Highlights of the call

As per the management, there was hardly any impact of Ind AS on the financials of the company.

The company received higher tax benefits in June'16 quarter, due to the commencement of wind power project which will continue for years to come.

Coal prices are moving up internationally from Feb'16 onwards. This is positive news for lignite which will help in higher volumes going forward.

As per the management, there are no plans to increase lignite prices. The company will play only on gaining more volumes and market share.

Management expects an increase in volumes and off takes of lignite, due to increase in coal prices internationally, as it's making lignite more competitive and some demand of coal will switch to lignite.

Also the company has already mines of lignite, which are covered with lime stones. It is in discussion with cement companies who will use these lime stones which come out while mining the lignite.

The company already has received 3 Mines under its belt from Gujarat Government, which will be approved for environmental clearances and other clearances going forward. Production will come after 3 years from these mines.

GIPCL is taking around 8-10 lakh MT of lignite every year from Tadkeshwar mines of the company. With Bhavnagar electricity board, started to buy electricity from GIPCL post its commissioning of the new generation capacity, this will result in higher use of lignte from GIPCL in FY'17. Management expects around addition of 3 lakh MT of lignite offtake from GIPCL every year due to this new generation plant.

The company is already generating a higher ROE as against an approved ROE of cost plus 15% post tax margin due to higher efficiency and other internal cost management measures.

The regulations remain same for lignite and imported coal. Small customers don't go for imported coal. Imported coal is good when u have automation

Management expects around 8-10% higher volumes of lignite on YoY basis for FY'17 which means production of around 75 lakh tons of lignite. Earning growth will come only from volumes.

The overall slowdown in economy and reduction in imported coal price in FY'16 had affected the demand of lignite. While increase in imported coal prices are helping the company, any improvement in the economy, can result in higher volumes going forward.

The company did receive benefits of lower overhead costs from Panandhro mines in June'16 quarter, as the mine is nearly exhausted and no operations were made in this quarter.

The company has entered into a JV with Nalco for deep project in bauxite. The company has 80 million tons of bauxite reserve.

The company is also looking at new business opportunities and will try to capitalize on it.