Jindal Steel Limited ($JINDALSTEL)

Ladies and gentlemen, good day, and welcome to the Jindal Steel Q4 FY '26 Earnings Conference Call hosted by JM Financial Institutional Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ashutosh Somani from JM Financial Institutional Securities. Thank you, and over to you, sir.

Thanks, operator, and welcome, everyone, to the call. I will first thank Jindal Steel for giving JM Financial the opportunity to host today's call. Without much ado, I'll hand over the call to Mr. Vishal Chandak, Head Investor Relations, Jindal Steel, to introduce the management. Over to Vishal.

Thank you very much. Good morning, ladies and gentlemen. Sorry, good afternoon. Thank you very much for joining us for the Q4 and FY '25 earnings briefing on a Saturday on a long weekend. Quickly, we'll introduce the management participants. We have with us, Mr. Gautam Malhotra, CEO; Mr. Damodar Mittal, the Wholetime Director; Mr. Sunil Agarwal, CFO; Mr. Sanjeev Nanda, President Finance; Mr. Panama, Sales and Marketing; Mr. P.K. Bijar, ED Yang; and Mr. Dabout Roy of ED Raigarh. Without much ado, I would request Mr. Gautam to start with the opening remarks. After this, we will open the floor for the Q&A. Over to you, sir.

Thank you, Vishal. A small correction, and I think Vishal meant FY '26. So good afternoon, ladies and gentlemen. Welcome to general sales fourth quarter FY '26 and FY '26 Earnings Conference Call. We appreciate you finding time on a Saturday afternoon to join us. FY '26 has been a defining year for Jindal Steel marked by significant progress across our expansion projects, which have taken our steelmaking capacity from 9.6 million tonnes per annum to 15.6 million tonnes per annum. We have had a steady ramp-up of these newly commissioned capacities at Angul and a continued focus on operational efficiencies across all 3 manufacturing sites, including Raigarh and Patratu. As we transition into a higher scale of operations, we are well positioned to deliver not only higher volumes, but our value-add product range gets towards the infrastructure demands of a growing India. Let us start with a big picture view on the global steel industry, which is entering a phase of measured recovery. There are projections of modest growth of 0.3% in 2026 to reach 1.7 million billion metric tons, accelerating to 2.2% in 2027 at 1.762 billion tonnes. China's demand contraction is gradually decelerating while India and other developing Asia remains growth drivers. Developed economies, including the EU, U.S. and Japan, are expected to return to positive growth in 2027. The Middle East conflict has tempered near-term regional demand. However, the broader global outlook remains largely resilient. With regards to China specifically, production remains resilient despite weak demand. Crude steel production was 950 million metric tonnes in CY '25, down 5% year-on-year, even as domestic steel demand continued to contract at 7% year-on-year. This growing gas signals persistent oversupply. With that context, exports reached a record high of 119 million tonnes in CY '25 with surplus steel entering global markets to compensate for continuing demand weakness primarily in real estate construction. Coming on to India. The country continues to assert itself as the world's fastest-growing major steel market with domestic demand projected to expand by 7.4% in 2026 and accelerate further to 9.2% in 2027. This outlook is underpinned by broad-based strength across all key steel consuming sectors, infrastructure-led construction activity, the automotive sector, our broader industry CapEx cycle and a nationwide rail network expansion plan. These demand fundamentals are well reflected in FY '26 with finished steel consumption rising 8% year-on-year to 164.2 million tonnes and food steel production expanding 11% year-over-year. At a quality level, Q4 FY '26 sustained this trajectory with finished steel consumption at 44.6 million tonnes and crude steel output at $44.7 million. This reflects growth rates of 10% and 5%, respectively, over Q3 FY '26, underscoring India's steel demand recovery. It is also important to recognize that India has now become a net exporter of steel with 0.1 million tonnes in FY '26. It is important to note that the safeguard duty on flat steel imports stepped down from 12% to 11.5% effective April 21, 2026. Turning to Jindal Steel. FY '26 has been an exciting milestone year in terms of project execution and capacity expansion. During the year, we made significant progress on the Angul expansion. As you would recall, this plan is to increase the iron making capacity by 6.6 million tonnes to BOF2 of 4.6 million tonnes, which is operational and DRI 2 of 2 million tonnes, which is under construction. At a steelmaking level, capacity was increased by 6 million tonnes with BOF and BOF3 each of 3 million tonnes. The core rolling complex of 1.2 million tonnes per annum enhances the general steel product portfolio and supports margin improvement through higher value-added products. On the power side, we commissioned the 1,050 megawatt tree Bhoomi power plant, consisting of 2 modules of 525-megawatt each. The coal pipe conveyer belt between the thermal coal mine and Utkal and Angul is operational now. On the slurry pipeline from Barbell to Angul this challenging project is close to completion now. The pipeline is expected to be commissioned in this quarter, Q1 FY '27. Overall, as mentioned earlier, the Angul expansion has taken our company's total steelmaking capacity from 9.6 million tonnes per annum to 15.6 million tonnes per annum. During the year, we have continued to progress our integrated raw material strategy. We have been declared the preferred bidder for Takurani, in Orissa. For thermal coal, you may recall at the end of last year, we were awarded the Santapoulu East going block. For FY '26 production volume was 9.25 million tonnes, and sales was at 8.68 million tonnes, representing an increase of 14% and 9%, respectively. For Q4 FY '26, production volume was 2.65 million tonnes, representing quarter-on-quarter growth of 6% and year-on-year growth of 26% and sales volume was at 2.62 million tonnes representing a quarter-on-quarter growth of 15% and year-on-year growth of 23%. This performance reflects a strong ramp-up at Angul and improved capacity utilization across operations, including Raigarh. Dispatches have also improved in line with the stronger demand environment. Overall, we have achieved a balanced sales mix across product categories with focus on optimizing realizations by moving our product mix towards higher value-added products. Coming on to the financial performance in FY '26. Jindal Steel reported consolidated gross revenue of INR 62,412 crores, an increase of 8% compared to FY '25. Consolidated adjusted EBITDA was INR 9,099 crores and on a per tonne basis, the adjusted EBITDA was INR 10,482 per ton, compared to INR 11,712 in FY '25. The profit after tax for the year is INR 3,361 crores, a growth of 18% over last year and a corresponding earnings per share of INR 33. The Board of Directors has recommended a final dividend of INR 2 per share. For Q4 FY '26, consolidated gross revenue was INR 19,399 crores in compared with INR 15,172 crores in Q3 FY '26, a growth of 28%. In addition to the expansion ramp-up volumes, HRP and TMT PA prices recovered strongly during the quarter, although the benefits were partially offset by an increase in coking coal prices. The blended ASP has increased by INR 4,743 per tonne on a sequential basis. Consolidated adjusted EBITDA for the quarter was INR 2,647 crores and an adjusted EBITDA per tonne of INR 10,093. Profit after tax for the quarter was INR 1,041 crores. Until the previous quarter, the Australian assets were under care and maintenance. This quarter, we have closed the shaft and the reserves are no longer accessible although we still have the license. Accordingly, we have recognized an impairment of INR 1,433 crores in which equates to USD 159 million in the stand-alone business and INR 834 crores, which equates to USD 93 million in the consolidated results. Overall, the ramp-up of the expanded Angul facility, along with our commitment to ongoing operating efficiencies and customer focus will drive our financial performance in the quarters to come. As of 31st March 2026, consolidated net debt was INR 16,019 crores with a net debt to EBITDA of 1.66 and debt to equity of 0.43x. With the ramp-up of new capacities and corresponding improvement in operating cash flows, we expect leverage metrics to normalize by Q2 FY '27. We remain committed to maintaining a disciplined capital structure whilst funding our sustainance and future growth initiatives. During FY '26, we have invested a further INR 9,574 crores in out of the total planned CapEx program of INR 47,043 crores. Along with the INR 25,924 crores already invested up to FY '25, the remaining CapEx program is INR 11,545 crores. It is interesting to note that from FY '22 to FY '26, net debt increased from INR 8,876 crores. to INR 16,019 crores, which is INR 7,143 crores more. And during the same time, we have invested INR 35,498 crores in the current CapEx program which reflects the strong internal accrual allocation we've been able to do to the capital allocation framework. We are making strong progress on our AI and digital transformation journey. -- from upscaling our workforce and deploying AI-powered digital agents to turning smarter and increasingly autonomous plants. We are building Jindal Steel into a truly intelligent enterprise. Our Jarvis, which stands for Jindal Steel for real-time visibility, intelligence and systems platform unifies production, sales and business data into 1 thinking layer. While investments in robotics, end-to-end digital integrated systems ensure that our business processes are safe, connected and future-ready. Jindal Steel ESG journey runs in 4 clear phases. Through FY '30, we are building site level control systems and terrible reporting foundations. By 2030, we target a 30% CO2 intensity reduction, 50% renewable energy and full biodiversity coverage across all sites. The 2030 to 2040 decade will scale hydrogen circularity and CCS infrastructure. By 2027, our goal is net 0 emissions, 0 waste and net positive biodiversity. We were pleased to have our sustainability efforts recognized during the year with S&P Global raising our ESG score from 37/100 to 74/100, and our CSA score improved from 30 to 72. Looking ahead, we expect continued ramp-up of the new capacities at Angul to drive volume growth. Steel demand in India is expected to remain reasonably strong, supported by infrastructure development and construction activity. Steel prices have shown recovery in recent months and are expected to remain supportive in the near term, all the raw material cost, particulate coking coal may remain volatile. With that context, our production plan for FY '27 is 11 million to 11.5 million tonnes and sales between 10.5 million to 11 million tonnes. For QY FY '27, we expect coking coal prices to increase by $20 to $25 per tonne sequentially. Thank you.

[Operator Instructions] Our first question comes from the line of Jashandeep Chadha from Nomura.

Congratulations for a very good set of numbers. My first question is on realization. We see that realization has improved in the fourth quarter. the steel prices continue to improve in the first quarter as well. So I wanted to understand, have your contracts being reset on the higher realization. And what will be the impact of the -- what will be the impact on realization in the first quarter? And any comment on the recent dip steel prices? That would be my first question, sir.

Thank you for your question. So 2 things. We have a mix in our order book of spot selling as well as contractual selling. So typically, in a rising market and a falling market, there is usually a lag also in the system. So you can see that our ASP has increased significantly and considerably in the last quarter. I think second part of your question was more related to you seeing a slight dip in the market. yes, but we still feel that at the moment, the market is holding firm and there's nothing to worry about on that front. And we do have contracts on the earlier prices as well, which are continuing, which will continue to support us as we move ahead in this quarter.

So it means the realization will remain strong. And my second question is, sir, with commissions to significant capacity commission with slight pipeline expected to come in the first quarter and then Senetas also largely commissioned. What will be in capacity -- sorry, CapEx outlay for FY '27and '28. Which are the key projects now which are left? And will it be fair to say that now Jindal Steel been looking more at asset shaping than further capacity expansion in the next couple of years? .

That's a lot of questions in 1 question. Okay, let me try and break it up. So -- the first -- I'll start reverse. I think you're 100% right. We finished our CapEx or more or less finished our CapEx program. Our focus is on sweating the assets and getting returns out of them. So bang on, on that. Another question you had is, I think our guidance has been fairly clear that we'll be allocating INR 7,500 crores to INR 10,000 crores to a capital expansion programs or sustenance CapEx as we call it. So I think that broadly answers your question. If I missed any part of the question, feel free to go in.

[Operator Instructions] Our next question comes from the line of Darshan Mehta from Dolat Capital. Please go ahead.

Sir, my first question was basically we had earlier indicated a shift to high throughput and low margin products in Q3. However, it seems that even in Q4, our share of value-added products has fallen Q-o-Q. So can you just provide any time line that -- by what time should we be able to recalibrate towards higher value-added products? And what is the target value-added mix for FY '27? .

So I think our thought process on this is fairly clear. At the moment, we are ramping up our facilities. And whilst in ramp up, our primary goal is first to achieve capacity utilization -- and once we start achieving capacity -- the desired capacity utilization numbers, we start going towards the mix optimization. So that's the way we're approaching it. So I think you're going to see a little bit of movement in the first 2 quarters of this year and then a stabilization in the second half of the year.

Sure, sir. So would you like to call for any one-off start-up costs in this quarter?

Which quarter, last quarter or this quarter?

No, Q4.

It was all -- I think most of the start-up costs were covered in Q3. There was some fag-end of it, which was there in Q4, but it's not anything which is significant, and it's all done now. .

The next question comes from the line of Vikash Singh from ICICI Securities. .

Sir, can you tell us the contract versus spot sales mix this quarter and expected in the -- and another question would be the product mix changes impact on your overall realization because as we see the sequential jump was much higher than what you have realized this quarter. If you could just elaborate on that point for us. .

Vikash, this is Vishal here. For any data-related questions, I'll connect with you off-line. And please repeat the second part of your question? .

Our products may stay changing towards more on HR -- so obviously, it is slightly on a blend basis, it are. So I just wanted to understand the product mix change versus the realization ratio impact basically. How should we look at the going forward realization increase based.

So I think I would stay away from saying the word decelerating. Yes, we are increasing our flat sales and you picked up correctly on the -- especially on the HR side. And over there also, we continue to expand our value-added portfolio. Along with that, we have the downstream facilities, which will actually add more capability and more niche products downstream, which will also add to our realization and our value addition program and our ratios on that. In terms of how the numbers will pan out, I think earlier, our teams have already spoken about it. I think today, we are around 50%, 50%. Flat sales will increase in times to come and move towards 70% or as we move ahead.

Got it. And sir, any update on the FY '27 net list in the production guidance as well as the benefit which we are going to receive from the infrastructure projects combined?

I think the guidance I've given our infrastructure because if you're specifically referring to any project as such, because we have already just announced the FY '27 production and sales guidance at 11.5% -- 11 million to 11.5 million tonnes of production and 10 million to 10 10.5 million tonnes of sales.

Yes, that I see on your presentation, I think this was on Slide 5. Infrastructure related, if you can tell me the slurry pipeline and the port facility how much savings we are actually building in on those 2 projects?

So I think at been clear in the past. Slurry will come online, and it will start delivering in this financial year and roughly about INR 700 is the savings that we indicated on that. And if you want to take it to a per tonne basis on steel level, it will be roughly about INR 750 to INR 1,000 as we ramp up. .

The next question comes from the line of Kiran Naik from Modi Fincap.

Can you hear me.

Please go ahead. Yes, we can hear you. .

Sir, can you give me a guidance for revenue growth for FY '27?

I think we've given you the guidance for our sales and production numbers. And I think revenue is a function of a lot of other things. So we'll stick with that for the time being. .

EBITDA margin will be how much for '27?

So Karen, EBITDA is a function of several things, a lot of which includes raw material and the pricing, which remains outside our control.

And also, I'd like to add, I think if you look at our performance over the years and quarters, largely, we've been a very robust and a consistent performer on our EBITDA numbers as well as percentages. So I think that should provide enough confidence for you to take guidance from that.

The next question comes from the line of Satyadeep Jain from Ambit Capital. .

The first question on the write-downs. And I'm not sure if you mentioned the prepared remarks, what the write-downs in JPM and Bolon. .

This is Sunil Agrawal. So basically, we have reconciled Italian assets by INR 834 crores, mainly because now we are going to close that mine. So we have already closed the shaft, and that's why we took the hit of around INR 834 crores. India level, if you can see that we have already with own INR 1,433 crores during the quarter.

So the remaining loans that you have, is it fair to say that there would be no additional write-downs now.

So that's right. So we don't expect any further write-off. This is represented by the independent valuation done by retenancy.

Okay. just on the old rail takes that the company was going to buy, what is the current position? How many rail breaks have already been acquired, how many are left?

So we are about -- I think our rail base program was about 79 rigs. We're at about 72 rigs and the remaining rates also very soon getting delivered. So I think in the next 2, 3 months, we should be all in.

The next question comes from the line of Mitesh from HSBC Bank. Since we don't have a response, the question comes from the line of Sumayya -- we from Avendus Park.

Sir, my first question is on iron ore. So if you could just help with kind of pricing trends that we saw last quarter? And also in terms of capital versus outside line, if you could give us a mix and also possible mine level, Tensa and online.

Okay. So I think mine level, you can take it off-line with Vishal. But largely speaking, we saw that the pricing was more or less stable, and our mix is about 60-40.

60 captive?

40 captive.

Sir, so in terms of incremental volumes that we are bringing in this year. So in terms of markets, how do we plan to -- are we going to go into newer markets or in the existing markets, we have the headroom to kind of have this sales point. So how do we see in terms of this incremental 2 million tonnes that is last year in terms of placing the markets? And which markets would be more leased or will we have to your markets?.

So I think there are a couple of ways we're looking at this. Firstly, with our wide product portfolio and the fact that we have a very rich value-added mix and value addition is actually we are able to cross-sell products to existing customers, and we become a good natural choice for them to start buying other products also which we've just launched from us. So we become kind of more or less "one-stop shop" for them for a large portion of the portfolio. Second part, I think we're talking about which markets I think that's more difficult to answer. But we continue to remain focused on what we define as our strategic markets and our strategic markets where we have strong presence, we're usually closer to where we are and also markets which tend to be larger in size. So that's the way we look about it. But generally, we're thinking that our customers actually benefit from cross-selling opportunities that we're paying on the table now. .

Okay. Sir, on the mining assets. So if you could just help us -- you could speak about Australia in terms of Mozambique and South Africa. So what are the kind of contribution that we have had in this quarter? And also with respect to the Australian assets, is there any cash flow? You mentioned that winding the own of assets. So is there any cash outflow that is required from our side by the time this kind of it to.

So I will take the question. So basically, as you say, okay, regarding the Australian mines. So hardly we had -- since we have already closed and we have retained a lot of people, so we have very minimal expenditure and cash flow there. So that is 1 question. Regarding our Mozambique mine, clearly, we are operating EBITDA positive level. So we are getting all the mines calls from there to our for our capital needs. I hope that.

South Africa also?

Yes. South Africa also South Africa also is operating, but due to some local issues. So we are not EBITDA positive, but that mine is operating as well.

So yes, just to add to it. If you look at the entire big picture of the overseas asset mine base, the only place where we have taken the large part of the write-down is on Australia. Rest of the mines on a net basis are functional and EBITDA positive, largely.

The next question comes from the line of Amit Murarka from Axis Capital.

Just 2 questions. Firstly, on the thermal captive power plants. Just wanted to understand when do we expect the ramp-up on those capacities and what really is the strategy on the power production from there. I believe you will have some excess power capacity at hand once we fully ramp up the expanded or capacities? Or will you be looking to sell in the merchant market? Or will you just think of using it for capital consumption?

So I think the ramp-up will be completed between the first -- within the first half of this year. In terms of the excess power, yes, we intend to sell it. But if you look at the overall picture and the financials, it's not really material to that. But it does 2, 3 things. One, obviously, we can sell the excess power, but it gives us stability of power for our assets, and it gives us redundancy of power for our facilities as well. So that's the way to think about it. But yes, it will contribute to the bottom line, but it's not material. .

Understood. And also, is it fair to say that now there will be no excess sale of byproducts going ahead with the ramp-up in steel capacity is happening now?

Yes. That's right.

Okay. And then lastly, like you were also looking to increase your EC capacity for some of the mines which I believe is still pending. So when is that expected to come through?

It's underway. I think pinpointing date will be difficult, but the process is underway, and it's working fairly well. And at the moment, with the current capacities, I think within that also we're fairly comfortable.

The next question comes from the line of Sarah Singh from Dhan Securities.

So 2 questions. First is wanted your input on the overall steel demand in India, especially with the ongoing inflationary trends that we are seeing across commodities. Are we hearing some kind of delays in CapEx execution across both public and private companies?

No, nothing like that. I think it's fairly healthy. I think I indicated towards the 9%, 9.5% market increase that we're expecting. And with the kind of infrastructure program that we're rolling out, we don't see any issues on that side.

Got it. Second question is actually on the time line of the ramp-up of the slurry pipeline. So if it gets -- the project gets onboarded in Q1, so by when can we at a full 100% ramp up or at least at the level of INR 750 to INR 1,000 per tonne of steel savings.

See, full utilization will not happen this year because this utilization will increase as the other facilities that we are coming up in the future also come online, namely PP2. But in terms of savings, whatever material we're bringing in, we will save on that material per tonne basis, as I indicated. That is not a function of how much utilization we have.

The next question comes from the line of Rashi from Citigroup.

What was the MSR increase during the quarter sequentially?

Just indicated, the ASP fees is about INR 4,700 per ton. .

Okay. And spot versus what we saw in the fourth quarter? And how much upside is there for realizations to go up to where spot is at the moment?

Q1?

And going forward in 5 will be higher than Q1 and Q1, Q2, basically, how much more upside do you have on realization?

I think predicting the market will be difficult. But all I can tell you is that the market is holding up. It's healthy. And as I indicated, because of the way we do our product mix and our contract mix, we are in a comparable position at the moment.

Okay. Then on the cost side, in the last quarter, that's the third quarter, you had a onetime startup cost of about INR 1,500 a tonne. And you indicated that there was something this quarter as well. So what is the total quantum this quarter?

INR 125 crores, as I indicated earlier, it's done now.

So we can expect a reversal of this entire thing going forward? It's a cost can be reversed. .

No, it won't record.

Over.

That's what it's over.

Yes. Okay. And the coking coal cost increase during this quarter was how much $20? .

About $20 yes. .

The next question comes from the line of Indrajit Agarwal from CLSA. .

A couple of questions. Given that our flat steel exposure is rising, what kind of end markets are we tracking in terms of segments? Is it more autos discretionary, what kind of end markets are we already talking sorry, .

First of all, thank you for your question. We've been maintaining that. We are an infrastructure-led organization, and we're also ramping up our facilities. Our focus would be largely led or would be on infrastructure sector. followed by building and construction and then, of course, into the downstream facilities, then followed with the automobile sector. .

So do we need some kind of approval from the consumers on these or fresh approvals from the consumers on these? Or what we have is good enough for now? .

See, our HSM has gone very well in terms of getting the approvals, and we have developed all the grades which are needed for all the niche products were in the process of ramping them up in this quarter and going forward also. .

And to add on to that, I think if you think -- the thing to look at over here is this is not something which will hold our plans. We are well positioned to execute our plans going forward.

Sure. And lastly, if you can give the flat and long mix for 4Q and FY '26 as a whole. .

52% flat, 48% loans.

Is for the full year. .

This is for the Q4. .

And full year? For the full year FY '26?

The next question comes from the line of Prateek Singh from IIFL Capital. .

Wanted to get a sense about the metallic balance right now as the DRI plant is to commission -- so I understand that we have 15 million tonnes of iron making and 15.6 million tonnes of crude steel making -- so is there any plan to buy DRI or other metallics outside and produce more this year? Or that's something we would be looking at and DRI plant once it comes up, it is the only 1 which will be contributing to our ratings. .

Prateek, Vishal here. So as you must have noted that we have already announced our guidance for the production and sales volume for this year. So that would explain the kind of volumes that we are looking up and how we plan to deliver. As and when our DRI comes up, which obviously is under construction phase, we will have more metallics. And for the next year, the volumes will continue to ramp up. So I would suggest if you can take the current guidance and work accordingly, that would be great.

Understood. And given that we have seen price increase in 4Q sequentially every month, fair to assume that the current NSRs would be -- or current ASPs would be still higher than what we delivered in 4Q?

It is. But yes, it's holding strong, it is higher. And at the moment, we don't see anything which is otherwise.

The next question comes from the line of Rajesh Ravi from HDFC Securities. .

My first question pertains to this tax impact of the 40 crore write-down in Australia. So does it have any tax impact on the reported P&L?

Yes. we have written down INR 1,433 crores, and that will save tax on that.

So this INR 840 crores is net of taxes or this is before tax. .

So INR 840 crores is on the Australia balance sheet .

Yes. So Australia .

And India level, we have written off INR 1,433 and that is subject to income tax benefit.

These are numbers. Gross numbers, you can calculate the taxes accordingly, right? Understood. And second is on the value-added product share that has come down to around from 66% Q-on-Q. Just wanted to understand the pricing gain versus the average price increase for steel, is it because this was tapered down also on account of lower share of value-added products.

No. I think I indicated earlier that actually ramping up, we're going to focus on both the things, capacity utilization as well as the value-add mix. What you need to also appreciate that value addition and value-added products is something which is built into our DNA and we continue to focus on that. And in times to come, it will come back to its normal robust levels and improve further. We also have additional capacities, enough labs in the plate segment on our heat-treated plates, which are doing very well, and they're also growing. So that will also add to our value-added mix.

Understood. And versus steel prices, what would be the concurrent increase that we have seen in the -- which we can expect for coking coal and iron ore prices in Q1.

Coking coal, I've already indicated is going to be about $20 to $25 increase in this quarter.

And for iron ore.

That's difficult to predict. It's a monthly thing that happens. So it's fairly difficult to predict without a net.

This is current price for April, basis, April prices, .

It's plus/minus INR 100, 150 here and there. So that's how it moves. But anything beyond that is very difficult to articulate all.

Understood. Understood. . And lastly, when you mentioned the slurry pipeline, INR 750 per tonne saving once fully ramped up. This is on the company level savings.

Yes.

Sorry, at steel live. Okay. Understood. .

The next question comes from the line of Mitesh Shah from HSBC Bank.

Hello, am I audible? This is Pinakin over here from HSBC. So a couple of questions. First, can you give us a time line of what are the key projects, which will be commissioned in '27 and '28.

I think the projects Cary will be commissioned in this quarter. We already indicated ports will be commissioned. And we have 2 projects left, which were indicated for this financial year, which were DRI2 and PP2.

Sure. So the DRI plant is what, Q2, Q4? How should we look at it? .

Is towards the end of the year. .

Okay. Second is if you look at Q4 volume sales of 2.62% and the guidance Effectively, it's fair to say that the Q4 sales is going to be the run rate for this year. I mean, sequentially, unlikely to see any big pickup in sales volume? .

I think the market is seasonal. So this factors in the seasonality as well.

The next question comes from the line of Ashish Jain from Macquarie Group.

My first question is of the variation. This cost savings from sludgy pipeline, which you said is INR 150 per tonne is on the full volumes -- the full steel volumes of the company, right? Like 10 million, 11 million tonne kind of number. Is that the way to think.

So earlier indicated at INR 700 per tonne of iNO coming in, which will translate to that kind of a number. But that is not dependent on it going towards the full utilization.

Okay. okay. Sir, secondly, in terms of our raw material security, where do we see Ares moving in terms of, let's say, in the next 2 years or so versus where we are on thermal coking coal and iron ore. And by security, I mean, tapped integration.

Yes. I think all our announcements are there. The new mines are also announced. So that's also available. So we have the coal mine and the on mine as I indicated. And the current capacities are already, I think, in the back for each mine. So if you want any further details, I think Vishal can take it offline.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Thank you. And once again, thank you for joining us on a Saturday afternoon. Overall, Jindal Steel is well positioned to benefit from the ongoing industry dynamics and deliver sustainable growth in the coming years. Thank you once again, ladies and gentlemen. I would like to invite you and thanks.

Thank you, sir. Ladies and gentlemen, on behalf of JM Financial Institutional Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.