Q4 23/24

May 24, 2024

Summary

FY24 set operational records in ferrochrome, ore and power, while Q4 included substantial Utkal Coal impairments and interest recognition. FY25 production is expected near 250,000–260,000 tons, with expansion and improved realization supporting the outlook.

Ladies and gentlemen, good day and welcome to the earnings conference call of Indian Metals and Ferro Alloys Limited. This is your host. 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 have a question, you may press star and one on your touchtone keypad. Please note this conference is recorded. I now hand the conference over to Mr. Abhishek Sawan from Mesa Reputation. Thank you and over to you, sir. Good evening, everyone. We warmly welcome and express our gratitude to each one of you for being a part of today's earnings conference call for Indian Metals and Ferro Alloys Limited. I am Abhishek Sawan, your host for this session, and it brings me great joy to guide you through the proceedings as we analyze the annual financial results for the quarter and full year ended 31st March 2024. We are glad to announce an excellent operational performance during the year, the highest ever ferrochrome production, chrome ore raising, and captive power generation, which has set the stage for a strong financial performance. This achievement has come despite all external challenges, and it further solidifies IMFA's position as India's foremost fully integrated manufacturer of ferrochrome in the metals and mining industry. While the detailed financial results are available on our company website and the stock exchanges, it is essential to note that our discussion may include forward-looking statements, contingent upon known and unforeseen risks, uncertainties, and various other factors. To offer a comprehensive overview of our annual financial performance and address any queries you may have, we are honored to have an esteemed team members of our management team present today. Mr. Prem Khandelwal, CFO and Company Secretary. Mr. Bijayananda Mohapatra, Chief Operating Officer. Mr. Deepak Mohanty, overseeing the Ferro Alloys business unit. Mr. Binoy Agarwalla, who heads the Power business unit, and Mr. Sandeep Narade, who is in charge of the Mines business unit. Our agenda for today begins with a concise summary of our Q4 as well as annual financial performance. Following that, we'll open the floor for a Q&A session, providing you with the opportunity to engage directly with our management team. Without any further delay, I now hand over the call to Mr. Prem Khandelwal, our CFO and Company Secretary, to guide us through the financial highlights. Over to you, sir. Thank you, Abhishek, and good evening, ladies and gentlemen. I welcome all of you to this Q4 and fiscal 2024 earnings call of the company. Fiscal 2024 has been very satisfying year for the company in the sense that we have achieved the highest ever operational performance in terms of ferrochrome production, power generation, and mining output, and has been the second-best year in terms of tax. Financial numbers and concall numbers are already in public domain, so I am not going to repeat those numbers again. But I would like to clarify just one item, one off item, which is in the fourth quarter of the year relating to Utkal Coal Limited. As you may be aware of, the company had invested INR 111 crore in share capital of Utkal Coal and had advanced a loan of INR 243 crore to the company for a coal mining project. But, on the principal amount of INR 243 crore, the company had stopped recognizing interest since the date of commencement of coal block in 2014. But, in fourth quarter, the Nominated Authority has quantified the compensation amount of INR 353 crore, consequent to which the company has recognized interest on this INR 243 crore in full amount from 2014 to 2024, and the interest amount comes to around INR 220 crore. But as the compensation amount of INR 353 crore is not enough to cover the entire principal and interest amount along with the interest, the balance amount of INR 221 crore has been written off, which is forming part of other expenses, and the interest component of INR 221 crore forms part of other income. Apart from that, all other fees are normal fees. With that, I will now request to start the Q&A session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, you press star and one on your 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. The first question is on the line of Ashutosh from Molecule Ventures PMS. Please go ahead. Thank you for the opportunity. First of all, I would like to thank the entire team and congratulate the entire team for excellent set of numbers in a globally very tough environment. To start with, my first question is, in Q4 consolidated P&L, we have seen an increase in other income by roughly around INR 50 crores compared to the usual range. Can you please specify what led to this increase in other expenses? Other expenses, you are talking about consolidated account or Yes, consolidated other expenses. Consolidated other expenses, we have usual, like repair and maintenance has gone up by INR 12 crore because of boiler repairs and furnace repairs were done. That is one kind of expense. The selling expense has gone up by INR 6 crore, primarily because of more ferrochrome we have sold in this quarter. There are routine overhead cost estimation of around INR 10 crore, and there is a write-off of goodwill. As I said in my opening remarks, we have written off the investment of INR 111 crore in UCL. There was a goodwill amount of INR 21 crore also lying in the consolidated account, which we have to write off. If you put all this together, then you will get the figure. Got it. All these items wouldn't be, for example, goodwill write-off and like this, wouldn't it be part of exceptional line item? Saunak, why have we done that? Can you explain that? So finally, this is on the basis of a routine expenditure, and when you have a clear impairment, those back fees, whatever was our investment amount that we had in the standalone financials in UCL, then we also put a note that about INR 111 crores we are providing for impairment. On the same logic, on the goodwill which has been created in the consolidated financials has to be also written off as part of the other expenses. And we cannot treat it as an other exceptional expense. That is why we are keeping it in the normal course of business. Got it, sir. Sir, my second question is that our EBITDA, what will be our EBITDA production cost for quarter 4, and how do you expect it to pan out in quarter 1? Just a moment. Let me see. EBITDA cost. EBITDA cost for Q4 is around INR 60-INR 65 a ton. I think Q1 it should be in the same range, more or less in the same range. Similar. But sir, we have seen coking coal has been correcting significantly in the last six months, and met coke is also expected to be corrected in the similar fashion. What was our coke cost in quarter four, and what is the coke cost in our inventory? Deepak, would you explain that? Yeah. Actually, our coke cost, it is something like, in Q4, it is around INR 15,500 around. Okay. Which was, in the previous year, if you consider, it was something like INR 22,000, INR 23,000. So it has come down quite a bit because of the downtrend. Our existing coke, whatever we have, what we are using at the moment, so that is more or less in line with this. But it is, as you are telling also, prices have come down. We have coke for what will be fixed in the next quarter, I mean next quarter in June. Those prices are coming down and- Quite a bit. Going ahead, of course, that will take three months to dawn all those things. Actual usage will be after maybe four to five months. But still our coke cost for the next quarter will be hopefully the same price. Okay. But Q2 onwards, we can expect a significant decrease in coke cost. In Q2, no. It is remaining more or less in line as of Q2. Q3, it will go down. So roughly, for how many months we hold the coke inventory, sir? Yeah, we keep around three months inventory because it comes mostly from Colombia. It has a shipping time of 65 days and packing the material for shipment, all those things. Normally we keep the inventory for three months. Got it, sir. Okay, sir. I have other questions. I will come back in the Q&A. Okay. Thank you. Thank you. The next question is from the line of Shubham Sethia from Bajaj Finance. Please go ahead. Mr. Sethia, you are now unmuted. Please go ahead with your question. Sir, what was the specific consumption of the coke in Q4 and overall FY? Vinay? Sorry, I didn't hear. What is the question? Sir, what was the specific consumption of coal for Q4 and then overall FY? Overall technical is coming around 1.01 in AAG per megawatt. And sir, specific consumption of coke for the case of ferrochrome production? Basically, for ferrochrome, it is around 450 to 500 kgs of fixed carbon is required. So you can say 0.5 or 0.6 is to take from the fixed carbon basis, 0.5 to 0.6 tons per metric ton. Okay. My next question is on the power cost. So what was the integrated power cost for Q4? Q4, you are asking for FY 2021? No, for Q4 FY 2024. Power cost, variable cost is INR 4.37. And fixed cost, sir? Sorry. Fixed cost. Fixed cost is around 130. 1.3, sir? 130. 130. 130, sir. And for quarter 1, what we are expecting, sir? We are expecting variable cost will be around 424 to 425. Okay. Fixed cost will be at par with Q4. My next question is on the realization side. We saw a very good realization for overall Q4, then for FY 2024. What is our forecast for Q1 and CP in terms of realization, sir? You mean net realization? Realization, sir. Market has improved a little bit after Q4, so I think we can see an increase of around INR 3,000 to INR 4,000 for Q1. So total realization around? This quarter it was around 102,000. So we may see 105,000, 106,000 in this quarter. Okay. Thank you, sir. That is all from my side. Thank you. Thank you. Our next question is on the line of Roshan from Seven Seas. Please go ahead. Sir, going back to our last concall, you told that construction of boundary wall for Kalinganagar Project could not be started due to some administrative issue. So now what is the status of this Kalinganagar land? When we are going to start the boundary wall construction? Vina, would you answer that question? Yeah. Regarding this Kalinganagar Project site, there is a R&R issue, compensation issue. The IDCO has already given the disbursement process started, and they have initiated the distribution. But in the meantime, election has already started. They will give this dispersed families after the election, so mid-June. Thereafter, this process will be started, construction of boundary wall. Will we safely start? Because there won't be delay on this side after monsoon we'll be able to start the process. No, no. This administration will help us for the construction because of the election, they don't want any law. Right. Okay. Now one more question about this ethanol. What is our annual capacity in liters per year? How many liters we can produce in a year from this ethanol? Sir, this project we have putting is around 120 kilo liter per day. Basically, it is from waste or from rice and damaged grain. So it will take 300 working days. Yes. So production capacity, what about production capacity? Production capacity, 120 KLD. Okay. 120 KLD. And how many this tons of rice grain we need for one KLD? This is not rice, sir. We are more talking about some maize. So it will be basically maize-based, because that area maize cultivation is too much. Okay. That one. That will be exact figure I have to check, sir. Okay, thank you. Right. Thank you. Thank you. The next question is on the line of Saket Kapoor from Kapoor and Company. Please go ahead. Namaskar, Pranshub. Namaskar to the team members. Namaskar, Prateek. As you alluded to the other participant about the other expenses for this quarter, which is to the tune of INR 162 crore, that includes INR 21 crore of the royalty, the goodwill cost. Goodwill, yes. Other than that, sir, the remaining 20 is also a non-recurring one, or what should we take into account for that remaining balance 20? Again, as I said, the INR 12 crore is repair and maintenance, and this is again non-recurring. But INR 6 crore of selling expenses is because of higher tonnage. That is recurring in nature. Okay. Other overheads of INR 10 crore is again non-recurring in nature. And that last point, sir? Other overheads of INR 10 crore is again a one-off kind of thing. Okay. That may not repeat again. Okay. When we look at your note number 7, note number 6, rather. Therein you have proposed about some acquisition of 52 lakh shares of UCL. If you could explain the nature of the transaction, how much we will spend to acquire this 21% stake? As you are aware of, IMFA holding 79% stake in UCL. Our balance 21% is held by some other company. We are in the process of merging UCL into IMFA. We have been advised that if you make UCL 100% subsidiary, the merger process will be much easier. Okay. That is what we are trying. UCL, since the value is nil, we are buying the 21% remaining stake at INR 1 to make it 100% subsidiary, then we will launch the merger scheme. Right, sir. Sir, when we look at the segmenting reporting, therein, we find that under the mining category, on a revenue of INR 139 crore, we have booked loss of INR 110 crore. Are these all goodwill and all these issues that are captured into the segment under mining? How will you explain this, sir? Sanjay, are you aware of that? Yes. Over there, what usually happens is that all the cost towards mining, everything, including whatever is the expenses that has been incurred for raising as well as mining, is actually shown under the segment. But if you go into the captive consumption, only those if you have sold outside are considered, otherwise, whatever is the value of transfer, that is accounted there as a revenue, and that is what is given to our FA business, our ferrochrome business. So on a standalone mining, it shows a loss because the overall, all the costs which have been incurred in the mining are booked under the mining cost. Okay. So this is only one-off for this quarter only. Every quarter we are booking revenue in this trajectory of INR 130 crore, and the profit is closer to, loss is closer to INR 1 crore. But only for this first quarter, we are seeing this loss rising to INR 110 crore. So that was my only reason. Even last year also, It is actually dependent upon whatever we regard as mining and dirt as planned to our ferroalloys business. So that can differ quarter to quarter, depending upon whatever is our production plan. These are the extraordinary charges. It is a significant number, INR 110 crore for the year as a whole. No, it is a repeating cost for you. Right. Sir, when we spoke about this ethanol project, what is the Capex that you have outlined for the project, and when will we start spending on the same? DM? The project cost is around INR 130 crore. Now we have applied for the single-window clearance to the government of Odisha, and as well as we have applied for this environment clearance to MoEF. We have this one hearing on 13th May. They raised some concerns. That also we have replied. Hopefully, we will get the EC by next month. After that, this land belongs to us. Then we can start the land preparation, all these things. Simultaneously, we will go for the project execution. When will be any timeline, when will be commissioning this project? This will require around 12-13 months. 12-13 months. On a Capex of INR 140 crore, what should be the expected output in 1 lakh 20,000 liter you mentioned, I think so. Kilo liter. No, sir. There is a 120 KLD, which is called kilo liter per day. Per liter, I think. Got it. So at today's value of ethanol, what should be our optimum revenue at full capacity? Sanjay? Yeah, sure. So it is what you correctly mentioned. It is 180,000 or this is equal to 150 KLD. And in that, cost of INR 1 crore, which particularly will be related to our own land. So we will not get a single payout on that. So overall investment will be somewhere around INR 100 crore-INR 110 crore. And on this, owner, we are Achieve what kind of revenue turnover? Turnover will be somewhere around once we achieve that 150 KLD, it will be around INR 200 crore-INR 220 crore to start with. But it will depend upon the market price. It can increase. Right. The margins are also in double digits, sir. This product is because I think the OMC will be placing the product. OMC is controlling off take, sir. OMC are the controlling authority? Yeah. Right, sir. Last point is on the tax provision part, sir. We find that there is a higher tax outgo. Any prior period item also we are seeing or what could be the reason that the profitability is definitely higher, so what is our tax rate currently? Tax rate is 25%, Akshay. We have gone for new regime. Tax rate is 25%. I don't think it's very effectively high because of high profitability, it appears high. Correct, sir. Yeah. Right. Just to conclude, employee benefit also includes the director remuneration from commission also. That is the reason why it has gone up. No, it has gone up because of the normal increments as well as the commission also, because higher profit, higher commission. I see. Okay. We would also like to thank the board for the increased dividend payout and also the commitment which Pandar sir alluded to during the television interview, where he did anticipate the fact that he will be sharing the payout with his investors as has been the case of the precedent being. So we are really grateful to the team for agreeing to this fact and rewarding their shareholders in the best possible way. And this has already been the management priority to reward the shareholders wherever possible. Correct, sir. And we have acted on the same path sir. Thanks. Thank you, Panduranga ji, and thank you to all the team members. All the best. Thank you. Thank you. The next question is from the line of Sachin Wadhwa from Proficient Investment Advisors. Please go ahead. Can you tell us what the production and sales number was for March quarter, and what would you expect for FY 2025? Production for March quarter is 65,000 ton, and sales is 68,000 ton. What are you planning for next quarter? Next quarter will be slightly lower because we had some maintenance during between, which we started from March and completed in May. Between 62,000 and 100,000 at Choudwar and 100,000 at Therubali. That will be slightly around 62,000 maybe, in that range next quarter. For the full year, what will you project? We are expecting around 252,000 to 260,000. As usual in that range. 62,000 to 65,000 for a quarter, is that what you are saying? I think normally 250-260 in that range, around 250 would be it because we had some maintenance in the initial part of the beginning of the year and all. Taking that into which was, which happens normally after 5-6 years. So there was a little. That will little reduce, cannot go to the decent level probably, but it will be in and around 250 probably. Okay. All right. Great. Thank you. Thank you. Thank you. The next question is from the lines of Ashwith Vaidya from Molecule Ventures PMS. Please go ahead. Thank you for the opportunity, everyone. My question is, PM margin pressure is visible globally, even on large South Africa-based miners like Merafe. What is the situation exactly in China right now? Given that they don't have captive ore, what sort of margins do you think the non-integrated players over there would be making? Do you expect it to improve? Let me answer. So actually, Chinese market, in fact, their ferrochrome production has gone to 770,000 per month, which was in the range of 600,000 to 650,000. Their LHP production also accordingly has gone up there. Only thing, China now, they have a strategy to operate at very low margin and have higher efficiency and higher operational ratios. So which is going on. Their domestic demand also is not very bad, but only the problem is real estate sector, for which the government has given certain declarations that they will buy out and lend out this real estate. If really that happens, things will become better. Otherwise, at the moment, the situation is quite steady. Demand, supply are matching and going on, and things are not. It's not going to go up further at the moment unless government actually means it. Otherwise, it is more or less stable and in the range of around 98%-99%, which is the level is workable for most of the people. Got it, sir. And sir, on Aminda basis, Aminda production basis, we will be more profitable than Chinese miners. Right? Is that correct understanding? Absolutely. Okay. What sort of chrome ore inventory is currently present in Chinese ports, the small ports there? Yeah. It is around 2.6 million to 2.7 million tons, which is mostly 60 days consumption. 60 days consumption only. The inventory looks to be quite on the lower side of the spectrum compared to the usual. Little bit delay in shipments and restrooms, which is delaying the whole thing, but nowadays probably they are maintaining in that range. Does this mean whenever Like earlier, 3 million, more than 3.5 million. They were in the range of 2.1 million tons, I think. What I am telling, that is at the ports. Ports, there will be some inventory in the plants and all. Both stock-wise also, now they have gone up from 2 to 2.1 million to 2.7, 2.8 million that they are maintaining at the moment. Given that whenever the demand improves in China, does this low inventory mean that price increase will last for a longer time until they actually procure the ore again from South Africa and convert it into ferrochrome and provide the supply in the market? You see, if the demand goes up, naturally prices will go up. Chinese are trying to maintain a low margin both in ferrochrome and also in stainless steel. Rather, some de-stocking took place, which has brought the stability in stainless steel, particularly de-stocking. So they are maintaining that as a strategy. That's why they don't want to take it high and then bring it down similarly, like which was happening earlier. Nowadays, they are operating with low margin at all places, but maintaining operational level of 90%. Sure. Got it, sir. My next question is regarding the upcoming CapEx. As we have already announced the INR 1,500 crores of CapEx, I just wanted to know how the fund outflow is expected to be spread over the next five to seven years. If you want year-wise breakup? Yes, roughly year-wise breakup. I understand it exact can't be laid down at the start of the project. Yes, because that will be difficult to give that year-wise. But since it is spreading over a period of six to seven years, we are quite comfortable at submitting it to our internal approval. Exactly. Okay, got it. Yes. Except for smelter, the entire mining Yes. can be spread out. So in a single year, we won't require any significant amount. Yes. Even smelter also will be spread over a period of 18 months. What is the current status of EC, environmental clearance regarding this 1 metric ton enhancement? EC has been recommended for grant of EC. I think within a month's time, we should be getting it. For chrome ore enhancement? Chrome ore enhancement, already we have got EC for Mahagiri from three lakhs to six lakhs. We have already got six, and we have produced the last quarter. For Sukinda also, we have got EC for six lakhs, enhancing from three lakhs to six lakhs. Mining EC has already been achieved. Yeah. We cannot sell this as a merchant miner, right? This enhanced chrome ore. Up to 50% of that we can sell, but as a policy, we don't do that. That's why we're adding more furnace capacity. Got it, sir. And sir, given that we already have a robust balance sheet with INR 300 crores of net cash, also expecting around INR 250 crores as a final settlement from UCL, and we are already generating INR 400 crores to INR 500 crores of annual cash flow, which is sufficient to fund the announced CapEx of INR 1,500 crores as mentioned by you. My question is that in the past, management communicated of further expansion beyond this 1 lakh metric ton capacity. So any concrete plans have been laid down on those parts? No. As of now, beyond that, we have not planned anything concretely. Because any expansion will be along with the ore output. Without ore, we cannot expand the furnace further. Got it. But sir, we are meaningfully increasing our ore. At the same time, we are increasing our furnace capacity only by 30%. No. As of now, you see, whatever extra ore we are going to get, maybe after 12 to 18 months, by that time this furnace will come up on operation also. Then in the next stage, when we are doing the further ore, then we will plan the furnace. But that we are very initially now. No concrete plan from that side as of now. Got it, sir. All the best from- Thank you. Nice to see you. Thank you. Thank you. The next question is on the line of Shubham Sethia from Bajaj Finance. Please go ahead. Hello. Hello. Sir, our annual production for the year was around 2.6 lakh tons. With adding this 1 lakh tons of capacity, this year output will be in the same range only, right? 2.6 lakh tons? Yes. From the next year onwards, we can expect like 18 months of CapEx time for that matter. We can expect half of the capacity at least from the next year onwards, right? With April 2027, we can expect that capacity to be operational. My next question is again on the cost side only. For the overall production in Q4, what was our specific power consumption? What? Specific power consumption? Can you please repeat? Power consumption is around 4,000 units. Sorry, sir? 4,000 units per tonne of ferrochrome. 4,000 units. Okay. You are welcome. Thank you, sir. The next question is from the line of Anant Mundra from My Country Capital. Please go ahead. Hello. Good afternoon. Thank you for the opportunity. Sir, just wanted to seek a clarification. You mentioned the current EC limit is 1.2 million tons already. Is that correct? No, that's EC, we have only 1.2, 6 lakhs from MMC and 6 lakhs from Sukinda. Okay? After EC, we have got the 6 lakhs production from Mahagiri, but 6 lakhs from Sukinda, it will take 6 to 7 years. Okay. Right now you are producing mainly from Mahagiri, is that okay? Actually, we are doing this mining from Sukinda, that we are restricting to 3 lakhs. That right now, underground operation, we are restricting those stocks. The rest incremental everything we are doing from Mahagiri. The Mahagiri operation CTO, the consent to operate, that we have got up to six months. Okay. Currently, Sukinda is restricted to 3 lakhs and Mahagiri will ramp up to 6 lakhs. Yeah. That is correct. For requirement, which are under foundation. Once we have to do the phase II expansion of Kalinganagar, at that point of time we will explore expanding Sukinda to 6 lakh. No, no. Of course, that 1 lakh will require around 2.5 lakh ore. So 9 lakhs sit there. 3 lakhs from Sukinda, 6 lakhs from Mahagiri. Okay. So Sukinda will not go beyond 3 lakhs. That's a correct answer. Because already from both are underground operation, we have to reserve the ore fresh. Okay. All right. Thank you. That's it from me. Thank you. Thank you. Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead, sir. Hello. Small point. You mentioned that for this quarter, for Q4, we have some overhead and exceptional expenses in the overriding part, and that we have booked for this quarter and the volume risk we will see in the next quarter. This is what you have communicated. Those are mostly- Yes. Yeah. Those are overhead expenses, and it has nothing to do with the volume, Saket. Volume will be more or less fixed around 60,000 tons every quarter. Okay. No, sir. When we look at Q4 numbers, the production number there is at 65. We are looking at a lower volume number. This is also not a monsoon quarter. So it will happen later on. So for Q1, we are expecting production in the range of 62,000. And for that, the expenses will be different. I was just trying to understand whether we have booked the expenses in March quarter or it will have the bearing again in the first quarter. I think, basically, something will be major equipment and other stuff when we shoot and book in the March. Something also will come in April. So for some amount. But the production will be mostly in the level of 63,000. Okay? Mm-hmm. Right. 63,000 should be our tonnage for the first. Yeah, tonnage wise for this quarter, FY quarter. Okay. Our realization, as Prem sir you mentioned, are currently strengthening up by 3%-4%. As of now, we are 45 days into, I mean 2 months into the quarter. So the realization should it be, spot prices are up by 3%-4%, that is what you alluded to? INR 3,000-INR 4,000 is per ton. Per ton. That is the spot prices? Yes. Okay. If you take, sir, the EC, the package sale that we take on the quarterly run rate, that we book every quarter, what is that trend there, sir? No, I did not get you, Saket. Can you repeat again? Sir, we also have a contracted price index that is set every quarter. Where is that index currently? What is that indicating? Sir, basically you are talking about the benchmark. Benchmark. Right, sir. I missed the word. Benchmark price has gone up in this quarter by 8% from 144 to 152, sir. Okay. And that benefit you will get in the Q1 realization in terms of the contracted volume? You see, we will get benefit laterally for that. We think it will go up, and the things what Mr. Kanjilal has told that it is increasing. Taking all those things into account will be 10, 3,000-4,000 in the average realization. Okay. But only benchmark will be, we will be selling less than what Q4 have been. Q4, which is the highest at 60,000 to 68,000. As the production will be around 63,000, naturally the sales projection is also at the same rate. We do not have really stock to operate, to build the stock. Already last year we had done, so we are at the minimum stock. That is the level what we are expecting. Right. Sir, our mining lease, for which year when will they expire or the renewal come? Mining lease up to 2049 and 2055. Okay. Right, sir. Thank you once again. Thank you. Thank you. Yeah. Thank you. The next question is on the line of Joe Shah from Seventy9. Please go ahead. Deepak, I understand that, from June onward, South Africa, they will stop announcing the mainstream price. What will be the impact on the pricing? How will you be able to decide on the price? It is a big impact, just that one single summer purchase of this month. Yes. People are working out. Working out has to work out with people because that was a good base to start negotiation with, but which will not be there. Right. Eventually things will take a look. There are many other indices like your CRU, customer X, and many other things are there. It has to be dealt with individual customers how to bring in certain, whatever the way for the negotiation and moving ahead. Yes. Of course, everybody, including Glencore and all, they are working on that. Okay. A lot of issues were there. Obviously, they have now stopped it. Anyway, the things start to change and change are being managed well. We will be doing all those things in the coming days. Right. Deepak, one more thing. I need your views on macroeconomy, because now our future for infra, we predicted it will be dependent on the ferrochrome price realization. We are talking around 1,000, 2,000, 3,000, something like that. People are talking about a Fed rate cut in maybe 6-9 months into the current. Will it increase the demand for commodities and spend that in ferrochrome? What is your view? You see, I just attended ICDA where FMR presented a paper where particularly for stainless steel sector, they are expecting around 4% growth. Even the ISSF have told also there will be 3.6% hike in stainless steel consumption. We are expecting, which is at 50 million stainless steel worldwide production, that to reach 59.5 million tons this 2024 calendar year. I do not think there will be much issues at the moment. People are changing. I think it will not. China trying to bail out their residential real estate people. If it happens, it will be more or less steady. They said it, then it will increase the demand for stainless steel beyond our target. Consumption will go up. It is generally believed that if Fed rate cuts, consumption will go up and You see, China is producing more. They have to have the opportunity to sell. Europe, particularly Germany and many other places, are not in very good state economically. Right. Inflation, de-inflation and interest rates and everything. Right. With all those things, the expert people are, even with the negative sentiment, they are telling that consumption is expected to grow around 3% to 3.5%, which is according to me, is really good. Okay. If that remains, things will not be favored. Okay. Thank you. Thank you. As there are no further questions, I now hand the conference over to Mr. Akshay Dhawan for closing comments. Over to you, sir. Ladies and gentlemen, your presence on this conference call today has been greatly appreciated. We have had the opportunity to explore IMFA's future growth strategies and discuss how we plan to navigate through these challenging times. Our optimism for the growth journey ahead, not only within India but also in other regions, remains steadfast. On behalf of the company's esteemed board of directors and dedicated management team, I extend our heartfelt gratitude to each one of you for your active participation in today's call. Your interest and insightful questions have been a valuable contribution to our discourse. Should you have any further inquiries or require additional information, please do not hesitate to reach out to us. Or you can contact my colleague, Aryan Rana at aryan.rana@salitasconsultation.com. We remain at your service to address any queries you may have. Once again, thank you for being a part of this conference call. We eagerly anticipate a promising future and a continuous growth together in FY 2025. Wishing you all a fruitful and productive time ahead. Thank you. Thank you. Thank you. On behalf of Indian Metals and Ferro Alloys Limited, that concludes this conference. Thank you for joining us, and you may now disconnect.