Just wanted to quickly check on the Royalty side. Was going through the concalls and ARs of Tata Metaliks to understand Pig Iron and DI Pipes business in a better way and found that there is mention of Royalty in each call and ARs.
Moreover, the royalty for captive consumption of Iron Ore is even more. Below is the snippet from Tata Metalik Q3 FY22 concall.
“The additional royalty which Tata Metaliks had to pay, because of the government regulation, which came in for increasing the royalty on iron ore from 15% to 37.5%, for fines and for lumps, it went up from 15% to 52.5%. So, if you buy from a captive mine owner like Tata Steel, you have to pay that much extra.”
This change in the royalty seem to have direct impact on the bottom line of the company. Can we expect similar type of royalty in case of Sandur when their DI Pipe & Pig Iron production starts? At this point of time I could not find much mention of royalty in the ARs of Sandur.
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