Earnings Call Transcript - XNSE:NATIONALUM 2026-11-03

Operator

Ladies and gentlemen, good day and welcome to the Q2FY27 Earnings Conference Call of National Aluminium Company Limited Conference Call hosted by Systematics Group. As a reminder, all participants' line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta Dixit from Systematic Group. Thank you and over to you, ma'am. Thank you, Ikra.

Shweta Dixit, Head of Investor Relations

Good morning, everyone. On behalf of Systematics, we welcome you to the Q2 and FY27 earnings conference call of National Aluminum Company Limited. I would like to thank the management for giving us the opportunity to host this call. And I now hand over to Mr. Bharat Sahu, Company Secretary Nalko, to discuss the company's results as well as introduce the management. Over to you, sir.

Bharat Kumar Shah, Other

Namaste. Good morning. Warm greetings from National Aluminum Company Ltd., the Navratna CPSC under the Ministry of Mines. It's a privilege introducing our CMTs with Vijendra Pratham and Sri Avery Kumar Vivalya, Director of Finance, attending this morning call today. I am Bharat Kumar Sawa, Company Secretary and Comprise Officer of Nalapur. Nalpho published an impressive Q2 and H1 27 financial results last evening after the board proofing term record. I take the pleasure informing all of you that this is the best ever popular results with regard to Revenue, GBT, PAC, and EBITDA of Nalpho since its inception. A presentation in this regard has already been uploaded in the websites of the stock exchanges that is NACBS and also on the website of It is also circulated to allow you through systematics. I hope you all must have received it by now. Just to briefly give an idea about the results yesterday. In fact, the H1 revenue was all-time high of 11,143 crores, all-time high of EBITDA of 5,539 crores. Hi, Kevin. Yeah. PVT of 5,160 crore, high cover pack of 3,837 crore. The H1 net profit was off by 54% year-on-year basis, compared to 3837 of last year, 2526. So also the Q2 net profit, this Q2 27, is off by 28% year-on-year basis, compared to 1835 crore last year. So, without waiting any time, we open the floor for coaching answers from another side, and our CMD will address all the queries raised by the XMD members attending this contest now. Thank you.

Operator

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Manav Gogya from Aritya Virla Institutional Equities. Please go ahead.

Manav Gogya, Analyst — Aditya Birla Institutional Equities

Yeah, good morning, and thank you so much for the opportunity. So my first question comes around, you know, what's the status on the refinery, and if you could just elaborate on where we are currently in terms of commissioning and the stabilization, and along with this, if you could also provide me with the status of Potangi mines and how the Otkal coal mine expansion is looking for this particular fiscal.

Siddi Soni, Analyst — Hansa Financial Consultancy

Okay.

Speaker 7

Good morning.

A. K. Behera, Analyst — CMD

Thank you, Mr. Manav. Three questions which you have asked regarding the fundery, fund me and myself. My name is BPC, CMD Nalco. Refinery, system refinery is in very advanced phase of completing the mechanical completion, we have already many packages we have completed and started the trials testing. Out of around 50 packages, around 30, 34 packages, 35 packages already have been completed. 3, 4 packages are in the critical part, which are already almost 90% completion, physical completion, 90, 92% physical completion is there. So, what we are targeting is the packages which are getting completed, we are already have started doing the trials of that packages, no load trials and all now. So, integrated trial of the fisting and start of the production we have planned in last. Well, for the last month, last week of the December, we will be completing all the packages which is left out and starting the integrated trial and starting the production from last week of December or maybe early of January. So that is the status of friction refinery. Potanghi Mines, we are very excessively working with state government and The locals out there, we have ordered to an MDO. They are also engaging with the local people. They started some jobs there. But one of the main constraints which we are facing is starting the mines is clearing of the trees for the road making going from NH to mines. For that, some kind of resistance we are getting from the locals, from local activists. But it is taken at the highest level when our ministry, state government, they are seeing it, they are negotiating with the people. And we are hoping that within 2-3 months we will be able to solve this issue and start the months. So that is one issue of concern for us, which we are taking it very adjustably at all levels, and we are very much sure that we will be able to solve it. And football mines already, last year we have done 4.8 million ton, 4 million ton to the rated capacity of the mines. This year we have planned for 4.8 million ton, all clasences are there with us. Environmental clasence for 4.8 million is under process and I think within 2 months or 3 months we will be getting that. But for this year, yearly we are going as per the rate of 4.8 million ton for a sum of coal. So, that target of persons with 8 million dollars will be based on us also. I think these are the three queries which you require.

Manav Gogya, Analyst — Aditya Birla Institutional Equities

Let us clear from our reply. Yes, thank you so much, sir, for the detailed answer.

Rajesh Majumdar, Analyst — 361 Capital

Just one more thing.

Manav Gogya, Analyst — Aditya Birla Institutional Equities

So, you are saying that early Danbury is where the refinery starts. So, is it safe to assume that we will be running at full utilization levels for next year, or do you think that, you know, probably the ramp-up period might lead some up to utilization for next year?

A. K. Behera, Analyst — CMD

If you are able to start the production in January, maybe it will take 3-4 months to 4 months or maybe 5 months, 3-4-5 months to reach to the 100% of the rated capacity. Our target basket from next year onwards, we will be taking to the full capacity. Maybe not 1 million ton, maybe 0.8 million ton or 0.75-0.8 million ton, we will be able to do next year.

Manav Gogya, Analyst — Aditya Birla Institutional Equities

Oh, understood, understood, sir. Thank you so much. My second question is, yes, my second question is on the smelter front. If you could throw some light, you know, on the status of the approvals for the brownfield expansion, and how should we look, you know, at the capex over the course of the next four, five years, and also if you could throw some light on how the greenfield smelter in Ansar Pradesh is going to look like. Yes, thank you.

A. K. Behera, Analyst — CMD

Smarter expansion mounted at Angul. Then, of course, to do whatever we have targeted, and we have given our timelines to the Ministry of Mines, that we are almost able to achieve it. Only one or two months, three months delay is there. The technology license agreement with EGI is already signed. It says EGI in Dubai. They will be giving the technology that was signed two months back. And now we are making the DPI as a little project report. We are expecting somewhere in January or February. This TPR will be completed, we will be taking for the board approval, maybe February we get the board approval, after that we will start the ordering of the packages, there will be around 17,000 crores or 18,000 crores of investment. So a lot of big packages were there. So ordering these packages, inventing and ordering will take maybe six to eight months. So our target and we have given this target to the ministry also that by December next year, we will be ordering all the packages and land acquisition is Also in the advanced phase, we will be getting the land also February, March next year. So by that time, land availability will be there. So our groundwork will start there somewhere from January, February 28. From there, three years to three and a half years. The target we have given to the ministry is December 30. We will complete the mechanical completion and maybe 31st quarter, we'll start the commissioning. So till now, the 10 minutes we are maintaining. And for the power plant, for this smelter, the power plant will also be required. For that, we have already, we are making a JV company with Nevedel Ignite Corporation. Nevedel Ignite Corporation, 50-50% JV company is already approved by JPM and all that. We are progressing on that. DPR already made. DPR we are taking to the board next 2-3 months, 2 months, that will be getting approved. And that package ordering also will start. The main purpose was making the JV was that Nevely Lignite are having coal mines near our power plant, so we will be sourcing coal from there and the coal which we will be getting will be at their production cost and no premium they will be charging from us. So there will be actual security for our thermal power plant, so that our overall power cost goes down.

Manav Gogya, Analyst — Aditya Birla Institutional Equities

Hello, sir. We are talking about the capex expenditure.

A. K. Behera, Analyst — CMD

The main capex expenditure will start coming from the year 28-29, financial year 28-29, when the actual groundwork, some ordering of technology license which was fine, some capex very less, around 2-300 crores will come, but the major package of both smelter and power plant which will be total costing around 25,000 crores. So, around in the year 28-29 around I think 5-6 thousand crores or maybe after that 7-8 thousand crores will come in 28-29 and 29-30 and 30-31.

Manav Gogya, Analyst — Aditya Birla Institutional Equities

Understood sir. That is quite helpful.

Operator

Thank you. The next question is from the line of Pratanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.

Patanjali Srinivasan, Analyst — Sundaram Mutual Fund

Hi, sir. Thank you for the opportunity. I have a couple of questions. Our cost of production has gone up by almost $75 or $100 roughly at EBIT level. Could you tell us like where are the main areas where you have seen increase in cost and how do we see this trending for the second half?

A. K. Behera, Analyst — CMD

Well, you see the cost of production has increased for the raw material cost measure increase has been in caustic soda, in sippy coke. And in the three areas, the cost has increased. As compared to the cost of 25-26 cost, the shipping of the costing soda prices, like in last year, average costing soda was around 25-26. The average price we got was around... So, we have a look at the price of $4,900. In H1 this year, the price went up to $46,900, around $4,700, $800 increase. And Q3, the prices will be around $49,000. Again, $4,000, $4,000 increase in costed soda. That is the kind of projection for costed soda. CP coke UC in 25-26, it was average CP coke was $44,600. H1 this year, it went to 63,700 and Q3, the projection is 70,600. Again, HFO and LDO prices have also gone up. LDO prices from 60,000 to 84,000 to 1,15,000. So all those prices around 15% increase in the prices that are added to finances also here. So that has led to the increase in raw metal prices and increase in our expenses.

Pinakin, Analyst — HSBC

Actually, for multiple costs, we have increased.

A. K. Behera, Analyst — CMD

Page 1. I think the price increases with the input area. That we have observed. So, in the next S2, there is no major increasing input cost. Rather, we will be controlling our cost by improving our economic efficiency. In the first half of this year, there was adverse impact of technology, which we will be taking action for the next half. That will give reduction cost by about 500 to 1,100 million cost. So, that is our plan. Because we will be controlling our caustic soda consumption, CTP, CPCO, all areas, so that area we will be taking care of in the next half, because of some issues in the region, everything we could not maintain our technical economy in the first half. But since the cost is increasing, we are going to get some relief in that area, just financially, next half of this.

Patanjali Srinivasan, Analyst — Sundaram Mutual Fund

Sorry, our voice is a little muffled. Could you repeat why you will get relief in the second half with respect to cost?

A. K. Behera, Analyst — CMD

Because some of the areas where we are not good in our techno-economic area, so that will be continued because the dry season will be there and production will go up and our techno will be also Controlled by taking some action, which was not taken during this rainy season, particularly in Kostikshura area, because of rain, we could not recover much of Kostikshura from our slime plant, that is, redwood plant, that action has been taking away some action and got to resolve a reduction of 6 to 7 kg in Kostikshura products. Ah, got it. Got it, sir.

Pinakin, Analyst — HSBC

Okay, sir.

Patanjali Srinivasan, Analyst — Sundaram Mutual Fund

And then I have one more question with respect to alumina. So, how has your price increases been in alumina? I think globally we are seeing an increase in alumina prices. So, can you tell us like how much you have been able to increase like in October from exit of September? I think September exit was 386 based on your reported number. So, where are we today?

A. K. Behera, Analyst — CMD

You see, alumina spot prices, whatever we are getting, in first quarter of this financial year, average prices we are getting was somewhere around $324 per turn in first quarter. Second quarter, it increased, it has improved. We are now at least getting on an average $370. Some of the spot it was $400 also, or more than $400 also. But average we are getting somewhere around $370, $375. So, there is an increase in alumina spot crisis realization because some of the refineries issues in China, in Rusal, in Australia also, which has led to this crisis of alumina. If you see the regulation, if you see your H1 regulation, average regulation was 33,200 rupees. And we are expecting that your H2, average regulation will be around 35,000. So there will be 2,000 increase now with revenue regulation in respect of alumina. And cost will be maintained at this time. Rather, we will be reducing cost by 500 or 1,000 rupees. That is your turn.

Rajesh Majumdar, Analyst — 361 Capital

Great, sir.

Speaker 7

Thank you, sir. All the best. Thank you.

Operator

Thank you. The next question is from the line of Akhilesh Kumar from MK Global. Please go ahead.

Akhilesh Kumar, Analyst — MK Global

Yeah, hi. Thanks for the opportunity, sir. And my question stands on the Illumina itself, sir. Despite the strong Illumina pricing, like you mentioned, that cost components were kind of offset the, you know, margins. So, how do we see this going forward, given we are seeing already an uptick in the alumina realization? So, are we able to expand our margins from the 2Q levels, or how do we see it, given the cost pressure is also there?

A. K. Behera, Analyst — CMD

The Illumina relation, what the podcasts are there. We will be getting somewhere around 370 to 400 because some of us mentors are starting in Middle East. In Indonesia also some of the smilters are starting, there will be a greater demand of alumina in the market because if you see in the H1, there was a surplus of alumina in the market and the projections were that in the year 26-27 financial year around 1.6 million ton of excess alumina will be there in the global market. Now, with this military starting, some kind of adoptions will be there. So, we are expecting somewhere around 370 average will be whatever we got in Q2. Almost similar kind of situations will be there. But ultimately, everything depends on almost blockage because there is a demand of alumina in the Middle East, but the vessels are not going through those blockages. So, due to which the insurance charges have increased, the shipment charges have increased, so that's why the buyers, the spot buyers who are buying, they are quoting somewhat low. If these situations get improved, then the prices may further increase.

Akhilesh Kumar, Analyst — MK Global

Okay, so for 3Q or the second half, if we say so, we see the margins remaining stable at 2Q level, is that the right understanding?

A. K. Behera, Analyst — CMD

Yes, sir. In the second half of this discussion, we expect that our margin would be stable, because three potential areas are there, because we are going to start our new refinery, which will be giving 2 lakhs extra alumina, and if we convert to the financial storm, it will give 150 crore extra margin to our treaty. So, that is one of the areas. Another techno-economic area, in the first half, we could not get the benefit of techno-economics, which we are expecting to get the benefit. It will add at least 100 crore to our profit margin. Two areas, third is one area. In the first of this year, we have taken an original impact of royalty, because the area... Which the government of Bodhisattva claimed, that we have observed in the first of the year, which will not be repeated in the second year. So that will give us 50 pro-restra. So all about we are going to get 300 to 350 pro-restra in the next half of this year.

Akhilesh Kumar, Analyst — MK Global

Got it. And sir, do we maintain our alumina full year guidance of 2.5 million tons of production?

A. K. Behera, Analyst — CMD

You see, now with the present family of 4 friends, we are going at the rate of... 2.3 and 0.2, we are planning from first train. So even if you are starting in January, may not be 0.2, but definitely 1.5 will be in the next year.

Akhilesh Kumar, Analyst — MK Global

Sir, 2.4 million tons kind of be maintained for the full year.

Rajesh Majumdar, Analyst — 361 Capital

2.4 million tons.

Speaker 7

2.4 million tons.

Akhilesh Kumar, Analyst — MK Global

What voice was bit muffled?

A. K. Behera, Analyst — CMD

2.45.

Akhilesh Kumar, Analyst — MK Global

Okay, got it. And my second question is on aluminum. So now as we see, aluminum pricing has been under pressure over the last one month due to Middle East supply coming up. So does that change our strategy to hedge some of our aluminum production or we still want to sell on spot basis?

A. K. Behera, Analyst — CMD

Aluminum, we are not selling on the score basis. Our aluminum metal pricing is totally dependent on LME, whatever LME is there. We have a MOU with our customers because most of around 95% of our customers are domestic customers. In the beginning of year, we do the MOU for the quantity and pricing is done on the basis of the LME. So, it is totally dependent on LME, how the LME is moving. LME, of course, has gone down in Q2 as compared to Q1. And at the beginning of year also, we have assumed that LME will be somewhere around 3,000, 2,900 to 3,000. Due to why it went up, but our annual target, whatever we have taken, annual business plan, that we have expected that 3,000 and we are very much confident that it will be somewhere around 3,000.

Akhilesh Kumar, Analyst — MK Global

So, we are not hedging any volumes as of now at a lower or higher price?

A. K. Behera, Analyst — CMD

So, actually, as per Nanko policy, we have not gone for any hedging of our commodity. And since our pricing mechanism, since the same research has explained, it is linked to our LME, whatever LME movement is there, that we capture in our price. And every three days, every three days, we revenge our price as per the movement of LME. And we add the other factor also, that is the premium and other importer duty. So, since our price mechanism used to take us from the movement of NME, so we don't hedge anything. So, at this point of time, NALCO, I don't think, required to hedge anything because we don't have any commitment, financial commitment for our CapEx, ICO, and any other revenue, margin, or maintaining. So, we don't require hedging this part. After commissioning of our fees from refinery, we'll see it, if we go for any hedging amount.

Akhilesh Kumar, Analyst — MK Global

Got it, sir. And, sir, lastly, if I could squeeze in one more. So, sir, how are we assessing the Middle East situation right now with the capacities coming up and ramping up fast? What kind of supply-demand imbalance are we seeing? Do we also see surplus in CY27?

A. K. Behera, Analyst — CMD

In Q3 and Q4. The demands of alumina will be there. But what is happening since the ships are not able to go through the state of warm use, lot of restrictions are there. So they are taking through some land route and all that. It is increasing the cost of alumina on the smelters in the Middle East. So, they are not ramping to the polypastic because the aluminum ability is not there. Once this situation of bomb is, and maybe today I think the election is taken and what happens, we don't know. After that, if it improves, definitely the cementers will, in the Middle East, they will ramp up their production because there is a huge shortage of aluminum there. All the aluminum which they are taking is they are taking to some other, some sohar or some other ports and by land, by trailers and all that, they are taking the aluminum. So that is increasing the air force. So, that is the situation as of now. So, depending on this geopolitical situation in the Middle East, but of course, the situation which was there in H1, the production of metal in H2 will be more than that, whatever this metal has dropped due to some bombing and some disruptions due to war that has started coming up and in H2, they will decrease their production. So, that is kind of what is happening now.

Speaker 7

Got it, sir. Thank you so much.

Operator

Thank you. The next question is from the line of Darshan Mehta from Dalit Capital. Please go ahead.

Darshan Mehta, Analyst — Dalit Capital

Yes, sir. Thanks for the opportunity, sir. So, my first question was on the status of the conveyor belt of 7.9 km that we were going to build for transport of the bauxite. So, what are the status of that?

A. K. Behera, Analyst — CMD

Okay, for Tungyamans, long distance, Tungyamans, for that land acquisition, some land we have to get from forest department that has already handed over to us. And some park land around I think 80 or 100 acres or 132 acres of land is to be acquired from the private villages out there. For that, public hearing is scheduled and it was scheduled on 27th of this month. Again, due to some issues, it is deferred. So, which I told earlier also, both this public hearing for the land and tree-filling, these are the two issues which we are taking up radio-aggressively with the state government, with our ministry. So, somewhat delay is there, but a lot of improvement has come and we are able to mobilize the people there, our MBO is also there with us. We are expecting that all these issues we will be able to solve in next two to three months. And as far as the visibility of the conveyor is there, once we get the land, some of the lands are there with us. Our target is next two to two and a half years, we have to make this conveyor. This means around 18kms long conveyor, it will take some time. Till that time the boksite will be coming by the road. That will be this that is the plan we are moving.

Darshan Mehta, Analyst — Dalit Capital

Sir, just to understand, so you are saying the Kaneda belt will take two years, if I hear it correctly.

A. K. Behera, Analyst — CMD

Taking the conveyor belt, because 18 kilometer conveyor belt making, and the land also is, public hearing is going on after that also, some kind of activities are required. After that, it will take around six months or seven months or eight months to get the land. Till that time, whatever land is available with us, we will start the job and try to complete the conveyor in next maybe two years or two and a half years.

Darshan Mehta, Analyst — Dalit Capital

Oh, okay. Okay. And so other question was on this other income. So that has increased almost like 43% for total. So, sir, can you let us know what is the reason for this?

A. K. Behera, Analyst — CMD

This is because of the income, because one is your interest, because your fund base is increasing day by day, because of our earning, and another is we are also getting some interest, additional interest benefit, because of the empowerment of additional banks, we are getting a good rate of interest, and growth factor has increased our interest income, that is primary interest income, and some of the willpower, because willpower we have taken account of this H1, that was increased 10 to 10 crore extra. Another is privately on account of interest income. On what deposit? In our fund base, it was 8,500.

Rajesh Majumdar, Analyst — 361 Capital

From that, the interest earning has increased.

Speaker 7

One more question.

Darshan Mehta, Analyst — Dalit Capital

I think the central and large block lease tenure, I think it was going to end in 2029. So just wanted to confirm from you, is this understanding correct? And in case it is, then what is the process of renewal in that case? Does that mind go for bidding or that is automatic renewal, but maybe with some amount of increase incremental royalty or something?

A. K. Behera, Analyst — CMD

There is an automatic increase for government organization. There will not be any bidding. We have already started the process of appointing the consultant for doing all these due diligence, doing all these processes, completing. So already as per government norms and government guidelines, for the government companies, for public sector units, it will get automatically increased. So the process we have started, some kind of early increase and all that will be there as per the rules. So there is no issue in that. We will get those approvals.

Darshan Mehta, Analyst — Dalit Capital

The Central and North block would end in 2029, whereas the South block would be more like a 2031, right?

A. K. Behera, Analyst — CMD

You see north block, almost north block we are finishing. Central block, a lot of material is there. South block we have got two blocks, south block 1 and south block 2. South block 1 is also finishing, south block 2 we are having. So combined south block 1, south block 2 and central block we are having around 150 million tons of reserves and around 111 from Potangi. Around 250 million tons of reserves are there. It will last for next 15 years. Combined Potanghi and Central Block and South Block.

Darshan Mehta, Analyst — Dalit Capital

No, no, sir, I understand on the resource part, but what I was saying the lease tenure for the South Block would end in 2031. I understand that you would go for automatic tenure.

Speaker 7

No issues on that.

A. K. Behera, Analyst — CMD

Actually, if you see LMPT Act, there is a provision in the LMPT Act that the government company... They, the reason why they are there is a certain, what additional reality they may impose upon, because they cannot take out this sign and go for bidding. Because it is a captive man. It is captive by an hour guard, a fanery and plant is dependent on this. There is a legal provision also in the MMPR Act.

Darshan Mehta, Analyst — Dalit Capital

Yeah. All the suit. All the suit. Thank you. Thank you.

Operator

Thank you. The next question is from the line of Pinakin from HSBC. Please go ahead.

Pinakin, Analyst — HSBC

Thank you very much, sir.

Pinakin, Analyst — HSBC

My first question is, the alumina exports are down 16% year on year, given what is happening in the Middle East. As in when the situation normalizes and your export volumes pick up, should the mix also impact margins positively at the same index level of alumina prices? Are domestic alumina sales less profitable than export sales?

A. K. Behera, Analyst — CMD

You see, domestic, our major sales is in export market, because every month we sell around 4 shipments, that is around 1,200,000 tons of shipments. Till September, we were doing around 4 shipments every month. October, it got badly affected due to some restrictions in state of revenues. We could only dispatch one vessel in October. But now, situations, buyers are not able to put in the vessels. Already, vessels have been order A. They are in line. And this month itself, in November itself, we are planning around six vessels dispatched in this month. So, it is getting normalized. And what we are hoping is in the coming days, times, we will be dispatching around four vessels every month. Prices already have stored. Prices will be somewhere around $370 to $380 average what we are expecting. Depending on the demand supply situation.

Pinakin, Analyst — HSBC

Sure. My second question is, sir, you mentioned the caustic soda increase, and we can look at the implied alumina cost of production, which has surged.

Pinakin, Analyst — HSBC

Now, what is the current situation in caustic? Are prices expected to remain like this in the second half of the year? And the second is, this is a global cost inflation, so all alumina producers will be impacted at the same time. So, in that context, given that the alumina cost curve has moved higher, shouldn't we expect alumina prices to move even further higher as the shut Middle East smelters ramp up and start, you know, importing more alumina?

A. K. Behera, Analyst — CMD

You see plastic soda prices, what I told earlier also, it was average 25.6, 42,200 rupees per ton, H1, the prices were somewhere around 47,000, and in Q3, the prices forecast is around 49,000, so there is an increase of around, you see, H1 to H2 will be around 2,000 rupees per ton. We will be there, but prices, the relation which we get from the market, that is not depending on the environmental prices, that depending on the totally demand supply situation. And whatever you told, if the smelters are coming, we are also expecting with the increase in the production of smelter, the demand will be there, the prices will further increase. In between, what we are trying to do is, we are going to, we have already already floated So, we have to have one EOI for a long term di-up with the smelters in Middle East and other places. Maybe two years or three years di-up because our smelters which our ground field expansion which we are planning, this will come from financial year 21, maybe 31, year 31 or 32 as a final total ramp up will be there. So, till then we will be having an excess of around 2 million tons of alumina with us. So, we are trying for a long-term agreement with these smelters. If we are able to succeed that, so we will be able to get a better realization because if these smelters, if they get long-term agreements and all that, what we have seen, we get better prices. We are trying for that also, but till then somewhere around say 7380, we are hoping not more than that.

Rajesh Majumdar, Analyst — 361 Capital

Got it. Thank you very much, sir.

A. K. Behera, Analyst — CMD

Another thing, sir, I will argue that we are also exploring the selling alumina in the domestic market also in the bulk quantity that we have already finalized a pricing mechanism and that will be in parity, import parity basis, whatever money we are getting from export of our alumina in the domestic market will be trying to sell at that price. So there will be no less price in domestic market. So both will be in the same. Domestic pricing is totally dependent on the export, whatever from export realization we are having, in the previous month whatever export tender prices were there, on that basis the domestic pricing is turned.

Speaker 7

Thank you, thank you.

Operator

Next question is from the line of Pallav Agriwal from Antique Stock Broking. Please go ahead.

Pallav Agriwal, Analyst — Antique Stock Broking

Yeah, good morning, sir, and congratulations on the set of results. So, the first question was on, you know, the power and fuel costs, you know, this being a monsoon quarter, you know, traditionally we've had some disruption in coal supply, etc. And we've also seen some increase in the power and fuel costs in this quarter. So, did we purchase some external electricity in this quarter?

A. K. Behera, Analyst — CMD

Yes. You see power and fuel cost has increased substantially around 317 crores increase if you see H1, H1 last year and this year. So the measure was around 256 crores increase was there in fuel oil in refinery. Refinery what happened, there was a restriction from railways for the supply of rigs to the integrated power plants. The railways from the Ministry of Government took out thermal power plants all over the India, very short of coal is there. So all the rates have been devoted to the integrated power plants, IPP. So now whatever our power plant, we were getting the coal, so there were short supply was there. Our average stock of coal which we have to maintain is around 15 days. We went as low as one or two days stock also. Due to which and due to rain, heavy rains also, the moisture coming, We have to inject more fuel in the boilers. So that has increased the cost of fuel because fuel is not required if the coal is there, proper amount of coal is there. So during rainy season, some excessive rains were also there in close stock of the fuel. But now we have taken some measures. We have appointed few consultants and all that who are able to manage the rates and all that. So our coal's position in the refinery has increased, which was hovering somewhere around one day, two days stock. Now it has gone to one to around four days, five days stock. We are trying to increase the stocks. So, some steps and some other steps also we are taking to increase the coal stock. So, that will reduce the power cost in the H2 because that was the major reason and some purchase power was also there. The purchase power you see last year it was 50 crores, this year it was around 123 crores. 73 crores increase in purchase power was also there. That also from CPP because CPP some Some bedrooms in the boilers were there, and some coal issue to do rain, moisture, moist coal, already every year it is there, so that was also there, but that is going to improve in the subsequent half-yearly period in this year. When we show this extra cost of around 317 crores, we will be able to take care in H2.

Pallav Agriwal, Analyst — Antique Stock Broking

Sure, sir. So, this 50 crores and 120 crores is for the quarter, for the half year, sir? You mentioned the increase in external power.

A. K. Behera, Analyst — CMD

See, our half yearly increase with the H2, H1 last year 25-26 to H1 26-27, the power increase is around 317 crores. Both of which the contribution of fuel oil, just because of fuel oil in the refinery, it was 256 crores and purchased power from the grid. We have purchased power, more purchased power from the grid due to some breakdowns in our CPP and low equity of the coal, moist coal, that was 73 crores. These are the two major reasons. For H1.

Pallav Agriwal, Analyst — Antique Stock Broking

Yeah, okay, so this will reduce going. So also, I mean, in the notes to accounts, you mentioned, you know, captive coal, there has been some reclassification in the costing. I think, you know, from the cost of raw materials, now it has gone into the power and fuel. So if we could just, you know, clarify that, you know, so that will not impact our overall ability.

A. K. Behera, Analyst — CMD

That is actually, when you are sourcing coal, either from purchasing or from your own captive mines, as per the economic standard, that should be... The club under the power and fuel cost. Earlier, we used to put that cost in the manufacturing expenditure, other expenditure, which is not logically correct. So, since it is the input for manufacturing of aluminum, so it will be under power and fuel. So, we have classified that. From last year, we are doing the last financial year, 25, 26, in the annual result, we have given that as a clarification in our nose. Now, we are doing in the main seat of the profit and loss account because it is taken from the other manufacturing expenditure to power and fluidity. And the corresponding period expenses are also reclassified accordingly.

Pallav Agriwal, Analyst — Antique Stock Broking

Sure, sir, reclassification doesn't only other expenses would have gone down and power and fuel would have gone down.

A. K. Behera, Analyst — CMD

Exactly, exactly. Because it does not give a real picture to the public because the power and, it is primarily the power and fuel cost. So, it should be shown under power and fuel cost.

Pallav Agriwal, Analyst — Antique Stock Broking

Sure, sir. Also, you know, with the LME prices coming down, our royalty payment on Voxet also would have come down. So, that would have come down. Sir, if you could just give us, you know, I think you mentioned the cash has gone to 12,000 close. But, you know, could you just give us an exact, and, you know, given that, what was the capex that we had done in the first half of this year, and what was the expectation for FY27?

A. K. Behera, Analyst — CMD

Our total on GFX plan for the year is around 1800. In the first half, around 800. 800 we have done. First half, normally it is broke. So, second half, we are expecting because 15 refunds are also a lot of payment. The last thing, major private says that is EGA license. EGA will be signed license. We are expecting EGA. First half, what did you expect? So, almost we will be crossing 1800. So, it will be more than EGA? No, more than 18.

Pallav Agriwal, Analyst — Antique Stock Broking

Sure, sir. So, okay. But anyway, we'll accrue more cash. So, I think this cash balance of 12,000 crores should, after payment of durian, should again start inching up.

A. K. Behera, Analyst — CMD

You are expecting a cash balance at the end of this fiscal 12,000 crores.

Pallav Agriwal, Analyst — Antique Stock Broking

12,000 crores. Okay. Okay, sir. Thank you so much.

Operator

Thank you. The next question is from the line of Amit Muralka from Access Capital. Please go ahead.

Amit Muralka, Analyst — Access Capital Limited

Yeah, hi. Thanks for the opportunity. Just to harp upon cost inflation a bit more. So, I think you mentioned, from what I understood, like all the key raw material costs are further higher, I think particularly, I think. On the COPE side, I think there's a significant inflation is what I understood. So while you do try to kind of bring in the techno parameters down, but assuming the same techno parameters, could you maybe give a guidance on how much cost inflation could be there in the overall production cost?

A. K. Behera, Analyst — CMD

Whatever adverse impact in a techno-barometer area, we have already observed the H1 cost. So that will remain if we are not able to improve anything on that front. The cost will not increase much because that impact we have already taken in our H1. So, we are expecting there will be certainly improvement in the techno area because we have identified the areas where we can take collective action and collective action has already been taken. That will definitely give us some positive impact in the next half. So, there is no question of not getting any benefit from our techno area because the arbor situation will improve definitely. And we are expecting some cost reduction in that area. And if it remains there, the cost will be at the level of extra. We are not going to increase the cost in the next half.

Amit Muralka, Analyst — Access Capital Limited

I was talking about the raw material cost. You mentioned, right, that COSTEC is up and everything else is also up.

A. K. Behera, Analyst — CMD

Oh, yes, because COSTEC should have consumption, we are targeting to reduce by 7 kg at least in the next 6 months. And also CPPs and CPP coke, there will be a reduction plan. So, in three area, we are going to have HFO. CMB sir has explained that HFO because of this core shortage, there is a huge consumption of HFO. That will not be repeated in the next HFO. So, three, four areas we have already identified, we will definitely see, we are seeing some improvement there.

Amit Muralka, Analyst — Access Capital Limited

Got it. And just on captive coal, I think there was a plan to raise it to 4.8 million tons this year. So where are we on that?

A. K. Behera, Analyst — CMD

Okay. Captive coal, last year we have done around 4 million tons. This year we are planning 4.8. And 4.8 million tons, whatever we have planned, that was divided as a monthly target. And as for that, 4.8 million tons, we are going at the 4.8 million tons rate for some of captive coal. Only some clearances, environmental clearances and all that are there at the advanced phase. So we are expecting that next two months we will be getting those clearances. From the state we have got and now we have applied to MIHTC, we will be getting that and we will be ending the year with 4.8.

Speaker 7

Okay, so what was H1 production, if you could share? H1 production of pole was just a minute. You see, H1 production of pole online. Pole, go ahead and say it.

Rajesh Majumdar, Analyst — 361 Capital

It says power, green power, 21.28.

A. K. Behera, Analyst — CMD

H1 production Up to this month, 26-27, in Bhutkavji, that is 21 lakhs, and 2.1 million ton.

Amit Muralka, Analyst — Access Capital Limited

21.5 lakhs, right? Okay. Also, on the pay commission revisions, like, I think mostly you'll be booking it in Q4, is what you're guided earlier, so, and what is the ballpark increase that you would be expecting to happen?

A. K. Behera, Analyst — CMD

Then I tried. If you see that, it will be this fiscal, it will be only for three months, January to March. And if you see our cost to the company, employee cost, it was 25, 26, it was around 36 lakhs. And this H1, if you see the average cost, it is around coming to 32. So there is a reduction. Though there is a reduction of overall reduction of 80 number of employees, but the mixture of employees. Because of higher paying capacity, higher wages earning employees are getting separated and we are inducting the price entry, which is in the lowest scale. So overall, if you see our... Employee cost, and it will be after taking this pay is an impact for three months, and other increase increment, I think it will be lesser than the last year, 25 doses, whatever our salary, employee, and regulation, and these 26, 27, it will be little lesser, because of this retirement of high income. Well, that's not a high salary employee and reduction of just primary care. So, there is a reduction in the employee costs.

Amit Muralka, Analyst — Access Capital Limited

Understood. But, Phil, what is the kind of paid increases that you expect to come through?

A. K. Behera, Analyst — CMD

That pay commission has not yet been finalized. We do not know what will be the, at least 15% increase will be there. Oh, as far as our brand is safe, every vendor division, around 15% increase.

Speaker 7

Understood, yeah. Okay, thank you. That's all for me.

Operator

Thank you. The next question is from the line of Siddi Soni from Hansa Financial Consultancy. Please go ahead.

Siddi Soni, Analyst — Hansa Financial Consultancy

Hello. Thank you for the opportunity. Sir, sometime back you were mentioning about the domestic pricing of aluminium, which is dependent on export pricing. So I just wanted to understand that point a little bit, if you can elaborate.

A. K. Behera, Analyst — CMD

Like export, we are doing four spot tenders every month. So whatever spot tender prices we are getting, suppose in one spot tender we are getting $400 per ton, in second we are getting $370, in third $380, out of these four spot tenders we do an average, suppose for pricing, if you see pricing for the November, we take an average spot tender prices of October, export prices, export spot tender prices, and on that basis, some additions are there, that is import duty and all that. And on that, this is a rheumatic writing system.

Siddi Soni, Analyst — Hansa Financial Consultancy

Okay. Okay. Okay. Got it, sir. Sir, and can you give some guidance on the order book as well? Like what percentage of order book, of our current order book, open one, which is coming from Middle East?

A. K. Behera, Analyst — CMD

Order booking for alumni, you are telling?

Siddi Soni, Analyst — Hansa Financial Consultancy

Yeah.

A. K. Behera, Analyst — CMD

As of now, around six vessels already spot tender orders we are having for this month of November. Six vessels we are trying to dispatch, two vessels already loaded, two more vessels, three vessels already they have done the payments also. So there is a positive sign because October only we were able to dispatch one vessel, a lot of restrictions were there. So there is a sign because we are not everyone, no one is able to tell what is the exact picture there, but since the vessels have started coming and moving, so we are getting a positive sign and we are expecting that this month onwards the supplies will get resumed around 4 vessels per month.

Speaker 7

Okay, okay.

Siddi Soni, Analyst — Hansa Financial Consultancy

I'm driving, I'm driving, I'm expecting.

A. K. Behera, Analyst — CMD

Pricing, we are expecting somewhere around 370, 380, not more than that. Because there is an excess of aluminum in the market due to restrictions in the parameters and all that. Now these parameters have started coming up. It quickly depends on the geopolitical situation. If these parameters are ramped up fast, maybe it will slightly increase to 400 also. But what expectation we are having is around 370, 380, not more than that.

Siddi Soni, Analyst — Hansa Financial Consultancy

Okay, okay. You got it, sir. That's all for my sake.

Speaker 7

Thank you.

Operator

Thank you. The next question is from the line of Rajesh Majumdar from 361 Capital. Please go ahead.

Rajesh Majumdar, Analyst — 361 Capital

Yeah, good morning, sir, and thanks for your opportunity. I also have a few questions on alumina, sir, but mainly on the cost of production. Would you tell us that over the years, how the cost of production has increased in the old mines because of the impact of red mud and how the new Potangi mines can act as in terms of the cost of production going forward, say, when the mines ramp up to reasonable high capacity, how can the cost of production of alumina come down with that? That was the first question.

A. K. Behera, Analyst — CMD

The cost of production of alumina in view of the red one. In view of the red mud, I don't think there's any increase in the cost because red mud is not going to affect. We have already red mud 0.1, red mud 0.2 is already ready for us. So red mud 0.1 is also going to sustain for maybe next one or two years. And we'll put in red mud. Red mud is not an issue. We are going for a red mud filtration unit for which around we are spending around 400 to 500 crores. Some amount of depreciation when that project will be completed. Some amount of depreciation will be added. Interest is not there. So, I think it will be somewhere around 20, 50, 50 or 100 rupees per ton. That will be very less. As far as Potangi Mines and our... Now, if you are taking from Protangi mines, there will be an additional cost of ore coming from Protangi mines, that will increase the cost slightly, that is the transportation cost. Initially, we have to transport the ore from Protangi mines by road. So, in that additional cost will make somewhere around 490-500 rupees per ton. Because if you see our box right cost, recently, which we are getting is around 1300-1400 rupees per ton from our Piper Pally mines. Now, if you are taking from Potangi mines, there will be an additional cost of 400 to 500 rupees per ton, because of road transport, and after 2-3 years, 2 and a half years, once this conveyor comes, then this cost will come down to around 100-150 rupees per ton. So, till that time, some additional cost from Potangi for the only amount which is coming from Potangi. And the advantage, but the advantage is we will be getting the mug ore which will be coming from the potangi since it will be a new mine. There will be a better quality ore and the silica will be less, the reactive silica will So, that will reduce the overall caustic consumption in our system refinement. And the system refinement which is coming again that is a modern plant that is a low pressure digestion and high pressure digestion and all that. So, in that also the costing soda consumption, which is there in our 4 streams, in the old 4 streams, in the 5 streams, the costing soda consumption will be better than the earlier 4 streams. So, what we are envisioning in the new stream from Potangi mines, even if the transportation cost is there, that will be taken care of from the 5 stream refinery.

Rajesh Majumdar, Analyst — 361 Capital

And what is the cost of production right now in alumina? Is it $240, $253?

A. K. Behera, Analyst — CMD

Alumina, it is around $24,000. If you convert in $95, it is around $24,000 for Indian rupees. And $95, $253.

Rajesh Majumdar, Analyst — 361 Capital

So, once all the, you know, conveyor accepts are set up, how much can this cost of production go down eventually when the portali mines are operational with the entire infrastructure?

A. K. Behera, Analyst — CMD

Okay. Patagimais, sir, has already explained. Patagimais, we are getting advance in the mining cost because the party who has taken the NDO, and he will be giving us ore at the rate of 426 rupees. And initial period for 2-3 years, because the long-distance congress will be ready by 2 years, and that in this initial transition period, he will be adding 490 rupees extra for ore transfer. So, initially, the cost will be higher in the pottery mines, the ore taken from the pottery mines, but afterwards, commissioners had a long distance conveyor. The potanumized cost will be equal with our existing first potanumized cost, because we will be getting advantages in the mining cost, because party has got a very competitive figure of foreign potanumized rupees, which presently in our existing mines, it is around 500 plus. So that 150 rupees will be getting benefit there. And the long distance converge, for that we are investing only 1,000-4 rupees. That depreciation impact will be, because it is a funded project, the depreciation impact will be on Nalpo account. So that will be 100 rupees extra. So overall, if you see the Potagri mine's cost, after commissioning of that mine is full-fledged, after the rated capacity is achieved, the cost will be at par with our existing mining costs.

Rajesh Majumdar, Analyst — 361 Capital

Right, so that's useful. And secondly, sir, my question on the alumina as the percentage of aluminum, what are the factors one should look also other than the redemption of production in the Middle East, which is of course positive. But if you look at the bauxite prices, they are not moving up. They are at $70 and if the ocean trade again starts coming down, then there will be no inflationary pressure on the bauxite freight to kind of ramp up the alumina prices. Is that a fair answer? I have a question that aluminum prices will not go back to 15 to 16% of LME aluminum, but rather remain at say 12 to 13%.

A. K. Behera, Analyst — CMD

Now, if it is 13 percent, it's okay. We are expecting, we are projecting alumina price at 12.5 base point. If it is more than 12.5 percent of your LME, that is fine. It will not go to 15 or 16 percent, but it will be certainly at the level of 13 percent or 12.5. And if that remains, there is no issue in your alumina release.

Speaker 7

It will be coming around 370 plus. Thank you. Okay. Thank you.

Rajesh Majumdar, Analyst — 361 Capital

And so my last question is that we have, of course, nearly 4 plus million tons of captive coal now, and our total requirement is, I understand, 7.2 million for the smilter. So are we covered in terms of FSA for the remaining, or are we exposed to e-auction prices at all? Because e-auction market has gone to nearly more than 250 bucks in premium now.

A. K. Behera, Analyst — CMD

There is no issue in that, our FSA is for 6 million tons, and we are not able to take whatever FSA is there, but with FSA, some issue is there, the quality of the coal which we get from the FSA, some of the mines, the quality is not there. Just for the blending purpose, we go for very small amount of e-option. Earlier, we used to have higher e-option, but with this Uthkal coal production increasing going to 4.8 million tons, the e-option component has been very less. For your kind information, if you see your figure, the last year. E-Oction coal normally we take at our refinery, not in our cementer, it is totally vetted by our FSA as well as the wood coal D. And E-Oction coal, if you see the figure last year, 25, 26, we have taken 5,16,000 E-Oction coal. And this year for the H1, we have taken only 1.96 lakhs. So we are reducing E-Oction coal. So the higher cost coal we are reducing and then managing from other linkage. And primary linkage, because refinery is managed by linkage and EOX. So, linkage pool we have increased and we have reduced EOX and pool. And one consultant has admitted who is ensuring us to give react availability which will help us to move evapment pore from our FSA. Because in the first half, the availability of FSA rates were very low, so some kind of increase in the option was there, but in H2, I think this is important.

Rajesh Majumdar, Analyst — 361 Capital

Okay. And so, in our segment results, what is the cost of alumina we pay to the aluminium? Is it the market price or is it the cost of the alumina at $25,000?

A. K. Behera, Analyst — CMD

I could not get it. Please repeat.

Rajesh Majumdar, Analyst — 361 Capital

In the segment results, when we transfer the alumina to the aluminium division 10 equals to alumina, do we transfer it to market price or do we transfer it?

A. K. Behera, Analyst — CMD

As per our accounting policy, we transfer the alumina to our aluminium smelter at cost price. It is not cost price or it is not market price, it is cost price.

Rajesh Majumdar, Analyst — 361 Capital

Okay, thank you.

Operator

Thank you. Anyone who wishes to ask a question may press star and one now. The next question is from the line of Jashindeev Chedda from Nomura. Please go ahead.

Jashindeev Chedda, Analyst — Nomura

Yeah, hi. Thank you for the opportunity. Sir, most of my questions have been answered. A couple of questions from my side will be largely on the bookkeeping front. Can you please, you know, tell us what will be your cost of production for this quarter for alumina?

A. K. Behera, Analyst — CMD

The alumina cost of production will be almost same. There will be a slight increase in caustic soda prices, but I was telling in H1 it was around 47,000 and in Q3 and Q4 maybe somewhere around 49,000, 2,000 increase. That 2,000 increase will add around maybe 500, 600 rupees per 10 increase, but that We will try to offset by improving our specific consumption of caustic soda because the H1 was a purely rainy season, around 4-5 months, 4 months was a totally rain, not able to get the recover of alumina from our red mud pond and all that. So in H2 definitely in dry season the caustic soda consumption will be less. Even HDO and HFO and LDO consumption, which was very high in Q1, in H2, H1, that is going to reduce because our coal stock is improving, coal stock is becoming more better and better and dry coal will be there. So there also the saving will be there. Of course, the LDO and HFO prices are increasing from 84,800 in H1 will go to around 120,000. The specifics will definitely improve, and it is a trend every year in H2. The specifics of better dry season is there. The production volume is more. So, the cost will be somewhere. Similar kind of call, but we have got in the show. Not more than that, at least.

Jashindeev Chedda, Analyst — Nomura

So, just to put it in another way, on X spot, your cost will be largely, you know, flat, barring if this spot is go up, right, sir?

A. K. Behera, Analyst — CMD

This is base, but.

Jashindeev Chedda, Analyst — Nomura

Sir, my second question is largely, you know, on the structure line. So, why will the most of your renewable power will be coming post-FI30? Right. And US Melters, CapEx will also start from FY28 onwards or maybe later in FY29. Over the next couple of years, what will be the major cost drivers which will help the company to reduce their cost structurally? If you can just help us with that, that would be great.

A. K. Behera, Analyst — CMD

How we can reduce our cost in because you are talking about the total cost?

Pinakin, Analyst — HSBC

Yes, sir. So, both are the alumina and aluminium firms. So, the total operating costs, sir.

A. K. Behera, Analyst — CMD

The cost is aluminium as well as aluminium.

Jashindeev Chedda, Analyst — Nomura

Sir, if you can, you know, give, you know, the cost drivers for both, that would be great.

A. K. Behera, Analyst — CMD

In the next four, five years, three, four years, till our new smelter is coming to ground, the cost will be slightly certain is the input price cost. Because the input price cost will be certain if there is a market trend, it will go by three, two percent. What we have projected, it will be increased by two, three percent year-wise. That will be increased. But how we will contain our cost by improving our efficiency. So definitely, when our new refinery will be coming, there is a... With the modern feature, that is a technology, a very good technology, that will give us benefit in our operational efficiency. Though there will be input cost increase, but that will be set up by our... New plant, because our plant, old refineries are very old, and their features are very old, and new refinery, because the collection will be lesser, and the efficiency will be more. So, that advantage we will be getting, though we will be adding some cost on account of depreciation, because interest is not there. So, we are going to add some cost on account of depreciation, and I don't think depreciation will be set up by reduction in techno-equalifics in the new refinery. So, that area, the cost will be remained in the plant. Input cost will be almost absurd. Another impact will be their employee cost. Because the pay revision impact will be there in 27-28 onwards. And there will be average increase of 15%. That employee cost, employee cost is around 10-12%. So 15% increase in employee cost will not add much to our total cost. So that there will be certainly 3-4% cost increase. And as well as, if you see the cost front, there is also revenue front. Your aluminum price will increase and aluminum metal price will also increase in the next 3-4 years. So almost the Narco will be maintaining the same margin level in the next 3-4 years and till our news letter is commissioned. Understood, sir.

Jashindeev Chedda, Analyst — Nomura

Thank you so much, sir. Just one last question. While you have highlighted that, you know, in the second half, with Middle East capacities, the smelters coming back, the demand for alumina will increase, and hence you are forecasting a higher alumina prices. If we take it for, let's say, for FY28, right, where there are concerns that some of the refineries will also be coming up in Indonesia. So how do you see alumina prices over the next couple of years? Let's say for next FY28, if you can give a sense. Do you feel the alumina prices will remain high, the market will be in, you know, will remain in tightness or in deficit? Or do you think once the refineries are running in Indonesia, there will be some pressure on pricing?

A. K. Behera, Analyst — CMD

The boundaries are coming in the Indonesia, but in Indonesia the smelters are also to be commissioned, smelters around 0.5 to I think 0.6 million ton of capacity smelters are going to be commissioned in maybe next year or next to next year. So, part production will start coming and with this Middle East smelters getting stabilized to the full capacity. So, the demand of alumina will be there, but of course there will be, the projection is there, this year itself around 1.6 million ton of excess alumina. And the market, the pressure on the alumina will of course be there because the alumina production, we are also increasing alumina production by 1 million and 10 next year. Vedanta's refinery is also coming. So, of course, the pressure will be there and we are not expecting anywhere more than $350 of alumina prices which we will be getting in the export market.

Rajesh Majumdar, Analyst — 361 Capital

Thank you so much, sir.

Pinakin, Analyst — HSBC

It was really helpful.

Rajesh Majumdar, Analyst — 361 Capital

I'll turn back to you.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Bharat Kumar Zahur for closing comments. Over to you, sir.

Speaker 7

Thank you.

Bharat Kumar Shah, Other

On behalf of NALPU, we thank all our esteemed participants for taking their keen interest on the activities of NALPU and participating in this article today. In fact, this shows your interest and trust on NALCO and its business activity. We look forward for similar kind of cooperation in future as well. Thanks team Kodas for facilitating this English earning call for F127. We are also thankful to Secretaries Group for arranging this call and also arranging it on quarter-on-quarter basis. And we also look forward for your cooperation on a continued basis. Last but not the least, again on behalf of Nalco Collective, we wish all our extreme participants a happy prosperous economy ahead with endless opportunities.

Speaker 7

Thank you. Thank you all. Thank you.

Operator

Thank you. On behalf of National and Immunium Company Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.