Ladies and gentlemen, good day and welcome to Vedanta Limited Q1 FY 2023 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 the conference call, 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. Sandeep Agarwal, Head, Investor Relations, Vedanta Limited. Thank you, and over to you, sir. Thank you, Neeraj, and hello, everyone. I am Sandeep Agarwal. Once again, thanks for joining us today to discuss our financial results for first quarter of fiscal year 2023 that ended on June 30. We have with us today Mr. Sunil Duggal, our group CEO. Mr. Ajay Goel, group CFO. We are also joined by leaders from our key businesses, Mr. Arun Misra, CEO, Zinc Business, Mr. Prachur Sah, Deputy CEO, Oil and Gas Business, and Mr. Rahul Sharma, Deputy CEO, Aluminum. We will start with update on key highlights of our operational and financial performance, and then we will open the floor for questions and answers. Please note today's entire discussion will be covered by the cautionary statement and disclaimer mentioned on page two of the presentation. Now without further ado, I would like to hand over to Mr. Duggal to take us through the presentation. Over to you, Mr. Duggal. Thank you, Sandeep. Good evening, everyone. Welcome to Vedanta Limited first quarter FY 2023 earnings conference call. Currently, global economy is facing volatility amidst high inflation. Potential rate hikes by central banks, slackening consumer confidence and China's zero COVID policy led lockdowns. This has led to recent softening in commodity prices. However, we also see that China has announced stimulus and has started to ease lockdown restrictions. Amidst ongoing energy crisis, especially in Europe, manufacturing costs are higher. This has potential to further suppress supplies and support commodity prices. Crude oil prices is expected to remain supported on supply concern. Indian economy's relative resilience is reflected in strong industrial production, export competitiveness and non-food credit growth. Indian government's increased capital expenditure continues to support demand. Although inflation level is above the RBI's tolerance band, RBI expects inflation to fall below 6% level by March 2023 quarter. During the June 2022 quarter, we have again demonstrated our ability to execute well through all these challenges. We have started FY 2023 with best ever first quarter EBITDA as key businesses continue to deliver strong operational and financial performance, underpinned by world-class asset quality and strong business models. We recorded first quarter EBITDA at INR 10,741 crore, which translates into 7% YOY growth. We have started dynamic commodity hedging for proactive risk management amidst unprecedented price volatility. In July 2022, we commenced operation at nickel cobalt Goa plant and Liberia iron ore mine. Our capital allocation and dividend policies are well articulated and designed to create sustainable long-term value. We have invested more than $14 billion across businesses over the last 10 years without raising further capital from equity markets. We are investing $3 billion over next two years and $2 billion in FY 2023 alone for growth volume, value-added products, backward integration, operational efficiency, and digitization. These projects will make our businesses more sustainable and predictable. We have one of the best dividend yield among peers. We have paid dividend of more than INR 65,000 crores over the last 10 years. In quarter one, we declared first interim dividend of INR 31.5 per share with another interim dividend of INR 19.5 per share in July 2022. This translates into a very attractive dividend yield of 15.4% on YTD basis. We have impeccable track record of meeting all capital market commitments. In line with our commitment to delever by $4 billion in the next three years, VRL has deleveraged by $1 billion in quarter one and is on path to further delever by $0.5 billion by this month end. We believe in Atmanirbhar Bharat. Vedanta Group is one of the highest contributor to the national exchequer. We are committed to contribute towards uplifting people's life. The transition to a lower carbon world also offers a unique opportunity to grow and remain an attractive investment case for decades to come. Our ESG program has now moved from planning phase to execution phase. You will hear more on progress during the year. In June 2022 quarter, we achieved our net zero commitment. We have completed climate risk assessment, both physical and transitional risk. We also completed inventory of our supply chain emissions. That is Scope 3 emissions, two year earlier than our committed target. India's first battery electric vehicle in underground mine introduced at Zawar mine. We are continuing industry-leading people practices on diversity and inclusion with 29% women in decision-making bodies. Vedanta is also among the few Indian companies that have actively recruited members from transgender community as part of our workforce. We are working to ensure a zero-harm workplace through learning from mishaps in FY 2022 and before. In June 2022 quarter, despite our best effort, we are saddened with the loss of life of one business partner employee at Hindustan Zinc. We are taking various initiatives to drive safe work culture, including focus on critical risk management to reduce hazardous activities at site. We have launched across businesses audit to ensure best safety practices across the group. Now, if I turn to our business verticals. At our aluminum business, in line with Jharsuguda ramp-up, aluminum quarterly production grew by 3% YOY. Alumina production was also up. Quarterly COP was $2,653 per ton, impacted by input commodity headwinds, particularly power costs. Zinc India achieved highest ever quarterly refined metal production of 260 KT with 10% YOY growth. Silver production grew by 10% YOY. EBITDA margin supported by higher volumes, better recovery, commodity prices, and hedging. At Zinc International, Gamsberg recorded highest quarterly production at 53 KT. It achieved a record annualized MIC production of around 225 KT in June 2022. Cost of production also improved despite inflationary cost pressures. In oil and gas business, volume was lower by 4% quarter-over-quarter due to natural decline, which was partially offset by additional volumes from infill wells and polymer injection in Bhagyam and Aishwarya fields. OpEx increased by $0.6 per barrel QOQ to $13 per barrel, primarily on an increase in polymer prices. We are focusing on infill well drilling to maximize near-term volumes and arrest natural decline. We expect to commence production from Jaya and Hazarigaon fields from September 2022. Our shale pilot is also on track for spud in September 2022 quarter. From July 1, 2022, the government of India has started levying the special additional excise duty on crude oil. We are engaging with the government on this within the framework of PSC and RSC, and are quite hopeful on the favorable outcome. In iron ore, our Karnataka business saleable ore production was lower as heavy rainfall impacted ore handling. Pig iron business production was lower on YOY basis in line with planned shutdown at one of the blast furnace. However, margin improved by 148% QoQ to $159 per ton. We have completed first step towards steel capacity expansion to 3 million ton per annum during the current quarter by debottlenecking one of our blast furnace. This shutdown impacted quarterly hot metal production and consequently a 7% YoY decrease in saleable production. EBITDA margin was majorly impacted from export duty imposition, driven by steel prices decline, and high coking coal prices. Facor achieved highest ever ore production since acquisition with 14% YoY growth. Quarterly ferrochrome production grew by 3% to 18 KT. Vedanta is uniquely positioned to deliver sustainable value. In FY 2023, our key priority will be to deliver volume on committed lines, timely execution of projects, and integration of our aluminum business. We'll focus on production cost reduction and dynamic hedging to proactively manage commodity price volatility risk. We remain committed to improve margins, increase free cash flow generation, and deleverage. We have an outstanding foundation of world-class long life and low cost assets producing vital commodities for global decarbonization transition. Our strategy, high quality assets, strong balance sheet and capability position us well for future growth. With this now I would like to hand over to my colleague, CFO Ajay Goel for financial performance. Thank you, and good evening, everyone. As Sunil said, we have an outstanding foundation of high quality assets along with a strong balance sheet, which positions us well for future growth. I'm pleased to share that despite inflationary macro environment and fiscal and monetary headwinds, we commenced the year with our best ever first quarter financial performance. Before I walk you through the numbers, I wish to talk about few key accomplishments for first quarter. We achieved highest ever first quarter EBITDA of INR 10,741 crore. Increasing shareholder returns paid total dividend of INR 11,684 crore, which is 31.55 per share in Q1, and second interim dividend of INR 7,249 crore, which is 19.5 per share in July. This translates to an attractive dividend yield of 15.4%. Proactive risk management through strategic hedging in major commodities to protect margins. The realized hedging gain in Q1 was INR 764 crore. We are continuously working towards dynamic liabilities management and has increased our maturities profile to around four years and lowered the average borrowing cost to 7.6%. We are progressing well on the path of committed deleveraging. You may have noted the release by our holding company, Vedanta Resources Limited, of $1.5 billion debt reduction in YTD July 2023. That is in the first four months. This is in line with our commitment of $4 billion deleveraging over next three years. Operationally, Hindustan Zinc and FACOR delivered highest quarterly production, while zinc and aluminum volumes continues to be strong. We also successfully acquired Athena Power Plant, having two units of 600 MW each, which gives long-term energy security and cost certainty. Now, coming to few of the key financial highlights of the quarter. Our quarterly group revenue stands at INR 38,251 crore, which is up 36% year-on-year, YOY. Highest ever first quarter EBITDA of INR 10,741 crore, up 7% YOY, with a strong EBITDA margin of 32%, driven by operational performance despite inflationary cost pressures and moderating commodities prices. PAT, profit after tax stands at INR 5,592 crore, higher by 6% YOY, and that demonstrates a strong financial performance. ROCE, return on capital employed at about 30%. It is higher by almost 800 basis points from last year's 22%. We also continue to maintain healthy cash and cash equivalents of INR 34,342 crore, which is up 7% quarter-on-quarter. Finally, our net debt at INR 26,799 crores with net debt to EBITDA, the leverage ratio at 0.6x, same as last year. 0.6x put in perspective is among the lowest in Indian peers. We also have a detailed income statement in the presentation, and I want to just share a couple of more updates. Depreciation charge for Q1 was at INR 2,464 crores, 16% up YOY due to higher overall depletion charges at oil and gas and higher ore volumes at Zinc India. The finance cost for Q1 at INR 1,206 crores, up 2% due to increase in average borrowings, which has been offset by reduced average rate of borrowings. Income from investment in Q1 at INR 583 crores, up 12% quarter-on-quarter, in line with change in the mix of investment and down 20%, majorly on account of mark-to-market. You may have noted that the two recent repo rate hikes that lead to mark-to-market accounting, but yield to maturity will not change. It is temporary. I want to underscore that. The average investment income stood at 4.7% pre-tax for the quarter. The normalized ETR, the tax rate for Q1 at 23%, which is lower on account of one-time impact of MAT, the Minimum Alternate Tax asset recognition of INR 505 crores on full yearly basis, which is the right way to look at. On full yearly basis, we foresee that ETR will be within the guidance range of 26%-28%, which is more or less same as last year as well. I'll now move to EBITDA bridge. EBITDA is up 7% YOY and INR 709 crores. As evident from the bridge, strong demand for all our commodities and improved prices have positively impacted our EBITDA, supported by strong operational performance of key businesses. We also benefited by strategic hedging and higher CapEx and OpEx recoveries in our oil and gas portfolio. However, this has been partly offset by higher cost of production due to input commodities inflation. Moving on, next page on net debt. Net debt, as you can see, as of June 30, stands at INR 26,799 crores, impacted by working capital investment, which is cyclical in nature, and CapEx requirements in the short term. Despite softening of the prices, we believe that this year as well, Vedanta will continue its growth journey and free cash flow generation will be sufficient to meet the CapEx requirements and still deleverage as we have committed as a group. A quick word on balance sheet. Our long-term focus remains in proactive debt management. During Q1, we have increased the average maturities to four years from 3.4 years in the last quarter, while we have been able to further lower the average cost of borrowings to 7.6% from 7.9% in fourth quarter. Quarter-on-quarter, 30 basis points lower cost of funding. Our credit rating is maintained at AA with a stable outlook both by India Ratings and Research and CRISIL. Now finally, each of our businesses are on growth journey. We want to grow across the value chain, focusing on vertical integration and cost efficiencies while targeting higher capacity. Our growth CapEx plan of around $3 billion over two years is aimed in the same direction and is in line with our capital allocation policy without compromising on the key priority of deleveraging at group level. Overall, with our resilient portfolio, we are well-positioned to increasingly able to deliver strong performance across cycles and create value for all the stakeholders. Thank you. I go back to operators for any Q&A session. Thank you very much. We now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Amit from Edelweiss. Please go ahead. Amit, we are unable to hear you. May I request you to unmute your line from your side and go through the question, please. Just a sec. It's unmuted. Can you? Amit, sorry, your voice is breaking. Hello. Can you hear me now? Yes, now we can hear you. Good evening, everyone. Thanks for the opportunity and congratulations for a good set of numbers. I have a couple of questions. The first one is on the hedging position in oil and gas and aluminum division. How much of the profit was used in volume terms in Q1 and what is it outstanding right now? And did we do any further hedging in Q1? That is the first question. Yeah, sure, Amit. Let me take it up first. If I speak of aluminum, you know, our large portfolio, the hedging in the Q1 covers 20% of the volumes, and the rate of hedging is about $3,500 per ton. Net-net, one-fifth volume in aluminum is hedged for the Q1. If I also speak of zinc, which again is quite critical, so almost one-third, 34% volumes for the first quarter are hedged. Oil and gas, our working interest almost 16%. Effectively, if I leave aside the share of the government, again, almost one-third of volumes are hedged. Net-net, 20% in aluminum and almost one-third across zinc and oil and gas. As I mentioned, Amit, the realized gain in terms of our positions which got matured, the gain is about INR 764 crore. Let me also take it forward. The hedging of the forward quantities, which basically are for second quarter, as in the current quarter, and little bit for third quarter. Right now, the unrealized gain is about 3x of what we already realized. That will unwind only in second quarter and in October and November, depending on the prices. Great. Okay, great. Thanks for the comprehensive answer. The second question is essentially on the coal cost. What was the movement in Q2, and how much you will guide for this quarter? And is it possible to separately give TSPL EBITDA? The coal cost you are asking for aluminum or which business you are asking? The coal cost for aluminum. Sorry, I should have specified. Yeah. The average coal cost for aluminum business was INR 1.91 per GCV. The overall power cost was $1,238 per ton. This is softening now. The linkage coal realization which came through tranche five is looking very healthy now in this month. With this, I think a sizable portion of the usage will go back to the linkage. Apart from that, the auction coal price is also softening because of the international energy prices also getting softened and some of the imported coal flowing on in some parts of the country depending on the landed price leverage they have. This is about the coal cost. Anything, Rahul, you want to add on the coal cost for the current quarter and the quarter 1? No, I think you have already touched on what, you know, total coal requirement was 4.2 million, and the cost was INR 1.9 per GCV. As Mr. Duggal said, I think things will start improving because we have in terms of security 100%. Always the challenge remains the materialization. I see that in Q2 things are coming better because last quarter we had almost 32% as a linkage materialization. This quarter we are looking close to 36+% kind of things. We see the great improvement going forward. There's one point I want to. Mr. Duggal, if you allow, another point which I've forgotten to mention. I think last quarter we also mentioned we have got Jamkhani as a coal mine, wherein we have got all the clearances, including opening of the mine clearance. We'll be starting the Jamkhani mine in the early next month. You know, we see that it will also be some relief for us or another great result for us. Okay. Just to recap, the 22% linkage materialization in Q1, right? Or 32%? 22 was Q1, and 36 is, we are looking for this quarter as overall budget of FY, you know, total consumption. Okay. Is it possible to quantify the benefit that we might get in Q2? I mean, total as a result of all these measures. We cannot give any guidance as such on this. At least, we broadly what it looks like that it should fall to the level of quarter before at least. Okay, wonderful. That's helpful. Thank you and all the best. Thank you. Thank you. Thank you. Next question is from the line of Pinakin Parekh from J.P. Morgan. Please go ahead. Thank you, sir. My first question is on aluminum. Given that the cost of production was over $2,600 in the first quarter, and LME is roughly at around $2,400. At what point of time do you think that the company would look to cut production? There is no plan to cut the production. In fact, the last parts, we are powering up. The average LME for the month is lying somewhere between $2450, $2525, $2500, and with the premium. As we have said that, the cost is out in the current quarter, not only because of the power cost, but also because of the processing cost and the alumina cost. Alumina cost because of the related LME going down could soften, say about by around $150-$200. Another $300-$400 could soften in power cost and balance in processing cost. Even at the current LME prices, we will make a good EBITDA margin, and it makes a good business for us. That is why even the remaining part from the line six we are ramping up. Just to clarify, sir, what you are saying is that even at current LME aluminum prices, Vedanta's aluminum. Is that correct? Absolutely. What I'm saying that it will make a good EBITDA margin even at the current prices. Sure. Thank you, sir. My second question is on the oil business. Now, this is a segment which has consistently disappointed in terms of production and indirect effects. The government of India's latest tax essentially create another burden for this business. Even the earlier 16.67% cess was never removed when the oil prices went lower. Given the policy headwind and given the increasing OpEx, is the company looking to stop investment in oil? Because clearly this is not a business which has, you know, can generate good strong returns given what the policy headwind in terms of taxes are and given the increasing OpEx. Given the original CapEx plan, which was announced for FY 2023, if the oil cess stays as it is, would the company look to cut the oil CapEx? No. See, the energy security for the country is one of the important thing for us, and we want to partner with the government. In that direction, we have no intention to, you know, think even an iota on the line of what you are talking. All our projects are moving ahead with the same energy what we were possessing earlier. Infill projects, drilling in our gas assets, exploration in our RDF asset, OALP, everywhere. ASP project, shale oil project, pilot project on the shale oil ASP project. Everywhere the efforts are on and we want to triple or quadruple our results from the current level. Ultimately we want to partner with the energy security of our country. As far as the additional special excise duty is concerned, in the background, whenever we have talked to the government has always been supportive of looking at how they can partner with us on the new projects and where it can help the country and help us to make the projects viable. As far as specific to the special excise duty is concerned, we believe that the windfall tax for the government is already built in the PSC, and we have represented this to the government at the various levels. Government is quite favorably placed on this, and we are quite hopeful that it could get retracted. Just to clarify, because we keep on getting this question. The $30 test would translate into what kind of realization impact for Vedanta? Or just to make it more simpler, if the tax was there in quarter one, when the Brent was $114, and Vedanta's average realization was $110, what would have been the new realization or the new EBITDA if this $30 test? Is it a straight $30 negative impact? Are there trade-offs available? You see, you have to understand what they are talking. They are talking that depending on the average, crude prices of the last fortnight, they will keep revising that number. This number will remain very dynamic. All our projects are conceived and evaluated at a much lesser prices. Like, we evaluate all our projects at $60. $60 we make a healthy IRR. In any case, the government thinks of putting up this special excise duty at $80. It does not impact our operation much, and impact our margins beyond that. The question is, the broader question which I am saying and we, which broadly we have been able to sell to the government is that this windfall, even beyond $80 is built into the contract. If it is built into the contract, let us suppose from $80 to $120, the $40 directly does not flow back to the government. In any case, the 70% of this goes back to the government. That is why, the government is quite favorably placed to look at this and look at how they can differentiate between the nomination blocks and the auction blocks. Just to clarify, so far there is no official directive from the government on the nomination blocks and the auction blocks. While you have represented to the government, there is no official confirmation. If the government does not agree, should we expect a legal challenge to this, sir? Because $30 is a very meaningful number given the context of the oil segment EBITDA. See, I don't want to jump the gun. We are very hopeful. Let us wait, and let us not think something which is not in the best interest of any of the stakeholder. Understood. Thank you very much. Thank you. Thank you. The next question is from the line of Ashish Kejriwal. Please Go ahead. My question is again on aluminium cost; cost on both alumina as well as coal. One thing is, currently how much difference is there between our costs of production of alumina and the purchase of alumina? And second is in terms of coal cost, have we purchased any electricity in quarter one or the entire increase in power cost is due to the expensive coal which we have got? It's a combination of bit of the purchasing power and the coal costs. While I will request Rahul to give the answer on this. As far as alumina and our, even our imported alumina is concerned, there is a difference 100-150, say around $100-$150 per ton, depending on the prices, LME and the prices. Rahul, any more details or the more color you want to add to this? No, I think when we go to generally it remains in the range of $100. In Q1 for sure the delta was maybe around 60-$65. That was the delta between Lanjigarh versus imported alumina point of view. Sir, your alumina cost of production is something like $371 in first quarter. When we spoke about, I don't know, $150 decrease in alumina price. Even after the decrease you are seeing that it's a difference of between $60 to $70? Sorry, come again. Yeah, that's what I'm saying. There's an arbitrage between, you know, imported versus your domestic. Okay. $60-$70 is still there. Yeah, yeah. Okay. Second question is, aluminum hedging only. You mentioned about 20% of first quarter volume was hedged. If I remember correctly, in fourth quarter, we said that for the full year, around 15%-16% of the volume was hedged. The entire difference in volumes now, will it be front-ended or it will be across the quarters? And if that is the case, what will be the second quarter, volume which is hedged at around $3,500? Right. Say, I mean, you cannot calibrate the volume in line with the hedging, right? I mean, in terms of front-ending the volume in second quarter and third quarter won't work. If I give you a bit of context, as you know, Vedanta historically, our policy has been that we want to realize the average LME of the month of production. Given the current environment is quite tumultuous, very volatile, this course correction was warranted. Also in the hindsight, we feel it was a good step. If I speak of the second quarter for aluminum, against our planned volume for second quarter, almost 28% volumes are hedged, and the hedging price is about $3,630 per ton. Net net, more than one-fourth volumes for second quarter are hedged. Same way, if I speak of zinc, almost 40% volumes, planned volumes for the second quarter are also hedged, and same number, almost 30% for oil and gas. Net-net, I think we are decently covered in terms of second quarter hedging point. That's great. Sir, lastly, we are going to operate our Jamkhani mine next month. Is it possible to share some cost benefit which we can avail not next month, maybe six months down the line from this mine? Well, I'll give you some idea that we have three mines. The projected cost from these three mines is ranging somewhere between INR 0.45-INR 0.85. Jamkhani, the cost will be somewhere between INR 0.80-INR 0.85. Radhikapur is somewhere between INR 0.50-INR 0.55. Kuraloi could be around INR 0.45-INR 0.50. This is the range. The weighted average you can work out could be around INR 0.60-INR 0.65. Okay. Versus INR 1.90, which we incurred in first quarter. Right. Thank you, sir. Thank you. All the best. Thank you. Next question is from the line of Vishal Chandak from Motilal Oswal. Please go ahead. Vishal, may I request you to unmute your line from your side and go ahead with the question, please. Yeah. Am I audible now? Yes, sir, you are. Yeah. My question was with regard to the oil and gas business again. From time and again, we have been trying to, you know, improve the production run rates, and we have been talking about improving production run rates, but it has been a disappointment even today also. What kind of IRR do we target for oil and gas business and you know, how does that compare to our IRR targets for zinc business? To understand, you know, how do we evaluate project or do a capital allocation across various businesses. Prachur Sah, if you can take the question about oil and gas, and then I will try to add on the zinc. Sure. Prachur. Yeah, yeah. Can you hear me, sir? We can. Please go ahead. On the projects for oil and gas, oil price at a $50 oil price, we are targeting an IRR of 20%, and that's been the case so far. All the projects that we have targeted at $50 oil price, we are looking at a 20% IRR as a threshold to take up the projects. If I may supplement, again, Vishal, I would again go back to our group policy on allocation of capital. Eighth of February, we committed that any CapEx project for the group, our minimum IRR will be at least 18%. In case of oil and gas, our internal numbers, you heard from Prachur, we assume $50 per barrel as a pricing. Even with that kind of pricing, our IRR in oil and gas business is higher than the group average. Sir, we are saying that, you know, the oil and gas business probably generates an IRR higher than what our zinc business generates because zinc still gives you the highest proportional share of the EBITDA. If the IRR over there is lower, that means the overall IRR should be somewhere far steeper down. Would that be a correct share if I speak? No, you cannot calculate like that because the structure of oil and gas is much different than the zinc. Zinc, any price goes up, the entire contribution of the increased LME goes to the bottom line. In oil and gas business, the structure is such that it attracts duties, surcharges, and then profit petroleum, and not more than 30% flows back to the business. I think that was the important question that I was trying to drive down. I mean, the IRR in other businesses are fairly higher compared to this oil and gas business where investment is continuously required. Sales are declining. There is a windfall gains tax from the government. Why do we still want to continue with this kind of an investment? Why not, you know, propel the investment further in other spaces like aluminum and zinc, where the possibility of returns, especially with our own coal mines, you know, opening up. There's a higher probability of a better return over this. That is an internal call that we keep our portfolio very diversified, number one, and we don't want to put all our eggs into one basket. The other is that we want to partner with a country where the energy security for the country is very important, and we want to play a very important role in that. We are the only private player in the country who actually contribute 25% of India's domestic production. We remain excited about it, that we want to evaluate the new resources, OALP, discover small fields, methane, coal bed methane. We will keep participating there. The government of India is also quite favorably placed to partner with us in that, to look at across the table with a more mindset of the open book to see that how the new projects are viable, and that is why you see even for putting up the ASP project, they have come up with the policy of reducing the charge to half to make the project viable. Apart from that, for other projects, and even on this project, they remain open as to what needs to be done to make these projects viable because the country suffers the most because of the oil and gas import. I just want to also add, two more points here. Say, allocation of capital and more so CapEx and the resulting IRR is also a function of opportunities. It is not necessarily either or, say, between one portfolio to another. If you look at our current year's guidance on CapEx, almost $2 billion. In fact, we are investing half of that, almost $1 billion in aluminum. Example that means Balco, almost $380 million in terms of rolled production, expansion 240-250 KTPA, and also for smelter capacity to 420 KTPA. Same way, for example, Lanjigarh is a good example. Net-net, one should look at CapEx production in terms of forward-looking outlook. Finally, it is the nature of the business as well. I mean, as you would appreciate, maybe the one discovery in oil and gas perhaps will pay back INR 450 in the past. Net-net, it is all the businesses. In our businesses, we got to invest in a market where there might be a bit of downturn. In that case, the portfolio becomes resilient, and we can deliver across the cycles. That's helpful, sir. Thank you very much. Thank you. Thank you. Next question is from the line of Rahul Jain from Systematix. Please go ahead. Yeah, hi. Thanks for taking my question. One, firstly on, we keep hearing in the press a lot about your semiconductor business. What plans do we actually have, and is there any capital commitment that we are doing in the next six months to one year? That's my first question. As far as the semiconductor business is concerned, the Government of India has made a policy that how they can support the sector where this is also a very strategic sector for the country where the government is quite inclined to make this work in the country, and that is why they have declared a new policy. Even the state government, each of the state government is quite excited about it. Currently, we are in engagement with the various state governments, and they are ready to make all sops available to us to make the project exciting and viable. We are evaluating the final location, and you will hear from us as we will progress. Yeah, thanks for that. Sir, also on Hindustan Zinc, the government will likely exit. Are we going to participate in the government's exit and increase our stake, or what is our stance on this? Government is doing its process. They are appointing the banker now. In any case, we cannot acquire more than 5% in any given year or 25% of this stake sale at any point of time. Depending on whether the government would request us to participate in acquisition beyond the legal limit, we will evaluate. If they will offer, we will definitely consider. Any color on BALCO, if you have, you know, similar lines? No, we have no way forward for BALCO as of now. Neither the government has made any plan as far as our information goes. Okay. Thanks so much. Thank you. Thank you. Ritesh Shah from Investec Capital. Please go ahead. Hi. Hi, sir. Thank you for the opportunity. My first question pertaining to the debt maturity profile of the parent. Would you be able to provide some more color on that? To my understanding it was around $3.7 billion for the fiscal, which included around $300 million for ICL and interest costs of around $700 million. If you could help on a quarterly roadmap over here, that would be quite useful. The reason I ask this is I'm also trying to understand the payout for the full fiscal. Thank you so much. Yeah, sure. I'll be kind of brief on this one, you know, this being the Vedanta Limited call. You're right, in terms of, for the current fiscal for Vedanta Resources, total maturities is $3.7 billion, including $1 billion, which is a combination of interest cost and ICL. That leaves almost $2.7 billion for the full fiscal in terms of external debt. Out of which, out of $2.7 billion, roughly two billion are falling due in H1. We are in, as we all know, is looked at the numbers on half yearly basis. So out of $2.8 billion, $2 billion in H1 and the balance of $0.8 billion in the second half. You may have seen, given the recent two interim dividends by Vedanta Limited, the receipt at Vedanta Resources is about $1.5 billion. A billion out of the first dividend and roughly half a billion from the second interim dividend. $1.5 billion is dividend. Roughly $200 million is brand fee. It makes it to $1.7 billion. Finally, also we got recently couple of Indian PSU bankers lending to Vedanta Resources, including SBI. With all of that, roughly $2.1-$2.2 billion is already secured. With that, until November, early December, we are fully taken care of at Vedanta Resources. The remainder amount, $0.6, $0.7, we feel quite comfortable in terms of meeting those maturities. Either we refinance them or we repay them. This is super useful. Extremely useful. Thank you for this. Just a related question. Wanted to understand the extent of pledges and encumbrances which are there at a Vedanta India level, if it's possible. As for Vedanta Limited, you might have seen one of our recent statutory filings that none of Vedanta Limited shares are pledged. Of course, while borrowing, there is one non-disposal undertaking, which means the promoters cannot go under minority. Now, as per SEBI requirements, that 51.1% is not pledged, but it is also reported legally as encumbered. Net-net, there is no pledge for Vedanta shares. If I come to the second part of it, in terms of loans by Vedanta Limited and having pledged Hindustan Zinc shares. 5.77% of zinc stake is pledged for one loan. That number, you will remember, was roughly 14.9% with SBI. 14.9 has come down to 5.77. This is super useful. Thank you so much. One question for Mr. Sunil Duggal. Sir, we had in our earlier calls indicated that we had submitted EOI for Videocon and BPCL. Any specific updates over here that would be useful, sir? Thank you so much. BPCL, the government has redoing the process. When the process will come, we will think at that point of time. As far as Videocon is concerned, this is, you know, the legal process is going on. Sure, sir. Other helpful. Thank you so much. Appreciate the talk. Thank you. Thank you. Thank you. Next question is from the line of Prashant Kumar from Dolat Capital. Please go ahead. Sir, good evening and thanks for the opportunity. Sir, just wanted to understand the latest on the royalties that we pay to our parent. Where is that? Where are we at? FY 2022, what was the amount and what is it expected for FY 2023, sir? Prashant. I mean, the agreement, as you know, remains same. In terms of the coverage, in terms of entities and the rate of royalty remains same as the last couple of years. That has not got changed. The broad number for last fiscal, FY 2022, the royalty was almost INR 200 million. In the current year, as you know, it is largely linked to the revenue. We think this number be almost INR 250 or 275 million in the current year. Sure, sir. Sir, just our two cents on this. Sir, generally in industries and sectors where there is a IP and patented knowledge or brand that is being given to the Indian entity, for example, auto, pharma, FMCG, et cetera, royalties is a very well-established practice. Sir, in our industry, and you know, the mining metals kind of setup, this is not a very widely prevalent. That is one aspect. Second, sir, if let us assume you'd add back, instead of giving it as royalty, you add this back to the dividend pool. Anyway, 70% goes to the parent. The rest 30% comes to minority. What that immediately does is, let's say it's 200 million, you add that back to the dividend pool, immediately it raises your valuation by $2 billion. Out of that $70 billion anyways is owned by the parent. They get a $1.4 billion net benefit in market value, and now what they lose is $60 million. That's it. On the cash that would have otherwise gone directly to them. It wouldn't it be. That is one. Two, there'd also be a very good rerating in the overall multiple and the yields that the company would be getting because some investors may see this as an overhang, sir. This is our feedback. Just, well, your thoughts are also please kindly welcome and please share your insight on this, sir. Well, thank you. Thanks for the input and your viewpoint. It could be, you know, the personal viewpoint what you are expressing. This has gone through the required legal process and the board approval, and all the approvals have gone through. After all the stakeholders and the board members are convinced that there is a substantial value addition which is done by the parent, and that is the royalty paid. So that is what my broader viewpoint. Okay, sir. Understood, sir. Thanks, sir. Sir, my second question is, sir, generally Vedanta has never hedged their volumes forward. This is one exception that we did it, I think in March or April, and it has turned out, in hindsight, to be a fantastic move, saving about INR 2,000 crores for the company. Just to the CFO, sir, what was your thought process when you decided that, back then based on the market, based on the pricing, et cetera, et cetera. If you could kindly share your thought process as to what made you to take this call, you and your team together. No, this was done based on the evaluation which was done internally and based on the expert advice. We have also set up the hedging desk, the internal headed by a global hedging expert who has come on board. Depending on that, and benchmarking, and the valuation, we took a call at that point of time. It was a very strategic call which was taken. Sir, I think you will appreciate that risk management has to be a dynamic process. It must take into account the current environment, which as I mentioned earlier, is quite tumultuous, very volatile. Typically, Vedanta, you are right, has never hedged. We are fine to capture the average LME for the month of production. Given the significant yo-yoing in terms of the pricing going up and down, that too within a very short time frame, Vedanta decided to make this course correction. You're right again that in the hindsight, it was a good step. Let me also add that hedging is not a tool to make money. You know, Vedanta's expertise lies in metals and the mining. Hedging is to protect the margins. Again, I don't think is the right way to look at the hedging in success. Imagine if we had hedging losses, which means on the remainder 80% uncovered portfolio, the pricing would have been far higher than where it was. Right? You're right. We are glad that we covered our one-fifth volumes, and to that extent, we could protect the margins. Sure, sir. One small follow-up from previous participant, sir. Sir, sir. Sir, on the $30 new cess on crude, how much of it will be on EBITDA, sir, after taking away all the government contributions, et cetera? Will it be 15, 18 or less or more, sir? At EBITDA level, what is that per barrel? You have that calculation, Prachur Sah? I mean, I can explain that a little bit. At EBITDA level, you know, because at $30 a barrel in our PSC share, the $30 barrel doesn't hit us directly on our EBITDA because government actually pays out of the $30, $30 almost $70 as part of the profit petroleum. The net effect on EBITDA post cost and everything could be around $5-$6 a barrel at that price. You have to realize this is a price thing. At $120 it was $40 and it reduced 30. At that price it's about $5 a barrel. Okay, sir. Understood, sir. Great, sir. Thanks, sir, and wish you all the best. Thank you. Thank you. Ladies and gentlemen, we'll take the last question from the line of Sumangal Nevatia from Kotak Securities. Please go ahead. Yeah, thank you for the chance. My first question is on the power division. The margin this time is almost at record low, INR 0.20 per unit of power. Is it possible to share the breakup between TSPL and other gas power business? If you can just explain how should we look at earnings here, because at least my understanding for the TSPL business was that it is a take or pay kind of an agreement, and our availability has been good, 77%-80%. We were kind of modeling around INR 1,000 crore of EBITDA run rate on an annual basis. Time and again, this has basically undershoot our expectations. Just some explanation on that is requested. While we will give you the exact calculation, let me tell you that, you know, this construct of this contract is that the coal is passed through, and we are paid based on the certain availability. The availability is on an annual basis. The quarter-to-quarter availability could vary depending on whether the annual shutdown is due in that quarter or not. The first quarter, one of the units needs the annual major shutdown that we have taken. Over the year, our belief is that our availability will be more than the contractual availability. There are more breakups if you're interested in our IR presentation. It's page number 36, which covers the entire power P&L across Jharsuguda, BALCO, TSPL, and also Zinc wind power. If you want more information, please do write to Mr. Sandeep Agrawal, our head of IR. Refer this person. Thank you. Okay. All right. Just one follow-up on our coal mix. I missed the initial commentary. If you can just, I mean, just repeat what is the mix and how is the mix changing? I mean, our linkage supply is increasing. Are we replacing some more of import or e-auction with linkage in the coming quarter? If you could just share some things. No, the last quarter was a mix of linkage, e-auction coal, import and the local purchase, spot purchase. This quarter we believe it will be a combination of linkage and e-auction. As my friend Rahul said that the linkage could vary somewhere between 35%-40%, and the e-auction could be somewhere between around 60%. Okay. At the peak, what can be our linkage mix, and what sort of inventory, how many days of inventory do we carry? Rahul? Let me first answer the last question. We have, you know, five-six days inventory, which is better than the previous quarter from the inventory side. Another question would be that, you know what we are talking about, Mr. Duggal has already answered. In terms of linkages, you know, we'll be almost 36%. But ideally I have 55% as, you know, my contribution, but it depends on metalization. There is scope for moving from 32% to 36% in this and then ideally reaching 55%. Captive will also play a role. As I said, Jamkhani is getting started now. I hope I have answered both your questions. Yeah. Thank you and all the best. Okay. Thank you very much. Thank you very much. I now hand the conference over to Sandeep Agrawal for closing comments. Thank you, Nirav. Thank you all for taking time out to join us. I hope we were able to answer most of your questions. In case you have further questions, please feel free to reach out to us. This concludes today's call. We look forward to reconnecting you for next quarter ending. Thank you. Thank you very much. On behalf of.