Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q2 FY22 Earnings Presentation
39 slides from Godawari Power & Ispat's earnings presentation, Oct 30, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation Q2FY22
GODAWARI POWER & ISPAT REF: GPILINSE & BSE/2021/4571 Date: 30.10.2021 To, 1. The Listing Department, 2. The Corporate Relation Department, The National Stock Exchange of India Ltd, The BSE Limited, Exchange Plaza, Bandra Kurla Complex, First Floor, Rotunda Building, Bandra (E), Murnbai - 400051 Dala
Slide 2: Q2 FY22 Investor Presentation
Q2 FY22 Investor Presentation 30th October’2021
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Godawari Power and Ispat Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, a
Slide 4: Updates during the quarter
Updates during the quarter The scheme of arrangement with Jagdamba power & alloys withdrawn due to difference in valuation- The existing arrangement for supply of power from JPAL will continue till an alternative agreement is finalized. Proposed scheme of divesting stake in GGEL stands withdrawn– GG
Slide 5: Delivering on Strategy 2.0
Delivering on Strategy 2.0 Transitioning to a Fully Integrated Primary Producer Objective Action Taken Current Status o Land identification done o Signed an MoU with Chhattisgarh o Capex and technology details being o Transitioning to a fully finalised Government to set up a 1.5 -2.0 integrated stee
Slide 6: Solar PV Project: Update
Solar PV Project: Update o Due to change in regulation of captive solar projects by state CERC, the size of the solar PV plant is reduced from 250 MW to 100 MW; The solar PV capex stands reduced from Rs.750 Cr. to Rs.325 Cr. Project locations changed in view of cost benefit. o The 100 MW Capacity wi
Slide 7: Near Term Growth Triggers; Low-cost capacity Expansion
Near Term Growth Triggers; Low-cost capacity Expansion Particulars Capacity FY21 Capex Capacity FY22 Current Status Mining production ramp-up in 2nd half. Beneficiation plant at mine to commission in Iron Ore Mining 2.1 mt INR 1250 Mn* 3.0 mtpa H2FY23. Capex increased on account of setting up benefi
Slide 8: Q2 FY22: Operating and Financial Performance
Q2 FY22: Operating and Financial Performance Operating Performance Financial Performance (Consolidated) Iron Ore production 462 kmt, up 10% EBITDA up 86% YoY at INR 436.4 crore YoY M.S. Round/TMT Bar sales vol 58.9 kmt, PBT up 154% YoY at INR 394.9 crore up 64% YoY Iron ore pellet-GPIL realisation I
Slide 9: Q2FY22: Consolidated Financial & Operating Performance
Q2FY22: Consolidated Financial & Operating Performance Financial Performance (in Mn) Sales EBITDA PAT Credit Rating 9,668 A+/STABLE 2,345 12,744 1,041 (by CRISIL) 2,967 4,364 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Production Summary (MT) Iron Ore Production Pellet (GPIL) Sponge Iron Silico Mangan
Slide 10: Consolidated debt substantially reduced
Consolidated debt substantially reduced. Standalone debt zero, as on date: Gross Debt (INR Mn) 22145 21237 18856 16967 9441 4400 3268 FY17 FY18 FY19 FY20 FY21 Q1FY22 Q2FY22 consolidated 9
Slide 11: Godawari Green Energy Ltd. - Financial Performance
Godawari Green Energy Ltd. - Financial Performance All figures in INR Mn Particulars Q2FY22 Q2FY21 YoY % Q1FY22 QoQ% H1FY22 H1FY21 FY21 Net Sales 245.80 271.20 -9% 335.60 -27% 581.40 638.00 1,142.70 Total Expenses 47.70 57.00 -16% 42.30 13% 90.00 109.10 223.80 Other Income 36.70 1.80 1939% 1.40 2521
Slide 12: Hira Ferro Alloys Limited – Financial Performance
Hira Ferro Alloys Limited – Financial Performance All figures in INR Mn Particulars Q2FY22 Q2FY21 YoY % Q1FY22 QoQ% H1FY22 H1FY21 FY21 Net Sales 1,385 712 95% 1,165 19% 2,551 1,352 3,145 Total Expenses 910 644 41% 883 3% 1,793 1,224 2,833 Other Income 31 3 833% 9 261% 39 7 25 EBIDTA 475 68 601% 282
Slide 13: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q2FY22 Q2FY21 YoY % Q1FY22 QoQ% H1FY22 H1FY21 FY21 Net Sales 12,467 8,765 42% 11,262 11% 23,729 14,504 36,409 Total Expenses 8,311 6,765 23% 5,531 50% 13,842 11,542 25,969 Other Income 25 5 404% 9 180% 34 14 52 EBIDTA 4,156 1,999 108%
Slide 14: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q2FY22 Q2FY21 YoY % Q1FY22 QoQ% H1FY22 H1FY21 FY21 Net Sales 12,744 9,668 32% 11,597 10% 24,341 16,780 40,719 Total Expenses 8,380 7,323 14% 5,573 50% 13,953 12,857 28,430 Other Income 27 7 282% 11 143% 38 18 40 EBIDTA 4,364 2,345 8
Slide 15: Q2FY22 Production Summary
Q2FY22 Production Summary Description of Goods M.T./ KWH Q2FY22 Q2FY21 YoY (%) Q1FY22 QoQ (%) H1FY22 H1FY21 FY21 Iron ore Mining M.T.s 462,836 419,657 10% 559,070 -17% 1,021,906 741,465 1,699,920 Iron ore Pellets - GPIL M.T.s 552,050 617,300 -11% 602,850 -8% 1,154,900 1,081,450 2,256,550 Iron Ore Pe
Slide 16: Q2FY22 Sales Volume Summary
Q2FY22 Sales Volume Summary Description of Goods M.T./ KWH Q2FY22 Q2FY21 YoY (%) Q1FY22 QoQ (%) H1FY22 H1FY21 FY21 Iron Ore Pellet - GPIL M.T.s 340,192 424,494 -20% 388,937 -13% 729,129 804,795 1,607,881 Iron Ore Pellet - ASL M.T.s 217,959 109,967 98% 185,776 17% 403,735 290,133 689,882 Sponge Iron
Slide 17: Q2FY22 Realisation Summary
Q2FY22 Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods INR per Unit Q2FY22 Q2FY21 YoY% Q1FY22 QoQ% H1FY22 H1FY21 FY21 Iron Ore Pellet - GPIL INR/M.T.s 12,896 7,059 83% 13,942 -8% 13,454 6,617 8,607 Iron Ore Pellet - ASL INR/M.T.s 12,474 5,817 114
Slide 18: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Mn Particulars 30.09.2021 31.03.2021 Particulars 30.09.2021 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 19,641.10 19,198.50 (a) Equity share capital 329.10 341.10 (b) Capital work-in-progres
Slide 19: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Mn Particulars 30.09.2021 31.03.2021 Particulars 30.09.2021 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 12,781.00 13,134.50 (a) Equity share capital 341.10 341.10 (b) Capital work-in-progress
Slide 20: Captive Mining Provides Strategic Edge
Captive Mining Provides Strategic Edge 10,500 8500 6,800 4,346 4,270 3,500 3,200 3,000 2,750 3,150 2,600 2,740 2,310 2,462 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Q2FY22 Market Price of Iron Ore Captive Ore Landed Cost 19
Slide 21: Strong focus on Sustainability – Strengthening the ESG Framework
Strong focus on Sustainability – Strengthening the ESG Framework Aligned with United Nations’ 10 principles for manufacturing responsibility and environmental sustainability Environment Responsibility Social Responsibility Governance Framework o Investing in environmentally o Strong community o Stra
Slide 22: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Iron ore prices have fallen from peak of US$ 233/t to US$ 122/t. This sharp fall has been driven by steep cut in steel production by China. Once the production normalises post winter, iron ore prices should come up. o Pellet prices have also
Slide 23: Building a Strong Organisation
Building a Strong Organisation Cash Flow from Operation Cash Flows from Operation Capex Free Cash Flows 9,826 5,498 5,508 4,511 7,772 1,063 1,657 716 2,145 827 1,732 515 146 FY17 FY18 815 FY19 FY20 FY 21 -3,161 Net Debt/EBITDA (x) Net Debt/Equity (x) 8.14 2.75 1.94 3.11 1.27 2.32 0.91 1.95 0.42 0.72
Slide 24: Appendix
GODAWARI POWER & ISPAT APPENDIX
Slide 25: Unique Presence Across Steel Value Chain
Unique Presence Across Steel Value Chain Asset Capacity FY21 Utilisation (%) Asset Capacity FY21 Utilisation (%) Iron Ore MS 0.4 mt Mining 3.0 mt 81% Rounds 65% Iron Ore 92% HB 0.15 mt 2.4 mt 96% Pellets Wires 65% Sponge 93% Ferro 16,500 mt 0.5 mt 99% Alloys Iron 86% 75% Steel Power 73 MW*; Billets
Slide 26: Hira Ferro Alloys Limited
Hira Ferro Alloys Limited o Hira Ferro Alloys ltd is a manufacturer of ferro alloys Products Capacity Ferro Alloys 61,500 TPA Captive Thermal Power 20 MW Bio Mass (IPP) 8.5 MW Wind Power (IPP) 1.5 MW Near Term Growth Triggers: o Asset optimisation: Production capacity increasing over last few quarte
Slide 27: Increased Captive Consumption Provides Significant Margin Expansion
Increased Captive Consumption Provides Significant Margin Expansion Significant captive mining capacity aid in lowering costs & improving margins Iron Ore Production (MT) Captive Mining Started • Increased captive mining to aid in lowering cost and improving margins. operations at Started Boria Tibu
Slide 28: Group Structure
Group Structure Associates JVs Godawari Power and Ispat Ltd. 37.85% 33.30% Ardent Steel Raipur Infrastructure Co 99.95% 100% Godawari Green Energy 25.93% Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 52.79% 33.96% 35.36% Jagdamba Power & Hira Ferro Alloys Ltd. Chhattisgarh Ispat Bhumi
Slide 29: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha Solar Thermal Power Plant Keonjhar: 0.8 mn MTPA Rajasthan: 50MW Siltara Integrated Plant Chhattisgarh 3.24 mn MTPA Iron ore beneficiation 2.4 mn MTPA Iron ore pellets 0.5 mn MTPA Sponge iron 0.4 mn MTPA Steel billets 0.2 mn MTPA Wire-Rod
Slide 30: Shareholding Pattern as on September 2021
Shareholding Pattern as on September 2021 Shareholding Pattern Break up of Shareholding Pattern Shareholding % of Total Sh. 32.50% Institution 1.92% Non Institution 30.57% Total 32.50% 67.50% Promoter Shareholding % of Total Sh. Pledge* 21.99% Total 67.50% Promoter Public * Pledged with lenders as a
Slide 31: Board of Directors
Board of Directors Mr. Shashi Kumar (Chairman & Mr BL Agarwal (Managing Independent Director) Director) 4+ decades of experience; B.Sc. In 1st generation entrepreneur with Mining Engineering; Advisor to almost 4 decades of experience; NTPC, IFFCO & Chhattisgarh Power Graduated as an electronic; star
Slide 32: Board of Directors
Board of Directors Mr. Vinod Pillai (Executive Mr. Dinesh Gandhi Director) (Non-Executive Director) 2 decades of experience in Sales, Administration, Liaison & Logistics; 3 decades of experience in Commerce graduate; plays vital role Accounts, Finance & Project in commissioning of new projects of Fi
Slide 33: GPIL Standalone – Past Operational Performance at a Glance
GPIL Standalone – Past Operational Performance at a Glance... Trend of Iron Ore Mining (mt) Trend of Pellet Production (mt) 1,547,384 1,699,920 1,933,250 2,256,550 1,579,693 1,657,629 1,495,100 1,999,150 1,841,050 1,175,090 1,532,200 1,580,850 693,612 657,328 902,550 444,695 619,620 326,358 FY 13 FY
Slide 34: GPIL Standalone – Past Operational Performance at a Glance
GPIL Standalone – Past Operational Performance at a Glance... Trend of Steel Production (mt) Trend of Slico Managanese (mt) 344,610 13,772 350,865 13,700 13,136 14,178 298,418 11,116 11,403 197,596 10,537 10,517 188,190 227,581 9,434 204,162 185,021 177,970 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Slide 35: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 13,942 29,908 12,896 28,693 20,964 20,645 9,017 19,736 8,607 18,277 18,934 7,872 7,798 16,678 16,897 6,809 7,091 13,310 12,383 5,067 5,365 4,360 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Q1FY22 Q2FY22 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY
Slide 36: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 48,645 48,034 45,684 47,003 40,666 38,740 38,332 35,373 33,265 33,409 37,335 34,683 36,169 34,015 35,182 36,898 32,460 33,327 27,034 26,330 28,080 28,063 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Q1FY22Q2FY22 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 F
Slide 37: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss Particulars (in Million) FY21 FY20 FY19 FY18 Net Sales 40,719 32,885 33,216 25,274 Total Expenses 28,430 26,643 25,323 19,305 Other Income 40 47 58 87 EBITDA 12,289 6,289 7,952 6,056 EBITDA Margin (%) 30% 19% 24% 23% Depreciation 1,385 1,369 1,329 1,318 F
Slide 38: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet Particulars (INR mn) FY21 FY20 FY19 FY18 Net Worth 21,080 15,026 13,364 10,837 Non-Controlling Interest 724 1,773 1,672 1,604 Debt Long Term Debt 7,711 14,645 16,431 18,730 Short Term Debt 814 1,604 1,393 1,344 Other Long Term Liabilities 1,851 605 127 10
Slide 39: Thank you
Thank you Investor Relations Contact: Sana Kapoor Sheetal Khanduja Go India Advisors Go India Advisors sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com M:+91 81465 50469 M:+91 97693 64166 Company Contact: Sanjay Bothra YC Rao sanjay.bothra@hiragroup.com Yarra.rao@hiragroup.com Godawari Power and
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