Ladies and gentlemen, good day, and welcome to Steel Authority of India Q3 FY 2024 conference call, hosted by Nuvama Wealth Management. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phones. I now hand the conference over to Mr. Ashish Kejriwal from Nuvama Wealth Management. Thank you, and over to you, sir. Thank you, Aditi. Good afternoon, everyone. On behalf of Nuvama Institutional Equities, we welcome you all for post-result con call of Steel Authority of India. We are delighted to have with us Mr. Praveen Nigam, Executive Director of Finance and Accounts, along with his team. Now, I would request Mr. Nigam for his opening remarks, and thereafter, we will open the floor for question and answer. Over to you, sir. Yeah. Thank you, Ashish Ji, and good afternoon, everyone. Let me welcome all our investors and analysts who are joining this results con call for the financial results of SAIL for the period ending quarter three of financial 2024 and nine months of financial 2024. Though the detailed results are already available on the website of the company as well as the stock exchange, I would briefly apprise you on the same before we move to the question and answer session, where we would be happy to address your queries. As far as the world economy scenario is concerned, which we have seen operating, the global economy had moved a long way from the aftermath of COVID-19. The same, however, was impacted adversely during 2022 on account of multiple factors like inflationary pressure, consequent tightening of the monetary policies, geopolitical situations leading to disruption in supply chain, slowdown in the major economies like China, Europe, et cetera, causing major imbalance in the global demand supply et cetera. The inflationary situation has eased faster than the expected in 2023, reflecting favorable supply side developments and tightening by the central bank, which has kept the inflation expectation anchored. At the same time, high interest rates aimed at fighting inflation and the withdrawal of physical support amid high debt are expected to weigh on growth in 2024. Meanwhile, on account of greater than the expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China, global growth is projected at 3.1% in 2024 and 3.2% in 2025, which with the 2024 forecast, which is 0.2% higher than that in the last World Economic Outlook. As far as the world steel scenario is concerned, the global steel industry saw the year 2023 pick up slowly, with China recording negative growth in the initial months. The performance especially caught up later and helped the world crude steel production stand at nearly the same level as 2022. Despite this modest performance by world's largest steel producer, its share in the global output has risen consistently and reached a level in excess of 55%. This highlights the contraction of performance by rest of the world, barring isolated performance by India and few other countries. However, the projection for steel demand points towards turnaround during 2023 and 2024, although again, a gradual recovery. The World Steel Association, in its short range outlook, published during October 2023, has projected a growth of 1.8% and 1.9% during 2023 and 2024, respectively. Let me talk about the Indian economy also. Meanwhile, the Indian economy continues to fare better than its counterpart, and this has maintained relative stability in the domestic market. As per the advanced estimate published by Ministry of Statistics and Programme Implementation, the Indian economy is projected to grow at a rate of 7.3% in financial year 2024, after registering a GDP growth of 7.2% in financial year 2023. The projection by some of the major agencies like RBI, World Bank and IMF, etc., the economy is poised to grow in the range of 6.5%-7% in financial 2025, helping it to maintain its position as one of the fastest growing amongst major economies. At the same time, the economy has countered the forces of inflation better than the other economies by judicious use of increase in the repo rate by the RBI. Now, let me talk about the Indian steel industry. Indian steel industry has consistently been growing in terms of production as well as consumption number in the post-COVID era. During April to January, financial year 2024, the crude steel production has grown by 13%, and the consumption of finished steel has grown by 14%. As per the WSA, the demand in the India is projected to grow at a rate of 7.7% during calendar year 2024. With the price of imported coal declining of late, the industry can also have a sigh of relief on the cost front. However, we need to watch out for the subdued price in the steel at the same time. The price of steel have also been operating in narrow band, but there are hopes for improvement in the near future. Now, as for the performance of the company is concerned for the quarter, coming to the company that is Steel Authority has registered the best ever fiscal performance during nine months of the financial 2024. The performance of the company during nine months 2024 stand as follows: The saleable steel production stood at 13.718 MT. That is an increase of 9% over CPLY. The saleable steel sales volume stood at 12.463 MT, thus seeing a growth of 8% over CPLY. The NSR or the mild steel, however, during the period was at INR 54,921, which was 6% lower than the CPLY. Sales turnover was at INR 76,801 crore. That is an increase of 3% over CPLY. As for the profitability is concerned, the company has registered an EBITDA of INR 8,451 crore. That is an improvement of 41% over CPLY. Profit before tax and profit after tax stood at 2,359 crore and 1,722 crore, as against INR 1,157 crore and INR 854 crore, respectively, during CPLY. As for the performance of the company during the quarter three is concerned, the saleable steel stood at 4.551 MT. That is improvement of 4% over CPLY, but a reduction of 4% over the previous quarter, that is Q2 of financial 2024. The saleable steel sales volume stood at 3.813 MT. That is a reduction of 8% over CPLY and 20% over the previous quarter, that is Q2 of financial 2024. The total saleable steel inventory stood at 1.795 MT. That is an increase of about 0.616 MT over the previous quarter, which was 1.179 MT. And as far as the MS realization for the five integrated steel plants during the quarter was INR 55,361 per ton. That is an increase of 4% over the previous quarter. However, sales turnover at INR 23,148 crore, that is a decrease of 7% over CPLY and 22% over the previous quarter. On the profitability front, the company registered EBITDA of INR 2,319 crore, improvement of 5.5% over CPLY, but a decline of 33% over the previous quarter. Our profit before tax and profit after tax stood at INR 461 crore and INR 331 crore, as against INR 635 crore and INR 464 crore, respectively, during CPLY. As for the sustenance and the operational efficiencies are concerned, in the area of operational efficiency, the company has been making steady progress for reducing coal and coke consumption, increasing use of CDI, bringing down the specific energy consumption and improving the transformer productivity. Continuing with the drive towards improving the product mix, the proportion of semis in the saleable steel production has stood at less than 50% by engaging conversion services in and around the plant and the demand centers. The percentage of share of semis in sales has been even lower at 7%. Going forward, the boost from the various measures announced by the Government in the recent Interim Budget for infrastructure spending is a boost for steel demand in the country. With the overall outlook positive for sustained growth in domestic consumption, we are hopeful of the resilience and consequently, the margin will improve for the company in the quarters to come. With these words, I hand it back to Mr. Kejriwal for opening the question and answer session. I'm sure you all have lots of queries on the performance of the company. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Amit Dixit from ICICI. Please go ahead. Yeah, good afternoon, everyone, and thanks for the opportunity. I have a couple of questions. The first one is essentially on the coal cost. If you could let us know the coal cost for this quarter, and what is the percentage or in absolute terms, change QoQ? And what kind of coal cost on consumption basis we can expect for Q4? Yeah. As far as the coal cost consumption is concerned, in Q3, the consumption was 26,510 tons, and in Q2, it was 22,751 tons. That is almost an increase of almost INR 4,000 per ton from Q2 - Q3. Sir, what do we expect in Q4? In the Q4? Yes. Yeah. Actually, Q4, we do not have, but as for the January is concerned, in the January, the prices are at INR 26,333, which we feel will remain in February and March also. ... Okay, so we see roughly INR 300 increase in Q4 as of now, as the things stand now? Yeah. Okay. Amitji, let me tell you this, INR 26,000 was excluding the CDI coal. If we include the CDI coal, then our coking coal cost was INR 23,700 for quarter three. Okay, INR 23,700, and this compares with INR 22,751 number? No, no, no, that then because what I have told you is the imported coal consumption cost. If we include the CDI also, then both the costs will come down. And if we include CDI, then the Q2, it was INR 23,271, and Q3 it was INR 23,693, including CDI. On sales volume, given that we have done around 12 million tons, 12.4 million tons in nine months, what do you expect to end the year with, and what is the target for next year? Yeah, actually, we will try to do the best what we can, but we cannot give you any number as of now. Okay. Sir, any indication on how the demand has panning out in January? Is it better compared to Q3? Because we have built sizable inventory as well. So we just wanted to get your view or views on that. Yeah. In the month of January, we have done a sales of 1.489 million tons. You can say roughly 1.5 million tons. Okay. You saw demand improving in January compared to Q3? Yes. Yes. Okay. Okay. All right, sir, I have other questions. I'll come back in the queue. Thank you so much, and all the best. Thank you. Our next question is from the line of Ritesh from Investec. Please go ahead. Yeah. Hi, sir, thanks for the opportunity. Couple of questions. Sir, first, can you detail how are the flat prices and long prices trending and what it means on import parity basis? Yeah. As far as long is concerned, in Q3, long was INR 53,938. You can say roughly INR 54,000, and the flat was INR 56,600. Okay. Sir, how much will be the spot right now? Yeah, in the January, as far as the long is concerned, it is INR 51,900, and the flat is around INR 53,000. Sir, on an import parity basis, are we trading at a premium discount? How should we understand that? Just a minute. Yeah, presently import prices are at par with the domestic prices. Okay. Sir, I have just two other questions. Sir, we had a lot of ore inventory, which was there, which we were looking to monetize. Sir, any specific update over there? Actually, there were two states where the ore inventory was there. In Odisha, there was no issue because the permission was there and that inventory is getting liquidated. As far as Jharkhand is concerned, initially there was no permission for the movement, but now we have got the permission for using internally within our plants. So we have started moving the inventory. This is the update as far as the inventory in Jharkhand is concerned. That is the old inventory which we have accounted for. Correct. Sir, would it be possible for you to quantify the impact of the Odisha sales, wherein you say that it is getting liquidated? What sort of impact it was there on Q3 and nine-month basis, if it's possible? That we will give you offline, because right now I'm not having that figure specifically for Odisha inventory. That is, finds what we have sold. Sure, sir. And so just last question, specific to RINL. What we understand from the print media was, I think one of the other private listed companies, they were looking for some working capital infusion in exchange of metallics. Did Steel Authority consider a proposal of that sort, given both the entities are PSUs, or is it something that we have not looked at? No, no, no, no. We have. Yeah, yeah, there's no such official communication to us. Well, we have not given any working capital assistance to RINL as of now. Okay. But sir, will we be open to something of that sort? We have to see. We have to wait. Let's let the proposal be there, then only we can answer. As of now, it is difficult for me to comment on this. Sure, sir. This is very helpful, sir. Thank you, very much. All the very best, sir. Thank you. Thank you. Our next question is from the line of Rajesh, from B&K Securities. Please go ahead. Yeah, good afternoon, sir, and thanks for the opportunity. So, sir, I think that, you have given the outline of the NSR fall in Q4. That is very helpful. However, Q4 is normally the highest volume quarter for the steel company. So is it, you know, worthwhile to assume that, on higher volume, the fixed costs, other expenses will be spread out in such a way that the overall margins will not get impacted or they will get impacted? ... As per the trend of the current year is concerned, the NSR is still under stress in Q4 also. So what you are saying that Q4 historically has been the best NSR, that we are not seeing in this particular quarter, yeah, in this particular- Not, not, not the best NSR. Highest volume, since the highest volume will be spread over the higher fixed cost. So the NSR fall will be captured in the cost, in better utilization of the assets or, will we see a fall in the margins? What we have said that we will try to maximize the volume, but how much that we cannot quantify as of now. What we have done in the month of January, that we have told you. Okay. But it is difficult for me to quantify the volume in February and March. But yes, we will try to maximize it as much as possible. Right. Right, sir. And so my second question was that, out of the INR 30,000 crore debt you have outlined, what is the short-term debt or what is the inventory-related debt that you have? And will that come down substantially when the inventories come off a little bit in this quarter? This entire INR 33,000 actually is not the short term. It is basically short-term debt, long-term debt, and, this accounting of the leases as per the Ind AS. This INR 33,000 debt is consists of all these three. As per the liquidation is concerned, yes, if the inventory will be liquidated, we are trying to bring down this debt, in Q4 as much as possible, but, difficult how much it will come down. If you want to see that in the month of December, our total debt, in absolute term, I'm not talking about the accounting debt, absolute term, it was INR 28,000. Okay. What is it now? In the month of January, it has increased. Now, presently it is INR 29,000, as of the January is concerned. 31st January figure. Okay. Despite the higher sales, the debt is still high? Yeah, debt is still high. That we are trying to bring down in February and in the month of March, because we are expecting a higher sales and the coal price probably will remain constant, so the debt should come down. Okay, sir. And sir, what is our target capacities over the next two years? What is the CapEx we will do, keeping in mind the debt that we have? And what kind of debt, equity or debt, EBITDA ratios will we assume in terms of the CapEx and the overall increase in capacity we are targeting going forward over the next two or three years? For next year, we have taken a target of INR 6,000 crore. That much I can tell, but thereafter, what would be the CapEx, it is difficult to predict as of at this juncture. But next year we have taken a target of INR 6,000 crore CapEx. What are the target capacities, sir, over the next two or three years from where we are right now? We are almost at, you can say, 95% of the capacity, so we'll remain in this range only. The next expansion will happen after two years or the next big expansion, once we are... Because we're already at 95% utilization. The next big expansion is going on and what we have already said that by 2030-2031 we are expecting that our capacity will increase to around 35 million tons. Okay. I wanted actually a more, three-year kind of picture. I know 2030, 2031, you've given that figure, but three years will be about 18 million tons or 20 million tons. What kind of figure can we assume for that? No, no, no. Three years, three years, three years, there will be, will not be any major shift as the capacity is concerned. Okay. Okay. Thank you so much. Thank you so much, sir. That is good. Yeah. Thank you. Thank you. Our next question is from the line of Kirtan Mehta from Bank of Baroda Capital Markets. Please go ahead. Thanks. Good afternoon, sir, and thank you for the opportunity. I wanted to check in terms of the near-term demand trends, if you would be able to elaborate beyond the January sales numbers to give any colors around how particularly the sale is happening on the volume side, it would be helpful. You see, we have already given you January numbers. That was 1.5 million tons. Traditionally, the demand is strong in the month... as far as Q4 is concerned. We are expecting that the demand will be there. We are trying to maximize it, but how much that I cannot quantify at this juncture. Sure. In terms of the... Another question was about the rail, provisional rail price hike based on the FY 2022 numbers for the FY 2023. Are we sort of pitching in for the FY 2023 hike at this point of time, at least at the provisional rate? When is that likely to come through? We have taken up with the Railways. We cannot for sure say whether any benefit will come in Q4 or not. It's very difficult to commit at this juncture, at this moment. Yes, we are taking up with the Railways for giving us a provisional price, but no commitment as of now. Sure. And one last question was between the Q2 and Q3, EBITDA per ton bridge. So what we understand is that if we exclude the effect of the prior period rail benefit, there was a sort of an improvement into the EBITDA per ton number, and this was despite basically the INR 4,000 per ton increase that we have seen in the coking coal price, which was partly offset by the increase in the realization. So would you be able to explain the delta between Q2 and Q3? Just a moment.... Yes. In Q2, our EBITDA was INR 4,043, and in Q3, it is INR 2,319. The major reason for difference is that in Q2, we have got this rail price revision of INR 1,700, approximately. And then there were certain improvements in NSR also. Hello? Sure, sir. I'll come back in the queue. Thank you. Thanks for this call. Thank you. Our next question is from the line of Pallav Agarwal from Antique. Please go ahead. Yeah, good afternoon, sir. So just wanted some clarification on our saleable steel capacity. So if I remember, it was about 20.2 million tons, and, you know, there was some balancing issue with the Bhilai caster, so is that now sorted out? Just a minute. Yeah, the implementation of the caster is going on Bhilai, and we are expecting that next quarter will come to it. Once that is done, we'll have a saleable steel capacity of 20.2 million tons? 19.5 million -20 million tons. Yeah, it will remain between 19.5 million tons -20 million tons. Okay. Right now, if I look at, you know, the nine-month saleable steel production and probably extrapolate that, then the utilization comes to about 90%-92%. So how much, you know, so what is like any ramp up over the next couple of years? Can we reach, you know, this production levels of close to 20 million tons? We will try to sweat our asset further, but yes, some improvement will be there because there are certain capacities in few of our plant, and they will try to exploit. Sure, sir. Also, on, just on the employee cost. So I think, you know, broadly, we are at a quarterly run rate of INR 3,000 crore of employee cost, and the number of employees continues to, you know, reduce. So going ahead also, you know, we broadly see this increasing in line with inflation or, you know, or this will be probably stable at these levels? As far as this year is concerned, it will remain in the range of INR 3,000 crore, as you said, per quarter. But yes, later on, as the employee numbers will go down, this cost will come down further. Okay, so any percentage if you can guide us on? This it depends upon the superannuation, which is nearly about 3,000 employee per year. Sure, sir. Okay. Sir, lastly, just on, you know, on the royalty that we pay on our captive iron ore, I think the, the pricing is linked to the general IBM price index. So, you know, with NMDC having taken significant price hikes, so will that impact reflect in higher royalty premium going ahead? No. Naturally, if the NMDC has increased the price, if the IBM price will go up to automatically the royalty impact will be there because the royalty is calculated on the IBM price. Have you seen any impact on 3Q over 2Q on this? Yes, some impact will come, but that calculation we are not having at this juncture, how much impact will come. Sure, sir. Okay. Yeah, thank you. Thank you. Our next question is from the line of Aditya Welekar from Axis Securities. Please go ahead. Yes, sir. Can you just come again on coking coal consumption cost in Q4 versus Q3 on a blended basis? I know you have touched based on that, but if you can repeat that. On blended basis, including the CDI in Q2, it was INR 23,271. In Q3, it was INR 23,600. Okay, and same for blended realizations, Q4 - Q3? average realization, if you talk, then it is in Q2. Q2 was INR 53,400, and in Q3 it is INR 55,300. Okay. And if you can elaborate on the status of the expansion projects, when we are planning to peak on the CapEx and various approval stages and all? We have already told you that we have the plan for increasing the capacity to 15 million by 2030, 2031. As well the CapEx is concerned, expansion is concerned, just a minute. We have already got an, you can say, stage one approval from SAIL Board for expansion of 4.08 MT of our one of the plant, IISCO Steel Plant. So stage one approval of the IISCO Steel Plant is already there. PFR for the expansion of Bokaro is complete and it has been accorded in-principle approval by the SAIL Board and consultant has already been appointed for the preparation of the DPR. As for the greenfield expansion of the Durgapur is concerned, it was submitted in October, and the same has been accorded in-principle approval by the SAIL board, and we are expecting it will come soon. This is the status of the expansion as of now. Yeah, thank you. you. That's helpful. Thanks. Thank you. Our next question is from the line of Amit Dixit from ICICI Securities. Please go ahead. Yeah. Good afternoon. Thanks for allowing me the follow-up, sir. I have a couple of questions again. The first one is on what kind of finished good inventory we would be having at the moment? Presently, as of 31st December, it is 1,795,000 tons. Yeah, 1.7 million, you can say. 1.79 million, you said, right? 1.8 million. 1,795,000 tons. Okay, okay, okay. And sir, what was the working capital buildup in Q3? And how much working capital unlocking can we expect in Q4? This, I will provide you offline. Okay, okay. So just wanted to understand here, you know, from a... I mean, I know you were speaking about the EBITDA bridge in answer to Keaton's question, but unfortunately, you know, my line got disconnected. So for the sake of repetition, just wanted to understand, we had a negative operating leverage QoQ, but still our EBITDA per ton, if I look at it, if I exclude the benefit from the rail provisional rail prices in last quarter, it was not as impacted as other peers. One thing I understand is, of course, the, you know, the coal cost increase was much lower. But what other factors played out in this quarter? Because other expenses also, if I look at it, that is significantly within control. Just wanted to understand, what did you do differently in this quarter compared to, I mean, your peers in the industry? This, this detail we will provide you offline, because I, right now I'm not having that, that breakup what you are asking for. That reconciliation between the two, that is Q2 and the Q3 EBITDA, that we are having, that we have explained also. Yeah, if you could repeat it again, sir, maybe my line was logged off, so, you know, I was unable to hear you. Yeah, just a minute. Yeah. Our EBITDA in Q2 was INR 4,043 crore and EBITDA in Q3 was INR 2,319 crore. The major reason for this downfall in Q4 was that rail price impact what we have taken in Q2 was INR 1,700 crore. We have got better rail realization as NSR is concerned, to the tune of INR 600 crore. Some material uses, there was a negative impact of INR 333 crore, and the volume mix INR 1,037 crore. So these are the major reasons for EBITDA which came down from Q2 - Q3. If you exclude the rail price, then this EBITDA was better than the Q2. Okay. All right, so maybe I will take it up offline. Okay. Thank you. All the best. Our next question is from the line of Manav from YES SECURITIES Limited. Please go ahead. Yeah. Hi, good afternoon, sir. Thank you for the opportunity. My first question is basically, you know, on the debt part. I wanted to just come back again. Earlier, you know, we had a discussion, and you had said that probably by the end of this year, we would roughly be in the range of INR 23,000 crore. And, you know, on a QoQ basis, our debt has increased again. So, can I assume that there will be significant debt reduction in the next couple of months? If you could just enlighten me on that. Yeah, we have said that by the end of this, so financial year, our debt should come down to the level of INR 23,000-INR 24,000. But because of the pressure on the NSR and the coal prices, which in the Q2 were quite low, we were expecting that this will continue and our debt will come down further. But as you know that the coal prices have increased and there was a pressure on the NSR, that has resulted in increase in debt. I'm not expecting that in February or March, by the 31st March, there will be any major reductions as debt is concerned. It should be a time that by increasing the sale volume, we will reduce our debt to some extent. Yeah. Oh, okay. Sure, sir. My other question is, it's not basically for this particular quarter. I was just going through the company's annual report, and, you know, the total amount of contingent liabilities, mentioned over there were, you know, counted roughly about INR 38,000 crore. As you know, the claims against the company and pending the judicial decision. ... I just wanted to know the nature of these claims and, you know, what is the company's outlook on how much of these liabilities can we see as a cash outflow in the upcoming fiscal? These are actually most of the cases are sub judice, and they are pending at various courts. As far as our understanding is concerned, we have a very fair chance of winning this case. We are continuously evaluating these cases, and as far as we are concerned, we have a better chance of winning these cases, and these are pending in various forums. These are all sub judice. Okay. Okay. Sure, sir. I'll then turn back to you. Thank you. Our next question is from the line of Vikash Singh from Phillip Capital. Please go ahead. Good afternoon, sir. Sir, I want to understand first that our semi is mainly the composition is very high in DSP and IISCO plant. So the steps we are taking to bring it down, and realistically, can it be bring down to the level of BSL or BSP or not? As far as Durgapur is concerned, particularly, then we have a plan to bring a TMT mill there. So once the TMT mill will come, the entire this, semi which is being sold in the market from Durgapur, will get consumed there and will be converted into the finished goods. And we are also trying to increase the production of our, our mills, so there also, additional consumption will come. This TMT, what is the timeline and the CapEx which you are investing? Yeah, it is, it is actually 1 million ton plant we are bringing in Durgapur, and I think about 0.4 million also on the COM basis. But timeline is not yet decided. Understood. Sir, second question pertains to the new expansion in IISCO. Given that if this kind of a plant is already there, then I assume that the basic infrastructure would be there. So why the CapEx cost per ton seems to be pretty high with reference to the older comments? It is a totally greenfield project. It will come in the area in which they were having the old plant. It's not that this expansion is of the existing plant. The entire new setup is going to come in the IISCO. It is a greenfield expansion. Right. Flat. That too, in the flat. But then you have already the land with you, with the site leveling, etcetera, would have been done already, right? It is coming in place of some old plant, what you said. Yeah. Even then, the cost seems to be on a higher side. Just wanted to understand, the module is still HRC or still CRC galvanized? What is the overall, you know, the setup you are looking at? Is it still HRC, CRC, galvanized, till what level, basically, the entire 4.5 million ton we are looking at? So initially, it is at the HRC level. Once it will get stabilized, then we go for the CRC also. So as of the project, as this project is concerned, CRC is under consideration, but that will come at a later stage. That cost is over and above what we have announced now, right? No, no, it's including CRC. Okay. The entire project cost includes the CRC level, till the CRC level. Hello? Hello, I'm there, sir. Yeah, I told you that the cost what we have declared is including CRC. Initially, HRC will come. Once that is supplied, then the CRC will come. But the cost what we have declared is including the CRC. Understood, sir. That's all from my side, and thank you. Thank you. Our next question is from the line of Mohit Bhansali from Aryan Group. Please go ahead. Yeah. Sir, can you hear me? Yes. Yeah. So my first question is that, just we have heard in the month of July 2023, you have awarded one big coal mining project to one MDO, that is, Power Mech. And it is heard that they are going to mine the coal from your Tasra mine, and they will be, you know, getting around INR 1,200 crore per annum. So just want to know what benefits they can have by that mining, and how much it is going to be extracted and what is the timeline? Yeah. Approximately, you can say 1.5 million of the coal will be extracted from the Tasra mine, and that will help us in placing the imported coal. That will ultimately bring down my cost as the overall blend cost is concerned. So has the mining started, sir? Not yet. Not yet. What is the timeline, sir? Most probably, it will start coming... The production will start, start from next year onwards. Second quarter next year. ... So all the approvals like environmental and everything is in place, sir? Yes, yes, yes, yes. All the approvals are there, no issue on that. Okay. So you'll be getting 1.5 million tons of coal? Yeah. Once it will get fully operationalized, then we will get 1.5 million, and that will replace our imported coal. Okay. Indigenous portion will increase in the blend. Okay. Okay, okay. And sir, second question is that, I heard that you are going for the big expansion, and by 2020 you have a big plan of, you know, expanding your, capacity by around 15 million ton-16 million ton. So just want to know, before going for this expansion, have all the raw material securities like coking coal or iron ore and everything is being placed, or after expansion you are going to look for? Because, you know, coking coal and iron ore are the major, you know, costs in your production of steel. And if, coking coal prices goes up, like, you know, $400-$500, as we have seen earlier, it affects the company a lot. Just wanted to know and the curiosity that before doing the big expansion, we are spending, you know, almost INR 100,000 crore, do you have the, you know, plan first to have the raw material security, then go ahead, or after completing the expansion, you are going to scout for the raw material security? This expansion was planned after taking into consideration the raw material securities, for which already the projects are there to increase the capacities of our mines from where the major raw material is coming. So there is no issue as far as the raw material is concerned. Coking coal, sir? Coking coal. Coking coal, we will be importing, no issue on that, but Tasra. Second, Tasra mine will get fully operationalized. Third, in this expansion, we are planning for this stamp charge battery, where the more of the indigenous coal will be, we can use, as compared to the present, where we are using more of the imported coal. So all these have been taken into consideration, factored in while going for the expansion. Okay, sir. Okay, and my other question is that, sir, are you getting Railways payments on time? Or, right now, how much is the due - how much you are going to get from the Railways, sir, for your- There are two issues. One is the provisional price that the Railways is giving. There are no issues, payments are coming in time. Second, the final price is decided by the Chief Adviser Cost. They have already decided the price for the 2021-2022, which will be finalized soon by the Railways, and we'll get back the money. As for the 2022-2023 is concerned, we have submitted all the information to CA Cost, and we are waiting for their final confirmation of the fair price. Sir, right now, how much is the due? Can you quantify the provision you are saying that provision we are getting- We cannot quantify. How much is the due? We cannot quantify because it is under the discussion stage. So, till it is under the discussion stage, it's not right to quantify at this answer, at this moment. Okay, okay. Sir, last question is your Rowghat mine. Can you update, sir? What is the update on your Rowghat mine? Since we heard that your Bhilai Rajhara mine is depleting very fast, and you need Rowghat mine to, you know, supply the iron ore for your Bhilai already expanded plant. So what is the status of your Rowghat mine? In Rowghat, in one of the blocks, I think it's under a rail. We have started the interim mining. The interim mining in that block has started. That is the update, as per the Rowghat is concerned. Okay. Okay, sir. Thank you, sir. Thank you. Thank you. Our next question is from the line of Siddharth Gadekar from Equirus. Please go ahead. Hi, sir. So just one first on your iron ore mine. So what is the total capacity that we have, and what, how much are we mining this year? In terms of royalty, what are our royalty plus premiums that we are paying to the Government in terms of percentage? And in terms of validity, when are our mines valid? Hello? Total production as the iron ore is concerned, it is roughly 36 million, you can say. And the royalty, what you have talked about, that extra royalty, that is being paid in Jharkhand and not in Odisha. When does our Odisha mine come up for renewal? That I have to check. When actually... Because they are different, mines, and every mines have a different, renewal, that I have to check. Okay, thank you. Hello, Ashish? Hello. Hi. Yeah. Sir, I think that will be the last question. I'll request for you for a closing remark, please. Yeah. Thank you, Ashish-j i. My closing remark, while we are quite perturbed with the global economy scenario and the forecast, the Indian economy has stood out as a silver lining with a strong demand and the consumption pattern. The forecast for the Indian economy by various agencies have been quite encouraging, and the economy is expected to grow in the range of 6.5%-7% over the next two years, which is enough to categorize it as the fastest growing amongst the major economies. The steel demand forecast by the World Steel Association for India are also quite promising, at the rate of 7.7% in current year 2024. The Government focuses on the infrastructure spending is a big boost to the economy in general and the steel industry in particular. The residential sector is also expected to grow, backed by affordable housing projects and urban demand. Private investment is improving on the back of the production-linked incentive scheme. Indian capital goods sector is also expected to benefit from the momentum in the infrastructure and the investment in the renewable energy. Automotive and the consumer durable are expected to maintain healthy growth, driven by the sustained growth in the private consumption. The company remains committed towards the sustainable performance, including emphasis on the decarbonization, improving the capacity utilization, value addition, and achieving the cost competitiveness. I'm hopeful that the good times await for our investors in the coming quarters. Thank you. Thank you. On behalf of Nuvama Wealth Management, that concludes this conference. Thank you for joining us, and you may now disconnect your line.