Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q4 FY2023 Earnings Presentation
40 slides from Godawari Power & Ispat's earnings presentation, May 20, 2023
Slide 1: Exchange filing cover letter
gr qu"HmQch HIFEL GODAWARI POWER & lspAT REF: GPILINSE&BSE/2023/5138 Date: 20.05.2023 To' To' BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C/I, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai-400001. Mumbai-400051. Scrip Code: BSE
Slide 2: Q4 & FY23 Investor Presentation
Q4 & FY23 Investor Presentation 20th May’2023
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: FY23 Key Highlights
FY23 Key Highlights o Record high Sales Revenues achieved by the company. Revenues increased by 7% to Rs. 5,753Cr. o Revenue for the company is growing at a fast pace. 3 Year CAGR of Revenue = 20% and 5 Year CAGR of Revenue = 18% Financial Performance o EBITDA is lower by 39% to Rs. 1,133Cr. for the
Slide 5: Q4FY23 Key Highlights
Q4FY23 Key Highlights o EBITDA increased by 55% on QoQ basis to Rs. 268Cr despite lower net sales at Financial Performance Rs 1,317Cr.; down by 10% QoQ & 8% YoY. (Consolidated) o EBITDA Margin improved to 20% compared to 12% of Q3FY23 o PAT attributable to owners increased to Rs. 170Cr; up 32% QoQ o
Slide 6: FY23 Strategic Updates
FY23 Strategic Updates Consolidation of stake Announced Share 01 in HFAL & Alok Ferro 04 Buyback of Rs.250Cr Alloys to 95.15% & (Process completed in 91.32% Apr 2023) New Capex Plan 70MW Solar Power 02 announced to enhance 05 Plant of GPIL the Mining Capacities & commissioned in Pellet Plant Capacit
Slide 7: FY23 Report Card - What we promised vs What we delivered
FY23 Report Card - What we promised vs What we delivered What we Promised for FY23 What we Delivered in FY23 Remarks Record high Iron Ore Mining; Iron ore mining – 3.05 MnT Iron Ore Mining – 2.6MnT Achieved 85% of the Target Record high Iron Ore Pellet Iron Ore Pellets – 2.6MnT Production and achiev
Slide 8: FY2024 Volume Guidance
FY2024 Volume Guidance Iron Ore Mining Iron Ore Pellets Sponge Iron 3MnT 2.6MnT 0.495MnT Steel Billets Ferro Alloys Rolled Products 0.4MnT 80,000 Tons 0.2MnT
Slide 9: New Capex Plan
New Capex Plan Category Capacity (MnT) Capex (approx.) Est. Time Iron Ore Mining 2.35 3.65 6MnT (Ari Dongri Mines) 18 ₹ 200Cr Months Iron Ore 6MnT Beneficiation Plant (Ari Dongri) 36 Pellets 2.7 3.0 5.7MnT ₹ 800Cr Months Existing Capacity Additional Plan PROJECT UPDATE The Company has applied to MoE
Slide 10: Strong Future Outlook - Low-cost Capacity Expansion
Strong Future Outlook - Low-cost Capacity Expansion* Capacity FY22 Capex (in Rs. Cr.) Particulars Already Current Status Balance to be FY22 FY23 Total incurred upto incurred 31-03-2023 Mining production capacity has been ramped & setting up of Iron Ore Mining, Crushing & Crushing facilities has been
Slide 11: Carbon Footprint Reduction Strategy
Carbon Footprint Reduction Strategy* Capex (in Rs. Cr.) Particulars Capacity Already Balance to Total Current Status incurred be incurred Solar PV Projects Plant commissioned on 6th August’2022 GPIL - Rajnandgaon 70 MW 247.5 247.5 0 and started generating power for captive consumption. Cost saving 3
Slide 12: Journey towards Green Energy
Journey towards Green Energy Present FY23 Proposed FY24 Unit Energy Source MW % MW % Fossil 41 38 GPIL Green 72 76.5 Fossil 20 20 HFAL Green 5 8 Fossil 8 8 AFAL Green - - Fossil 69 47% 66 44% Total Green 77 53% 84.5 56% 146 150.5 Notes: • Solar Power Capacity considered at 15% of Installed Capacity
Slide 13: Production Summary
Production Summary Iron Ore Mining Iron Ore Pellets - GPIL Sponge Iron 673,397 662,200 127,860 645,114 642,050 67,787 62,552 570,276 613,000 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Steel Billets M.S. Rounds/TMT Ferro Alloys 3,046 210 54,915 12,089 9,857 10,945 102,395 47,635 2
Slide 14: Sales Volume Summary
Sales Volume Summary Iron Ore Pellets - GPIL Sponge Iron Steel Billets 573,278 21,641 43,544 508,187 19,114 463,593 22,995 7,601 16,652 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 M.S. Rounds/TMT Ferro Alloys Galvanized Fabricated Products 2,504 74 495 10,647 8,447 10,379 32,333 3
Slide 15: Realisation Summary
Realisation Summary (Ex plant realisation excluding export freight and expenses) Iron Ore Pellets - GPIL Sponge Iron Steel Billets 11,905 34,862 48,108 9,883 33,707 47,252 8,284 31,948 46,573 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 M.S. Rounds/TMT Ferro Alloys - HFAL Galvanize
Slide 16: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Crore Particulars Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% FY23 FY22 YoY% Net Sales 1,317 1,463 -10% 1,438 -8% 5,753 5,399 7% Total Expenses 1,049 1,290 -19% 1,041 1% 4,620 3,535 31% Other Income 26 36 -29% 18 43% 104 29 254% EBIDTA 268 173 55% 397 -33% 1,1
Slide 17: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Crore Particulars Q4FY23 Q3FY23 QoQ% Q4FY22 YoY% FY23 FY22 YoY% Net Sales 1,223 1,378 -11% 1,300 -6% 5,285 5,075 4% Total Expenses 949 1,202 -21% 928 2% 4,173 3,294 27% Other Income 25 34 -26% 10 150% 96 18 425% EBIDTA 274 177 55% 372 -26% 1,112 1,7
Slide 18: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 7,800 7,300 6,800 5500 5560 4,500 4,346 4,270 3,500 3,200 3,000 2,750 3100 2,800 2,900 2,900 2900 2,600 2,462 2,310 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Market Price of Iron Ore Captive Ore Landed Cost No
Slide 19: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Crore Particulars 31.03.2023 31.03.2022 Particulars 31.03.2023 31.03.2022 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 1,965 1,413 (a) Equity share capital 65 66 (b) Capital work-in-progress 443 643 (b)
Slide 20: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Crore Particulars 31.03.2023 31.03.2022 Particulars 31.03.2023 31.03.2022 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 1,674 1,300 (a) Equity share capital 68 68 (b) Capital work-in-progress 240 416 (b) O
Slide 21: Strong focus on Sustainability
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 o Strong community o Strategic Clarity – en
Slide 22: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Global iron ore prices touched $133/t CIF China in Mid-March’2023 on back of reopening of China's economy. However sharp increase in iron ore supplies by global major and lower than expected demand pick up in China has led to a correction to
Slide 23: Appendix
GODAWARI POWER & ISPAT APPENDIX Lite eed IL led
Slide 24: Unique Presence Across Steel Value Chain
Unique Presence Across Steel Value Chain Asset Capacity FY23 Utilisation (%) Asset Capacity FY23 Utilisation (%) Iron Ore MS 0.4 MT 43% Mining 3.05 MT Rounds 85% Iron Ore 2.7 MT HB 0.10 MT 97% 54% Pellets 92% Wires Sponge Ferro 16,500 T 0.5 MT 93% Alloys 60500* T Iron 99.99% 99.95% Steel 75% Power**
Slide 25: 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 • Increased captive mining to aid in lowering cost and Started operations 2592504 improving margins. at Boria Tibu
Slide 26: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha Keonjhar: 0.8 mn MTPA Siltara Integrated Plant Chhattisgarh 3.3 mn MTPA Iron ore beneficiation 2.4 mn MTPA Iron ore pellets 0.5 mn MTPA Sponge iron 0.4 mn MTPA Steel billets Bemetara, Chhattisgarh 0.2 mn MTPA Wire-Rod Mill 30MW HFAL Sola
Slide 27: Detailed Production Summary
Detailed Production Summary Description of Goods M.T./ KWH Q4FY23 Q3FY23 QoQ (%) Q4FY22 YoY (%) FY23 FY22 YoY (%) Iron ore Mining M.T.s 5,70,276 6,45,114 -12% 6,73,397 -15% 25,92,504 23,12,888 12% Iron ore Pellets - GPIL M.T.s 6,62,200 6,42,050 3% 6,13,000 8% 26,16,500 23,99,500 9% Sponge Iron M.T.s
Slide 28: Detailed Sales Volume Summary
Detailed Sales Volume Summary Description of Goods M.T./ KWH Q4FY23 Q3FY23 QoQ (%) Q4FY22 YoY (%) FY23 FY22 YoY (%) Iron Ore Pellet - GPIL M.T.s 5,73,278 4,63,593 24% 5,08,187 13% 19,79,415 16,64,030 19% Sponge Iron M.T.s 7,601 -60% -65% 1,25,575 1,26,371 -1% 19,114 21,641 Steel Billets M.T.s 22,995
Slide 29: Detailed Realisation Summary
Detailed Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods M.T./ KWH Q4FY23 Q3FY23 QoQ (%) Q4FY22 YoY (%) FY23 FY22 YoY (%) Iron Ore Pellet - GPIL INR/M.T.s 9,883 8,284 19% 11,905 -17% 9,409 12,390 -24% Sponge Iron INR/M.T.s 33,707 31,948 6% 34,862
Slide 30: Shareholding Pattern on 31st Mar & 20th Apr'23
Shareholding Pattern on 31st Mar & 20th Apr’23 Shareholding Pattern 31st March’23 Shareholding Pattern 20th April’23 (After Buy Back) 32.50% 32.32% 67.50% 67.68% Promoter Public Promoter Public Particulars No of Shares % of Total Sh. Particulars No of Shares % of Total Sh. Promoter 9,51,43,412 67.50
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; sta
Slide 32: Board of Directors
Board of Directors Mr Raj Kamal Bindal (Independent Mr. Vinod Pillai (Non-Executive Director) Director) MCOM, CA & MBA; 22 years experience 2 decades of experience in Sales, in areas of Energy, Infrastructure, Project Administration, Liaison & Logistics; Management, Financial Services and Commerce g
Slide 33: Growth Strategy Clearly Outlined
Growth Strategy Clearly Outlined What We Are What We Wish to Be • Amongst India’s best mid- • Carbon neutral in steel sized steel companies (by production – increase Sustainable product quality, margins, Most Profitable renewable energy material efficiency, asset consumption; improve energy utilisat
Slide 34: 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) 2616500 2592504 1,933,250 2,399,500 2,256,550 1,580,850 1,999,150 1,547,384 1,841,050 2,312,888 1,532,200 1,495,100 1,699,920 1,579,693 1,657,629 902,550 619,620 326,358 1,175,
Slide 35: GPIL Standalone – Past Operational Performance at a Glance
GPIL Standalone – Past Operational Performance at a Glance... Trend of Steel Production (mt) Trend of Silico Manganese (mt) 16492 350,865 325070 16,152 344,610 327,050 13,700 13,772 14,178 204,162 298,418 13,136 188,190 11,116 11,403 227,581 10,537 10,517 197,596 9,434 185,021 177,970 FY 13 FY 14 FY
Slide 36: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 33707 12,390 9883 34,457 31,948 11,596 7,798 31,746 33,873 9,017 18,277 8,607 8,186 8,284 7,872 20,964 6,8097,091 18,934 19,736 20,645 5,365 16,678 16,897 5,067 4,360 13,310 12,383 Steel Billets 48108 53,076 49,626 46,573 28,681 43,427 31947 21,830
Slide 37: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 51155 55,030 52743 53,383 49,754 57,551 48,092 33,265 56,944 51,969 47,981 26,330 38,740 37,335 35,373 28,063 40,666 32,460 33,327 38,332 36,169 33,409 34,015 35,182 36,898 27,034 34,683 28,080 Silico Manganese 98,222 95,222 75370 67,611 51,665 78,414 73,
Slide 38: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss All figures in INR Crore Particulars FY23 FY22 FY21 FY20 FY19 FY18 Net Sales 5,753 5,399 3,958 3,289 3,322 2,527 Total Expenses 4,620 3,535 2,821 2,664 2,532 1,931 Other Income 104 29 3 5 6 9 EBITDA 1,133 1,864 1,137 629 795 606 EBITDA Margin (%) 20% 35%
Slide 39: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet All figures in INR Crore Particulars FY23 FY22 FY21 FY20 FY19 FY18 Net Worth 3,947 3442 2,108 1,503 1,336 1,084 Debt Long Term Debt 9 10 771 1,465 1,643 1,873 Short Term Debt 307 418 125 160 139 134 Other Long Term Liabilities 256 189 187 61 13 10 Current
Slide 40: Thank You
Thank You Investor Relations Contact: Company Contact: Sana Kapoor Sheetal Khanduja Sanjay Bothra YC Rao Go India Advisors Go India Advisors sanjay.bothra@hiragroup.com Yarra.rao@hiragroup.com sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com Godawari Power and Ispat Ltd. Godawari Power and Ispat
Godawari Power & Ispat — Q4 FY2023 Earnings Presentation on 6ix