Full Year 2025 Jindal Steel And Power Ltd Earnings Call Transcript

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

Question: Amit Dixit - ICICI Securities - Analyst : Yeah, hi, good afternoon, everyone, and thanks for the opportunity. First of all, great work on presentation. I mean, quite a few data points illustrated over there. I have a couple of questions. The first one essentially is on the, repetitive impairment division that we have been taking on Australian subsidiary. Now if I look at the utility of this Australian subsidiary, I mean over the last, 10 years it has practically done nothing. And it's like [salami slicing] every time that we take a little bit of diminution still around 5,000-watt colors of investment is left. So, I just wanted to understand the future of this. Will we ever get coal from here? It is under care and maintenance. What is the thought process on this subsidiary? Why don't we get out of it? I mean, once and for all take whatever provision is required.

Question: Amit Dixit - ICICI Securities - Analyst : So, my point is that you know whenever we took, any impairment it was always fully supported by the states, but, that particular goalpost has been a moving one. So, that's why I asked the question.

Question: Amit Dixit - ICICI Securities - Analyst : Okay, fair enough, sir. The second question is essentially on the working capital front now, very impressive working capital and locking that we have achieved, particularly in Q4, which normally is the quarter when we, achieve this kind of working capital and locking. 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call Now just wanted to understand the, broadly the initiatives that we have taken, whether the impact of such initiatives would also be visible in the coming quarter of the year. And also, what is the current finished product inventory with us.

Question: Amit Dixit - ICICI Securities - Analyst : Okay sir, thank you very much and all the best.

Question: Kamlesh Bagmar - Lotus Asset Managers - Analyst : Yeah, thanks for the opportunity, sir. Sir, one question on the part of, this which is mentioned in the note number five as well. So, this is related to, disposal of unappropriated inventory of shares, under that as all 57 lakhs of shares. So, it is mentioned that you have got the approval from SEBI to disclose those shares by May 31. So are we, sure that, it will be disclosed by May 31 or for the extension is likely from SEBI.

Question: Kamlesh Bagmar - Lotus Asset Managers - Analyst : So that would be in this month.

Question: Kamlesh Bagmar - Lotus Asset Managers - Analyst : Okay, and lastly, like, on the, yeah, a lot of appreciation for that guidance as well, but if I see the guidance like, if I see in terms of production, that your guidance on the higher side, it is 23% growth in terms of production while on the sales side it is not that significant. So, what is the reason for that?

Question: Kamlesh Bagmar - Lotus Asset Managers - Analyst : No, I was talking more regarding the gap in sales volume and production volumes, not on the guidance part.

Question: Kamlesh Bagmar - Lotus Asset Managers - Analyst : Okay, thanks. And lastly, how much was the charge sales volume in this quarter?

Question: Sumangal Nevatia - Kotak Securities - Analyst : Yeah, good afternoon, everyone, and thanks for this chance. The first question is on the Utkal B1 cobalt. So firstly, congratulations on getting the crucial mine approved. I just want to understand two things. One is, when do we expect mining to start, and, in the past we've kind of, maintain, guided that in year one we can ramp up very quickly to almost rated capacity. So, we just want to understand what could be the production. Say this year and next year, and I mean this is one of the mine which was one of the lowest bids I think around 15% if I remember correctly. So, what would be the delivered price of coal, from this mine to our plant.

Question: Sumangal Nevatia - Kotak Securities - Analyst : Okay, so we can, expect somewhere around 5 million tons production in the second half.

Question: Sumangal Nevatia - Kotak Securities - Analyst : Okay, on the delivered cost, I mean can you help us understand 15% premium what is the delivered price of this call?

Question: Sumangal Nevatia - Kotak Securities - Analyst : Understood. My second question is with respect to our sales and production guidance. There's a big difference of 1 million ton which, was asked earlier also. So are we expecting, I mean, I understand, the conservative, mindset, but are we expecting a build-up of inventory, because there's a significant difference between the two items. 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call

Question: Sumangal Nevatia - Kotak Securities - Analyst : Understood in just one last clarification, from this impairment losses, do we, get any tax savings, tax credit, and also there's a INR231 crore loss which was, INR231 crore one off in at the EBITDA level if one can explain what was that during fourth quarter.

Question: Sumangal Nevatia - Kotak Securities - Analyst : Yeah, thanks Mayank. I just want a man thanks. I just wanted to know what is the nature of this INR231 crores exceptional loss.

Question: Sumangal Nevatia - Kotak Securities - Analyst : Understood thank you and all the best to the team, yeah.

Question: Pratik Singh - DAM Securities - Analyst : Hi, congrats on a decent set of numbers. Just when, my first question is largely on the finished steel post expansion. I think the numbers earlier you hello.

Question: Pratik Singh - DAM Securities - Analyst : So, I'm not sure if you heard the question. So, I was referring to slide number five where finished we are saying is going from 7.25 to 14.45. This number earlier used to be 13.75. I'm not sure if I missed anything, but what's driving this difference here?

Question: Pratik Singh - DAM Securities - Analyst : Sure, am I audible now?

Question: Pratik Singh - DAM Securities - Analyst : Yeah. So, it's the. (inaudible)

Question: Pratik Singh - DAM Securities - Analyst : Let me come back in the queue then thanks.

Question: Raman KV - Sequent Investments - Analyst : Hello, sir. Can you hear me?

Question: Raman KV - Sequent Investments - Analyst : Sir, I just have two questions mainly related to the industry. So, recently, India has included 12% import duty for 200 days on Chinese steel export, but at the same time, the Chinese steel export prices have dropped, from the second half to now around 12% to 13%. So, what are the chances that the prices, Chinese steel prices, might still further drop and that will impact, you know. That will cross out the 12% duty. Impacting the Indian stell players.

Question: Raman KV - Sequent Investments - Analyst : My understanding is, they won't with respect to the sea prices there won't be any substantial decrease in FY26, and there will be a good chance of, upward movement of prices, right.

Question: Raman KV - Sequent Investments - Analyst : Okay, sir. Sir, I actually joined the session a little late, but can you just give me an overall overview of industry dynamics with respect to what are the current global skill prices and what are the iron or iron ore cost to for the company for this like the coming quarter and what is the cost for cooking coal prices.

Question: Amit Dixit - ICICI Securities - Analyst : Okay, thank you, sir.

Question: Pradeep Jain - Ambit Capital - Analyst : Hi, thank you. The first question, as a follow up to the first question I'm going to ask on Australian write downs, if I heard it correctly and in response, you mentioned, that there are various options being considered, just wanted to understand what broadly the option you, have on the table is one of the options also, for promoter interview take on these aspects, what options broadly. Are you thinking of because these assets have not been generating much cash for many years.

Question: Pradeep Jain - Ambit Capital - Analyst : Okay, so the second question on the CapEx additional CapEx we announced last quarter pertaining to color coded galvanized late, some group rates and all maybe can you provide more details of maybe timeline for some of these initiatives because you have the CapEx outline but how do we, what is the timeline for some of these additional things that you're looking for.

Question: Pradeep Jain - Ambit Capital - Analyst : Just, the all the new items that you discussed, last quarter, you think there could be some benefits from these in FY26 also.

Question: Pradeep Jain - Ambit Capital - Analyst : Okay, just one quick question. If you can freeze on coal, you would, acquired another coal mines, the earliest for coal mines and get together 15 million tons, and you've acquired more mines. Just wanted to understand the thought process because you're also going green, how much, I thought 15 was already enough. What is the strategy for acquiring more coal mines.

Question: Pradeep Jain - Ambit Capital - Analyst : Okay, thank you for the clarification. Thank you. I wish you all the best.

Question: Akshit Gupta - Oak Lane Capital - Analyst : Hello. Thanks for giving me the opportunity. Am I audible? 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call

Question: Akshit Gupta - Oak Lane Capital - Analyst : Yeah, so I wanted to ask on gross margins like, I saw on PPT our Q1 on average selling price increased by 4% and as you said coal prices were down by around $10 per ton and the IMR also remained flattish, so I was seeing gross margins decreased by 300 bits for any reason why it decreased?

Question: Akshit Gupta - Oak Lane Capital - Analyst : Okay, and also on cooking coal, so we are like, mostly integrate backward integrating our thermal coal, for the captive usage, but we are not much focusing on the cooking coal for the captive, use. So, are we planning any inorganic or through auction based or to acquire some mines? For the capital consumption.

Question: Pallav Agarwal - Antique Stock Broking - Analyst : Yeah, sorry for the confusion. So, I had a question on what percentage of a product, you would benefit from the safeguard duty, so you know a portion of, flat products has been going up in the mix. So, can you assume that most of that, will benefit from the safeguard duty?

Question: Pallav Agarwal - Antique Stock Broking - Analyst : Yeah, so after a proportion of flats has been increasing, so that should overall, be beneficial for our blended MSR. 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call

Question: Pallav Agarwal - Antique Stock Broking - Analyst : Sure, sir. And then, and are we seeing enough, demand in the market to absorb some of the increase in prices because of safeguard duties I know Q4 is traditionally a strong quarter, but are we seeing enough demand in the first Quarter as well to absorb these prices, right?

Question: Pallav Agarwal - Antique Stock Broking - Analyst : Sure, sir. Also, you've stopped giving the EBITDA and production volumes for Mozambique, South Africa. So, is it fair to assume that these are no longer, contributing the [TV] to the EBITDA?

Question: Pallav Agarwal - Antique Stock Broking - Analyst : So, yeah okay thank you, sir thanks.

Question: Kirtan Mehta - Baroda BNB - Analyst : Thank you, sir, for the opportunity. First question is about the RINL volumes that we have discussed in the past, are we still expecting any metal coming from RINL which we can process at our plan?

Question: Kirtan Mehta - Baroda BNB - Analyst : Sure. And the second question was about could you share your revenue and capital ex acceptance and how they have changed over the last year. Hello, am I audible?

Question: Kirtan Mehta - Baroda BNB - Analyst : Would you be also able to decide how they change over the last year?

Question: Kirtan Mehta - Baroda BNB - Analyst : Sure, sir, and the last question is about the $150 million realizable value that we are seeing with Australian subsidy. Would you use broadheads under which this realizable value is accounted?

Question: Kirtan Mehta - Baroda BNB - Analyst : Great thank you.

Question: Indrajit Agarwal - CLSA - Analyst : Hi, thank you for the opportunity, a couple of questions what is the select sales for the full year.

Question: Indrajit Agarwal - CLSA - Analyst : Thank you helpful. Second, can we expect to the exit production run rate? I know you have given a guidance of the full year volume, but can we expect that the exit production right, run rate for the key upstream capacities BOF would be in line with the capacity or a ramp up would still go to an effect.

Question: Ritesh Shah - Investec - Analyst : Given two questions only. First question, can you give us an update on, Utkal CB 2, and Gare Palma IV/6? Are they already commissioned, if not, by when?

Question: Ritesh Shah - Investec - Analyst : Would it be possible for you to comment on the through throughput? Is it like, are we hitting rated ECs what the, what we are there indicated, or there is more juice on cost savings that one can expect to go forward.

Question: Ritesh Shah - Investec - Analyst : Sir, I could not understand Gare Palma, what you said. 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call

Question: Ritesh Shah - Investec - Analyst : And my second question, I think in, the presentation we have indicated, with the project ROC of 18%, 20%. This is pertaining to annual INR7,500 crore to INR10,000 crore of CapEx. ROC of 20% looks quite steep, so just wanted to understand what is the underlying denominator and the numerator that we are looking at, or if I have to put it the other way around. If I had to build this number around INR41,000 crores, INR47,000 crores of CapEx mentioned on site number 37 again, the ask will be quite steep, so just trying to get a sense on how we arrive at this number of 18% to 20%.

Question: Ritesh Shah - Investec - Analyst : Sure, and just last one of clarification, slurry line, I think, in the presentation it says 82% complete. How would I looked at the Q2 presentation, the timeline over there was given Q4 FY25. Is there a slippage over here? That's one likewise for BOF2, I think the timeline which was indicated was Q4 FY25 in the last, Q2, presentation. However, it's a different storyline and, in the current presentation. We're just trying to, get comfort. Are there any delays because you did indicate for all the projects except for the two that you stated everything was on schedule. So can you please reaffirm the timelines over here for, say, study pipeline and BOF2.

Question: Ritesh Shah - Investec - Analyst : And so, BOF2? 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call

Question: Rajesh Majumdar - BNK Securities - Analyst : Yeah, good afternoon, sir, and, again, thanks for a wonderful presentation this time. So, sir, I think, you've already highlighted the fact that we will be having some lag between the production and the sales this year due to the ramp up of the plant. Combined with this, we have liquidated inventory substantially in at the end of March. So is it suffice to assume that the net debt will probably go up significantly this year. And then probably fall in FY27 maybe it will go to the higher end of our kind of, two ex-net to a bit up before it falls again the FY27 that was the first question.

Question: Rajesh Majumdar - BNK Securities - Analyst : Right, that's useful. And secondly, sir, if you could give us a total, comprehensive requirement of coal, including the coal gasification, that we'll have from, say FY27, and how much of it will be coming from our own minds, on the thermal coal side.

Question: Rajesh Majumdar - BNK Securities - Analyst : Thank you.

Question: Rahul Gupta - Morgan Stanley - Analyst : Alright, thank you for taking my questions. So, two questions, first, continuing on the ROC question discussed earlier, when you say stabilize business ROCs of 18% to 20%, can you help us understand what kind of steel prices and raw material prices you take into account when you derive these numbers? Thank you.

Question: Rahul Gupta - Morgan Stanley - Analyst : Sorry, I did not get you. Can you please repeat?

Question: Rahul Gupta - Morgan Stanley - Analyst : Yeah, can you repeat?

Question: Rahul Gupta - Morgan Stanley - Analyst : Okay, thank you. My second question is, with the various projects, like slurry pipeline conveyor belts, and, cold blocks getting activated, sometime during the year, can you help us understand, broad range of cost savings that would come, over the next couple of years? Thank you.

Question: Rahul Gupta - Morgan Stanley - Analyst : No, that's understandable. I'm asking, a specific on the cost, savings, of you, slurry pipeline conveyor belts, and are already coming sometime during the year, right? And with, you using, captive coal, through the year, what kind of, internal estimates, have you done on the cost savings? Any broad range will be fine. Thank you. 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 01, 2025 / 8:30AM, JNSP.NS - Full Year 2025 Jindal Steel And Power Ltd Earnings Call

Question: Raashi Chopra - Citi Group - Analyst : Thank you. Just the one question again on the captive coal, how much, captive coal did you get? Thermal coal did you get in FY25? Even though you achieve the sea limit, but the actual amount of have to coal year.

Question: Raashi Chopra - Citi Group - Analyst : Alright, and you were expecting that to go how much in a FY26?

Question: Raashi Chopra - Citi Group - Analyst : Understood thank you.

Question: Nirbhay - N Square Capital - Analyst : Yeah, good afternoon, sir. Last year India had roughly 10 million tons of steel import. Do you see this falling substantially post safeguard duty?

Question: Nirbhay - N Square Capital - Analyst : Okay, so, also any thoughts on medium term outlook for cooking coal market because cooking coal prices have, even substantially and which has been released. So, how do you see? I'm not looking for a guidance, but any possibility of a significant reversal.

Question: Nirbhay - N Square Capital - Analyst : Okay, thank you.