Half 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 : I just wanted to understand a bit more about the price realization, the way you're guiding about the INR 1,500 per tonne you have taken in October, another INR 1,000 is possible in the long products during November as well. But currently, if at all we look at sort of the discounted import parity price, the discount is probably wide, is around 20% or so. So do you see this discount narrowing over next 3 to 4 months? Or do you think that this could continue from here?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : If at all, we sort of compare the domestic prices to the lended international parity prices and consider the discount, that discount is of -- order of around 20% or so.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Price differential of the China export prices lended in India, theoretically, versus the domestic prices?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : And in terms of the progress on the CapEx plan that you are highlighting, could you sort of take us through the key milestones that had been achieved during this quarter?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Right. And what would be the CapEx target for the FY '22? What would you be able to actually deliver? Hemant Kumar Because most of the time has passed, we are not looking beyond INR 2,400 crores to INR 2,500 crores, all put together in the current financial year. For our new projects, including our 100% functionaries.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : So is it possible to sort of achieve this 7.5 million tonne production in FY '23 itself? Hemant Kumar '23? Yes, yes. Definitely.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Congrats to entire team for good performance and record deleveraging done by the company. Good to see very high deleveraging done in this quarter also. So a few questions. First, on the Australia coal mines, if I heard correctly, you said your FOB cost would be $90 as against the current realizations of $380, $400?

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : So $380, $400 is hard coking coal. So your Australia grade would be hard coking coal, semisoft, soft? If you can guide something? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 02, 2021 / 11:30AM, JNSP.NS - Half Year 2022 Jindal Steel And Power Ltd Earnings Call

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : So from December shipments, you are saying you will be making $300 on Australian coking coal?

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : No, I understand that. But it's a very big number you're guiding. So because you plan to guide so -- so if you can give some -- because the run rate would start slow and then it would be 2 million to 2.5 million per annum. So is this cost upfront or it would be after exit run rate, if you can guide something on this? Because if I extrapolate the number, you're guiding 500 million, 600 million tonnes of EBITDA at Australia coal mines, which are difficult to digest. So if you can throw some light here? Hemant Kumar Bhavin, Hemant here.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Sure. I'll get more update on it. Second, you also said, if I based on the number, your quarter 3 impact on coal would be $50 per tonne of steel? Hemant Kumar Yes, I said earlier also. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 02, 2021 / 11:30AM, JNSP.NS - Half Year 2022 Jindal Steel And Power Ltd Earnings Call

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Sure. No, I'm just trying to indicate the milestone. Your cost hike is largely covered by NSR hike. If that statement is correct? Hemant Kumar That you can estimate very well, but we don't give any outlook on EBITDA.

Question: Bhavin Chheda - Enam Holdings Pvt. Ltd - Analyst : Before the financial year. And my last question. You're looking for a bond ratio. So this is largely to refinance the Mauritius debt? And if I understand correctly, the FY '22 repayment schedule is $220 million there, right, so it's largely refinance Mauritius debt? Hemant Kumar I don't want to comment on that. As I mentioned, we want to be net debt free by financial year 2023. And seeing my cash position as of today, I can meet all repayments of overseas from my cash in the bank. So I can't comment on the futuristic thing. Once we do, we'll come back to you.