Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q1 FY22 Earnings Presentation
35 slides from Godawari Power & Ispat's earnings presentation, Jul 27, 2021
Slide 1: Godawari Power & Ispat – Exchange Filing Cover Letter
GODAWARI POWER & ISPAT REF: GPILINSE & BSE/202114426 Date: 27.07.2021 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, Bandra (E), Mumbai - 400051 Dalal
Slide 2: Q1 FY22 Investor Presentation
Q1 FY22 Investor Presentation
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: Strategy 1.0 – Deleveraging, Asset Optimisation and Exiting Non Core Assets
Strategy 1.0 – Deleveraging, Asset Optimisation and Exiting Non Core Assets Objective Action Taken Current Status o Long term Debt Fully repaid in standalone business o Repaid INR 1800 Crore long term o Consolidated Debt/Equity reduced o Balance Sheet Strengthening debt over last 4 years - date to 0
Slide 5: Strategy 2.0 – Transitioning to a Fully Integrated Primary Producer
Strategy 2.0 – Transitioning to a Fully Integrated Primary Producer Objective Action Taken Current Status o Land identification done o Signed an MoU with Chhattisgarh o Capex and technology details being o Transitioning to a fully finalised Government to set up a 1.5 -2.0 integrated steel producer m
Slide 6: Near Term Growth Triggers; Low-cost capacity Expansion
Near Term Growth Triggers; Low-cost capacity Expansion Capacity FY21 Capex Capacity FY22 Iron Ore Mining 2.1mt INR 750 mn 3.0 mtpa Iron Ore Beneficiation 1.0mt INR 150 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 INR 600 mn 0.7mtpa Billets 5
Slide 7: Q1 FY22: Operating and Financial Performance
Q1 FY22: Operating and Financial Performance Record Operating Performance o Highest ever Iron Ore production of 559 kmt o Highest ever Steel Billets production of 115 kmt Record Financial Performance o EBITDA up 354% YoY at INR 573 crore o PBT up 759 % YoY at INR 538 crore o PAT up 967 % YoY at INR
Slide 8: Hira Ferro Alloys Limited
Hira Ferro Alloys Limited o Hira Ferro Alloys ltd is a manufacturer of ferro alloys Products Capacity Q1 FY22 Financial Performance INR Crore Ferro Alloys 61,500 TPA Revenue 116.53 Captive Thermal Power 20 MW EBITDA 28.24 Bio Mass (IPP) 8.5 MW EBITDA Margin 24.2% Wind Power (IPP) 1.5 MW PAT 18.03 Ne
Slide 9: Consolidated debt substantially reduced.
Consolidated debt substantially reduced. Standalone debt zero, as on date: Gross Debt (INR Mn) 22145 21237 18856 16967 9441 4400 3410 FY17 FY18 FY19 FY20 FY21 Q1FY22 As on 27th July *consolidated 8
Slide 10: Q1FY22: Consolidated Financial & Operating Performance
Q1FY22: Consolidated Financial & Operating Performance Financial Performance (in Mn) Sales EBITDA PAT Credit Rating 11,262 A/STABLE 1,263 4,373 (by CRISIL, India Rating 5,731 6,746 410 and CARE) Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY21 Q1FY22 (Standalone) Production Summary (MT) Iron Ore Production Pellet
Slide 11: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q1FY22 Q4FY21 QoQ% Q1FY21 YoY % FY21 Net Sales 11,262 12,366 -9% 6,746 67% 39,576 Total Expenses 5,531 7,670 -28% 5,483 1% 28,206 Other Income 10 13 -24% 9 7% 34 EBIDTA 5,731 4,696 22% 1,263 354% 11,370 EBIDTA Margin (%) 50.9% 38.0%
Slide 12: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q1FY22 Q4FY21 QoQ% Q1FY21 YoY % FY21 Net Sales 11,262 12,366 -9% 5,740 96% 36,409 Total Expenses 5,531 7,683 -28% 4,776 16% 25,969 Other Income 9 31 -72% 9 -2% 52 EBIDTA 5,731 4,684 22% 963 495% 10,440 EBIDTA Margin (%) 50.9% 37.9% 16
Slide 13: Q1FY22 Production Summary
Q1FY22 Production Summary Description of Goods M.T./ KWH Q1FY22 Q4FY21 QoQ% Q1FY21 YoY% FY21 Iron Ore Mining M.T.s 5,59,070 4,76,067 17% 3,21,807 74% 16,99,920 Iron Ore Pellet - GPIL M.T.s 6,02,850 6,30,600 -4% 4,64,150 30% 22,56,550 Iron Ore Pellet - ASL M.T.s 1,75,346 2,21,882 -21% 1,85,149 -5% 7,
Slide 14: Q1FY22 Sales Volume Summary
Q1FY22 Sales Volume Summary Description of Goods M.T./ KWH Q1FY22 Q4FY21 QoQ% Q1FY21 YoY% FY21 Iron Ore Pellet - GPIL M.T.s 3,88,937 4,42,398 -12% 3,80,301 2% 16,07,881 Iron Ore Pellet - ASL M.T.s 1,85,776 1,93,791 -4% 1,80,166 3% 6,89,882 Sponge Iron M.T.s 5,378 22,780 -76% 8,284 -35% 1,04,289 Stee
Slide 15: Q1FY22 Realisation Summary
Q1FY22 Realisation Summary Description of Goods M.T./ KWH Q1FY22 Q4FY21 QoQ% Q1FY21 YoY% FY21 Iron Ore Pellet - GPIL M.T.s 13,942 11,718 19% 6,124 128% 8,607 Iron Ore Pellet - ASL M.T.s 11,152 10,365 8% 5,353 108% 7,486 Sponge Iron M.T.s 28,693 24,591 17% 15,100 90% 20,645 Steel Billets M.T.s 41,292
Slide 16: Captive Mining Provides Strategic Edge
Captive Mining Provides Strategic Edge 10,500 6,800 4,346 4,270 3,500 3,200 3,000 2,750 2,600 2,740 2,310 2,462 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Market Price of Iron Ore Captive Ore Landed Cost 15
Slide 17: Stronger Balance Sheet
Stronger Balance Sheet Repaid INR 7.2 Billion in FY21; Long term debt reduced by 47% GPIL Standalone Repayment GGEL Repayment 10,550 3,410 4,570 990 3,600 (190) (3,580) (5,980) 4,100 (500) FY 20 Repayment FY21 Repayment Q1FY22 FY 20 Repayment FY21 Repayment Q1FY22 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: 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 20: 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 21: Appendix
AHIRA- GODAWARI POWER & ISPAT APPENDIX
Slide 22: 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 3.0 mt 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 Alloys Iron 99% 86% 75% Steel Power 73 MW*; Billets
Slide 23: 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 24: 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 25: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Solar Thermal Power Plant Odisha Keonjhar: 0.8 mn MTPA Rajasthan: 50MW Siltara Integrated Plant Chhattisgarh 3.24 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
Slide 26: Shareholding Pattern as on June 2021
Shareholding Pattern as on June 2021 Shareholding Pattern Break up of Shareholding Pattern Shareholding % of Total Sh. Institution 2.21% 32.50% Non Institution 30.35% Total 32.50% 67.50% Promoter Shareholding % of Total Sh. Pledge* 32.51% Total 67.50% Promoter Public * Pledged with lenders as an add
Slide 27: Board of Directors
Board of Directors Mr Biswajit Choudhary (Chairman & Independent Director) Mr BL Agarwal 5 decades of experience in Managing Director Engineering, Banking & Finance; • 1st generation entrepreneur with Mechanical Engineering from IIT, almost 4 decades of experience; Kharagpur Graduated as an electron
Slide 28: Board of Directors
Board of Directors Mr. Dinesh Gandhi Mr. Vinod Pillai (Executive Director) (Non-Executive Director) 2 decades of experience in Sales, Administration, Liaison & Logistics; 3 decades of experience in Commerce graduate; plays vital Accounts, Finance & Project role in commissioning of new Financing; Cha
Slide 29: 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) 15,47,384 16,99,920 19,33,250 22,56,550 15,79,693 16,57,629 14,95,100 19,99,150 18,41,050 11,75,090 15,32,200 15,80,850 6,93,612 9,02,550 6,57,328 6,19,620 4,44,695 3,26,358 FY
Slide 30: 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) 3,44,610 13,772 3,50,865 13,700 13,136 14,178 2,98,418 11,116 11,403 1,97,596 10,537 10,517 1,88,190 2,27,581 9,434 2,04,162 1,85,021 1,77,970 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 31: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 13,942 28,693 20,964 19,736 20,645 9,017 8,607 18,277 18,934 7,872 7,798 16,678 16,897 6,809 7,091 13,310 12,383 5,067 5,365 4,360 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Q1FY22 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Q1FY22 S
Slide 32: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 47,003 45,684 40,666 38,332 38,740 37,335 34,683 36,169 34,015 35,182 36,898 35,373 33,265 33,409 32,460 33,327 28,080 28,063 27,034 26,330 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Q1FY22 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 Q1FY22
Slide 33: 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 34: 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 35: Thank you
Thank you Investor Relations Contact: Niharika Shah Sheetal Khanduja Go India Advisors Go India Advisors niharika@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com M:+91 97690 98986 M:+91 97693 64166 Company Contact: Sanjay Bothra YC Rao sanjay.bothra@hiragroup.com Yarra.rao@hiragroup.com Godawari Pow
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