I have same question.
As per the details provided in the con call
Average price of ammonia $380 to 390 (avg 385)
Logistics cost $80 to 90
Total landing cost $450 to 470 (avg 460)
Cost of gas for manufacturing $220 to 240
Other conversion costs $40 to 45
Total cost $260 to 280
EBITDA benefit including adv of logistics cost 160 to 200 (avg 180)
EBITDA benefit excluding logistics coat 80 to 120 ( avg 100)
Total capacity of the plant 510KTPA
Cost benefit including logistics (Revenue+Logistics) = 510 x 460 = 235 million $ = 1650cr
Cost benefit excluding logistics (Revenue) = 510 x 385 = 196 million $ = 1375cr
EBITDA benefit including adv of logistics cost = 510 x 180 = 92 million $ = 645cr
EBITDA benefit excluding adv of logistics cost = 510 x 100 = 51 million $ = 360cr
Now what is the total ammonia project cost? I think 4000cr is too high.
lets consider 3000cr (i will updated calculation later with actual cost ) and I am not considering working capital requirement as plant is mostly for captive use.
Asset turn = 0.55x (0.46x)
Total Pre tax ROCE = 645 / 3000cr = 21.5% (360/3000=12%)
So the conclusion is this project can generate 12% return if all ammonia sold to others. (substantial working capital will drag this number to further down) and 21% if used for captive consumption