Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q3 FY2023 Earnings Presentation
41 slides from Godawari Power & Ispat's earnings presentation, Feb 11, 2023
Slide 1: Exchange filing cover letter for Q3-9M FY23 investor presentation
i--rm F egF t© q3 air HIIEL OODAWARI POWER a lspAT REF: GPILINSE & BSE/2023/5053 Date: 11.02.2023 To, 1 . The Listing Department, 2. The corporate Relation Department, The National Stock Exchange of India Ltd, The BSE Limited, Mumbai, Exchange Plaza, BandraKurla Complex, I S' Floor, Rotunda Building
Slide 2: Q3 & 9MFY23 Investor Presentation
Q3 & 9MFY23 Investor Presentation 11th February’2023
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: Q3FY23 Key Highlights
Q3FY23 Key Highlights o Revenue increased to Rs.1463 Cr.; up 12 % QoQ and Decrease by 9% on YoY basis. o EBITDA for the quarter dropped to Rs. 173.10 Cr. majorly because of lower Financial Performance realisations on YoY & QoQ basis. (Consolidated) o PAT for Q3 is Rs.127.98 Cr. and EPS for the quart
Slide 5: Drivers of Performance in Q3FY23
Drivers of Performance in Q3FY23 Particulars Current Status • Iron ore mining as well as iron ore pellets production has increased by 4% & 2% YoY. Production Volumes • Also, there has been a significant increase in production of other products like HB Wires and Galvanized Fabricated products on YoY
Slide 6: Update on Stated Guidance
Update on Stated Guidance FY23 Guidance Current Status Iron ore mining – 3.05 MnT Iron Ore Mining in 9MFY23 – 2.0MnT Iron ore Pellets – 2.7 MnT Iron Ore Pellets in 9MFY23 – 1.9MnT Consolidated Capex – Rs.4,000Mn Consolidated Capex in 9MFY23 – Rs. 2,715 Mn Current status - Consolidated Consolidation
Slide 7: New Capex Plan
New Capex Plan Category Capacity (MnT) Capex (approx.) Est. Time Iron Ore Mining 2.35 3.65 6MnT (Ari Dongri Mines) 18 ₹ 200Cr Months Iron Ore [VALUE]MnT Beneficiation Plant (Ari Dongri) 36 Pellets 2.7 3.0* 5.7MnT ₹ 800Cr Months Existing Capacity Additional Plan *capacity changed to 3.0 Mnt GPIL inte
Slide 8: Strong Future Outlook - Low-cost Capacity Expansion
Strong Future Outlook - Low-cost Capacity Expansion* Capacity FY22 Capex (in Rs. Mn) Particulars Already Balance to be Current Status FY22 FY23 Total incurred incurred Mining production capacity has been ramped & setting up of Iron Ore Mining, Crushing & Crushing facilities has been completed. BMQ B
Slide 9: Carbon Footprint Reduction Strategy
Carbon Footprint Reduction Strategy* Capex (in Rs. Mn) Particulars Capacity Already Balance to Total Current Status incurred be incurred Solar PV Projects Plant commissioned on 6th August’2022 GPIL - Rajnandgaon 70 MW 2475 2475 0 and started generating power for captive consumption. Land acquisition
Slide 10: Journey towards Green Energy
Journey towards Green Energy Existing Revised Unit Energy Source MW % MW % Fossil 41 38 GPIL Green 72 76.5 Fossil 20 20 HFAL Green - 8 Fossil 8 8 AFAL Green - - Fossil 69 49% 66 44% Total Green 72 51% 84.5 56% 141 150.5 Notes: • Solar Power Capacity considered at 15% of Installed Capacity due to PLF
Slide 11: Production Summary
Production Summary Iron Ore Mining Iron Ore Pellets - GPIL Sponge Iron 617,585 618,808 645,114 631,600 644,900 642,050 142,740 143,578 127,860 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Steel Billets M.S. Rounds/TMT Ferro Alloys 3,518 - 71,966 1,922 102,395 12,820 87,005 81,570 5
Slide 12: Sales Volume Summary
Sales Volume Summary Iron Ore Pellets - GPIL Sponge Iron Steel Billets 531,877 58,205 43,544 426,714 463,593 48,598 34,705 19,114 10,347 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 M.S. Rounds/TMT Ferro Alloys Galvanized Fabricated Products 2,940 495 18773 72,249 1,756 12,601 1594
Slide 13: Realisation Summary
Realisation Summary (Ex plant realisation excluding export freight and expenses) Iron Ore Pellets - GPIL Sponge Iron Steel Billets 33,873 49,626 10,836 32,170 31,948 46,573 8,186 8,284 45,611 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 M.S. Rounds/TMT Ferro Alloys - HFAL Galvanize
Slide 14: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q3FY23 Q2FY23 QoQ% Q3FY22 YoY % 9MFY23 9MFY22 FY22 Net Sales 14,630 13,071 12% 16,066 -9% 44,364 40,407 53,992 Total Expenses 12,899 10,763 20% 11,138 16% 35,717 25,091 35,350 Other Income 361 262 38% 81 346% 784 118 294 EBITDA 1,73
Slide 15: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q3FY23 Q2FY23 QoQ% Q3FY22 YoY % 9MFY23 9MFY22 FY22 Net Sales 13,781 12,011 15% 14015 (2%) 40,619 37,744 50,746 Total Expenses 12,015 9,688 24% 9811 22% 32,247 23,653 32,936 Other Income 336 263 28% 49 586% 713 83 183 EBITDA 1766 2,323
Slide 16: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 7,800 7,300 6,800 5500 4,500 4,346 4,270 3,500 3,200 3,000 2,750 2,800 2,900 2,900 2900 2,600 2,462 2,310 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Market Price of Iron Ore Captive Ore Landed Cost
Slide 17: 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 -5,382 FY17 FY18 FY19 FY20 FY21 FY22 Q2FY23 Short term borrowings are not included in calculation of Net Debt.
Slide 18: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Mn Particulars 30.09.2022 31.03.2022 Particulars 30.09.2022 31.03.2022 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 18,197 14,129 (a) Equity share capital 649 658 (b) Capital work-in-progress 4,837 6,42
Slide 19: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Mn Particulars 30.09.2022 31.03.2022 Particulars 30.09.2022 31.03.2022 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 16,878 12,995 (a) Equity share capital 682 682 (b) Capital work-in-progress 1,537 4,164
Slide 20: Building a Strong Organisation
Building a Strong Organisation All figures in INR Mn Cash Flows from Operation Capex Free Cash Flows Interest 13,303 9,688 7,043 6,063 5,508 5,498 5,508 7,753 4,511 3,771 2,212 3,140 1,634 2,581 1,699 1,755 1,051 556 691 146 530 760 396 -448 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY 21 FY22 827 -2,975 -
Slide 21: 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 22: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Global outlook for iron ore is positive. Prices of iron ore have risen from a low of $78/t made late last year to more $125/t currently. The sudden shift in China’s covid policy has turned the sentiment. China is looking to revive it’s fledgl
Slide 23: APPENDIX
GODAWARI POWER & ISPAT APPENDIX Lite eed IL led
Slide 24: 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 25: 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 0.10 MT 99.98% Pellets 92% Wires 65% Sponge Ferro 16,500 T 0.5 MT 93% Alloys 60500* T Iron 99% 83% Steel 75% Power
Slide 26: 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 27: 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 28: 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 29: Detailed Production Summary
Detailed Production Summary Description of Goods M.T./ KWH Q3FY23 Q2FY23 QoQ (%) Q3FY22 YoY (%) 9MFY23 9MFY22 FY22 Iron ore Mining M.T.s 6,45,114 618,808 4% 617,585 4% 20,22,228 16,39,491 2,312,888 Iron ore Pellets - GPIL M.T.s 6,42,050 644,900 0% 631,600 2% 19,54,300 17,86,500 23,99,500 Sponge Iron
Slide 30: Detailed Sales Volume Summary
Detailed Sales Volume Summary Description of Goods M.T./ KWH Q3FY23 Q2FY23 QoQ (%) Q3FY22 YoY (%) 9MFY23 9MFY22 FY22 Iron Ore Pellet - GPIL M.T.s 4,63,593 531,877 -13% 426,714 9% 14,06,137 1,155,843 1,664,030 Sponge Iron M.T.s 19,114 48,598 -61% 58,205 -67% 1,17,973 104,730 126,371 Steel Billets M.T
Slide 31: Detailed Realisation Summary
Detailed Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods INR per Unit Q3FY23 Q2FY23 QoQ (%) Q3FY22 YoY (%) 9MFY23 9MFY22 FY22 Iron Ore Pellet - GPIL INR/M.T.s 8,284 8,186 1% 10,836 -24% 9,214 12,593 12,390 Sponge Iron INR/M.T.s 31,948 33,873 -6%
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 Raj Kamal Bindal (Independent Mr. Vinod Pillai (Non-Executive Director) Director) MCOM, CA & MBA; 22 years experience 2 decades of experience in Sales, in areas of Energy, Infrastructure, Project Administration, Liaison & Logistics; Management, Financial Services and Commerce g
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 2,312,888 1,933,250 1,547,384 2,256,550 1,580,850 1,999,150 1,841,050 1,699,920 1,657,629 1,532,200 1,495,100 1,579,693 902,550 1,175,090 619,620 326,358 693,612 657,
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 Silico Manganese (mt) 350,865 16,152 344,610 327,050 14,178 13,700 13,772 204,162 298,418 13,136 188,190 11,116 11,403 227,581 10,537 10,517 197,596 9,434 185,021 177,970 FY 13 FY 14 FY 15 FY 16 FY
Slide 37: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 33,873 12,390 34,457 7,798 11,596 31,948 31,746 18,277 9,017 8,607 7,872 8,186 8,284 6,8097,091 20,964 19,736 20,645 18,934 5,365 16,678 16,897 5,067 13,310 4,360 12,383 Steel Billets 46,573 53,076 28,681 49,626 43,427 31947 21,830 33,072 33,545 29
Slide 38: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 55,030 56,944 53,383 57,551 33,265 48,092 49,574 51,969 47,981 26,330 38,740 37,335 28,063 35,373 33,327 38,332 36,169 40,666 33,409 32,460 35,182 36,898 34,683 34,015 27,034 28,080 Silico Manganese 98,222 95,222 67,611 51,665 78,414 64,632 63,898 63,186
Slide 39: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss All figures in INR Mn Particulars 9MFY23 FY22 FY21 FY20 FY19 FY18 Net Sales 44364 53,992 39,576 32,885 33,216 25,274 Total Expenses 35717 35,350 28,206 26,643 25,323 19,305 Other Income 784 294 34 47 58 87 EBITDA 8647 18,642 11,370 6,289 7,952 6,056 EBITD
Slide 40: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet All figures in INR Mn Particulars H1FY23 FY22 FY21 FY20 FY19 FY18 Net Worth 36,632 34,422 21,080 15,026 13,364 10,837 Non‐Controlling Interest 408 1,298 724 1,773 1,672 1,604 Debt Long Term Debt 94 101 7,711 14,645 16,431 18,730 Short Term Debt 4,198 4,18
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 and Ispat — Q3 FY2023 Earnings Presentation on 6ix