FY 24 – Q3 Con-call Highlights
Power cost savings efforts will continue.
- Robust Financial Performance in Q3 and F24
- Driven by Increased Production Volume of Valuated Product
- Higher Realization of Aron Pet
- Cost Savings Achieved through AC (Aron Pet) Throughout the Year
- Reduction in Child Power and Fuel Costs
- Environmental Approval Received for Capacity Expansion
- Pet Plant Capacity Increased to 2 Million Tons (from 1 Million Tons initially proposed)
- Strategic Updates for the Quarter
- Consent Received to Operate Spa Plant at 595,000 Metric Tons (from 495,000 Metric Tons)
- Consent Granted for Steel Melting Shop at 525 Metric Tons Million Tons (from 400,000 Tons)
- Guidance for Production Volume Increased to 59,000 Tons in the Current Year
- Steel Billet Production
- Announced Capacity of Billet Operational
- Guidance Increased for Steel Vage Production to 475,000 Tons for the Current Financial Year
- Value Addition and Operating Margins
- Steel Billet to be 100% Captively Consumed
- Additional Power for Higher Capacity from Efficient Power Generating Turbine and Solar Project
-
Capex Plan Updates
- Plan to Double Mining Capacity at Adri Mine (from 2.35 Million Tons to 6 Million Tons)
- Anar Mining Capacity Operational upon Receipt of Environmental Clearance
- Filed Devise Mining Plan for Increased Capacity
- Public Hearing Expected to Conclude in Q1 F25
- Setting Up a Verification Plant for Mining with a Capacity of 6 Million Tons
- Estimated Capex: 200 CR, Set up in 15 Months after Environmental Approval
-
Pet Capacity Expansion
- Plan to Increase Pet Capacity by 3 Million Tons
- First Phase: Pet Capacity Increased by 2 Million Tons
- Phase Two Expansion: Additional 1 Million Tons Planned
- Capex Requirement for Phase One Expansion: 600 CR
- Environmental Approval Received for Phase One Expansion, Project Completion Estimated in Q1 FY 206
- Integrated Distill Plant Capacity Increased to 2 Million Tons (from 1 Million Tons)
- Revised Capex for Integrated Plant: 6,000 CR for 2 Million Tons
- Power Procurement and Carbon Footprint Reduction
- Co Requirement to be Procured from Market for Coke Production
- Electric Power Sourced from Solar Power under Group Captive Arrangement
- Public Hearing Completed, Environmental Approval Awaited for Power Project
- Four Solar Projects Planned for Lower Carbon Emission
- Solar Power Project Updates
- 145 Megawatt Solar Power Capacity Commissioned
- 52 Megawatt Capacity in Hero, 23 Megawatt at AR Mine
- 20 Megawatt Solar Power Plant Commissioned in December
- Additional 20 Megawatt Plant for Fabrication and Galvanizing Unit Expected in June 2024
- 48 Megawatt Turbine Generator Commissioned in December 2023
- Capex for Rolling Wheel Modernization Progressing for Q4 FY 24 Completion
- Stock Options and Shareholders Approval
- 28 Lakh Stock Options Granted in January 2024
- Financial and Operational Performance Highlights
- Higher Production Volume in Steel, Power, SP, and B on Quarterly and Y1 Basis
- 9% Quarter on Quarter Increase in Iron Ore Production
- 15% Quarter on Quarter Drop in Pet Sales Volume
- Cost Savings with Captive Iron Ore Mines, Cost for Iron Ore from Market Higher
- Revenue Increased by 1% on QoQ Basis, Decreased by 11% on Y1 Basis
- Profit After Tax Increased by 79%, Profit Margin Increased to 17.5% in Q3 FY 24
- Net Cash on Val: 768 CR as of December 2023
- 9 Months Performance: Revenue Drop by 12%, Beta Margin Increased by 25%
- Market Outlook and Steel Demand
- Global R PR: $144 per ton in January, Forecasted Steel Demand Growth by World Steel Association
- China Imports Strong, No Explicit Steel Production Cut
- India’s Steel Demand Forecasted to Increase 8.6% in 2023 and 7.7% in 2024
- Positive Outlook for RN and T Prices, India Remains Bright Spot for Steel Demand
I am sorry for any Typos. 
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