Highlights of concall:-
Cost of production has gone up from INR 65,700 to INR 79,900 in the third quarter comparedto the corresponding quarter in the previous year. Production figure for the third quarter was 58,000 tons compared 61,000 tons in the corresponding quarter of previous year.
Chrome ore-production was more in the current quarter at 134,600 tons compared to 107,900 tons in the previous quarter. Ferro-chrome sales quantity was 65,773 tons in the current quarter compared to 55,400 tons in the previous quarter. And average realization price, as I have already told you, it has come down to INR 93,000 per ton compared to INR 1,16,000 per ton in the previous quarter.
Our normal EBITDA should be INR 15,000 to INR 20,000 per ton. But as you know, we are into cyclical industry, so it keeps on fluctuating every quarter… But on an average, if you take long-term projects, it is maybe around INR 15,000 to INR 20,000 per ton. Chrome ore cost, all blended together and landed at Choudwar, it is around INR 8,500 per ton as compared to market price of around INR 15,000, INR 16,000 (Company has advantage of 6-8K /ton). Next year also volume will be around the same level of 2,50,000 tons. Because the capacity expansion will come into picture in FY ’26 only, not before that.
South Africa, it has been already declared from the month of April power tariffs will be increased by 18.65%. Further, winter tariff will be applicable during June to August, which is additional. The power situation is critical now reaching stage 6 and 7. Considering all
these factors, we are expecting further increase in Ferro chrome price in the first quarter of FY24.
Other positive factors:- One time settlement with ED, POSCO issue resolved. Expecting recovery of amount invested in Utkal coal block (350 crore).
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