NMDC Limited (526371) Earnings Call Transcript & Summary

He is not there in the meeting.

So we move to the next speaker who has registered. Satish Chandra S. Doshi.

I'm Satish Chandra Doshi, joined the meeting from Mumbai, sir. ID is IN30012610936033. Sir, firstly, congratulations on achieving record in physical performance. And I'll thank you for giving us the highest ever dividend. Sir, here are my few questions. If international -- the first one is, sir, we'll expand our capacity of iron ore production to 67 MTP in coming years? So will this help us to reduce the operational costs, sir? The second question is, sir, if the international iron ore prices goes down by 20%, how much of it we need to pass on to the customers assuming that the export duty remains the same and rupee dollar parity also remains the same? Now the third question is, sir, most of the steel expansion is being carried out by integrated peers, sir. So in such a scenario, how will we generate incremental domestic demand for our iron ore or are we going to export iron ore, sir? Sir, I have 2, 3 more questions, sir. The next one is, sir, how much amount are we expecting to be recovered against trade receivables from monitoring committees as we have made provisions for bad and doubtful dates, amounting to INR 2,800 crores approx as on 31 March '22 in the books? Sir, also, what would be the time frame of recoverability of this amount as the matter is pending with the Supreme Court? Sir, the next question is, we are expecting the demerger of steel plant to be completed by end of 2023. And sir, are we in line with this time line for the same demerger, sir? The next question is what is the probability that -- is there any probability that the additional royalty will be reduced or renewed by the government? And also, we have been served by a show-cause notice on Bailadila project, I hope I'm pronouncing it right, by the district collector amounting to INR 1,630-odd crores. So could you please provide details about the next hearing and your views on outcome of the same? And sir, a few days back, there was one news that the Supreme Court has relaxed limit on iron ore mining in Karnataka. So just wanted to understand what is the impact of this on NMDC? And the last question is, sir, is there any wage revision under consideration? That's it from my side.

Thank you, Mr. Satish. So may we have the next speaker from [indiscernible] Securities LLP. Mr. Navin Mohan. Do we have Navin Mohan in the meeting, please? Moderator, can you just check?

Yes, I am there. My name is Navin Bajaj. I'm from Delhi, New Delhi. I must congratulate you for all the social corporate responsibilities which you take up like the Hyderabad Marathon and all. It gives us very good publicity, and we are proud of that. Now my questions are, first of all, what is the record date for getting the shares of the NMDC steel company, which is demerged in the ratio of 1:1. What is the record date for getting that, please announce the record date soon. What is the listing date of that? And the time line given by the CMD was September of this year -- by September end, it will -- all the demerger process will be completed. Do we still stand by that time line? And the next question is how the price adjustment of these -- both these companies will take place once both the shares are listed simultaneously on the stock exchanges? What will be the process for that, please explain that? And the next question is, how will you add shareholder value to the shares? Any bonus issue in the offering in the near future? And most important question and my final question is regarding legacy iron ore subsidiary, which we have in Australia. When will that investment start bearing fruits and when will it start adding to the bottom line, and please explain that? And what are the prospects of legacy iron ore, just please tell me that. And are we going to surpass the EPS of previous year in the current financial year also? Are we going to surpass INR 32, can you please tell that? This is all I want to know.

Thank you, Ms. Navin. So may we have the next speaker, please. Mr. Vinay Vishnu. Is Mr. Vinay Vishnu in the meeting, please.

He has not joined.

So may we have the next speaker, [indiscernible] Bharatraj.

Mr. Chairman, entire Board of Directors. Happy to see you safe, healthy and fine, sir. Sir, under the leadership of our Chairman and Managing Director, Sumit Deb, a wonderful performance, sir. I congratulate you for making revenue of net profit, 60% increase, seeing reduction for the first time. Very happy and proud of you, sir. Under the leadership of Board of Directors, I congratulate to the performance. It's a wonderful result, sir. In NMDC, there is no black [indiscernible] I'm very happy, sir, and how i got you to [indiscernible] wonderful, sir. Sir, the highest paying dividend for this year, hand it to the entire Board of Directors staying in a high dividend, sir. Sir, I thank Mr. Parthasarathy and congratulating for becoming a Executive Director in Sales. Sir, all the best for the coming years. Sir, one thing I would say about is very humble and very humiliative person, sir. We're always accessible to 24X7. We never behave like a senior person. He is always [indiscernible] person. Thank you, Mr. Parthasarathy, for your wonderful services to our company. Mr. Chairman, what is your future plans, Regarding any acquisitions are there in coming all over the world for the mining side, you are planning to go to take over any coal mine or iron ore? Because in present scenario, the acquisitions are very important, sir. Nobody knows tomorrow, my NMDC are taken over by some other Indian company or Indian promotor, again, government intention is different now because they want to make everything privatization. So if you go more expansion, so nobody will dare to takeover our company, sir. So what is the future plans, sir? You are planning to takeover all over the world. So a lot of mines are there. And any future plans to enter into the China segment because the future is that lithium battery, sir. So any future plans to takeover the lithium mines are the type of work anywhere in the world if any countries are giving this opportunity. Are you entering into the big 5 because the future is EV, sir. So now only we should plan how to go into that future plan, sir. Once again, Mr. Sumit Deb, a wonderful performance, sir. Congratulate you. All the best for -- We are always with you -- I support all the resolutions, Mr. Chairman. Entire Board of Directors, these will be healthy, sir. Thank you, Mr. Parthasarathy, and entire team [indiscernible] for the wonderful services. I am Bharatraj calling from Hyderabad.

Thank you, Mr. Bharatraj. May we have the next speaker, Mr. Praful Chavda.

Sir, he has not joined.

Okay. So may we have the next speaker, Mr. Kewal Kumar. Registered speakers.

He has also not joined.

Okay. May we have Rohit Potti Prakash.

Am I audible, sir? Thank you so much for the opportunity. And congratulations to the entire team on such an excellent performance this year. A few questions have already been asked by the previous participants. So I'll try avoiding them. And my first question is on the Kumaraswamy mine. Congratulations on getting the lease renewed. I noticed on the annual report that we got a public hearing approved. We got -- we had a public hearing on the 22nd March 2022. So could you detail what the outcome of the public hearing was? And it's been 5 months since the public hearing has been completed. This is for the expansion from 7 million to 10 million, I assume. So what was the outcome of the public hearing? And have we begun the expansion? Are we getting increased production from the mine? And how long does it take generally after public hearing for us to begin production from a successful public here -- successful mine -- successful public hearing mine? So that's my first question. Second question is, sir, I think it's historically been our intent to have some mines in Orissa. Could you help us understand how that intent is progressing? That being -- I mean, Orissa being the largest iron ore mining state in the country, I think it's imperative that we have a presence there. So it will help us -- if you can share with us what the progress in terms of our expanding our presence in Orissa is going along? And sort of related to this is my third question. So I've been -- so I've read and heard that we might be interested in a public sector iron ore miner, which is -- which is present in Orissa, which has 3 mines with 5 million, 6 million capacity and which seems to be shut right now. And with RINL going for divestment, is that not a good opportunity for us to enter the Orissa state using -- I mean by acquiring that particular mine from RINL directly. My next set of questions are on the steel plant. I would like to echo some of the previous participant's question on when the demerger will happen? And by when do you think we'll get the shares in our account? Also, if you could give us a little more detail -- some more details on the steel plant that big [indiscernible]. So I understand the capacity is 3 million tonnes. So when will it be commissioned? When will we start producing metal there? And given the current area what is the production capacity possible in future -- to up to what extent can the plants be expanded to, from 3 to, is it 5 to 6, 7, it would be great to know that information as well. My last question is on capital allocation. Now with the steel -- if I see the last few years, the steel plant took up the line's share of our capital expenditure. We have spent more than INR 15,000 crore to INR 17,000 crores on the steel plant. Now the steel plant getting demerged, we'll have excess cash flow available. Does that mean that our dividend and buyback corporate actions will increase going forward? Or how do we see us using the substantially higher cash -- free cash flow that the company will generate for itself? Thank you so much for the efforts and -- for your efforts in running the company.

Thank you, Mr. Rohit. So may we have the next speaker, please. Mr. Saraaf Faisal Hawa. Moderator.

He has not joined, sir.

Okay. May we have the next speaker, Mr. Saket Kapur.

Thank you for this opportunity. Sir, firstly, to put things into perspective, as we have seen that the prices of iron ore, both lumps and fines are much lower than what our averages has been for last year. And also, if we could take the averages for the first quarter. And as Sumit sir categorically mentioned, that we are going to surpass the last year's top line. Correct me there if I'm wrong. So what are you factoring in, in terms of the realizations, when you are putting up the number that we are going to exceed last year sales realization and what should be our EBITDA margin band there? I think it was 43% last quarter. So what are we anticipating in terms of that? I think so, Amitava sir has already mentioned, and you also mentioned the fact that our detention money part is also going to benefit us in terms of that cash flow been now flown through the -- directly to the company. And also, I think so the NMIL money will also be coming in. So that would be the 2 additional cash flow. What would be the additional incremental cash flow out of these 2 activities? If you could categorically mention, taking into account last year's volume numbers, if you could give some retention money part? And also the NIML profit, how are the profit going to look like? And what the net cash which post-tax cash that is going to be received by the company, and we must have received that money by now. And sir, this half you mentioned about the current environment and we're ramping up our capacity and looking for better volumes for this year. But earlier, Srikar, Satish Ji, Navin bhai and Rohit sir had mentioned about the competition and also the other steel players going towards the integrated route wherein they were having their own iron ore mines, and government is also looking to come up with exploiting new mines to increase its revenue. So how are we prepared to sell the incremental volume that we are anticipating? And I think so our 2030 target is another big number. If you could tell us whether we are revising that target depending upon how currently, the export I think that export tax is a near-term issue as has been categorically mentioned by the government also. So your take also on the take, how much of that has impacted? If you look at your quarter 1 numbers, it is evident that there is a buildup in inventory. And I think so earlier in the March con call also, Amitava sir has mentioned that we have prepared better for the monsoon this time. So have our preparations worked the way we thought and how have the offtake been in the current month? Sir, I think so -- we missed the last interactions with our investors in the con call. I look at we continue -- we look forward for the continuity of the same family, and we'll definitely be interacting with the investors, I think so far pushed our half yearly number. So my question was the June quarter average was significantly higher than what the current month prices are, I think, so for both lumps and fines. What is the take on the game? How is the current year shaping up in terms of realization? Even the finance cost part has suddenly popped up. So [Foreign Language] INR 20 crores, now we are paying as finance cost. What is the reason, sir? How come -- we have to pay this amount financed cost on a quarterly basis, INR 15 crores to INR 20 crores [Foreign Language]. Sir, I remember you mentioned [Foreign Language] that will go away post, I think so this third quarter last year except. But even we posted losses for the fourth quarter and also, I think, so the same has happened for the first quarter and maybe due to this is again, the export tax has played it's part. But still, sir, what is our outlook for this year as a whole on how the pellet contribution is going to be? And coming to my next point, how -- what is our CapEx for this current year? How much have we spent till August? Or if you could give us any [indiscernible] on the event date? And how much are we about to spend? And what are the new facilities or the new things that are going to get streamlined in the current year and your target for FY '24? In terms of the improvement in the efficiency, I think the third steel plant at Kirandul is also on the anvil. And also, I think the update on this slurry pipeline, if you could give sort at what kind of CapEx? Sir, I also congratulate Deb sir for completing the 10K Marathon. We could see the spirit and you leading from the front, sir, so congratulations. Health is the priority for everybody and you are leading by an example. Sir, the Nagarnar Steel plant, all demerger shareholders have spoken about it. So I think so we are at the culmination point now. So please throw some more light. [Foreign Language] Even after testing this delay, I think so it is 1 of the fastest demerger that is happening in corporate India. I may be wrong on this, but what I get from this my calculation is that we are nearing doing a commendable job on that front also. Sir, coming to our interest in the coal mining. So where are we in terms of what have been whether any mine have been allocated to us, I think the risk mitigation step we are taking? And also, sir, remaining -- in the iron ore segment, [Foreign Language] other than that, [Foreign Language] What should pellet forms -- in terms of our revenue mix? And also, sir, as earlier speaker, [indiscernible], I think you mentioned about legacy iron ore, I include also ICVL investment. What are these 2 investments, INR 5 crores, INR 7 crores [Foreign language] what are these investments using us? And what is the update? Are we going to continue holding on to them? Are we strategic? Or what's the thought process going -- Whether we put more money? Whether we would monetize it? Or how is this going to benefit us in terms of any uptake agreement? [Foreign Language] Sir, I think so -- and the capital allocation is definitely a very, very important aspect now since the burden of the steel plant -- there will be no further CapEx I think required. I think the last [Foreign Language] INR 5,000 crores [Foreign Language] So how is the cash flow going to utilize? My most point is, sir, when you are looking at FY '23, FY '22 was a historic year in terms of record prices for iron ore. And it was very much evident that these prices won't sustain for a longer period of time. But the type of correction it has come currently. And the type of flattening we are seeing also in terms of the steel because of this export. So this double [indiscernible] how are we conditioned to passthrough -- cushion ourselves to passthrough this year. Taking into account, we are targeting higher sales volume terms and also as explained by deb sir that we are going to -- our top line is going to surpass last year number. So bottom line [Foreign Language] I summarized it once again for the benefits. And in case of any follow-up, sir, I request the company secretary to provide an opportunity. In case if we find that some point is missed, we are given an opportunity to interact. And I hope to interact with the management and request the management to continue with the conference call going ahead. Thank you for the time and the patience to hear me -- bear with me. And thank you once again.

Thank you, Mr. Saket. So very informative. So we may we have the next speaker, Mr. Sajan Joseph. Has Mr. Joseph has joined? Moderator to kindly check.

Thank you for the opportunity, sir. My questions have already been asked, but what I was interested in learning is about the coal operations. How far have you been progressed in the coal operation? I'd like to congratulate the management for what they have done with the steel plant. [Technical Difficulty] bit of a lapse from the management, they decided it could'nt be commissioned by Q3, but it has been delayed. So I would like the management to be a little bit more cautious when they're giving out time lines. Because that if the time lines are not met, then it is considered negatively for the business. The last question was around dividend policy. I would like the business to be consistent with their dividend policy. It helps long-term investors. Thank you.

Thank you, Mr. Joseph. Thank you for your brief questions. The Board has written down and taken consideration of this thing. We also have one more registered today only. But being a large shareholder, I thought I should give him an opportunity. Mr. Mahmood Farooq. Is he there in the meeting, please?

Sir, he has not joined.

He has not joined. So we'll run through the list once again for some of the people who we have missed out in the total list of all the shareholders, for the benefit, if they are late logged in into the system. So may we have Santosh Chopra. Moderator, please?

Sir, he has not joined.

Mr. Vinod Agarwal Ramesh.

Sir, he has also not joined.

Mr. Ramesh Shankar Golla.

Not joined, sir.

Mr. Kamal Kishore.

[Foreign Language]

Thank you, Mr. Kamal Kishore.

[Foreign Language]

Thank you, Kamal kishore ji and Suresh Jain. So we may we move to the next speaker, please. Mr Krishnan. Do we have Krishnan in the meeting, please.

He has not joined, sir.

So i think we have covered with majority of the speakers.

Thank you. With this, we conclude the question session from all our shareholders. Now I hand over.

Now I hand over back to our beloved Chairman and Managing Director, Sri Sumit Deb to kindly take on the questions.

While we provide the answers to the question, I request the team to play the corporate video.

It showcase the work, done by NMDC team during the last year. [Presentation]

So we will now begin the answers to the questions. I request our Chairman and Managing Director to kindly lead the discussion.

So good afternoon, everyone. Now we have listened to the questions, all of them. And we are -- I would like to clarify some of the issues which have been raised. So first of all, if you look at the future and the future prospects of the company, the company has a vision to grow to 67 million tonnes from the current levels of 42 million which we did last year. And this goal -- the 67 million, we will do in 2025, and 100 million tonnes in 2030. So these are the vision. And basically, this is for iron ore, obviously. But then we have also -- we are also venturing into gold in Andhra Pradesh, where we already had a lease. So -- and we have got a favorable order from the court, so we'll start operations there. And the company is also looking at exploration in Madhya Pradesh and other areas also where we are prospecting for minerals. So this is an ongoing activity, which we do currently. From the current levels of operation, we have also some mines in Chhattisgarh under NCL NMDC Chhattisgarh, NCMDC Limited. So these are things which are an ongoing operations of the company. We have operations -- obviously, there was a question raised on legacy iron ore, legacy also, we intend to start mining very quickly that is magnetite iron ore mining project, and we would like to do it in a joint venture with some local mining companies there. So this is about the future prospects and the activities which we are doing in NMDC. There was a question on the demerger. Demerger, we had committed to an end of -- in September. So that, hopefully, we'll be able to complete this thing. In Orissa, we -- of course, we talk to various states in the country for allocation of mines under 17A. So Orissa is also one of the states which we have been talking to with regard to mining since it is the largest state in the country -- largest mining state. So we are talking to them with regard to allocation of some mines where we have already prospected for. For example, Malantuli is one mine in Orissa, which we have done prospecting. So we are talking to the state government for allocation of those mines to NMDC. So currently, there was a question on whether there is a sufficient demand in the market with regard to iron ore post most of the steel players getting into allocating or bidding for mines. So what I believe is that the steel production in the country currently is around 120 million tonnes. So now going forward, the vision is to -- of the Steel Ministry is to go for -- to touch a level of 300 million tonnes of capacity and production of 250 million tonnes. So there is, I believe, sufficient demand in the country. NMDC in the past couple of years have not been exporting iron ore. So this is also one area which is available for us. But then there is sufficient demand domestically to for disposing of these additional volumes. I do not see any difficulty in trying to dispose of these volumes -- additional volumes from 42 million to, for example, 67 million and then 100 million tonnes. Sufficient demand exists. There has been some duty implications, which have been -- the central government has brought in, whether in terms of in steel or in iron ore, low-grade ore. But these are all targeted to curb inflationary tendencies, which I have mentioned in my opening remarks, the inflation, current levels of inflation had gone up. So that is why -- these have been -- there the government has brought in these policies. So going forward, once the inflation levels cool down, then the government can have a relook at the policy accordingly. So this is about the market scenario and our expansion plans and our future vision for the company. So that was one thing which. Then about the commissioning of the steel plant. The steel plant, obviously has been considerably delayed once. It's a hugely complex plant, 3 million tonnes making flat products. And Mecon has been our technological partners. And currently, we would like to -- like I mentioned, that the company is getting demerged, but we have to start commissioning of the plant, that process has already started. We have heated the -- heating of the cocobuns is an irreversible process. So once you start hitting the cocobun, you need to push start pushing of the cocobuns which is the start of the plant. So we would -- we are starting to -- the operations cocobun batteries, we are going -- we are hopefully, we'll start in this month and then going forward to commission the other blast furnace, the steel melting shop and things like caster and mills. So this is a process which has already started, and hopefully, we should be able to commission the plant in this financial year. So that's about the steel plant, our coal operations and the iron ore. And the environmental issues will be addressed by director production. Meanwhile, Amitava Mukherjee, our Director of Finance, he will answer the questions which have been raised on the financial matter.

Mr. [indiscernible] had asked why the miscellaneous expenditure for INR 1.4 crores. These are essentially because of excess provisions written off. These are the number of entries, but a lot of excess provisions in small amounts where there and they have been written off after the receipt of actual liabilities against these provisions. The -- another question that he raised was provision of doubtful debts, why has that gone up? As you know that 20% of the sale amount was provided for, 10% for SPV and 10% for expected credit loss, in our -- from our sales in Karnataka. And the sales in Karnataka had gone up from 75 lakh tonnes to 150 lakh tonnes. And also the average prices as compared to previous year had gone up from INR 2,200 per tonne to INR 2,600 per tonne. And that is why the provision of doubtful debt had increased in the -- in our books. Similarly, advertisement and publicity expenditure had gone up by INR 9 crores, from INR 12 crores to INR 21 crores. This is because post pandemic, there were a lot of events that we could sponsor and a lot of other things where we could have a corporate mileage, a lot of other events happening, whether we had other opportunities for corporate advertisement. Other income has actually doubled. This is mainly due to an increase in interest income from INR 156 crores to INR 289 crores, that's an increase of INR 133 crores. where our normal deposits have gone up to about INR 8,000 crores as on date. Mr. Santosh saraaf asked for demerger and so did Mr. Navin. Regarded -- requested for having a record date for issue of shares of NSL to our existing shareholders. Now the hearing on the second motion application has been completed a few days back and we are awaiting the orders of the company -- of the Ministry of Corporate Affairs. Once they are received, there is a 60-day time line for registering the new shares of NSL in the stock exchanges. But the first step would be that the board would be meeting and deciding on the record date. Unless the Board meets, we cannot speculate on that. If it can be -- it will be meeting only after the orders of the company law board are issued. Mr. Joshi asked for trade receivable from Monitoring Committee, which was at INR 4,233 crores, of which INR 2,800 crores is against the 10% towards ECL, which is to be refunded to NMDC once the Supreme Court allows it. The rest of the money is regarding normal dues, which will be realized once the last consignment of the parties who have bought it, they lift their material. What happens is party, for example, buys 10,000 tonnes of material. Unless he left the entire 10,000 tonnes, we do not get the money back from the Monitoring Committee. Although the party deposits it to the monetary committee. But even out of the 10,000, if 9,500 has been lifted, we do not get proportional amount of money. We get the entire amount of money, once the entire 10,000 tonnes have been lifted by that party. So out of this 4,233, minus 2,800 is the normal dues as and when the dispatches happen, they will be received by NMDC. Demerger, I've already mentioned, additional royalty is now a statutory part, and it is not likely to be withdrawn because that forms a part of the statute that we have to pay 150% of the royalty accordingly. Contingent liability of sector of Bailadila INR 1,600 crores is related to common cause judgment where we have approached the high court against the judgment against the -- not against the judgment, but against the position of demand of INR 1,600 crores from the -- on the Bailadila sector. Wage revision, we have started already providing for because it is for nonexecutives, it is due from 1/4/22. And accordingly, in Q1, we had provided for INR 21 crores in our books. EPS, as you said, was -- in last year, it was 32. And depending on the profit, we hope to maintain the same EPS levels this year also. Regarding capital allocation, as you are aware that the current year target for CapEx is INR 3,512 crores, of which INR 1,500 crores is for NISP and the rest for other capacity enhancements that includes majorly slurry pipeline and SP3 major projects. So these are provided for INR 2,000 crores. We have already spent INR 962 crores as of date. And on NISP, we have spent around INR 21,000 crores till date. So even after the demerger, when our free cash flows will not be applicable to the financing of NISP that, in any case, would be -- now we have major projects of slurry pipeline more than INR 3,000 crores. The SP3 projects more than -- almost INR 3,000 crores. We will have slurry pipeline Phase 2 also, which will be around INR 7,000 cores, INR 8,000 crores on a ballpark estimate. And then we have major projects like shifting our -- shifting 2 of our crushing plants. So there will be enough projects to apply our free cash flows and enhance the capacity and the earning of the company. As Mr. Saket Kapur had mentioned that whether our EBITDA margin would be at around 43% brand. You are correct that our EBITDA margin would be retained at around 43% brand, considering that almost 15 -- almost 19.8% is going to 20% is going towards royalty and DMF and enmity. Another 22% is going towards the additional royalty and anything between 10% to 11% would be our OpEx. So if we calculate that, around 43% EBITDA margin would -- should be maintained at current level of prices. And -- you also said what would be the additional increase in cash flow due to abolition of the monitoring committee. As you know, that 20% was being provided for, 10% towards ECL and 10% towards SPV. SPV we still continue to pay. So 10% will be released. As you -- last year, we had provided for around INR 962 crores. So half of that INR 10 crores will be obviously coming to NMDC straight from the customer so that INR 481 crores. So depending on the volume around INR 450 crores to INR 500 crores would be the addition to our net profit and cash flow due to evolution of the current mechanism of the monitoring committee. And you have raised a question of why Finance, Mr. Kapoor [indiscernible] said why finance cost has gone up to 15 -- by around INR 15 crores to INR 20 crores. This has to be seen in conjunction with the increase of interest income of INR 133 crores because whenever we invest surplus funds, and then we need some for our own operations. We have 2 choices, either to break the FDs or to take ODs against these FDs. So ODs these FDs are generally cheaper instead of rather than breaking these FDs and used for our operations. So that is why the finance cost has gone up by INR 15 crores to INR 20 crores, but this has to be seen in conjunction with the increase of interest income of INR 133 crores. Dividend policy, Mr. [indiscernible] Joseph had mentioned regarding the dividend policy. As you are aware, that the government -- the DPE guidelines say that at least 30% of your net profit or 5% of your net worth has to be paid as dividend. NMDC has been consistently paying higher than that. Last few years, the average payout has been in the region of 45% to 50% of the net profit. They have either gone as clean dividend or has gone up into a combination of buyback and dividends. But the net outflow from the net profits has been around 45% to 50% over the last few years. The dividend policy has been fairly consistent, and the payout to shareholders has been in the range of 45% to 50%. I believe that covers more or less all the aspects, and we thank you for noting that this is one of the fastest and the cleanest demerger process that is happening. And I don't think there were any further questions related to finance. And I now hand it over back to Chairman, sir, for his comments.

Now I would request Director of production, Mr. Mohanty to address issues with regard to environment and basically issues with regard to monsoon et cetera.

Yes. Thank you, sir. As I go accordingly is actually Mr. G. Santosh from Hyderabad. He has raised certain queries regarding our mines are located at tribal areas and what are the steps we are taking for the local area development. There, I would like to bring out that we are providing all the infrastructure developments in the area, especially road and other networks. Then we are also providing support for agricultural requirements of the local people. And we always give free medical and education facilities to them. And mid-day mill system also it is there. Then we provide to the local like training facilities like nursing then mechanic and electrical and other subjects, they are getting good placements also. Recently, 100% placement is seen in the case of the girl students those who are taking training in nursing. Then mechanic and electrical, they have been observed by Maruti. So that area, we always look into that. And education, we provide them quality education through our system like Chhoo Lo Aasmaan, where we bring out experts from outside to train them. And also Mr. Santosh has asked about the environment issues, what are the things you do take care. In a mining operation, generally, we are having air, water and sound pollutions. So those are being taken care. Like we do plantation work in and around that area, where we have planted around 3 million trees till today we have already planted. And to avoid the water pollution also, we have concentrated check dams, retaining walls, gallon rains and then other things to check the water pollution. At the same time, we go for geo coir matting also to conserve the soil. And in the drilling also, we observe with wet drilling method, we follow so that less amount of air pollution will be there. Then ETPs and SCP's are also there to take care of the affluent, which is being generated and has been taken care of. And if I come to Mr. Rohit Potti, he has put one question like [indiscernible] Mining that public hearing for 7 million to 10 million tonnes, which has done successfully and the queries which has raised has been already addressed. It is already in the process. Already mining approval has been done from 7 million to 10 million, and we are already in the process. It may take around 5 to 6 months' time to increase. And recently, Supreme Court also has increased the area limit from 28 million to 35 million tonnes. Hopefully, we'll be able to get it through. And Mr. Saket, he asked some questions regarding to coal mining. We have been allotted 2 number of coal mines. One is Roni coal block and [indiscernible] coal block in the state of Jarkhand, that Roni is a coking coal and [indiscernible] is steam coal. And we are already in the process. Since there is a difficulty in getting the land clearances over there, we are now processed through going through CVT routes, coal-bearing act route. And hopefully, by another -- this year-end or so, we'll be able to go ahead with this. And maybe next year, we will start our activities there. We are already in the process and. Mr. Sanjay Joseph have also asked about this coal operation. This is all about it. And yes, thank you.

Thank you, Mr. Mohanty. With regard to environment, NMDC has a lot of focus on the environment, and we are constantly on the lookout for looking at ways and means to improve and reduce pollution. So in fact, we have planted almost 3 million trees have been planted since inception of the mining activities, in fact, around 1 lakh trees have been planted in fact, in this year only under Azadi Ka Amrit Mahotsav and various other programs. So a huge drive has been taken for plantation of trees, like I had mentioned. So environment is a very, very key focus area for NMDC. Now with regard to our future plans of -- we have already -- there was a question by Mr. [indiscernible] Bharadwaj for a lithium mine. So -- we applied for a lithium block in Karnataka, which is now we are pursuing. Obviously, this is on a PL only exploration stage. So this is something very important for us also since it is being battery mineral. So this is -- whether in the country or whether abroad, we always are on the lookout for these strategic minerals. With regard to legacy also, we plan to start our gold mining activity, the operations. We intend to start very quickly in legacy other than the iron ore mining project. Apart from that, we have implemented various programs with regard to improving our efficiencies during the monsoon season. Most of the benefit will accrue from next year onwards where, in fact, are the measures we have taken will actually bear fruit in from the next year -- next monsoon onwards. So these are some of the things which we plan to do for us. I think all the questions have been answered and by us and now -- thank you Parthasarathy. Members may note that the voting on the NSDL platform will continue to be available for the next 15 minutes, there for members who have not cast their vote or yet are requested to do so. The Board of as has appointed the Hanumantaraju Practicing Company Secretary as a scrutinizer to supervise the e-voting process. Further, I hereby authorize the Company Secretary to declare the results of the voting and place the results on the website of the company at the earliest. The resolutions are set forth in the notice shall be deemed to be passed today subject to receipt of requisite number of votes. Thank you all for attending the meeting, and I hereby declare the proceedings as closed. And I would request Mr. Parthasarathy to do the honors for the vote of thanks. Stay safe and stay healthy. Thank you.

Thank you very much, sir. I wish to place on record my sincere appreciation and thanks to the Chairman and Managing Director, Sri Sumit Deb saab. Despite his busy schedule, has made it convenient to conduct this proceedings of the Annual General Meeting. Our Director Finance, Sri Amitava Mukherjee, sir; Sri Somnath Nandi, our Director Technical, sir; our CDK Mohanty, Director Of production; Sri. Sanjay Tandon -- despite not being disposable completely, has joined us to attend the meeting. He is the Chairman of the Audit Committee also and he is leader in the Board. And his contribution is very immense on the entire operations of the company. And we also -- I would also place on record my sincere appreciation to Sri Vishal Babber, Dr. Anil Kambli and Sri Sanjay Singh. The shareholders, the government nominee by the President of India, Sri Gopala Krishnan on behalf of the President; and Madam -- Smt. Sukriti Likhi, Government Nominee Director on the Board of the company for the successful running of the company and to achieve the remarkable heights, both in terms of production and sales and various other parameters which have been discussed and placed in the annual report. The company is on a very ambitious growth plan, and the Board is very much geared up to achieve the targets of the company and of the government of India, and this Azadi Ka Amrit Mahotsav year of the Government of India. I thank all the Department HODs, Executive Directors, Chief General Managers, GMs of the company and all the teams working in our mines in remote locations at various -- despite the various difficult conditions of the company and who have worked for the preparation of the annual report and also for the successful running of the company for the year '21/'22 and the conduct of the AGM. I thank once again, everybody, for having made it possible to come in take some questions on the board. The Board is always having an interaction with the shareholders. It's not a onetime interaction of the Annual General Meeting. Every quarter, our directors and the CMD and the DF take some time out along with other directors to address the shareholders. You please keep active and please give us more questions so that we are also geared up for answering what earlier queries are there. Hopefully, that we'll have a better year for the '22-'23. And with this, I remain and thank you very much. Jai Hind.