20 December 2019 With restarting of the cost-efficient DRI plant (using coke oven gas), total metallic availability would increase to ~13,000tpd from Jan20 (from 10,000tpd currently), implying that annual steel production of ~4mnt would be achievable at Angul at a competitive cost. We, therefore, increase our FY21 standalone steel sales volume estimate to 6.2mnt, implying a 10% CAGR in FY19-21E. Lower raw material cost led by decline in coking coal and iron ore costs should partially offset the decline in steel prices seen in the past six months. JSP's power business remains highly underutilized with PLF hovering around 35%. JSP is well placed to secure PPAs as this plays out, which should boost its free cash flows. We expect JSP to generate significant consolidated free cash flow (as major capital expenditure is now behind), which will help reduce leverage INR365b net debt as of Sep19 with ~5x net debt/ EBITDA.