Steel Authority of India Ltd (NSE: SAIL) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Praveen Nigam — Director, Finance
Unidentified Speaker
Analysts:
Ashish Kejriwal — Analyst
Ritesh Shah — Analyst
Amit Dixit — Analyst
Sumangal Nevatia — Analyst
Unidentified Participant
Pallav Agarwal — Analyst
Pratim Roy — Analyst
Tushar Chaudhari — Analyst
Vikash Singh — Analyst
Raashi Chopra — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Steel Authority of India Q3 FY ’25 Earnings Conference Call, hosted by Nuvama Wealth Management Limited.
As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Ashish Khejriwal from Nuvama Wealth Management Limited. Thank you, and over to you, sir.
Ashish Kejriwal — Analyst
Thank you, Sejal. Good morning, everyone. So on behalf of Nuvama Institutional Equities, we welcome you again on-sale Q3 FY ’25 post result con-call. We are delighted to have Executive Director of Finance, Mr Praveen Nigam along with his team.
And now I will request Mr Nigam for his opening remarks and then we can open the floor for Q&A. Over to you, sir.
Praveen Nigam — Director, Finance
Yeah, thank you, Mr Wal. Good morning, everyone. I welcome all our investors and analysts who are joining this result con-call for the financial result of sales for the period Q3 and 9M financial year ’25. Before I present the highlights of the results, I would like to briefly the house about the global as well as the domestic economic scenario in which we have operating off-late. As these impact the results significantly, after the presentation on the economic scenario and the result, we shall take-up your queries in the Q&A session.
Now as for the world economic scenario is concerned, the global — the current global economic landscape is characterized by moderate growth with the International Monetary Fund projecting a global GDP increase of 3.3% for both 2025 and 2026, this growth is however, uneven across region, influenced by factors such as trade policies, inflation rate and geopolitical tensions. The projection for emerging and developing economy stand at similar level as of 2025 and 2023, that is at 4.2% to 3.4.3%.
On the other hand, the advanced economy sees a marginal improvement in the projection for the two year that is 2025 and 2023 at 1.9% and 1.8% respectively, compared to the estimate for the 2023 at 1.7%. Announcement of 25% tariff on all steel and aluminum import into the US has raised concern amongst global producers about the potential retaliary measure and impact on the global trade pattern. The imposition of tariff by US has also led to increased volatility in the global market. While US steel maker stock have served in anticipation of gaining a competitive advantage, global producer are experiencing decline.
Additionally, concern about raising inflation and protectionist policies has emerged with varying impact depending upon countries and industries involved. As far as the global steel industry is concerned, global steel industry is navigating a complex landscape influenced by economic trends, trade policies and technological advancements. The global economic scenario in 2025 presents both challenges and opportunities for steel industry. While certain regions may benefit from protective trade measures, the overall impact is complex with potential for increased costs, market volatility and shift in global trade dynamics.
The World Steel Association forecasts a 0.9% decline in global steel demand for 2024, reaching 1,751 million ton, a modest recovery is anticipated in 2025 with the demand expected to increase by 1.2% to 1,772 MT. Meanwhile, the steel industry is increasingly focusing on sustainability and technological advancement. There is a growing emphasis on reducing carbon emission through innovative production methods and adoption of renewable energy sources. The integration of artificial intelligence and automation is enhancing manufacturing processes, improving efficiency and reducing costs.
In Indian economy, the Indian economy has also been impacted on global queues with the advanced estimate for the GTP growth for financial year ’25 being estimated at 6.4%, down from 8.2% achieved during financial year ’24. The Reserve Bank of India has reduced its repo rate by 25 basis-points to 6.25%, marking the first-rate cut in nearly five years. This decision aims to stimulate economy — economic growth amid easing inflation, which is approaching the RBI’s target of 4%, the RBI anticipate a growth rate of 6.7% in the fiscal year 2025-’26, slightly higher than 6.4% estimated for the current fiscal year. India is however, facing much better than its counterpart by strengthening of policy framework and increasing demand. The World Bank load that India’s service export have remained robust and the current account deficit is narrowing, indicating a strong external economic position.
The economy — Indian economy has countered the forces of inflation better than the other economies, thereby maintaining relative stability in the domestic market. Despite the projection for GDP growth rate is near-future is coming down in the range of 6.5% to 6.7%, India continues to maintain its position as one of the fastest-growing among the major economies.
Now let me talk about the Indian steel industry. Indian steel industry is experiencing significant growth driven by robust domestic demand and strategic investment. Despite all challenges, including the softening of the steel prices, Indian steel industry has consistently been growing in terms of production as well as consumption.
During financial year ’25, that is till January ’25, crude steel production has grown by 4.5% over CPLY. At the same time, Finnish steel consumption has grown by 10.8% during the period over CPLY. As per the Steel association, India has emerged as the strongest driver of demand for steel since 2021. The projected and projected to grow at more than 8% during ’24 and ’25. Indian steel demand will continue to charge ahead driven by continued economy — continued growth in all steel using sector and especially by continued strong growth in infrastructure investment. The top-line and the bottom-line for Indian producer have been impacted as the prices declined consistently. We are hopeful that the prices have bottomed-out and considering that we are now in the 4th-quarter, which is traditionally the strongest for the steel industry, the industry is hopeful for better result in the coming quarter. With the prices of imported coal also remaining in check, plant index for hard coking coal of Australian origin stand at USD188 per ton.
The industry can also have a sigh of relief on the cost front. The Indian steel industry is poised to continued growth supported by strong domestic demand, strategic investment, however, addressing challenges such as import competition and environmental sustainability will be crucial for maintaining this positive trajectory. As far your company performance is concerned, in the Nine-Month period, coming to the performance of the company, the performance of the company during this nine-month period stand as below. The crude steel production at 14.1 mt is stood at similar level as compared to CPLY when it was 14.2 mt.
At the same time, saleable steel sales volume was at 12.54 mt was also in the similar range of the CPLY, which was 12.46 MT. The performance by the CMO that is the central marketing organization in the domestic market has been higher by 1.8% over CPLY, while the sales by the plant have also grown by 25.8% during the period over CPLY. The export, however, has come down by 73.7% over CPLY. While the NSR declining by more than 6.5%, the turnover fell by 5.5% over CPLY and stands at INR72,595 crores. On the profitability front, the company registered an EBITDA of INR7,983 crores, profit before-tax of INR1,445 crores and PAT of INR970 crore. With the concern of rising borrowing, we are happy to share that the borrowing during the quarter had been reduced by INR1,700 crores. Borrowing at the end of Q3 of financial year ’25 stood at INR33,907 crores as compared to INR35,596 crore in Q2 of financial year ’25. The borrowing as on-date stand at INR32,600 crore as against INR30,593 crores, which was at 31st March 2024.
As far as the sustenance and operational efficiency is concerned, in the area of operational efficiency, the company has been making steady progress for reducing coal consumption, increasing the uses of CDI, bringing down the specific energy consumption and improving the blast furnace productivity. Sale is undertaking various drive towards decarbonization in three phases with the first phase having brought down the specific CO2 emission by almost 20%, the company is now gearing up to bring it down further by 12% to 2.19 tonne per tonne of crude steel by 2030-31. Plant and units have entered into a number of MUs with the renowned suppliers, technology provider, et-cetera, towards decarbonization drive.
Continuing with the drive towards improving the product mix, the proportion of semis in the steel production stood at less than 14%. By engaging conversion services in and around the plant or demand sector, the percentage share of in sales has been even lower at 8%. Steps are being taken are being in for further reduction in the proportion of semis in the product mix under the next phase of expansion.
Going-forward, the boost from the various measures announced by the Government of India in the recent union budget like INR1.5 lakh crore outlay in the infrastructure, extension of mission up to 2028, incentivization of power sector reform, creation of INR1 lakh crore Urban Challenge fund, creation of Maritime development fund of INR25,000 crores, et-cetera augurs well for steel demand in the country. We are hopeful of realizations and consequent margin will improve for the company in the quarter to come as the overall outlook positive for sustained growth in the domestic consumption.
With this word, I hand it back to Mr Riwal for opening of the Q&A session. I’m sure you all have lots of queries on our performance. Thank you, Mr. Over to you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ritesh Shah from Investec. Please go-ahead.
Ritesh Shah
Yeah, hi, sir. Thanks for the opportunity. Sir, my first question is, what should we make of governments thinking of potential safeguard duties, import duties? We have heard a lot about it, but nothing has happened as yet. So how are you looking at it? That’s the first question. The second question is on the cascading royalty. I think Supreme Court had given a deadline of 7th of Jan, it got pushed out to 7th of Feb. Is there specific update over there? That’s the second question. And the third question, sir, if you could give your thoughts on Karnataka proposed taxes on which way it can actually go-forward or can the center curb or put a tap on the extent of levies that the state government can potentially propose. So those are the three questions. Thank you.
Praveen Nigam
As our safeguard duty is concerned, as you are aware that we have given all our input to the ministry, whatever was required and there was a demand of 25% of the civil duty. The issue is still pending with the finance ministry. We are also waiting for the outcome of the decision of the finance ministry. As of now, there, there is no such communication from us — from our ministry to us, which we can share. The only thing we can share is that we have given all the input which are required and now we are waiting for the decision of the ministry.
As far as the royalty is concerned, that is based on the Supreme Court decision, we have our mines at three locations,, and Ohisha. In Jaharkand, they have already levered excess of INR100 per ton on the mineral. USA and Satis have not yet come out with any such a proposition. We are waiting the movement something comes from the government, we will be in a position to update you. As far as Karnataka is concerned, we do not have any operation in Karnataka or any mines in Karnataka, so that is not going to have any impact as far as sale is concerned.
Ritesh Shah
Sure. That’s helpful. And sir, just book quick and bookkeeping question. Sir, how did the flats and the long prices move from Q2 to Q3? And if you could highlight with the current spot prices also, that would be quite useful. Thank you.
Praveen Nigam
Yeah. As the — you see, as the long is concerned from Q2 to Q3, Q2 it was around INR52,000, which has increased in the Q3 as far as long is concerned, 53,400. You can say roughly INR1,300 has increased as long is concerned from quarter two to quarter three. Our flat has also was 49,000, which has come down to INR46,800. You can say roughly — roughly INR2,000 per ton the prices have gone now. Overall, if you see that both flat and long, so in Q2, it was around 50,500, which has come down to 49,700 or you can say roughly 800. So there has been some decline because of the stress in the flat market.
And as far as the future is concerned, yes, we have a positive indication for the market. We are expecting that the prices will increase in the coming months. Exact price we cannot declare right now because this is still in the consideration. But yes, there are a positive sentiment in the market for both — particularly for the flag.
Ritesh Shah
Sure. Thank you so much. I’ll join back the queue.
Operator
Thank you. The next question is from the line of Amit Dixit from ICICI Securities. Please go-ahead.
Amit Dixit
Yeah, hi. Good morning, everyone, and thanks for the opportunity. Congratulations for good performance in a very challenging quarter. Sir, just three questions, if I may from my side. The first one is on the sales volume growth, which we saw at 16-odd percent Y-o-Y in this quarter. Now this quarter, I understand was a period of very tepid consumption at least in December and none of your peers have shown this kind of growth. So just wanted to understand the specific areas where we saw the demand in this particular quarter.
Praveen Nigam
You are talking in terms of volume.
Amit Dixit
Volume, yes, volume, sales volume.
Praveen Nigam
Okay. Carry-on what is your next question.
Amit Dixit
The next question is essentially, if I look at your plant-wise EBIT, so Kela has turned around very well in this quarter. And, if I exclude the rail price revision adjustment in last quarter has also improved turn-around. So just wanted to understand the drivers for that. The third one is on coal costs. If you could just let us know the coal cost that was there last quarter and what you see it going-in this quarter. These are the three questions from my side.
Praveen Nigam
Okay. So I will start with your last question first. That is the coal cost. The coal cost, if you say that I will talk about the blend cost. The blend cost in last quarter was around INR20,600, which has come down to INR90,200. So you can say overall there has been reduction as the coal cost is concerned. That is mainly because of the reduction in the coal prices as far as the imported coal is concerned. Your second — what was the second question?. Yeah. As far the performance is concerned, as you talked about Bilai and also. There have been consistent improvement as far as the technoconomic parameters are concerned.
Apart from that we have got as you know that referring the input prices and input prices basically has led other than the technoconomic parameters for improvement in the performance. And your first question was regarding sales volume growth. Yes, I think. So just a minute. So last year in Q3, our total sales was 3.81 million ton, which has increased to 4.43 million ton in this particular quarter. So there has been an increase in the volume. That is why the performance has improved. And if you compare with the Q2 also, then also there has been a growth because in the Q2, it was 4.10 million tonnes and in the Q3 of financial year ’24-’25, it is 4.143. We have also said in our opening remarks that the total improvement was around 16.3% as far the volume is concerned.
Amit Dixit
No, sir. Wanted to understand the drivers behind that because we have not seen this kind of growth in your peer company in this quarter. Which area of which sector did you see this demand traction?
Praveen Nigam
So mainly, mainly the — mainly the increase in the consumer sector, that is infrastructure where the increase has happened. In fact, if you see that in the last quarter, there was — the sales was on the lower side, which actually is now has increased, substantial increase and the main is this consumer sector.
Amit Dixit
Okay. And just you know, an offshoot of my on coal. How is the coal cost expected to move-in this quarter, Q4?
Praveen Nigam
Coal cost in Q4 is expected to come down further because the imported coal price have further can come down. I expected is that the imported coal will come down to around INR18,700 crores are roughly INR19,000 you can say. So there will be further repace where the coal prices are concerned.
Amit Dixit
So you mentioned INR19,200 as coal cost in this quarter and you are saying that
Praveen Nigam
INR19,200 was the planned cost. Now if we say specific to imported coal, so imported coal price in Q3 was INR20,000, which we are expecting will come down by another INR1,000 in Q4.
Amit Dixit
Okay. So on blended basis, we can expect another INR1,000 rupees or not clear up 3,000, yes, of INR3,000. Okay. Got it, sir. Thank you so much.
Operator
Thank you. The next question is from the line of Sumangal from Kotak Securities. Please go-ahead.
Sumangal Nevatia
Hi, yeah. Thank you for the chance. First question is on the prices. So you mentioned average was around 4900 in 3Q. Can you share January what was the average price or blended price for us.
Praveen Nigam
Average blended price in January is hovering in the range of INR48,000, you can say INR500, INR400 — 40,400 to INR500, 48,400 you can say. Okay. So blended, okay. So it is around INR1,200 down versus 3Q average, right? Yeah.
Amit Dixit
Understood. Understood. Sir, next question is on the capex. So we were evaluating — so first, can you share what is the Nine-Month capex, full-year guidance for this year and FY ’26.
Praveen Nigam
Yeah, Nine-Month capex is around INR3,900 crore. As far the expansion is concerned, as we have told in the last con-call that Stage 1 approval for the Exco steel Fund was given by the Board. The process is on for forming out of this order. Bokaro and at Gurgapur Stage 1 approval has also been given by the Board. So now for three that is, and Durgapur, we are in the process of firming up the cost. When the cost is finalized, we will go for the Stage 2 approval.
Sumangal Nevatia
Understood. And sir, in the absence of — while we are working on this, what could be the capex for FY ’26 because this we believe will be more from FY ’27 onwards, right? Yes, it will be in the range of INR7,500 roughly you can say because the expansion capex will also start happening in FY ’26. Okay. And so these three plants put together what is the capacity we are looking to add?
Praveen Nigam
The total capacity it will be roughly 7.5 million ton all the three pipe plants together. Okay and sir, can you give us some rough gross CapEx this 7 million, 8 million tons expansion will take? Could it be around 50 crore INR60,000 crores?
Sumangal Nevatia
Okay and sir, can you give us some rough gross CapEx this 7 million, 8 million tons expansion will take? Could it be around 50 crore INR60,000 crores?
Praveen Nigam
It will be in the range of around INR55,000 crores to INR56,000 crore.
Sumangal Nevatia
Okay. Okay. And spread across how many years?
Praveen Nigam
This is — this plan is for 30 31 as we said in the previous con-call also that our expansion which is going to come across sale, it will be happening by 31?
Sumangal Nevatia
Okay. Okay. But sir, that we believe was for 15 million tons, right? I mean, this is only 7.5 tons,
Praveen Nigam
15 million tonnes we are going for the phase-wise expansion in the — in this Phase-3 plant have already got the Stage 1 approval, we will — we are in the process of getting the Stage 1 approval of the 2 plant also and the total expansion what we are expecting by 3031 is 50 million ton. So you can say this also will come that the production of the facility will become operational and ramped-up by 30-30, what?
Sumangal Nevatia
Understood. That’s very clear. Sir, one question on the overall net-debt. Net-debt, so we were guiding for around INR5,000 crore INR6,000 crores of reduction this year, I think we started the year with INR30,000 crore net-debt. So can we kind of share the latest thoughts on debt reduction by say 4th-quarter end?
Praveen Nigam
As I told in my opening remarks also that as of now, the total debt is around INR32,600, which is slightly higher than what was — it was in 31st March 2024, it was around INR30,500.
In last con-call, we said the same thing that we are planning to reduce our debt and bring down to the level of 31st March 2024. As you have said that in the Q2, our total debt was around INR35,000, which has already come down to 32,600 label and we are expecting that by the end of this particular financial year, our debt will be in the similar range as it was in 31st March 2024.
Sumangal Nevatia
Understood. Understood. And lastly, sir, any guidance on the volume front for this year and next year?
Praveen Nigam
For next year, we are still in the process of finalizing our business plan. We cannot exactly comment. But this time it is around 18,500 million tonne, 18.5 million ton as of this excluding steel. Crude steel.
Sumangal Nevatia
Yeah, 18.5 million tonne food is steel. Understood. Okay. Thank you so much. All the best, sir. Thank you.
Operator
The next question is from the line of Mohit Bansali from Ariant Group. Please go-ahead.
Unidentified Participant
Yeah, thanks for the opportunity. I want to know what is the current inventory and what is the value of that inventory?
Praveen Nigam
Yes, just a minute yeah, so total inventory of finish and semi-finish is 2.98 million tonne and the value of this is around 12 13,000 crores.
Unidentified Participant
Okay, sir. Sir, second question, Meera Abshe regarding expansion or capex, since you are going for a very huge capex, I just want to understand what is the debt peak debt level sale wants to maintain because already the debt is increasing without expansion since last two years, your debt was around INR13,000 at the end of March ’22, as I see in the presentation, now it has gone up to around INR30,000 to 33,000. So without any major significant expansion, your debt is going up. So when you go through this capex further, you will take the debt from the bank. That is what I suppose. So what you — do you have any picture about what is the peak level of that really thinking about?
Praveen Nigam
First of all, let me answer that your that the debt has increased. You see the debt increase was because of the increase in the — and not the imported price which has pulled on substantially. So going-forward, you can see there has been a consistent reduction as far as the debt is concerned without any expansion. Which was in the range of INR35,000 in the month of September has already come down to INR32,600. And as we told that it will further come down by the end of this financial year and we will maintaining a level of at least the debt level of 31st March 2024, if not less. As far as the expansion is concerned, we are expecting that the peak debt would be in the range of — our projection is that it should remain one is to one. But at the peak, sometime it might go up to 1.2, but not beyond that, whatever the projection we have made.
Unidentified Participant
Okay, sir. So just sir, expansion, don’t you think that first of all, you should control your cost like your employee cost, your operational cost, even your natural realization is not good as compared to private players. So don’t you think that first you should improve overall your own performance because right now your capacity is around 20 million crude steel that you are not able to produce because market is not that favorable. So don’t you think, first of all, you should improve all your parameters and then you should go and generate some cash, good cash and then you should go for the expenses, sir.
Praveen Nigam
As you see, one of the investor has asked a query what was the reason for our better performance as compared to what we are in the previous question. We said that we are in the process of improving our parameters as there has been substantial improvement, so that result will come as far as the cost is concerned, the cost will further come down and will give benefit to us. Now it’s a continuous process. It’s not that key, first, we have to do this and then we go for the expansion. We are continuously focusing on improving our performance as the cost is concerned, improving our product mix, which will ultimately give benefit as far as the cash realization is concerned. We are expecting that going-forward, the NSR will also strengthen because we are expecting that will be some relief from the government as far as safeguard duty is concerned and the coal prices which are continuously coming down and maintaining a level of $188 to $190 per ton. So this all will give in generation of additional cash. So we will be in a position to maintain a debt-equity ratio of one is to one on an overall basis. And I think debt-equity ratio of one is to one with the expansion of 15 million ton is a good — quite a good proposition.
Unidentified Participant
Okay, sir. Got it. Got it. Sir, third question is around for your rail prices. So are we going to get revised rail prices next year? What is the current rail price you are getting from the railways?
Praveen Nigam
You see price probably would not be very good in this forum, we will give you offline. We have got the rail price for ’22 ’23 from the CA cost as of ’23, ’24 commission to the CA cost as you are aware that for rail price railway has given this responsibility to achieve advisor cost. It is a Department of in the Ministry of Finance and they give the fair-value — fair-value of the particular product. For ’23, ’24, we are in the process of finalizing a price. It has not yet come and we are expecting that soon it will come and will give benefit to us.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants. Please limit your question to two per participant. If you have a follow-up question, I would request you to rejoin the queue. The next question is from the line of Pallav Agriwal from Antique Stock Broking. Please go-ahead.
Pallav Agarwal
Yeah. Good afternoon, sir. So first question.
Operator
Sorry to interrupt, sir. I would request you to please use your handset.
Pallav Agarwal
Yeah, I’m using the handset. Am I audible now?
Operator
Yes. I would request to speak a little louder.
Pallav Agarwal
Sure. So sir, first question was on the coking coal. So with imported coking coal prices coming down, is there an indexation for domestic coal as well or domestic coal prices stay the same despite imported coking coal prices coming up?
Praveen Nigam
Yeah actually these domestic coal prices have import parity with capping both upper and lower capping. So there is a parity with the imported coal. So naturally when there is a parity, so there will be some reduction in the domestic coal price also.
Pallav Agarwal
Okay, but may not be in the same proportion as a fallen
Praveen Nigam
Because there is upper capping, a lower capping involved, so they may not be in the same proportion, but yes, reduction would be there.
Pallav Agarwal
Okay, sir. And what would be the proportion? Is it 85%, 15% between mix between domestic and imported?
Praveen Nigam
No, in domestic, yes, we are using a blend of, you can say almost 85% of the imported coal and 15% of the domestic coal, sale as a whole.
Pallav Agarwal
Okay. And are we still — do we purchase any coke externally or most of it is captive coke?
Praveen Nigam
No, no, it is captive — we are producing, we are not procuring. There could be one-off cases when we might have procured, but otherwise, no, as a policy, we are not procuring.
Pallav Agarwal
Sure, sir. Okay. And I just missed the capex number that you mentioned for nine months FY ’25 and the FY ’25 guidance, if you could just
Praveen Nigam
Why said that it was INR3,900 crore in this particular financial year till December.
Pallav Agarwal
Okay. And FY ’25
Praveen Nigam
Next year that is FY ’26, expected is 7,500.
Pallav Agarwal
Nice, sir. Yeah. Thank you.
Operator
Thank you. The next question is from the line of Pratam Roy from B&K Securities. Please go-ahead.
Pratim Roy
Hi, sir. Thank you for the opportunity. I missed on the single question that you mentioned that the 15 million capacity it will come into the play. And what will be the timeline for that you mentioned in FY 31. And if you give me the detailed breakup of 15 million ton? And secondly, how much cost will be incurred on that basis? And if debt goes up, then how much — I mean, sorry, if the capex will go up, then how much will be funded through internal — internal cash and how much will be the debt portion on that? Thank you, sir.
Praveen Nigam
Yeah. As we said that our total expansion by 30 31 is 50 million ton, out of which around 7 million tons has already been got the first stage expansion in Bokaro,, here, Isco, and and for this and this Bilai steel plant, we are still in the process of getting this first approval. We do not exactly tell the quantity of quantum which is in these two plants, but roughly it will be in the range of, say, alkalite will be around 3.5 million tonne additional and rest will be in-line. Durgapur. Others will be in Durgapur, okay. In the second phase.
Pratim Roy
Okay, sir. And what is the capex of 10 to 15 million ton expansion?
Praveen Nigam
Around — roughly if you say some rule figure that it would be in the range of INR1,10,000 to 120,000 crores of 15 million ton.
Pratim Roy
Okay. And you funded the internal is concerned, just funding — funding is concerned, we are maintaining one is to one that is debt-equity ratio should be one is to one. Thank you, sir.
Operator
Thank you. The next question is from the line of from Capital. Please go-ahead.
Tushar Chaudhari
Yeah, good afternoon, sir. Thanks for the question and thanks for the opportunity. Sir, we had in earlier con-calls once we had discussed in 1Q FY ’25 that we had few long-term agreements for coking coal with few of the coal miners. I just wanted to know, are they over and when will we get the benefit of lower cooking coal over the period? Can the imported coal cost go down to INR16,000 INR17,000 per ton in the next few quarters.
Praveen Nigam
Yes, as we said in our previous con-call also the long-term context what we are having is a continuous process and it will keep happening, it will keep moving in the same similar fashion. So there is no issue as the quantity is concerned for the core minus is concerned.
Tushar Chaudhari
So now with the lower prices also we will be doing long-term agreements with them, right?
Praveen Nigam
Actually, you see, you see, we have a long-term context, but the prices are determined by the flat and August index, average of flat and August index, the discounts are given based on that on the monthly basis. So there is no share the prices is concerned. The moment this index comes down, the prices will come down automatically. And secondly, sir, in this result, do we have any one-off item in other expenses? Because if I do it on per ton basis, it is quite low. And can you repeat your question?
Tushar Chaudhari
Is there any one-off item in lower other expenses? Basically other expenses is lower vis-a-vis prior quarters on per ton basis. Per ton basis was around INR16,000.
Praveen Nigam
No, no, no, no. There is no specific hit under the other, which we can mention here. It’s a general improvement you can say in all the heads.
Tushar Chaudhari
Great. Great. Thanks a lot. Best of luck, sir.
Operator
Thank you. The next question is from the line of Vikas Singh from PhillipCapital. Please go-ahead.
Vikash Singh
Good afternoon, sir, and thank you for the opportunity. Sir, just wanted to understand one thing in out of all our plants, has the largest component. So what are the basically any downstream project which we are taking to bring down this content if you could give us some insight into it?
Praveen Nigam
Yes, we have a plan to bring down a this TMT mill there, 1 million tonne TMT mill and also on boo basis 0.4 million ton TMT mill. So the plan is to utilize the semis as much as possible internally. So by when these PMT news are supposed to come, the process is all, I think how much is one. That stage where the pool has already been received, we are in the process of, as I told the forming of the cost and after that it will take how much time will take around 36 months. So you can say roughly it will take another three to four years. So till then this component will continue as it is, right? No, as we said in our opening remarks that we are in the process of tying up with the conversion and our in the sales have come off substantially. So we are continuing in that process. We’ll further increase our conversion agreement with the various parties. The efforts are already on to reduce the same portion as far as the saliv steel is concerned.
Vikash Singh
Understood. And sir, just couple of calls back, you have given us some insight into our low-grade iron-ore as well as pallet plant or capacity to utilize this low-grade further. So any further update on the same what is happening in the whether we got the approval and how our pellet plants are — when our pellet plants are coming up so that we can utilize Goa which is not underutilized as of now?
Praveen Nigam
The asset of Goa iron-ore is concerned, that is subgrade iron-ore 5 which is lying here. For conversion of that into the pelletization, we are yet to get this first stage approval of the Board. We are in the process of forming up the Board note and it will be put to the Board and once approval is given, we’ll go-ahead. But the plan is there to convert it to pellet.
Operator
Does that answer your question?
Vikash Singh
Mostly. Sir, any near-term plan to sell IMO as well because we still have a permission in Udissa and?
Praveen Nigam
We have a permission in Odisha and-or there we are selling also in, we are yet to get that local approval from the state government. If we get the approval from the state government, which we are pursuing with the government, we will sell also. There is no such thing that we cannot sell. But till the time we get the approval, we have to use it domestically, internally only.
Operator
Thank you. The next question is from the line of Rashi Chopra from Citigroup. Please go-ahead.
Raashi Chopra
Thank you. Just some keeping questions. What is the current NSR for flats and long separately.
Praveen Nigam
Current NSR as you mean to say Q3?
Raashi Chopra
No, no as currently you give us the blended for January was 48 croress.
Praveen Nigam
Okay. For January, the NSR in the long was INR51,500 and this flat was 45,800 and branded was 48,400.
Raashi Chopra
Got it. FY ’25, what is the capex target as in what is the remaining for the 4th-quarter?
Praveen Nigam
FY ’25, our total capex target was INR5,700, out of which INR3,900 we have already incurred by December. So remaining you can say INR1,800 in the next three months, that is general probably March.
Raashi Chopra
Got it. And then in the — and what is the total — you’ve given us a crude steel target for the year, but sales volume-wise, how much have you done in January? And what is the target for the full-year?
Praveen Nigam
Up to January, we have achieved the sales target of 1.57 million ton and our total target how much it is?
Unidentified Speaker
17.57
Praveen Nigam
Around 17.5 INR17.5 million for the whole year.
Raashi Chopra
Got it. And just last question from me. You gave the total inventory for semi-finished and finished 2.98, what is the finished good amount in this Finnish good days 1.79 million ton and this was 1.93 as of September, right?
Praveen Nigam
Yes, it was 1.93 number, yes.
Raashi Chopra
Thank you very much.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Praveen Nigam
Thank you very much. My comments are the fork of the Indian economy by various agencies have been quite encouraging and the support by the government is strengthening the belief that the economy will continue to do well. You steel demand also continues to crossber and we are hopeful that the price will remain — will maintain the momentum that has been — has been gained post-monsoon. Apart from the improvement in the operational performance, the company also remained committed towards sustainable performance, including emphasis on the decarbonization, improving capacity utilization, value addition and achieving cost competitiveness.
I thank all the investors for their reposing faith in us and I am hopeful that the same will continue in the future as well. Thank you.
Operator
On behalf of Nuvama Wealth Management Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.