Congratulations on great set of numbers. My first question, sir, is on the capex. So on the slide, there's an announcement for the alumina smelter and even the copper. So just want to know all the 3 individually, what is the capex you're looking at? And over the next 2, 3 years, how is the scheduling of the spends lined up? Satish Pai: Yes. So Sumangal, the 2 smelters, which I have to say are both brownfield because the aluminum smelter expansion is in Aditya and the copper smelter is in Dahej. So both these will be roughly 1 billion each. So on top of what we have already declared, if you put 2 billion, so we are roughly going to be between 4 billion and 5 billion of declared projects. And majority now are going to be on the upstream side because we finished most of our downstream projects and we are going to let them ramp up. Now these projects are going to happen over the next 3, 3.5 years. So we believe that over these 3 years, we will probably use the cash we are generating, but also probably in India, we'll probably have to add debt of about INR1 billion to INR1.5 billion over these 3 years. This taking into account our sort of zero net debt-to-EBITDA place where we are now, should be fairly comfortable for us to manage. But we believe that the way we are and the demand we see for aluminum and copper and the fact that we'll be largely doing brownfield expansions for smelting, I think we should take advantage of our strength of the balance sheet and our market positions. Sumangal Nevatia: Sir, just to get some more details. So FY '29 is the year when you expect these projects to kind of come on stream, so 3 years of gestation, '26, '27, '28? Satish Pai: Yes, I think that we are saying that the aluminum smelter should come on stream in October of '27, and the copper smelter will be in '29. Sumangal Nevatia: Understood. And sir, the refinery? Satish Pai: The refinery will be also more or less coming on stream in '27 calendar year. Sumangal Nevatia: Okay, FY '28. Got it. Got it. And sir, given this smelter will be powered by renewable energy, what is the cost difference at the hot metal level we are looking at? And generally, for these 3 projects, what sort of IRR are we baking in?

Yes. I mean, as you know, Sumangal, the IRR will depend on what sort of LME you're assuming. But even with our conservative estimates, we will be in double-digit IRR. And I think the power cost, because 3 years out, when we look at the blended power cost in that whole Aditya complex, it's not going to be much higher than the inflated rate of coal cost that we had seen so far. So if you take our current power cost and you use the normal coal inflation of 5%, 6% that we see every year, this power cost is more or less in that same line. The only difference being the renewable power then gets fixed at the same rate for the next 20 years. Sumangal Nevatia: Understood. Understood. If I may just ask one more question. That is on Novelis. So there's been a lot of investor concerns now after this caution on scrap spreads, which we spelt out at the time of Novelis results. Is it possible just to quantify in the near term what sort of pressure are we looking at in terms of impact on margins, EBITDA per ton at least in the near term, I mean, some quantification would be very useful, sir. Satish Pai: Dev, do you want to take that? Dev Ahuja: Yes. So, Sumangal, this is exactly where we don't want to go right now because we are the size of the situation. We want to be responsible, if we say anything. And if we force ourselves to quantify anything at this stage, we'll be making an error of being either the too aggressive side or too conservative side. So we are trying to ensure, trying to size up the situation and see where spreads go. We need to see one of those cycles. So you'll have to hold off that. And as soon as we have some clear visibility, we will come back. I mean, once again, I only say this, that there are a number of mitigation action on at this time in pipeline, and we are going to accelerate action. But in terms of -- to give any quantification, we would rather wait. Sumangal Nevatia: Understood. Understood. Just to stretch this point in a different direction. Scrap prices, which used to be around 60%, 65% of Midwest and U.S., is around 70%, 75% now, and this used to be the case 5 years back. So are we -- I mean, of course, the litigation efforts apart, are we looking at structurally over the next few years, scrap prices now being in the range of 75-odd percent like the previous review or we expect this also to go back to 60%, 65% of what we see during COVID years?

Well, so what we have is short-term visibility on everything that we see on the macro with the range in the China policy. So in principle, if the China policy stays the way they are talking about it and reason to believe that they will pass away from that, then spread and scraps are going to stay elevated. There is also more competition coming for scrap which will also mean that there will be some pressure on scrap prices. So these are things that at least from all the visibility that we have will be there. Our job at this point is to just accelerate all the mitigation actions open our new sources of supply and thereby mitigate the insight. So without getting into specific quantification, which would not be very responsible on this stage, this is a direction I can give to you. Sumangal Nevatia: Yes. And just one last thing. As a thumb rule, is it possible to explain the 5% or 10% higher scrap prices, how does it impact EBITDA per ton? Dev Ahuja: No, due to specifics of that guidance, Sumangal. No. I mean, we don't want to get into that quantification. Moderator: We have the next question from the line of Amit Murarka from Axis Capital. Amit Murarka: Just going back to the Novelis question. A lot of our contracts are contract based on contracts, right? And if my understanding is not wrong, a lot of them are on a cost plus basis as well. So in that context, just wanted to understand like is it also a case or possibility that sometime down the line, the higher scrap pricing in a way is passed on to the refreshed contracts that happen with the customer, like how we saw for energy inflation? Dev Ahuja: So are you asking if scrap prices are also going to have some pass-through impact? Is that your question? Amit Murarka: Yes, yes, yes. Dev Ahuja: Well, so I think that we need to be clear about the operating model. When it comes to inflation though, they are related to operations, as far as metal is concerned, we pass on the price metal cost and market premiums anyway to the customers. So, therefore, there is no case for passing on anything more than that. I mean the business model is really to pass on aluminum prices.

Okay. Okay. So it's only the energy inflation at all, which is part of the contract and the scrap prices and the differential of the scrap prices basically all flows into your P&L then? Dev Ahuja: Yes, it's not just energy inflation, by the way. I mean we have PPI clauses. So it is more overall inflation. We have specific energy inflation pass-through clauses, that's a fact. But the general way the contract is structured is that they have PPI clauses, which cover broader inflation rather than the energy inflation to the extent. Amit Murarka: Understood. Understood. Okay. That's very clear. And also the guidance that was there for the longer term where you have said that you have visibility to $600, does that also hold or you would also be willing to kind of reevaluate that and come back later on that? Dev Ahuja: Yes. So as we have been saying that in the term, we did have a very clear understanding scrap prices will go up with more competition and all the other factors. So that was something that we have factored in, in our long-term projections. Our hedges are more because of the accelerate the scrap price increases that we have been seeing. So to your point, in the longer term, we had factored in strengthening of scrap prices. So once again, as we see the markets evolving, we will come back if we want to talk about new, more particularly on the short-term guidance. On the long term, we have a lot more confidence because there are no new factors which we did not already take into account entering that guidance. Amit Murarka: Sure, sure. That's very assuring. And just on asking question on the India business. Mr. Pai, this may be to you. So what was the COP in this quarter for aluminum? Looks like it's fallen Q-o-Q. So could you just spell that out and also give a guidance for Q3? Satish Pai: Yes. So as I normally give, I'll tell you that the COGS for this Q2 was down by 1.6% versus Q1. The guidance for Q3 is that it could be up by about 1% to 1.5%. Largely, we are seeing the coal spot premiums go up a little bit. So I think that Q3 could be up by 1% to 1.5%. Amit Murarka: Okay. And in terms of the captive coal mines, what will be the status of Chakla, the startup of that?

So, Chakla, we are right now in the sort of forest clearance stage 1. That's where we are. Meenakshi, we will be starting the exploration -- Meenakshi West, we'll be starting the exploration program in the coming months. And on Meenakshi itself, we are still waiting for the allotment to happen to us. Amit Murarka: And any time lines for the start of the production from these lines? Satish Pai: Yes. I think the Chakla, we are still hoping to do a box cut sometime in the latter half of next year. Amit Murarka: Calendar year you mean? Satish Pai: Yes. Amit Murarka: And Meenakshi, maybe from the Meenakshi West, maybe '27, is it? Satish Pai: Because that's an exploration block, yes. Moderator: The next question is from the line of Amit Dixit from ICICI Securities. Amit Dixit: Congratulations for a good performance. I have 2 questions. The first one is again on copper division. We have seen that the copper EBITDA as from INR400-odd crores per quarter, now it is upwards of INR800 crores for 2 quarters in a row. In your prepared remarks, you highlighted that there is 1 one-off gain. If you could reiterate that. And also, what kind of a sustainable performance should we consider for this division? TTRC is down, but still EBITDA just keeps going higher. Satish Pai: Yes. I think that the copper chain, because it is so wide, I mean, this quarter, when the government reduced the duty on gold, we had quite a lot of extra gold sales. I mean, we cleaned out our inventory and selling the gold. Sulfuric acid prices were stronger than what we expected. So some of these tailwinds were there. So I think that still, we talked about this question. Q3, Q4, we stick to a guidance of around 650. Amit Dixit: And what -- is it possible to quantify that one-off thing in this quarter? Satish Pai: We don't really want to just give you an exact number for that. But if you sort of take that into account, our guidance going forward is around 650.

Okay, very well. The second question is on downstream EBITDA return. Now while sales have gone up, you mentioned that market was favorable, but adverse product mix cost EBITDA per ton downstream aluminum to go down further. So just want to understand what could be the trough level? Are we really seeing the trough levels here? And what are the product mix pressure exactly in which all sectors we are seeing it? Satish Pai: By the way, the EBITDA per ton, if you see sequentially and all, has been smartly going up. It's not been going down. I think that we are talking year-on-year, it looked a little bit lower. But I think that what you're going to see, what happened this quarter is a lot of imports came in because people were -- are expecting the QCO to have an impact on imports coming in. So there was a lot more imports. But I think you will start to see Q3 and Q4 this EBITDA per ton starting to pick up quite nicely because the local demand is quite strong. Amit Dixit: Okay. Sir, is it possible to let us know the coal mix for this quarter mix. Satish Pai: Yes. The coal sourcing linkage was 50%, e-auction was 47%, and our own mines was about 2%. Moderator: The next question is from the line of Indrajit Agarwal from CLSA. Indrajit: Congratulations on a good set of numbers. My question is on the alumina demand supply balance globally, while you gave a great picture of what is happening in aluminum and to an extent in copper as well. So where is exactly the bottleneck in alumina globally? What is keeping prices elevated? And by when can we expect things to normalize at alumina level? Satish Pai: Well, I think you must be following, Indrajit. So you had this disruption of bauxite supply from Guinea, then Alcoa declared a force majeure on their alumina project in Brazil. So all these have sort of caused that tightness to happen in the market. So unclear to know when it will get sorted out. But that is what has caused the alumina prices to jump to $700 per ton right now. Indrajit: And what is the kind of contracts that you have? Like is it how much is the long term? And if it is long term or contracted, what is the duration of that contract? In the sense that what is the kind of realizations we are seeing on alumina sales currently? And what can we see in the following 2 quarters?

Yes. I think that most of our alumina is on an N -1 pricing, which means benchmark minus 1 month and about 20% is on spot. So 80% is on that N -1. So I think that in this third quarter, you will start to see the full benefit of the higher prices. Moderator: We have the next question from the line of Tarang from Old Bridge. Tarang: Congrats on a very strong set of numbers. Couple of questions, one on Novelis and the second on the capex plans at Hindalco India. So on Novelis, while it's too soon to call out when the scrap dynamics might work against us. But structurally, there are negative changes in scrap dynamics. Then from a supplier's vantage, how amenable are customers in absorbing cost push going forward? Satish Pai: Dev? Dev Ahuja: So here's the thing, the fundamentals of the end markets are great. To your point about customers absorbing, well, I mean, we are having contracts ahead of us, which are at much higher prices. And that was all something we had already conveyed to all of you saying that we will see higher prices are coming. Probably, just give us the positive demand supply dynamics. There could be some more price upside as we look forward, particularly on the beverage packaging side. That is as far as the price side is concerned. The rest is what I said earlier. But we don't have so much worries around inflation and cost path. They're all built in into the contract as far as metal is concerned. Actually, as per the contract, the customers always pay us the cost of prime and local market premiums, that is about all that we can expect. So that's really how the business structure works. For us, it is about really spurring the problem, but investing in new scrap sources, that's solution to the problem including investing in technologies and really first investment in supply chain. So that's really the solution to the problem, and that's exactly what it's working on. I hope that helps. Tarang: Okay. I'll probably connect off-line because I was losing you in the middle, but I get a gist of the answer. But for more clarity, I'll connect offline. My second question for Mr. Pai. Sir, India capex, there are 2 sets of capacities that are getting created. Your allocation towards, say, backward integration in coal or the alumina refinery are actually fairly lucrative capacities from the point of your IRRs. But the same math probably doesn't hold to with all the downstream investments that are coming through. And even for a copper smelter because at 300, 350 Kt, $1 billion investment translates to about $3,000 per ton, given that it's a reasonably working capital-intensive business at the current margins, the matches doesn't add up. So I understand that the blended IRR for all these projects is positive. But the question really is then would it not be more lucrative for the business to probably focus on the upstream capacities like alumina and copper -- sorry, alumina and say, coal right now and hopefully wait before allocations to the other capacities. I mean how do you look at it strategically on the financial side? How are you looking at this? Satish Pai: Yes, I think that's exactly the point. I mean we -- these projects are going to come on stream 3 years down the line. And if you look at the growth rates for both aluminum and copper, copper is actually more stuck because India has got a big deficit. So we have a copper rod capacity of 500 Kt, and our copper smelting capacity of 350, and we are putting a new rod mill. Because India needs more and more copper rod. You cannot make rod if you don't have cathodes. And just today, cathodes are coming into India from Japan and elsewhere. So if we look at the projected demand for copper in India, we are going to get some amount of copper from the recycling facility and some amount from the smelting because the downstream end of it, as you said, when you put together, it makes a lot of sense because of the rate at which the copper usage in India is going up. Now, the 180 Kt of aluminum is the same story and the sense that we are going to make it with renewable energy, low carbon, high purity. And for that, again, there is quite a lot of demand and we're getting good premiums on that. So we think that these -- both these investments, when they come on stream 3 years plus. With the rate of growth for both aluminum and copper that we are seeing, we think we're going to be in a good position. Tarang: So you're essentially looking at probably a reasonable amount of margin expansion by the time these capacities come through, and therefore, it's probably not prudent to look at it from a rearview lens. Would that be the right way to look at it? Satish Pai: Especially for copper. If you take today's TC/RCs and say, are you putting up a smelter, it makes no sense. But if you look at it of taking that cathode-making copper rods and copper fuse and all the downstream, where the conversion premiums are high, then 3 years down the road when TC/RCs also pick up a bit to normal levels, you will see that it makes a lot of sense. In fact, I usually believe that the downturn is the best time to invest if you have the balance sheet strength. And that is what Hindalco has in India right now. Tarang: Got it, sir. And sir, last question. I mean, if I look at China's demand supply balance for aluminum now, looking at the data for the last 18 quarters and for last 18 quarters, almost 17 of 18 quarters, they have been at a net deficit with demand far out shipping supply. Where you are -- whereas in the world ex China, you have a contrary positioning, where supply is far exceeding demand. Is there -- I mean, is there something that can be made out of this trend, what's happening there and what's not happening in the world, if you could give us a sense? Satish Pai: So it's a very interesting question. So 2 important points there. One, you're absolutely right, China is running at a deficit. And that deficit today is being met by Rusal's 1 million tons of aluminum coming in from Russia. The second point is that they are -- they seem to be quite serious about the 45 million cap, and they don't want to do more coal-fired smelting expansion. So what they have done, which has impacted Novelis is that they are now putting in lot more scrap melting capacity. So nearly 20 million tons of scrap melting capacity is being put up in China, and hence, a lot of scrap is being bought in there. So this is the 2 things that we have to make out. Now, over time, China has been using more than 50 million, 60 million tons of aluminum. They will have enough scrap of their own. But in the short term, it is creating a tightness in the scrap market because they're bringing this capacity on stream. So these are the sort of broad things that are happening. Moderator: The next question is from the line of Parthiv Jhonsa from Anand Rathi.

Just to take the Indian capex point forward. I believe somewhere a couple of quarters back, you are indicated in 1 of your analyst meet that the capex is around $760 million, which has now been revised today to about, say, $1 billion. So is that reading correct? Or am I missing something out here? Can you please explain this in detail? Satish Pai: Yes. I think that, again, you're absolutely right. I think on the smelter side, we had put it at around $800-or-so-million. And yes, as we get in the current pricing. I mean even this $1 billion to, be fair, I'm just taking a round number. We are working on the capex. We have to get the quotes and then as we get clarity, we'll give you the exact number. But there is a certain amount of inflation on the equipment as well. So I think that as soon as we get the capex sorted out. And as we are using renewable energy, we do have to do some additional steps to use that renewable energy in Aditya. So all those are adding into the cost. Parthiv Jhonsa: All right. Sir, I just wanted to get some clarity because I think I missed earlier in the remarks, the current hedge is around 30% at about 2,570. And then you have additional 3% at a bottom of 2,262 and a ceiling of -- what was the ceiling, sir? Satish Pai: Yes. The ceiling is 2,547. It's a zero cost collar that we had put in quite early on, I think, last few quarters mentioning it. And on the hedging point, we have also now hedged about 14% for next financial year at 2,700. Moderator: The next question is from the line of Ritesh Shah from Investec. Ritesh Shah: A couple of questions. Sir, first is you explained nicely on the copper rods and hence, the need for the smelter. But then also there's a linkage to TC/RC. And TC/RCs, you did indicate that it has been actually dipping a bit. What gives us comfort on TC/RCs 3 years out specifically given and copper demand, it's just like a blue sky scenario? However, when it comes to concentrate supplies, is there comfort that we have, which gives us confidence and putting on the smelter looking at the value-add demand? Satish Pai: In fact, very interestingly, some of the big miners are already in discussion with us to sign up long-term contracts for the smelter expansion because they need to -- they also want to diversify earlier from China. So there are new mining capacity coming in. So this is very cyclical. If you go back and look at TC/RCs, generally, they will go down for a period of time in this case, copper prices go up and a lot of new mining capacity comes in, and then TC/RCs picked back up to reasonable levels. So from the outlook we have and talking to the miners, they are quite interested that in India, we set up this smelting capacity, and they are actually ready to give us long-term contracts with even a flow of the TC/RC in the initial years. Now, the other thing you will see is that some of these marginal custom smelters in Philippines and all will probably shut down due to this low TC/RC. Certain amount of that cleaning up will also happen. Ritesh Shah: Sure. And sir, my second question was on scrap. You did indicate that China is looking to process some 20 million tons of scrap, I don't know, I think the year is 2025, 2026. So the question is, does China has this sort of scrap processing capacity? That is one. Secondly, I think Dev did indicate that one of the mitigating variables as we focus on technology. I remember we have a recycling center in Germany, wherein we have like 18, 20 different types of scraps that we process. Is it something very different to everybody else in the world, which gives us an advantage of certain type of scrap wherein we will still enjoy a higher discount to LME? And is that number significant to help us tied through this particular crisis. And I have a related question, sir, first, if you please answer this one? Satish Pai: Steve, do you want to take that on the different types for scrap and the impact? Steve Fisher: Yes, sure. So on the first question, China has been setting up the recycling capacity over the years and continues to. And so the quantity increase continues to come online as they open up the border to take in more different types of scrap. So they will have the capacity, as Satish said, their cap on primary aluminum production at 45 million metric tons and start to produce downstream aluminum through recycled material. As far as technology, yes, we do have new technology at our new automotive recycling center at Guthrie, working with Sortera. We have put new -- we worked with another company with robots that we put in at Berea. And so when you talk about different technologies, a lot of these technologies are sorting technologies in order to take on dirtier types of scrap or to be able to sort pre- and post-consumer automotive scrap to get the right alloys that today, if we could not take that sortation in. We would not have the ability to consume that scrap. So it is increasing the different types of scraps that we can process at our facilities, which will make a big difference. It's just going to take some time for us to continue to scale these technologies and put them through -- put them into not only the new plant, but into other plants that we already have made existence. So lots of work going on with our R&D and ops groups, partnerships across the world to find ways to continue to get more different types of scrap that we had not been consuming at Novelis, which does give us a competitive advantage. Dev Ahuja: Sorry, keep in mind one more thing that there is like 750 to 800 kilo tons of scrap in the U.S. that goes into landfill, as demand for scrap goes up, economics of really preventing the scrap to go into landfill becomes very, very attractive. And there is more investments coming in to prevent scrap to go into landfill. And so we also expect that given the opportunity, there will be more opening up of this scrap that's now going into landfill, so that will start become available in any case. I mean, it's just attractiveness of doing that. So there are a number of mitigating factors besides all the things that we are doing, which will help. Ritesh Shah: Right. Sir, just to scratch on this a little it. You have always indicated that we did expect this coming. Now given we have the technology to process different types of scrap, can you give some broad numbers on total market sizing for scrap? And out of that 1 million tons, what part of that 1 million tons is something that is unique to us that we can also process, which is more dirtier or the competition can't process? Just trying to have some comfort on the sourcing and the underlying economics. Steve Fisher: Yes, it's a significant amount of scrap, but -- go ahead, Dev. Dev Ahuja: No. On the quantification, I'll just answer that question. So you can think about this that -- and we are talking about U.S. because a lot of the focus is on the U.S. markets like there would be about 1.5 million tons, half of it are going to landfill. And so the other half that typically comes into the market, which are grabbed by all the current convenience of scrap, the quantification of the scrap volume that we are talking about. And then it's about the way you can further get out of the 750, that is not coming to us today. So that's really what it is. But let me hand it over to Steve to add anything more. Steve Fisher: No, just besides what's going into landfill, there's other types of scraps that are getting down cycled post-trade vehicles that that's the sorting technologies that we're putting in to be able to take back some of the aluminum content that's in those vehicles back into our process. And so both pre and post-consumer automotive scrap types that are coming. So there's a very sizeable amount of scrap out there that with the right technologies, we can bring into Novelis. But again, this will take time to scale into our operations. So it will take us some time. Ritesh Shah: Sir, recently, I think there has been an amendment in Europe pertaining to regulation of paced shipments. I think that's also something, which is likely to alter the scrap trade patterns. How is it that we are looking at it? Are we looking at European spreads to be far higher as compared to North America going forward? How are we thinking about this? Steve Fisher: Are you referring to scrap flows? Or are you referring to primarily aluminum flows? Dev Ahuja: No, no, we're talking of the scrap flows from Europe that probably restriction that don't allow European scrap to come out. Steve Fisher: Yes. I mean, we do expect a number of different protectionist activities that is going to alter trade flows as it relates to scrap. And this is the other factors have gone into our thinking of we need to see stabilization of some of these trade flows as well to understand what some of those impacts are so that we can more articulate with our ability to tell you how and when the margins that we've achieved in our business will come back, ultimately bring this up to that $600 per ton on a longer-term basis. But we anticipate there will be disruption in trade flows due to protectionist activities. Moderator: The next question is from the line of Ashish Kejriwal from Nuvama Institutional Equities.

Two questions, one is in light of our recent announcement of putting our smelters, aluminum and copper, what could be your capex guidance for FY '25, '26 for India? Satish Pai: You're talking about the guidance for next year. I think, see, next year, it's going to be probably around -- we have not finalized the plans yet, but it's going to be more like INR7,000 crores, INR8,000 crores is what next years will be. This year, if you remember, we have guided about INR6,000 crores, and I think we're going to be around that number. Ashish Kejriwal: Okay. And sir, in this quarter, is it possible to quantify how much alumina we have sold and at what rate? Satish Pai: Yes. We sold 170 Kt. Let me we just confirm. 197 Kt of third-party alumina we sold in Q2. Ashish Kejriwal: And at what rate, sir? Blended rate, if possible? Satish Pai: We don't give out blended rate. Ashish Kejriwal: Okay. No issues. And lastly, sir, in this quarter, how much hedged volume was there? Because earlier, we used to have 22% at 2,550. So, is that the same in the second quarter, which we realized? Satish Pai: Second quarter was the same, the percentage hedge was in Q2. Yes, 27%, yes. Ashish Kejriwal: So 27% was hedged at 2,550 in this quarter? Satish Pai: Yes, 2,539. Moderator: The next question is from the line of Prateek Singh from DAM Capital. Prateek Singh: The question is for Steve and Dev. So basically, first, I want to understand what is the kind of lag that we see between scrap procurement and that flowing into our numbers? So the reason I ask is, given that the scrap prices have gone up sharply of late only and you had earlier mentioned that this will flow through to 3Q and 4Q as well. So from my understanding, in 2Q, we saw an impact of ballpark $40 per ton due scrap tightening. Do we see it worsening further so they are perhaps maybe even $50, $60? Or do you think it would be even higher? I understand you're not doing any guidance, but the lag would kind of help us get a sense as to how much more impact would be on the coming quarters. Dev Ahuja: I was starting to hear the question, at least the first part I mean broadly, what I understood was from the second part after whether we expect Q3 and Q4 impacts to worsen, but can you please clarify the first part of your question again? Prateek Singh: Yes. The first part was largely on what kind of lag do we see between the spot scrap prices that we see right now between our procurement. So is it 1 or 2 months kind of a lag or a quarter kind of a lag so that would help us in kind of tracking the scrap pricing getting a sense as to what kind of an impact can be in coming quarters? Satish Pai: So, Dev, he's asking from procurement to usage of scrap. What's the time difference, how many months? Dev Ahuja: Okay. It was a lag. Okay. So between procurement and the scrap coming back, broadly, there's a 60- to 90-day lag can win in seasons, but let's say, 60 to 90 days is a reasonable time gap between the can leak and then coming back to us as we will see. Prateek Singh: Sure. So which kind of needs that the scrap prices have gone up very recently over the last 1 month or so? The impact of $20 per ton that we saw in 2Q can be worse in 3Q and 4Q? Not given any guidance, but just a bit of sense if I'm correct in that way. Dev Ahuja: Yes. So to be clear, in the short term, we do expect some worse scrap prices. This is what we have been saying on our earnings call also, there could be some worsening. We are watching. We are in uncharted directory right now that there's situation, so we will see where it goes. Keep in mind that what we will see in Q3 is also going to be a seasonality impact. Q3 low by now probably is a seasonally low quarter, given annual shutdowns just given that there is lower pull in this quarter. So keep in mind, Q3 will also have a seasonality factor, but to be very specific to your question, yes, we do think that there could be some working in Q3 and Q4 due to a bit of factors that we have discussed.

Sure. And my last question is on my reading about the Europe flood impact. When you say that there's an impact of around $25-odd million on 26 Kt of capacity, that kind of implies an EBITDA per ton of $1000-odd per ton for that facility. So given that Europe is not in a very great environment, can we assume that once Bay Minette comes in, we will have our price negotiations also, happened by that time, Bay Minette's profitability would be decently higher than what we are seeing at Sierre right now, which appears to be $1,000-odd per ton, but -- or is that calculation not entirely correct on my part? Dev Ahuja: Well, no, I think that you're kind of going in a bit of a tangent here on assuming the Sierre impact and the EBITDA per ton because that had a contribution element to it. I mean the fixed costs have gone below the line. So the $1,000 per ton EBITDA would not be a right calculation. Also, there is a blend in that of automotive, some specialties and some impact. So be careful before implying any calculations in that month. But let me go to the other part of your question, which is about Bay Minette. So in Bay Minette, we have been pretty consistent that Bay Minette comes at a much higher price, at a much lower in cost and will be significantly more profitable from a margin accretion perspective. I mean directionally, we have already said earnings call that about $1,000 per ton is a very, very reasonable expectation from Bay Minette alone. Moderator: The next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Pathanjali Srinivasan: I have a couple of questions. One is for the FRP, battery foil and closures that we are coming up with capacities, what would be the margins for this and also in terms of capacity, would they be interoperable between AC coated or battery enclosures? Or how would it be? Could you explain a bit on this? Satish Pai: So on the battery foil, aluminum battery foil in Aditya, it's about 25 kt. So that makes battery foil and can make other types of foils, which is fungible. And as far as the margins go, we think they are pretty good, but we are not going to give you the number there. Pathanjali Srinivasan: Sure. So the overall addition is about 200 Kt. Is that correct?

No, 25 kt of aluminum battery foil plant that is being put up in Aditya. The battery enclosure plan, which is, we set up in Chakla in Pune is to make the enclosures for the batteries that go into SUVs. So that has just come on stream and starting to ramp up for one of our auto customers. Pathanjali Srinivasan: Okay. Got it, sir. Sir, and one more thing. With respect to our coal prices, could you tell me like what was the increase in premium for us for e-auctions and all in the last couple of quarters. Is there any change? Because general thing, what we were noticing is that the auction prices are tapering down. So what you said was slightly different from what we are noticing. Satish Pai: No, the Q2, actually, the coal prices were slightly lower in fact, I mean, they were flattish with Q1. So that's why our cost of production was quite good. In Q3, as we get in some of the auction prices, it's only in the NCL region, not in the MCL in the Orissa site. You remember we have Renusagar and we have Mahan. In those places, we are seeing a little bit of the auction premiums being higher than what we saw in Q2. It's not very much yet, to be fair. Pathanjali Srinivasan: Okay, sir. Yes. Got it. And last question, just on the capex guidance that you've given. So can you just tell us what would be your capex guidance numbers for '26 and '27 for the India business? Satish Pai: So I just -- I think previously, I said that next year will probably be about INR8,000 crores. '27, you'll have to wait because we have to see how these projects actually start and how the cash out happens. So this year's guidance of INR6,000 , we will be around INR6,000. Next year, right now, we think it's going to be around INR8,000. The year after, you will have to wait. Moderator: Ladies and gentlemen, due to paucity of time, we will take this as our last question. For further questions, you can connect with the Investor Relations team. I now hand the conference over to Mr. Satish Pai for closing comments. Over to you, sir. Satish Pai: Yes. Thank you very much. I think that 1 point I probably wanted to highlight, I mean, we have gone through all the businesses. The India business is seeing pretty good numbers. Novelis, just to repeat, had a very good Q2 compared to most of its competitors. The forward-looking scenario on the scrap spread was a little bit not that good. But my point that I wanted to make is the integrated model of Hindalco between upstream and downstream means that some parts can have headwinds, some parts have tailwinds. And that's why when you look at our consolidated results, we are doing very well compared to most of our competitors in the industry. So just wanted to leave you with that comment, and thank you for your attention. Moderator: On behalf of Hindalco Industries, that concludes this conference. Thank you for joining us. You may now disconnect your lines.