Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q2 FY2024 Earnings Presentation
34 slides from Godawari Power & Ispat's earnings presentation, Nov 3, 2023
Slide 1: Exchange filing cover letter for investor presentation
raE=rm tzi5 ca © qfr ch ullEL GODAWARI POWER & lspAT REF: GPILINSE&B SE/2023/5264 Date 03 .1 1.2023 TO, To' BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai-400001. Mumbai-400051. S
Slide 2: Q2FY24 Investor Presentation
Godawari Power & Ispat Limited Q2FY24 Investor Presentation SCALABILITY. 3rd November’2023 RESPONSIBILITY. SUSTAINABLITY. Three words that represent the core of our company
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: Business at a Glance
Business at a Glance Incorporated in 1999 & Backward integrated Large product portfolio Captive Iron Ore Mines and Growing under leadership of with captive iron ore mines & ranging from Iron Ore pellets to manufacturing plants are Mr. B.L. Agarwal, 1st Captive Power Generation Sponge Iron, Steel Bil
Slide 5: Investment Thesis
Investment Thesis 01 02 03 04 Captive Iron ore mines with Unique presence across High Grade Pellets Strong Growth Plan 165MnT Reserves and 35+ steel value chain Manufactures high grade To more than double the years of mine life. Present Iron Ore Mining & pellets which earn premium capacities of iron
Slide 6: Q2FY24 Performance Highlights
Q2FY24 Performance Highlights Financial Performance (Consolidated) Operational Performance Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 1307 361 o Highest ever Production of Billet, Power and Silico 238 Manganese. 1291 o Increase in Production Volume of Iron Ore Pellets by 21% on QoQ basis o Increase in Produ
Slide 7: H1FY24 Performance Highlights
H1FY24 Performance Highlights Financial Performance (Consolidated) Operational Performance Revenue (Rs. Cr.) EBITDA (Rs. Cr.) o Highest ever Production of Sponge Iron, Billet & 704 Power. 2974 o Iron ore mining decreased by 21% due to 668 prolonged monsoon and impact of OB dump 2617 collapse. o Pell
Slide 8: Guidance – Status Check
Guidance – Status Check H1FY24 Particulars FY24 Guidance % Achieved Performance Iron Ore Mining 2.3MnT (Revised) 1.1 T 48% Iron Ore Pellets 2.6MnT 1.2 T 45% Sponge Iron 0.495MnT 0.306 T 62% Steel Billets 0.4MnT 0.2 T 56% Ferro Alloys 80,000T 30,357 T 38% Rolled Products 0.2MnT 0.1 T 59% * Note – Min
Slide 9: Ongoing Capex Plan
Ongoing Capex Plan Capex (in Rs. Cr.) Capacity FY24 Particulars Already Balance to (E) Total Current Status incurred be incurred 30 MW Construction activities going on. Project (Capacity GPIL – Khairagarh 125 107 18 delayed due to prolonged monsoon. enhanced from Expected to be commissioned in Q3FY2
Slide 10: Next Leg of Growth – Capex Plan
Next Leg of Growth – Capex Plan Category Capacity (MnT) Capex (approx.) Est. Time Iron Ore Mining 2.35 3.65 6MnT 15 (Ari Dongri Mines) ₹ 200Cr Months Iron Ore Beneficiation Plant 6 6MnT (Ari Dongri) 30 Pellets 5.7MnT ₹ 800Cr 2.7 3 Months Integrated Steel Plant 0.5 1.0 36 1.5MnT ₹ 2500 Cr Months Exis
Slide 11: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 7,300 6,800 6,400 6,000 5,500 4,346 4,270 3,500 3,200 3,000 2,750 3,000 2,950 2,800 2700 2,600 2,462 2,310 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Q2FY24 Market Price of Iron Ore Captive Ore Landed Cost Note – Prices are in
Slide 12: Detailed Production Summary
Detailed Production Summary Description of Goods M.T./ KWH Q2FY24 Q1FY24 QoQ (%) Q2FY23 YoY (%) H1FY24 H1FY23 FY23 Iron ore Mining M.T.s 520,636 572,523 -9% 618,808 -16% 1,093,158 1,377,114 2,595,953 Iron ore Pellets - GPIL M.T.s 636,200 523,950 21% 644,900 -1% 1,160,150 1,312,250 2,616,500 Sponge I
Slide 13: Detailed Sales Volume Summary
Detailed Sales Volume Summary Description of Goods M.T./ KWH Q2FY24 Q1FY24 QoQ (%) Q2FY23 YoY (%) H1FY24 H1FY23 FY23 Iron Ore Pellet - GPIL M.T.s 432,697 297,656 45% 531,877 -19% 730,353 942,544 1,979,415 Sponge Iron M.T.s 10,859 31,567 -66% 48,598 -78% 42,426 98,860 125,575 Steel Billets M.T.s 59,5
Slide 14: Detailed Realisation Summary
Detailed Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods M.T./ KWH Q2FY24 Q1FY24 QoQ (%) Q2FY23 YoY (%) H1FY24 H1FY23 FY23 Iron Ore Pellet - GPIL INR/M.T.s 9,955 10,200 -2% 8,186 22% 10,055 9,671 9,409 Sponge Iron INR/M.T.s 30,277 30,290 0% 33,87
Slide 15: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Crore Particulars Q2FY24 Q1FY24 QoQ% Q2FY23 YoY% H1FY24 H1FY23 FY23 Net Sales 1,291 1,326 -3% 1,307 -1% 2,617 2,974 5,753 Total Expenses 930 1,019 -9% 1,069 -13% 1,948 2,269 4,589 Other Income 23 19 22% 26 -12% 42 42 104 EBIDTA 361 307 18% 238 52%
Slide 16: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Crore Particulars Q2FY24 Q1FY24 QoQ% Q2FY23 YoY% H1FY24 H1FY23 FY23 Net Sales 1,218 1,207 1% 1,201 1% 2,425 2,684 5,285 Total Expenses 857 905 -5% 962 -11% 1,762 2,010 4,142 Other Income 21 19 12% 26 -19% 40 38 96 EBIDTA 361 302 20% 239 51% 662 673
Slide 17: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Crore Particulars 30.09.2023 31.03.2023 Particulars 30.09.2023 31.03.2023 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 1,921 1,965 (a) Equity share capital 62 65 (b) Capital work-in-progress 615 443 (b)
Slide 18: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Crore Particulars 30.09.2023 31.03.2023 Particulars 30.09.2023 31.03.2023 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 1,635 1,674 (a) Equity share capital 66 68 (b) Capital work-in-progress 410 240 (b) O
Slide 19: Strong Net Cash Balance Sheet
Strong Net Cash Balance Sheet Healthy Balance Sheet to support Capex Plans through internal accruals Consolidated Net Debt (Rs Crores) 1,929 1,821 1,604 1,436 720 -565 -649 -791 FY17 FY18 FY19 FY20 FY21 FY22 FY23 H1FY24 Short term borrowings are not included in calculation of Net Debt.
Slide 20: Unique Presence Across Steel Value Chain
Unique Presence Across Steel Value Chain Asset Capacity FY23 Utilization (%) Asset Capacity FY23 Utilization (%) 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 91,500T 0.5 MT 93% Alloys Iron 99.99% 67% Power Steel (Incl 0.4 MT 75% 2
Slide 21: 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 2.7 mn MTPA Iron ore pellets 0.5 mn MTPA Sponge iron Bemetara, Chhattisgarh 0.4 mn MTPA Steel billets 30MW HFAL Solar Power Plant 0.2 mn MTPA
Slide 22: Simplified Group Structure
Simplified Group Structure Associates JVs Godawari Power and Ispat Ltd. 37.85% 33.30% Ardent Steel Raipur Infrastructure Co 91.82% 100% 25.93% Hira Ferro Alloys Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 8.29% 35.36% 78.96% 12.53% Chhattisgarh Ispat Bhumi Alok Ferro Alloys Ltd. No
Slide 23: 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 24: CSR Activities – Serving Society through Industry
CSR Activities – Serving Society through Industry Environment Education & Health & Infrastructure
Slide 25: 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 26: APPENDIX
GODAWARI POWER & ISPAT APPENDIX Lite eed IL led
Slide 27: Board of Directors
Board of Directors Mr. Shashi Kumar (Chairman & Mr. BL Agarwal (Managing Mr Raj Kamal Bindal (Independent Independent Director) Director) Director) 4+ decades of experience; B.Sc. In 1st generation entrepreneur with MCOM, CA & MBA; 22 years experience Mining Engineering; Advisor to almost 4 decades
Slide 28: Shareholding Pattern on 30th Sep'2023
Shareholding Pattern on 30th Sep’2023 Shareholding Pattern 30th Sep’2023 Particulars No of Shares % of Total Sh. Promoter 8,60,04,908 63.26 36.74% Domestic Institutions 20,64,739 1.52 FPI 63,37,566 4.66 63.26% Non Institution 4,15,37,775 30.56 Total 13,59,44,988 100.00 Promoter Public
Slide 29: Past Operational Performance at a Glance…
Past Operational Performance at a Glance… Trend of Iron Ore Mining (mt) Trend of Pellet Production (mt) 2616500 2595953 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 1,175,090 693,612 657,328
Slide 30: Past Operational Performance at a Glance (Ctd.)...
Past Operational Performance at a Glance (Ctd.)... 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 15 FY 16 F
Slide 31: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron Steel Billets 12,390 33,804 49,512 7,798 31,746 30,287 28,681 43,427 44,862 10,055 18,277 9,017 9,409 8,607 21,830 33,072 33,545 7,872 20,964 31947 6,8097,091 18,934 19,736 20,645 29,493 27,720 28,590 16,678 16,897 22,689 5,067 5,365 4,360 13,310 1
Slide 32: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss All figures in INR Crore Particulars H1FY24 FY23 FY22 FY21 FY20 FY19 FY18 Net Sales 2,617 5,753 5,399 3,958 3,289 3,322 2,527 Total Expenses 1,948 4,589 3,535 2,821 2,664 2,532 1,931 Other Income 42 104 29 3 5 6 9 EBITDA 668 1,164 1,864 1,137 629 795 606
Slide 33: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet All figures in INR Crore Particulars H1FY24 FY23 FY22 FY21 FY20 FY19 FY18 Net Worth 4,085 3,947 3,442 2,108 1,503 1,336 1,084 Debt Long Term Debt 9 9 10 771 1,465 1,643 1,873 Short Term Debt 81 307 418 125 160 139 134 Other Long Term Liabilities 266 256 1
Slide 34: 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 — Q2 FY2024 Earnings Presentation on 6ix