Lloyds Metals And Energy Ltd (NSE: LLOYDSME) Q2 2025 Earnings Call dated Oct. 25, 2024
Corporate Participants:
Rajesh Gupta — Managing Director
Riyaz Shaikh — Chief Financial Officer
Analysts:
Siddharth Gadekar — Analyst
Parthiv Shah — Analyst
Vikash Singh — Analyst
Nishant Bagrecha — Analyst
Rajesh Ravi — Analyst
Manish Sehgal — Analyst
Ashutosh Somani — Analyst
Aryan Sharma — Analyst
Deep Mehta — Analyst
Vikas Shah — Analyst
Shrey Gandhi — Analyst
Bharat Bagrecha — Analyst
Amit Agicha — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Lloyds Metals and Energy Limited Q2 FY’25 Earnings Call hosted by Equirus Securities. 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. [Operator Instructions]. Please note that this conference is being recorded.
I now hand the conference over to Mr. Siddharth Gadekar. Thank you and over to you Mr. Gadekar.
Siddharth Gadekar — Analyst
Good morning, everyone, and thank you for joining us today. We at Equirus are pleased to host Lloyd Metals and Energy’s 2Q FY’25 results conference call. We have with us today Mr. Rajesh Gupta, Managing Director; Mr. Riyaz Shaikh, our CFO. Now, I would like to invite Mr. Rajesh Gupta to initiate the proceeding for the results call. Thank you.
Rajesh Gupta — Managing Director
Good morning to all the people, investors, and analysts present on this call. We appreciate your continued support and interest in Lloyds Metals and a special thanks to Siddharth and the Equirus team for hosting this call today. We value the opportunity to share our progress and insights and the process of the company with all of you. I am pleased to report that our Q2 and H1 FY’25 results have been very satisfying and robust, reflecting strong performance on both operations and financial metrics and in continuation of our target to create a cyclical-proof steel business.
In terms of iron ore volume, we have achieved 5.37 million tons in the first half and in sponge iron production also we have done better in both the plants, since now two plants are operational than the previous year substantially. The iron ore market domestically remains buoyant. There is some headwind, but the prices have remained stable at around $100 for the 62% grade in the international market. And in the Indian market for the first time after many months we have seen a double price increase in the market itself. In addition, there is a considerable demand for high quality ore which, very positively influences our outlook for our iron ore business.
In terms of project updates, we are excited to announce the successful laying of the 85 kilometer slurry pipeline, completed in record breaking time, and probably one of the fastest durations of around eight to nine months since we started the project. This pipeline is now awaiting the completion of the first pellet plant, which will be completed within this financial year in Konsari. The DRI plant in Ghugus also would be — is also well in progress and future projects like second pellet plant and the 1.2 wire rod mill in Konsari and Ghugus are also advancing within — well within schedule. Regarding the mine expansion, we have received permissions stage-by-stage and within this fiscal year, we hope to announce the mine expansion also as per our original projections.
With these updates, I will now hand over the call to Riyaz, our CFO who will walk you through our quarterly numbers. Over to you, Riyaz.
Riyaz Shaikh — Chief Financial Officer
Thank you, Rajesh ji. Good morning to all participants on this earning call. Thank you for joining us today. A brief overview on our H1 FY’25 revenue performance. H1 FY’25 revenue grew by 26% year-on-year, driven by higher sponge iron and iron ore volumes. On the iron ore front, both volumes and realization showed encouraging growth year-on-year. Sponge production also recorded increased volumes and realizations year-on-year. The company received close to INR72 crores as IPS benefits from previous years contributing to overall performance and this forms part of our income — other income for reporting purpose.
On EBITDA front, EBITDA mirrored revenue performance increasing by 37% year-on-year in H1 FY’25. The robust performance was supported by high margins from both iron ore and sponge. Speaking about capital expenditure, we incurred a capital expenditure of INR1,690 crores in FY’24 and INR1,714 crores in H1 FY’25. Now — now we’ll give you a brief snapshot on per ton metrics as well. Iron ore realization for quarter two FY’25, iron — the iron ore realization was INR5,516 per ton, up 19% year-on-year. And for H1 FY’25, it was INR5,638, up 11% year-on-year. EBITDA per ton, for quarter two FY’25, INR1,668, up 17% year-on-year and for H1 FY’25, INR1,782, up 21% year-on-year.
DRI segment volumes were as follows. Q2 FY’25 was 84,552 tons and H1 FY’25 was 1,60,974 tons. Realizations remained stable both year-on-year and quarter-on-quarter. Power segment performance, the power reported a steady performance with 38% higher sales year-on-year for quarter two FY’25. For H1 FY’25, volumes were also higher by 4% year-on-year. Capex and project updates. As mentioned by Rajesh ji, all our projects are progressing at breathtaking speed. Several projects are ahead of schedule, but we will maintain our capex design as previously guided. The fundraising undertaken by the company has supported fast execution of all the projects. Taking queue from Rajesh ji, we foresee a much better H2 FY’25. Thank you. That’s all from my side. Thank you for — thank you all for taking the time to join this call. I look forward for your insights and questions during this call. Thank you. Over to you, Siddharth.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parthiv Shah from TS Builders Private Limited. Please go ahead.
Parthiv Shah
Thank you, sir, following me with the question. And firstly, congratulations for a great resilient set of numbers. Sir, I want to understand what has been the average iron ore prices during the quarter and also what have been the exit iron ore prices?
Riyaz Shaikh
The average for this quarter the iron ore prices was INR5,516 per ton.
Parthiv Shah
And what is [technical issue]?
Riyaz Shaikh
And for the half year it is INR5,638.
Parthiv Shah
Sir, have you increased the ore prices for the October deliveries?
Riyaz Shaikh
Not able to hear you propertly.
Parthiv Shah
Sorry, have you sir increased the ore prices for the October deliveries? And also sir if you could quantify because NMDC has taken two price hikes in October?
Rajesh Gupta
Yeah, so we go with the flow of the market and we have also taken price hikes. Our price hikes are more constant or price hikes or price falls are more constant. This year or rather this month as like I mentioned earlier after, many months the price increase of 2 times has been announced by NMDC and we have followed suit — little bit better than that.
Parthiv Shah
Okay, and sir what is your production volume guidance for ’24 — estimates FY’24?
Rajesh Gupta
FY-’24-’25, so we expect around, 13 million, 14 million tons assuming that the — for the expansion comes by February — mid-February or so.
Parthiv Shah
Okay. And sir, one last one. In your prior calls, you had mentioned that, as and when your iron ore mining goes up, you tend to get operating leverage and that would reduce your cost. Could you throw some light as to where your cost per ton looks at after this enhanced — enhanced mining?
Rajesh Gupta
After enhanced mining, the cost — the MDO cost should come down once it stabilizes by around INR150 to INR200 a ton. And once the beneficiation starts by another INR152, then the volumes go up really high, number one. Number two, the slurry pipeline cost once it is started, which will start along with the present plant, that should reduce our transport cost by around INR600 a ton also.
Parthiv Shah
Brilliant, sir. Thank you. Thank you so much sir for taking my questions. All the best.
Rajesh Gupta
Thank you so much.
Operator
Thank you. The next question is from the line of Vikash Singh from Phillip Capital. Please go ahead.
Vikash Singh
Good morning, sir, and thank you for the opportunity. Sir, I just wanted to understand the way I see that this sponge iron EBIT has jumped on a sequential basis, while we believe that the prices was kind of a lower for most of the players in Chattisgarh region. So just — is there anything additional in this sponge iron, which we are missing out right now?
Rajesh Gupta
We have got the permission for previous year IPS industrial promotion scheme in this year, which we have accounted for as other income of around INR72 crores. So that is the one-time income that is added to the bottom-line?
Vikash Singh
Understood, sir. Sir, in terms of pellet trading, which we started and had done a marginal losses this quarter, just wanted to understand that why if we are able to sell iron ore, then why this pellet trading is happening here right now? Or —
Rajesh Gupta
Pellet trading we have started from three, four directional reasons. The primary reason is that it will become our seed marketing effort for our higher-grade pellets, so that we will be coming into the market very shortly so that we can export with a better knowledge of the market when we are fully commercial. This quarter, like many people know the pellets margin, especially on the export front were very low. So we have not had much export or zero export and the margin loss that you see is basically a carry-on for the previous quarters, some figures that were balanced, and some admission costs.
Vikash Singh
Understood, sir. Sir, just one last question. How much capex we have already done for the first-half and the pending capex for the second half, which we are guiding, and for FY’26 as well?
Riyaz Shaikh
We’ve done around INR1,700 crores in the first half and we should be doing an equal amount in the next half of this financial year also.
Vikash Singh
Understood, sir. And lastly, if you would like to give us some idea about the beneficiation of low-grade iron ore project where it is right now, by when we are thinking of starting and how is the cost differential in terms of additional cost which we had to incur for beneficiation of iron ore?
Rajesh Gupta
The beneficiation plant, we have started a pilot plant, which was commissioned in end of March 2024 that pilot plant is giving us very good results. We are getting little better result than what was earlier thought to be. We’re getting 68% output through the beneficiation route. We have produced some quantities and we are now going to do this testing of these quantities up to pellet making as well as steel-making so that we understand the full benefit of the ore and/or if any of the — any correction need to be doing from downstream production activities, number one.
Number two, we have — from the project angle, the — with the beneficiation pilot plant completed, the flow sheet of the project is now final, and digital engineering is going on along with our Chinese contractor, Sinosteel. Simultaneously, the permissions required for the forest land, etc. are being processed and we are in line for our — as projected for the first plant to be ready by end of ’27-’28. So we are very in line within that.
Vikash Singh
Understood, sir. Sir, what is the cost — additional cost which you need to take out versus the premium of 67% Fe grade, what is in right now the premium and what is the additional cost we expect?
Rajesh Gupta
The cost of beneficiation would be around INR800, INR700 a ton, but that is more than offset by the fact that this material would be piped by slurry pipeline to our steel plant or pellet plant facilities, number one, as well as the royalty would come down because we are doing this beneficiation outside the mine area and the royalty will be paid on a lower-grade material. So we believe that the cost would be well under control compared to current in spite of a higher-grade. Regarding the premium of the higher-grade, pelletization, the market is giving a premium of around USD40 to USD50 in the international market. And if you look at steelmaking, we expect around similar benefit, not similar, maybe little lesser benefits if you look at steel making, we expect around similar benefit. So overall it is a win-win situation.
Vikash Singh
Yeah, it’s still way above the cost you are incurring.
Rajesh Gupta
Yes.
Vikash Singh
That’s all from my side, sir. Thank you for taking my question and all the best for future.
Rajesh Gupta
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Nishant Bagrecha from Incred Finance. Please go ahead.
Nishant Bagrecha
Yeah. Thank you for the opportunity, sir and hope I’m audible and a couple of questions on the capex front and also on your iron ore. So sir, my first question is like, can you give some highlights on the capex front and share timelines on each plant commissioning over the next two to three years?
Riyaz Shaikh
The capex as I mentioned during this first half, we have done INR1,700 crores. It was well backed up with the fundraise also what we did. So the projects are all going much on time. We intend to do around INR35 crores — INR3,400 crores, INR3,500 crores in this year of — of capex and followed in the next two years of almost — not close to double sort of a thing what we’re doing here. So we should — and that’s how the capex plans are. All our projects are running much in — all our projects are running much, much in advance. As of today — as we mentioned, but we just continue sticking with the same dates what we have already mentioned. So on the capex front, all projects are almost one, one and a half year ahead of schedule. That is what we are going on. So we should be completing things very, very soon, but we should be coming out with things.
Nishant Bagrecha
Okay. Sir, and like the pellet, like the first pellet —
Rajesh Gupta
If I can give some update on the project, why? The first is the 25 million ton dispatch from the mine, either DSO or beneficiated. We hope to complete this by February 2025. The beneficiation like I mentioned earlier, by end of financial year ’27-’28 was the original. We hope to do it around six months earlier than that for all the three phases. The iron good — iron ore grinding plant and the pipeline, like I mentioned earlier, the pipeline is already completed. The grinding unit of 10 million tons will be completed by March ’25. The pellet plant, the first one will be completed by the March ’25 and the second one by March ’26. Our original guidance was around six months to one year more than this. The — for integrated steel plant the first phase of that is the DRI plant. We hope to complete this by March ’25 again, and part of the captive power plant in March ’25, one small part in March — in January ’25. And the 1.2 million ton steel plant with BF, blast furnace, coke oven, and wire rod mill by September ’26.
Nishant Bagrecha
Okay. Thank you. And sir —
Rajesh Gupta
These are our internal projections. Our projection to our Board are — the original projection with the Board were a little bit more than this like we have mentioned.
Nishant Bagrecha
Okay. And just wanted one more clarity on the capex front, like we have spoken about almost INR32,000 crores capex over the next five to six years. So post the fundraise, can we assume the entire capex would be funded by internal accrual?
Riyaz Shaikh
Yes. As of today, we have all decided it should be — it should be — and it would be all — without debt. That is what we have — we should be continuing. We had — we had a fundraise of peaking as well as warrants. Warrants is still around 35% is what we got and it will be getting 65% more. So we have — so this would be funding in the for the projects, nothing. It would be without — we still maintain, it would be without debt.
Nishant Bagrecha
Okay. Okay. And sir, one more, like what would be our cost of benefiting this iron ore. Can you give any sense on the all-inclusive cost of iron ore, including mining and beneficiations and royalty charges?
Rajesh Gupta
The all-inclusive charge of beneficiation, royalty, and transport to the consuming center that is either pellet or steel plant would remain more or less the same as of today. Okay, around INR2,500 — INR2,800 to INR3,000.
Nishant Bagrecha
Okay. Okay, sure. Thank you, sir.
Operator
Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Ravi
Hi, sir, good afternoon. Yeah major part of the question giving the details of the timelines. Just wanted to cross-check this INR3,500 crores capex would be in FY’25 and INR7,000 crores each is in FY ’26 and ’27?
Rajesh Gupta
Yes.
Rajesh Ravi
Okay. And as per your timeline, most of the project would get completed by FY ’26 and the BHQ beneficiation line also you mentioned would be completed by FY’26 end or early FY’27. BHQ, the last phase of that would be completed by September 2028.
Rajesh Gupta
’28.
Rajesh Ravi
Okay. Okay. So —
Rajesh Gupta
September 2027, sorry.
Rajesh Ravi
Okay. So FY’28, it will get completed. So —
Rajesh Gupta
It is a steel plant of 3 million tons, which expenditure of this land has started and the full study of the project is on right now. That INR16,000 crores project would be apart from land would be invested post some of the major investments being completed.
Rajesh Ravi
Okay. Okay. So this is a third leg you know beyond this INR14,000 crores — 17,000 — INR18,000 crores, which you would be spending in three years, the remaining INR16,000 crores, INR17,000 crores is what you would be outlined for —
Rajesh Gupta
[Speech overlap] includes that.
Rajesh Ravi
Sorry?
Rajesh Gupta
First, if you want to break it up, we have the DRI plant, the pellet plants at around and the pipeline and the beneficiation of around INR16,000 crores, 3 million tons steel plant at around INR16,000 crores, roughly, I am giving broad figures. So, the INR16,000 crores figure investment would start apart from land and technology build-up, would start post most of these other projects being over.
Rajesh Ravi
Okay. Understood. Great sir. I’ll come back in the queue. Thank you.
Operator
Thank you. The next question is from the line of Manish Sehgal, an Individual Investor. Please go ahead.
Manish Sehgal
Hi, sir. I just want a quick clarification on our relationship with Sunflag, given we are having about INR6 crore shares sitting there, which could be potentially a supply overhang? And also there was some oversupply agreement, if you could clarify a bit on that with them?
Riyaz Shaikh
Sunflag, as you all know, it was an arbitration matter by which we had given them these OFCDs, which got later converted into equity shares. That is around INR6 crores of equity share, which they have. And also, based on this same order, we entered into an ore purchase agreement where we supply them almost — they have a requirement of around 1 million tons per annum. So, at a cost plus basis, so, we’ve been doing that as per the arbitration order what we have. And it’s a completely — the shares are in the, it forms the part of the public holding. and [technical issue]
Manish Sehgal
Thank you. There was, at least in the initial list, the warrants were issued to them also. But, of course, finally, I think it didn’t fructify.
Riyaz Shaikh
Yeah, they were not able to [Indecipherable] for it.
Manish Sehgal
Yes. So I mean, is there some long-term thinking on the relationship with that company as well or it is just outside — setting outside?
Rajesh Gupta
In terms of long-term relationship this is limited to the supply of iron ore for which we have a long-term supply agreement with them.
Manish Sehgal
Okay. So this supply can come in the market effectively.
Rajesh Gupta
Supply of iron ore as such.
Manish Sehgal
No, no, I’m just saying the stock —
Rajesh Gupta
Supply of shares, we — the company is not — it’s a part of the public shareholding and we are not in a position to comment on that.
Manish Sehgal
Okay. Great. Thank you. That’s it. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Siddharth Gadekar from Equirus Securities Private Limited. Please go ahead.
Siddharth Gadekar
Hi, sir. Sir, can you just quantify how much price hikes have we taken in October 1st?
Rajesh Gupta
We have taken one price hike of INR425 and the second one is around INR380 or INR400. in the fine sector. And in the lump sector, the first one was INR425, the same figure. Second one, I think is INR500. I’m not able to remember the second one off-hand right now. close to INR500 crores.
Riyaz Shaikh
Close to INR500.
Rajesh Gupta
Yeah.
Siddharth Gadekar
So broadly excluding the royalty — incremental royalty that we might be paying on the higher realization, broadly everything should flow to our EBITDA in the third and the 4th-quarter assuming prices should stay where they are, right?
Rajesh Gupta
Yeah, the royalty — apart from the royalty, everything should flow to the bottom line.
Siddharth Gadekar
Okay. Sir, secondly, on the IPS number, where you said you have received INR72 crores for this year, how should we look at these numbers going ahead over the next two, three years?
Rajesh Gupta
I think this number is more or less the final figure for the overhang that was there for the past investment. For future, once the pellet plant is started, then we will start our new series of the IPS for Gadchiroli at 150%, that would start post the pellet plant and which would also be for the DRI plant in Gadchiroli. And similarly for the DRI plant, the new plant, once we start, post that the income would start accruing.
Siddharth Gadekar
So we can expect some benefits to start flowing in from FY’26 only?
Riyaz Shaikh
Yes, yes, because once we complete our projects in FY’25, we start operations in FY’25-’26, then we should be fine.
Siddharth Gadekar
Sir, secondly, in terms of the slurry pipeline, which has got commissioned already, when do we expect to actually start utilizing the slurry pipeline?
Rajesh Gupta
We would — the iron ore grinding unit is under preparation and the pellet plant. Even if the iron ore grinding unit is started, we can start sending ground material to the pellet plant area and try to dispatch some ground material to some customers. However, the delay is more — is expected around the same time as the pellet plant around March ’25.
Siddharth Gadekar
So the cost of transportation in the pellet plant would be around INR50. Is that a fair understanding?
Rajesh Gupta
To the pellet plant?
Siddharth Gadekar
Yeah.
Rajesh Gupta
Yes, yes, around INR50.
Siddharth Gadekar
Okay. That’s it from my side, sir. Thank you.
Operator
Thank you. The next question is from the line of Ashutosh Somani from JM Financial. Please go ahead.
Ashutosh Somani
Thanks for taking my question, sir. If you could just spend some time on the domestic pricing outlook, both in the short-term and in the long-term? So short-term perspective in terms of what are your customers saying and what kind of room you are seeing in terms of price increase further? And from a longer-term perspective of mines expiring in 2030, and how do you look at the pricing outlook there?
Rajesh Gupta
So Ashutosh ji, thank you very much for a very nice question. We have commissioned BigMint and Questro [phonetic] for a detailed market study to address some of these questions. Some — in the preliminary discussion, some surprises have been thrown up. For example, many of the sale steel authority pipe mines also expire at the same time as some of the other mines in 2030 that I didn’t know for example. The current — so continuing with the long-term, the steel market is expected to grow to 300 million tons by 2030, ’32, ’33 and there’s a growth of around 7%, 8% per annum for the next four years or even more. Given the pace of the iron ore mining increase in the past few years, we do not see that keeping pace. So we see a mismatch. Some of this mismatch will be covered by other beneficiation projects, which are being thought about, but we don’t know the extent of that. That is the study that BigMint would try to cover for us in the next two, three months, we’ll have that detailed report with us.
Regarding the short-term, the steel plant capacity in the country has been added by around 8% in the last quarter with two mega blast furnaces being commissioned apart from many other units being added. There have been no mine announcements coming up, so that is probably part of the reason of this mismatch and price increase. The Indian market continues to remain at a deep discount to the international prices, and so that does remain in the overall scenario that we factor in.
Ashutosh Somani
Sure. That answers my question, sir. Thank you.
Operator
Thank you. The next question is from the line of Aryan Sharma from B&K Securities Limited. Please go ahead.
Aryan Sharma
Hi, sir, good afternoon. Just one clarification. I know you have mentioned it already, but could you please give a more detailed wake-up on your future costs, like how much for beneficiation pipeline or steel plant, etc? Could you just share specifics onto it?
Rajesh Gupta
I think that would be quite detailed. Can we ask you to approach our investment relations cell and they would be glad to update you on that?
Aryan Sharma
Sure sir, sure, sir. No problem.
Rajesh Gupta
Thank you.
Operator
Does that answer your question, Mr. Aryan?
Aryan Sharma
Yes, yes, yes.
Operator
Thank you. The next question is from the line of Deep Mehta from Bank of India Mutual Fund. Please go ahead.
Deep Mehta
Hi, sir. Thank you for the opportunity. Just one clarification. We will get our EC limits for increasing our mining capacity by end of this year, correct? Then
Riyaz Shaikh
End of this financial year.
Deep Mehta
Yeah, end of this financial — and then how much time will it take to ramp-up the production to the rated capacity?
Rajesh Gupta
So let me clarify on the EC, there is the — the mining plan has been approved. The TOR has been approved. Now the public hearing would happen post this Maharashtra elections. And subsequent to that the EC would be issued by the Central Government, MOEA. So that is the process that is balanced, what has been completed, what is balanced. So we expect the timeline by February 15, 20 something like that. We already have processed up to 2 million 2.5 million tons also per month, so we hope that the 25 million ton DSO sales on a per month basis could happen more or less immediately in line with the EC clearance. Our MBO Thriveni has already started implementing machinery based on this.
Deep Mehta
So is it fair to assume that for FY’26, we may touch 20 million ton or something like that?
Riyaz Shaikh
25 million.
Rajesh Gupta
25 million would be a more accurate figure.
Deep Mehta
Very clear, sir. And pellet plant will also start, right? So what will be the sales to the outside world and –[speech overlap].Yeah. Okay, sir. And pellet plant should start by — during the start of the next financial year, right?
Rajesh Gupta
First pellet plant would start — first pellet plant and the first — the DRI plant capacity enhancement, both should happen by the end of March ’25.
Riyaz Shaikh
Operations should start from the next financial year.
Deep Mehta
Okay, sir, very clear. That’s all from me. Thank you.
Operator
Thank you. The next question is from the line of Vikas Shah from RNM Capital Advisors. Please go ahead.
Vikas Shah
Yes, sir. Thank you for the opportunity and congratulations on the robust performance. So first question is with respect to our — so what is the yield that we’ve got in the pilot beneficiation plant? And can we assume that the yield will improve when we do beneficiation on a larger scale?
Rajesh Gupta
The yield that we got is around 38%. Originally, we had anticipated 35%, so 38% is little bit improvement on that. I would say that this 38% is an optimum figure there are too many variables in a larger plant so I would say 38% would remain our internal thinking at —
Vikas Shah
Okay. And so when we talked about 45 million ton of beneficiation, which would give us roughly around 15 million ton of saleable iron ore. So can this number be even higher also?
Rajesh Gupta
It will be a little bit higher, but again that’s — we have to appreciate that this is the first time that this plant is being done in India. So we are being very, very conservative in announcing our figures and — but the pilot plant is showing 38%.
Vikas Shah
And then one last question. What is the mining that you have done in any month? Just to understand like how fast we can ramp-up the mine?
Rajesh Gupta
Sorry, come again. I lost your question.
Vikas Shah
Sir, what I’m saying is that, what is the peak mining that we have done in any month? Just to understand like how fast we can ramp up the mines?
Rajesh Gupta
Around 2.2 million tons were done, I think in the beginning of the — beginning of this financial year.
Vikas Shah
Okay, sir. Okay. Okay. Thank you so much for answering.
Rajesh Gupta
And one more thing that we have to do keep in mind is the logistics movement. So that becomes a bottleneck. With the pipeline of 10 million tons being commissioned simultaneously, that bottleneck stands reduced dramatically.
Vikas Shah
Correct. Correct. Okay, sir. Thank you so much for answering. Thank you.
Operator
Thank you. The next question is from the line of Shrey Gandhi from CR Kothari Stock Broking. Please go ahead. G
Shrey Gandhi
Good afternoon, sir. Thank you for the opportunity. I just have a small question. When I was going through the quarterly results, I see the mining revenue has decreased quarter-on-quarter by almost INR800 crores. So could you just throw some light on this and what can we expect in the coming —
Riyaz Shaikh
Can you speak louder. We’re not able to hear you propertly.
Shrey Gandhi
Yeah, am I audible now?
Rajesh Gupta
Yeah.
Riyaz Shaikh
Yes.
Shrey Gandhi
The mining revenue has decreased by almost INR800 crores in the quarter two as compared to last quarter. So can you throw some light on this and what can we expect in the coming future?
Rajesh Gupta
The quarter two guidelines are always going to be lower for any year because of the rains and monsoons and the demand, etc. So all put together, that’s always going to be little lesser than quarter one or quarter four. It’s a nature of the animal.
Riyaz Shaikh
Seasonally weaker quarter, so. So the second quarter always sees a similar type quarter.
Rajesh Gupta
But this quarter has been better than the year-on-year quarter. This half has been better than year-on-year half.
Shrey Gandhi
Yes. So in the coming quarter we can expect something similar figure or maybe more than just the quarter one?
Rajesh Gupta
Like we mentioned earlier, we would be having our — if you talk about mining, the figures will continue on the same basis till we get the and the overall guidance would be around 13 million 14 million tons for the year for mining and our DRI plant of around 330,000 tons a year will be the overall guidance.
Shrey Gandhi
Okay. Thank you, sir and congratulations for the great numbers.
Rajesh Gupta
Thank you.
Operator
Thank you. The next question is from the line of Bharat Bagrecha, an Individual Investor. Please go ahead.
Bharat Bagrecha
Yeah, am I audible to you sir?
Rajesh Gupta
Yes, sir.
Bharat Bagrecha
Yeah. Can we see any incremental volume if we get the EC clearance by year-end or 2025, as you said?
Rajesh Gupta
So, the incremental volume would be, right now it is 10 million tons, so 13 million tons, so that means 3 million tons would be the incremental volume in the last one and a half months to two months.
Bharat Bagrecha
How can we increase the profitability at current levels, given the higher number of prices are today?
Rajesh Gupta
Can you repeat that?
Bharat Bagrecha
[Technical issue] given the higher number of prices are today?
Rajesh Gupta
We’re losing the first part of your question. I think there’s something wrong with your line.
Bharat Bagrecha
The profitability at current levels, where the iron ore prices are today?
Rajesh Gupta
I would leave that to the very able analysts to analyse that. There are nearly 100 people in the group, so I am sure many of them would be doing a lot of that analysis.
Bharat Bagrecha
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Amit Agicha from HG Hawa and Company. Please go ahead.
Amit Agicha
Good afternoon, sir, and thank you for giving me the opportunity. Am I audible and clear enough?
Riyaz Shaikh
Yes.
Rajesh Gupta
Yes, yes.
Amit Agicha
Can you please elaborate on how the slurry pipeline contributes to reducing the carbon footprint and operational efficiency?
Rajesh Gupta
Are we — we spend around — okay in terms of carbon efficiency, I don’t have the figures with me, but we —
Amit Agicha
Can we have the figures?
Rajesh Gupta
We don’t the figure. The truck movement is with diesel and this is through pumped power and the slurry reduces this. I will work on this. It is a very interesting question. We have the figures in rupees, but not in carbon footprint. We will evaluate that. Apart from that, what we are also doing in carbon footprint reduction is the pelletization. We are working — going to work with LNG, not with oil. So that will reduce that carbon footprint in a very big way. The local transport to the siding to the nearby customers would be through LNG trucks. That is as far as the transport is concerned. Within the mine, much of the equipment by the year 2025 would be through electrical equipment, again reducing the carbon footprint dramatically. So all of that put together, the footprint reduces. By the next quarter, I think we would be able to have a more precise — not precise but more elaborate answer to your question, my friend.
Amit Agicha
Thank you. It was very helful. And last question is like are there any diversification plans or technology investments aimed at enhancing operational efficiency?
Rajesh Gupta
That’s it. Within the plans that we are doing, there is a continuous effort to improve efficiencies, improve marketability, improve costs and things like that. So that is an ongoing process. Apart from this, there is no specific thing that we are addressing right now. The steel plant that we are talking about, the 3 million ton steel plant, we are looking at the latest technologies in the blast furnace route, etc., to ensure that the technologies are very well up to date. So whatever plants we are buying are state-of-the-art, up-to-date plants.
Amit Agicha
Thank you. That was very helpful. Thank you and all the best.
Rajesh Gupta
Thank you, sir.
Operator
Thank you. As there are no further questions, we would like to hand the conference over to the management of Lloyds Metal and Energy Limited for closing comments.
Rajesh Gupta
I would like to thank everybody for the active participation and the very interesting questions and Happy Diwali to one and all and wish all a happy and prosperous investing New Year. Thank you.
Operator
[Operator Closing Remarks].