I think you are missing the fact that only 28% of total sales in Q1 was pellet sales despite the fact that 60% of Q1 did not have any export duty.
in Q2, only 24 or 25% will be pellet sales.
If only 25% of total revenue is pellet sales, and pellet prices are down by 25%, iron ore cost is also down by 25% (royalty will come down), how will net profit fall 20%?
Can you please throw some light here?
Value added products were 72% of sales in Q1. I would rather focus on prices and cost of those 72% (majority of sales), than the price of minority sales (pellets).
Once they get EC approval for sponge iron capacity expansion (can come any day now), sales of value added products will increase to 80% of total sales.
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