Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q4 FY2022 Earnings Presentation
41 slides from Godawari Power & Ispat's earnings presentation, May 28, 2022
Slide 1: Stock exchange cover letter for Q4FY22 investor presentation
gr F i" Eiii3m Fir dr HIFEL CODAWARI POWER & lspAT REF: GPILINSE & BSE/2022/H11] Date: 28.05.2022 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, Bandr
Slide 2: Q4 FY22 Investor Presentation
Q4 FY22 Investor Scalability. Presentation 28th May’2022 Responsibility. Sustainability.
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: Operating and Financial Highlights FY22
Operating and Financial Highlights FY22 Operating Performance Financial Performance (Standalone) Highest ever Annual Iron Ore Mining in Record high turnover Rs. 50,746 Mn, FY22 of 2.3MnT (YoY increase of 36%) up 39% YoY (Previous best: FY21- 1.6MnT) Record high Annual Iron Ore Pellets Highest ever E
Slide 5: FY22: Landmark Year – PAT Doubled
FY22 : Landmark Year – PAT Doubled Record High Revenue, EBITDA and PAT Net Debt Free Status – Net Cash Company • Became long term Net Debt Free on Standalone basis in Q1FY22 ; Net Debt Free on Consolidated Achieved Zero Focus on Reducing Carbon Footprints basis in Q4FY22 Long Term Debt Status • Sett
Slide 6: FY23 Guidance and Outlook
FY23 Guidance and Outlook Iron ore mining Guidance – 2.7 to 2.9MnT Iron ore Pellets Guidance – 2.4MnT Consolidated Capex Guidance – Rs.5,000Mn Consolidation of stake in HFAL and Alok Ferro Alloys* *Alok Ferro Alloys has Ferro Alloys capacity of 14,500TPA & 8MW Captive Power
Slide 7: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 10,500 8,500 8,600 6,800 6200 4,346 4,270 3,500 3,200 3,000 2,750 3,150 3,011 2,600 2,740 2800 2,310 2,462 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Market Price of Iron Ore Captive Ore Landed Cost
Slide 8: Building on Our Competitive Edge
Building on Our Competitive Edge 4x Increase in Reserves of Iron Ore mines to approx 165MnT; exploration still in progress. Mine life of 35+ years remaining at old ALLPPT Layout royalty rates. Plan to enhance Iron Ore Clean Text Slide for Mining Capacity to 5MnT over next 2-3 years and your Presenta
Slide 9: FY22: Strong Financial & Operating Performance
FY22: Strong Financial & Operating Performance Consolidated Financial Performance (in Mn) Sales EBITDA PAT 6,267 53,992 18,642 14,813 39,576 11,370 FY21 FY22 FY21 FY22 FY21 FY22 Production Summary (in MT) Iron Ore Pellet (GPIL) Silico Manganese 2,399,500 2,256,550 16,152 2,312,888 14,178 1,699,920 F
Slide 10: Q4FY22: Consolidated Financial & Operating Performance
Q4FY22: Consolidated Financial & Operating Performance Financial Performance (in Mn) Sales EBITDA PAT 14,379 4,065 12,366 3,270 4,696 3,971 Q4FY21 Q4FY22 Q4FY21 Q4FY22 Q4FY21 Q4FY22 Production Summary (MT) Iron Ore Production Pellet (GPIL) Ferro Alloys 673,397 476,067 613,000 630,600 15,602 14,677 Q
Slide 11: Strong Future Outlook - Low-cost Capacity Expansion
Strong Future Outlook - Low-cost Capacity Expansion Capacity FY22 Capex (in Rs. Mn) Particulars Current Status FY22 FY23 Total FY22 FY23 Mining production ramp-up in 2nd half. Beneficiation Iron Ore Mining, Crushing plant at mine to commission in H2FY23. Capex 2.1MTPA 3.05MTPA 1250 340 910 & Benefic
Slide 12: Carbon Footprint Reduction Strategy
Carbon Footprint Reduction Strategy Capex (in Rs. Mn) Particulars Capacity FY23 Total FY22 FY23 Current Status Solar PV Projects The Plant is ready in all respects except GPIL - Rajnandgaon 70 MW 2600 2250 350 synchronization with the grid. Land acquisition in process. Solar modules delivered & clea
Slide 13: Achieved Net Debt Free Status
Achieved Net Debt Free Status GPIL now has a Net Cash Balance Sheet Consolidated Net Debt (Rs Mn) 19,287 18,207 16,043 14,355 7,197 -5,645 FY17 FY18 FY19 FY20 FY21 FY22 Short term borrowings are not included in calculation of Net Debt.
Slide 14: Building a Strong Organisation
Building a Strong Organisation All figures in INR Mn Cash Flows from Operation Capex Free Cash Flows 13,303 9,688 7,043 6,063 5,498 5,508 7,753 4,511 2,212 1,634 1,755 1,051 530 760 396 146 FY17 FY18 FY19 FY20 FY 21 FY22 827 -2,975
Slide 15: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q4FY22 Q3FY22 QoQ% Q4FY21 YoY % FY22 FY21 YoY % Net Sales 14379 15853 -9% 12,366 16% 53,992 39,576 36% Total Expenses 10408 11080 -6% 7,670 36% 35,350 28,206 25% Other Income 180 79 127% 13 1326% 294 34 766% EBIDTA 3971 4773 -17% 4,
Slide 16: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q4FY22 Q3FY22 QoQ% Q4FY21 YoY % FY22 FY21 YoY% Net Sales 13002 14015 -7% 12,366 5% 50,746 36,409 39% Total Expenses 9283 9811 -5% 7,683 21% 32,936 25,969 27% Other Income 100 49 103% 31 219% 183 52 253% EBIDTA 3720 4203 -12% 4,684 -21
Slide 17: Hira Ferro Alloys Limited – Financial Performance
Hira Ferro Alloys Limited – Financial Performance All figures in INR Mn Particulars Q4FY22 Q3FY22 QoQ% Q4FY21 YoY % FY22 FY21 YoY % Net Sales 1,496 1,886 -21% 964 55% 5,932 3,145 89% Total Expenses 1,264 1,335 -5% 848 49% 4,392 2,833 55% Other Income 62 49 26% 15 313% 151 25 504% EBIDTA 232 550 -58%
Slide 18: Production Summary
Production Summary Description of Goods M.T./ KWH Q4FY22 Q3FY22 QoQ (%) Q4FY21 YoY (%) FY22 FY21 YoY (%) Iron ore Mining M.T.s 673,397 617,585 9% 476,067 41% 2,312,888 1,699,920 36% Iron ore Pellets - GPIL M.T.s 613,000 631,600 -3% 630,600 -3% 2,399,500 2,256,550 6% Iron Ore Pellets - ASL M.T.s 197,
Slide 19: Sales Volume Summary
Sales Volume Summary Description of Goods M.T./ KWH Q4FY22 Q3FY22 QoQ (%) Q4FY21 YoY (%) FY22 FY21 YoY (%) Iron Ore Pellet - GPIL M.T.s 508,187 426,714 19% 442,398 15% 1,664,030 1,607,881 3% Iron Ore Pellet - ASL M.T.s 189,552 177,092 7% 193,791 -2% 770,378 689,882 12% Sponge Iron M.T.s 21,641 58,20
Slide 20: Realisation Summary
Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods INR per Unit Q4FY22 Q3FY22 QoQ% Q4FY21 YoY% FY22 FY21 YoY% Iron Ore Pellet - GPIL INR/M.T.s 11,905 10,836 10% 11,718 2% 12,390 8,607 44% Iron Ore Pellet - ASL INR/M.T.s 9,018 9,847 -8% 10,365 -13% 1
Slide 21: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Mn Particulars 31.03.2022 31.03.2021 Particulars 31.03.2022 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 14,129 19,199 (a) Equity share capital 658 341 (b) Capital work-in-progress 6,427 1,37
Slide 22: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Mn Particulars 31.03.2022 31.03.2021 Particulars 31.03.2022 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 12,995 13,135 (a) Equity share capital 682 341 (b) Capital work-in-progress 4,164 540 (b
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: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Iron ore market was in slight deficit in Q4FY22 due to production disruptions. Russia-Ukraine war disrupted the supply of steel and raw materials thereby increasing demand of iron ore in Europe and Asia. Iron Ore prices in Q4FY22 were range b
Slide 25: Appendix
GODAWARI POWER & ISPAT e APPENDIX e Lite eed IL led
Slide 26: Unique Presence Across Steel Value Chain
Unique Presence Across Steel Value Chain Asset Capacity FY22 Utilisation (%) Asset Capacity FY22 Utilisation (%) Iron Ore MS 0.4 MT 39% Mining 3.05 MT Rounds 76% Iron Ore HB 24% 2.4 MT 92% 0.10 MT 99.98% Pellets Wires 65% Sponge 93% Ferro 16,500 T 0.5 MT Alloys 60500* T Iron 99% 83% 75% Steel Power
Slide 27: Hira Ferro Alloys Limited
Hira Ferro Alloys Limited o Hira Ferro Alloys ltd is a manufacturer of ferro alloys Products Capacity Ferro Alloys 60,500 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 28: 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 improving margins. Started operations at Boria Tibu Mine Po
Slide 29: Simplifying Group Structure
Simplifying Group Structure Associates JVs Godawari Power and Ispat Ltd. 37.85% 33.30% Ardent Steel Raipur Infrastructure Co 75.66% 100% 25.93% Hira Ferro Alloys Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 8.29% 33.96% 35.36% Jagdamba Power & Chhattisgarh Ispat Bhumi Alloys Ltd. (25
Slide 30: 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 0.2 mn MTPA Wire-Rod Mill 0.3 mn MTPA HB wire 73 MW Captive Ppo
Slide 31: Shareholding Pattern as on 31st March 2022
Shareholding Pattern as on 31st March 2022 Shareholding Pattern Break up of Shareholding Pattern Public Shareholding No of Shares % of Total Sh. Institution 2908048 2.06 Non Institution 42893528 30.44 32.50% Total 45801576 32.50 Promoter Shareholding No of Shares % of Total Sh. 67.50% Pledge* 920000
Slide 32: 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 33: Board of Directors
Board of Directors Mr. Vinod Pillai (Non-Executive Mr. B N Ojha (Independent Director) Director) Bachelor of Electrical Engineering 2 decades of experience in Sales, from BIT Sindari with over 4 Administration, Liaison & Logistics; decades of experience; Member of Commerce graduate; Export Committee
Slide 34: 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 35: 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) 2,399,500 1,933,250 1,547,384 2,312,888 2,256,550 1,999,150 1,841,050 1,699,920 1,579,693 1,580,850 1,657,629 1,532,200 1,495,100 326,358 1,175,090 902,550 693,612 657,328 619,
Slide 36: 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) 350,865 16152 344,610 327050 13,70013,13613,772 14,178 298,418 188,190 11,11611,403 10,53710,517 227,581 204,162 197,596 9,434 185,021 177,970 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 37: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 32,170 13,942 34862 13,109 11905 29,908 28,693 10,836 9,017 8,607 20,964 7,872 7,798 19,736 20,645 6,809 7,091 18,27718,934 16,897 16,678 5,067 5,365 13,31012,383 4,360 Steel Billets 45,61147,252 42,785 41,292 31947 33,072 33,545 28,68129,493 27,72
Slide 38: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 50,331 47,969 49,11047,805 47,003 48,034 49,329 45,684 38,332 28,063 40,666 38,740 35,373 33,327 37,335 36,169 34,015 35,182 36,898 33,265 33,409 32,460 34,683 27,034 28,080 26,330 Silico Manganese 107,302 93,428 104997 63,186 87,811 67,611 64,632 63,898
Slide 39: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss All figures in INR Mn Particulars FY22 FY21 FY20 FY19 FY18 Net Sales 53,992 39,576 32,885 33,216 25,274 Total Expenses 35,350 28,206 26,643 25,323 19,305 Other Income 294 34 47 58 87 EBITDA 18,642 11,370 6,289 7,952 6,056 EBITDA Margin (%) 35% 29% 19% 24%
Slide 40: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet All figures in INR Mn Particulars FY22 FY21 FY20 FY19 FY18 Net Worth 34,422 21,080 15,026 13,364 10,837 Non‐Controlling Interest 1,298 724 1,773 1,672 1,604 Debt Long Term Debt 101 7,711 14,645 16,431 18,730 Short Term Debt 4,183 1,254 1,604 1,393 1,344 O
Slide 41: 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 FY2022 Earnings Presentation on 6ix