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Jindal Steel And Power Ltd
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Ladies and gentlemen, good day and welcome to the Jindal Steel & Power Limited Q1 and FY '21 Earnings Conference Call hosted by Prabhudas Lilladher Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Kamlesh Bagmar from Prabhudas Lilladher Private Limited. Thank you. And over to you, sir.
Yes. Thanks, Faisan. Good afternoon, all of you. On behalf of Prabhudas Lilladher, I welcome you all to the Q1 FY '21 Earnings Con Call of Jindal Steel & Power. And I wish all you a very safe and a COVID-free environment. And without much ado, I hand over the call to Nishant Baranwal, Head, Investor Relations. Over to you, Nishant.
Thank you, Kamlesh. Good day, everyone. I hope all of you are safe and everyone around you are well. Thanks for joining us for this conference call to discuss the first quarter FY '21 financial results for JSPL. Today, we have with us our MD, JSPL, Mr. V R Sharma; and our MD and CEO of JPL, Mr. Bharat Rohra. To begin the call, I would request Mr. V R Sharma to start with his opening comments. Thank you.
Good morning, friends and dear investors. I'm V R Sharma, Managing Director of JSPL. The company has been passing through a very challenging time in quarter 1. On 22nd of March, Government of India declared the lockdown for the country. We sat together as to what policy we should make, how to combat the situation. To our rescue, Ministry of Steel came on 24th of March and they declared steel industry as essential commodity industry. That gave us a boost, and we started working on how to continue the plant. And many of our peer group, they had already reduced the production at that time or some of the projects -- some of the plants were closed down. But we continued our plant and we switched doors from a domestic market to the export markets. So that was a change theory. And in 3 to 4 days' time, we had sleepless nights and -- but we could book orders from Europe, from Middle East, from Saudi Arabia, from Latin America, from Africa, and then finally, we came down to Southeast Asia and also China. So to our good luck, the situation changed further.Government of China declared projects worth $1.7 trillion for the infrastructure growth post COVID in China, post Wuhan, and that helped us. They had a shortfall of about 2 million tonnes in every month. So we being in the very close vicinity of China, the give out time was 7 to 10 days' time and the freight is also low. So they preferred us to be a regular supplier to them during this period than to buy from Turkey or from Ukraine or from Russia. So that was a geographical advantage. And the other advantage was that lockdown period was declared pan-nation, pan-India. And we were unable to move the material to the customers within the country. So that saved us, Government of India came forward, Ministry of Steel came forward, Ministry of Railways came forward, and we started moving our goods to port. And on the return, they were bringing our raw materials which were at port and also the iron ore from the iron ore mines in the nearby areas. So that has helped us. And during this COVID time, the entire country was struggling and there was an economical crisis everywhere. And the iron ore miners, they have lot of stocks, and they started selling iron ore at a very, very competitive price. So that helped us to bring down the iron ore prices and to bring the material in our plants.Railway was pretty empty, I would say. They were free. So on call, they were in a position to supply the railway rakes. Similarly, when we were exporting material, the port authorities, they have played a very significant role. They didn't stop their operations. And they also welcomed our move, and we were in position to dispatch 250,000 tonnes in the month of April, 401,000 tonnes in the month of May and another 262,000 tonnes in the month of June. So put together, 900,000 tonnes of sales we had done. We produced in India 1.67 million tonnes. We sold from India 1.52 million tonnes. On a consol basis, we produced 2.03 million tonnes, and we could sell 2.07 million tonne in this COVID time. So whatever we produced, we sold. So there was no inventory carryover by the end of June. So everything is in place.The company is working very smoothly with a very less inventory. We are maintaining very lean inventory as of now. And the major markets have been to -- for the plates, actually, it was Middle East and also Saudi Arabia and the Western European countries, like Spain, Germany, France, Italy and also Denmark. And for wire rod business, we could do substantial wire rod business in Southeast Asia. And also, we supplied rail blooms to France Rail because their Ascoval plant, their steel plant was down. So they were looking a good partner for supplying the rail blooms to them so that they can produce rails out of the rail blooms and they can at least satisfy their customers in Europe. So Rail France came to us. We had a contract with them. We signed an MOU for 250,000 tonnes of rail blooms per year. So we could do 17,000 tonnes in a COVID time in the month of April, then another 13,000 tonnes we had done in the month of May. And now every month-on-month basis, 13,000 to 14,000 tonnes of vessels are going to France.So similarly, because the China was not active in Middle East, and Korea as well as Japan, they were not active in the markets of Saudi Arabia, Bahrain, Qatar and also to UAE. So all of their oil-based power plants, they were starving for the plates, so we supplied them plates, so they came for our rescue and we could manage our business very well. So all these 3 months, we could do -- we could enjoy a benefit of economy of scale. We could enjoy a benefit of pricing falling down in terms of coking coal, PCI and other coal from Australia and from America. We could also enjoy a period which was very challenging for the iron ore miners, and especially and particularly those miners, those who are losing their iron mines, and they'll be handing over, phasing out in the next 3, 4 months' time. So this is where we got the benefits.We could reduce our cost of production by virtue of reducing cost of space, cost of maintenance, and overall an increase in the productivity. And our OEE has leaped to more than 92%, so we kept -- continued the plant. We didn't stop our steel melting and steel manufacturing. Crude steel was at full. And this is how we could do 1.67 million tonnes. In the current quarter, that is July, August, September, we are aiming to surpass our previous records. We did 1.67 million tonnes in the month of -- in the 3 months of Q1, and we are planning to do 1.8 million tonnes in July, August, September. In October, November, December, we are planning to reach 1.9 million tonnes. And the last quarter of this financial year, that is Jan, Feb, March 2021, we'll be 2 million tonnes. So this is how we are aiming to. And we could increase our EBITDA level from INR 10,600 to INR 11,700 per tonne. So that is a great jump in the EBITDA level. And this EBITDA has -- is because of the sustenance in our operations. And that continuity of our mills, continuity of our production, continuity in supplying the goods to the ports and finally to the destinations, different destinations, that has helped us in bringing our overall cost in terms of cost of overheads, cost of transportation, cost of shipping transportation, cost of freights, and of course, the cost of energy in terms of imports of coking coal. So that has helped us. We could reduce our debt burden from this by INR 1,562 crore, which during COVID time, we have paid back to the banks, and we are committed that in this financial year, we'll be in a position to reduce our debt level by INR 5,000 crore to INR 5,500 crore from the existing debt level from the basically from our accruals. So this is what we are aiming and we are contemplating to.Oman side, you know the news, subject to approval of our shareholders, subject to approval by the Oman lenders, subject to approval of the banks in Mauritius, and subject to the approval of the statutory bodies, all the regulatory bodies in India or in other countries, we are aiming to divest -- we'll do the divestment as declared. The Board has accepted the divestment proposal. And if all the approvals they come, and then this divestment deal will be done. This will also bring down our debt level at least INR 6,000 crore to INR 7,000 crore. So our aim is to bring the company to a level of INR 15,000 crore of debt by 2023 and we will be producing at least -- we'll be generating at least INR 12,000 crore of EBITDA in 2023 and our overall sales turnover will be more than INR 50,000 crore from steel business. So this is what our aim. And I'm sure we'll be in a position to do it. It is not a target which is too far away. If everything goes well, we will be in a portion to do it.As far as the overseas -- other overseas assets are concerned, we are interested to be a part of the India growth story. Today, we have seen our -- honorable Prime Minister, last night, he spoke to the U.S. business houses. He has invited the U.S. business houses to come to India to spend and to invest in insurance sector, to spend in housing sector, to spend in infrastructure sector, to spend in different sectors. So not with insurance, but the 3 areas what he spoke other than insurance are a great interest to us. One is the housing sector. At the housing sector, if FDIs come, that means more and more steel will be consumed, more and more steel -- cement will be consumed. And the world is moving. The India is moving towards special steel housing; special steel in commercial buildings and offices, office spaces. So the company like JSPL will get benefit because we are majorly into the infrastructure steel manufacturing. We are not a commodity steel manufacturer.The another area is the defense. If the defense FDI, they are coming, most of the defense manufacturing companies, they do come in India, then the steel plates, the specialty steel plates will be required in defense, which we are ready to and we are already approved by Ministry of Defence. And we are already supplying for very, very critical and very supercritical projects in the country, and which are very confidential, I cannot share, but this is what we are doing already. So all of the cryogenic vessels, all of the specialty plates, all the plates for tanks, for the armored vehicles and for everything, we are ready and we are already supplying also, and we can ramp up our production in times to come.The other good thing is that first time in the history of the country, we could give a big challenge to the companies from Japan and also from Western Europe in the head hardened rails. So we have got the first order from the Kolkata Metro Rail that is we had to supply them head hardened rails. 50% of order is bagged by us and 50% has gone to a Japanese company. Similarly, from Pune Metro, we have got already the orders. We have got 50% orders from Pune Metro for the head hardened rails, which are the specialty rail nobody -- no one else produces in the country, even the Steel Authority of India has not yet started this production. And 50% has gone to a European company. So we are getting 50% business from most of the metro rails.Now thanks to honorable Prime Minister and Ministry of Steel, they have already declared that up to INR 200 crore of projects, the Indian companies are to be preferred, and there's no need to go for the global tender. If they don't go for global tender, then, I'm sure the 22 metro rails which are coming in the country in next few years' time, so we will get majority of this share. If not 100%, at least 90% we'll get. The 10% may go to Steel Authority of India because we feel that in next 2, 3 years' time, they'll also start manufacturing the head hardened rails. But otherwise, 100% business we'll win within the country. And since we are the pioneer in this particular project, we'll be in a position to service and partner. So this is how we are managing the business.Business outlook looks very good. And we'll be in a position to maintain our EBITDA level in times to come also. And we'll be in a position to reach to a level of about INR 15,000 crore debt level by 2023 and aiming to reach our -- to bring our EBITDA level to INR 12,000 crore. We are not finding any difficulty in this. As far as the CapEx is concerned, we are not entering into a major CapEx area. We are -- we've spent only a meager amount, over INR 110 crore and we are not -- we don't intend to spend too much of money in CapEx. We want to reach to first 8.5 million tonnes from India and we are sure that we'll reach the 8.5 million tonnes in 2021 Q2. And once we reach to 8.5 million tonnes, our sales turnover reach to INR 50,000 crores. And this is what I'm telling you that by 2023, we should be in a position to reach to INR 50,000 crores. Not many companies in the country are existing today which have INR 50,000 crores of sales turnover and having EBITDA of INR 12,000 crore and debt level to a level of INR 15,000 crore. So the company is in the right path. And the India growth story is working very well. The more Prime Minister Modi, honorable Modi, Modiji, he speaks about infrastructure, more blood is transfused to our veins. So this is what we are thinking about.So we are interested in do the divestments in all foreign equities and the foreign assets. Like, for example, we have mines in Mozambique, we have mines in Australia, we have mines in South Africa. So mines in Mozambique are self-reliant, self-sufficient. They are doing positive EBITDA and net profit also. Similarly, the mines in Australia -- sorry, in South Africa are self-reliant, self-sufficient. They don't need any money from us, from India.Now the only area of concern is for the company, that is for our Australian mine. We're not able to sell them. We are now working to get all kind of approvals from the Government of New South Wales and also from, say, the central, federal government of Australia. And the moment all these clearances are in place, we'll start the mining operation. And normally, the monsoon season, anywhere in the world, I mean, this season is a little bad for the coking coal. And I think by the end of this year, when there is a dry season, October, November, December, we should be in a position to look out some of the partners, maybe 50% partner or maybe 75% equity holder. So this is what our aim is.It depends upon the size of the business and what kind of deal we do get. So we will try to retain a small portion as a minor investor so that we can keep getting our material, that is coking coal, which is very much required for our plants and blast furnaces in Raigarh and also in Angul. So this is how -- what we are aiming to. We look -- we'll look towards the India growth story. We will not leave any stone unturned in terms of capacity utilization, in terms of EBITDA margins, in terms of debt reduction plan and in terms of overall efficiency of the business.So that's all from my side. Thank you very much. In case of any question, we'll take in the following session. And now I'll request our Managing Director, JPL, Mr. Bharat Rohra, who will be speaking to you. Thank you.
Thank you, sir. Good morning, friends. The first quarter of the current financial year for Jindal Power has been under the impact of a once-in-a-lifetime epidemic for which no one has any readymade, quick fix solutions. And the entire power sector has been severely impacted. However, in spite of this adversity, I have great pleasure in informing you that JPL after a long gap of 5 years has come back into profitability and JPL has reported a net profit of INR 39 crores on a stand-alone basis and a net profit of INR 55 crores on a consolidated basis for this quarter. It is remarkable to report that from a net loss of INR 134 crores in Q4 of FY '19/'20, we have come to a net profit of INR 39 crores on a stand-alone basis. I'm sure this robust performance shall continue also in the coming quarters.Now the impact of COVID, especially on JPL, has been on 2 fronts. One, by which the generation and sales volumes have gone down. And the second, in which operating expenses have gone down. The impact of the reduction in operating expenses has been greater than the impact of the reduction in generating volumes. And hence, the EBITDA has improved. During the quarter, we continued to supply power to our long-term PPA contracts to Tamil Nadu, Kerala and Chhattisgarh without any disruptions. And in addition to that, first, small quantums of power we continued to supply on the exchange solely during peak hours to get better rates. However, despite the marginal lower PLF, EBITDA has increased from INR 360 crores to INR 368 crores on a Q-o-Q basis and -- the EBITDA has increased from INR 296 crores to INR 368 crores on a quarter-on-quarter basis and on a year-on-year basis from INR 360 crores to INR 368 crores.As far as the sector is concerned, the stress in the power sector still continues and has been aggravated by the current quarter because of the COVID epidemic. To overcome the effects of COVID, there are several measures announced and, foremost, the RBI has declared a moratorium of 6 months on repayment of loans. This has been a great help to all of us. The central government has also announced a sanction of loans to the defaulting states to the value of INR 90,000 crores to enable a onetime settlement so that all previous dues of generating companies payable by the DISCOMs get liquidated. We are eagerly awaiting for the same to get liquidated from Tamil Nadu. There are no other arrears from Kerala or Chhattisgarh. JPL has ensured that the increased cash flows are utilized in purchase of additional quantities of coal. And at the end of the quarter, we had a stock of over 15 days of coal required for running the plants which was a dream a few quarters back.The future outlook for JPL, it continues to be good because the measures that we have taken to optimize the operating costs will continue. And the Pilot Scheme-II which was conducted by the PTC is reaching finalization and maybe towards the third quarter, it should start getting operationalized. The coal availability has been very good during this period because the demand was low. And now the government has announced auction of coal mines for commercial use. JPL has plans to participate in these auctions and bid for some blocks to ensure fuel security at a reasonable price for a major portion of our requirements. The current debt in JPL stands at INR 6,500 crores. Company has availed the moratorium in interest and loan repayment as allowed by RBI. And we have used this increased cash flow in buying coal. And also, we shall participate in the coal auctions. JPL has fully paid back the NCDs of INR 335 crores partially in the fourth quarter of 2019/'20 and the first quarter of the current fiscal year. The settlement of change in law dues from TANGEDCO is in final phase. Earlier, we had reported that TANGEDCO has paid INR 170 crores in installments towards 50% of change in law dues. For the balance amount and further amounts falling due, the hearings in the Appellate Tribunal are over. And reconciliation with TANGEDCO is likely to be over before the next date of hearing on the 29th of July 2020.So on an overall perspective, in spite of the COVID, we are sure that the further quarters of the current financial are going to be either similar or even better. And we are optimistic that the entire year will be on a profitable note.With those words, I would hand over to Nishant for him to continue.
Before we dive straight into question and answers, we -- as you're aware, we have been talking to a lot of you guys. A lot of questions has come to us which are common across all the brokers, investors and analysts. Let me take those questions up and try and answer those for you all. One of the pertinent question that's coming up is regarding the other expenses that we're seeing. This is buying. I would like to list out a few things there. One of the items has moved from other expenses to the cost of materials consumed. Just to give you more details on it, it is approximately INR 100 crore item. This is a PCI coal which used to be a part of our other expenses earlier on and has now rightly moved to cost of materials. So that is one of the items. The other impact on other expenses has been due to the thermal coal benefit. This was a DISCOM part of the power and fuel. And as you all know and as Mr. Rohra also stated, the thermal coal cost coming down, that benefit is also shown here. Also, on a sustainable basis, there has been a lot of efforts -- there have been a lot of efforts that have gone down on bringing the efficiency into the system, including bringing the spares and everything down, and that has also impacted the other expenses. This was on other expenses. And we believe we can sustain all these reductions hereon. Some of you asked us on depreciation on the consolidated, is coming in at INR 985 crore and if this is the sustainable number to take going forward. I would say, yes. What we saw in the last quarter was also had an impact of a write back in the consolidated depreciation number which we had detailed in our books of account last quarter. So this is a number which you can see going forward.The next question that is coming up has been on the NSR fall. I know a lot of you when you're looking at the numbers are looking at probably a INR 2,200 fall that we're calculating. The NSR fall in the quarter was almost INR 4,600 per tonne. To reconcile it with what we've seen, there is...
Stock-in-trade out there.
There was a stock-in-trade item that is there that we have seen this time which has gone up. Now just to take a step back. As part of our marketing strategy in becoming a one-stop shop for a lot of our customers and buyers, we are trading in certain items to fulfill those orders, so basically holistically provide a solution to all the customers. These are obviously, like you would know, would be EBITDA neutral items in nature. And -- but the idea is to become the preferred customer, and therefore, that is the stock-in-trade item that we have seen. So that stock-in-trade item is approximately INR 1,100 per tonne, which is distorting your calculation of the NSR per tonne when you're looking at the numbers. The NSR fall has been INR 4,600 per tonne.
Yes. I will add one more thing here. I'm V R Sharma, again. So the NSR, when you say, like-to-like, the NSR fall is not too much, maybe only INR 1,000 or INR 1,500, because we have slight different products because we supplied majority of the products in blooms, billets, pig iron. So those products, they do not lead to the final value chain in the company. That's why when you see in per tonne, the -- yes, the NSR has gone down to INR 4,000 plus. But because the value addition was not done on those items, so if you see the apple-to-apple, there is no NSR down. And the moment the Indian steel consumption started in month of -- end of June, so the NSR, I think is back to INR 34,200. So that means the -- for the finished goods, the NSR is very well protected, but only for the semis because the value addition was not done, that's why it looks that NSR is down, but in real term, the NSR is not down because up to that place, that NSR is correct NSR.
Also to give you some color on the costs. We have substantially brought down our costs. And there is an impact on the EBITDA that you -- most of you have actually taken out of the insurance. Apart from that, we have brought down our costs by more than INR 2,500 per tonne, which includes round out INR 1,100 on the raw material, which is iron ore, fuel oil, furnace oil and the alloys, and then an efficiency of INR 1,400 per tonne.
Yes. I will add here once again, to support my colleague, the cost of making steel, it used to be roughly INR 23,000 a tonne. And today, it is INR 21,000 a tonne. We are aiming to bring it down to INR 20,000 a tonne. And if everything goes well, that is below INR 20,000 a tonne. So when the costs were high, we were thinking that the selling price is high. When the prices started falling down, we have reduced our costs because of iron ore prices down, coking coal prices down, economy of scale. So that has saved us. This is the reason we could protect our EBITDA level.
And to finish Mr. Sharma's comment, the benefit of the coking coal is still to show up, and this will show up in the coming quarter, a benefit of around about $25 to $30 on the coking coal is still to show up, which will show up in the coming quarter as I said. The next question that has come up to us is regarding the enabling provision of INR 5,000 crores. As all of you actually cover us for so long, you'll know that this is just an enabling provision, which we've already taken in the previous years also every first quarter. You would be able to find this enabling provision that we say.On the supplementary item regarding the debt-to-equity, the comments regarding debt-to-equity, I would just like to make this comment to give you more clarity. This is a clause that is there in some of the financial document of the company. And it is a standard clause nowadays after the NCLT has begun, especially if you look at public sector-led consortiums like SBI. And it is more so in the capital-intensive industries like coal, infra, steel and power and differentiated across all other sectors and industries also. And the clause really says that in case of a pertinent default or some default, there is an option to convert the loan to equity. So this is just a clause -- an optionality clause which is there. Like you all know, as in all places, the corporate finance teams are always working to bring the debt cost down. And with -- and that is the endeavor, and therefore, this is just a general clause that is there in the document. The endeavor always remains, as [indiscernible] the company has always said, to bring the debt down quarter-by-quarter. So every quarter, we should see the net debt coming down.
Yes. In case the company goes into liquidation because of any reason, then it is a very standard clause because the banks, they want to protect themselves and -- but we are not heading to that risk because we have already come out from those kind of situations in past. With all of your support and everything, the company is now in the safe mode. And we have our own protections in terms of financial arrangements. And we are not susceptible to any kind of -- such kind of changes which may likely -- which may come that a situation will come where the debts will be converted into equity. It will never happen. But yes, as was said by Nishant, that this is a standard clause and our stakeholders, shareholders, investors, they should trust the company, that company is doing well.So now we open the house for the questions. If you have some questions, we all are sitting here. So the respective people will reply you, and -- those who have the domain knowledge, but I, being the Managing Director of the company, I'm available to you at any point of time. Please.
[Operator Instructions] The first question is from the line of Amit Dixit from Edelweiss.
And congratulation for a good performance. I have 2 questions. The first one is on the sales mix. So in this quarter, that is the quarter gone by, Q1 '21, we saw a high proportion of exports. So how is it going to change in Q2 and Q3? And also what will be the proportion of value-added products in this particular quarter, Q2? And how much it was in Q1? So that is the first question. I can ask the second question also or...
Yes, please ask. Yes, please ask.
So the second question is on power division. We saw that realization improved Q-o-Q despite the exchange rate going down. While it might be due to the higher proportion of PPA, I just wanted to understand how you see it going forward in Q2 and Q3 possibly?
Yes. Thank you very much. So first question I will take first, that is product mix and the value-added products. You see, rightly pointed out by you, in April, May, June, since it was the lockdown period, and the Indian consumers were not in the market to shop the material, especially the plates, hot rolled coils, blooms, billets, wire rods, it was under a great stress because we were unable to move the material to the godowns of the customers. And this -- their workforce was also not available. I mean there, there was a lockdown. So we thought why not to switch over to the markets those who are ready to accept our goods. So the western part of the world, that is Europe and Middle East and also the countries like Saudi Arabia and Egypt, they prefer to buy plates from us. These are the value-added plates, I mean, specialty plates for the machine building. And then in Southeast Asia, Indonesia, they started buying the wire rods and the billets for the wire rods, which are, again, value-added billets. China, they started buying the commodity billets that is used for the rebars. So this was the product mix.If you see in the overall, out of the total exports we have done, we have done around 30% in the form of commodity billets and around 10% is the specialty billets, another 20% or 25% are the billets for the wire rods and balance is structures and angle irons and plates. So these are our value-added items. And also these specialty billets are value-added items, where we enjoy about $10 to $15 or maybe sometimes $20 additional prices. So this is on the last quarter. This quarter, we have already brought down our exports from, say, 300,000 tonnes average to 180,000 tonnes. And that is in the month of July. So July, August, September, we're close to about 500,000 tonnes as against 900,000 tonnes in the first quarter. So our dependence on export will be reduced. And our value-added products will be -- the volume of the value-added products will increase. So this is what we are aiming for. So with the new projects coming like railways, like the defense sector, the companies like L&T and Godrej and also KEC and BHEL. So they've already come with a shopping list. We already started sending material to them. Those are all highly value-added items. So there should not be any problem. So the dependence on export will minimize where we are supplying as a commodity. But the dependence on exports will be there only for those products which fetch more value addition, which have better pricing. As far as the power is concerned, I will request Mr. Bharat Rohra, my colleague. He'll speak to you.
Amit, your question regarding the realizations for the power. We have a stable income from the PPAs that we have with TANGEDCO and Kerala. And we are supplying to them from our 1,200-megawatt plant. The PPA is for 800 megawatts. So the baseload is there for these 2 units. So whenever we see an opportunity on the exchange, daily, there is a 15-minute module on which the prices are given. We do not sell all through the day. We sell selectively, in the morning peak hours, in the evening peak hours. So that, in fact, in this COVID period, if somebody was selling power on the exchange, he was selling at paltry INR 1.50 or INR 1.60 per unit, which was a loss. We did not do this. We selected the time slot in which we will sell. Rest of the time, we ran the unit at our 800-megawatt load, and we were able to derive a price on the exchange in excess of INR 2.75. That is why my weighted average of the NSR is in the range of INR 3.69. So going forward, as the power demand increases, the round-the-clock prices will also increase and we will increase the volumes, like we used to do earlier. So that's how I will explain your question. Is that fine, Amit?
The next question is from the line of Deepak Narnolia from Birla Sun Life Insurance.
And congratulations for a very strong set of numbers in the quarter. And basically, I have only one question regarding your profitability in this quarter. Basically, you have explained a lot of this growth was due to some product mix also. There were some overhead benefits also and then just with your raw material also. But effectively, I wanted to know, can you elaborate more [indiscernible] on this data, amount wise like, I see that you said steel prices -- that is the NSR has gone down by INR 4,600, correct? But still your EBITDA per tonne is almost flattish quarter-on-quarter or maybe it has improved a bit. So can you please throw some light on this? Like how is your product mix and...
Yes. I got your question very well. It is a very valid question because people, they always ask this question, that how the EBITDA is protected and how the NSR is -- still the NSR is down and how the EBITDA is protected. Very valid. I'll tell you, very simple. You see, there are 3 stages of steelmaking. The first phase is liquid steel, and that is called hot metal. Then the next stage, it turns from hot metal to pig iron. Next stage, it turns hot metal to steel. And next, it turns steel to casting. And next is turn casting to rolling into different shapes. So here, when we do the complete value chain, rolling into different shapes, at that point, the NSR is the highest. Why? Because the steel has been molded, casted, rolled into different kind of shapes. And those shapes fetch higher prices. When you see the round-the-year EBITDA level -- sorry, the NSR level, at that time, you see that our NSR is pretty high because we are doing 90% of the goods up to the last value chain in the mill.So the steelmaking, as I told you, the steelmaking was at about say INR 23,000. And if we make the specialty plates or specialty beams, we can sell as high as -- at a price of INR 35,000, INR 36,000, INR 37,000. But when we do not reach to that level of the large value chain because the demand was not there, the companies, and the country, they were down, and they were closed down, then we had to do only 3 stages of activity. These 3 stages of activities is the crude steel making, then pig iron in case it is required, then it is steelmaking or refining, and then casting. So casting into blooms, billets, slabs, and then fourth stage was selectively used wherever we had the customers like from Europe as I told you. And otherwise, the fourth stage was not used. The fourth stage products bring highest value in terms of NSR. But up to the third stage, the NSR looks low when we compare with the fourth stage, but it does not mean that we have a revival of profitability or an EBITDA. Because up to that place, the EBITDA is consumed up to a level about 65% to 70%. So we have got that EBITDA, we could protect that EBITDA of INR 10,000 plus, which has come finally at INR 11,700 because of this reason. So there is no direct relation of NSR and EBITDA here because the product mix changed. Have I answered your question?
So how much of this was because of that product mix? And how much would be because of this raw material savings approximately and because of this...
Yes. Very, very well. Very nice. So INR 3,000 is the saving in terms of reducing the cost of making steel. From INR 23,500, we have come to INR 20,500.
This includes your raw material savings?
Everything, put together. Raw material saving, cooking coal saving, the energy saving, oil saving, then gas saving, spare parts management, electrodes, all these included.
So raw material savings means a lot of this would have come from lower cost -- this use of lower-cost Sarda Mine inventory?
No. You see, SMPL inventory is lying for the last 7 years. And that inventory, it is impossible for anybody to move that material overnight. So we have used the blend of material from various sources. So this is the reason. We cannot consume overnight. So this will take about 1 year, 1 year, maybe more, more than 1 year time to bring that material back to the other -- to consume that material fully.
The next question is from the line of Rajesh Lachhani from HSBC.
Sir, I basically have 2 questions. Number one is, if we look at your net debt, you have been reducing it significantly over the last 3 years from FY '18 of around INR 45,600 crores to now close to INR 35,000 crores now, and this is a sharp decrease of more than 25%. However, sir, if you look at your interest cost on an annualized basis, they have actually increased by 5%. And this is not only the case for consolidated. Even this same trend could be seen for the stand-alone. So I just want to understand the divergence between the interest expense and the net debt. So that would be my first question.
And the second question also, please ask.
Yes. The second question, sir, just a follow-up from the colleague on the Sarda Mine. I just wanted to understand how much was the Sarda Mine ore consumed in this quarter? And what is the monthly run rate that you are consuming it currently?
Okay. So first of all, I tell you, SMPL. We cannot bring more than 20,000 tonnes material per day from there because it creates a lot of vessels by trucks or by conveyor. So this is what we are doing. So what do we do? We try to bring as much as possible, but 20,000 to 30,000 tonne maximum we can bring. But during COVID, we could not bring very much. And we had the opportunity to buying iron ore from the adjoining mines, private sector mines because we know they're also under pressure because there are going to be change in ownership because most of the mines are bought out to the auction by some other mix or other areas. So that was an opportunity for us to consume more and more from the outside sources. As far as your first question as per the interest rate, I will ask Nishant who will tell you. Just a minute, please.
Thank you for asking that question. So if you were to look at our annual numbers also on the finance cost, it is coming down, albeit, slowly. So if you look at it, for the Y-o-Y basis, it has come down by INR 100 crores approximately at a consolidated level, and similarly on the stand-alone level also. We are bringing the cost down. Like we said, the corporate financing teams are always working towards getting that interest rate down. Even we can share with you that even for this quarter, the interest rate has come down. There are other charges that are also now built into these finance cost, which are generally associated with certain debts we try and pay out early. And there are -- these are also associated with certain other items, which are there regarding the LCs and the BG [ bulletin ].So that is also actually flowing into this, which is probably distorting the number for you. Just as a point, I can tell you that the interest rates have actually come down for us in FY '20, whereas it was on a consolidated level at 8.8%, this quarter, we bought it -- been able to brought it down -- bring it down to 8.36%. So mainly, on a stand-alone level, where it was 10.95% in FY '20, it has been brought down to 10.54%. Also, if you see that our rating has not materially changed since 2018. That is something that we are working with -- working on. And hopefully soon, as we bring forth the debt down as well as work with the rating agencies, we'll be able to bring the interest finance cost number further down.
Sure, Nishant. I would really appreciate if you can tell us what would be the internal share, the interest cost for the LCs and the other normal debt.
Sure. So we'd share that data with you separately.
The next question is from the line of Prashanth Kota from CGS-CIMB securities.
Sir, congrats for the excellent results. My question -- first question is on the Sarda Mine iron ore that we use, how is -- how does the accounting work, sir? Let's say we use 1 million tonne in a quarter theoretically. So how is it priced? Or how is it valued on the balance sheet? And how is it -- how does the cost come in towards on the P&L? If you could just explain that.
You see, this infill is already, it was paid, duty paid, royalty paid basically. So now rest all is bookkeeping. So because we have paid it 5 years back, 6 years back, so I don't think that there is any issue in that because it is good numbers only. Because already money flows, money is flown.
No sir, I'm not talking about the cash impact, cash flow impact. I just wanted to see in the P&L, what is the cost? Is it coming in at 0 cost on P&L or is it...
No. No, it will not cost us 0 cost normally, whatever the price -- for our internal use, what we do, whatever the prices are prevailing in the market, we take the same price.
Okay. So to that extent, our cash flow will be higher, am I right, sir?
Naturally.
So in this quarter, there was a negligible amount of -- I don't know, use from SMPL, am I right?
Yes. As I told you, because this is a reserve quarter for us now. And this is a huge pile of stock. So what we have to do, we have to keep on bringing it down because there is no point in transporting a mountain from one place to another place. So whenever we need it, we use it. So it is a reserve material for us. Whenever we feel that, yes, this is the right time, today we can take out 20,000 tonnes or 30,000 tonnes, so we use that. And whenever the iron ore is available in the vicinity, and whenever the iron ore is developed from the Orissa government, then we use that iron ore. Also, we are buying from NMDC and O&C.
Okay, sir. Got it. So to that extent, whenever we start using more of this SML -- SMPL ore, the -- from our material...
We cannot use more. No. No, we cannot use more because there has to be a blend. So we cannot use 100%. These are the fines. We also need lumps. We also need high-grade like 64%. This is not a -- this is somewhere about 60%, 59%, 61%, like that. So we have to blend it. Otherwise, we cannot produce the pellets or we cannot use this -- use in the center plant. So that's why there has to be a perfect blend.
Got it, sir. So you get -- actually, to summarize, sir, you have...
This is the operator. Sorry to interrupt you. May we request that you return to the question queue for follow-up questions.
So just want to follow-up. Just -- this -- I'm just concluding with just sort one summary answer from Mr. Sharma. Sir, you have -- you need whatever you could technically use this quarter. Am I right? Or am I wrong in this, sir?
You see, I tell you, very, very -- this is a product, and this is a fine stock of pile, which is lined in SMPL premises. We have to transport it by trucks or by the rail. So we are not putting the only and full pressure on this to bring it because the millions of tonnes of materials, if you move, where to keep it. So we use it very practically. And we use it technically when the blend is required. So it is a result of hard work.
The next question is from the line of Vishal Chandak from Emkay Global Financial Services.
My first question is to Mr. Rohra. Sir, how do you see your utilization at the power capacity going up over the next 1 year, 2 years currently? And currently, I guess, we are at about 1,200 megawatts. And with 3,400 megawatts, how do we plan to ramp it up to its peak capacity?
Yes. My colleague, Mr. Bharat Rohra, will talk to you.
Yes, Vishal. Since the last 5 years, when the mine got reallocated, we were waiting for a virtual time to get coal from the vicinity of the plant. We have always been saying that because this is a interior located plant, so we had to depend on the coal from the surrounding areas. Now the government has come out with auctions, and there are quite a few mines which are in the vicinity of JPL. So we are very optimistic that we will take a few mines in this commercial coal mine auction. And then we will be having a very, very low coal cast, and we should be able to run the plant at even 3,400 megawatts within the next 2 years. So this is the opportunity I was waiting for, and it's finally come.
Sir, just a follow-up on that. When we say that we'll bid the coal on the auction and we'll get it cheap, we have seen in the iron ore auction that nothing has come cheap, especially people who wanted on the captive side have driven every bit of cost on the higher side. Will the commercial coal, because what we are doing is now we are going to bid for the commercial coal mine, so we lock in our cost entirely, while our supply -- while our customer side or the PPA side has left out open? Do we plan to hedge it on both back-to-back end, as in, when we bid for the [ first few ], you also have a PPA in mind?
Vishal, the dynamics of oil costing and iron ore costing are totally different. Iron ore is a very costly material and people can afford to transport it long distance, but coal is a very cheap material. And if somebody tries to transport it over long distances, it will become a highly uneconomical for them. So that is why in this mining auction, the people who are going to buy these mines are going to be end users who are within the radius of 50 to 100 kilometers of the coal mine. Definitely different from the iron ore mine auctions. People do not want to transport -- spend money, more money on transport than the cost of the coal. So I'm optimistic that only genuine buyers, who are in the vicinity of the mine, they will come in the auctions.
Got it. Sir, my second question is to...
Vishal -- Vishal, I'm really sorry. We have to start actually cutting people. We've got around about 30 people in the queue. I would request you to only take 1 question now. And we're always there, the IR team is always there to answer you the remaining questions. Thank you, Vishal.
The next question is from the line of Vineet Maloo from Aditya Birla Sun Life AMC.
So I have one quick question. I did understand this thing on Sarda Mine that you explained. So if you could just tell us how much is the quantity that we use in this quarter? And what is it that you are theoretically with all the constraints in mind, like blending and transportation, et cetera, et cetera, what is it the maximum that we can use in a quarter? So that will put things in perspective for us.
I have already replied this question twice my dear. This is 20,000, on an average, 20,000 tonnes per day.
So we use equivalent of 20,000 tonnes per day during this quarter?
Yes, correct.
Okay. Understood. And is that the maximum that we can do in a quarter? Is that the run rate that we can do maximum?
No, we can [indiscernible].
With all the practical constraints, sir.
Yes, I'm telling you, there is not a practical constraint. We are not there to evacuate or vacate this space overnight. So this is a material, which was lying for many years, 7 years. So it is a mountain. So you have to dig it, clean it and then bring it to the -- to the location. Then it has a different value, in alumina, silica, percentage of [ contents ] as far contents. When we use it in our blast furnaces to [indiscernible], we have -- we have a special blend. We cannot make the blend of 100% of the SMPL banks. So we have to use other iron ores. If you see our buying behavior, so we have bought from O&C, we have bought from NMDC, we have bought from other private miners like Rungta and Essel Mining from that belt.And since we have to do it from the belt of Orissa. So it is good luck to us that we are -- we have access to all these different kinds of iron ore. So that's why the question what you asked, I think I replied, but I'll tell you one thing, for the knowledge of everybody, we are not here to consume, [ stop ] buying iron ore from [indiscernible] and consume first the SMPL stock, which is like our stock lying in SMPL. So it will take some time because we cannot mix or we cannot blend more than a particular ratio. So now I think I have answered your question.
The next question is from the line of Palak Shah from Reliance Nippon Life Insurance.
Just one question on this. Given the concern that you have spoken about, what are the total costs for actually transporting this material all the way from SMPL to JSPL, including the digging, cleaning and the grade difference that you have?
I think it should not be more than INR 100. Okay, then?
Okay. And then -- and just one clarification on the EBITDA number. So when you see that you have actually taken the cost of iron ore at market price. So in this current EBITDA, there is no benefit of actually procuring from SMPL. You are thinking in accounting purposes?
We can share with you because it is a blend basically. But what we have to -- how we do it? Because when we buy material from different sources, so then there is some average price concept. And that average price is the price for the plants because we cannot give 2 different prices to a plant posting team. So when they produce steel, they have to produce on the base of the average pricing. So finally the EBITDA level, besides the average -- is based on the average pricing.So if the EBITDA is coming at INR 11,700, so that will be based on the average price. It cannot be that [ making ] from SMPL, we have INR 14,000 or may have INR 10,000 and this may have INR 11,700. So it is a blend of this total. It is a very large operation. And as far as we are -- we cannot use one kind of iron ore at any point of time to meet out the requirement of the blast furnace.
For -- and the second, and may I just ask one more question...
No, Mr. Shah, sorry to interrupt you. May we request you to return to the question queue for follow-up questions?
If we have time, then you can ask the second time questions. Let us first take the question from the people, our friends, those who are waiting for long time one by one.
[Operator Instructions] The next question is from the line of Bhavin Chheda from Enam Holdings.
Sir, can you give me the outstanding debt at each entity and how much is repayable at each entity in FY '21? If you can break up entity wise.
Sure. We could do that. So if you look it at entity wise, JSPL stand-alone is around INR 14,700 crores -- INR 14,800 actually. JPL is around INR 7,200 crores. Yes. JSPL is close to $710 million. The WCL would be close to $330 million. Yes. And Oman would be close to INR 5,500 crores.
Sorry, Oman would be?
INR 5,500 crores, approximately.
INR 5,500 crores?
Yes.
Okay. Each entity...
[indiscernible]
And then you have cash inflows of over INR 600 crores cash?
Yes, yes.
Entity savings or repayment in FY '21?
Bhavin, we can take this -- Bhavin, we can take that question separately.
You can call me.
Yes. I'll call you separately, Bhavin.It's been a long period. Therefore, needed to also extend the time by a little bit.
Yes. Just one more thing. If you can share the coal cost savings both on the met coke side and the thermal coal side? Did you see the savings at both or just thermal coal was more and met coke should tick in, in future?
Right, sir. So Bhavin, like I said, the coking coal benefit is yet to come in the numbers, which you'll start seeing in this quarter. Thermal coal was primarily what you saw. The thermal coal has come down from INR 0.8 per mega cal to INR 0.64 per mega cal, and it is likely to come down further because Coal India is all way out to lure the customers. So this is something very good. And the coking coal, there was a dip in the month of April, that benefit we got in June. But we did -- what we got in May and June and now in July, that will come in the month of August.
The next question is from the line of Sumangal Nevatia from Kotak.
My question is with respect to the Oman transaction. So if you could just share details as to what are the next steps and the time line we are expecting the overall transaction to close?And lastly, given that we have another $800 million to $1 billion of debt in Mauritius and Australia, what is the refinancing plan, sir?
Okay. Nishant will reply.
Thank you, Sumangal, for the question. Please note, as you know -- and as Mr. Sharma also said, in the Oman transaction what we had announced, there are certain steps that need to be taken including the call for an AGM for shareholders on the 28th of July. That is another approval that we are looking for. Apart from that, we are also seeking the approval from the GSIS, that is the Shadeed lenders as well as the JSPL lenders as per their finance ops.So that's also a work in progress. Like we had said last time, we were endeavoring to close this by July, the endeavor still remains. But given that we need to get these assembled, it could spill over to the next month. But the endeavor is to complete it as soon as possible, depends upon the approval -- so it depends on the approval, but basically, the endeavor is to complete it as soon as possible. So your next question -- Sumangal, if you could repeat your next question, please.
We have another -- yes, yes, the reason I think given that we have another $800 million, $900 million of international debt, yes.
Sure, thing. Since we've taken this question, I would like to definitely point out to people that if you were to look at FY '19 numbers, we googled and overseas debt was around $1.9 billion, which came on to around $1.8 billion in FY '20. The endeavor has been for the company to bring this debt down. We believe after the Oman transaction culmination and other things getting done, including some retailers, we should be below $800 million on the global debt, as you rightly said.For that $800 million, while we believe we can take of the strong cash flows that we are now generating within India, but there have been refinancing plans. We've already spoken about plan through the IT abolishment that we hired, embarked on in the month of March. But due to the uncertain COVID conditions, that did not go through. We are ready, I can tell you. And as soon as the markets improve, we will be happy to go out and refinance the entire debt.
The next question is from the line of Ritesh Shah from Investec.
Sir, my question is regarding -- you gave a number of INR 5,500 crores of debt reduction during the course of the year. So I just wanted to understand the construct of this. And I'm assuming this is excluding Oman proceeds. And it is heartening to see this number actually to go down, but would like to have some color on the pledge number also going forward, how should I look at it?
Sure thing. So you asked two questions actually in one, so I will answer both then for you. The INR 5,500 crores, yes, does not include the reduction from Oman. This is solely on organic basis that the company believes we should be able to pay off through our cash flows.The second question is regarding the pledge. As you know, our peak pledge debt used to be INR 1,150 crores, and we have been able to bring it down around INR 400 crores. The endeavor is to bring that debt down further. And we should -- as we go forward, we should look to bring that debt down to nil, and we will keep you updated as that happens.
Just a follow-up. So what is the CapEx number for full year that one should build and the interest cost number, I think there was a related question earlier as well. So what is -- which was the CapEx number that we are going to look at?
Yes. The CapEx, we've already guided toward the INR 600 crores to INR 800 crores of CapEx for the year. Just to reiterate, as Mr. Sharma had said, for this quarter, we had done a CapEx of INR 110 crores on the console.
Okay. And I'm assuming this number also does not include the power receivable, INR 1,600 crores, INR 1,800 crores which is yet to come into the kitty?
Yes. Exactly. The INR 5,500 crores cash flows, if you -- [indiscernible], yes, it does not include the cash flow that we would get on account of the receivables in part.
And any time line to that? That's the last question.
You see the receivables have started coming in. Last month, we received an installment of INR 160 crores, this month also we are receiving some installment. The change in law of cases being settled in the [ appellate ] and the Ministry of Power has already given a scheme by which all old deals will have to be settled by the DISCOMs. So I think within the next 3, 4 months, a substantial portion of the receivables should be with us. We'll take the other questions off-line as possible.
We'll take the next question from the line of Ashish Kejriwal from IDFC Securities.
One is Oman sale, how much debt reduction will happen as per sale? Is it INR 6,000 crores or INR 7,000 crores? Because in the initial remarks, Mr. Sharma said INR 6,000 crores to INR 7,000 crores. So I was just curious to know whether it's INR 6,000 crores or INR 7,000 crores?
Sure, Ashish. So Ashish, it will be close to INR 6,000 crores that you can build in.
[indiscernible]
But point is, Nishant, INR 5,500 crores there in the book of Oman. And we are seeing that we are going to pay about around $250 million more on that. Then how this INR 500 crore only comes out of it?
Thanks. So Ashish, just to pick it back and give it more color. We do have an intercompany receivable that JSPML needs to pay back Oman, and that has been outstanding for long. So that will also be taken care. So if you saw the INR 251 crores equity, it is a part taking over those liabilities as well as a part cash, which is coming into JSPML [indiscernible]. And so therefore, going to be [ some delay, ] we'll be able to see the impact on the balance sheet.
So in balance sheet, one is debt reduction will happen to the extent of around INR 6,000 crores. And any other liability portion, which will also get reduced because in console license, my sense is that everything is net off. So how balance sheet will look like after this transaction? One thing you said about INR 6,000 crores.
Right. So the idea is to build, like you said, the INR 600 crores that goes off the Oman book directly, plus whatever goes off the Mauritian books. The idea will be through this transaction, like we said, we bring down the global debt to close to below $800 million and then keep reducing it. The overall consolidated growth endeavor has always been to come to below 2x net debt-to-EBITDA. We were at around 2.5x as of FY '20, which we are bringing down. And so next year, we will aim to bring that down further. With the...
I understand about the growth plan. I was just checking to Oman, as I've said. Why only INR 6,000 crores debt reduction? And if any other liabilities gets reduced, where we can see in the balance sheet? That's all the question.
Yes. So the other liabilities, like we said, Ashish, it's an intercompany. So if it's an intercompany, it gets netted off. You're not able to see it on the console because both Mauritius and [indiscernible] form part of the console balance sheet. And therefore, it is netted off. Once you are removing Oman into a separate entity, you will be able to see that they would be then payable towards Oman, right? A liability towards Oman, which JSPML will have to basically pay back. And then you will be able to see the entire details. Like I said, when we do [ calculate ], you will be able to see the balance sheet in a much better way.
Sure. Sure. And lastly, at what rate...
Ashish, if I can -- Ashish, and then -- I would like to take, if there is time to take one last question. We would like to take one last question from somebody who has not been able to ask. We still have 15 people that are waiting, sorry. Due to shortage of time, we'll be only able to take 1 last question from somebody else.
We'll take the next question from the line of Gaurav Rateria from Morgan Stanley.
My understanding is that you continue to maintain utilization rates at a healthy level. Exports would probably come down in 2Q. So where are you seeing the visibility improving on the domestic demand? And do you expect the inventory buildup will not happen in 2Q as well?
Yes, you're right. Our plan is [indiscernible] #1. We will be producing in this quarter in July, August, September, 1.8 million tonnes. Out of this 1.8 million tonnes, our aim is to export only 600,000 tonnes. Minus 1.2 million tonnes, we'll be consuming and will be selling within India. 3 major factors: one is the pipes and plates sector, that is basically for the water pipeline. Government of India has come out with a -- though it was -- the tenders were already placed last year. So most of these cities are being fed to the water pipelines under the Prime Minister's [indiscernible].So this is one area which is giving us a good business in terms of selling plates. The other area is the defense sector, as I told you. The third area is the industrial segment, like building, high-rise buildings through the structural plates and the welded structure.We are here in the country now with 14-, 15-, 16-story buildings of steel. And with more and more infra projects coming in. So we assume that the steel commission will increase. Government of India intent to reach to a level of about 150 million tonnes of steel commissioned by 2022, which is -- the production is not there. We may become the net importers of steel in 2023 because no new infill projects are coming because the investment bankers, the Indian vendors, they had a little different view of the steel industry and they were not promoting and encouraging the steel plants -- new steel plants. So I think unless a great amount of FDI comes in the country in the steel base, it will be difficult for the country to reach to those level of 150 million or 170 million. But 2020, government want to reach to 300 million tonnes steel in production in the country. So I have my doubts that unless the FDI comes or Government of India from institute, like earlier it was IFCI and ICICI where the -- investment institutes, they were supporting the steel industry and the other infrastructure industry.It is unlikely that the existing players will or come in this and build in a position to do. So overall, if you see, why I'm telling you these things. Overall, the existing team players, they have a bright future. I'll tell you one thing. There are only 5 families today [indiscernible]. So one is Steel Authority of India, the other is JSW, the third is Tata Steel, fourth is JSPL, and fifth is now ArcelorMittal.These are the companies also produces more than 5 million tonne steel. And the rest of all, there is about 1 million, 0.5 million, 1.5 million, by about 10 million more like that. So if you put together, if you join everybody, then the steel production is very low in this country. So if we have to increase, and we had to reach the level of, not 300 million, at least 200 million, then we need another 10 plants minimum, which can produce at 10 million tonnes each per year. Steel plant comes at a -- in a span of 5% to 70%. Land acquisition, infrastructure, water, electricity, it takes more of time. For 10 years, it takes to produce 10 million tonnes for anybody to read through. So it is a very challenging time for the country. But very opportunate or very opportune time or big opportunity for the existing players, not only our company, any company who is producing steel today, they have a very bright future because the steel conventionally increase, but the production is not increasing, which can commensurate with the convention. So let us hope that steel industry have more benefits, more profit. And India will become a net steel importer by 2023, which that I can tell you.
Thank you sir for the elaborate answer. If I can just ask a bookkeeping question. What is the total repayment due over 2Q to 4Q? That is from my side.
Listen. The total repayment due from 2Q to 4Q is around INR 5,000 crores that we will have to take. And pursuant to that, we had told you that, the debt reduction would be close to 5,500 crores in line with that.So I hope we have extremely satisfied everybody. Hope everybody must be satisfied in this, any shortcoming. Please contact Nishant. He'll be in a position to send your data or any paper you need, any document you need, which is available in the public domain or we can share with you, you are our investors, you have first right to ask anything from us because we want that we -- your confidence in this company should prevail and we should [indiscernible] from all of you. So if -- can we now close it? Or is there any more questions left? Otherwise, please speak to Mr. Nishant.
Ladies and gentlemen, due to time constraint, we'll take this as the last question. I would now like to hand the conference over to the management for closing comments.
So thank you, my friend, and thank you, the investors, on the opportunity. The -- as I told you, there's a very good future for the steel industry in times to come. So is the future for the power industry. And with the Prime Minister declaration last night, we are very much bullish. So he has the market FDIs and housing sector, he has invited FDIs in the infrastructure sector and will give us something very positive vibes, which is driven by investor. So I think India is at the part of no U-turn. And though we were not affected due to COVID, but I always tell to the industry, and you also play a very vital role as an Indian citizen. Let us forget this few last months of April, May and mid of June. And let us eliminate it from our life. And we have other 9 months to work and 9 months to do something good for our nation.So this is how I always speak, I always tell to people that we must try to recover in these 9 months time from July to March. And we will definitely come out with impressive results. The -- there have been some issues at the Board. So this issues at the Board have been solved and dramatically [indiscernible] taking all steps, and I'm sure none of the country want to work is today's situation. So the ripple will always be there. The strength -- to show the strength of the wall, those ambitions will always be there, the political leaders, any in the world, but to help you out, [indiscernible]. And especially the financial and management people, they never like war. So I think the time is good. And in times to come, the steel industry as a whole will definitely come out with flying colors and JSPL will definitely be better than peers. This is our promise to you, and this what we want to do. Thank you very much.
Thank you. On behalf of Prabhudas Lilladher Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.