, has more or less played out. The flat product prices have seen some moderation in the past quarter. Difficult to say whether it will moderate more in this quarter. I would look at it from the perspective that the next quarter we will have better leverage from better operating capacities. The BF-3 will ramp up. Ohio operations will be better, the absolute volume and the leverage thereof because of that on the cost would help us. Iron ore prices have gone down in the recent past. Benefit of that towards the latter part of quarter two should come in, and that would basically offset some of the coking coal cost increase, which we are likely to see. On the price side, I think I would not hazard a guess at this point of time. If there is anything which we are able to guide you on, our investor relations will circle back to you. Thank you so much. Thank you. Our next question comes from the line of [Rashi] with Citi. Please go ahead. Thank you. Just continuing with the last question. On the pricing, would you be able to give a sense of where spot is versus the last quarter on average for you? You'll have to just hold on. I would say from a flat steel point of view, the spot may be on an average from the starting of, if I give hot rolled as a reference, the starting to closing of June end would be about INR 1,000 lower. In the month of July, I think we'll still see the prices playing out. There could be a little bit more impact in this month. However, on longs, the impact has been far more. We have seen a drop from the beginning of quarter one, especially in TMT, to the end of quarter one, and now to some extent in July. The spot prices in TMT specifically is much lower than what we started with in the quarter one beginning. It would be in the range of about INR 7,000-INR 8,000 a ton in TMT. On the hot rolled side, I would say the prices on an exit price between quarter four and quarter one the hot rolled prices went up by INR 1,000, and I think it may marginally moderate from here, but I don't see too much of moderation on the flat prices. There's on- Wire rods are more or less. Sorry, just to finish on the long side. I think wire rod, the exit price of June, we have seen an impact of about INR 750-INR 1,000 per ton. The INR 7,000-INR 8,000 that you mentioned, the decline in the TMT prices, that is from the beginning of the first quarter to now? March exit to June exit. Spot to spot. Spot to spot. Got you. Okay. Secondly, on the volume side, your domestic volume growth, I mean, value overall year-over-year increase is 4%. Domestic volume growth has been only 1% and has been an increase in exports. Is this entirely attributed to weakness in longs or even flat volumes were muted? The institutional part, let's break up the volume into two. One is in the institutional part, the other one is the retail part. On the institutional part, we had strong sales. That was the best ever quarterly sales in institutional, I think close to 3.7 million tons or so. That has grown by 5%, in line with what you will see the India growth of industrial activity. On the retail side, it has been lower because there was a destocking in the channel, and because of the uncertainty on the Middle East conflict, I think the buying in the retail has been lower as we have seen it. In addition to that, we had an impact on the TMT longs. Alloy steel special continued to do well. Actually, it grew quarter-over-quarter. That has done quite well. Product-wise also, we have done well. I think if you look at the overall flats sales, overall went up by 42%, including export. If I look at HR, overall, our HR sales have been the highest ever. That's also grown by a healthy number. On flats sales, I think we have been by and large, good. Value added, we have been good. In retail, where also some flats is involved, there has been some impact because of destocking. Understood. Just last two quick questions. Did you mention that the impact of the West Asia crisis has been $20 for the quarter? Got that wrong. I think this basically is an indication of some of the cost. Yeah. We'll have to see as it plays out because it's a moving element to assess the situation. As we look today, it's close to about $20 per ton. Okay. Thank you. Thank you. Our next question comes from the line of Parthiv Jhonsa with Anand Rathi. Please go ahead. Hi. Thank you for the opportunity, sir. My first question pertains to your captive iron ore. In annual report, you have mentioned that you'll eventually be taking your AC to about 31 million ton or slightly higher than that. Would it be possible to quantify which mine would be contributing to that AC? Because currently, I think we are at about 19.2- odd million ton of AC. And similarly, sir, for coal, I think you mentioned that your volumes from Australia, which is about 1.9 million ton, and also from Mozambique, which will start from mid of CY. That means, would it be fair to assume that in 2028, your captive on a console level, your coking coal consumption would be close to about 20%-25% and not beyond that. How are you planning to take from your current, say, 30% of captive iron ore and almost nil in coking coal to, say, 50% to what has been mentioned in the annual report? Hold on for a second, please. Far as CY 2028 is concerned, when our Mozambique mine starts our coking coal domestically would be around 20% of the total requirement of the coke ovens. Similarly, about 20% would come from Mozambique, and we expect somewhere around 10% would be Australia of our total requirement. More or less about 50% would be from our own. Domestic is not all our own mines, but these are linkage coals on long tenures. No. This is you're talking about FY 2028 or 2030? CY 2028. These are like calendar year, few of the mines will be starting somewhere in mid of 2028. Because if I recollect correctly, sir, I think in the annual report, you have mentioned that Jharkhand block would start about two years. The BCCL, I think you have done 0.6 million tons, which would be about five- odd million tons of raw coking coal, that would also take about good two years. Wouldn't this mean that it would be more in 2029, 2030? Is it fair to assume? We had guided, if you recall last time, we had said that all our coking coal mines put together, which is Parbatpur, Sitanala, and the domestic linkages which we have got, we would be getting three to 3.5 million tons of coking coal. That three to 3.5 million tons of coking coal varied from time to time because depending on when the Parbatpur mines opens, the Sitanala mine opens, and the washeries get ready for the domestic coal linkages. Based on that, we had given some timelines. CY 2028 is basically two years from now. I think it will be combination, let Ashwin get back to you with the timelines. We don't have exactly the numbers here in terms of timeframe for each of the mines. No issue, sir. Absolutely fine. I will coordinate with Ashwin, sir. My second question is pertaining to your debt. Again, 64% of your debt as on 31st March, it was more like a foreign debt, right? Wherein your Forex impact was almost what, INR 5,600 crore. Considering all your CapEx is in India, wouldn't it be more convenient or more cost-effective for you to basically take debt in domestic and not have that Forex impact at the end of the day, especially when your rupee is depreciated? Yeah. That question just now, it's a good question. Swayam will answer that. Just on the coking coal part, I think if you look at our coking coal requirement, the hard coking coal requirement specifically, we would be roughly covering about 20%-25% of our coke, which you mentioned, which is something which we had guided earlier as well. That remains on track. Once Mozambique starts coming in, the percentage, as Arun said, will grow. Once Mozambique starts operating, then we would be growing that percentage further. Plus, we have recently taken over the Dugdha washeries, and that washery we are upgrading. We are trying to modernize. That would take about close to two years. That's why he said calendar years. That's from maybe the later second half of 2028. Dugdha washeries will consume the local linkage coal, and that would give coking coal in various grades for consumption in the domestic market. This is by and large the flavor, but I will ask Ashwin to come back. I just wanted to add some part of flavor to that, and Swayam will answer your question on this. On the foreign debt part, decision to tap different capital pool to stay diversified is a conscious choice we have made for years. I understand the starting point of the question is indeed rupee depreciation, which we saw last year. We are fully aware of it. We have taken steps to do coverage in terms of hedging. If you compare our foreign debt now versus three months back, you would see that a large part of the new proceeds which have come in has actually been utilized to repay large part of foreign debt. Okay. Given we have some bond maturities coming, you would see this balance automatically correcting, but we are taking steps to see that fluctuations do not impact our P&L. Okay. Would it be possible to quantify what is the current foreign debt? How much it has reduced from 54%? This, I will ask Ashwin to perhaps provide you bilaterally. Historically, we have kept around 50%-55% foreign debt in our total mix. We think that still helps the mix, given the kind of capital we will need. We don't really want to be completely dependent on domestic banking system and domestic capital market. At the same time in terms of onshoring of debt which you mentioned to reduce volatility, that part of the exercise I think Swayam and team have worked upon and we have taken steps to see that the volatility in the balance sheet- In the P&L. In the P&L. I'm sorry. The P&L specifically, the volatility will come down sharply. Okay. That's quite helpful, sir. Thank you so much, and best of luck. Thank you. Our next question is from the line of Pinakin Parekh with HSBC. Please go ahead. Yeah. Thank you very much, sir. My first question is on the sharp increase year-on-year in the export volume. Given Europe CBAM is in place, how do you see the export markets, especially in Europe, evolve for Indian steelmakers? Yeah. A question which most of us keep asking among ourselves. I think Europe will continue to remain a very high priced market as we move forward because of the CBAM impacting those domestic mill as well as the other imports happening over there. Today, if you have to see, U.S. market is about $250 for hot rolled coil. Europe market is close to about $800. India, I think it's about $600. China is about $500. As we move forward, Europe may start moving towards high cost steel market because of all these CBAM implications coming in. Having said that, there are certain quotas which have been reduced as of now. Europe will be deficient of steel and they will continue to import steel, and it will remain a lucrative market for imports over there. Tentatively, Pinakin, if you see the European export rate right now from India, it's in the range of 35%-40% in the last quarter also, as we have seen. I think the basic thing which from JSW's point of view, I think as Arun explained, one is that the pricing, it will go up, we'll look at opportunities which can reflect that. The other thing is that our percentage of exports still remains quite small. Our focus is 90% on the domestic market, and we'll continue to focus on that as the Indian demand grows. Got it. My second question, sir, is on blended pricing realizations. Q1 benefited, A, because of the flow-through of the delayed contract pricing and to an extent the product mix as you sold more flats versus long. When you move to second and third quarter, and given that there has been a decline in spot pricing, the flow-through to contract price is lower. Would that entirely happen in the second quarter or will that get pushed out into the third quarter? No. In the second quarter, from automotive point of view, I think we would still be better because some price impact of the automotive, it always comes with a lag. Automotive quarter two is likely to be slightly better than quarter one, is what we are expecting. On the contractual side, the quarterly prices get calibrated on a quarterly basis. Quarter one, we got the increase. Quarter two, there would be some correction if the market reflects that based on the formula which is already agreed on with the customers. Got it. That is very helpful. Thank you very much, sir. Thank you. Our next question is from the line of Satyadeep Jain with Ambit Capital. Please go ahead. Hi. Thank you. First I want to ask on JVML. I think two quarters ago, you mentioned that JVML may have lower EBITDA per ton versus standalone because it would be less vertically integrated in terms of downstream. Last two quarters been actually reporting higher EBITDA. I just want to understand, how do we recalibrate expectations on JVML profitability versus standalone? JVML, we had mentioned at that time that JVML does not have downstream capabilities, but it was adding the RH facilities of degassing, which would enable us to produce special steels. The RH has got commissioned and now therefore the special steels from JVML is available. That is one. Secondly, JVML is also supplying certain special grades to JSW Steel for the operations of downstream, which basically makes more productive sense to do in the JVML mill because it is a 1,650 wide mill, rather than doing that width on a 2,000 mm mill, which is the HSM-2 of Vijayanagar. That little bit of reorientation in that is also there. Earlier, during the initial days, we were also exchanging slabs between JVML and JSW Steel operations, which now also is stopped. Therefore, you will see JVML is getting an advantage of the full capacity. The cost leverage is now getting fully reflected. That is reducing the per ton cost. There is an incentive of 2% on the top line, which has now started increasing with increase in volume. The blast furnace, we have mentioned to you, if you remember, large blast furnaces and JVML in particular, the cost will be lower than the average of the JSW Steel Vijayanagar unit because they are smaller unit combinations. That is also playing out. That is why you will see a better EBITDA per ton. They are all built with the best available technology. Hot Strip Mill 3. Hot Strip Mill 3 is very productive, the production rate is much higher compared to the Hot Strip Mill 1 and 2. That is also advantage because 1,650 and you can roll far more thinner at a higher production rate. You said there's a 2% state incentive there. Sorry. Yeah, there's an incentive, 2%. Is it? Yeah, 2% incentive on the sales revenue. Yes. As a part of the Karnataka incentive policy. You can expect for your purpose of budgeting, maybe that JVML now with the benefits of leverage of volume, better BF-3 productivity, special grades emanating from there, the mill now able to give a lot of special grades. The EBITDA on a per ton basis will be similar to JSW Steel facility, including JSW Steel's downstream facility. Okay. Secondly, sir, on the iron ore, recently the Supreme Court verdict on royalty. Would it basically make bidders reevaluate just the bidding premium? Was that something in expectations that maybe if this goes away, this makes it higher return? Would the industry actually recalibrate 120%, 130% premium on iron ore based on this? Honorable Supreme Court judgment has come, which was on a long-overdue judgment. Whatever the bidding we had done in the past also, we had this condition quite available to us. This is the actual, every mine or every location has a different dynamics for bidding for premium. It depends upon the proximity from the usage, whether slurry pipeline is possible or not, or what the volume, what the size and scale. Is an adjacent mine closer to us? The bidding premium is dependent on that. It may differ. It may continue to remain in the range what we have seen in the past, or it may go slightly down. It purely depends upon user to user or bidder to bidder as well as the location. Okay. Thank you so much. Thank you. Thank you. Our next question comes from the line of Rajesh Majumdar with 360 ONE Capital. Please go ahead. Yeah, good evening, sir. Thanks for the opportunity. My question was on JVML. Again, I'm sorry to harp on this again, but it seems that the, sir, realization per ton sequentially has gone up by nearly INR 8,000 in JVML with an EBITDA per ton improvement of almost INR 6,500. Now, part of it is explained, of course, by the mix change and everything, but the 2% incentive was always there, and that's roughly about, say, INR 1,200- odd per ton. What can be the reason for the huge jump in the NSR in JVML and whether it's sustainable going forward? The JVML operations, as we were explaining, we can provide some more color. Ashwin can give you more details. The JVML EBITDA is primarily, as I mentioned, one is because of the special grade component of JVML has gone up. The cost of JVML operations have gone down. The revenue impact of 2% on the overall volume because the volume factor is increasing, the volume isn't resulting into higher 2% incentive in absolute terms. If you want more flavor, I think let Ashwin get back to you offline. Sure, sir. Sir, my second question was on the coking coal part on the BCCL. BCCL has been operating washeries for many years, and they had some reason why they could not ramp up the washery volumes, citing poor quality coal, et cetera. I was just wondering, what are the terms and conditions of this deal, and how much of volumes are we looking at from monetization of BCCL washeries? Yeah. Thank you. Our expectations from the volumes, as of now, we have a linkage of about 7.5 million tons totally from our own captive mines as well as linkage coal. Linkage is about five million tons, and our captive would be about 2.5 million tons. That will become operational within next two years. The linkage has started flowing in, to which we have a smaller washery in one of the units wherein we are washing the coal. The full scale benefit of this linkage would start happening within two years' time. Meantime, we'll continue to look for more linkages. BCCL has been very proactive now since coking coal is into the critical minerals, so there's a special focus from the government as well, and they are bringing more and more coal for the linkage. As we move forward, we will improve our washeries capacities at Dugdha and Parbatpur, and then we will take it forward from there. Probably more color on the coking coal linkages will happen as and when the BCCL comes up with the linkage auctions, and we'll participate in that and on the winning side. Only we can explain about it. Yeah. Sir, the financial aspects of the monetization of the deal, as in do we pay BCCL just rentals or what is the term and condition of the deal? No, we had acquired this washery completely. It's owned and operated by us. It is totally off BCCL books and totally owned by us. Yes. What was the consideration for that? I believe we can send it across to you, but it was a bidding process through which we have taken it. It was an open participation on the website of MSTC. Okay, sir. Thank you. Thank you. Our next question comes from the line of Jashandeep Singh Chadha with Nomura. Please go ahead. Yeah. Hi. Thank you for the opportunity and congratulations on the great quarter number. Sir, my first question is regarding. I hope I'm audible. Yeah, you are. You're audible, sir. Yes. Sir, my first question is regarding the Indian steel industry, especially in the first quarter. As you mentioned that this quarter the industry became net importer. I want to understand if you can shed some light on what are the reasons why the imports have suddenly increased despite safeguard duty still in effect. What steps the industry is taking or how should we start accounting for over the next couple of quarters? Will the industry remain net importer and what impact will it have on HRC? Sir, just wanted to understand. The hot rolled, some of the cargoes which were destined for the Middle East because of the conflict have landed up in India also. That has resulted in some increase. Second is the imports from FTA countries like Japan has gone up. We have to see how it plays out in the quarter, this is an area we have to monitor. Based on the data provided, the Government of India has initiated this anti-dumping on the request of the industry. As we have seen in the past, if there are cases for putting a fair trade in place, I think those steps will be taken to see that the imports to that extent is restricted. Unfair trade is restricted. From a availability supply point of view, I think India is very well supplied. If you really look at our capacities, we are now close to 225 million tons of capacity. In last year, our production was 169 million tons as a country. This year it would be more by whatever, 10, 12 million tons, we do not see that there is any supply gap from India perspective. Capacity is good enough to meet the Indian requirement. Sir, just one clarification. This supply-demand mix that you're talking about, will it be true for both flats as well as longs? Longs, the imports are hardly anything. Actually, your 85% of your imports are flats. I meant supply and demand for India only? I think by and large, the secondary capacity of longs is larger. They operate at a lesser capacity utilization than the primary players. That's the only difference. The flat capacities are mostly with larger integrated players, and they are all more or less operating very efficiently. The capacities which are getting added in the flat base, where some material is basically the capacity ramp-up takes time. That's something which is playing out in some of the capacities which have come up recently. I think that's what I see the difference between flat and long. We would be adding like our capacity of two million tons, let's say 1.5 million tons here and some debottlenecking which we are doing. That would add some capacity of two million tons. It takes a few months for the capacity to fully ramp up and come on stream. That's the only thing which we see in flats. Understood, sir. Sir, one question on the net debt. What is the peak debt which the management is estimating, and what will be the net debt to EBITDA on a sustainable basis? As Jayant mentioned earlier, our comfort level is to stay below 2.5. We are right now at 1.46, and we have guided an upper limit of three. We want to stay below 2.5, is what we think we will aim for. Also from a capacity flats point of view, I think you can factor that our Dolvi asset of phase three, which we have guided by September 2027, is something also which would be available for the next financial year from a capacity point of view. Understood, sir. Thank you so much. I'll join back with you. Thank you. Ladies and gentlemen, we will now take one last question, which will be from the line of Rahul Gupta with Morgan Stanley. Please go ahead. Hi. Thank you for taking my question. Two questions. One, when you talk about September quarter being seasonally weak, especially given how rebar prices have behaved in recent months, can you help us understand how spreads are looking right now vis-à-vis the earlier years with respect to seasonality? That's my first question. Not very different. Your long prices for TMT, which seasonally what you see in the quarter, it is similar. As a matter of fact, if you were to look at the price in December of 2025, the pricing of TMT was probably a little lower than what it is today. It does move through a seasonal pattern. I think it is in a similar vein that you see. The prices had gone up to some extent sentimentally during the last quarter and April, and there is some correction in the seasonal factors. I would take it to that. Keep in mind that our exposure to TMT, which is the one which is impacted, is not very much. How much is our percentage of TMT of the overall? 20%. 20% on? Sorry. Including long. No, no. Just give me a second. It's roughly about 10% of our overall volume. Therefore, the impact of that is not going to be material on us. Got it. That's helpful. My second question is on industry demand. Now, first quarter saw around 8% growth for the industry, and you noted that industry may do 7%-9% for a full year. What gives you confidence that the industry may sustain demand beyond monsoons? Similarly, what could be the risk of weak monsoons and inflation beyond monsoons? How should we look at that? Thank you. Just on a positive note, I just want to take you back to 2019-2020, when we were at 100 million tons, and I think we have faced multiple challenges of COVID, wars, and after that, the Russia, Ukraine, the Palestinian, or the Middle East conflict. Last year, after six years, the demand from 100 million tons went to 164 million tons in India. 64 million tons up in six years in spite of these challenges. I think India, I feel, is a very resilient country. Our growth is very strong today. The resolve with the government from a structural reform point of view to actually improve our self-reliance is also increasing. Therefore, I feel the domestic demand will continue to remain strong and be sustainable. Whether you see in a year 12 million tons increasing or 13 million tons increasing is a matter of discussion. I think directionally, we will continue to add capacity, and we will continue to add demand in the country as we grow, as we develop our infrastructure in the country, manufacturing in the country. Does that answer your question broadly, or do you think that needs some- I get the context that structurally India is a growth market. Just I was being more myopic to understand how are you looking demand beyond monsoons. Is there any risk to demand given how El Niño and weak monsoons are playing out? That's helpful. Thank you so much. I would say that it's difficult in a steel industry also, which typically takes a few years to really. We look at the medium term. We don't look at quarter to quarter as such. Just to give you a flavor also, I think the H2 has usually been better than H1. Typically, if you were to see that every H2 is a little better. The volume starts picking up as monsoons wears off, the festive season comes in, and this cycle is there by and large every year. From December onwards, you will see the long prices moving up. Your activity on the projects picks up from November onwards. Your festive season kicks in and January-March is a seasonally strong quarter. H2, back-ended is always strong. I would still remain optimistic and hopeful that it will continue on a similar pattern. That's helpful. Wish you all the best. Thank you. Thank you. Thank you. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen. Thank you very much for a patient hearing. As we said, the outlook for the quarter, we will see increasing volumes in the quarter two. While the coking coal prices are going up for the quarter, however, the prices in the recent weeks have started coming down, and that would reflect on the cost in the subsequent quarter. Iron ore prices is also trending down, and that would benefit us partly towards the later part of Q2 and balance in Q3. We remain very optimistic on the India growth story, and with our capacity increases, we are poised well to be able to service that growth. Thank you very much. Thank you, ladies and gentlemen. Have a good evening. Bye-bye. Thank you. On behalf of JSW Steel Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.