Ladies and gentlemen, good day and welcome to the Jindal Steel Limited Q1 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Mr. Parthiv Jhonsa, Vice President from Anand Rathi Share and Stock Brokers Limited. Thank you, and over to you.
Thank you, Steve. Good afternoon, everyone, and thank you for joining us today. We at Anand Rathi are pleased to host Q1 FY 2027 earnings conference call of Jindal Steel Limited. I will now hand over the call to Mr. Vishal Chandak, Head of Investor Relations, to introduce the senior management and initiate the proceedings of the call, which would then be followed by question and answer session. Thank you, and over to you, sir.
Thank you very much, Parthiv. Ladies and gentlemen, a very good afternoon. Thank you very much for joining us on a Saturday afternoon to discuss the financial results of Jindal Steel for the first quarter of FY 2027. Joining us on today's call are members of our senior management team, Mr. Damodar Mittal, Wholetime Director. Mr. Debojyoti Roy, Executive Director, Raigarh. Mr. Biju Nair, Executive Director, Angul. Mr. Sunil Agarwal, Executive Vice President, Finance. Ms. Roopali Mehra, Head of Sales and Marketing. Before we begin, it gives me immense pleasure to introduce three distinguished members who have recently joined the company's leadership team. Firstly, I'm delighted to introduce our Managing Director, Mr. V.R. Sharma. Though he needs no introduction, let me begin by saying Mr. V.R. Sharma is a distinguished industry leader with over four decades of international leadership experience across the steel, power, metals, and cement sectors.
A mechanical engineer with an MBA from the College of Applied Science, U.K. He has held several leadership positions across the industry. Mr. Sharma previously served us as the Managing Director of Jindal Steel Limited from 2019 to 2022, and before that as the Deputy Managing Director and Chief Executive Officer of the company from 2010 to 2014. He has worked with several steel companies in India and abroad during his long tenure of more than four decades. I'm also delighted to introduce Mr. Rajiv Kumar, Chief Operating Officer. Mr. Kumar is a highly accomplished steel industry leader with over 35 years of experience spanning operations, manufacturing, project execution, and business leadership. A metallurgical engineer from BIT Sindri, he brings deep expertise in integrated steel operations, product development, operational excellence, and the successful execution and scaling of large manufacturing facilities.
Mr. Kumar served as CEO of the aluminum business of Vedanta prior to joining Jindal Steel. He has also had a distinguished career at Tata Steel in various leadership roles. Lastly, I am equally pleased to introduce Mr. Sandeep Modi, our Chief Financial Officer. Mr. Modi is an accomplished finance leader with over two decades of experience across the metals, mining, and power sectors. A chartered accountant and a Masters of Commerce, he possesses extensive expertise in corporate finance, business strategy, treasury, taxation, commercial operations, capital markets, investor relations, and M&A, among other critical areas. He is an all-India rank holder in his chartered accountancy examination and has received numerous recognitions for excellence in finance leadership. He was previously the Chief Financial Officer at Hindustan Zinc and has spent more than 20 years with the Vedanta Group before joining Jindal Steel.
I request you all to please join me in welcoming Mr. V.R. Sharma, Mr. Rajiv Kumar, and Mr. Sandeep Modi. I will now hand over the floor to Mr. Sharma for his opening remarks. Over to you, sir.
Good afternoon, ladies and gentlemen. Thank you, Vishal, for the introduction. My name is V.R. Sharma. Full name is Vidya Rattan Sharma. I have more than four decades of experience in steel and metal industry, and a privilege to lead Jindal Steel once again. I was the Managing Director in the year 2019-2022. You have seen that it was a great comeback by JSPL under the leadership of Naveen Jindal-ji during that tenure. I am again delighted to be part of this company and part of wonderful team what we have today. When I look around the teams at Angul and Raigarh, it reinforces my belief that we are building not just world-class assets in terms of plant and equipment, but also a world-class organization driven by exceptional and outstanding professionals who the company has chosen from different fields and different companies.
I welcome you all to Jindal Steel's Q1 FY 2027 earnings briefing. Thank you all for taking out time on weekly off, that is Saturday, to attend this particular meet. Let me begin with a brief overview of the global macroeconomics landscape. As you all know that the world has been passing through a very critical geopolitical situation. For the last four years, we are seeing that Ukraine and Russia war is going on, which has shattered the economy, which has shattered not only the economy in Europe, but everywhere in the world. Now, for the last one year, there is a big fight in between America, together with Israel and Iran. This has also created a lot of problems for the whole world. The economy has dwindled. The fuel prices have gone up.
The steel consumption per se at the moment, that is stable or little with a downtrend. There is always a light after the end of tunnel. We are seeing that in times to come, or very soon, there will be a solution to both the problems, both the wars which are being fought in between within Europe and also within Middle East. The moment these two wars are stopped, then we are looking a great opportunity for the steel industry to come back and to supply steel worldwide. I would say that it is a good future which exists today. In India, the RBI projects GDP to grow at a rate of about 6.6% in FY 2027. Despite near-term uncertainties, India continues to remain the fastest-growing economy in the world, supported by strong domestic demand, sustained capital expenditures, and stable macroeconomic environment.
Domestically, the steel industry witnessed seasonal softness. This always happens especially in the monsoon season during this quarter. India's crude steel production declined by 6% on a quarter-on-quarter basis to 42 million tonnes, while finished steel consumption declined by 7%, that is about 41.5 million tonnes. Globally, China has announced a significant policy reset focused on capacity swap reforms to strengthen supply discipline. We believe this is a positive development and could accelerate much-needed supply-side reforms. In the Chinese steel industry, especially. Today we are seeing that in China, the capacity reduction is about 50 million tonnes - 60 million tonnes, whereas the demand has gone down by 100 million tonne. This has created a little surplus in the international market, but I'm sure the moment these two geopolitical situations or the war, this is settled, then everybody will find its place in the international market and the domestic market.
Steel is not only in the form of steel, it goes outside. This also goes in the outside in the form of machinery, plant, equipment, vessels, pressure vessels, and many more semi-finished and finished equipments. China has been doing export of lot of plant and machinery. I'm sure once the world settles down in terms of toward the peaceful solution of these two wars, China will again come back to supply more and more equipment, plant, machineries. There will be good room available to the Indian industry to export steel to these nations and also to the adjoining countries. In the domestic market today, we are seeing that HRC prices have increased sequentially and remained firm throughout the quarter. While TMT, that is the T bar prices for the construction steel, they opened with a strong note, but after that, the demand came down.
During this particular monsoon season, yes, it always happens with the construction activities, they are slowed down. We are very much confident that in times to come, say from end of August onwards, when the monsoon is receding, the country will come back with again construction boom, supported by Government of India and especially the Indian bankers, in terms of extending loans and funds for the capital infrastructure as well as for the construction industry. We feel a very good future is offering today. As far as Jindal Steel Limited overall plan is, I would like to highlight that today we have a strongest team available. The strongest team consists a Mr. Rajiv Kumar. He's a veteran in the steel industry. He has a background of more than 35 years. He worked with Tata Steel, and also he has worked in Vedanta as a CEO.
We have Mr. Sandeep Modi. He came from Vedanta, and he is a chartered accountant with masters in commerce. He has joined us as a CFO, brought a very good experience to lead the financial sector, financial team, and to deal with the numbers, basically. We have very good team around in the form of we have recently hired a CHRO, Mr. Pasricha. He has come from IndiGo. Prior to that, he has also worked in many other companies like Airtel, et cetera. That team is in place. We have Ms. Roopali as head of marketing, who is with the company for the last many years, more than 20 years. She will be taking care of the complete sales and marketing. In a nutshell, I would say that the team is already in place.
We have two very senior directors who are there in the plant. One is Mr. Debojyoti. He's heading the Raigarh plant, who hails again about 30 years of experience, and he also come from Tata Steel. The other gentleman is Mr. Biju Nair, who was with ArcelorMittal, and he also has more than 30 years experience. He is heading the Angul plant. Similarly, the people at the other segments, specifically the domain, they are all highly experienced, talented people. I'm sure that the team will deliver much better results in times to come. I'm lucky to have such kind of team, and I'm lucky to lead such kind of team from front. Finally, we are committed to bring the company to a different scale in times to come. Our first and foremost focus is that we should reach to the 100% capacity utilization.
This is the first point. The second point is we want to reduce our cost, because once you increase capacities, with the economy of scales, we reduce cost also. We have a very strong team, as I told you, led by Mr. Rajiv Kumar -ji, and he is heading the complete operations. His specialty is how to control the costs with the best of best opportunity available today. I think we'll be in a position to control the cost also, which will add to the NSR, add to the EBITDA. The next is, we already discussed with our bankers. We have negotiated very good rate of interest, very good means the lowest one. The financial cost, borrowing cost will also come down in times to come. This what Mr. Sandeep Modi is on it, and he is doing it.
As far as the inventory is concerned, we are well within the limit. We have less than 10 or 11 days of total production as an inventory. Which is, I would say, very lean and best in the industry available today. The product mix what we have, that is one of the best in the world, I would say, because we are the only company who makes long products, flat products, and the specialty flat products like plates and the quenched and tempered plates. We make plates, about 2 million tonnes today in a year. We are going to increase it to about 2.5 million tonnes. Plate is a very basic requirement for any capital goods industry. We have a state-of-the-art hot strip mill, which we commissioned last year. This mill can produce about 5.5 million tonnes hot rolled coils in a year.
That too, value-added grade of coils. We are not in the race of putting more and more hot strip mills or more and more commodity mills. We are here to utilize our mill to the best of its technical expertise and the technical capabilities and produce more and more value-engineered products than a commodity product. After that, we are the only company today in the private sector who produces rails. Fortunately, today, out of the 22 metro rails in the country, at least 18-19 metro rails, they are already buying rails from us. These are called hardened rails. Nobody else supplies these rails to the country. In a way, it won't be much adult to speak that we are 100% supplier to the Indian metro rail services in the country, hardened rails, which is a specialty of ours.
We produce round billets, which not many people produce in the world. These round billets are specially used for rail wheels, basically, the forging of the rail wheels. Government of India is putting a full effort so that we become self-reliant, Atmanirbhar in rail wheels, the railway wheels. We produce round billets, which only one more company produces in the country. This is a great business in terms of consumption and also for seamless pipes and tubes. This is another product, which is a wonderful product. Over and above, we have the products like sheet piles, which nobody does in the country today, and we are the only people those who are doing it. And then some of the specialty angle irons, which heavy section angle irons, which we do.
The purpose is that wherever we have the technical superiority and the product mix superiority, those products are to be manufactured on top priority so that this can add value to our system, which can add value to the bottom line, and this can also be treated as value-engineered product. Thanks to Government of India, Government of India has given a full focus and trust on the defense industry. What we are doing, we are producing today the specialty plates which are tailor-made for the defense industry, especially for the submarines, for the warships, for the oxygen storage, for the nitrogen storage, for the hydrogen storage. These are the specialty steel products.
Our aim is to keep on adding more and more specialty steel products, not only through this normal plate mill, but there's a next process called, that is, heat-treated plates, that quenched and tempered plates. These plates used to be imported in India. Now Government of India has given a instruction, and I would say it has banned these kind of products coming into the country. We are thankful to Government of India. As far as some imports are concerned, yes, there is a concern. The flat products, which is I say as a commodity. Because hot rolled coil is a commodity today. The hot rolled coil, since it is a commodity, yes, many players in the country, they import hot rolled coils, especially through the advance licenses. When they bring against the advance license, they export also.
Basically, it doesn't affect the overall scenario in the demand and supply. Yes, it is better if they can also utilize the Indian products, the Indian hot rolled coils, not only as a specialty hot rolled coil, but as a commodity coils. Whenever the prices or the imports are affected, they are reflected as a commodity hot rolled coils. Whereas we are fully insulated from such kind of products because we are the value-engineered and value-added products.
In a nutshell, I say that the company's future is excellent, and the team is excellent in place. There had been some ripples in past, but today, with the grace of God and with the decision taken by Board of Directors, we have brought the gems in the organization, and I'm sure the company will publish and we will see that the results are coming, and our journey to reach to 100% capacity utilization with minimizing the cost level, et cetera, everything, we'll be in a position to be again, a very vibrant company. Though we are vibrant today also, but it will be much more vibrant in times to come. Now, I stop my speech. Thank you very much for listening me very patiently. In case of any question, me, myself, and my team, or my other colleagues, they'll be happy to answer your queries.
Thank you very much. Now I'll request my colleague, Mr. Modi. He will address the meet. Thank you very much. Mr. Modi, over to you.
Thank you very much, Sharma-ji. Good afternoon, everyone. I'm delighted to join Jindal Steel at such an exciting phase of its journey. Over the past few weeks, I have had the opportunity to interact with our teams across the plant locations. What stands out is the exceptional quality of our people, the speed of decision-making, strong capital cost discipline, deep adoption of the theory of constraints, and the growing use of AI and digital tools to improve operational and financial performance. Jindal Steel today has one of the strongest integrated business model in the Indian steel industry, supported by world-class assets, captive raw material resources, disciplined capital allocation, and a clearly defined long-term growth strategy. The successful commissioning of our expansion projects has further strengthened this platform and positioned us well for sustainability and profitable growth.
As I assume this responsibility, my priorities will remain maintaining capital discipline, improving return on capital employed, strengthening cash generation, preserving one of the strongest balance sheet in the sector, and creating sustainable long-term value for all shareholders. With that, let me provide you with a brief update on our financial performance for Q1 FY 2027. Consolidated revenue sequentially was around 8% down. It was largely due to the sales volume resulting from the plant maintenance shutdown, as Mr. Sharma has said. This was partly offset by around INR 7,500 per tonne improvement in our average ASP, that's the average realization, supported by stronger steel prices and the richer product mix. The share of value-added product has increased from 61% in Q4 2026 to 66% in Q1 2027.
As our newly commissioned downstream facilities continue to ramp up, we expect the share of value-added products to increase further, enhancing both profitability and resilience across commodity price cycles. Despite a 15% sequential decline in the sales volume, EBITDA remains resilient, reflecting the strength of our product mix, higher realization, and disciplined cost management. Consolidated adjusted EBITDA stood at INR 2,667 crore. Consolidated adjusted EBITDA per tonne increased by INR 1,843 per tonne, taking it to total to [INR 1,197] per tonne. This improvement was driven by increase in ASP, partly offset by a $23 per tonne increase in coking coal consumption cost, which is in line with our guidance of $20-$25 per tonne of coal, and the lower fixed cost absorption due to lower volume sequentially. Finance cost charged to the P&L increased to INR 548 crore, primarily due to the capitalization of the major expansion assets during Q4 2026.
Consequently, interest costs related to these assets are now being recognized through the P&L account for the first full quarter. These assets include the 1,050 MW captive power plant, BOF 3, CRM, and other associated facilities. Similarly, depreciation expenses increased during the quarter following capitalization of these newly commissioned assets. Consolidated profit after tax for the quarter stood at INR 854 crore. Our balance sheet remains one of our key strengths. Net debt stood at INR 15,927 crore, translating into a net debt to EBITDA ratio of 1.71x. With the ongoing ramp-up of new facilities and continued focus on the cash generation, we remain confident of achieving the ratio below our stated threshold of 1.5x during Q2 2027 and continue to have with over the commodity cover the cycle, reinforcing our position as one of the strongest balance sheet in the industry. Our capital allocation continues to remain disciplined.
Against our FY 2027 CapEx plan of approximately INR 8,500 crore, we have invested roughly INR 2,000 crore during Q1. Cumulative spend under our expansion program now stands at INR 37,457 crore out of the announced of INR 47,043 crore. Overall, I would say as we enter the second quarter, our financial priorities remain unchanged, driving profitable growth, maximizing return for our expanded asset base, maintaining disciplined capital allocation, generating stronger free cash flow, and preserving our balance sheet strength. We remain confident that this priority will support sustainable value creation for our shareholders over the long term. With that, I will now open the floor for questions.
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Amit Dixit with Goldman Sachs. Please go ahead.
Yeah, hi. Good afternoon, everyone, Thanks for the opportunity. First and foremost, I would like to welcome the entire leadership team, It's great to have Mr. Sharma at the helm again, Mr. Modi, and of course, Mr. Rajiv Kumar. My question to Mr. Sharma would be, sir, last time when you were there, we went through debt reduction. The deleveraging happened during that time. Also the ramp-up in the blast furnace, the first blast furnace at Angul. Now, when you are there the second time, what would be your key focus areas? Let us say three to four focus areas that you might have thought of. If you can quantify them as well, that would be great. Also, any thoughts around further expansion at Angul in terms of crude steel capacity? That is my first question.
Thank you very much. Thanks for remembering the previous dialogues long back. There's a reminder to me what is to be done. You asked the question, I'm replying you one by one. First of all, now the main focus is on the capacity utilization. Like for example, we have 15.6 million tonnes of capacity already installed as the crude steel making capacity. How to reach to 15.6 million tonnes? This is one. Now 15.6 million tonnes, our team, myself, we are not going to convert this 15.6 million tonnes in a commodity. Commodity means just making rebars or making hot-rolled coils. We are not interested in that. We want to do something new, something different. Of course, rebar has to be produced as rebars, except for some corrosion-resistant steel or something like that.
As far as the hot-rolled coils are concerned, we are not pushing our mills to produce a product which is non-value-added grade product. We want to fetch the best of the best market, We want to sell this hot-rolled coil not as a commodity, but as a product. That is our next focus. My colleague, Mr. Rajiv Kumar, had been in Tata Steel, He has developed more than 500 different grades in Tata Steel, which are truly value-added grade steel. Now the agenda is how to utilize his skill and how to make all those grades which are available in the world, They are treated not as a commodity, but treated as a value-added product or value-engineered products. The total capacity today, as I told you, 15.6 million tonnes, that is installed crude steel capacity.
There are some gaps, because we are not going to make 15.6 million tonnes in the current financial year. We are going to end somewhere about 11 million tonnes or 11.5 million tonnes. Where is that gap of 3.5 million tonnes? You will ask the question maybe today or maybe next year. I'm replying you right now. What we are aiming for, that we will be, because we are short of metallic today, we will be bringing metallics in the form of HBI, DRI, and also in the form of scrap. We will utilize our assets fully so that we can reach to the level of 15.6 million tonnes as we have the crude steel making capacity.
From our own internal resources, means internal blast furnace and electric arc furnace, and also DRI, existing DRI, we can reach to maybe 11.5 million tonnes, and with the honing or with the readjustment of the blast furnaces as far the capacity is concerned, we may even reach to 12.5 million tonnes. The focus area three. One, make only value-added products. Two, how to reach to 15.6 million tonnes with a step in between, with a ladder. That step is 11.5 million tonnes then 12.5 million tonnes, and maybe 13 million tonnes. That will be done from the existing resources available, existing blast furnaces, electric arc furnace, and DRI, that we can increase the production there. The next question you asked me that what is the next future? What are the expansion plans or something like that.
As I told you, we have a strict formula. Last time also, if you remember, I used to speak E & I, earn and invest. We have decided that, the management has decided that we will be working only on earn and invest. We are not going to burden our balance sheet with the borrowings. We do not want to take loans. We don't want to borrow the funds to expand in the commodity area. We will expand, we'll do all those expansions which are required in the value-added products, value-added steel, value-engineered products. For that, if any investment has to be done, we will do. We don't want to be a part of glut. We want to be a part of specialty products where people come to us, buy goods, they are happy, we are also happy.
Our focus is, myself, my team, everybody's aligned on that we want to grow, not at the rate of tonnes, but at the spending rate of about INR 7,000 crore-INR 8,000 crore or maybe INR 10,000 crore per year. How many tonnes will be, that I cannot tell you today, because if it is value-added product, maybe tonnes are less. Our aim is spend management. We have a budget to spend whatever the earnings we have. We are sure we'll be having, God is kind on us, we'll be having much more earning than this. Part of that earning we'll be spending on the CapEx. Wherever we feel that we are tight, we will not spend on CapEx. We are not in a race of 30 million, 40 million, 50 million, and every morning we get up and we declare the project.
We are not in that. We want to utilize the hard-earned money in the best way, and my colleague, Mr. Modi, will definitely keep a check on this that we don't spend extra anywhere. Extravaganza is not done. These are the long-term plan for all of us, and this is what we have taken an oath, or you can say, this is the commitment that we do not want to add commodity capacities. We want to be only and only and only value-engineered products. And for that, we are going to spend about INR 8,000 crore-INR 10,000 crore year-on-year basis. Hope I answered you. Thank you.
Thank you, sir. Very elaborate answer. The second and the last question I have is on the current blast furnace utilization and when we can ramp it up fully, and the status of slurry pipeline. That's all from my side, sir.
Yes, please. We have two blast furnaces in Angul, and we have two blast furnaces in Raigarh. And we have 10 DRI plants in Raigarh, and we have one DRI plant in Angul. And then apart from that, we have electric arc furnace in Angul, and we have three electric arc furnaces in Raigarh. This is the overall setup. Now your question is the new blast furnace. There's a state-of-the-art new blast furnace, which we have imported, and a similar blast furnace was commissioned just about 10 months ahead of us by Tata Steel. Though Tata Steel took about five years to complete that blast furnace, thanks to our team, the project team, and thanks to the overall guidelines given by Naveen- ji, our chairman. And we could reach that with the commissioning time, we could do in, say, 28-30 months time.
This is a great achievement. And this particular blast furnace can produce up to 13,000 tonnes per day hot metal. We have already reached to 11,000 tonnes per day. Our plan is that after this monsoon season, we'll be in a position to ramp it up to 12,000 tonnes per day. By end of December, we'll make it 13,000 tonnes per day, which will be 100% capacity utilization. Now, you may ask question that why 10,000 tonnes, 11,000 tonnes, then 12,000 tonnes, and why monsoon season, and then 13,000 tonnes? Because during monsoon season, there are certain challenges. Like for example, about a week back, there was a very heavy rain, and this rain was more than 100 mm in one or two hours time. This has disrupted the complete water management and also this has made the failure of the electrical grid and electrical system.
These kind of hiccups, they do come when we are passing through a very rough weather. It is like flying in a rough weather. I think by August 10th, the monsoon will recede, and from September, we'll start ramping up. Our team, led by Mr. Rajiv Kumar and by Mr. Biju Nair, and our ED Project, Mr. Damodar Mittal, they are the expert of steel making, iron making, and everything. They are committed to bring it to a level about 12,000 tonnes in the month of September, and 13,000 tonnes by December. The blast furnace number one is doing again extremely well. The capacity is 10,000 tonnes per day, but we are doing about 11,000 tonnes per day from that plant also.
Put together, 13,000 tonnes per day from the blast furnace number two and 11,000 tonnes per day from blast furnace number one, total will be 24,000 tonnes per day. Team is all on it, and we are sure that 24,000 tonnes of hot metal we'll be doing every day from these two blast furnaces in Angul. Already 4,200 tonnes from one furnace and another 2,600 tonnes of the furnace number one in Raigarh, that is 6,800 tonnes. That is being done under the leadership of Mr. Debojyoti, who is the head of our Raigarh plant. That is at 100% capacity utilization. If you see put together, the Raigarh at 3.6 million tonnes is stable, and when we have 24,000 tonnes of hot metal, this will give us 24,000 tonnes of steel also, because whatever the yield loss is there, that will be substituting by scrap.
Maybe 24,000 tonnes- 25,000 tonnes per day steel we'll be making. The export will be from our DRI plant, which is at 5,000 tonnes per day, and the another electric arc furnace. Put together, our aim is to reach to a level of about 27,000 tonnes steel making after the monsoon, finally we'll reach one day to 30,000 tonnes steel making. This is where we will be seeing that we are crossing the capacities. Put together, 3.6 million tonnes from Raigarh and our aim is 9 million tonnes from Angul before we add the scrap or we import the HBI or DRI. This is what our overall plan is. Hope I answered your question.
Yes, sir. The slurry pipeline status. That was the last one.
Sorry, clarify?
Slurry pipeline.
Slurry pipeline status.
Yeah, sorry. I missed that. Yeah. Slurry pipeline, I'm pleased to inform you that it is all set end to end. The slurry pipeline is laid. Trials are going on. There are some special trials. We call it a pigging. Pigging means a real pig made of metal. It is passed through. Then we'll call our collaborators and the technical equipment suppliers. They are from Germany. Then we will take a trial, first by water and then by slurry. End-to-end, everything is in line. Hopefully, you will hear this news very soon, maybe in first half of August. We'll commission it. Once it is done, it is 20 million tonne plant and 20 million tonne capacity. This 20 million tonne capacity means this will reduce the overall burden on the logistics.
Once this is done, then the load on local transportation will be reduced substantially. Now, today we are aiming maybe in the first half of August, but if the rainy season goes on and there is some problem, then this may delay also, but that is not in our hands. These are uncontrollable factors in life. End-to-end line is laid, end-to-end pump house receiving station is made, end-to-end communication is in place, and the equipment, the pumps, trial, et cetera, are already done. Maybe if too much of rains, then maybe end of August. In a nutshell, this quarter which is going on, the quarter of July, August, September, hopefully, with the grace of work, we will give good news to the nation. This is the longest pipeline perhaps in the country and the largest capacity.
18 million tonnes is the capacity with 60% of FE and 35%-40% of water. If we can manage with less water, say about 30%-32%, then this can even go to 20 million tonnes. It depends upon the water and the iron ore ratio because it depends upon the iron ore's specific gravity density and how iron ore behaves in a particular pipeline because we are going to buy iron ore from the outside parties also. Thank you very much. Hope I answered this time.
Thanks a lot, sir, and all the best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question comes from the line of Alok Deora with Motilal Oswal. Please go ahead.
Hi. Good afternoon, and a warm welcome to the new management and best wishes ahead. Sir, just had a couple of questions. First is on the NSR movement. If you can just indicate what's the pricing like now versus the 4Q average and versus the 1Q average, and where do we see the prices moving for the second quarter? If you can just indicate on that because we have seen a sharp correction in the long prices. Just your thought on that, please.
My colleague, Roopali Mehra, will answer you, and in case anything else required, I'll come back. No problem.
Sure.
I'm here with you.
Sure.
Roopali, over to you, please.
Thank you. Hi. Thanks for your question. As we all know, steel works in a manner which is kind of seasonal. Currently if you look at the flat prices for HRC, we've only looked at INR 800 per tonne lower pricing vis-a-vis quarter one 2027. If you look at TMT, we are looking at almost INR 8,000 on the index. As I said earlier, this is a seasonal weakness which should recover from monsoon.
Sure. Thanks for that.
Is it okay? Anything else?
Yeah. No. Just wanted your thoughts whether we could see further correction or this should kind of settle because it's been a pretty sharp correction in the long steel. That was the question actually.
Yes, actually, this season it happens, but fortunately, we are insulated to a great extent. Why? When the TMT prices go down, we start increasing production in the other areas. The segments, because we have multiple segments. We produce nine different products. If one product is little weak, then definitely we can find a place for that material to be sold to the other channels. Yes, you are right. The monsoon season, it is very less construction. This also brings a lot of opportunities in future. Though I should not be happy on it as the very situation is because one cannot say on this, but there are opportunities. Like if you have a lot of floods, then more construction is likely to come in future.
If there are no floods, but still there's a waterlogging, then the government, they spend a lot of money so that next year there should not be any waterlogging. That means more steel, more cement is going to be consumed in times to come. This is recoverable. We can recover it.
Got it. Also on the coal cost, if you can just indicate the coal cost for 1Q and what is the coal cost assumption or guidance for the second quarter?
I'll tell you. The coal is basically, there are two different things. I think you are discussing coking coal or you are discussing-
Right. Coking coal. Yeah. Coking coal.
Coking coal is again a demand and supply. Today we are seeing that maybe $15 will be the total increase. $15, INR 1,500 in coking coal. It also depends upon the Chinese factor. What is China factor? If the Chinese consumption or Chinese steel production go down, then immediately coal prices also come down. Yes, you are right, there is a pressure in India because most of the steel mills in India, they are through the blast furnace route steel making, so they are buying a lot of coal. Nowadays, more than coal, people are importing coke. If you see the data in last three to four months' time, the Indian steel mills, they have imported a lot of coke from Indonesia and from some other different countries.
Yes, $15, you can factor it, but we will see that how we can minimize the cost in terms of blending it properly. The coal is available, it is also available in different forms. Different blends are also available. The blast furnaces are very capable and flexible in using different coal. We'll try to blend it so that we are not out priced in the market. This is what we feel.
Sure. Just last question, sir. Volume, based on what we have done in the first quarter, the full year guidance remains the same of 10.5 million tonnes- 11 million tonnes of sales volume in FY 2027?
Yes. You're right. We are at the same. We'll maintain the run rate, rather we'll increase the run rate because we have taken the shutdown in the quarter one.
Right.
Why we have taken the shutdown? The shutdown, basically it is not in our hands. We see that how many heats we have taken out from a particular vessel, like BOF vessel. The BOF vessel gives a heat life of about 9,000 heats to 10,000 heats. Whenever it is more than 9,000 heats, we have to stop it to avoid any puncture in the vessel. Otherwise, that will be a disaster, so there's no safety bypassed. We found that in this last quarter, we had to take a shutdown because we produced more number of heats in less number of time. That means, because it depends upon the number of heats, where each heat is 250 tonnes. You can say about 2.5 million tonnes, 2.2 million tonnes if you produce, then we have to change the refractory.
The refractory timing came in this particular first quarter. We cannot wait for the second quarter. We had to do it. This is how we are going to do in future. Now we have four, in Angul, if we are discussing, we have four melt ports, I would say, very simple language. One is electric arc furnace, then there was a BOF-1 , which is existing since 2011-2012. Then we had two more ports. These are called BOF -2 and BOF -3, basic oxygen furnace two and basic oxygen three. These two are very new. We commissioned one six months back, and the other is again about six months back before March we did it. These two ports are pretty new, so their 10,000 heats or 9,000 heats will take more time.
Till that time, we don't have to take any shutdown. I'm sure we'll be in a position to recover whatever 300,000 tonnes of hot metal loss we have done in the quarter one, that we will recover in the subsequent quarters.
Got it. Yeah, that's all from my side, sir. Thank you and all the best.
Thank you.
Thank you so much.
Ladies and gentlemen.
Any other question?
Yes, sir.
Any other question left? I don't want that some of the colleagues say that I have not answered. We can sit for another five minutes, no problem. If there's any question, you please ask.
Yes, sir. Ladies and gentlemen, in the interest of time, I would request you to please limit your questions to one per participant. The next question comes from the line of Amit Murarka with Axis Capital. Please go ahead.
Yeah, hi. Good afternoon and welcome back, Mr. Sharma. Just the first question on NSR movement in Q1. How much was the movement in flats and longs, and was there sale of metallics that you did in Q1? Could you just specify that?
Sale of metallics, we have not done in the Q1. Whatever metallics sometimes we produce also, that is for in-house. It is consumed. The another point what we always see that a ratio in between price and cost. The steel prices, they go up, go down, and within a gap of four to six weeks time, you find that if the prices have gone up, the input price also increases. That band is only available four to six weeks time. Losing or gaining. Sometimes we say that the prices are going up, whereas the input prices are not going up. That band is also for about four to six weeks. Sometimes you feel the prices are going down, but the input cost, that has not gone down. That particular window is also for four to six weeks time.
This is a normal behavior of steel business. Yes, you are right. INR 1,000-INR 4,000 was the reduction in different products. Not in the products like rail, rounds, specialty angle channels, beam structures, heavy duty structures, the prefabricated structures, and the specialty plates, the value-added plates, quench and temper, it was not there. I would say by and large, yes, we took a hit in terms of TMT, and whereas we could maintain and retain the price in the other segments. The price change, if you see the per metric tonne, that was ranging around INR 5,000 a tonne.
Sandeep here, just to conclude the NSR movement in case of the flat was around INR 7,000 per tonne, in case of long, around INR 4,500 per tonne. I think that's what your question on the quarter-on-quarter basis is.
Longs was up, you mean INR 4,500 per tonne?
Yeah. All are up.
Everything was up.
All are up.
Okay. Thank you, sir.
Please go ahead.
Mr. Amit, I would request you to please come back in the queue for further questions.
Yeah.
The next question comes from the line of Jashandeep Singh Chadha with Nomura. Please go ahead.
Hello. Thank you for the opportunity. I hope I am audible. First of all, I say welcome to the team and welcome back, Sharma-ji. My first question largely directly to Mittal sir and also Sharma-ji. Given that the industry typically benefits from stable leadership and long-term management tenures, these relatively frequent changes in the senior management team stands out from Jindal, right? Should investors be concerned about the impact of these transitions on strategic continuity and long-term value creation? How do you ensure that execution against your long-term objective remains unaffected? This is my first question for you.
Sorry, I missed your basic question. Can I request you to kindly repeat?
Yes, sir. Largely, the industry normally benefits and industry is known for long tenure, stable management, there have been frequent changes at the top level at Jindal. Should the investors be worried about the impact of these transitions on strategic continuity and long-term value creation? How are you ensuring that all the long-term objectives remains unaffected despite these changes that are happening, sir?
Thank you very much. As far as the movement of senior persons, yes, it is always an area of concern. We must see that why the people take a change or move. Many a times it is a personal decision by an individual. We have 30,000 people working in the organization, I would say. The top level we call CG 1 or CG 0. If you see that there are only 20 people. We have very strong upper middle and also senior management team, up to vice president level. We don't find any movement there. Normal attrition is always acceptable as per the industry standard. It is not a problem, some people they do retire also. At the senior positions, yes, they are very vital resource and they drive the business.
They come to the organization to take the decisions. For that, we have an advisory board also, we always put some tasks to advisory board to advise us at that time and if there is a need. Advisory board also guide us time to time. I agree with you that the movement is frequent or more, that is a question of concern, we are addressing it. This is the reason today you are seeing the board has brought at least eight new faces. Out of these eight faces, I would say two are the old faces, me and Roopali. Six are the new persons, those who have come at a very senior level, right from CFO to CHRO to our Vice President HR. They have come. We have our COO for the entire operations.
He has come from Tata Steel, Mr. Rajiv. We have Mr. Biju Nair from AMNS, not AMNS, I would say ArcelorMittal and Europe. He came from there. We have a very senior person, Mr. Debojyoti Roy. He has also come. He's a big strategist as well as the plant manager, so he's heading the Raigarh. We have also brought some people in-house from our other group companies. Like we have brought people from Oman, we have brought people from Czech Republic, they are at a level where they head their domain. We are confident that we are a stable organization since at least 1,800 - 2,000 people are in the upper middle level team. These people is a very strong force, strong team. They do it. They are the doers. They are very much stable.
I'm sure my colleagues and myself, we will put full effort so that we can make the company of our dreams so that people, they stay here for longer time. Yes, unless there is some personal issues of someone that I cannot comment. Aim is to give the stability, and you will see that the team is stable. More than that, 1,800 people, those who are in the upper middle management level, say from manager to GM or assistant vice president or vice president, they are pretty stable. They are the force which drives the organization. Hope I answered you.
Thank you, sir. Our next question comes from the line of Sumangal Nevatia with Kotak Securities. Please go ahead.
Good afternoon. Best wishes to the new management team. Sir, my first question is on the cost. If you see quarter-on-quarter, there's a very sharp increase in cost, almost INR 5,500. If you could break up into top three, four areas of increase. For the next quarter, we heard about coking coal, but overall, how should we see cost shaping up in the next one or two quarters as a lot of startup related costs will start receding? Then also if you can give the update on the coal mix today. When is Utkal B2 expected, and when do we expect to commission the DRI 2 plant? Thanks.
My colleague, Mr. Modi, will speak to you.
Hi. If you see this from the cost perspective, I would like to give full breakup so that you understand it better. There was this iron bearing cost increasing around, say, INR 500 per tonne. We had a Middle East conflict impact around $12-$13. Coking coal cost increase, as I said, around $23 per tonne. There was operating leverage on account of the plant maintenance shutdown, which has a lesser production on a quarter-on-quarter basis. That is roughly around INR 2,000 per tonne. That put together, the cost increase is there, which has been translated as the overall quarter-on-quarter cost increase. I hope I'm able to give you what it feels so.
Yes. Thanks, Sandeep. Just wanted to know how do we see these cost items shaping up in the next one or two quarters?
As Mr. Sharma has already said that from the coking coal cost point of view, while there will be a $12-$15 cost increase is expected. However, given the scale of economies and the better production, which we will get into the Q2, given that last year Q2, there was a shutdown, which now has been there because of the refractory life in the Q1. With that production increase, the operating leverage, which was around INR 2,000 per tonne in the Q1, that should not be there. Of course, Middle East conflict impact, I think that's still going on, so we need to be watchful about it. Put together all these things, we should be able to have a better cost structure in the Q2, given the scale of economies and a better production and no plant shutdown.
Thank you, sir. Our next question comes from the line of Rahul Gupta with Morgan Stanley. Please go ahead.
Hi. Thanks for taking my question. Let me just continue on the previous question. What kind of cost savings can we expect from the management over the next couple of years with all the initiatives that may play out, whether it is coal mine commissioning, DRI plants, slurry pipelines, conveyor belts? Also you talked about in your opening remarks that you are having renewed relationship with financial institutions. What kind of interest cost savings can we expect from here on? Thank you.
One of the key cost saving will come from the slurry pipeline, which I think we have already told in the market about INR 700 per tonne benefit. That, as Mr. Sharma has said, is coming to the Q2 that you should see a saving. I'm talking more about the compared to this quarter. Second is, as I said earlier in the earlier question about this operating leverage, that will also help us to reduce the cost. We already have, this time, a coal mix of our own captive mines around 50%, and that will also go up with the Utkal B1 getting ramped up and Utkal B2 coming. That will also help us to reduce the cost. We also have good news to share about the startup of the first loading at the Jindal port, which also has started, and that will also give us savings.
I will not be able to quantify at this point of time, already two vessel has been unloaded and one vessel has already start, is going loading as we speak to currently. That will also help us. Put together all these things, I think we're in a really right shape to get the better cost structure. Even in the case of iron ore, we are going more and more backward integration. Last quarter, we were around 16%. With this currently, we are around 28% in this quarter. A full year basis, we should be around 40% as an exit basis. That will give us also a strategic benefit in terms of the cost structure.
No, I understand that. That's what we are trying to understand, what kind of quantified benefits that may come up maybe by year-end or over the next two years. I'm not talking about next quarter. What could be the benefit that may come over the next two years is what we are trying to understand.
I think, this is Vishal here. If you look at our, while we cannot give you the individual project-by-project cost savings right now for two reasons. One, obviously, the savings will grow through the quarters, and at the full ramp-up state, they would be at a different level. Secondly, if you look at our capital allocation framework, where we have clearly mentioned that we will deliver about 18%-20% ROCE, and you add the nominal depreciation back, you get the guided or our desired better from these projects. From that, you can obviously back calculate what is the kind of run rate that we are expecting from these projects.
Thank you, sir.
So-
Yes, sir, please go ahead.
We extended the time for our friends because we are meeting after a long time. 15 minutes we requested to the organizer to increase. That if the questions are repeating, I will request please don't repeat. If it is a new question, you are welcome to ask. In case the time is short, you can also write to Mr. Vishal, and he can reply on behalf of management. Now, is there any other question? If there is, we can start.
Yes, sir. Our next question comes from the line of Ritesh Shah with Investec. Please go ahead.
Hi, sir. Thanks for the opportunity. Sharma-ji, glad you are back. Thank you so much. Sir, just two questions. I think I'll just take the Rahul's question. I'll just follow it up. We heard Vishal's answer. Sharma-ji, if you could put some number on the cost savings. Knowing you definitely would have some number in mind, say over next two years, three years. If not possible to bifurcate between iron ore, coal, port assets, slurry pipe conveyor. Any headline comments with some quantification will definitely help. That's one. Secondly, at the Jindal level, there has been a lot of announcements, MOUs with different states, including thermal, nuclear, steel making. How should we look at that in conjunction with the capital allocation framework that we already laid out? Thank you.
Very good. Thank you for remembering me. Yes, I'm also glad to interact with you once again. Two questions. One is cost. There are two costs. One is cost per tonne, the other is the cost impact in terms of incoming material or input cost. We have today three specialists sitting in this meeting Mr. Rajiv and Mr. Biju Nair and Mr. Debojyoti. They are not only fast bowlers, they are the all-rounders. They are the batsmen. Their main specialty is how to keep cost under control. We cannot control the input cost like my colleague Sandeep told, that today there's a war situation, tomorrow where the crude oil will reach, where the coal prices will reach. We are unable to address that because that is out of our hands or uncontrollable factors.
Iron ore is also uncontrollable for us because NMDC and OMC primarily decide the prices. That is also uncontrollable. What is controllable? The controllable is electricity cost, electricity consumption, oil consumption, coal consumption, coal consumption in the blast furnace, oxygen consumption, then how to avoid wastages, how to increase yield. Today the yield is 98%, how can we bring it to 98.5%? Because even 0.5% plays a very vital role. For this, all these three specialists what we have today, perhaps they are the best team available today in the country who can work on this particular cost reduction campaign. They have already taken it up. I think there is a chance of, roughly figures, I'm not committing something, but roughly, because I had to talk to my colleagues also, at least INR 1,000 per tonne reduction is possible in terms of cost.
This is what we will strive at. As far as the input cost is concerned, like oil, coal, coking coal, basically the energy in any form, that will be difficult to comment because these are uncontrollable factors. Your next question was on MOUs. Yes. As you know, we entered an MOU as a management with the Government of Jharkhand. We are existing in Jharkhand since 2006, and there is a plant called Patratu. 2006, we took over it from Birla Group, and that was a rolling mill. We scrapped those old rolling mills, and we put two state-of-the-art new rolling mills we commissioned in 2010. These two mills are still existing, and one of the mills is for wire rod and the other mill's for the rebars and rounds also. We can make rebars, we can make rounds.
Nowadays, for example, rebar is not a preferred product, we are making rounds. Rounds gives us another value addition of INR 5,000-INR 6,000. There, we have land about more than 300 acres, we can immediately put up a plant of 3 million tonnes. What we told to Government through the MOU, that if you make the environment, which is truly suitable or which is truly supportive to the investments, we have to add just a steel making behind our mills. It is not a full project. I would say it is half project. What is half project? We already have two mills, which can produce about 2 million tonnes easily, maybe more than 2.2 million tonnes.
What we will do, we will put a blast furnace of 2.5 million tonne-2.7 million tonne capacity, and we will feed these two mills from our own blast furnace. This is what we discussed with the Government of Jharkhand. For that, there is a condition. What condition or request we have made to them, that you please allocate us the iron ore. You support us getting iron ore from Jeraldaburu area, which is a rich iron ore block available there. Actually, we had been working in 2010, 2011, 2012, up to 2014 to start the Jeraldaburu mines, due to Environment Ministry, this was not allowed. We are now requesting to government that if you can support us getting us mines, either through auction or allocation, whatever way, we can definitely do this project. What we have to do?
We already have the finishing area, we have to put the backward area, there it is easy to put the backward area. We have the space available, land available, water available, electricity available, everything is available. If the government allows us to mine, or we get the iron ore from government, we can immediately put up this plant. This is what our condition is. It is an MOU only. We have not committed any investment till these requirements are met out. The moment these requirements are met out, we will come to a thorough calculation, we will discuss with our board, and we will see that how can we put up this plant and where from the funding will be done. We will be maintaining our mantra of E&I, earn and invest. We will not deviate from that.
We don't want to burden our balance sheet. Hope I have answered you.
Sure, sir. Thank you so much. All the very best. Thank you.
The next question comes from the line-
Any other colleague want to ask anything? We have another five to six minutes. If somebody is not given chance or doesn't speak something because of any reason, then kindly send a mail to Vishal. We will be happy to reply. If any one of you want to speak to me, again, speak to Vishal. He can arrange a WhatsApp call or a telephone call with me if any clarification is required. We need your support. We need your full blessings on this company, and we want to create a company of value, engineering company, I would say, to create wealth for the investors and to create wealth for the nation. I think no more question? Okay.
Yes, sir.
Operator, can we move on to the next analyst quickly?
Yeah. The next question comes from the line of Rajesh Ravi with HDFC Securities. Please go ahead.
Hi, sir. Good afternoon to the team. My question pertains to, you have already covered most of the questions relating to your cost-saving programs. Just a short-term Q2, when we are talking about 8,000 corrections in the longs prices and flats are also down INR 1,000. If the prices were to remain steady at current levels and given that the cost reductions and better operating most of the maintenance shut down now over, can we say that our cost reductions in Q2 versus Q1 will largely cover up for the loss in realizations and margins would largely be flattish at around INR 12,000 we were seeing in Q1?
I think we are going to make a perfect balance in between two. As I told you, whenever the prices are going down, slowly, gradually, in four to six weeks of time lag, we get the input cost also down. This is what is going to happen, but there's an exception in the monsoon area, like mid of July or up to August end. I think after August, this problem will not happen. I'm sure we will not be losing anything in terms of costing, and we'll be gaining, basically. As I told you, our aim is, Mr. Rajiv and his team, they already taken aim to reduce cost by INR 1,000 per tonne, and we will be in a position to reduce it. We'll be the ultimate gainer in terms of costs.
Just continuing on this cost, when you talk about INR 700 per tonne savings on the slurry pipeline movement of the iron ore. Sir, just if it starts operating at a full 20 million tonne utilization, on absolute basis, how much cost saving would that translate into?
This will be on a full year basis you are talking?
Yeah. Also full year basis.
Yeah, 1.5 million tonne slurry we'll transport per month. Say about 18 million tonnes a year, for example. We have the now capacity to consume this 1.5 million tonne. As I told you, that the reflection of this will come from September onwards.
No, that's understood.
Yeah.
Ravi, just to quickly add, this 18 million tonnes has been designed not to meet the current round of expansion, but also to meet our future round of expansions. We will not be consuming this entirely in the current year.
Okay. For next year, what sort of utilization you're looking at it, assuming it will be fully stabilized?
A very simple math I'll tell you so that you understand this point very clearly. We have one pellet plant today. Its capacity is 5 million tonnes-5.5 million tonnes or 6 million tonnes, this can produce. We are adding another pellet plant of 6 million tonnes, total will be 12 million tonnes. This 12 million tonne pellet plant means we can consume about 12.2 million tonnes- 12.3 million tonnes of iron ore fines through the slurry pipeline. After that, we are going to enhance our capacity of the sinter plant, and there'll be another sinter plant coming in. This sinter plant will be 5 million tonnes. Another 5 million tonnes will be consumed. Put together, 12 + 5, 17 million tonnes. This 17 million tonnes or 18 million tonnes, this is the math. Hope I have cleared you.
Thank you, sir. Our next question comes from the line of Pathanjali Srinivasan with Sundaram Mutual. Please go ahead.
Hello, sir. [inaudible] joining back. I have two questions. Firstly, our share of value-added products and flats have been going up very consistently. The only disconnect is how come our unit profitability is not showing that?
Repeat, please. I think it was not audible. What exactly you asked actually I'm not clear. May I ask you to reply?
Yes, sir. Am I audible now?
Yeah, better.
Yes, sir. Our share of value-added products and our share of flats on our overall sales has been increasing consistently. When I look at our EBITDA per tonne. That is not reflecting that. Could you explain what could be the one or two reasons for this?
Yes, I'll tell you. The share of value-added products, actually, I think you don't have the access to our product-wise EBITDA. That is different, basically. You get the EBITDA, overall EBITDA, but the product-wise, like quenched and tempered, what is the EBITDA? Plates, what is the EBITDA? Heavy-duty plates, what is the EBITDA? That is not published, basically. It is our internal document. Hard-hardened rails, what is the EBITDA? That is also not revealed in the balance sheet. Because it comes in the overall computation that how much is the total EBITDA. Somewhere we earn as high as INR 25,000 EBITDA, somewhere we earn only INR 7,000 EBITDA. The aim is today that 50% of the products are high EBITDA products, high NSR, high EBITDA, and the other 50% are the low EBITDA products.
Now we want to switch over from the other 50% with time. The 50% of low EBITDA, out of that, 30%, means, say 50%, if it is 4 million or 5 million, then out of that, 30% of that, say about 1.5 million- 2 million, will be on, again, high EBITDA products. This is called the value engineer or value-added products. This is what we are aiming, and our team is working on this under our operation head, Mr. Rajiv Kumar -ji. He is on it. His main aim is how to develop all those grades which are available in the world from our mill and the capacity what the mill is having, 6 million tonnes. Our aim is not to produce 6 million tonnes commodity.
Our aim is to produce at least 4 million tonnes out of 6 million tonnes as the true value-added steel, where we get much more value than what we incur to produce that product. This is what our aim is.
Thank you so much, sir.
Any other question, please?
No, sir. Ladies and gentlemen, that was.
Thank you.
Yeah.
Thank you. Thank you so much. We have few minutes only now. Over?
Yes, sir. That was the last question, sir. You can go ahead with your closing remarks.
Okay, last question please take.
Sir, I think we are running very much out of time.
Last question.
He said that was the last.
Yeah, last question please.
That was the last question.
That was the last question. Okay. Thank you.
I would request Sharma sir to give his closing remarks. Over to you, sir.
Thank you, friends. Ladies and gentlemen, thank you for listening to us very patiently. I'm interacting with you after a long time of four years, and it was a pleasure to speak to you, to interact with you. We'll be meeting more frequently, not only on investors' meet after the quarter. You are welcome to visit our plants. You are welcome to discuss with us. You are welcome to see what we are doing. You are welcome to visit our websites. I request you, please be part of this company as a partner, as an investor partner, and let us create an environment of positivity everywhere. This is my request, humble request to all of you. Keep us guiding.
Your questions, they always give us a strength, basically, and sometimes we feel that something we are not touching in our management side, from our management side or our operations. When you ask the questions, you all are the financial specialists, you know the numbers well, you can compute well, you can calculate well, you can understand well. When you convert your thoughts into numbers and numbers into actions, then this gives us a big support and this gives us a big strength to revisit our own working and correct ourselves if we are getting wrong somewhere. Keep on guiding us like this and keep on asking any kind of question where you feel that we need to be changed, or we need to make some amendment, alteration. Please ask these questions always. Not only at the investors' meet, you can always write also.
Write to Vishal, and this will come to our complete committee, our board, our senior person, those who are sitting in the present in this particular meeting, so that we'll take the corrective measures immediately. We take your feedback as a very healthy feedback, and this is how we can create value for the shareholders, and we can create value for the company and for the country. Once again, my sincere thanks to all of you, and namaskar. Thank you.
Thank you, sir. On behalf of Jindal Steel Limited and Anand Rathi Share and Stock Brokers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.