Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q3 FY22 Earnings Presentation
38 slides from Godawari Power & Ispat's earnings presentation, Jan 31, 2022
Slide 1: Exchange filing cover letter
HIRA GODAWARI POWER & ISPAT REF: GPIL/NSE & BSE/2022/4626 Date: 31.01.2022 To, • 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 Da
Slide 2: Q3 FY22 Investor Presentation
Q3 FY22 Investor Presentation 31st January’2022
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: Q3FY22: Operating and Financial Performance
Q3FY22: Operating and Financial Performance Operating Performance Financial Performance (Consolidated) Iron Ore production 617 kmt, up 28% Turnover Rs. 1607 Cr, up 42% YoY YoY Iron Ore Pellets (GPIL) sales volume 426 EBITDA Rs. 492.8 Cr, up 42% YoY kmt, up 18% YoY Steel Billets realisation INR 45,61
Slide 5: Q3FY22: Consolidated Financial & Operating Performance
Q3FY22: Consolidated Financial & Operating Performance Financial Performance (in Mn) Sales EBITDA PAT Credit Rating A+/STABLE 1,609 16,066 (by CRISIL) 11,317 3,470 3,286 4,928 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Production Summary (MT) Iron Ore Production Pellet (GPIL) Sponge Iron Ferro Alloys
Slide 6: Consolidated debt substantially reduced
Consolidated debt substantially reduced. Standalone debt zero, as on date: Gross Debt (INR Mn) 22145 21237 18856 16967 9441 4400 3268 3222* FY17 FY18 FY19 FY20 FY21 Q1FY22 Q2FY22 Q3FY22 *In January’2022, GGEL has repaid Rs. 1,969 Mn. of term loan using surplus cash flow from the parent GPIL. So rema
Slide 7: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q3FY22 Q2FY22 QoQ% Q3FY21 YoY % 9MFY22 9MFY21 FY21 Net Sales 16,066 12,744 26% 11,317 42% 40,407 28,097 40,719 Total Expenses 11,138 8,380 33% 7,846 42% 25,091 20,704 28,430 Other Income 81 27 200% 8 858% 118 26 40 EBIDTA 4,928 4,36
Slide 8: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q3FY22 Q2FY22 QoQ% Q3FY21 YoY % 9MFY22 9MFY21 FY21 Net Sales 14,015 12,467 12% 9,538 47% 37,744 24,042 36,409 Total Expenses 9,811 8,311 18% 6,744 45% 23,653 18,286 25,969 Other Income 49 25 96% 7 636% 83 21 52 EBIDTA 4,203 4,156 1% 2
Slide 9: Godawari Green Energy Ltd. - Financial Performance
Godawari Green Energy Ltd. - Financial Performance All figures in INR Mn Particulars Q3FY22 Q2FY22 QoQ% Q3FY21 YoY % 9MFY22 9MFY21 FY21 Net Sales 213 246 -13% 249 -14% 794 887 1,143 Total Expenses 58 48 22% 59 -1% 148 168 224 Other Income 1 37 -96% 2 -7% 40 5 7 EBIDTA 155 198 -22% 190 -19% 646 719 9
Slide 10: Hira Ferro Alloys Limited – Financial Performance
Hira Ferro Alloys Limited – Financial Performance All figures in INR Mn Particulars Q3FY22 Q2FY22 QoQ% Q3FY21 YoY % 9MFY22 9MFY21 FY21 Net Sales 1,886 1,385 36% 828 128% 4,436 2,180 3,145 Total Expenses 1,335 910 47% 762 75% 3,128 1,985 2,833 Other Income 49 30.778 60% 3 1312% 89 10 25 EBIDTA 550 47
Slide 11: Q3FY22 Production Summary
Q3FY22 Production Summary Description of Goods M.T./ KWH Q3FY22 Q2FY22 QoQ (%) Q3FY21 YoY (%) 9MFY22 9MFY21 FY21 Iron ore Mining M.T.s 617,585 462,836 33% 482,389 28% 1,639,490 1,223,853 1,699,920 Iron ore Pellets - GPIL M.T.s 631,600 552,050 14% 544,500 16% 1,786,500 1,625,950 2,256,550 Iron Ore Pe
Slide 12: Q3FY22 Sales Volume Summary
Q3FY22 Sales Volume Summary Description of Goods M.T./ KWH Q3FY22 Q2FY22 QoQ (%) Q3FY21 YoY (%) 9MFY22 9MFY21 FY21 Iron Ore Pellet - GPIL M.T.s 426,714 340,192 25% 360,688 18% 1,155,843 1,165,484 1,607,881 Iron Ore Pellet - ASL M.T.s 177,092 217,959 -19% 205,958 -14% 580,826 496,092 689,882 Sponge I
Slide 13: Q3FY22 Realisation Summary
Q3FY22 Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods INR per Unit Q3FY22 Q2FY22 QoQ% Q3FY21 YoY% 9MFY22 9MFY21 FY21 Iron Ore Pellet - GPIL INR/M.T.s 10,836 13,109 -17% 9,037 20% 12,593 7,343 8,607 Iron Ore Pellet - ASL INR/M.T.s 10,265 12,474 -
Slide 14: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Mn Particulars 30.09.2021 31.03.2021 Particulars 30.09.2021 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 19,641.10 19,198.50 (a) Equity share capital 329.10 341.10 (b) Capital work-in-progres
Slide 15: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Mn Particulars 30.09.2021 31.03.2021 Particulars 30.09.2021 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 12,781.00 13,134.50 (a) Equity share capital 341.10 341.10 (b) Capital work-in-progress
Slide 16: Captive Mining Provides Strategic Edge
Captive Mining Provides Strategic Edge 10,500 8500 8600 6,800 4,346 4,270 3,500 3,200 3,000 2,750 3,150 3011 2,600 2,740 2,310 2,462 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Q2FY22 Q3FY22 Market Price of Iron Ore Captive Ore Landed Cost 15
Slide 17: Near Term Growth Triggers; Low-cost capacity Expansion
Near Term Growth Triggers; Low-cost capacity Expansion Particulars Capacity FY21 Capex Capacity FY22 Current Status Mining production ramp-up in 2nd half. Beneficiation plant at mine to commission in H2FY23. Capex Iron Ore Mining 2.1 mt INR 1250 Mn* 3.0 mtpa increased on account of setting up benefi
Slide 18: Near Term Growth Triggers; Low-cost capacity Expansion Continued
Near Term Growth Triggers; Low-cost capacity Expansion Continued… Capacity Particulars Capacity FY21 Capex Current Status FY22/FY23 Solar PV Projects Construction started. Solar modules to be GPIL - Rajnandgaon - INR 2600 Mn. 70 MW delivered by March’22. Project commissioning expected by end of Q1FY
Slide 19: Delivering on Strategy 2.0
Delivering on 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 stee
Slide 20: 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 21: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Iron ore prices have recovered to US$139/t up almost 50% from the bottom seen in last quarter. Platts is forecasting a deficit in supply for next 2 quarters assuming mild recovery in China's steel production. This should keep iron ore price w
Slide 22: Building a Strong Organisation
Building a Strong Organisation Cash Flow from Operation Cash Flows from Operation Capex Free Cash Flows 9,826 5,498 5,508 4,511 7,772 2,145 1,657 716 1,063 1,732 146 827 515 FY17 FY18 815 FY19 FY20 FY 21 -3,161 Net Debt/EBITDA (x) Net Debt/Equity (x) 8.14 2.75 1.94 3.11 1.27 2.32 0.91 1.95 0.42 0.72
Slide 23: Appendix
GODAWARI POWER & ISPAT APPENDIX
Slide 24: 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 99% Alloys Iron 86% 75% Steel Power 73 MW*; Billets
Slide 25: Hira Ferro Alloys Limited
Hira Ferro Alloys Limited o Hira Ferro Alloys ltd is a manufacturer of ferro alloys Products Capacity Ferro Alloys 61,500 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 26: 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 27: Group Structure
Group Structure Associates JVs Godawari Power and Ispat Ltd. 37.85% 33.30% Ardent Steel Raipur Infrastructure Co 99.95% 100% Godawari Green Energy 25.93% Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 56.45% 33.96% 35.36% Jagdamba Power & Hira Ferro Alloys Ltd. Chhattisgarh Ispat Bhumi
Slide 28: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha Solar Thermal Power Plant 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 29: Shareholding Pattern as on December 2021
Shareholding Pattern as on December 2021 Shareholding Pattern Break up of Shareholding Pattern Public Shareholding No of Shares % of Total Sh. Institution 3265045 2.32 Non Institution 42536531 30.18 32.50% Total 45801576 32.50 Promoter Shareholding No of Shares % of Total Sh. 67.50% Pledge* 20920000
Slide 30: 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; star
Slide 31: Board of Directors
Board of Directors Mr. Vinod Pillai (Executive Mr. Dinesh Gandhi Director) (Non-Executive Director) 2 decades of experience in Sales, Administration, Liaison & Logistics; 3 decades of experience in Commerce graduate; plays vital role Accounts, Finance & Project in commissioning of new projects of Fi
Slide 32: 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 6,57,328 9,02,550 4,44,695 6,19,620 3,26,358 FY
Slide 33: 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 34: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 32,170 13,942 29,908 13,109 28,693 10,836 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 Steel Billets 45,611 42,785 41,292 31947 33,072 33,545 28,68129,493 27,720 28,590 22,6892
Slide 35: Past Sales Realisations
Past Sales Realisations H.B. Wire M.S. Round 50,331 47,969 49,110 47,003 48,034 45,684 28,063 40,666 38,332 38,740 37,335 36,169 34,015 35,182 36,898 35,373 34,683 33,265 33,409 32,460 33,327 28,080 27,034 26,330 GPIL Ferro Alloys 1,07,302 93,428 87,811 67,611 64,632 63,186 53,783 53,365 52,696 63,8
Slide 36: 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 37: 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 38: Thank you
Thank you Investor Relations Contact: Sana Kapoor Sheetal Khanduja Go India Advisors Go India Advisors sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com M:+91 81465 50469 M:+91 97693 64166 Company Contact: Sanjay Bothra YC Rao sanjay.bothra@hiragroup.com Yarra.rao@hiragroup.com Godawari Power and
Godawari Power and Ispat — Q3 FY22 Earnings Presentation on 6ix