Jindal Steel And Power Ltd Q1 2023 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 have a couple of follow-up question. First follow-up question is on the project finance term sheet for INR 15,000 crore that you have signed on the balance sheet of I think the Orissa subsidiary. I wanted to -- I do understand that you don't have a plan to leverage it. But I wanted to understand the covenants of it. What kind of capital expenditure is allowed to be financed under that loan? And also, what kind of capital expenditures cannot be financed under that loan because it's a project finance loan? And related to that, the another question was, why it has been taken on the books of the subsidiary where the cost of loan would be higher and you would have taken it on the parent? If you can clarify on these 2 aspects, it would help.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : So basic, is that apart from the current CapEx which has been around for around INR 18,000 crores, only that can be financed? And if you are planning to add any of the secondary expansions to that project, can that also be financed under the same loan? Because we don't really plan to draw it down either this year or the next. The way I understand it, you plan to actually do it from your own pocket, or whatever the cash flow is afforded by the company. So in that scenario, are you aiming to sort of use this project loan for the further capital expenditure that you would be doing after completion of this project, sir? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 15, 2022 / 12:00PM, JNSP.NS - Q1 2023 Jindal Steel And Power Ltd Earnings Call

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Right. Can you also clarify on the reasons for taking it on a subsidiary balance sheet rather than a parent balance sheet because the cost of loan would be higher on the subsidiary balance sheet?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Second question was about, again, a bit going back to the export mix that our MD be clarified. I wanted to understand what was the export mix in the FY '22? We believe we had exported around 2 million tonne of product. Could you give us a breakdown of the category of products that was exported in FY '22? And how would this category change in FY '23 as per your current plan?

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Historical breakup at least for FY '22, where you've already completed that deal.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : One more question, if I can slip in, about the coal project that you are developing. Could you also clarify on the model of development? Are you involving the MDO? Or are you doing it on your own balance sheet? And does it also involve the complete CapEx on setting up the mines and all the related equipment? Or it's only sort of the payment would go primarily to the MDO operator? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 15, 2022 / 12:00PM, JNSP.NS - Q1 2023 Jindal Steel And Power Ltd Earnings Call

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Then in that case, your CapEx of INR 18,000 crore would go up by another INR 1,800 crore to INR 2,000 crore for additional CapEx on the coal mine because initial INR 18,000 crore plan did not include the CapEx on coal mine.

Question: Vishal Chandak - Motilal Oswal Securities Limited, Research Division - Analyst : Thanks, Rupisha. Thank you, everyone, for joining for this conference call. And I would once again thank the management for this opportunity. So I would hand over the floor to Nishant for closing remarks.