Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q4 FY2021 Earnings Presentation
36 slides from Godawari Power & Ispat's earnings presentation, May 25, 2021
Slide 1: Cover letter to stock exchanges on Q4FY21 presentation
--H1RA-- GODAWARI POWER & ISPAT REF: GPILINSE & BSE/2021 Date: 25.05.2021 To, 1. The Listing Department, 2. The Corporate Relation Department, The National Stock Exchange ofIndia Ltd, The BSE Limited, Exchange Plaza, Bandra Kurla Complex, First Floor, Rotunda Building, Bandra (E), Mumbai - 400051 Da
Slide 2: Godawari Power & Ispat Limited Q4FY21 Earnings Presentation
Godawari Power & Ispat Limited Q4FY21 Earnings Presentation May 2021 1
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: Best Year in Troubled Times
Best Year in Troubled Times Best Yearly Performance Highest Debt Reduction Strategic Initiatives Progressing o Record Operating Performance o Debt free carbon neutral growth o Highest ever production of o Long term gross debt – Setting up captive Solar PV Iron Ore, pellets and billets (standalone) r
Slide 5: Godawari 2.0: Carbon Neutral Low Debt Growth
Godawari 2.0: Carbon Neutral Low Debt Growth o Setting up a 250 MW captive Solar PV power plant to replace existing thermal capacity o Utilising existing idle land parcel of ~362 hectares acquired in 2011-12 o Low payback period; funding primarily through internal accruals o Expected Commissioning –
Slide 6: Focussed on Value Creation: Net Debt Reducing & FCF increasing
Focussed on Value Creation: Net Debt Reducing & FCF increasing All figures in INR MN Net Debt to Equity 2.5x 1.9x 1.4x 1.1x 0.42x 23,000 10,000 21,634 20,715 7,772 21,000 8,000 19,000 17,530 6,000 17,000 15,400 15,000 4,000 1,909 1,731 13,000 2,000 1,051 11,000 - 9,000 8,170 -2,000 7,000 -3,162 5,00
Slide 7: FY21: Strong Operating and Financial Performance
FY21: Strong Operating and Financial Performance Financial Performance (in Mn) Sales EBITDA PAT Credit Rating A/STABLE 6,245 40,719 12,289 1,744 32,885 (by CRISIL, India Rating 6,289 and CARE) FY20 FY21 FY20 FY21 FY20 FY21 (Standalone) Production Summary (in MT) Iron Ore Pellet (GPIL) Wire Rod Silic
Slide 8: Q4FY21: Financial & Operating Performance
Q4FY21: Financial & Operating Performance Financial Performance (in Mn) Sales EBITDA PAT Credit Rating 12,623 A/STABLE 3,289 4,896 1,533 7,901 342 (by CRISIL, India Rating and CARE) Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 (Standalone) Production Summary (MT) Iron Ore Production Pellet (GPIL) MS Ro
Slide 9: Delivering low-cost Capacity Expansions
Delivering low-cost Capacity Expansions Capacity FY21 Capex Capacity FY22 Iron Ore Mining 2.1mt INR 750 mn 3.0 mtpa Iron Ore Beneficiation 1.1mt INR 250 mn 3.3 mtpa Iron Ore NIL Pellets 2.1 mt 2.4 mtpa Sponge NIL Iron 0.495 mt 0.594 mtpa Steel 0.4 mt 0.7mtpa INR 350 mn Billets 8
Slide 10: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss 9
Slide 11: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss * Includes JV income 10
Slide 12: Q4FY21 Production Summary
Q4FY21 Production Summary 11
Slide 13: Q4FY21 Sales Volume Summary
Q4FY21 Sales Volume Summary 12
Slide 14: Q4FY21 Realisation Summary
Q4FY21 Realisation Summary *Ex-plant realisation (excluding export freight & expenses). 13
Slide 15: Captive Mining Provides Strategic Edge
Captive Mining Provides Strategic Edge 9600 7000 6,200 4,346 4,270 4,400 3,500 3,200 3,000 2,750 2,600 2,462 2650 2,181 2,310 2,250 2,200 2400 2,050 1,800 FY15 FY16 FY17 FY18 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Market Price of Iron Ore Captive Ore Landed Cost 14
Slide 16: Leading to Record Profitability
Leading to Record Profitability All figures in INR MN * ASL ceased to be subsidiary effective 28th December 2020 consequently, EBITDA up to 27th December 2020 included at consolidated level. ASL have now became JV with GPIL having 37.85% stake. ASL is Consolidated as JV from Q4 onwards. 15
Slide 17: Resulting in Stronger Balance Sheet
Resulting in Stronger Balance Sheet Repaid INR 7.2 Billion in FY21; Long term debt reduced by 47% 16
Slide 18: 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 19: Clear Future Priorities
Clear Future Priorities Future Roadmap o Moving up the value chain through internal accruals in a phased manner over 4-5 yrs; MOU signed with Chhattisgarh government for future growth projects GPIL Standalone o Natural transition to integrated steel business o Leverage portfolio flexibility to maxim
Slide 20: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Iron ore prices have climbed to US$ 233/t, touching multi-year high, and is now trading at US$ 200/t. Among the 3 major iron ore producers globally only Vale has been projecting higher production in FY22. The demand supply is expected to rema
Slide 21: Building a Strong Organisation
Building a Strong Organisation Cash Flow from Operation 9,826 7,772 5,508 5,498 5,508 4,511 1,657 3,140 3,771 2,145 2,581 1,699 1,063 556 146 716 827 1,732 515 -448 FY14 FY15 691 FY16 FY17 FY18 815 FY19 FY20 FY 21 -3,161 -4,234 Cash Flows from Operation Capex Free Cash Flows Net Debt/EBITDA (x) Net
Slide 22: Appendix
APPENDIX GODAWARI POWER & ISPAT
Slide 23: 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 2.1mt 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 0
Slide 24: 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 25: Group Structure
Group Structure Associates JVs Godawari Power and Ispat Ltd. 48.45% 33.30% Hira Ferro Alloys Ltd. Raipur Infrastructure Co 76.12% 51.30% Godawari Green Energy 25.93% Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 37.85*% 33.96% 35.36% Ardent Steel Chhattisgarh Ispat Bhumi Jagdamba Powe
Slide 26: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha Solar Thermal Power Plant Keonjhar: 0.69 mn MTPA Rajasthan: 50MW Siltara Integrated Plant Chhattisgarh 1 mn MTPA Iron ore beneficiation 2.4 mn MTPA Iron ore pellets 0.5 mn MTPA Sponge iron 0.4 mn MTPA Steel billets 0.1 mn MTPA HB wire 73
Slide 27: Shareholding Pattern as on March 2021
Shareholding Pattern as on March 2021 Shareholding Pattern Break up of Shareholding Pattern Shareholding % of Total Sh. Institution 1.16% 32.50% Non Institution 31.33% Total 32.50% 67.50% Promoter Shareholding % of Total Sh. Pledge* 32.51% Total 67.50% Promoter Public * Pledged with lenders as an ad
Slide 28: Board of Directors
Board of Directors Mr Biswajit Choudhary (Chairman & Mr BL Agarwal Independent Director) Managing Director 5 decades of experience in • 1st generation entrepreneur with Engineering, Banking & Finance; almost 4 decades of experience; Mechanical Engineering from IIT, Graduated as an electronic; Kharag
Slide 29: Board of Directors
Board of Directors Mr. Siddharth Agrawal Mr. Harishankar Khandelwal (Non-Executive Director) (Independent Director) Managing Director of subsidiary Almost 3 decades of experience in Godawari Green Energy Limited ; corporate planning & strategy, MBA with over 10 years of financial analysis, budgeting
Slide 30: 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 1,580,850 693,612 902,550 657,328 619,620 444,695 326,358 FY 13 FY
Slide 31: 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 32: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 9,017 8,607 20,964 7,872 7,798 19,736 20,645 7,091 18,277 18,934 6,809 16,678 16,897 5,067 5,365 13,310 12,383 4,360 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Steel Billets 33,072 33,545 3
Slide 33: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 40,666 38,740 37,335 38,332 36,898 35,373 33,265 33,409 33,327 34,683 36,169 34,015 35,182 32,460 27,034 26,330 28,080 28,063 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Silico Manganese 64,632 67,
Slide 34: 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 35: 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 36: Thank you
Thank you Investor Relations Contact: Company Contact: Niharika Shah Sheetal Khanduja Sanjay Bothra Go India Advisors Go India Advisors sanjay.bothra@hiragroup.com niharika@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com Godawari Power and Ispat Ltd. M:+91 97690 98986 M:+91 97693 64166 M: +91 98939
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