Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q1 FY25 Earnings Presentation
34 slides from Godawari Power & Ispat's earnings presentation, Aug 7, 2024
Slide 1: Exchange filing cover letter for investor presentation
ra5=rm 5 axp tairm aft ch HIIEL GODAWARI POWER & ISPAT REF: GPILINSE & BSE/2024/5559 Date: 07.08.2024 To I. 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, Ba
Slide 2: Godawari Power & Ispat Ltd. Q1 FY25 Investor Presentation
GODAWARI POWER & ISPAT LTD. Q1 FY25 Investor Presentation 7TH August 2024
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. Agrawal, 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: Q1FY25 Performance Highlights
Q1FY25 Performance Highlights Financial Performance (Consolidated) Performance Highlights (YoY) Revenue (Rs. Cr.) Operating EBITDA o Revenue (Net of trading sales), EBITDA and PAT increased (Rs. Cr.) by 12%, 33% and 24% respectively. +12% 1342 1199* +33% o Increase in Production Volume of Iron Ore M
Slide 7: FY25 Guidance – Status Check
FY25 Guidance – Status Check Particulars FY25 Guidance Q1FY25 Performance % Achieved Iron Ore Mining 3.0MnT 0.6MnT 20% Iron Ore Pellets 2.44MnT 0.65MnT 27% Sponge Iron 0.594MnT 0. 157MnT 26% Steel Billets 0.50MnT 0.113MnT 23% Ferro Alloys 80,000T 24,074T 30% Rolled Products 0.325MnT 0.069MnT 21%
Slide 8: Strategic Updates – Q1FY25
Strategic Updates – Q1FY25 Updates on Capex Plan Rewards to Shareholders Q1FY25 Performance (YoY) o Received “Permission to o Share Buyback – Buyback of o Simplification of Group Establish” from Chhattisgarh 21.5 Lac shares at price of Rs. Structure by increasing its Environment Conservation 1,400 h
Slide 9: Next Leg of Growth – Capex Plan
Next Leg of Growth – Capex Plan Capex ( Apprx. in Rs Cr ) Existing Capacity Proposed Capacity Total Capacity Expected Project Particulars Balance to be Current Status ( MnT) Expansion (MnT) After Expansion Poject Cost Cost Incurred Completion Incurred Revised Mining Plan filed and TOR Received. The
Slide 10: Carbon Footprint Reduction: Strategies for Greener Future
Carbon Footprint Reduction: Strategies for Greener Future Decarbonisation Initiatives Features & Benefits of Decarbonisation Strategies Focusing on energy- Dash-Board for CBAM Output – 11MW of additional Payback efficient, R&D projects and (Carbon Border Capex – Cost Savings power Period – 2 fuel sw
Slide 11: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 7,300 6,800 6,200 6300 5,500 4,346 4,270 3,000 3,000 2885 2,800 2,800 2,310 2,462 2,375 2,181 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Market Price of Iron Ore Captive Ore Landed Cost Note – Prices are indicative only
Slide 12: Detailed Production Summary
Detailed Production Summary Description of Goods M.T./ KWH Q1FY25 Q1FY24 YoY (%) Q4FY24 QoQ (%) FY24 Iron ore Mining M.T.s 590,488 572,523 3% 648,662 -9% 2,307,075 Iron ore Pellets - GPIL M.T.s 651,700 523,950 24% 631,800 3% 2,438,950 Sponge Iron M.T.s 156,807 149,216 5% 135,256 16% 593,991 Steel Bi
Slide 13: Detailed Sales Volume Summary
Detailed Sales Volume Summary Description of Goods M.T./ KWH Q1FY25 Q1FY24 YoY (%) Q4FY24 QoQ (%) FY24 Iron Ore Pellet - GPIL M.T.s 442,102 297,656 49% 484,073 -9% 1,581,795 Sponge Iron M.T.s 28,132 31,567 -11% 5,360 425% 60,198 Steel Billets M.T.s 62,929 42,323 49% 68,944 -9% 233,246 M.S. Round/ TM
Slide 14: Detailed Realisation Summary
Detailed Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods M.T./ KWH Q1FY25 Q1FY24 YoY (%) Q4FY24 QoQ (%) FY24 Iron Ore Pellet - GPIL INR/M.T.s 10,503 10,200 3% 10,092 4% 10,171 Sponge Iron INR/M.T.s 30,986 30,290 2% 28,979 7% 30,418 Steel Billets
Slide 15: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Crore Particulars Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% FY24 Net Sales 1,342 1,326 1% 1,530 -12% 5,455 Total Expenses 935 1,019 -8% 1,201 -22% 4,127 Other Income 30 19 59% 40 -25% 98 EBIDTA 408 307 33% 329 24% 1,328 EBIDTA Margin (%) 30% 23% 22% 24% Depr
Slide 16: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Crore Particulars Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% FY24 Net Sales 1,194 1,207 -1% 1,403 -15% 5,042 Total Expenses 803 905 -11% 1,082 -26% 3,735 Other Income 28 19 45% 29 -4% 90 EBIDTA 391 302 30% 320 22% 1,307 EBIDTA Margin (%) 33% 25% 23% 26% Depreci
Slide 17: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Crore Particulars 31.03.2024 31.03.2023 Particulars 31.03.2024 31.03.2023 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 2,273 1,965 (a) Equity share capital 62 65 (b) Capital work-in-progress 431 443 (b)
Slide 18: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Crore Particulars 31.03.2024 31.03.2023 Particulars 31.03.2024 31.03.2023 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 1,857 1,674 (a) Equity share capital 66 68 (b) Capital work-in-progress 340 240 (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 -791 -1,056 -1261 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Short term borrowings are not included in calculation of Net Debt.
Slide 20: Unique Presence Cross Steel Value Chain
Unique Presence Cross Steel Value Chain Asset Capacity FY24 Utilization (%) Asset Capacity FY24 Utilization (%) Iron Ore MS 0.4 MT 60% Mining 3.05 MT Rounds 76% Iron Ore 2.7 MT HB 0.10 MT 90% 81.50% Pellets 92% Wires Sponge Ferro 91,500T 0.594 MT 93% Alloys Iron 99.99% 79% Power Steel (Incl 0.525 MT
Slide 21: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha – Ardent Steel Keonjhar: 0.8 mn MTPA Siltara Integrated Plant Chhattisgarh 3.3 mn MTPA Iron Ore Beneficiation 2.7 mn MTPA Iron Ore Pellets 0.594 mn MTPA Sponge Iron Bemetara, Chhattisgarh 0.525 mn MTPA Steel Billets 52MW HFAL Solar Power
Slide 22: Simplified Group Structure
Simplified Group Structure Associates JVs Godawari Power and Ispat Limited 37.85% 33.30% Ardent Steel Private Raipur Infrastructure Limited Company Limited 91.82% 100% 25.93% Hira Ferro Alloys Limited Godawari Energy Limited Chhattisgarh Captive Coal Mining Private 9.28% Limited 35.36% 88.34% 2.34%
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 ENGLISH EDUCATION FOR VILLAGE STUDENTS FIRST AID CENTRE - KACCHE
Slide 25: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Global iron ore prices have dropped to around $100/t from the highs of $144/t in Jan’2024. China's property sector continues to weigh on the steel sector and the sentiment. However, sea borne iron ore market remains in deficit for FY25 and sh
Slide 26: Appendix
GODAWARI POWER & ISPAT APPENDIX Lite eed IL led
Slide 27: Board of Directors
Board of Directors Mr. BL Agrawal (Chairman & Mr. Dinesh Gandhi Mr Raj Kamal Bindal Managing Director) (Executive Director) (Independent Director) 1st generation entrepreneur with 3 decades of experience in MCOM, CA & MBA; 22 years experience in almost 4 decades of experience; Accounts, Finance & Pr
Slide 28: Shareholding Pattern on 30th June 2024
Shareholding Pattern on 30th June’2024 Shareholding Pattern 30th June’24 Particulars No of Shares % of Total Sh. Promoter 8,60,04,908 63.26 36.74% Domestic Institutions 26,66,831 1.96 FPI 1,01,92,937 7.50 63.26% Non Institution 3,70,80,312 27.28 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) 2,616,500 2,595,953 1,933,250 2,399,500 2,438,950 2,312,888 2,256,550 1,580,850 1,999,150 1,547,384 2,307,075 1,841,050 1,532,200 1,495,100 1,699,920 1,579,693 1,657,629 902,550 619,620 326,358 1,
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 - GPIL (mt) 16,492 16,152 16,444 479,800 13,772 14,178 350,865 325070 13,700 13,136 11,116 11,403 10,517 344,610 10,537 327,050 9,434 188,190 204,162 298,418 227,581 197,596 185,021 177,970 FY
Slide 31: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron Steel Billets 30,418 12,390 33,804 49,512 7,798 31,746 10,171 28,681 43,427 43,937 9,017 9,409 18,277 8,607 7,872 20,964 31947 21,830 33,072 33,545 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 FY24 FY23 FY22 FY21 FY20 FY19 FY18 Net Sales 5,455 5,753 5,399 3,958 3,289 3,322 2,527 Total Expenses 4,127 4,589 3,535 2,821 2,664 2,532 1,931 Other Income 98 104 29 3 5 6 9 EBITDA 1,328 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 FY24 FY23 FY22 FY21 FY20 FY19 FY18 Net Worth 4,554 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 42 307 418 125 160 139 134 Other Long Term Liabilities 237 256 189
Slide 34: Thank You
Thank You Investor Relations Contact: Sana Kapoor Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469 Sheetal Khanduja Go India Advisors sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Company Contact: Sanjay Bothra Chief Financial Officer (CFO) sanjay.bothra@hiragroup.com Godawari Power and
Godawari Power & Ispat — Q1 FY25 Earnings Presentation on 6ix