INDIAN METALS & FERRO ALLOYS LIMITED (NSE: IMFA) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Saunak Gupta — Chief Financial Officer
Sandeep Narade — Head, Mines Business Unit
M. Venkatesh — Head, Sales and Marketing
Suresh Babu — Head, Ferro Alloys Business Unit
Binoy Agarwalla — Head, Power Business Unit
Bijayananda Mohapatra — Chief Operating Officer
Analysts:
Aryan Rana — Analyst
Aashav Patel — Analyst
Aditya Welekar — Analyst
Unidentified Participant
Manan Vandur — Analyst
Madhur Chaturvedi — Analyst
Rajesh Agarwal — Analyst
Vinit Thakur — Analyst
Aashav Patel — Analyst
Saket Kapoor — Analyst
Joe Shah — Analyst
Abhishek Savant — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Q4 FY ’25 Indian Metals and Ferro Alloys Limited Earnings Conference Call, by Welta’s Reputation. As a reminder, all participant lines 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 the conference call, please signal an operator by pressing star then zero on it astone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Arian Rana from Seputation. Thank you, and over to you, sir.
Aryan Rana — Analyst
Thank you. Thank you, Mustang. Good afternoon, everyone. On behalf of Indian Metals and Limited, I extend a warm welcome to all participants joining us for today’s earnings call. We appreciate your continued interest and support. This session aims to provide deeper insights into our performance for Q4 and the full-fiscal year ended, 31 March 2025, as well as the direction for the road ahead.
Following the opening remarks by our management, we will open the floor for Q&A session and kindly keep your questions concise and relevant to allow further participation. Imbra, India’s leading fully-integrated producer of oil has demonstrated resilience in Q4 FY ’25 despite ongoing market challenges.
The performance the company’s focus on operational excellence, disciplined execution and long-term value-creation. Our financial results and investor presentation are available on our website and have been filed with the stock exchanges for your reference. Before we begin, I would like to remind you that some of the statements made in today’s discussion may be forward-looking in nature.
These are based on the company’s current expectations and are subject to various risks and uncertainties that could cause actual outcomes to differ materially. Thank you. Joining us today on the today’s call are — and I welcome Mr Vijayananda, Whole Director and Chief Operating Officer; Mr Gupta, Chief Financial Officer; Mr Binoy Agarwala, Head Power Business Unit; Mr Sandeep, Head Business — Mines Business Unit; Mr Suresh, Head of Business Unit; Mr M., Head, Sales and Marketing, Feroloys Business Unit.
With that, I would now like to hand over the call to Mr Sonit Gupta, our Financial Officer. Over to you, sir. Thank you.
Saunak Gupta — Chief Financial Officer
Thank you, Arian, and good afternoon, everyone. Thank you everyone for joining today’s earning call on Q4 FY ’25 financial results. In my first earning call briefing to you all as CFO of Infa, let me take you through the financial highlights for the 4th-quarter and full-year ended, 31 March 2025.
At the macroeconomic level, Q4 FY ’25 experienced uncertainty on-trade policy-related developments along with geopolitical situation impacting several segments of commodity markets. Global ferrochrome market travels through a phase of subdued global demand and weak pricing trend. Despite this, demonstrated resilience and merceled its resources on cost optimization, operational efficiency improvement and leverage its fully-integrated model.
The standalone and consolidated financial results have been already uploaded in our website for your play results. As you would have seen our results, despite headwinds, our focus on efficiencies and disciplined capital allocation allowed us to deliver positive free-cash flow or retain a healthy financial position.
Some of the key business and strategic highlights of FY ’25 are crossed 7 lakh metric ton for the first time for. Our work has commenced on that 96,000 metric ton per annum greenfield ferrochrome expansion project in. The orders and LOIs have been placed for civil and structural works, major furnace equipments and power transformers.
During the year, during the year, has signed a power purchase agreement and with JSW Green Energy Group to acquire hybrid renewable power of 70 megawatt contracted demand. Further, we have entered into another binding term sheet with Ampen Energy utility, One Private Limited to acquire hybrid renewable energy of 40 megawatt contracted demand.
This will enhance energy security and will substantially reduce our carbon footprint. IMFA has also received necessary statutory clearances for the 120 KLD project and has also placed all the major equipment orders. Boundary world for the project has been also completed. Further, during the year and especially in-quarter four, the Regional Director of Eastern region has approved the scheme of amalgamation or of the merger of Limited within with an appointed date of 28 March 2025, financial entries for merger as per Indus have been passed in the financial books of in-quarter four FY ’25.
While the macroeconomic environment remains uncertain, early signs of recovery in pricing, particularly in April onwards gives us confidence in a more stable FY ’26. Globally, stainless steel production has grown by 7% in calendar year 2024 and capacity rationalization in-market like South Africa is expected to rebalance the supply-demand dynamics.
In FY ’26, we remain focused on cost optimization, operational efficiency and executing on our growth initiatives and to deliver the value to our stakeholders. With that, I will now open the floor to any questions that you all may have. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer section. Anyone who wishes to ask question may press star in one are they touched on telephone. If you wish to remove yourself from question queue, you may press R RN2. All participants are requested to use handsets while asking a question.
Ladies and gentlemen, we’ll wait for a moment while the question queue assembles the first question is from the line of Ashwa from Malecule Ventures. Please go-ahead.
Aashav Patel
Thank you for the opportunity. Very good afternoon to the entire team. So sir, my first question is what is our EBITDA cost per metric ton for FY ’20 — sorry, for Q4 FY ’25?
Saunak Gupta
Yeah. So the EBITDA cost is INR76,980 for quarter-four FY ’25.
Aashav Patel
Okay. And sir, what is our met coke cost for Q4, the same quarter?
Saunak Gupta
And so for the ferrochrome cost per metric ton in it. Yeah, I am saying that per metric ton cost of ferrochrome, the mate cook component in that is about INR150.
Aashav Patel
Okay. So this is similar to that level. So why I’m asking this is because met coke prices have been continuously falling very much. So I just wanted to understand and gauge when do we accrue the benefit of falling met coke prices? So if INR15,000 per metric ton is the rate for Q4, how do you expect — what was the opening inventory for this financial year of met coke for metric.
Saunak Gupta
So I’ll just put it to Suresh will you be able to give you inputs on that Suresh, I think Sudesh should have dropped out. So if you see for this last year, our average met coke cost was INR18,881. From there, this year we have come down to INR15,543, but we usually keep the stock of about three months because the major portion is imported.
So the slowdown will take some more time, but we have already increased and seen a drop-in the current year compared to last year’s average.
Aashav Patel
Okay. So we should see further benefit in Q1 and Q4 — Q2 of falling network value.
Saunak Gupta
Yeah. Yeah. Drop, we will definitely get some.
Aashav Patel
And sir, our ore raising is now highest-ever. We are Are close to INR7 lakh range. So I just want to understand how the inventory of chrome ore has moved over here over last, say, two years. For example, earlier we used to keep close to 2 lakh ton of inventory versus what does it look like right now?
Saunak Gupta
Yes. So on that part, I will just request Sandeep, our mine’s viewhead to put insight on that.
Aashav Patel
Sure.
Sandeep Narade
So right now, we are having about more than four months of inventory of overhead plant side, both the plant side and also at mine about 2.5 months inventory is with us ready to dispatch.
Aashav Patel
Okay. So earlier what was this figure say a year back.
Sandeep Narade
It was about in the — in the plants about Three-Month stop was there at mines about one month stop was.
Aashav Patel
Okay. So we have basically increased our inventory loan books by close to 50%, right?
Sandeep Narade
Yeah.
Aashav Patel
Okay. And sir, equipment operating — the order has been completed for Kalinganagar expansion equipment ordering.
Saunak Gupta
Yes, so major equipment ordering has been done for Kalinganagar project and the point is that we have the original plan to commission it mid of next year, the first furnace somewhere in June ’26, so that is on-track. And though the — what the earlier question you were having the chrome mode, there is a 50% increase from last year.
It’s not 50%, that is around, 20% 25% increase from last year-by basically we are building it up for the project because that will — the moment it gets commissioned, we will be requiring chromore. As you know, we cannot immediately jack-up our production at the time of commissioning, we have to build it up. So gradually we are building it up for the promo production.
Aashav Patel
Got it, sir. And sir, regarding the recent Maraft shutdown, what we have been hearing, I guess close to 8 lakh metric ton has been brought down by in South Africa. So can you please throw some more light on the mine — sorry, furnace closure in South Africa, how that has moved and what other players like was also earlier be reviewing their business situation, but not sure whether they have closed down also or not. So can you please.
Saunak Gupta
Turn to Venkatesh, our sales and marketing head to add his insights on that.
M. Venkatesh
Right. So Mirafe announcement, you know, Mirafe and Glencore are partners, so their partners. So announcement was due to the market conditions, so the reduction in-production. But Glencore also has announced they will start looking at more chrome units. So what they mean by that is, you know, because there are challenges in South Africa, electricity costs have gone up and the challenges with regards to the ferrochrome market per se.
So they have reduced the production on a temporary basis. And when they say chrome units, I believe they would be looking to export maybe more of chrome more out of some.
Aashav Patel
Okay. Okay. But okay, so let me put it other way around. Given that China completely is dependent on the imported chrome ore, right now, as we speak, still we are at an advantage of, say, close to 20,000 metric ton per ton in terms of cost of production compared to China because of our captive ore.
M. Venkatesh
So, I don’t have the exact cost of China. Yes, we have an advantage of having a captive mine, China has totally to depend on South African ore, primarily South African ore. So definitely, the cost of production as far as chrome ore goes would be higher. But as far as other raw-material goes, they may have a slight advantage, more specifically to do with coke.
Aashav Patel
Okay, okay. And sir, recently there was.
Operator
I’m sorry to interrupt. I just request you to follow in the queue, please.
Aashav Patel
Sure. Yeah. Thank you.
Operator
The next question is from the line of Aditya from Axis Securities. Please go-ahead.
Aditya Welekar
Yeah, thank you for the opportunity, sir. Sir, my question is on the forward-looking guidance means what kind of over chroferochrome production we trajectory means what kind of trajectory we expect for FY ’26 and then once the 1 lakh ton Kaling another smelter starts, so what will be the ramp-up time for that? So for fiscal ’27, how much we can expect from that new facility?
Saunak Gupta
So I’ll just pass this out. Suresh, you are there?
Suresh Babu
Yeah, yeah, I’m added yes. See in the first year we are expected to start the production from the month of mid of the, that is around July we are going to produce. June we are going to commission. So it will ramp-up will happen. So but in the financial year, it will be around 50,000 to 60,000 production will be there.
Aditya Welekar
Okay, understood. And as you said, there is 12 months of inventory already of promore now on the line there. So for ’26, fiscal ’26, the new over raising will not be — will not be materially higher, right, means given the inventory situation we have, is that understanding right?
Suresh Babu
Yes, yes. Connected with the new facilities, there will not be a problem.
Aditya Welekar
Understood. And any CapEx guidance for FY ’26 and ’27?
Saunak Gupta
So on the capex part, as we have mentioned earlier, that almost INR840 crores of our investment is in project, which is scheduled, the first furnace is scheduled to get completed in June ’26 and the second one in September ’26. Besides that, we are also under this project completion of 120 KLD ethanol project, which is about INR150 crores, which is on course.
And on the underground mines, which is overall in a five years, 10 year, it’s about INR1,000 crores we will be spending, but a part of it will also come in FY ’26. So overall, we expect in FY ’26 around INR800 odd crores, INR800 crores to INR900 crores will be the outlay for all these three projects.
Aditya Welekar
Understood. I have few more questions. I’ll join back the queue.
Operator
Thank you. Yeah. Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference. Please limit your question to two questions per participant. Do you have follow-up question, we request you to rejoin the queue. Thank you. The next question is from the line of Supriya Shah from Kotak Associate. Please go-ahead.
Unidentified Participant
My good afternoon. So there is a decrease in EBITDA margin — EBITDA of by 44% then revenue has only decreased by 12% and cost has also decreased by INR1,000 per ton. So reason for the decrease in EBITDA?
Saunak Gupta
No, this EBITDA 44%, which period you are comparing?
Unidentified Participant
From Q3, INR20.
Saunak Gupta
So Q3 our EBITDA cost was about INR77,800 and now it is about INR76980, almost is just about INR800 odd rupees per metric ton reduction. So not significant. But for that, primarily the reduction is on the chromore resin cost to some extent and to some extent on the your coke cost.
Unidentified Participant
And what — by the Q4 specifics in terms of coal coke and power?
Saunak Gupta
So our power cost is variable-cost, but I will and on the power, I will ask Vinay to just add his inputs on this.
Binoy Agarwalla
Yes, Sonak, you are correct. In Q4 FY ’25, the variable-cost of power is 4.09 and compared to Q4 FY ’24, which is 28% less than the — in this quarter, Q4 FY ’24. It’s mainly due to coal only. Coal prices come down due to transportation of coal by rail.
Unidentified Participant
And for over and coke?
Saunak Gupta
So on the promo part Sanjeep, can you put some insights on that or Or your views on this?
Sandeep Narade
Chrome cost in Q4 was a bit lower due to higher production in Q4. Gotten more production than our budget.
Saunak Gupta
Yeah. So promore from Q3, there was a reduction in this because of the higher production and cost optimization initiatives that we have taken. So for that, overall the cost has gone down and it was per ton of terrochrome it was eight basis it was 77,400 rupees.
Unidentified Participant
And what was the specific or in terms of?
Suresh Babu
Specific is specific core you are talking about specific core is around 2.35 levels. It varies based upon the grid what we’re making. It is 2.32.
Unidentified Participant
And what was the coke per ton price in coke specific coke per ton of.
Suresh Babu
The coke price in this quarter is around 31,000. Specifically you can consider the 560.
Unidentified Participant
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Manan from Wallford PMS. Please go-ahead.
Manan Vandur
Hello. Thank you for the opportunity. So there was a little bit of confusion. So I would just like to reclarify the questions asked by the previous participant. So the cost of per tonne, I want to know, not per ton of ferrochrome, but one ton of is how much cost?
Saunak Gupta
Four was 7,500, primarily what Sandeep has given the because of that it is 7,500 okay. And we normally consume 2.5 tons, right? Yeah. 2.35 we have consumed in this quarter.
Manan Vandur
Okay, it’s 2.35.
Suresh Babu
But is that also generally 2.35 or more than that?
Saunak Gupta
No, it varies depend upon the grade. So you can correct from 2.35 to 2.5.
Manan Vandur
Okay, okay, understood. And sir, the next question would be, on the average ferrochrome price or like we have long-term contracts and we have spot contracts also right. So for the long-term contracts, could you please give us what is your ferrochrome price for those long-term contracts, please?
M. Venkatesh
Yeah, we don’t very specifically have anything regarding long-term contracts because most of the contracts are long-term. But what I can say is the average price realization for prime would be around INR93,500.
Manan Vandur
Okay, because last quarter when I had asked it was around INR89,000 to 90,000 per ton, which was — which is like almost 60% — 60% of your total sales is long-term contracts. Hence I just ask. And also this changes every month.
Saunak Gupta
I wanted to your — I just wanted to add that what you were saying 89,000 to 90,000, it is the net realization that is the total whatever is the sale of home we sell, which this quarter is 87,000, 87021. So there is a drop-in the average realization.
Manan Vandur
Yes, it’s correct. I understand. But the long-term prices which you have with POSCO and other people you have with, those prices would be 93,000 you said.
Saunak Gupta
So see these are basically a bit of strategic pricing, but so what Venkatesh has said that INR93,000 is the overall long-term contract average, that’s the prime cost we have. And on the totality basis, our average comes to this quarter it has come to INR87,21 is the average realization.
Manan Vandur
Got it. Okay. Okay, understood. Just once again, sir. And sir, current ferrochrome prices because the average would be what because anyway the quarter has almost ended. So what would be that?
Saunak Gupta
See on that net realization value that I said and with the average forex, whatever is the dollar-cost, it is about 76. But as we — as I mentioned, there we are seeing from April onwards some upstick in the price. But it was for the quarter, February, March was very low, almost China was hovering around $0.75. So our average is around $0.76 on a net basis.
Manan Vandur
Correct, correct. I understood, sir. I just want to know for this — this quarter, Q1 because two months have ended, April will be okay and even May has gone. So what would be the price as of this quarter is one — I want to know.
Saunak Gupta
So normally for forward-looking pricing, usually, as you know that there was a certain restriction on the guidelines. So we have to stick to that. But only thing I can say that we are seeing certain upsides in the overall market on the pricing side. And, what would be that percentage of upside around.
M. Venkatesh
What we are seeing the prices currently is around INR1 lakh per ton.
Saunak Gupta
Okay. On the prime basis.
M. Venkatesh
Yeah. On the total price, this is I’m not talking of in terms of the realization. I mean the total price what we are seeing today is around INR1 lakh rupees per ton.
Manan Vandur
Okay. Thank you, sir.
Operator
Thank you. The next question is from the line of Chani from Tata. Please go-ahead.
Unidentified Participant
Hi, everyone. The the status of the Sakandab Underground plant.
Saunak Gupta
Yeah, so Sandeep, you can give you insight on that.
Sandeep Narade
Can you please repeat one?
Saunak Gupta
So she is asking for the Sukinda underground mines update.
Sandeep Narade
Yeah. So for shipping the mines expansion plan, we have already given the major contracts and all the works are in-progress for the decline — for the ventilation shaft and for the. So that is in-line as per our plan.
Unidentified Participant
Okay. My second question is what is the ratio of.
Saunak Gupta
Pardon, no, I we could not hear you. What is the ratio?
Unidentified Participant
Sir, I just want to ask what what type of to be used for production of?
Suresh Babu
See, it is all based upon the market requirements. So based on the market requirement, the grades changes.
Unidentified Participant
So is this indigenous or do we export?
Suresh Babu
No, no, it is indigenous from our minds only.
Unidentified Participant
Okay. Can I have a little bit of knowledge on what was the shipping ratio for quarter-four?
Saunak Gupta
Can we hear you once more, can you please.
Unidentified Participant
What was the stripping ratio in-quarter four in terms of mining?
Saunak Gupta
Sandeep, you can add-on this.
Sandeep Narade
So for open stripping ratio is about 1ish to 3.5.
Unidentified Participant
But the CIBSE ratio, which was last — last called in the communication.
Sandeep Narade
No, no, you are asking the slippy ratio that I have told. Now you’re talking about ratio, that is different.
Unidentified Participant
That is the 3.2 right currently.
Sandeep Narade
As can tell about that.
Suresh Babu
CRFE ratio also varies. It is moved from 2.5 to 3.5 times.
Unidentified Participant
And so this all totally added up to this also the periphone rate went above 60 or it was that the realization was low in the marketplace was below.
Suresh Babu
No, no, we make 60 only. Our grade will be 60 plus. So based on 60, the blending we will do accordingly.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. The next question is from the line of from MAIQ Capital. Please go-ahead.
Madhur Chaturvedi
Hi, sir. Good evening, good afternoon. Thank you for taking my time and congratulations on putting up our formidable results even. Congratulations on the ceremony for the installation of the plant also yesterday. So just wanted to get some more — just to clarify what is the capex number because in previous calls it was INR650 crores for the INR1 lakh expansion now in this press release, it was INR900 crores. So just wanted To get a clarity on — if we can just do in terms of ferrochrome capacity, what would be the capex for the mining capacity, what would be the capex? And just sort of the timeline of when that would be incurred. If we could just get that more granularly, that would be very helpful. Thank you.
Saunak Gupta
Yes. So as we had mentioned last quarter also and this quarter, first of all, thank you for your good words on the performance of the company. And yes, yesterday, we had the opening ceremony of our project. So on the CapEx side, on the project, the total amount that I said of — it was at INR840 and if you add-up the capitalizable expenses that will be spent at the time of trial run, it will go up to somewhere around INR900 crores.
So that is the overall capex, which obviously will be spent out by next year, September, October by the time when we go for the commissioning of both the furnaces. So June will be the first one and September ’26 will be the second one. So that is on your first question on the.
Madhur Chaturvedi
And this includes working capital or this is probably capex?
Saunak Gupta
This is purely capex. Working capital will be separate outside the capex outlay. And on the mines outlay, we have a plan approximately INR1,000 crores for increasing the capacity, but that will be spent out in about five to six years from now. So it will be spent majorly it will be spent out in year-wise in the initial three years, the major amount will come and then it will tap it down by FY 31 end and by the time we reach the capacity of 1.2 million tonnes of racing.
Madhur Chaturvedi
Got it. Got it. Got it. Sir and just in terms of the furnaces, you mention it. So what is our technology partner, what technology are we going with, are we going with premis, are we going with another technology like or what is — what is the technology we are targeting and how would that efficiency of power and chrome or be in the new plant versus the old plant?
Will we still expect the higher-power to be around 4,000 units per ton and the conversion to be around 2.3 times? Or are we going with a newer technology where we can expect those number to be more efficient.
Saunak Gupta
So I’ll just to give more behind me.
Suresh Babu
Yeah, this is a closed furnace. Both furnace will be closed furnace. So you know that smelting is in energy-intensive and the technology, yeah, so the off gases we are using for the power plant. So the specific power will be of the same range because of our material what we are using now?
Madhur Chaturvedi
Got it. Got it, got it. Got it. Okay, sir. Got it. And sir, just one last question from my end. This is more about the mining. We are — so with the mining, are we managing to extract more than our 6 lakh metric ton capacity. Is that how we’re able to sort of increase our chrome order inventory in anticipation of the power coming online just from an operational point-of-view.
Just trying to understand that if we given the chrome conversion, most of our mining capacity goes into our production. Just what you think will be the maximum inventory we’ll be able to store in anticipation of the commissioning Q2 next year?
Sandeep Narade
Thanks inventory again. Okay. So inventory will be just like this, what is right now we are having inventory. You’re talking for the Q4 of this year.
Madhur Chaturvedi
Sir, just that we mentioned that we are sort of filing inventory in anticipation of the commissioning of the new production line. Just how much will be able to do that given that most of our foam does go into our foam production. So how much we’ll be able to extract as a sort of buffer inventory so that we can start production at Kalingangar once that line is ready?
Sandeep Narade
So right now, just I said before, we are having inventory of more than four months at our both plant locations and about 2.5 months of mines. So that
Madhur Chaturvedi
Are comfortable with them going ahead into next year or we can ramp that up.
Sandeep Narade
Yes, obviously, obviously, it will be quite comfortable right now this and we are increasing our production. So just like in the last quarter, we have done 7 lakh 2,000. So this lakh we have the plan of 8.25. So will we keep on increasing the overproduction from the mines?
Madhur Chaturvedi
Got it, got it. Products are amazing, sir. I’ll rejoin the queue and thank you for your time and congratulations. Thank you.
Operator
Thank you. Ladies and gentlemen, we request you to please limit your question to two-question per participant. If you have follow-up question, we request you to rejoin the queue. The next question is from the line of Ranav Jain from Capital Finance. Please go-ahead.
Unidentified Participant
Hi, sir. Am I audible?
Saunak Gupta
Yeah. Yeah, Mr Jain, you are audible.
Unidentified Participant
Hi, sir. Congratulations on the opening ceremony for the new plant. I just had a few questions. I just want to understand the power requirement for the new plants and the details surrounding it. How much are we going to get from where are we going to get? Could you dwell on it a little more?
Saunak Gupta
So I will request our Chief Operating Officer, Mr, to hack on that.
Bijayananda Mohapatra
So we’ll go for this Paranganagar project for the help of renewable energy hybrid energy that we have tied with the JSW 70 megawatt and with with 40 megawatt. So this will help through the new facility to — and both are going to be commissioned in June ’26. So it is.
Unidentified Participant
Imagine our — sorry, compared? I was saying that 70 megawatt and 40 megawatt, are these the total capacity or is this what we’ll be requiring?
Bijayananda Mohapatra
No, no, no. Our requirement for Kaling, it is approximately 60 megawatt, okay, but it is a hybrid it will not give every time that 70 megawatt. So the power will be utilized in the — our existing operation area through October and February, so that we will also get to get that obligation, renewable energy obligation. So that will help and it will also help our CVAM sector.
Unidentified Participant
Got it. Got it, sir. And your next — so as you can see prices, they bottomed-out in Jan and now they are recovering as said by the management as well. So when can we expect the full benefit of these prices in our financials? And also, can you help me understand the lag in price realization.
Saunak Gupta
So on the — on this price relation part, I would say the lag period is about 1.5 to 2 months for us to get the benefit out of it. But on the future outlook, I will just request to give an overall viewpoint on the market price.
M. Venkatesh
Thank you. Yeah. Thank you. So the continue to remain. There has been an improvement in prices, but continue to remain. The challenges like all of us know in terms of tariffs and ongoing conflicts. But there are small signs of the market improving. When we talk of China, they have taken — they have introduced small stimulus measures.
They have reduced the reserve requirement ratio. The banks have reduced the reserve requirement ratio by 50 basis-points. So they have let out our banks can lend up to-1 trillion RMB mode. So that’s like a small stimulus measure there. They’ve also reduced the lending rates by-10 basis-points.
So these all will help in the domestic demand or to shore up that domestic demand. What we have seen with regards to tariffs also President Trump has kind of ton down a bit so now you know China and US have been talking and there has been a tariff reduction and the talks are continuing.
We are also seeing now a direct conversation between Russia and Ukraine. So you know, after the war, there is a lot of rebuild which has to happen. So going ahead, these are small signs of positivity? And if any of that clicks, then I’m sure the market is going to rebound.
Unidentified Participant
Got it, sir. Just a last question on the technical side. So how much coal do we require per ton of ferrochrome and at what cost do we acquire it the car.
Saunak Gupta
Will you be saying that full part? [Foreign Speech] Met coke.
Suresh Babu
Yeah, yeah. So for making a ferrochrome, it is around 560 KG copies required, okay, and the cost is around 31,000.
Unidentified Participant
Okay, sir. Okay. Thanks a lot and all the best.
Operator
Thank you. The next question is from the line of Rajesh Agarwal from . Please go-ahead.
Rajesh Agarwal
Hello. Sir, my question is, is there any further possibility of cost improving overall production cost?
Saunak Gupta
So we are — as I mentioned in my initial note that we are focused on improving our operational efficiencies as well as to get-out more cost benefits in future. So that’s a continuous process. But it is again to a some extent also dependent upon how the input cost market moves around. So for us, the key one would be the met coke as well as coal and the power cost.
So there is a dependency on the market. But operational efficiencies, it’s a continuous process. We keep on having internal projects to maximize on the cost of optimizing.
Rajesh Agarwal
What is the possibility, INR1,000 per tonne, INR200 per tonne over two, three, three years.
Saunak Gupta
No, it is very difficult to predict that out currently because it’s a continuous process. But as I said, if you see that the quarter-four, we are at 76980 of EBITDA cost vis-a-vis 82836 of last year. So it’s a mixture of both drop-in the input cost market price as well as your cost efficiencies initiatives that we have taken.
Rajesh Agarwal
So my second question is, stainless steel market is very good in India and simultaneously, is saying after the tariff China has become little costier and India the export also will increase. So why if the chrome is the — is the major raw-material for stainles steel, why the realization in the price has dropped and why there’s not possibility of improvement if this general industry grows up by 10%.
Saunak Gupta
So you will take the call then I will just add-on to that.
M. Venkatesh
Okay. Stainless steel market is growing in India. There are two-parts, I’ll answer it. While the market is growing, there is a weakness also in — in the demand of Indian stainless steel. Yes, Jindal is increasing, but there are other producers who are really struggling. And you know when you — and that has to move or mostly move-in line of what happens internationally.
It’s not that India can do too well and others don’t do well. It’s almost on similar lines. So stainless steel market in India, yes, the growth is happening, but demand continues to be weak.
Rajesh Agarwal
So if overall the market improves including India and export. There is a possibility of further improvement in our realization of homes. I’m talking about structurally. I’m not talking about quarter-to-quarter. I’m talking about structurally.
M. Venkatesh
Yeah, yeah. So we are looking at two things here. Number-one, when we look at the prices, they are almost — obviously, they can’t be same in all the markets, there would be a different, but they are at similar levels in different markets. The second thing is going ahead, what we see if you are talking about structural, but going ahead, what we see, we would see a big jump happening in stainless steel production in India. So going ahead, you know, for us also the domestic market will become a focus.
Rajesh Agarwal
Okay. So realization is better in domestic or export?
M. Venkatesh
Right now, both the markets are similar. Like I said, INR1 lakh rupees a ton, it’s similar in both the markets. Both the market.
Rajesh Agarwal
Okay. Then you say okay. Will we enter into a long-term contract? No. Hello? Last question, ma’am, last question. I just last question. So sir, if there is a — if we get a better rated spot prices, do we will still sale-in long-term contract?
M. Venkatesh
See long-term contract has the own benefits. When is when the word long-term means you don’t look at one transaction or a month. We look at our horizon. So, and your — and your mutual is assured to be sold. In a spot, you never know what happens.
Rajesh Agarwal
Okay. Thank you. Okay. Thank you, sir.
Saunak Gupta
Thank you.
Operator
Thank you. The next question is from the line of Vineet Thakur from Plus 91. Please go-ahead.
Vinit Thakur
Hi, sir. Good afternoon, sir. Congratulations on the new plant opening — plants both. I just had a question with the new — the national steel policy of 300 million tonne of FY 2030. What would be the ferrochrome demand going ahead? Would it be increasing or will it be neutral to it.
Saunak Gupta
Suresh, if you can.
Suresh Babu
Yeah.
M. Venkatesh
So if I can get your question right, that was pertaining to steel, which is carbon steel, not stainless steel. I’m a home goes into making of stainless steel. So the policy, what you said was of 300 million tonnes is of crude steel — carbon steel. Stainless steel is also going to grow. Like I said, I was speaking a little bit earlier, stainless steel is going to grow and we are there at the right time with our expansions happening. So obviously, we would be catering more to the domestic market like I said earlier. And sir, could you give a guidance on what would be the production numbers for next quarter next year? So even we do not give more than two quarters whatever is the guidance. But so anyway on the H1, you can give you some guidance on what we expect on the production line. Production is similar that to what we have — for the next half year, it will be around 1,30,000, two quarters.
Vinit Thakur
Okay, sir. Thank you so much.
Operator
Yeah. Thank you. The next question is from the line of Ashwa Pateil from Molecule Ventures. Please go-ahead.
Aashav Patel
Hi, sir. Thank you for the opportunity. So my question is, I have been following the company for past many years. Earlier, we were guiding for a furnace capex of only INR500 crores, but now we are guiding for INR900 crores. So that is effectively 80% higher furnace CapEx. So what has changed.
Saunak Gupta
So there are two furnaces in our Kale Nangar project. So whatever we were seeing INR900 crores is of the two furnaces overall. But yes, with time, the cost escalations will happen and there will be a situation where we have to manage based on whatever is the cost of it, but it is a two furnace, not a single furnace that.
Aashav Patel
Furnace capacity we are considering, two furnace.
Saunak Gupta
So it is what we said is that 96,000 metric ton annual capacity, it will add-up.
Aashav Patel
So capacity is earlier also we were expecting only one lakh capacity. So 80% cross cost inflation, how can it happen in one year?
Saunak Gupta
No, actually as far as what we have mentioned is that the cost was — last year also it was somewhere around INR700 plus what we have estimated. Now the cost has — we are also putting as a — trying to put in the best-in-class in all the equipments over there. So chipping that into the mind, including whatever is the other capitalizable cost, it is INR900 crores. In the base level, it is around INR840 crores.
Aashav Patel
Okay. I’m still not satisfied with the answer, but moving on. The second question is, so recently, there has been an ADD investigation on the, the specific grid which we rely on in terms of imports for fulfilling our requirement. So what is your view on that anti-dumping duty investigation? And how does it impact us?
Saunak Gupta
Suresh, you can add-on that?
Suresh Babu
Yeah, yeah. See, the for anti-dumping, what the ferroil is using that is excluded. So we — we are actually requiring the lows, ultra of 0.030, okay. So whatever the appeal went to the here, this ultra-low fast is excluded from the anti-dumping norms. Okay. So we don’t — we don’t see ourselves being impacted from the ADD even if it is imposed.
Aashav Patel
Yeah. Got it. Okay. That’s all from. Thank you.
Operator
The next question is from the line of Saket Kapoor from Kapoor; Company. Please go-ahead.
Saket Kapoor
Yeah, and to the team. Thank you for the opportunity. Sir, firstly, if I could just sum it up, it was there the lower realization for ferrochrome per ton to INR84,000 that led to — that led to this half of our profit on a Q-on-Q basis. And now the prices trend are again moving above INR1 lakh per ton, this is what the questions of what the price action and the — and the real reason For the lowering of profit Q-on-Q basis. If you eliminate the part?
Saunak Gupta
Yeah. So Sake, thank you for your good words on the business performance. On the realization part, yes, the net realization is about INR87,000 in-quarter four. So there is a reduction in that compared to the previous years. But what INR1 lakh rupees per ton which was mentioned by earlier was on the prime basis.
So 87,000 is our total average cost that we give on-net realization basis. So on that, we are seeing improvements, but INR1 lakh versus 87 is not comparable. It will be much lower than that. So there will be somewhere — if you go by the comparable level, it will be somewhere around INR92,000 to 93,000.
Saket Kapoor
Okay. And sir, what was the number for the December quarter, the average realization per ton?
Saunak Gupta
Just and just general. So for December quarter, it was 96,943 net realization value. And quarter-four last year was INR1,171.
Saket Kapoor
No, the 96940 was the average at per tonne for December cost.
Saunak Gupta
Net realization.
Saket Kapoor
This has gone down to INR87,000 for March quarter.
Saunak Gupta
Yes, yes, yes. And that’s why the margins have gone down. But to a major extent, we through operating efficiency and cost optimization, we have actually able to manage or get a better profitability.
Saket Kapoor
And other than that, we are — we will be spending around INR800 crores for this financial year, that is the one FY ’25. This is what the top-line guidance is.
Saunak Gupta
Yes, for the three projects, approximately our spending would be in the range of INR800 crores for this financial year’s approximately.
Saket Kapoor
Okay. And how much have we spent for the first 45 days? Have we drawn or we can be H2. So the money will be drawn.
Saunak Gupta
Be — so the capex we are managing through our own internal accruals, so it has started approximately we would have spent approximately INR100 odd crores. But a major spend will come in the H2 of this current financial year.
Saket Kapoor
And what is our closing cash balance as on 31st March?
Saunak Gupta
So you are talking of the total.
Saket Kapoor
Net cash, no, no, you give me the net cash number after the short-term borrowing?
Saunak Gupta
So if you see our overall cash position was about INR906 crores. This is excluding any security deposit that we have get, so INR906 crores we are having and our working capital borrowings were INR372 crores. So it is about INR535 crore INR540 crores approximately the net benefit — net cash-flow.
Saket Kapoor
Okay. And these are all invested into the same deposit and the short-term. Yeah, I’ll join the, ma’am. Only work very well. Yes, yes. Thank you so much. Thank you. Yeah, yeah. I’ll join the queue. Thank you and all the best, sir.
Saunak Gupta
Thank you.
Operator
Thank you. Thank you. Thank you. The next question is from the line of Shah from. Please go-ahead.
Joe Shah
Yes, first of all, congratulations to all of you for the second renewable energy agreement also of 400 megawatts, plus was 20 megawatts and now secondly plus 40 megawatt, 20 plus 40, 110 megawatt renewable energy. Now first question is about this cost, which somebody said it is INR7,500 rupee per tonne of. We did increase the royalty in Texas or without in Texas?
Saunak Gupta
700 miles, so basically without the royalty without royalty.
Joe Shah
Okay, okay. Okay. Now this after this project, what is our smelting plan, expansion plan because after in five years, we are looking for the portion of about 5 million towers, 5 lakh tons, right? So what is the next expansion?
Saunak Gupta
Yeah. So in Phase-1, as we have mentioned earlier, we are adding up approximately 1 lakh metric ton. And once that is commissioned out next year-by September ’26, we will be also having a Phase-2 plan of expansion. So there is already — we are working on that. So currently, it is Phase-1, we are having 1 lakh metric ton, but there is — we are open to extension of the capacity.
Joe Shah
Okay. Okay, now looking at this renewed — renewable energy capacity of 110 megawatts which we have contacted. Now I understand from our con-call also that our requirement of in power is when 25% of the renewable — in total energy consumption, 25% should be the renewable energy.
So we have some 2004 to 200 megawatts of thermal capacity to be able to renewable energy will be able to give us a more room to use our captive power, thermal power. Right. So still when we look at the 110 megawatt of renewable energy, it means we can consume — we can have capacity total consumption of about 440 megawatts. So it is going on the higher side, right? It is going on the higher side.
Saunak Gupta
There are Mr Maha Patra to just respond to that.
Bijayananda Mohapatra
Sorry. Actually, we have taken 110 megawatt with two, three aspects. And one is the power requirement is another 60 megawatt for this project, Phase-1. Our Phase-2 in this same land, we have a plan for putting up another 33 MBA. So there will be requirement another 30 megawatt. And to say the — now the is so we’ll mix some renewable energy in our existing operational area like and Valley.
So to say that with June 26. So we’ll get around 25% subsidy in the transmission interest transformation charges. So that will also give a long-term profit to us. So with keeping all these things in mind, we have taken this you.
Joe Shah
Okay. Yeah. Okay. Okay. Thank you. That’s all. Thank you very much.
Saunak Gupta
Thank you, Mr Shah.
Operator
Thank you. Thank you. The next question is from the line of Aman Shah from Augmental Research. Please go-ahead. Yes, Mr Aman, go with the question please there is no response from participants, we’ll move to the next. The next question is from the line of Anshika from Jean Associate. Please go-ahead.
Unidentified Participant
Hi, everyone. First of all, congratulations on this amazing result. I wanted to ask, what would be the potential Q2 numbers in terms of production sales and EBITDA costly.
Saunak Gupta
The forward-looking thing, as you know, there are certain registration of steady guidelines, we won’t be able to give you those required values. But one thing we can say already, Suresh has mentioned that the production will be in the range of around 65,000 and you know that whatever is our production-based on it, we also sell it off.
So that would be there. Price realization will depend how the market behaves, but we have said we are seeing some sort of upside from the low what we saw in-quarter four that we are seeing. So that’s the maximum what we can say as of now.
Unidentified Participant
Secondly, can I am a little honest about what is the current sales mix and how we are seeing it for the next quarter as well in terms of LTC and spot as well as domestic and export?
Saunak Gupta
Yeah, Suresh, you.
M. Venkatesh
Can just repeat your question, ma’am?
Unidentified Participant
I was asking about mix. Okay. Sales mix in terms of cotton LTCs and also in terms of domestic and export. In terms of percentage, it will be looking.
M. Venkatesh
Yeah. So when we look at export to domestic, it will be in the similar range like what we have been doing roughly about 90 10, 19 export 10 in domestic, that would be somewhat those numbers, 90% to 95% in exports and like 5% to 10% in domestic. LTC to spot LTC would constitute about 80% of our sales.
Unidentified Participant
And most of it is
Unidentified Participant
Is in the or some other customers as well. If any big customer, they are also having LTC apart from Posco yeah, we are having LTC with many customers apart from POSCO.
M. Venkatesh
Yeah, they are big customers. That’s all I can say.
Operator
Okay yes, ma’am, does that answer your question?
Unidentified Participant
Now, just a last question, if I can ask is more color, because it is what is currently they are voting or means of putting the from the international market?
Operator
Can you just repeat your question again.
Unidentified Participant
Still Colombian market or are we trying to explore some different countries as well?
Suresh Babu
Most of the coke is from Colombia only and some part we are also exporting from other sources.
Unidentified Participant
Is there any ratio to that or and we mostly use ULP coke or another.
Suresh Babu
We mostly, we mostly use ULP coke. The ratios are depend upon the market product requirements.
Unidentified Participant
And, as I can recall, the total cash generation for the whole year has been close to 100, 700 crores. Any of the in terms of the operational business performance, what was the total cash generation in terms of what was the outflows for operation and net of the inflows?
Saunak Gupta
So as we said that our PAT is INR378 crores. And on the of operating and as well as the investing activities we add-up, the total free-cash flow generated was INR430 crores. So that is the overall — this is before payout of the dividend.
Unidentified Participant
Okay. Thank you so much, sir.
Operator
Thank you. The next question is from the line of Manan from PMS. Please go-ahead.
Manan Vandur
Yes, thank you for the follow-up. Sir, my question was that I could understand what is prime — prime rate and that — could you explain what is that prime rate what you said around 93,000 something.
Saunak Gupta
Yes. So the prime rate is basically the gross rate. And then on that whatever are the sales realizations, those things — the selling cost and selling expenses, transportation expenses, if you reduce that out, it comes to about 87,000.
Manan Vandur
So we gave you the net sales realization rate, 87,000. And what is the percentage of these costs usually? So like could you give an example, like let’s say INR1 lakh is the prime — prime rate gross rate? Then what would be the rest, how would you do it?
Saunak Gupta
It will be varying from around — it also depends on the woods and freight cost and all. So it varies around INR6,000 between INR5,500 to INR6,500 rupees.
Manan Vandur
Okay. Okay. So that means the prime rate would be more and then the net-debt would be less that debt.
Saunak Gupta
Yes, yes.
Manan Vandur
Okay, 5,000 gap. And sir, so what you said, there are long-term contracts of 93,000 which is there, so that is prime those long-term contracts.
Saunak Gupta
Yeah, that’s the average prime cost.
Manan Vandur
Okay, that is the average prime cost. Okay, understood. And sir, for example, let’s say I just wanted an example. So let’s say today ferrochrome is 1 lakh as on today’s date. So in our realization, how much time will it take for that 1 lakh to come? How many months, for example?
Saunak Gupta
So as I said, it takes about approximately 1.5 months lakh period is there one and a half months-to two months-to get that full value of it.
Manan Vandur
Okay, understood. Thank you, sir.
Saunak Gupta
Thank you.
Operator
Thank you. Next question is from the line of, an Individual Investor. Please go-ahead.
Unidentified Participant
Thanks for the opportunity. Am I audible?
Saunak Gupta
Yes. You are audible.
Unidentified Participant
I had a few questions. So production next year can be 3.1 lak to 3.2 lakh tonnes of and in FY ’28, we can do 3.6 lakh completely.
Suresh Babu
Yes, yes. Yes, you are right.
Unidentified Participant
Okay. And have we entered into discussions for long-term contract of this expanded? It’s already tied-up. We can have no problem in placing this quantity in the marketsh.
M. Venkatesh
Thank you. I think you mentioned next year, I think so you were mentioning the production will go up. That’s FY ’26 you are talking of or.
Unidentified Participant
No, 27 — 27 3.1 to 3.2 and 28 3.6 whether those can be met by us.
M. Venkatesh
I will answer. So we like I was mentioning a little while earlier, you know, the domestic market is growing. So there is a huge potential in the domestic market. Added to that, our existing customers, some of them are also expanding. Their expansions are also coming up and some of them are — they just have a — they take a very small quantity from us as compared to their total requirement.
So there is a scope there also. So we have the option of expanding with existing customers, but primarily at this stage, we are trying to increase our presence in the domestic market.
Unidentified Participant
But is the realization better domestically compared to these long-term contracts or why are we going to change the mix between long-term and?
M. Venkatesh
Yeah, see. Like I was again answering that. You can’t have a big gap between all these prices. There may be a little lag or a lead, but the prices or overall over a period of time would be at similar levels, whether it’s a long-term or whether when you look at spot. In long-term, you have that certainty.
In spot, you don’t have the certainty. So I don’t — I don’t see price is going to play a role for us to decide. We would rather look at a requirement and since the domestic requirement will go up, it would be better for us to cater in the domestic market. And if need be, like I said, we have an option to also increase our exports.
Unidentified Participant
And sir, second question is on power cost. So with this new facility we have tried up power, will the effective cost be lesser, higher or the same as the current power cost?
Saunak Gupta
I think can just add to that.
Binoy Agarwalla
For Kalinganagar, actually we have tied-up with hybrid renewal energy and that power cost will be at par with our present generation cost. It won’t be that high.
Unidentified Participant
Even after accounting for any subsidies, etc, it’s not cheaper at par.
Binoy Agarwalla
It will be at par. It’s not that cheap because again, there will be a transmission charges enhancement or ED, something like that is there at the landed cost. So it will be at par with power generation costs at present.
Unidentified Participant
Okay. And sir, one last question on this figure of INR800 crore INR900 crores on the CapEx. So if you could spend some more time commenting on how the figure increased, I think it will lot of concerns because the earlier figure was around INR600 crores, INR500 crores. So if you could spend some more time explaining how it has increased it.
Saunak Gupta
So Sudesh, you want to add, then I will just further add-on that.
Suresh Babu
No, you can talk about that. So what I was just saying earlier, as I said that we are actually putting in a best-in-class plant over there. So we’re looking to all the opportunities. So that has increased because last-time initially we had said it will be around INR700 crores from there. It is on the base level, it is INR840 crores.
It has increased as well as there is an escalation of the various cost which has happened because this INR700 crores we had mentioned somewhere around 2.5 years to three years back. So that has gradually the escalation of cost-plus whatever is the quality of the equipments and all what we have done with that has resulted into a increasing to INR840 crores.
And on that based on whatever the current accounting standard, we can also capitalize whatever the cost which we will be spending for commissioning and trial run. So that is adding up to about INR60 odd crores. So all totally, the full capitalizable value we are taking of INR900 crores.
Unidentified Participant
And this is the final value now. There are no escalations on this number.
Saunak Gupta
This is — so this is the Final on this.
Unidentified Participant
And this best-in-class machinery, so will it — will this plant have better efficiency than our soil plant? Will we have more — will the ratios improve in this plant compared to the prior months?
Saunak Gupta
So basically the visibility of the operations will improve. So it is more of the digitization we are doing. So those will happen to a major extent. And efficiency, we expect there should be a better improvement from the current levels. We are hopeful on that.
Unidentified Participant
Okay. Thank you, sir. All the best.
Saunak Gupta
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Joy Shah from 7C. Please go-ahead.
Joe Shah
Gentlemen, I understand that for Q4 sales realization was INR87,000 about per metric ton of. Now for Q1, we are expecting some 92,000 to 93,000 per metric ton realization, average deal come confirm my understanding.
Saunak Gupta
So Mr Shah, we are seeing some upside, but as you know, there are certain lag period for getting this value in our books. So obviously, we are having that our — overall, we are expecting that Q1 view — our realization will improve. But exactly quantifying at this stage is slightly difficult. And as you know, the market still is uncertain.
So we can’t predict what it will be at the end of 30th June considering the overall uncertainty in the market. But yes, our overall — currently at the current date, we have a feeling that, yes, it should be better than what we had experienced in-quarter four.
Joe Shah
Okay. Okay. Thank you.
Saunak Gupta
Thank you, Mr yeah.
Operator
Thank you. The next question is from the line of Manan from PMS. Please go-ahead.
Manan Vandur
Hi, yes. Thank you so much for giving me another opportunity. So we have 110 megawatt renewable energy contracts. So would you please give us the details of that select per unit, how much price have we contracted it? And for how many years is the contract.
Binoy Agarwalla
Actually 110 megawatt, we have signed 70 megawatt of contracted capacity with hybrid mechanism with GSW. That’s fine. And we have signed binding terms with 40 megawatt club-up together is 110 megawatt. Correct. And both the agreement will be for 25 years and they will be supplying power by June ’26
Joe Shah
Okay. And what would be like the agreement price of that one unit price?
Binoy Agarwalla
One unit price of JSW is Buzzwatch injection point is 384 and with is INR375.
Manan Vandur
Okay. So that means this is lesser than our current 4.09. So this will be helpful for us. Is that understanding correct?
Binoy Agarwalla
Okay. It’s the generation injection point and your landed cost will — will be a little bit higher side. But our variable-cost is 49, it will be at par with that.
Manan Vandur
Okay. Okay. Understood, understood. Okay. And these are 25 years contract, PPA contract.
Binoy Agarwalla
That’s already took 25 years.
Manan Vandur
Correct. Correct. Okay. And sir, our long-term contracts, they are changed — their contract prices have changed every three months or one month or something like that is there like renewable of renewable prices is something like that happening?
Saunak Gupta
For this contract of 110 renewable energy?
Manan Vandur
No, sorry, sir, sorry about.
Saunak Gupta
Katesh you may add or respond to the question.
M. Venkatesh
Good. Yeah. Yes. There are contracts which have a quarterly price and there are also long-term contracts, which is based — which is a monthly price-based on certain indexes. So both the contracts are there in-place.
Manan Vandur
Okay, quarterly and monthly. So — and how is this determined? So these prices, how would they be determined?
M. Venkatesh
This is linked. If you look at the quarterly contract, they are linked to what we Call-IT as, that’s the European benchmark price now declared by. So because you can’t have a long-term contract without any linkage to an index, you just can’t have a quantity without a price. It has to be linked. Similarly, we have certain monthly contracts, which is linked to certain indexes in China.
Manan Vandur
So one you said quarterly said BBM and the monthly one is which index?
M. Venkatesh
EBM, European benchmark.
Manan Vandur
E okay, EBM and the monthly one is linked towards, sir?
M. Venkatesh
It’s linked to the Chinese index price.
Manan Vandur
Okay, understood. And if I wanted to understand like any quarter’s price. So how is this linkage actually done? Like is that a percentage form or is it directly that same amount? How is that done?
M. Venkatesh
That is the part of the negotiation. You know, just to give you a small example, the EBM went up by this quarter, that is quarter one from quarter-four to quarter one, there was a change of $0.05. But if you look at it as — that’s the $0.05 is an absolute number. But in terms of percentage, it’s 3.7%. So that based on these numbers, we negotiate the price.
Manan Vandur
Okay. So this was almost a 3.7% range. So for example, let’s say, in Q4, our realization was 90,000, for example and so in Q1, it would be almost 3.74% higher. Is that understanding correct?
M. Venkatesh
It would be — I can’t tell it will be exactly the same. It would be a similar — similar level.
Manan Vandur
Correct. Correct. Okay. Okay. Understood. Understood. Thank you so much.
Saunak Gupta
Thank you.
Operator
Thank you. Okay. And sir, was the last question for the day. I now hand the conference over to Mr Abhishek Sawant from Veritas Reputation for closing comments. Over to you, sir.
Abhishek Savant
Thank you. Thank you to everyone who joined us today and participated in the discussion. We appreciate your questions and continued interest in. As always, we remain committed to the transparent communication and delivering long-term value to our shareholders. On behalf of the Board of — Board of Directors and management, we thank you all for your participation in this call.
Should you have any further questions, please feel free-to reach-out to us. We look-forward to engaging with you again in our future updates. Have a good afternoon and stay safe. Thank you.
Saunak Gupta
Thank you.
Operator
On behalf of Corporation Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you