Tata Steel Ltd Investor Call Transcript

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

Question: Sumangal Nevatia - Kotak Securities Ltd - Analyst : Yeah, good evening, everyone. Firstly, congratulations to the management for the Board approval. Sir, my first question is on the NINL expansion. We've seen the Board approval, but can we get some more details with respect to the time line, the capital cost, the iron ore sourcing, on these three to four parameters, please? Thanks.

Question: Sumangal Nevatia - Kotak Securities Ltd - Analyst : Understood. Sir, just a follow-up. So with respect to iron ore, the approvals are in place for the extended capacity and will it come parallelly, number one?

Question: Sumangal Nevatia - Kotak Securities Ltd - Analyst : And then in terms of the mix, it will be broadly 50-50 between flats and longs?

Question: Sumangal Nevatia - Kotak Securities Ltd - Analyst : Understood, sir. Sir, my next -- second question is on the MOU with Lloyds. So generally, we've never done growth in terms of steel in a JV form. So this is something new. So I just want to understand what is in for us, how have we selected Lloyds and generally, is -- in the long term, should we look at future expansions possibly in Maharashtra, in a JV form? Or just some more details on this entire MOU, please?

Question: Sumangal Nevatia - Kotak Securities Ltd - Analyst : Got it. That, that's very elaborate. Thank you and all the best.

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd - Analyst : Everyone, thank you for the opportunity and, best wishes for the future project. I have three questions again. See, I understand that it's not possible right now to give me concrete numbers in terms of our expansion plan. But is it fair to assume or is it fair to comment that the CapEx plan, which we have highlighted, especially 4.8 million tonne NINL expansion, 2.5 million tonnes slab caster, 0.7 million tonne downstream capacity and 1 million tonne HISarna technology at Jaipur -- at Jamshedpur. So all these CapEx could be in the range ballpark number, Is it INR50,000 crores, INR60,000 crores or something which we can see that we can do in the next four years?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd - Analyst : Understood, sir. And sir, second question is in terms of pellet plant, we have seen two months back only Lloyds Metals, they have bought this 49.9% at an implied market cap of something like INR992 crores whereas we have paid for our share around INR1,271 crores, approximately 28% higher than what they have bought just two months back. So is it just because it's nearby we are paying some kind of premium for the same kind of asset. So I'm unable to understand that. This is one. And secondly, in parallel to that, when we are saying that we have a collaboration with Lloyds in setting up 6 million tonnes at Maharashtra in phases. So is it the same 3 million tonnes, which also they are working on these things? Will that be a part of it? Or this is entirely 6 million tonnes separate, which we are talking?

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd - Analyst : Sir, what is the total EV for that? Are we considering any debt also in that because the number which I'm talking about Lloyds is in the public domain, two months back only they have done. So that's the reason I'm saying 28% premium for the same facility.

Question: Ashish Kejriwal - Nuvama Wealth Management Ltd - Analyst : Sure. Thank you and all the best.

Question: Ritesh Shah - Investec Bank PLC - Analyst : Yeah, hi, thanks for the opportunity. I just wanted to have some clarity on the JV. Is it fair to understand Lloyds will get land and iron ore, Tata Steel will put in the CapEx and take care of distribution. Is that a fair assumption?

Question: Ritesh Shah - Investec Bank PLC - Analyst : Yes, sir. Sir, my question is specifically on the third part, what you elaborated to, will our intent be to do a JV for the 6 million tonnes? Or is it like early to comment on it? Basically, the question is more coming from a cash flow and a CapEx standpoint.

Question: Ritesh Shah - Investec Bank PLC - Analyst : Okay. Sir, just last follow-up, two questions. So whatever we do on the third part of the equation, will that debt get consolidated on our books. Basically, any color on the structuring over there? That's one. Second is, are we relying on Lloyds' existing coal block, I think it's called Surjapur. Or is it -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 12:00PM, TISC.NS - Tata Steel Ltd Investor Call

Question: Ritesh Shah - Investec Bank PLC - Analyst : Iron ore block or any other we are expecting or exploring? Or can there be some allocation with -- from the state government wherein both the companies could be a beneficiary? And third is the quality of ore in Maharashtra is not great, given the Fe thresholds have been reduced to almost like 35%. How does it change the economics for us? Historically, mining profitability has been one of the key levers for us. So would it change the underlying economics? So there's three parts to the question.

Question: Pradeep Singh - IIFL Finance Limited - Analyst : Hi, thanks for this opportunity. Just following up on the earlier answer. Sir, when you said that you would be looking at iorn ore availability, does that mean you with Lloyds as a JV partner be interested in participating in auctions in Maharashtra as well as the fact that Lloyds currently, while it has high-grade ore reserves, but it's not enough for long to continue a 25 million tonne space for which they will be beneficiating. So would you also be waiting for the beneficiation plant to set up to get a sense if it's operating at the scale at which you want to or going into auctions also is a possibility, you don't need to wait for the plant to be set up?

Question: Pradeep Singh - IIFL Finance Limited - Analyst : Understood.

Question: Pradeep Singh - IIFL Finance Limited - Analyst : Just a follow-up on this, sir, I think a few weeks back, there were talks in the ministry that in the auctioning regime can switch to capping the premiums at 50% and move to a upfront payment-based bidding. Have you heard anything more from the ministry on that? Or it's just in the draft papers right now?

Question: Pradeep Singh - IIFL Finance Limited - Analyst : Thanks. My second question is, largely, just to get an idea. I mean, this is the, I think, first big greenfield project, which would take in Maharashtra it comes to that. So what kind of CapEx intensity is currently there? I mean earlier we used to talk about $800 per tonne. Obviously, USD/INR has depreciated quite a bit. Do you think the range -- I'm pretty sure engineering work is not done. So to just understand, from my understanding a ballpark range, it's still at $800 per tonne? Or do you think $600, $700 is doable for a greenfield flats project, let's say, in Maharashtra?

Question: Pradeep Singh - IIFL Finance Limited - Analyst : Thanks. Thanks for all the best.

Question: Amit Murarka - Axis Capital Ltd - Analyst : Thanks for the opportunity. I hope I am audible.

Question: Amit Murarka - Axis Capital Ltd - Analyst : Is it better now?

Question: Amit Murarka - Axis Capital Ltd - Analyst : Sure, so just, two questions. Firstly, on. Association with Lloyds brand is that primary being on the pellet plant and the steel plant --

Question: Pallav Agarwal - Antique Stock Broking Ltd - Analyst : I hope I am audible.

Question: Pallav Agarwal - Antique Stock Broking Ltd - Analyst : So currently, probably, the India profitability is about close to INR15,000 per tonne. Now with this value addition, et cetera, coming in, and particularly since you mentioned that the Tata rebars are at a premium to normal rebars and right now, probably they are at a premium to HRC as well. So can this INR15,000 go to INR17,000 over the next couple of years once the 2.2 CRM comes in at Kalinganagar?

Question: Pallav Agarwal - Antique Stock Broking Ltd - Analyst : So the value-add portion should probably mitigate part of the cyclicality in the commodity steel business?

Question: Pallav Agarwal - Antique Stock Broking Ltd - Analyst : Also, if you could give some sense on HISarna, how much cost savings can be there if it is low cost of people --

Question: Pallav Agarwal - Antique Stock Broking Ltd - Analyst : Sure, sir. If I can just lastly on the proposed Maharashtra plant. So I guess a lot of the value is coming from the state government CapEx subsidy and the GST exemption probably in some of the similar projects. So wouldn't it be a good idea to probably start the plant if these benefits are substantial and can reduce the payback. So maybe instead probably waiting for the JV probably you could start it on your own itself.

Question: Pallav Agarwal - Antique Stock Broking Ltd - Analyst : Koushik, thank you so much.

Question: Vibhav Zutshi - JPMorgan Chase & Co - Analyst : Yes, hi, sir. Thanks for the opportunity and congratulations for the growth projects. Just regarding the greenfield plant in Maharashtra, and since you mentioned that you -- it will be probably closer to the sea. Just curious, if you will also evaluate importing the iron ore because a fair amount of iron ore now over the last few months, is actually getting imported from the Middle East from one of your closest peer. So given all that you mentioned about the captive mines of Lloyds reaching up to 67% beneficiation versus potentially getting the iron ore from sea via Middle East. Just curious if that would make economic sense and if that can accelerate the development of the steel plant? Thank you.

Question: Vibhav Zutshi - JPMorgan Chase & Co - Analyst : Okay. Got it. Thank you so much.

Question: Amit Murarka - Axis Capital Ltd - Analyst : Yeah, hi, thanks for the opportunity. I hope I'm audible this time around.

Question: Amit Murarka - Axis Capital Ltd - Analyst : Thank you. Yes, just on -- I think a lot of questions have already been asked on the Western foray or planned Western foray. So I would just seek more clarity on the NINL expansion first. So what I understand, at least from the filed documents is the reserves -- iron ore reserves at the plant seem to be in the vicinity of about 150-odd million tonnes. So given that it will be a 6 million tonne steel plant, like would you be looking to enhance reserves at this location? Or would there be a mix of captive and merchant because otherwise, it seems to be a 15-year life for the reserve based on the documentation that is available.

Question: Amit Murarka - Axis Capital Ltd - Analyst : Got it. Got it. And just secondly, while CapEx, as you said, will be better known maybe by March. But should we see this as more like a greenfield CapEx because the existing plant is only 1 million tonne, and this will be a 5 million tonne. So the CapEx will be more than just a brownfield expansion CapEx, right?

Question: Amit Murarka - Axis Capital Ltd - Analyst : And given that the intention is to go to 10 million tonnes here, would you be building in like more the civil infrastructure over here in the first go itself or we will do that in the next phase then?

Question: Amit Murarka - Axis Capital Ltd - Analyst : Sure. And just a last question. So while in the West, you are exploring that option, but is it also right to think that you will take that up only once the NINL expansion is through or at least towards the end of the...

Question: Amit Murarka - Axis Capital Ltd - Analyst : Sure. That's all for me then. Thank you. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 12:00PM, TISC.NS - Tata Steel Ltd Investor Call

Question: Ashish Jain - Macquarie Group Ltd - Analyst : Sorry guys. Am I audible now?

Question: Ashish Jain - Macquarie Group Ltd - Analyst : So just one clarification on the potential West expansion. Like is the land readily there with your partner here? Or that will also be acquired by us or the partner at a later date for our expansion?

Question: Ashish Jain - Macquarie Group Ltd - Analyst : Got it. Sir, secondly, my second question is on -- if I look at our product mix today, like based upon the expansion we have on flat steel, we are pretty much operating at full capacity utilization. And with NINL and Ludhiana, we are mostly adding long products. So is it fair to assume that we will not see much growth on flat side? And one, is that right? And second is, how do you see that in context of your demand outlook for flat versus long for the industry? Like we understand today, longs are much bigger, but how do you see that demand shipping up for the industry?

Question: Ashish Jain - Macquarie Group Ltd - Analyst : Got it. Just one clarification. Kalinganagar, from a nature point of view, will be more greenfield from here on? Is that how we should think -- I mean in terms of the support infrastructure and all those things?

Question: Ashish Jain - Macquarie Group Ltd - Analyst : No, Narendran. Sorry to cut you -- my question is ex of land. Land I know we have, but ex of land, is it more like greenfield in terms of support with intra, utility, all of that or?

Question: Ashish Jain - Macquarie Group Ltd - Analyst : Yeah, that's yeah. Okay. Got it. That's helpful. Thank you so much.