Gallantt Ispat Limited · NSE:GALLANTT
Gallantt Ispat — Q3 FY24 Earnings Presentation
29 slides from Gallantt Ispat's earnings presentation, Jan 18, 2024
Slide 1: Letter to exchanges: Revised Press Release
' GrLlGKPl2o23-24 January 1.8, 2024 BSE Limited National Stock Exchange of India Floor 25, P J Towers, Dalal Street Limited Mumbai- 400 001. INDIA. "EXCHANGE PLAZA", Scrip Code: 532726 Bandra - Kurla Complex, Bandra (East) Mumbai - 400 051. INDIA. Symbol: GALLANTT Sir/Madam, SUB: REVISED PRESS RELEA
Slide 2: Gallantt Ispat Limited Q3 & 9M FY24 Investor Presentation
Gallantt Ispat Limited Q3 & 9M FY24 Investor Presentation Presence, Efficiency, Scale
Slide 3: Safe Harbour
The following slides may contain “forward looking statements” including, statements relating to the implementation of strategic initiatives by Gallantt Ispat Limited (“GIL” or “Company”) and future business developments and economic performance. While these forward looking statements indicate the Co
Slide 4: Presence Efficiency Scale
Presence Efficiency Scale Profitable growth on Leading manufacturer the back of strong cost of TMT bars – Capacity: optimisation thrust and 950,000 TPA value addition Well entrenched presence in key Strong relationships in consumption states of both private and Uttar Pradesh and public sector Gujara
Slide 5: The Gallantt locational advantage
Presence Efficiency Scale The Gallantt locational advantage Gorakhpur, Uttar Pradesh o Only company in Eastern Uttar Pradesh; a region which is witnessing significant development o Enhanced customer serviceability: • Shorter delivery times • Ability to deliver small quantities offering dealer bene
Slide 6: Our journey
Our journey 2005 2009 2012 – (2022) 2020 2022 Commencement of Commencement of Capacity Completed Installation of commercial commercial operation expansions across execution of Real Modern materials operations at 1.7 at 1.67 lakh MTPA both Estate Premium movement Wagon lakh MTPA integrated steel manu
Slide 7: Capacity overview
Presence Efficiency Scale Capacity overview Plant wise breakup TOTAL Type Units Total Sponge Iron MT 9,18,000 Steel Melt Shop MT 9,57,000 Rolling Mill MT 9,50,400 Power Plant MW 129 Pellet Plant MT 7,92,000 Gorakhpur, Uttar Pradesh Type Units Total Sponge Iron MT 5,44,500 Steel Melt Shop MT 5,28,000
Slide 8: Financial overview Q3 & 9M FY24
Financial overview Q3 & 9M FY24 Revenue EBITDA PAT (Rs. Crore) (Rs. Crore) (Rs. Crore) 1,006.89 1,063.82 107.69 51.97 5.6% 24.9% 148% 86.21 20.91 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Revenue EBITDA PAT (Rs. Crore) (Rs. Crore) (Rs. Crore) 2,964.49 3,053.21 268.13 129.94 2.9% 242.14 10.7% 78% 72.
Slide 9: Production and sales volumes Q3 FY24
Presence Efficiency Scale Production and sales volumes Q3 FY24 Production volumes Sales volumes TOTAL TOTAL DRI Steel Melt Shop Rolling Mill DRI Steel Melt Shop Rolling Mill Period Power Plant Pellet Period Power Plant (Sponge Iron) (Billet) (TMT Bars) (Sponge Iron) (Billet) (TMT Bars) MW MW Unit MT
Slide 10: Production and sales volumes 9M FY24
Presence Efficiency Scale Production and sales volumes 9M FY24 Production volumes Sales volumes TOTAL TOTAL DRI Steel Melt Shop Rolling Mill DRI Steel Melt Shop Rolling Mill Period Power Plant Pellet Period Power Plant (Sponge Iron) (Billet) (TMT Bars) (Sponge Iron) (Billet) (TMT Bars) MW MW Unit MT
Slide 11: Chairman's Message
Chairman’s Message Chairman and MD, Chandra Prakash Agrawal commenting on the Q3 & 9M FY24 results, “We are pleased to deliver another quarter of robust financial performance. We have seen a strong improvement in profitability well driven by several operating efficiency and cost rationalization init
Slide 12: Driving operational efficiencies
Driving operational efficiencies
Slide 13: Backward integration: Pellets and Coal
Presence Efficiency Scale Backward integration Pellets Coal 792,000 MT/annum pellets capacity in Gorakhpur Linkages with Northern Coalfields Limited and caters to entire production requirement National Coal Mines ensures continued Captive production estimated to be ~10‐15% availability lower t
Slide 14: Logistics and power: Rail infrastructure, Captive Power
Presence Efficiency Scale Logistics and power Rail Captive infrastructure Power Railway rakes at both units to facilitate efficient Total captive power capacity: 129 MW material movement and connectivity Availability of captive power ensures minimal Modern material wagon tippler at Gorakhpur
Slide 15: Power: Own vs purchased
Presence Efficiency Scale Power: Own vs purchased % of Captive power consumed – % of Captive power consumed – Kutch, Gorakhpur, UP Gujarat 95.4% 94.7% 98.2% 98.8% 98.6% 97.2% 95.7% 95.9% 96.1% 90.1% 90.4% 88.8% 92.5% 91.5% 93.0% 84.4% 84.8% 78.3% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY
Slide 16: Value Addition thrust
Value Addition thrust
Slide 17: Premium offerings
Presence Efficiency Scale Premium offerings Evaluating the introduction of a stronger and more durable value added offering under the brand Gallantt Advance Bollywood star Ajay Devgn is the brand ambassador Emphasis on branding, use of electronic and social media 16
Slide 18: EPC and construction
Presence Efficiency Scale EPC and construction Evaluating opportunities to monetise ~27.5 acre land owned by Gallantt Ispat Group Housing project with ultra modern facilities under the name “Shalimar Gallant” Plans to also commence construction of hotels and malls 17
Slide 19: The Gallantt Group
Presence Efficiency Scale The Gallantt Group Gallantt Cement • Cement manufacturing unit at Gorakhpur with an annual capacity of 6,00,000 MTPA • Commenced commercial operations in 2022 Gallantt Flour • Modern Flour Mill unit with an annual production capacity of 1,08,000 MTPA • Commenced commercial
Slide 20: Dealer & Distributor strength and relationship
Presence Efficiency Scale Dealer & Distributor strength and relationship Thrust on expanding and Catering to 2700 dealers and deepening distribution 34 distributors in Uttar network to reach further Into Pradesh and Gujarat for close areas in Uttar Pradesh seeing to 2 decades Infrastructure developm
Slide 21: Capex plans & timelines
Presence Efficiency Scale Capex plans & timelines Direct Reduced Iron (DRI) Kiln having a capacity of 1,65,000 MTPA at the Company’s manufacturing facilities at Gorakhpur, Uttar Pradesh is expected to be completed by FY2025. The cost for this is ~Rs. 125 crore The Company proposes to install an addi
Slide 22: ESG Initiatives
Presence Efficiency Scale ESG Initiatives Modern technology Plantations at factory Water conservation and equipment to premises and harvesting lesser consumption of electricity Recycling of water and other natural Modern equipment to Regular training follow pollution resources across programs across
Slide 23: Promoter Group
Promoter Group CHANDRA PRAKASH AGRAWAL DINESH R. AGARWAL NITIN M KANDOI Chairman & Managing Director Director – Administration Director-Plant Operation • First generation entrepreneur • First generation entrepreneur, • Actively involved in the possessing more than 37 years having over three decades
Slide 24: Uttar Pradesh, Gujarat – Strong infrastructure investment thrust
Presence Efficiency Scale Uttar Pradesh, Gujarat – Strong infrastructure investment thrust Strong infrastructure push in both states of operation driven by public and private sector participation Key infrastructure projects: Uttar Pradesh Project Name Sector Total Project Cost (in Rs. crore) Road Up
Slide 25: Growth outlook
Presence Efficiency Scale Growth outlook Efficiencies Technological upgradation across facilities to enhance capacity utilization from present 80% to 95% Benefits expected to be visible in FY25 Installation of Modern Rail tippler contributing towards lower wastage faster turnaround time Full ben
Slide 26: Financial outlook
Presence Efficiency Scale Financial outlook Revenue CAGR of 6% over the next three years. FY26 (E) revenue: ~Rs. 5,000 crore +/‐5% EBITDA margins expected to expand 400 basis points from 9% in FY23 to 13% in FY26 EBITDA to grow at a three year CAGR of 20% Productivity and growth initiatives to be dr
Slide 27: P&L Q3 & 9M FY24
P&L Q3 & 9M FY24 STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED December 31, 2023 Rs. in Lakhs Quarter ended Nine Months ended Year ended Sr. Particulars 31.12.2023 30.09.2023 31.12.2022 31.12.2023 31.12.2022 31.03.2023 No. Unaudited Unaudited Unaudited Una
Slide 28: Contact Us
Contact Us Nitesh Kumar (Head ‐ Investor Relations) Gallantt Ispat Limited Tel: +91 99034 62248 Email: nitesh@gallantt.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ +91 77770 35061 Email: gavin@cdr‐india.com / rishab@cdr‐india.com 27
Slide 29: Thank You
Thank You