Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Vikash Singh from PhillipCapital.

Sir, you mentioned that the prices have started to decline from June. Just wanted to understand what are the current prices with respect to 1Q averages? How much it is down?

Prices of what?

The steel product s basically Pellet, Billet, Wire Rods and HB wires, including Ferromanganese, which you would like to tell us.

The prices have corrected by around 6% to 8% as compared to the first quarter average.

Understood. And correspondingly, the cost of production, any guidance in terms of production in the cost of product numbers? The coal, iron ore cost for you?

There remains a time gap. In the falling market, it takes some time to get corrections into the raw material prices.

So as of now, we haven't experienced anything. Sir, if you could give us spot basis then it would also be okay for me.

Spot basis, the iron ore as well as the coal cost which you woul d experience versus 1Q averages?

There has not been any material correction in the raw material prices when you compare with the Q1 average.

Understood, sir. Secondly, we spent INR150 crores in 1Q. I wanted to understand the overall FY'25 capex, how much is left for spending?

It should be -- total capex should be somewhere in the range of INR700 crores, out of which we have already spent about INR150 crores in the first quarter.

Sir, we have done -- we have almost completed the hydropower thing. So remaining money is going where,if you could give us an idea?

There are three coal mining projects, then we are doing this waste utilization project in Vishakhapatnam, then turbine replacement project is going on. So major capexes will be going towards the expansion of three coal mines.

Understood. And any timeline for these coal mines to start production?

As we stated in our opening remarks, first will be the Shahpur West Coal Mine. So , we will start working on that mine once we receive the forest Stage 2 clearance, which we expect to get within the current financial year. And remaining mines will take time to get started, but land acquisition and all other processes will be going on where we will be spending money on those projects. Then in addition to that, we have solar power project also which is going on.

Understood. Sir, just one last question. For Gare Palma IV/7, we were in the process of increasing the limit for the mining capacity. Have we received it or at what stage we are in?

Currently, the mining capacity is 1.44 million tons. We have already got the EC for increasing it to 1.68 million tons, consent to establish and consent to operate, we'll get it in this quarter.

The next question is from the line of Balasubramanianfrom Arihant Capital.

Sir, regarding our Raipur captive power plant, it's been shut down in last quarter. So, it's in the progress of overhauling FBC, boilers and turbines. So, when do you expect re-startproduction in this unit? And hydropower project is also expected to be operational by this quarter, and what's the status on the project side?

That was statutory overhauling that was done. So, it has again, restarted, I mean. So the Raipur captive power plantone of the turbines was taken under shutdown and boiler was taken under shutdown for statutory overhauling, and it is again restarted. And what was your second question?

As mentioned, the 25-megawatt Rehar hydro project will be commissioned in this quarter. And the target date was considered 31 March 2025 and we'll be commissioning it in this quarter.

Got it, sir. Sir, also, we have placed 30 -megawatt TG set to save the energy under carbon footprint side. So, when we can expect it to be operational and what is the status on that?

Right. So, we have already given purchase orders to BHEL a nd it will take at least 24 to 28 months to commission that. BHEL will take 18 months to supply us the turbine. And we have to take a shutdown and we have to change it. It will take 24 to 28 months.

Got it sir. Thank you. I will come back in the queue.

Thank you very much. The next question is from the line of Rakesh Roy from Omkara Capital. Please go ahead.

First question regarding, sir do you see more margin improvement in coming quarters, sir?

It depends upon the market condition. As we stated in our opening remarks presently the prices have gone down. And the correction in the raw material pric es is awaited. So as of now margins as compared to the first quarter are on the lower side, but how the things move post the rainy season and how the developments come in it depends on that.

My next question sir we see a sharp drop in pellet, billet and wire rod volume numbers -- sales volume number. Is this due to demand or pellet import?

No. We have already stated in our opening remarks also , the production of b illet was intentionally curtailed to supply power on the IEX for merchant sale where we were getting better realization or better margins.

Okay. So, you supply power to the IEX instead of making billets?

We have captive power plant. So, we cut down our production of billet and whatever the surplus power we could have, that was sold through IEX.

And sir, how is the current scenario for July?

There have been ups and downs , in between we get the opportunities to sell for a few hours. It's not that throughout that is happening because presently it's rainy season. So comparatively the power demand remains on the lower side.

Okay. So, can we see again the production be normalized from Q2?

Yes.

Okay. And sir can you give....

It remains normalized, b ut in between if we get the opportunity to sell power at high prices again we may decide to cut production of steel. And as far as raw material prices are concerned that question has come in between. So, in case of manganese oreMoil has reduced the prices from 10% to 27%. For higher gr ade, it is in the range of 10% a nd for lower grade they have reduced prices by 27% in case of manganese ore.

Okay. Right, sir. And sir my next question sir can you give some detail about the power projectof SKS? Where is it and how much time it takes be cause it's already more than [inaudible 18 39]has happened.

The matter has been heard by NCLT after revert from NCLAT and everyone is waiting for the orders.

Okay. So we expect by September Q2 we'll get the order?

Yes. Hopefully, that should be clear. Maybe by end of this month or latest in this quarter.

Okay. And sir, one –last question, our net debt stood at INR1,300 crores?

No, net debt is 0. That is gross debt. Net debt is 0.

Okay. Gross debt is INR1,300 crores.

That is gross long-term debt.

Okay. I understand. And sir your comment on sir steel demand in terms of looking for imports from China, how you look in domestic consumer demand probably in the next 1 year?

Manish ji?

So the steel -- see I'll tell you something, the government is very clear on infrastructure boost and they are planning for infrastructure development in a big way. And going forward the imports which are happening from China and from FTA nations will be looked in by the new steel ministry w hich is just in place right now, b ut they have not yet formed up any proper protocols for the same. They are looking into it because there has been a sharp rise in terms of imports and especially through the FTA routes, so they are planning some policy but we are all waiting for that policy. That should be out in the next couple of months.

Thank you. The next question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.

Congratulations for good numbers. In fact, there was a little doubt about the turnover, so you told us that you sold power by reducing the steel.Will the problem of steel settle in the next 2-4 months?

No, it will not. It will not settle in the next 2-4 months.Because the Chinese economy is also in doldrums right now, they want to come out with some stimulus in terms of consumer spending, and they're looking at their rates, interest rates and everything. But with the ongoing multiple issues across Russia, Ukraine, Gaza, Palestine, all these things, I think -- and with Japan, we have seen what has happened in Japan. I don't think within the next 2 or 3 months, things will be resolved because WTO matters are quite huge in terms of duties and FTAs are also in place. So ,the government -- the Steel Ministry can only take cognizance of the fact that there has been sharp rise in imports. But at the same time they have to coordinate it with the Ministry of Finance, DGFT, DGTR, regulations, everything. So it is not that simple that it will happen in 2, 3 months. But they are definitely planning to put some QCOs in place like for Ferro alloys we already have a QCO in place.

Okay, for Ferro alloys it is there. That is the reason your Ferro alloys prices have not gone down.

No, that is not the reason. QC O is basically quality control or der. So , everybody who's exporting to India will need to register themselves in the system BIS, so that is a little long - drawn process and kind of a lengthy process. So , they are trying to see and they're trying to curb cheap imports in to India, which are not quality oriented and all those things. They're looking into all those things now.

So ferroalloy will be imported sir?

LittleFerro alloy gets imported. We are getting imports of Ferro silicon from Bhutan and we were getting Ferro Moly, which had an inverted duty structure but it's now been removed. So , all these things are taking place and the ministry has just formed.

But the prices of Ferro alloy have not dropped that much?

No, Ferro alloy s prices have also dropped. Ferro alloy prices have also come down considerably. At the same time, Moilprices have also come down.

So, means margins it is more or less.

Yes, so the margins are intact it is okay, because prices will go up and down according to the demand and supply.

Correct. And will SKS power be within 1 or 2 months?

That Mr. P.K. Jain and Nilay Joshi can comment upon that.

Sir, the matter has been heard in the NCLT court and it is reserved for order. So , we are also awaiting the outcome.

I would say 99.99% is in your favour.

Going by the precedent,you may say that

No, we don't have any intention of raising funds.It is just an enabling resolution. We are taking the enabling resolution every year. If we ever need it…

We know that sir.

We don't have any plan to raise funds.

But SKS will come, right?

SKS will come. We have taken Enabling. We will decide at an appropriate time. As of now we don't have any plan in the immediate future to raise any funds.

Thank you very much. The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead.

Sir, SKS acquisitions, what is the status on it. It's under NCLT. And how much capex we are planning for this operation?

For?

SKS. Thermal power plant.

SKS has no capex in immediate.In immediate we have acquisition of an operating plant.We will be acquiring it. As of now, no capex is involved . It is a running plant, which we are acquiring.

Okay. Sir, after acquisitions, what kind of capacity we are targeting?

That we will decide independently after getting it. So , it will be very difficult to comment on that at the moment.

Ok sir got it.

As of now it’s a 2*300 MW operational thermal power plant that we are acquiring. The matter is sub judice and reserved for orders. So, once it is resolved then we will be able to comment.

Okay, sir. So post elections, like what kind of revamp on the operations side? Because I heard a lot of companies are facing issues because of shortage of laborers. So, like post-election, how you are seeing the operations level especially on the labor.

We are operating at normal levels.

Thank you. Next question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.

Sir, I had a question, is power selling has better margin than steel selling?

Because when SKS comes to us now?

Yes.

So, from that point of view, I was just asking.

The power market is strengthening year-on-year. Power prices are going up year -on-year.So, the demand for power is good and the power prices are going up.

Thank you very much.The next question is from the line of Atul from ULJK. Please go ahead.

There are a couple of questions from my side. First question is on, as you know, global situation is not good due to China factor, especially China is facing issues in Real Estate part. Domestic story is good, sir. So how do we foresee second half of FY '25 ? Is it a similar performance will be continue d or we can see some improvement in coming quarters on the revenue part?

As far as volumes are concerned, those will remain at the normal levels, whatever operations we have achieved that will continue. So far as pricing is concerned, the markets are volatile and projecting in advance for the second half may be difficult, how the China story evolves and how the overall other scenarios, geopolitical conditions evolve, then interest rate scenario, there are multiple factors that will decide the future course of action.But so far as the operations are concerned, quantitative performance or operational performance is concerned, it will remain at the normal level throughout the year.

Got it. Sir, second question is on the profit side. We have been following a backward integration strategy. We are using our own mining and power plants now. So going forward, though there won't be any top line growth or even a moderate growth. Do we see further profitability improvement or situation willpersist under current level?

Top line one is the addition on account of the increase in the capacity of the coal mine. Another is the commissioning of our hydropower project and the third one is the commissioning of our waste utilization project . Waste utilization project will be coming next year only.But for the current year, there will be 2 more additions on account of the increase in the coal mining capacity and starting of the hydro power project.

Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.

Thank you, all the participants of this con call. To summarize, our diversification has resulted in better performance during volatile times. The commissioning of 25 -megawatt Rehar hydropower project this quarter, the 50 -megawatt solar power project and waste utilization project will help reduce our carbon footprint.Starting 3 more coal mines and hydropower projects will drive our future growth. Please feel free to reach out to us or our IR team with any further questions. Thank you all.

On behalf of Sarda Energy & Minerals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.