- 2 years ago
- Why does #Citi continue to maintain a 'Buy' rating on #PBFintech?
- Highlights from #IMFA's Q3 results
Hiral Dadia and Hersh Sayta bring you small and midcap stocks to keep up with on 'The SMID Show'. #NDTVProfitLive
_______________________________________________________
For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia
Visit NDTV Profit for more news: https://www.ndtvprofit.com/
Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-reports
Follow NDTV Profit here
Twitter: https://twitter.com/NDTVProfitIndia , https://twitter.com/NDTVProfit
LinkedIn: https://www.linkedin.com/company/ndtvprofit
Instagram: https://www.instagram.com/ndtvprofit/
#ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket
Share Market News | NDTV Profit LIVE | NDTV Profit LIVE News | Business News LIVE | Finance News | Mutual Funds | Stocks To Buy | Stock Market LIVE News | Stock Market Latest Updates | Sensex Nifty LIVE | Nifty Sensex LIVE
- Highlights from #IMFA's Q3 results
Hiral Dadia and Hersh Sayta bring you small and midcap stocks to keep up with on 'The SMID Show'. #NDTVProfitLive
_______________________________________________________
For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia
Visit NDTV Profit for more news: https://www.ndtvprofit.com/
Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-reports
Follow NDTV Profit here
Twitter: https://twitter.com/NDTVProfitIndia , https://twitter.com/NDTVProfit
LinkedIn: https://www.linkedin.com/company/ndtvprofit
Instagram: https://www.instagram.com/ndtvprofit/
#ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket
Share Market News | NDTV Profit LIVE | NDTV Profit LIVE News | Business News LIVE | Finance News | Mutual Funds | Stocks To Buy | Stock Market LIVE News | Stock Market Latest Updates | Sensex Nifty LIVE | Nifty Sensex LIVE
Category
ЁЯУ║
TVTranscript
00:00 (upbeat music)
00:02 (upbeat music continues)
00:06 (upbeat music continues)
00:09 (upbeat music continues)
00:12 (upbeat music continues)
00:16 (upbeat music continues)
00:19 (upbeat music continues)
00:23 (upbeat music continues)
00:26 (upbeat music continues)
00:29 (upbeat music continues)
00:33 (upbeat music continues)
00:36 (upbeat music continues)
00:40 (upbeat music continues)
00:43 (upbeat music continues)
00:49 (upbeat music continues)
00:56 (upbeat music continues)
01:07 (upbeat music continues)
01:10 (upbeat music continues)
01:17 (upbeat music continues)
01:26 (upbeat music continues)
01:34 (upbeat music continues)
01:38 (upbeat music continues)
02:03 - Good morning and welcome.
02:04 You're watching the Small and Mid-Cap Show on NDTV Profit.
02:07 You know, I'm gonna quickly go to the president first.
02:10 He is addressing the parliament budget session.
02:15 Let's go quickly to some of those visuals.
02:17 There you go.
02:25 We have visuals coming in straight from parliament.
02:27 Have the speaker, the prime minister,
02:32 the president there, all of whom are,
02:37 and we're gonna start the budget session, of course.
02:41 The main, the budget speech, of course, awaited tomorrow.
02:45 That's going to be the key, even when it comes to markets.
02:49 But those are the visuals coming through
02:53 with Prime Minister Narendra Modi sitting there.
02:57 But let's quickly go and have a quick look
03:00 at what markets are up to.
03:01 You're seeing the Nifty,
03:02 which is up around 6/10 of a percent or thereabouts.
03:05 You're trading largely very close to the day's high,
03:10 so nothing to complain about.
03:12 While we started the day below the 21,500 mark,
03:16 we have quickly breached the 21,600 mark now
03:21 and we are sitting very pretty, at least for the day.
03:25 In terms of contributories,
03:26 if I can quickly roll that forward,
03:28 you're seeing both the big guns, HDFC and Reliance,
03:33 coming to the forefront today.
03:34 You're seeing RIL contribute roughly 30 points,
03:39 HDFC bank 40 points,
03:40 and you have also an ICICI bank coming to the party
03:43 around almost 30 points contributed there as well.
03:46 So you're seeing some good contributions
03:48 coming in from both the banks as well as from Reliance,
03:51 which are some of the largest constituents of the Nifty.
03:55 You're also seeing a drag coming in from L&T
03:58 after the numbers that have come through.
04:00 So that's the one big drag that's coming through.
04:03 In fact, there are only 54 negative contributors
04:07 cumulatively on the Nifty,
04:09 of which 40 points negative is being contributed
04:12 by Larsen and Toubro alone,
04:13 now slipping 5% that stock.
04:17 You know, I'm gonna quickly shift focus
04:19 to where the mid and the small cap indices are doing.
04:22 At that end, at the broader end of the spectrum
04:25 of the market, you're seeing good buying.
04:28 You're seeing positivity 1% higher on the Nifty mid cap,
04:31 one and a half percent higher on the Nifty small cap.
04:34 And let me focus a bit on some of those.
04:37 In fact, the Nifty mid cap,
04:39 you have 73 advances in the Nifty mid cap 100.
04:42 So the breadth of the market looking quite good.
04:44 Policy Bazaar leading the gains on the Nifty mid cap,
04:47 14% higher in trade today after a strong set of numbers.
04:52 You also have KPIT Tech, M&M Financial,
04:54 up nearly 6% each, both of those also leading the pack.
04:59 You have the likes of a Voltas, which is up 6% as well,
05:03 you know, on the back of its earnings that it disclosed.
05:06 Within the small cap space as well,
05:08 you're seeing good positivity,
05:09 82 advances versus the 18 declines
05:12 on the small cap 100 index.
05:14 And you're seeing the likes of a UTI,
05:16 second consecutive day of gains for that one.
05:19 KEC and Kamps, those are the two other names
05:23 which are leading the pack.
05:24 Among the losers on the small cap,
05:25 you have the likes of a Scient, a VIP Industries,
05:28 again on the back of numbers, VIP Industries,
05:30 and Data Patterns, which is down 3.5%.
05:33 VIP Industries obviously taking a knock,
05:35 a poor revenue growth as well as a bit of contraction
05:38 that we've seen.
05:39 So that's how it's shaping up in the broader markets as well.
05:44 The Nifty Bank leading the rally,
05:46 1.5% higher on the Nifty Bank.
05:48 Among other gainers, you have the likes of a Nifty Auto,
05:51 which is up 1.2%.
05:53 The Nifty Pharma is up nearly 2% as well.
05:55 So you have a good mix coming through, there you go.
05:59 Those are all the sectoral indices.
06:00 If I can screen into, or rather zoom into the Nifty Pharma
06:03 and understand which are the key contributories
06:06 of the gains coming in there,
06:07 because it's the top sectoral gainer, there you go.
06:10 All the 20 constituents are in the green.
06:13 You have the likes of a Dr. Reddy,
06:15 which came out with numbers, a decent set coming out,
06:19 and that one is up in a way, 4% leading
06:22 the Nifty Pharma rally today.
06:24 Right, but we'll focus in on the mid-cap stocks
06:28 because this is the small and the mid-cap show.
06:30 And we have with us the management of Policy Bazaar.
06:34 I have with me Yashesh Dhaiya, who's the chairman and CEO,
06:37 and Alok Bansal, who is the co-founder
06:40 as well as executive chairman at PB FinTech,
06:42 both of whom are joining us, and the stock is up in a way.
06:47 Yashesh, a pleasure interacting with you.
06:49 Alok, good having you.
06:51 - Nice to be here, thank you.
06:54 - Right, so Yashesh, let me come to you.
06:57 It's been a solid quarter,
06:59 especially where new businesses are concerned.
07:02 Your EBITDA has gotten better,
07:04 and you're looking at an FY24 profit now.
07:08 What is the kind of outlook for Q4?
07:12 Do you build on this, or do you believe that this is
07:15 where you will be for some time now?
07:19 - I think our profit should be about double
07:22 of what is this quarter, in the next quarter,
07:25 because it's one of the strongest quarters.
07:28 Q4 is always the strongest quarter.
07:31 But I think I don't like to look at things quarter on quarter.
07:34 Focus on a, let's say a three-year window.
07:36 And I think if we took a three-year window,
07:38 our revenues are up more than four times in the last,
07:42 if you look at 2021 and 2024,
07:46 our revenues are up more than 4X, right?
07:49 And thus, if you hopefully look at the next three years,
07:52 it may not be 4X, it may be 2.5X, right?
07:56 That you look at in the next three years.
07:58 I think the simple thing is,
08:00 every time we make additional revenue,
08:03 roughly 30% of that, maybe a little less, little more,
08:07 of that flows directly down to EBITDA.
08:09 So if we increase our revenue by,
08:15 let's say 30% next year,
08:18 then, you know, 8%, 9% incremental EBITDA
08:23 should be created as a percentage of revenue.
08:27 That's just a normal feature of our business,
08:29 which is the operating leverage, right?
08:32 And why is there operating leverage?
08:33 Simply because there is a internet platform,
08:36 there's a certain fixed cost,
08:38 which has been taken care of.
08:39 And now onwards, of whatever extra revenue we make,
08:43 we spend 65%, 70%,
08:46 and the remaining 30% does not get increased.
08:49 That's all.
08:49 - Sure.
08:52 Yeah, so I get the big picture,
08:54 but let me switch over to Alok
08:55 to try and understand how the top line will evolve.
08:58 Alok, you've guided that FY27,
09:02 BB Fintech will make a thousand crore PAT,
09:06 or around that range.
09:09 Where does revenue go from here?
09:11 Because your revenue growth has been steep
09:13 over the last couple of years,
09:15 but now with the higher base,
09:17 can you continue to sustain that kind of number?
09:19 Or will it taper more towards the 30% kind of a mark?
09:23 - No, we are very comfortable with 30% sort of growth rate.
09:27 I mean, yes, there will be some quarters
09:29 where you will see maybe 40, 42%, 43% numbers.
09:33 But if you look at the CZR level
09:35 over the next three years, four years,
09:36 we are very, very comfortable with 30% number.
09:39 And with that 30% number also,
09:40 we should be able to deliver a thousand crore PAT
09:42 quite comfortably in FY27 as per our estimates.
09:45 The levers are very, very clear.
09:50 The number of people who are coming to PolicyBrah
09:51 for searching for their needs,
09:54 the sort of tech and data analytics that we put in,
09:56 the sort of operation layer we have across sales,
09:58 surveys, renewals, claims,
10:01 all that seems to work in a very, very beautiful way,
10:03 in a very, you know, put together,
10:06 the people charged going to sort of deliver
10:10 the thousand crore PAT that we have talked about,
10:11 we are comfortable with 30% guidance
10:13 in terms of the growth rate.
10:14 Sure, understood.
10:16 And Alok, if I can stick with you,
10:19 how does EBITDA therefore evolve?
10:21 PAT, of course, you'll likely get positive FY24,
10:26 given that Q4 is the strongest quarter,
10:28 as Yashesh has pointed out.
10:30 So where does EBITDA and PAT evolve over, say, FY25,
10:34 if I can ask you in the near term?
10:36 We don't have any specific number in mind for FY25,
10:40 but if you look at our business,
10:42 from EBITDA to PAT, there are not too many items.
10:45 Yes, there will be some deficient charge of financial aid
10:48 as per the accounting norms,
10:49 and there'll be some other income coming
10:50 because the amount of cash we have on the balance sheet.
10:53 But overall, you know, in our businesses,
10:56 because there is not too many things
10:58 which will go beyond EBITDA,
10:59 you know, you'll see that next year,
11:02 the whole EBITDA number itself will be positive.
11:04 It's not adjusted EBITDA, but the EBITDA number itself.
11:07 So yeah, there is no specific number in mind,
11:10 but just think about it.
11:12 I mean, if you go by 30% over the base
11:15 that we have this year,
11:16 suppose the revenue this year is in the range
11:18 of 3,500 to 3,600 crores.
11:21 If you go by 30%, you're talking about
11:22 at least 1,000 crore plus extra revenue coming out of that,
11:26 and at 30, 35% of profit coming out of that
11:30 additional incremental revenue,
11:32 you're ultimately looking at a number
11:33 which is somewhere between 300 to 400 crores incremental
11:37 over what we deliver this year.
11:39 That's just a very, very basic level of how it will work.
11:42 - Sure, and how does, if I can switch it back to Yashesh,
11:48 Yashesh, you know, you've done very well
11:50 where the ARR is concerned,
11:51 therefore maintaining that consistency on top line.
11:55 What's really helping you stand out
11:57 and therefore aiding that ARR number every single quarter?
12:01 - See, over the last 16 years,
12:03 we have invested a lot in educating the consumer
12:07 about the need for health insurance and life insurance
12:09 to protect against death, disease, disability.
12:11 And what that implies is we are the go-to brand,
12:15 and thus we keep getting a huge amount of traffic.
12:19 Beyond that, as the nuclear families increase,
12:23 so if you look five years out,
12:24 we had 70% of our business from metros.
12:26 Today we have 70% of our business
12:27 coming from tier two, tier three cities.
12:29 So India's evolving, the young are evolving,
12:33 nuclear families are growing, income levels are increasing,
12:36 the awareness for protection is increasing.
12:39 What we are doing is a good job in terms of disclosures.
12:43 That implies that the business we are doing
12:45 and the volume and quality are good for the suppliers.
12:48 So in a way, all of this comes together.
12:50 We are investing more and more in technology,
12:52 in operational efficiency
12:54 to make our operations more efficient.
12:56 So at three levels, one is attracting consumers,
12:59 second is doing the disclosure,
13:01 and third is investing enough in operational technology
13:05 and operational efficiency to make that part better.
13:09 Those three essentially allow you
13:11 to keep growing into the future.
13:12 And the best part is the industry itself is growing.
13:16 The bedrock industry of insurance is growing
13:18 at 10, 15% a year anyway.
13:21 So growing at double that rate
13:23 does not seem like a challenge.
13:26 And if you look at the last three years,
13:27 we've grown at an average of about 60%.
13:30 We are talking about 30%.
13:31 We're talking about half the growth rate
13:34 for the next three years as a sort of minimum guidance.
13:37 I think we are fairly, and you know, just stick with that.
13:40 Just growing at 30% for the next three years
13:43 means about 3,500 to 3,600 crores of extra revenue
13:48 in the next three years.
13:50 And that is exactly where the thousand crores
13:52 of extra profit comes from.
13:54 It's, there's no rocket science here.
13:56 - Sure, point taken, Yashesh.
13:58 Let me quickly move on to the one key feature
14:01 that stood out in this particular quarter.
14:03 And Alok, I'll allow you to address this.
14:05 When you're looking at, you know, new initiatives
14:08 and the way those have really kicked in in this quarter,
14:11 I think that's really surprised slightly on the upside
14:15 where investors are concerned.
14:17 So now you're at break-even on new initiatives.
14:20 Your cash balances are strong.
14:22 So I'm gonna club these two.
14:24 Where does new initiatives go
14:25 in terms of profitability break-even?
14:28 And second, where, what do you do
14:31 with the kind of cash balance you have now?
14:34 - Sure, so on the new initiatives, see,
14:37 we do not have a specific number in mind
14:39 that, okay, we have to get to a particular
14:41 sort of profitability or a growth number in mind.
14:43 We want to grow as fast as possible.
14:46 New initiatives will not be driving the loss of profit.
14:50 I mean, if you look at the console profit or loss,
14:52 say, three years from now,
14:54 it will not be a major factor either ways.
14:57 But we hope that in three years,
14:58 we are able to get to the EBITDA level break-even.
15:00 Right now we are at the control level break-even
15:02 for new initiatives.
15:04 You don't need to invest too much,
15:06 but yes, we will be very, very keen
15:07 that all of our new initiatives continue to scale
15:09 and continue to grow and provide more and more,
15:12 you know, strength to the whole company.
15:14 Now coming to your second question around cash balance,
15:17 yes, we do have a very, very healthy cash balance
15:19 right now on the balance sheet
15:20 and we are very comfortable holding it right now.
15:23 We are quite, you know, opportunistic
15:26 in terms of where we need to invest that money.
15:29 And the whole focus for the company right now
15:31 is to get into deeper into the value chain,
15:33 whether it is looking at the re-instance brokerage play,
15:36 whether it is looking at working with our partners
15:38 on new product creation, creating a same support layer,
15:42 creating a physical operation layer.
15:45 So all these things are more of, you know,
15:47 variable cost to finance.
15:48 You don't need huge amount of investment
15:50 as you look at all these layers.
15:52 So yeah, I mean, we'll decide about what do we do
15:55 with the capital allocation.
15:58 But right now, very, very comfortable
16:00 with both the cash balance
16:01 and the way our new net interest rate progressed.
16:04 - Sure, I look forward to understanding
16:06 what you're gonna do with that war chest of 5,000 plus crore.
16:09 But that another time, I guess,
16:11 we're completely out of time on this one.
16:14 Alok, Yashesh, it's been a pleasure interacting
16:17 with you guys and understanding what's happening
16:19 with PB FinTech, of course, the stock up and away.
16:21 I'm gonna slip into a very short break.
16:23 We'll be right back and we'll continue to discuss earnings.
16:27 We have Indian Metals and Ferrous Alloys Limited.
16:30 Company's managing director will speak with us.
16:33 (upbeat music)
16:36 (upbeat music)
16:51 (upbeat music)
16:53 (upbeat music)
16:56 (upbeat music)
16:59 (upbeat music)
17:01 (upbeat music)
17:04 (upbeat music)
17:06 (upbeat music)
17:09 (upbeat music)
17:12 (upbeat music)
17:14 (upbeat music)
17:17 (upbeat music)
17:19 (upbeat music)
17:22 (upbeat music)
17:25 (upbeat music)
17:28 (upbeat music)
17:30 (upbeat music)
17:33 (upbeat music)
17:36 (upbeat music)
17:39 (upbeat music)
17:41 (upbeat music)
17:46 (upbeat music)
17:50 (upbeat music)
17:54 (upbeat music)
17:59 (upbeat music)
18:07 (upbeat music)
18:09 (upbeat music)
18:14 (upbeat music)
18:20 (upbeat music)
18:27 (upbeat music)
18:35 (upbeat music)
18:38 (upbeat music)
18:44 (upbeat music)
18:51 (upbeat music)
18:57 (upbeat music)
19:05 (upbeat music)
19:08 (upbeat music)
19:14 (upbeat music)
19:20 (upbeat music)
19:27 (upbeat music)
19:34 (upbeat music)
19:36 (upbeat music)
19:53 - Welcome back.
20:02 This is the Small and Mid-Cap Show on NDTV Profit.
20:05 I have with me the management of Indian Metals
20:09 and Ferris Alloys Limited.
20:11 We have Subrakanth Panda,
20:12 who's the managing director at the company.
20:14 The stock is up nearly seven and a half,
20:17 now almost nearly 8% now.
20:19 So doing very well in trade
20:21 on the back of those solid numbers.
20:23 So firstly, pleasure having you here on NDTV Profit.
20:27 - Good morning, Harsh.
20:30 Thank you for having me on the show.
20:32 - Right, so let me kickstart and try and understand as to,
20:36 or try and set the context here.
20:39 So, your revenue has grown roughly 10% thereabouts.
20:43 How do you assess the quarter?
20:44 - So, Q3 FY24 has actually been a very, very good quarter
20:50 for us, because if you look at the corresponding quarter
20:54 in FY23, basically our,
20:59 you know, Ferrochrome prices have moved up noticeably,
21:02 while at the same time our input costs have gone down.
21:06 And that is what has led to a sharp increase
21:09 in the profitability by nearly 10 times.
21:13 But I always make this point that, you know,
21:16 we are a company where you shouldn't be looking at it
21:18 on a quarterly basis,
21:21 because Ferrochrome prices do tend to be volatile at times.
21:25 And, you know, you see these elevated margins
21:28 when prices have moved up and costs have come down.
21:31 But, you know, that is all sort of, you know,
21:34 that can change a little bit as well.
21:37 So it is always better to evaluate us on, you know,
21:39 over a period of two to three quarters
21:41 and see how we have done on average during that period.
21:44 Having said that, we have certain strengths
21:45 which work very well for us.
21:48 We are a fully integrated producer,
21:49 which means we have our own captive chrome ore mines.
21:52 And therefore we are not, you know,
21:55 affected by the vagaries of chrome ore availability
21:57 or pricing.
21:59 We, of course, also generate our own electricity.
22:01 But more importantly, you know,
22:03 over the last couple of years, we have pared down debt
22:06 and we are now a long-term debt-free balance sheet.
22:09 And that, of course, adds tremendous strength.
22:12 And therefore, when we look at our expansion plans
22:14 and we are going to be spending about 2,000 crores or so
22:17 over the next seven to eight years
22:20 in terms of increasing our smelting capacity
22:23 and backing that up by enhancing our ore raising
22:28 from the current about 6,000,000 tons
22:30 to roughly double of that.
22:32 And we are looking to do that
22:34 primarily out of internal accruals
22:36 and not even look to raise any debt,
22:39 let alone dilute the equity.
22:41 So a lot of things working in our favor.
22:45 And we are, you know, going ahead,
22:48 looking at, as I said, adding to our smelting capacity
22:50 in order to effectively utilize the resource base
22:54 which is available to us
22:55 by way of the captive grow more mines.
22:58 - Sure.
22:58 Point taken, sir.
22:59 So two things aided in this quarter.
23:01 One is your finished product pricing was better.
23:05 Your raw material pricing has been also better.
23:08 So both of those aiding profitability.
23:11 How do you see the sustainability of some of these numbers
23:14 over the next two to three quarters,
23:16 as you would correctly put it?
23:17 Is this a quarter where you really stood out
23:20 and therefore the next quarters may be more tempered?
23:23 - So, you know, you've hit the nail on the head
23:27 as far as Q4 FY24 is concerned, the ongoing quarter,
23:31 it'll be slightly tempered for the simple reason
23:34 that prices have cooled off a little bit, you know,
23:36 courtesy all the geopolitical developments,
23:38 including the, you know, the Red Sea situation
23:41 and all of that.
23:42 Although we are not directly affected by it,
23:44 but, you know, that has had a slight dampener on effect
23:49 on commodity prices in general,
23:51 and Ferrochrome is no exception.
23:53 So we'll see a slight tempering off in the ongoing quarter.
23:57 But as far as the full year FY24 is concerned,
23:59 it is still going to be one of our best ever, you know,
24:02 the second best in terms of profitability.
24:05 In terms of our Ferrochrome production,
24:08 we are looking at an all-time record this year,
24:11 roughly about 6% to 7% higher in volume terms
24:14 as compared to FY23.
24:17 In terms of ore raising,
24:18 we are going to cross the 6 lakh ton mark
24:22 for the first time.
24:23 In fact, registering 6.7 lakh tons of ore raising,
24:26 that's the budget for the ongoing financial year.
24:30 And that will further go up in FY25,
24:33 crossing 7 lakh tons for the first time.
24:35 And that is the basis on which we have, you know,
24:38 we have made our growth plans.
24:40 So if I were to look at,
24:41 coming back to your specific question about pricing,
24:44 current ongoing quarter will be slightly tempered,
24:47 but in as much as the first half of FY25 is concerned,
24:51 we are fairly confident about maintaining margins,
24:56 you know, broadly EBITDA margins should be 20% plus
24:59 or thereabouts.
25:00 In terms of our budgeting for the year,
25:02 we have been slightly conservative
25:03 as we always prefer to do.
25:06 And if you look at where prices are at the moment,
25:08 I think downside is very limited here on
25:11 because the cost structure for non-integrated producers
25:15 is already at a sort of,
25:16 at a point where it doesn't make sense for them.
25:19 Therefore, I don't see any downside in ferrochrome prices.
25:23 I see the potential for some upside
25:24 in the next couple of quarters.
25:26 And for an integrated producer like us,
25:29 where the costs necessarily doesn't move up
25:32 when the commodity prices start moving up,
25:35 that translates to the potential for better margins.
25:39 - Sure, absolutely.
25:39 So you've given us a good overview with regard to even
25:42 where your capacity goes in the next year.
25:45 But if I can have a better overview with regard
25:47 to where you see capacity go over the next three years,
25:50 and you believe utilizations will continue
25:53 to remain extremely healthy,
25:55 is that how one should look at it
25:56 with the capacity going up?
25:57 So that's my first question.
25:59 My second piece to that question
26:01 is to try and understand that you also had a bid
26:05 which has, for which you are,
26:08 the Supreme Court has actually sanctioned it
26:10 to another party.
26:12 Now, you are entitled to a compensation.
26:14 If you can give us an overview
26:15 of how much that compensation is,
26:17 and when will that come?
26:18 - Sure.
26:20 So the first question,
26:22 our current ferrochrome capacity,
26:25 installed capacity is 2,84,000 tons.
26:28 And as against that, we are, as I said,
26:31 expecting to produce close to 2,60,000 tons
26:33 in the ongoing quarter.
26:34 And expect to maintain the same volume in FY25 as well.
26:38 In as much as that expansion plans are concerned
26:40 in phase one, we are looking to add 100,000 tons
26:45 of ferrochrome capacity in Kalinga Nagar
26:47 in Georgeport district of Odisha.
26:49 And we are expecting that to be commissioned,
26:53 close to, I would say Q2 or Q3 of FY26.
26:58 So let's say around, somewhere around July to September
27:02 of 2025 calendar year is what we are looking at.
27:07 And yes, we expect utilizations to be robust
27:12 because we follow a principle of long-term contracts
27:16 where prices are reset either every month
27:19 or every quarter, depending upon the customer.
27:21 But the tonnages are, offtake is guaranteed.
27:24 And that has worked well for us because,
27:27 we don't want to, I mean, we certainly have the ability
27:29 to catch any upside, but we don't want to purely go
27:33 on the spot market, which is, where then tonnage,
27:36 placing tonnage may become a problem in certain times.
27:41 Now, as far as the coal block compensation is concerned,
27:44 that's been a long running saga.
27:47 But finally, the nominated authority
27:50 in the Ministry of Coal has given
27:51 a final compensation order valuing land
27:56 at about 352 crores.
27:58 We have already received about a little more than 20 crores
28:00 for statutory expenses.
28:02 There is some mines infrastructure in there.
28:04 So broadly that'll work out to about 390 crores
28:08 of which 20, a little more than 20 is already with us,
28:11 has been with us.
28:12 The new allottee has chosen to,
28:15 litigate that number in the assigned tribunal,
28:21 but no stay has been granted.
28:23 And of course, it is their right to challenge that number.
28:26 We also feel that the final compensation order
28:30 is slightly undercooked in terms of,
28:32 there are certain elements which were included
28:35 in the initial compensation order,
28:36 the interim compensation order,
28:38 which has been later on taken out.
28:39 And we believe we're entitled to that,
28:41 but be that as it may, since no stay has been granted,
28:45 we expect that money to come to us sooner rather than later.
28:49 And that will of course add
28:50 to our already healthy cash balances.
28:52 And that's what gives me the confidence
28:54 that we will be able to maintain our,
28:57 long-term debt-free balance sheet status,
28:59 even as we take up significant expansion
29:01 over the next six to seven years.
29:04 - Understood, sir.
29:04 Thank you so much for that comprehensive reply,
29:07 but we're completely out of time on this one, Mr. Panda.
29:09 It's been a pleasure speaking with you.
29:11 More on the other sides.
29:12 Thanks for staying tuned to NDTV Profit.
29:14 (upbeat music)
29:16 (upbeat music)
29:20 (upbeat music)
29:23 (upbeat music)
29:25 (upbeat music)
29:28 (upbeat music)
29:30 (upbeat music)
29:33 (upbeat music)
29:36 (upbeat music)
29:38 (upbeat music)
29:41 (upbeat music)
29:43 (upbeat music)
29:46 (upbeat music)
29:49 (upbeat music)
29:51 (upbeat music)
30:02 (upbeat music)
30:12 (upbeat music)
30:15 (upbeat music)
30:24 (upbeat music)
30:36 (upbeat music)
30:38 (upbeat music)
30:46 (upbeat music)
31:04 (upbeat music)
31:06 (upbeat music)
31:17 (upbeat music)
31:27 (upbeat music)
31:30 (upbeat music)
31:40 (upbeat music)
31:51 (upbeat music)
31:53 (upbeat music)
32:18 (upbeat music)
32:20 (upbeat music)
32:27 - Good morning and thanks so much for joining in.
32:39 You're watching Ask Profit.
32:40 My name is Alex Matthew, with me is Smriti Chaudhary.
32:42 We'll take you through the next half an hour or so of trade.
32:45 It's a pretty picture.
32:46 If you look at the benchmark indices,
32:48 we're gaining about eight tenths of a percent.
32:50 And in fact, the broader market's looking buoyant as well,
32:53 ahead of the union budget.
32:55 And there was expected to be a little bit of caution,
32:57 but that doesn't seem to be playing out right now,
33:00 with the benchmark gaining, as I said,
33:02 about eight tenths of a percent.
33:03 The mid-cap index up about a percent or so,
33:06 and you have the small cap index
33:08 that's up as much as one and a half percent.
33:10 Let's take a look at some of the key contributors then.
33:13 And from the benchmark index,
33:14 you have a few big names before,
33:17 because they are doing well.
33:18 HDFC Bank gaining back some ground,
33:21 and Reliance Industries also proving to be one of the gainers
33:24 and leading to the big weight on the benchmark.
33:29 You have about 20% of the benchmark
33:30 that is gaining ground and leading.
Comments