Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q2 FY23 Earnings Presentation
42 slides from Godawari Power & Ispat's earnings presentation, Nov 10, 2022
Slide 1: Exchange filing cover letter for investor presentation
or F ap tz- ti dr REF: GPILINSE & BSE/2022/4873 HIIEL CODAWARI POWEk & lspAT Date: 10.11.2022 To' I. The Listing Department, 2. The Corporate Relation Department, The National stock Exchaiige of India Ltd` The BSE Limited, Exchange plaza, Bandra Kurla complex` First Floor. Rotunda Building. Bandra (
Slide 2: Q2 & H1FY23 Investor Presentation
Q2 & H1FY23 Investor Presentation 10th November’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: Q2FY23 Key Highlights
Q2FY23 Key Highlights o Revenue increased to Rs.1307Cr.; up 3% YoY on basis o EBITDA for the quarter dropped to Rs.231Cr. majorly because of lower Financial Performance realisations (Consolidated) o Finance costs for the quarter reduced by 32% to Rs.2.7Cr. o PAT for Q2 is Rs.169Cr. and EPS for the q
Slide 5: Update on Stated Guidance
Update on Stated Guidance FY23 Guidance Current Status Iron ore mining – 2.7 to 2.9MnT Iron Ore Mining in H1FY23 – 1.37MnT Iron ore Pellets – 2.6MnT Iron Ore Pellets in H1FY23 – 1.31MnT Consolidated Capex – Rs.5,000Mn Consolidated Capex in H1FY23 – Rs.1,790 Mn Current status - Consolidation of stake
Slide 6: Strategies changed to tackle Export Duty
Strategies changed to tackle Export Duty Particulars Current Status Company was mainly exporting iron ore pellets & wire rods prior to imposition of export duty. Company has a competitive advantage as it produces High-Grade Iron Focus on Domestic Sales Ore Pellets. Sales of pellets and wire rods hav
Slide 7: Strong Future Outlook - Low-cost Capacity Expansion
Strong Future Outlook - Low-cost Capacity Expansion Capacity FY22 Capex (in Rs. Mn) Particulars Already Balance to Current Status FY22 FY23 Total incurred be incurred Mining production ramp-up in 2nd half. Beneficiation Iron Ore Mining, Crushing plant at mine to commission in H2FY23. Capex 2.1MTPA 3
Slide 8: Carbon Footprint Reduction Strategy
Carbon Footprint Reduction Strategy Capex (in Rs. Mn) Particulars Capacity FY23 Already Balance to Total Current Status incurred be incurred Solar PV Projects GPIL - Rajnandgaon 70 MW 2475 2475 0 Plant commissioned on 6th August’2022. Land acquisition in process. Solar modules delivered & cleared fr
Slide 9: Drivers of Performance in Q2FY23
Drivers of Performance in Q2FY23 Particulars Current Status • Iron ore mining as well as iron ore pellets production has increased by 34% & 17% YoY. Production Volumes • Also, there has been a significant increase in production of other products like HB Wires and Galvanized Fabricated products on Yo
Slide 10: Production Summary
Production Summary Iron Ore Mining Iron Ore Pellets - GPIL Sponge Iron 758,306 618,808 667,350 644,900 161,001 552,050 140,913 143,578 462,836 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Steel Billets M.S. Rounds/TMT Ferro Alloys 3,795 3,145 1,922 93,470 60,731 81,930 81,570 11,51
Slide 11: Sales Volume Summary
Sales Volume Summary Iron Ore Pellets - GPIL Sponge Iron Steel Billets 531,877 50,262 48,598 43,942 41,147 410,667 30,313 34,705 340,192 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 M.S. Rounds/TMT Ferro Alloys Galvanized Fabricated Products 3,759 3,746 1,756 58,946 11,807 16593 10
Slide 12: Realisation Summary
Realisation Summary (Ex plant realisation excluding export freight and expenses) Iron Ore Pellets - GPIL Sponge Iron Steel Billets 12,896 34,457 33,873 53,076 11,596 49,626 42,547 8,186 29,908 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 M.S. Rounds/TMT Ferro Alloys - HFAL Galvaniz
Slide 13: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q2FY23 Q1FY23 QoQ% Q2FY22 YoY % H1FY23 H1FY22 FY22 Net Sales 13071 16,663 -22% 12,744 3% 29,735 24,341 53,992 Total Expenses 10763 12,055 -11% 8,380 28% 22,818 13,953 35,350 Other Income 262 161 63% 27 878% 423 38 294 EBIDTA 2308 4,
Slide 14: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q2FY23 Q1FY23 QoQ% Q2FY22 YoY % H1FY23 H1FY22 FY22 Net Sales 12,011 14,827 -19% 12,467 -4% 26,837 23,729 50,746 Total Expenses 9,688 10,544 -8% 8,311 17% 20,232 13,842 32,936 Other Income 263 114 132% 25 945% 377 34 183 EBIDTA 2,323 4
Slide 15: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 7,800 7,300 6,800 4,500 4,346 4,270 3,500 3,200 3,000 2,750 2,800 2,900 2,900 2,600 2,462 2,310 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q2FY23 Market Price of Iron Ore Captive Ore Landed Cost
Slide 16: 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 -5,604 -5,382 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Q2FY23 Short term borrowings are not included in calculation of Net Debt.
Slide 17: 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 18: 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 19: 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 20: 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 21: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o From $158/t on 1st April, iron ore prices have fallen to $80/t, as recession worries take hold. The demand and consumption of steel and other commodities is subdued in China due to covid and real estate crisis and in rest of the world due to
Slide 22: Appendix
GODAWARI POWER & ISPAT APPENDIX Lite eed IL led
Slide 23: 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 24: 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 25: 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 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 • Increased captive mining to aid in lowering cost and improving margins. Started operations at Boria Tibu Mine Po
Slide 27: Simplifying Group Structure
Simplifying Group Structure Associates JVs Godawari Power and Ispat Ltd. 37.85% 33.30% Ardent Steel Raipur Infrastructure Co 91.82% 100% 25.93% Hira Ferro Alloys Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 8.29% 35.36% 78.96% 12.53% Chhattisgarh Ispat Bhumi Alok Ferro Alloys Ltd. No
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 Q2FY23 Q1FY23 QoQ (%) Q2FY22 YoY (%) H1FY23 H1FY22 FY22 Achieved Iron ore Mining M.T.s 618,808 758,306 -18% 462,836 34% 1,377,114 1,021,906 2,312,888 60% Iron ore Pellets - GPIL M.T.s 644,900 667,350 -3% 552,050 17% 1,312,250 1,154,900 2,3
Slide 30: Detailed Sales Volume Summary
Detailed Sales Volume Summary % Description of Goods M.T./ KWH Q2FY23 Q1FY23 QoQ (%) Q2FY22 YoY (%) H1FY23 H1FY22 FY22 Achieved Iron Ore Pellet - GPIL M.T.s 531,877 410,667 30% 340,192 56% 942,544 729,129 1,664,030 57% Sponge Iron M.T.s 48,598 50,262 -3% 41,147 18% 98,860 46,525 126,371 78% Steel Bi
Slide 31: Detailed Realisation Summary
Detailed Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods INR per Unit Q2FY23 Q1FY23 QoQ (%) Q2FY22 YoY (%) H1FY23 H1FY22 FY22 Iron Ore Pellet - GPIL INR/M.T.s 8,186 11,596 -29% 12,896 -37% 7,082 13,453 12,390 Sponge Iron INR/M.T.s 33,873 34,457 -
Slide 32: Shareholding Pattern as on 30th Sept 2022
Shareholding Pattern as on 30th Sept 2022 Shareholding Pattern Break up of Shareholding Pattern Particulars No of Shares % of Total Sh. Promoter 9,51,43,412 67.50 32.50% Alternate Investment Funds 6,69,114 0.47 FPI Category II 35,63,619 2.53 67.50% Non Institution 4,15,65,743 29.49 Total 14,09,44,98
Slide 33: 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 34: 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 35: 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 36: 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 1,999,150 1,841,050 1,699,920 1,579,693 1,657,629 1,580,850 1,532,200 1,495,100 326,358 1,175,090 902,550 693,612 657,328 619,
Slide 37: 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 14,178 298,418 13,70013,13613,772 188,190 11,11611,403 10,537 10,517 227,581 204,162 197,596 9,434 185,021 177,970 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 38: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 33,873 12,390 34,457 11,596 31,746 9,017 8,607 7,872 7,798 8,186 20,964 19,736 20,645 6,809 7,091 18,277 18,934 16,678 16,897 5,067 5,365 13,310 12,383 4,360 Steel Billets 53,076 49,626 43,427 31947 33,072 33,545 28,681 29,493 27,720 28,590 22,689
Slide 39: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 55,030 56,944 53,383 57,551 48,092 47,981 38,740 37,335 28,063 35,373 38,332 40,666 33,265 33,409 33,327 32,460 36,169 34,015 35,182 36,898 27,034 34,683 26,330 28,080 Silico Manganese 98,222 95,222 78,414 67,611 64,632 63,898 63,186 53,783 53,365 52,696
Slide 40: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss All figures in INR Mn Particulars H1FY23 FY22 FY21 FY20 FY19 FY18 Net Sales 29,735 53,992 39,576 32,885 33,216 25,274 Total Expenses 22,818 35,350 28,206 26,643 25,323 19,305 Other Income 423 294 34 47 58 87 EBITDA 6,916 18,642 11,370 6,289 7,952 6,056 EB
Slide 41: 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 42: 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 — Q2 FY23 Earnings Presentation on 6ix