Full Year 2022 Jindal Steel And Power Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : You have sort of in the initial questions explained the EBITDA movement quarter-on-quarter. Would you be also be able to sort of explain us how the net debt reduction has been achieved during the Q4 and FY '22? And how do you plan to reach to 0 net debt status over FY '23? Vidya Sharma Nishant will reply you.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Yes. Would you be also sort of lay down a path to achieving a net 0 status. So how do you see the cash flow that will help us go down to the 0 status from here?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Right. And the debt number that we currently are indicating as of 31st May, is it after receiving the INR 3,000 crores of dues from the sale of -- cash from the sale of power business? Or that would be an addition to the -- that could also sort of support the reduction coming through?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Right, sir. And one more update in terms of the Kasia mine production. How is the production ramp-up going on? Is the target for -- target of 5 million tonne of production for Kasia mine still achievable for the year or would you be able a better it? Vidya Sharma We are on the line, and we will achieve 5 million tonne as per our -- the permission obtained by us.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : First of all, a very good presentation overall, which gives a lot of data from the presentation itself. Just a few questions from... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 31, 2022 / 6:30AM, JNSP.NS - Full Year 2022 Jindal Steel And Power Ltd Earnings Call

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Yes. Now it is clear?

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Sir, on the opening remarks, you said some export incentives have been removed. I understand that has happened 12 months back. Are you -- is there any new thing which has happened in the China or on a certain product category? Vidya Sharma Yes, it is a new thing. Day before yesterday, the government has taken the decision.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Okay. So this is over and above which happened a year back, where the all export rebate incentives were removed on majority of the products... Vidya Sharma I will share both the list with you. The earlier list and the exclusions in that list, those are covered now.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Sure. Sir, my second question was on -- earlier on the media interview, you were looking at EBITDA of roughly INR 18,000-odd crores in FY '23 on volume guidance, which you have given close to 8.5. So which works out to more than INR 20,000 a tonne, where the steel prices in India have been falling plus this incremental export tax. So where will that incremental EBITDA you think can come from, what kind of cost initiatives you think? What are the possible cost savings? Vidya Sharma You see. I will tell you. You see there are certain things which are always behind the curtain in terms of the strategies. So we can only reveal you a part of that. But we have a complete list that how to achieve the better numbers in times to come. So we are in a competition -- we are in competition, not only with the Indian companies, but we are in a competition with the world. So we have to have a certain secrets, which we cannot reveal today. But yes... Hello, can you hear me?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : I just wanted to understand, what is the current monthly production run rate and dispatch run rate from your Australian coking coal mine? And what is your target for full year, I understand we were expected to do about 100,000 tonnes starting March itself. And where are we in that position, right now? That's my first question. Vidya Sharma So we started with a very humble beginning of about 40,000 tonnes per month. Now we already reached the production of about 70,000 to 80,000 tonnes per month. There were some logistic issues in between, but I think business has stabilized. We could earn a positive EBITDA of more than $13 million last year, and this will increase further.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : 1 million tonne is what we intend to produce and dispatch to India or sell outside, whichever it be? Vidya Sharma No outside, no outside sell to JSPL.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : The reduction in iron ore fines currently in INR 2,000, and that translates to INR 4,500 gain, that's what you are referring to?

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : So the average reduction in coking coal consumption cost for this quarter would be about $25? Vidya Sharma Yes, that is in dollars. Consumption not in kg but dollars.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : No, I'm not comparing the JSW. I'm just highlighting that this is the general -- because Tata Steel also guided for a higher cost going forward. So

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Nishant, just to quickly come to the point, I'm just looking at the blended impact. That's it.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Fantastic. That really helps because of the impact of the coking coal captive mines, our cost is expected to be about $25 lower on a sequential basis. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 31, 2022 / 6:30AM, JNSP.NS - Full Year 2022 Jindal Steel And Power Ltd Earnings Call