Q2 25/26

Nov 7, 2025

Quarterly report

Summary

Q2 PAT rose 8% QoQ to ₹98.77 crore, with EBITDA margin at 19.3%; higher realizations are expected to lift Q3 and Q4 performance. The Tata Steel asset deal is set to take capacity beyond 500,000 tons, supported by captive ore and internal funding.

Ladies and gentlemen, good day and welcome to the earnings conference call of Indian Metals and Ferro Alloys Limited, arranged by Veritas Reputation. At this moment, all participant lines are in the listen-only mode. Later, we will conduct a question and answer session. At that time, if you wish to ask a question, press star and one on your touchtone keypad. Please note that this conference is being recorded. I now hand the conference over to Mr. Aryan Rana from Veritas Reputation. Thank you and over to you, sir. Thank you, Sarthak. Good afternoon, everyone, and very warm welcome to the Indian Metals and Ferro Alloys Limited's analyst conference call to discuss the company's financial performance for the second quarter ended and half year ended September 30, 2025. On behalf of IMFA, I would like to thank all participants, analysts, investors and stakeholders for joining us this afternoon. Before we begin, please note that some statements made during this call may be forward-looking in nature. These statements are based on current expectations, estimates and projections, and actual results may differ materially. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether due to future developments or otherwise. We have with us today Mr. Subhrakant Panda, Managing Director. Mr. Bijayananda Mohapatra, Whole-Time Director and COO. Mr. Saunak Gupta, Chief Financial Officer. Mr. Binoy Agarwalla, Head Power Business Unit. Mr. Sandeep Narade, Head Mines Business Unit. Last but not least, Captain Suresh Babu, Head Ferro Alloys Business Unit. We will begin with the opening remarks from the Managing Director and CFO, followed by Q&A session. I now invite Mr. Subhrakant Panda, our MD, to share his perspective on the quarter and key developments. Mr. Subhrakant Panda, over to you, sir. Thank you so much. Thank you, Aryan. Ladies and gentlemen, I would like to welcome all of you to IMFA's Q2 FY 2026 earnings call. As you heard, we have the full management team available, and given the important development of a few days ago, I am also part of this call to give you an update into the strategic directions of the company going ahead. Before getting into the financial performance, let me talk about the important milestone in our growth journey, which we announced on November 4 pertaining to the asset transfer agreement we have signed with Tata Steel for the ferrochrome plant at Kalinganagar. This is a strategic move which will reshape IMFA's scale, market position and in fact, it fast-tracks our growth plans significantly and enables us to deliver value on a consistent and sustainable basis. As I mentioned, we have signed the definitive agreement on November 4. This is for 99 MVA furnace capacity, which is four furnaces totaling 66 MVA, which are complete and ready to operate and can produce about 100,000 tons of ferrochrome and a 33 MVA furnace which is under construction and when complete, can produce about 50,000 tons of ferrochrome. This is spread out on over 115 acres of land in Kalinganagar. We have agreed to a base purchase consideration of INR 610 crore. Speaking to the strength of the balance sheet, this is going to be entirely funded from internal accruals. Of course, as we have clarified that all the ore for our existing capacity, for our ongoing greenfield expansion as well as this acquisition is going to be met from our captive chrome ore mines. This is a significant acquisition because combined with our existing capacity of 284,000 tons, 100,000 tons greenfield capacity and acquisition being 150,000 tons, it will take us beyond the half a million ton mark, making us India's largest producer of ferrochrome and the sixth-largest producer globally. Significant operational synergies because the unit we are acquiring is very close to our greenfield project site. Besides, there are logistics efficiencies as well because it is located closer to our chrome ore mines as well as our customer base. If you look at the export market, then to Paradip Port. All in all, I think it is something which is a game changer for IMFA. Subject to certain conditions and requisite approvals, we expect to close it within 3 months. In fact, both sides are aligned to expedite it and we would try to close it within the calendar year if possible. Let me turn a little bit to our operational and financial performance. Of course, Mr. Shaunak Gupta will go deeper into the details, but I will just provide a broad overview. If I go back and take a look at the start of H2 of the previous financial year, FY 2025, that is when the commodities globally and including ferrochrome, were in a lot of turmoil due to various geopolitical developments and tariff-related uncertainty. Ferrochrome prices had come down sharply. In the four quarters since then, which is Q3 and Q4 of FY 2025 and Q1 and now Q2 of FY 2026, we have seen a steady improvement in prices each subsequent quarter, and that happened in Q2 as well. Given that a lot of our tonnage is priced in on a quarterly basis and even where there is monthly pricing, the real improvement came towards the end of Q2. We have not fully benefited from prices. That will change in the ongoing Q3 of FY 2026 because you would be aware of the increase in the benchmark price. You are also aware that spot prices have moved up substantially. All of this is happening on the back of higher chrome ore costs for non-integrated producers. Because of turmoil in South Africa, there have been sharp production cutbacks. Because of all of this, we not only expect the ongoing Q3 FY 2026 to be noticeably better, but we expect this trend to continue into Q4 as well. As you know, we don't really go beyond a couple of quarters in terms of predicting or giving any directionality to prices. But suffice it to say, I think, the demand environment remains strong. India's own stainless steel production and consumption is growing rapidly given the country's economic growth and the focus on infrastructure development. Globally as well, we see positive signs. So I remain sanguine about the future without giving any specific guidance in that regard. But suffice it to say that I remain confident about the future. What also gives me a lot of confidence is IMFA's fully integrated business model spanning mining, smelting, and captive power generation, which continues to provide stability and makes us a cost-competitive producer on a global scale. Of course, you are aware that we are doing a pivot towards renewable energy with 110 megawatts of hybrid renewable energy being signed up to come online next year, which will power our growth plans. So we remain focused on responsible growth, on operational excellence, and most importantly, value creation for all stakeholders. With this, let me invite Mr. Saunak Gupta, our CFO, to take you through the detailed financial performance. Of course, what I look forward to is the Q&A thereafter, which will enable us to provide further clarity where needed. Thank you. Thank you. Good afternoon to everyone. On Q2 performance, we have already shared our Regulation 33 financials, so everybody would have taken note of it. But going by what our MD said, we just wanted to highlight that we are seeing increasing profitability trend in last three quarters. As you may note, our PAT in Q4 was INR 47.07 crore. In Q1, it improved to INR 91.48 crore with the increase in the average realization price to about INR 95,000. This quarter, it has further improved by 8% to INR 98.77 crore, which is with the average realization of INR 101,000. Our EBITDA also is a healthy 19.3%, more or less in the similar range which we are in Q1. In Q3, we are expecting to be better because the price realization benefit, there is always about a couple of months lag to realize it out. We are expecting this in Q3 also. We would further better the performance. So that's on the summarized viewpoint. Since there were some queries related to last year's quarter 2 EBITDA versus this year's quarter 2 EBITDA changes, though we should be also looking into the sequential performances because as you have known, the prices in the international market actually decline in H2 last year, and it is in a recovery mode. In quarter 2 of last year, it was in a very high level or peak of around 96, 97 US cents. So currently, the markets are growing up or increasing the trend. On the EBITDA movement, primarily, you would have seen that last year quarter 2, we were at INR 170 crore, and this quarter 2 is INR 138 crore. Primarily because due to a change in the renewable power obligations, there's a change in law. For that, since you know that we are coal-based, we have a coal-based captive power plant, and for that we have certain conditions to be met on the renewable power usage. Based on that, we have purchased RPO obligation-based certificates amounting to INR 16 crores during the quarter. It is a one-time impact. The differential impact is about INR 14 crores for that. That is to actually align with whatever the change in law. The second one is that you all know that almost 90, 91% of our business is export-oriented, and we have invoice in USD. With the dollar fluctuations, we have a hedging policy to de-risk the future export sales against forex fluctuations. In this quarter, we booked a notional cost of INR 14 crores on a mark-to-market accounting as per Accounting Standard of India. This is higher as a mark-to-market, which is done on the RBI closing rate of the quarter, that is September 30. The Forex rate was 88.79 versus on June 30, it was 85.54. That is why there is a one-time impact which has come here, which is a notional level cost. However, if the rupee appreciates in future, we will get the gain on that. This is purely an accounting impact. The equivalent benefit of this, almost INR 16 crores, is embedded in revenue. That revenue is higher also because our INR 16 crores of foreign gain we have made sitting this quarter. Overall, if you see, it is not having any impact, but when you see the overhead part, there is a jump of about INR 14 crores due to this. These are the two important things. The third one is that usual increase in the logistics cost of about INR 2 crores and other overheads of another INR 2 crores. If you take this into impact, our current EBITDA would go up to INR 170 crores plus, which is similar to last year. If you take out these outliers, Q3, we are expecting to do much better than this. Nonetheless, our Q2 overall EBITDA was at 19.3%, which is healthier, and we expect in quarter three we will be better. That is from my side. Now I open it up for everyone for the questions, anything they specifically have. Thank you very much, sir. 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 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 Parthiv Jhonsa from Anand Rathi. Please go ahead, sir. Hi. Good afternoon, sir. Thank you for the opportunity and congratulations on a strategic acquisition we all were waiting for. My first question is pertaining to the synergies from the acquisition. I think in the opening remark, you mentioned that you will have a lot of synergies right from mine to the location and everything, and all the other synergies. Is it possible to quantify once you acquire the asset, what kind of synergies on a per ton basis are you expecting? Is it possible to quantify? Hello? Sir, could you hear the question? Yes, I could. Sorry. I think I was accidentally on mute. Parthiv, first of all, thank you for your kind words. Let me take a stab at quantifying the synergies. First of all, as you know, our current operations are in Choudwar and Therubali. In Choudwar, we have the advantage of the power plant being located right there as well as being close to the chrome ore mines. Whereas in Therubali, we have to transport the ore a substantial distance. We have a logistical disadvantage to the extent of about maybe INR 4,000 a ton or so as compared to Choudwar. Kalinganagar is more like Choudwar being close to the mines. Therefore, every ton that we produce in Kalinganagar is as competitive as Choudwar. Now, in terms of when we look at the weighted average cost of production and therefore the resultant EBITDA, et cetera, the more we produce towards closer to the mines, the better we are. That will further go up at some point in time when we start supplanting Therubali tonnage by producing that in Kalinganagar. That is where there will be further advantages. I hope I was able to clarify the point, which is that as our production goes up from 260,000 to 400,000 tons in FY 2027 and further to 475,000 tons in FY 2028 and beyond, it is being produced in a more logistically friendly location. Okay. That actually is quite helpful, sir. My second question is pertaining, I believe you said that you are trying your level best to complete this acquisition by the end of this particular calendar year. Is it possible to quantify if this facility comes up, say, for example, in Q4, what kind of additional or incremental volumes can we expect on a quarterly basis? As in, is this a facility operational as on date, and can you ramp it up immediately? Okay. So a couple of questions. I just want to add one more point about synergies, which is that there will be some outbound logistical advantages as well. I mean, in the sense that any tonnage that is dispatched from Therubali to the domestic market has a higher freight element. Whereas Therubali is quite ideally located from a Vizag port point of view for particularly containerized exports. So we will be sort of reassigning our customer base a little bit and a lot of the domestic consumption or supplies will be out of Kalinganagar. So there will be some outbound logistical advantages as well, which could be probably about INR 1,000 to INR 1,500 a ton, is our estimate. Now, as far as the closing date is concerned, we are certainly both sides, as I said, are aligned to close this as quickly as possible. In terms of the unit as on date, two out of the four furnaces are operating, but not at full load. I mean, of course, I think in the process of handing over and getting the necessary permissions, there will be disruption for some time, probably two to three weeks is what we are estimating. But thereafter, we should be able to ramp it up reasonably quickly. But as an abundant caution, we are not taking any tonnage in Q4 of the ongoing fiscal. But even if it were to come in, honestly, it would not be something very significant. So the real advantage of it would come in FY 2027. Now, having said that, when we ramp up and operate the four furnaces, we will have to figure out how the situation plays out. But we are fairly confident about achieving, let's say, between 70,000 to 80,000 tons of output in FY 2027 from this unit with an upside potential to that number. But I am more comfortable indicating something like 70,000 to 80,000 tons in FY 2027. That is actually quite helpful, sir. Thanks for the answer. Sir, my next question is pertaining to the ferro prices as of date. I believe the prices are up, and like sir said, that we really get the benefit one quarter lag. Is it possible that this 19.3% kind of an EBITDA margin, there is a substantial upside, and you can achieve what highs you were able to achieve a couple of quarters back, about 24%, 25% kind of a range? We will certainly achieve more than Q2 EBITDA in Q3, partly because we will not have the one-time outliers, as Saunak Gupta put it. But even otherwise, purely on a realization basis, there is a substantial up move. As you know, domestic prices are ranging between INR 115,000 to INR 118,000 a ton. And internationally, excluding China, it is more than $1, so about $1-$4. And even in China, the monthly prices that they have declared are significantly higher than two or three quarters ago. So we will see a definite improvement in the EBITDA margins for Q3, and we are comfortable at this point in time indicating that we expect that to continue in Q4 as well with the usual caveat that barring any exceptional circumstances. That is helpful, sir. Is it possible to let us know the production and the ore raise during Q2? Yes. I will ask Mr. Shaunak Gupta to sort of give that number. I know that in our press release, those numbers were not there, but I think it was a very content-heavy press release, focusing primarily on the acquisition. We will most certainly share the output numbers. Mr. Shaunak Gupta, would you like to just mention that, please? Yes. For quarter 2, our production of ferrochrome was 65,671 metric ton, and chrome ore production was 169,615. Ferrochrome sales improved in this quarter, and it was 69,765. These were the production and sales figure. On the power side, that is the captive power, it was 309.41 million units. I believe, sir, I believe even last quarter con call, you had mentioned that you have ample of inventory of ore. Also this time, I believe you have done almost over 170,000. It is fair to assume that once the acquisition facility comes up in stream, you will have ample of ore on hand to immediately take care, captive ore on hand to take care of that basically. Parsal, let me answer that. I think you were there on the CNBC call yesterday also. I want to clarify so as to remove any iota of confusion or doubt in this regard, that we do not intend to buy any ore going ahead. We will be meeting our requirement both for the existing capacity plus greenfield plus acquisition from our captive mines. In that regard, in fact, if I am not mistaken three, four quarters ago, there had been some questions relating to the high level of ore that we were carrying as stock. We were actually building it up because as you know that for quite a while we had been around that 6 lakh tons of ore raising per annum. In FY 2025, we crossed 7 lakh tons for the first time. In FY 2026, we are now with the acquisition having been signed off on, so it is all systems go. We are looking to touch about 8.5 lakh tons of ore raising in FY 2026. Of course, our eventual target is to get to 12 lakh tons. If you look at the production, clearly for 3 to 4 years, there is going to be a gap between what the annual requirement is and what our annual raising is. That gap is going to be met from the stock that we have built up, as well as some low-grade ore, which is available for blending purposes. All in all the ore required will be in-house. That, of course, substantially adds to value creation. Thank you so much, sir. Thank you for all the answers. They were quite detailed. I will just get back in the queue if I have further questions. Most welcome. Thank you. A reminder to the participants of this conference that if you wish to ask a question, you may press star and 1 on your touchtone phone to join the question queue. Our next question comes from the line of Priya Agarwal from Kotak Investment. Please go ahead. Priya Agarwal, are you here with us? Hello. Yes, ma'am, you are audible. Please continue with your question. Yeah. First of all, congratulations to the IMFA team for such a great quarter and on the acquisition part. I would like to know what was quarter to date their performance for IMFA in terms of specific ore, specific coke, and specific power. Sorry, I could not quite get the question. If you are asking about the data in terms of production and output, we just shared that, but Mr. Shaunak Gupta can repeat the numbers. I wanted to ask, sir, regarding the specific consumptions in terms of what ton of HC FeCr, how much ore was consumed, how much coke was consumed, and how much power was consumed. Priya, we will not get into the specifics because these are again, commercially sensitive data, but broadly in line with the accepted parameters. There are no outliers in that regard. Okay. Secondly, I wanted to ask that as you have mentioned that the benefits from the recent acquisition will start from FY 2027, so how much percentage of decrease in the cost can we expect? It is not a decrease in cost because if you look at our production cost in Choudwar and our production cost in Therubali, they will broadly remain what they have been. But what is relevant here is that production will be coming online at a location which is Kalinganagar. Just to clarify, we are now using the terminology Kalinganagar One for our greenfield project and Kalinganagar Two for the acquired unit. Production coming up in Kalinganagar overall will be far more competitive than, I mean, will be very competitive. So our weighted average cost of production goes down. But in other locations, it sort of remains the same. The best way I can explain it is that if this production was to come up in some other location, it may not have been as competitive. I hope I am able to explain the thought process here, that the production is in a location which is logistically very competitive and efficient. Okay, sir. That was a great help. Thank you so much. I will get back into. Thank you. Our next question comes from the line of Anshika Agrawal from Kotak Bank. Please go ahead. Ma'am, are you here with us? Hello. Miss Anshika Agrawal. Yes, please go ahead with your question. I wanted to know the domestic and export percentage of the. Sorry, there's a lot of crosstalk. I'm not able to hear the question. Domestic and exports and domestic for Q2? Is that what you are asking? Yes. Domestic and export. Yeah. Second quarter we did supply a little bit more tonnage to the domestic market. Broadly, I think we were at about 90% exports and 10% domestic sales there or thereabout. But I'd like to take this opportunity to also share that going ahead, we are certainly going to align a little bit more towards the domestic market given our strategic positioning in Kalinganagar and in Odisha, which is really emerging as the stainless steel hub of India. So in a couple of years' time with the entire capacity online, greenfield and acquisitions, we are expecting to be about 60-40. So 60% exports and 40% domestic. But of course, we retain the flexibility to direct more tonnage towards the domestic market or towards the export market if circumstances so warrant. Another thing, second question. What is our spot and LTC percent? So, really if you look at it from a long-term contract and a spot perspective, the bulk of it is long-term because the only difference being that, certain customers we have annual contracts or in fact with POSCO given that we have a joint venture, we have a five-year contract which is repriced every quarter. Purely in terms of spot tonnages, it is very insignificant but, Suresh, is there any additional data that you can add to this question or that about broadly answers it? You have broadly answered. That is an insignificant and it is almost around 7% to 8% will go on for spot. What will be our future ratio between this? Come again. Anshika, ma'am, your line is not audible. Could you please move to an area with better connectivity? Hello? Please go ahead with your question. What will be our future spot in LTC percentage after this acquisition, everything? Anshika, by and large, we prefer longer term commitments because I think that assures us offtake, while keeping some tonnage available for the spot market. Even in the long-term contracts, as I mentioned, these are repriced either every month or every quarter. We will continue to follow that strategy. Having said that, as we direct more towards the domestic market, the domestic market tends to be not against long-term contracts. To that extent, I think domestic sales will be more on a cargo-to-cargo basis for pricing. We will sort of see how it plays out. Our preference is for longer-term relationships where there is assured offtake from our point of view and assured supply from a customer's point of view. Anshika ma'am's line seems to have disconnected. We will now move on to the next participant in the queue. The next question comes from the line of Deepak Pandey from Sagun Capital. Please go ahead. Hi, sir. Thanks for an opportunity. Congrats on the acquisition part. Sir, my question actually pertains to the global supply and demand scenario. With the cuts in South Africa, where do we stand versus Chinese players currently in cost of production, if you can throw some light? Actually, in as much as South Africa is concerned, as you know, there has been a gradual decline in South African output. Until about five or six years ago, they were the world's largest producer of ferrochrome and then ceded that position to China. Chinese production has gone up significantly, primarily at the cost of South African production. That's because of their internal logistics costs as well as increasing power costs. While that tussle is going on between whether there should be special tariffs for South Africa or not, basically, I think the preference has been towards exporting the chrome ore entirely to China, so to say. Now, if I look at China, while they have emerged as the world's largest producer of ferrochrome, but they are relatively speaking, high cost, because they are entirely dependent upon imported chrome ore. Your specific question, Deepak, about Chinese cost of production versus ours. It's a little difficult to sort of estimate what the Chinese cost of production is, because it's not an open economy and it's not too much published data available. But based on experience, based on conversations, the sense we get is that they are perhaps somewhere around that $1,000 per ton mark. I know this is a number which is mentioned in the Anand Rathi report as well. We sort of corroborate that with our experience in the sense that, if you look at the recent past, prices sort of bounce back from a certain level, which is indicative that has reached the variable cost of production of Chinese producers. I can't give you any concrete data, but this is born out of experience. If you look at in the last three or four quarters, I think the lowest we saw was about $0.75-$0.77. Then it started pulling back from that level, indicating that a lot of production was underwater in terms of value at that point in time. Got it. That's very helpful. Secondly, you said domestic split will move up in the revenue part. Is there a difference in realization or EBITDA per ton in domestic versus export, or is that largely the function of market prices only? No. There is no significant difference. There is a timing difference, and let me explain that. First of all, there is no significant difference because duty on ferrochrome is import duty is negligible. I think it's 5%, if I'm not mistaken. So there is no duty protection, which means that ferrochrome prices domestically are higher or anything of that sort. There is a timing difference because, and that will happen even with exports, because if we are pricing a particular customer on a quarterly basis and we are pricing another customer on a monthly basis, then that timing difference can lead to pricing difference as well. How it works with quarterly pricing is that there are many instances where we have fixed a certain price with that customer and the spot prices goes down thereafter. There are many instances where we fix a quarterly price and the spot price moves up. So when you have a long-term relationship, you adjust for these vagaries and make sure that it's a win-win situation. If you look at it at a singular point in time, then what you will find is differences between customers, even when it is exports or between customers when it is exports and domestic, simply because of the timing difference. The one other factor here, of course, is China is a unique situation where they have a huge production capacity, and it is also a producer's price that is declared by them. So China tends to be a little more competitive than the rest, but there are structural reasons for that. Got it. Sir, last question is on the domestic supply and demand scenario. Deepak Pandey, sir. Extremely sorry to interrupt. Can I please ask you to rejoin the question queue for- No problem. Thank you so much. Our next question comes from the line of Parthiv Jhonsa from Anand Rathi. Please go ahead, sir. Thank you for the opportunity again. Shaunak Sir, is it possible just to repeat the production and the sales number again? Actually, I missed it out. Yeah. The production side of ferrochrome, we did 65,671, and on chrome ore, 1 lakh 69,615. Ferrochrome sales was 69,765. Okay. Thank you, Sir, for the information again. Shaunak Sir, just wanted to check with you quickly. You said that you had a one-time impact of about INR 16 crores in power and fuel expenses, line item basically. That basically translates to about 2% or 2.2% of the top line. Is it fair to assume that this is basically a one-time, so this won't be there in the next quarter? Considering better prices and all, there is a certain benefit of almost what, 2%, 2.5% on the EBITDA from this? Yeah. This differential is our INR 14 crores. INR 2 crores will be the average quarterly expenses on this, so it is around 2.3%, is the one-time impact for this quarter. Okay. Thank you so much, sir. Thank you. Thank you. Our next question comes from the line of Kaushal Kedia from Wallfort PMS. Please go ahead. Yeah. Mr. Parth, congratulations on a fantastic acquisition. Sir, I do not have a question, more of a recommendation and a request as an old shareholder. There has not been much institutional participation in the share, and I think you all had also done a kind of a road show in June to tell our story to the bigger funds. If possible, I know you have said it multiple times that the entire acquisition will be funded internally through internal accruals and we do not need money. But it would be great if you could consider raising maybe a small token amount for primary share capital, maybe to get some institutional interest in the stock. So just a request from a shareholder, if you could consider that and explore that, please. Thank you, Kaushal. We will certainly take the suggestion on board. Thank you. Thank you, sir. Thank you. Our next question comes from the line of Aashav Patel from Molecule Ventures PMS. Please go ahead. Thank you for the opportunity. Many thanks for participating on the con call, Mr. Panda. Many congratulations to the entire team for this truly exemplary achievement. My first question is, sir, to Mr. Panda, that I understand ferrochrome prices are very dynamic and it is difficult to predict the future as such. But given the massive supply cuts in South Africa now over last few months, now almost 60% of their smelting capacity is shut down. Further, Samancor is planning more shutdowns, and industry is also expecting an export tariff of 25% on South African chrome ore exports, which, if implemented, will further lead to cost inflation. Probabilistically speaking, sir, can FY 2027 be a year of upcycle for IMFA like FY 2022 or like FY 2017, wherein we ended up reporting almost 30% kind of operating margins? Well, I would certainly hope so and pray that it happens. But realistically, as I said, we have learnt with the passage of time not to get ahead of ourselves and make any long-term projections. All that I will say is that the fundamentals are such, and they are changing in a manner which is indicative that strong competitive producers like ourselves are well-placed. Of course, South African production cut has been quite significant. But that is getting replaced by Chinese production, which is not necessarily a bad thing because that cost of production is noticeably higher than an integrated producer in India like us. Right? In as much as export tax on chrome ore and all from South Africa, there has been quite a bit of back and forth on it and we will wait and watch how it sees. But fundamentally, while I am reluctant to make any long-term projections, I am confident to say that by the grace of God, we will be competitive and profitable, and relatively well-placed compared to others. The fundamentals are shaping up in such a way that things look good at this point in time. Got it. And sir, my second question is on the longevity of cycles. Historically, what we have seen after the supply cuts, there is improvement in the ferrochrome realization in line with improvement in stainless steel demand or volume growth. But this time around, as you rightly mentioned that the capacity is moving to incremental capacity is also moving more towards China, and they have a higher cost of production by, say, INR 10,000 to INR 15,000 per ton compared to us. How do you see the longevity of the upcycle? Because this time around, as of now yet, we do not have support from stainless steel volume growth or stainless steel demand improvement. What really happens when that starts also clicking? Can we expect the cycle to last much longer compared to the historical phase? It is, again, difficult to You have asked a very good question, by the way, but it is difficult to predict what the longevity of the cycle will be. Because when I first started out in the business, and I am talking quite a while ago, the cycles had a certain cadence to it, and that was dictated by the mismatch between consumption, which is stainless steel production increase, and supply, which is ferrochrome capacity increase. Those were the original sort of contributors to the cycle. But today, it is a far more complex situation. Therefore, it is a little harder to predict. But again, I think fundamentally, things are changing because you are seeing across the world an elevated chrome ore cost. If you are not an integrated producer, that is a huge disadvantage. Besides that, earlier, a lot of capacity which went offline would come back on if markets improved. But today, the expectation is that if South Africa somehow digs itself out of this situation, not all of the capacity which has gone offline will come back online. That is what experts have to say. Absolutely. Fundamentally, I think the markets have changed, and this is what, without making specific comments or giving guidance about future prices, all that I am happy to say is that fundamentally, we are confident about where we are placed. And sir, based on spot EBITDA cost of around, say, INR 78,000 per metric ton, and realizations as we speak are at INR 118,000 per metric ton. So our current spread is almost INR 40,000 per metric ton, which is historically the highest ever. I understand this flows into numbers with a quarterly lag. Is that correct understanding? There and thereabout. Again, the other reason, of course, you see the ebb and flow in terms of margins is that raw material, you see a lag between stainless steel and ferrochrome, and ferrochrome and chrome ore for non-integrated producers. What is happening with non-integrated producers right now is that almost in real time, chrome ore prices are moving up in anticipation of higher ferrochrome prices. So that is handy if you are an integrated producer like ourselves. But there are certain other elements which are not in our control, which is metallurgical coke, et cetera. But you asked actually one other question. In your first question, there is one other element. Mm-hmm. Yes. with regards to long-term forecast, which I wanted to speak, is with regard to stainless steel demand. Now, you are absolutely right that I think currently, the upward movement in prices has more to do with cost pressures and relatively less to do with stainless steel demand. That is not to say stainless steel is not increasing. Stainless steel demand is increasing in India, in China, it is increasing. But if there is a little bit more sort of legs to the demand side, then you will certainly see that translate very, very noticeably quickly into ferrochrome price. Even considering, sir, what you mentioned in the press release, almost 4 lakh metric ton of production for next year. Even if we consider slight dip in our EBITDA spread from current level of INR 40,000 to say as a more sustainable level of INR 30,000, and keeping all this stainless steel demand increase as an optionality. Even a sustainable INR 30,000 EBITDA per metric ton for the next year would translate itself to around INR 1,200 crore kind of an EBITDA, right? Look, I do not want to get ahead of myself in making projections for a year and a half out. What I have said in interactions is that up till now, we have considered a steady state EBITDA of about INR 18,000 to INR 20,000 a ton with peaks and drops depending upon market situation. But depending on how the fundamentals play out, there is- I understand, sir. I am just asking probabilistically speaking. I absolutely agree with you that it is very difficult to predict, but probabilistically speaking, given all the fundamentals, there is more probability of that happening, right? That is my question. Look, I will leave you to make that conclusion because I wouldn't want to. It has served us well not to project too far out. We remain quietly confident, but I wouldn't want to put numbers or probability to that. Sir, that's all from my side, sir. All the very best. All best wishes. Thank you. Thank you. Thank you. Our next question comes from the line of Pranav Jain from Ageless Capital and Finance. Please go ahead. Good afternoon to the entire team, and congratulations on the great numbers and the acquisition. Really happy to see you on the call, Subhrakantji. I just had a couple of questions regarding the acquisition. Firstly, can you just give me an idea on why Tata Steel wanted to sell their ferrochrome plant? Was this their only ferrochrome plant? Or after this, will they not have ferrochrome operations at all, or was there some other reason? Pranav, I can answer the factual part of the question is that they have other ferrochrome facilities, but as regards why they sold, I do not think it is correct or proper on my part to say anything in that regard. Got it, sir. And sir, with this new plant, our power requirement will be captive. Do we get a power source from the asset transfer agreement? No, we do not get a power source from the asset transfer agreement. That is where we have tied up with 110 MW of hybrid renewable energy, which of course will be distributing some to our existing units as well, in order to reduce our carbon footprint. No, we are not getting any power arrangement through the asset transfer agreement. We will, of course, be connected to the DISCOM as far as both the units or the greenfield and the acquisition unit, as far as both are concerned. Good. Sir, the 110 MW was, I think, barely sufficing our existing needs. How will that translate to the new plant as well then? No, not sufficing our existing needs. Prior to the acquisition, it was a little bit more than what was there. That is why we have signed up for 110. We will be exploring if we need to increase the more procurement of electricity through hybrid renewable or otherwise. Got it. The incremental 50,000 tons that is under construction, how much CapEx would have to be incurred for that to go live? Pranav, thank you for asking that question. Actually, I should have covered it in my remarks. The INR 610 crore is the base purchase consideration. There is GST being asset transfer, but that is something on which we will get input tax credit. Net working capital to be determined on the day of closure. We expect it to be somewhere around INR 50 crore. As far as the fifth furnace is concerned, we expect to spend about INR 50 crore to commission that. This is basis due diligence, albeit a very thorough due diligence. But we will be able to get greater certainty about that number once we take control of the unit and do a deeper dive. But we are fairly comfortable projecting about INR 50 crore CapEx to commission the furnace under construction. So the approximate cost for the entire 150,000 tons will be somewhere around INR 700 crore to INR 750 crore then? Broadly, yes. Got it, sir. That's all from my end, sir. Thank you for answering the questions, and it's lovely to see the management being true to their word and expanding in very favorable conditions. Thank you, sir. Thank you. Thank you. Our next question comes from the line of Joe Shah from Seven Seas. Please go ahead. Morgan, congratulations to you and your team for Kalinganagar Unit Number 2. Please clarify it is the same as the Rohit Ferro-Tech plant which Tata Steel acquired in 2022. This is same as Rohit Ferro-Tech plant? Yes, that's right. Okay. Thank you. This 33 MVA furnace cost which you maintain of INR 50 crore is incredible and very good actually for us. When we look at Kalinganagar Unit Number 1, we are spending about INR 550 crore for 100,000 ton capacity plus other related CapEx. That way, this INR 50 crore is very good for IMFA. That's actually not. We're not comparing apples to apples because, of course, Kalinganagar 1 greenfield is a newer unit being built now. Secondly, substantial work has happened on the 33 MVA furnace, so it's not starting from scratch. Almost a substantial amount of work has been done. It is only to complete that and bring it to commissioning stage. Actually, it's not comparable numbers. Okay. Tata Steel is having another very good unit, Bamnipal Plant, which is now idle and not working with capacity of 65,000 tons. This should be our next target, this Bamnipal unit? No, it is not proper for me to comment on what assets they have and what TSL plans to do with it. That's not proper for me to comment. Okay. Coming to the Sukinda- Mr. Shah. Yes. Mr. Shah, extremely sorry to interrupt, but I will have to request you to please rejoin the question queue for follow-up questions. Our next question comes from the line of Saket Kapoor from Kapoor & Co. Please go ahead. Yeah. Namaskar sir, and thank you to the Namaskar. Thank you to the team, sir, and thank you, Mr. Panda, for addressing us today, and we hope to hear more from you, sir, going ahead. Sir, firstly, with respect to the asset being acquired, since it was an operational asset, sir, can you elaborate who are the customers which Tata Steel was catering to? Whether export and the domestic mix, any clarity you can give? Saket, I do not know about that, and in any case, it is not relevant for us because being an asset transfer, we are only buying specific assets. So that is it. Okay. But in terms of we continuing with the asset and sweating of the assets, we will be eyeing a new customer, or how are we going to sell the expanded capacity currently? There is a fair amount of demand for ferrochrome in the domestic market. As I have mentioned, and as you would be aware, our existing capacity of 260,000 tons is primarily directed to export markets. That was because there wasn't that much opportunity. But now there is space which has opened up, and therefore we will be looking to cater more to the domestic market in terms of the various industrial producers there are. In fact, with some overseas customers as well, there is expectation of more to grow supplies as they grow their size. So we will be balancing that out. Okay. Sir, just a small point. What is our EC limit for the throughput for ore for the existing mine, sir? As you were mentioning that we will be enhancing the throughput. So what is the environment clearance that we have received, the higher side limit? It's 12 lakh tons. Sandeep, could you confirm that, please? Yes, sir. It is 12 lakh tons together from both the mines. Okay, and our last year number was? How much have we extracted? 7 lakh. 7 lakh. We have a quite of area to cover. Lastly, sir, we have also seen, as in case of Sukinda mine from Tata Steel, there were some issues pertaining to the output there. Are we eyeing that? What is the story behind this mine output being lower since we are also operating in the same region, not specific to IMFA, but we have seen a lot of stuff regarding the output not being raised from those areas. Are these geographies anyway affecting our thought process of expansion also? There was some lower output. Yes. Saket, again, two different circumstances, and in any case, not correct for me to comment in any way on somebody else's assets and what issues they are facing or not facing. But the one thing I can certainly speak with confidence is that we are on track to expand our own raising from the steady state 6 lakh tons where we were and 7 lakh tons in FY 2025, little more than 7 lakh tons to 8.5 lakh tons in FY 2026, and eventually scaling up to 12 lakh tons. We are on target, on course for that, and I do not see any concerns in that regard. Okay. And lastly, sir, for this we will be going to the underground mine route also. Saket Kapoor. Yeah. I joined the queue only to conclude there. We will go through the underground mining route also, I think, so a lot of CapEx will go there to reach that 1.2 million capacity. Yes. Our Mahagiri mines, from which we are looking at ultimately getting to 4 lakh tons, we have in FY 2025 raised across 4 lakh tons for the first time, and we will Sorry, we will be going up to 6 lakh tons. Mahagiri mine is already underground. As far as our Sukinda mine is concerned, we have initiated the underground projects, and we will be transitioning in the next three odd years, three to four years, to a fully underground mine, eventually reaching 6 lakh tons. So 6 plus 6 is 12 lakh tons. As far as the CapEx for underground is concerned, broadly it is about INR 1,000 crore, which is what we have briefed earlier as well. Yeah. Thank you, sir, and hope to hear you more in the call going ahead if time permits for you, sir. Thank you and all the best. Thank you. Thanks. Thank you, Saket. Thank you. Our next follow-up question comes from the line of Parthiv Jhonsa from Anand Rathi. Please go ahead, sir. Hi. Thanks for the opportunity again, sir. Sir, I had a very bit of a technical question. Is it possible to quantify our ore grade with the average blended ore grade of India or globally, whatever is comfortable? Sandeep can perhaps give you an answer, but even in our minds, it depends upon which vein you strike. As we go deeper, we are finding the grade improving actually. Okay. Broadly speaking, South Africa is very low grade ore, but they have humongous quantities, as you know, 8 billion tons or whatever it is. Sandeep, if you want to just shed some light on this. Mostly right now we are having a medium grade that is ranging from 40% to 51.99%. In that range, mostly we are getting the ore. Okay, sir. What will be those grade at, say, South Africa? Just a very blended number is fine, sir. I do not want to hazard a guess on that. I know generally speaking, it is lower grade than Indian ore, but again, depends where. Okay. Because Karnataka, where they used to be chrome ore mining until 10, 15 years ago, Karnataka had very low-grade ore as well. All of that just translates to the grade of ferrochrome that we produce, nothing more beyond that. Okay. Thank you so much, sir. Thank you. Our next question comes from the line of Harsh Vasa from SBI Capital Securities. Please go ahead. Yeah. Thank you, sir, for the opportunity, and congratulations on the Beja mine exploration. My question is that- Thanks. The greenfield capacity is coming up around 90,000-100,000 tons. What will be your capacity utilization for FY 2027? Like 48,000 is coming in June 2026, followed by September 2026, 48,000. What will be your capacity utilization for next year? Broadly, as I had mentioned earlier, we had been producing 260,000 tons on an annualized basis from our existing capacity, give or take a little bit if you look at the data for the last three odd years. Next year, in FY 2027, we are assuming the same broad 260 from our existing capacity. We are looking at between 70,000 to 80,000 tons for the acquisition, and the rest coming from our greenfield project. Suresh, would you like to just give any more details on that? Broadly, Harsh, what I would say is 260, about 80 or so from acquisition and the rest from greenfield. This mix might change a little bit, depending on how things pan out. Overall, we are reasonably confident about the 400,000 ton number. Okay, sir. Thanks, Yusuf. Thank you. Thank you. Our next question comes from the line of Nitin Kaushik from FN Capital Private Limited. Please go ahead. Good evening, sir. First of all, congratulations on the results. My first question was, how has realization improved on quarter-on-quarter basis and year-on-year basis? Shaunak, can you answer that, please? Yeah. On the realization front, quarter 1, our average realization was INR 101,000 approximately. We said this last quarter it was INR 95,000, and in previous years it was INR 102,000. That is quarter 2 was INR 102,000. INR 102,000 has, as you know, in H2 had gone down to almost INR 81,000 in quarter 4. But gradually it has started improving. It was INR 95,000 last quarter and INR 101,000 this quarter. Sir, the next question was on CapEx. Since you are doing INR 900 crore CapEx in this financial year, would it be entirely equity funded or debt funded? It will be a mixture of both. Currently we have got for this INR 900 crores in Kalinganagar, about INR 400 crores of sanction limit. We will be using not to the full extent, but depending upon how the CapEx outlay happens on that basis, but not more than INR 400 crores, so approximately 0.45% of it. Niten, if I can just add some context to that. We are of course, funding the acquisition entirely from internal accruals. As far as our ethanol project is concerned, we have a very small quantum of debt sanction for that, which we haven't drawn down as yet, but we will look to do that. We have a term loan facility sanction for our greenfield expansion. Again, we haven't drawn down on that. But we have the flexibility to do so if required. Hopefully with a much better H2, the financial planning will change a little bit. Overall, I would say that we are going to be fairly conservative about debt and only take on as much or as little as we need. The idea is to be fairly conservative in that regard, which has worked well for us. Okay, sir. Sir, my next question was on power and fuel. Since it is a big part of your expenses, in this quarter it was increased around 33%. Sir, was there any specific reason for that? Shaunak, if you could just retrace that point, please. I reiterate that point which I was saying that there is a change in law where there is for the renewable power obligations has slightly changed now. For that, we have a one-time impact of INR 14 crore. Overall, the outflow was INR 16 crore. That is, we bought REC certificates for that to meet that obligation. That is the reason why the power cost has gone up. But of that, INR 14 crore was a one-time impact. From next quarter onwards, it will be in the range of INR 2 crore-INR 3 crore. Okay, sir. Sir, my next question was- Mr. Harsh Vasa. Hello. Mr. Harsh Vasa, extremely sorry to interrupt. Can you please rejoin the question queue to ask follow-up questions? Actually, this is Niten, but yeah. Hello. Sir, a reminder to all the participants. Please limit your questions to two per participant so that the management can take questions from each participant in the question queue. Our next question is from the line of Nitin Kaushik. Please go ahead, sir. Sir, I think Niten was the one asking the question, so Yes, sir. Just a moment, sir. The next question is from the line of Yash Goyal from Ionic Wealth. Please go ahead, sir. Hello, am I audible? Yes. Good evening, sir. Congratulations for your results and the mind you have got some good plans. I wish to know about the inventory build-up and the cash position in the company. Right now, I have the result in front of me. In FY 2025, under the CFO column, we have a receivables build-up and additional incremental receivables of INR 289 crore in March 2025. Whereas the incremental increase in the inventory has not been that much. The incremental inventory has been around INR 60 crore to INR 70 crore. So there has been a sudden spike in the receivables to INR 289 crore. Could you please break down for me? Shaunak, would you respond to that, please? In this quarter, what has happened is in the September quarter, in the quarter end, there were- Sir, I am not talking about the September quarter. I am talking about the FY 2025 comparison with the previous financial year. FY 2025 or FY 2020? FY 2025. I am talking about FY 2025 numbers. The balance sheet numbers and the P&L numbers. Comparing with which quarter? FY 2025 P&L versus FY 2024? Yeah. Okay. I will share my question again. in March 2024, we had incremental receivables of INR 22 crore. And in FY 2025, we had an incremental receivables of INR 289 crore. I just want to figure out. Okay, I understood. That is basically, it is a merger of UCL with IMFA. There was already an order received by us. On that amount, there was an increase in the receivable at the year-end, which we have received in subsequent quarter. Got it. Secondly, sir, could you please guide me what a sustainable margin for the next 1-2 years would look like? As in the previous 2 quarters, this quarter has been an outlier. In the previous 2-3 quarters, we have seen a margin improvement in the company. What would be a sustainable margin after this ramp-up happens in this mine? Yash, as I have said a couple of times on the call, while we are very confident about our fundamentals and that of the market, that it is changing in a manner where a fully integrated producer like ourselves is well-positioned by the grace of God. I do not want to give guidance a couple of years ahead in terms of what margins will be. Suffice it to say that we are fundamentally very strong and poised very well in terms of competitiveness, and that will translate into superior margins as compared to many of our peers. Thank you. We move to the next question from Priya Agarwal of Kotak Investments. Please go ahead. Sir, just during the call you mentioned that since we are having a long-term strategic goal of 12 lakh tons of ROM. Is there the saying that now there will be no such ore shortage and it will be wholly integrated and there will be no outside ore purchase? Yes. Even now we do not purchase any ore, and going ahead, we do not need to purchase any ore for our existing capacity or acquisition or greenfield. Entirely made from captive mines, from a combination of increased ore raising plus we will take a few years to get to 12 lakh tons. But until then, we have other stock available. We have been carrying some excess stock, so that will guide us through the interim period. Okay. In terms of the other raw materials, are we looking forward to long-term agreements for the other raw material as well to lock in the prices? Or are we going for the spot purchases only in terms of coke or coal, if we are considering- Coal pricing, of course, in India is decided by Coal India Limited. As far as metallurgical coke, et cetera, is concerned, we buy on a cargo-to-cargo basis. Not really possible to lock in prices for long periods of time. Of course, inasmuch as electricity is concerned, we are now from next June, going to be procuring a lot of hybrid renewable energy, where barring any policy change, the procurement price is fixed for long-term. Thank you. Ms. Priya, may we request that you return to the question queue for follow-up questions. Our next question comes from Deepak Pandey, from Sagun Capital. Please go ahead. Hi, my questions have been answered. Thanks. Thank you. Our next question comes from Akshat Gupta, who's an investor. Please go ahead. Mr. Akshat Gupta, may we request you to unmute your line and go ahead. Yeah. Hello, good evening to you all. First of all, congratulations to the management for a tremendous result, and I hope this result continue for the next whole financial year and for the upcoming years. My two questions which I want to ask, that will be mostly on the expansion project. First of all, with the expansion project and along with the acquisition of Tata plants. I just wanted to understand what will be the source of coke which we are going to purchase, as coke is one of the most important raw material for the ferrochrome industry. Secondly, with the increased expansion and with the increased acquisition of the Tata plant. Almost IMFA's production will be around 500 KTPA. Since there are some other peer companies who are also expanding their operational base to 450, 500 KTPA. How the market will be driven from that, your growth and from other companies' growth also. What will be the market strategy and along with that, what will be the impact on NSR and COP? Akshat, as far as source of coke is concerned, we look at a variety of sources, primarily focusing on ultra low phos coke because of the end use specifications that we need to meet. That will continue. As far as market is concerned, the overall ferrochrome market worldwide is close to 20 million tonnes. We are very confident about our ability and not to mention within India itself ferrochrome consumption is increasing. Marketing the increased output is not an issue at all, irrespective of other dynamics. Can you just explain in a few lines how does the marketing, you have mentioned 20 million tonne of the whole ferrochrome market. Indian market is also something. Can you quote us some number? How can we be planning? What is the gap which is there in the current market? You are expanding, your peer companies are also expanding. Right. But Indian ferrochrome production is a fraction of the world market. Our expansion and other expansions, there is not going to be an oversupply situation is the plain and simple point if that is a area of concern. Okay. Thank you. Thank you. Our next question comes from Manan Vandur with Wallfort PMS. Please go ahead. Yes. Thank you for the opportunity and congratulations on the numbers and the acquisition. My question was regarding to the met coke prices for Q2 and currently. Could you please guide us on that? Without getting into specifics, I would say that met coke prices have been reasonably stable. Again, I wouldn't want to quote specific cargo-wise numbers because I think that's again sensitive. But Suresh, would you want to comment on the directionality? Broadly stable, if I'm not mistaken. Broadly, the prices are stable. A little bit of ocean freight is increasing, so slight increase is there, but broadly it is stable. Okay. About ferrochrome prices, you said that domestically we are at INR 1.15 lakh to INR 1.18 lakh. Overall in our exports also, if we convert it from USD to INR, would that also be somewhere around that price only? It is. Of course, there are several export markets. Chinese tends to be slightly on the lower side, as I said, because of the particular dynamics of significant production capacity within the country. By and large, yes, that is the case. Thank you. Mr. Manan, may we request that you return to the question queue for follow-up questions. Our next question comes from Aashav Patel from Molecule Ventures PMS. Please go ahead. Thank you for the opportunity. My question is with regards to the acquisition which we have done. We have almost a 115 acre land parcel there. How much land have we consumed between, say, 1.5 lakh metric ton? What is the spare land which we have available? Asking this to gauge how much future capacities can the same land parcel consume. Ashav, interesting question. I think that's a question which has taken us a little bit by surprise. I do not think we have an exact number of how much land is available. But suffice it to say that even after completing all of this, there is scope to add more capacity there if needed. But I do not think we have the exact answer of how much land is unused because there's quite a bit of facilities there in terms of metal recovery, plant, et cetera, which is there as well. Okay. With regards to the same question on the greenfield Kalinganagar One land parcel. Kalinganagar One that way is Vijayananda, what is the acreage on that for Kalinganagar One? That is around 120 acres, but we have already planned for another furnace of same capacity. There is land available. We can scale from 1 lakh metric ton towards 2 lakh metric ton on the Kalinganagar 1. From two furnaces to three furnaces. Okay. Beyond that on the same land parcel won't be possible, is it? No. Even this will be tight, but it is doable, but beyond that, not possible. Thank you. Mr. Aashav Patel, may we request that you return to the question queue, please. The next question comes from Swati Agarwal for Ozen Investor. Please go ahead. Good evening. Am I audible? Yes. Yes, ma'am. My question is on the line of the underground mining. You mentioned that you are looking at a INR 1,000 crore CapEx for the same. Given that from 9 lakh tons we will be moving to another additional 3 lakh tons, this amount looks quite huge. Can you elaborate more on how this CapEx and over how much time it is going to be utilized? No, this is not to go from 9 lakh tons to 12 lakh tons. This is to go from open cast 3 lakh tons in Sukinda to underground 6 lakh tons. The CapEx has already started from last year, and it will be spread out for about four years or so. Sandeep, you can maybe provide a little bit more context. Yeah. Right now our Sukinda mine is open cast mine, and we are producing 3 lakh tons per annum from there. In the next four to five years, this open cast mine will cease and it will be transferred into the underground mine, and we will be having the capacity of 6 lakh tons from underground in Sukinda. Okay. Per ton cost, how much would it increase when we shift to this? Again, we wouldn't want to get too much into the details, but Shaunak, any number that we are in a position to share or give an indication? Look, when we move from open cast to underground, there will certainly be an increase in costs. But there are certain other efficiencies which also come into play in underground mines. Overall, nothing significant in terms of the cost increase. Yeah, I agree to that. There won't be too much of significant cost increase, because in case of currently also what we are doing in the Mahagiri, there is a marginal increase in the cost. Similarly in Sukinda also, we would be in a similar range of our cost for the underground mines. Thank you. Ma'am, may we request that you return to the question queue for follow-up questions. Our next question comes from Saket Kapoor from Kapoor and Company. Please go ahead. Yeah, sir. Thank you for the extended opportunity. Mr. Panda, sir, you have always alluded to the fact of visibility for the ensuring 2 quarters. Taking that account, the type of the trend in the ferrochrome prices, what should be the EBITDA trajectory that we should look forward a ballpark number for H2, since when we compare the previous H1 with the current year H1, the gap is around, say, INR 60 crore is the down trading in the EBITDA. So what should we look forward a ballpark number, if you could guide us with? I will actually ask Mr. Shaunak Gupta to give you a little bit more details. Saket, I do not think it is correct to say that there is a INR 60 crore difference because, certainly there is some difference because realizations in Q2 were moving up and had not reached the levels that we will see for the full quarter of Q3. There are also other one-time elements which have eaten into the reported EBITDA, and primarily the notional mark-to-market. Here, one question I want to clarify because this is something which used to come up. Whatever be the mark-to-market number, we should never be under the illusion that it goes against us. Because actually, what is happening is that the corresponding gain is embedded in the top line. More importantly, what you are embedding, the gain which is embedded is your sales during the quarter. Whereas mark-to-market is your entire outstanding forex position. It is not really also an apples-to-apples comparison, if you understand what I mean. Right, sir. Yes. What we said earlier, what Parthiv Jhonsa was asking, so the RPO related, whatever is the differential obligations we had, that is a one-time impact of 2.3%. From 19.3%, we expect the margins to improve to that level. Then we have to see how specifically the currencies move, because on that, as I said, we have de-risked it with the hedging part. So there is one part which is in the revenue and the other one is in the other expenses, which technically set it off. But there may be a timing difference, so that we have to see in the future. But with the increasing average realization price, we expect quarter three to be better than definitely 19.3%. Correct, sir. Okay, sir. Thank you. Thank you for all the detailed call, sir, and all the best, sir. Thank you. Thank you. Thank you. Our next question comes from Pranav Jain with Ageless Capital and Finance. Please go ahead. Thanks for the follow-up. Sir, I just do not understand one thing. We set up a greenfield capacity with a cost of around INR 950 crore, and we acquired this plant from Tata Steel for approximately INR 600 crore. I understand greenfield is more cost-intensive, but such a big deviation, does that bound to happen generally? First of all, it is not INR 950 crore. Second, the greenfield includes about 120 odd crore towards 8.7 megawatt waste heat recovery power plant. Right? And third, there are, as you said, greenfield costs which are attributed to the Ferro Alloys plant and partly to the power plant as well, which is not there in a mature site. And of course, the other point is the acquired asset is an older asset. So to that extent, capital costs have moved up in that context. But of course, we are looking at our ability to create value from those assets. And the age of the assets is not something that concerns us, because if you look at our own facilities, our very first furnace at Dhule was set up in 1967 or 1968, and it is still running beautifully. Got it, sir. Would it be possible to give out the production numbers for the acquired plant? What they have been producing? Yeah. No, we don't have access to that. Okay. Got it, sir. Thank you. Thank you. Our next question comes from Nisim Kaushik with Effin Capital Private Limited. Please go ahead. My question was, based on current scenario, you were saying that a price increase is expected. Sir, can you quantify the impact of your margins since you are fully integrated? So I was asking if this price increase would help you, and if it helps you, could you please quantify that numbers on EBITDA margin? Sorry, I did not understand the question. Sir, my question is that since we are expecting a price increase in the- Sir, Mr. Kaushik, sorry to interrupt you, sir. Yes. Before you go ahead with the question, may we request you to use your handset, sir. Your audio is breaking slightly, sir. Sir, is it clear now? Yes, better now, sir. Okay. My question was, based on current scenario, we are expecting a price increase in quarter three. I was asking if you could quantify that impact of price increase on your margins. It will obviously We have shared the average realization for Q2. We are indicating, for example, in the domestic market, prices have moved up to the INR 1,15,000 to INR 1,18,000 range. Export markets by and large have also moved up there and thereabout. That is something that can be worked out fairly easily. Okay, sir. Got it, sir. My next question is, exactly what is the main driver of your revenue? Is it volume or the price level? If you could answer that. Sorry, you are cutting off again. Hello. Sir, is it clear now? Hello? Yes, sir. Please go ahead, sir. Okay, sir. Sir, my question was, what is the main driver of your revenue? Is it volume or is it the prevailing price level? Shaunak, I was not able to understand. Could you answer that? Yeah. Just once more, if you can repeat. I also could not understand the question. Sir, my question is, what is the main driver of your revenue? Is it the volume produced or the prevailing price level? Sir, as you would understand that we have a production capacity of 2,60,000 as of now, and currently, we sell off the full unit. So obviously the key driver would be the market price. For our revenue, the price is the main driver for the quarter. But going ahead, the volume is increasing, so then volume becomes the driver along with price. Right. Thank you. Ladies and gentlemen, that was the last question for the day. As there are no further questions, I would now like to hand the conference over to Mr. Abhishek Savant for closing comments. Before that, Abhishek, I just wanted to come in briefly. I wanted to thank all the participants who attended today's investor con call for the time. I appreciate you taking time out from your busy schedules to learn more about the company, and appreciate the opportunity to discuss in detail. We certainly look forward to more such opportunities. If there are any questions that were left out, if there is anything else that you would like to learn further about, then please do not hesitate to reach out to us, and we will certainly try our best to answer your queries to the best of our ability. Yes. Thank you, sir. Thank you to everyone who joined us today and participated in the discussion. We appreciate your questions and continued interest in IMFA. As always, we remain committed to transparent communication and delivering long-term value to our stakeholders. On behalf of the Board of Directors and management, we thank you for all your participation in this call. IMFA remains focused on operational excellence, financial prudence, and long-term value creation. Should you have any further questions, please feel free to reach out to us. We look forward to engaging with you again in the near future. Have a great evening and stay safe. Thank you. Thank you. On behalf of Indian Metals and Ferro Alloys Limited and Veritas Reputation, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you, everyone.