Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q3 FY2021 Earnings Presentation
35 slides from Godawari Power & Ispat's earnings presentation, Jan 31, 2021
Slide 1: Cover letter to stock exchanges on Q3FY21 presentation
GODAWARI POWER & ISPAT REF: GPILINSE & BSE/2021/4300 Date: 31.01.2021 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: Q3FY21 Earnings Presentation
Godawari Power & Ispat Limited Q3FY21 Earnings Presentation January 2021 1
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: Highest ever Financial & Operating Performance; Debt down to long term sustainable level
Highest ever Financial & Operating Performance; Debt down to long term sustainable level Highest Ever Financial Performance (in Mn) Sales EBITDA PAT Credit Rating A/STABLE 1,664 3,479 11,317 9,668 1,038 2,352 (by CRISIL) (Standalone) Q2FY21 Q3FY21 Q2FY21 Q3FY21 Q2FY21 Q3FY21 Highest Ever Quarterly P
Slide 5: Key Developments in Q3FY21
Key Developments in Q3FY21 De-Leveraging – Long Term debt reduced by 43% to INR 873 cr as on 30th January 2021 Net Debt down to sustainable levels. Net Debt to Equity targeted to remain below 0.5x Repaid INR 667 cr of long-term debt YTDFY21 against last full year repayment of INR 213 cr Inte
Slide 6: Strategic Update and Future Roadmap
Strategic Update and Future Roadmap Strategic Update Future Roadmap o MOU signed with Chhattisgarh government o Best quarterly financial performance driven o Moving up the value chain through internal by strong operating performance accruals in a phased manner over 4-5 yrs o Repaid INR 548 cr of LT
Slide 7: Balance Sheet Strengthening
Balance Sheet Strengthening Repaid INR 6.7 Billion as on January in FY21; Long term debt reduced by 43% 0 0 *As on Jan 2021
Slide 8: Q3FY21 Production Summary
Q3FY21 Production Summary Production (in MT) Q3FY21 Q2FY21 QoQ (%) Q3FY20 YoY (%) 9MFY21 9MFY20 FY20 Iron ore Mining 4,82,389 4,19,657 15% 4,49,554 7% 12,23,853 12,05,754 16,57,629 Iron ore Pellets - GPIL 5,44,500 6,17,300 -12% 5,77,350 -6% 16,25,950 15,58,150 19,99,150 Iron Ore Pellets - ASL 1,97,4
Slide 9: Q3FY21 Sales Volume Summary
Q3FY21 Sales Volume Summary Sales Volume (in MT) Q3FY21 Q2FY21 QoQ (%) Q3FY20 YoY (%) 9MFY21 9MFY20 FY20 Pellet - GPIL 3,59,708 4,24,494 -15% 3,83,680 -6% 11,65,484 10,73,107 7,23,077 Pellet - ASL 2,05,958 1,09,967 87% 1,94,365 6% 4,96,092 5,37,977 7,42,332 Sponge Iron 33,975 39,250 -13% 29,888 14%
Slide 10: Q3FY21 Realisation Summary
Q3FY21 Realisation Summary Realisation Q3FY21 Q2FY21 QoQ (%) Q3FY20 YoY (%) 9MFY21 9MFY20 FY20 Iron Ore Pellet - GPIL* 9,037 7,059 28% 5,743 57% 7,343 4,369 6,259 Iron Ore Pellet - ASL 8,070 5,817 39% 5,178 56% 6,689 5,582 5,600 Sponge Iron 22,575 17,854 26% 15,969 41% 19,542 16,611 16,897 Steel Bil
Slide 11: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss Particulars (in Mn) Q3FY21 Q2FY21 QoQ (%) Q3FY20 YoY (%) 9MFY21 9MFY20 FY20 Net Sales 11,317 9,668 17% 8,368 35% 28,097 24,985 32,885 Total Expenses 7,846 7,323 7% 7,082 11% 20,704 20,298 26,643 Other Income 8 7 17% 38 -78% 26 70 47 EBITDA 3,479 2,352 48% 1,323 163%
Slide 12: GPIL Standalone - Profit & Loss
GPIL Standalone - Profit & Loss Particulars (in Mn) Q3FY21 Q2FY21 QoQ (%) Q3FY20 YoY (%) 9MFY21 9MFY20 FY20 Net Sales 9,538 8,765 9% 7,187 33% 24,042 21,273 27,740 Total Expenses 6,744 6,765 0% 6,228 8% 18,286 17,926 23,340 Other Income 7 5 31% 11 -37% 21 26 29 EBITDA 2,800 2,004 40% 970 189% 5,777
Slide 13: Highest ever quarterly EBITDA at standalone & consolidated level
Highest ever quarterly EBITDA at standalone & consolidated level All figures in INR MN * ASL ceased to be subsidiary effective 28th December 2020 consequently, EBITDA up to 27th December 2020 included at consolidated level. ASL have now became JV with GPIL having 37.85% stake. Henceforth will be con
Slide 14: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o Iron ore prices have climbed from a low of US$ 80/t seen in April’20 to US$ 173/t, touching 9 year high. Current Iron ore prices are trading at US$ 156/t. o Pellet prices have been tracking higher iron ore prices and have remained strong at U
Slide 15: Iron Ore Taking Away Large part of Steel Spreads
Iron Ore Taking Away Large part of Steel Spreads Steel Spreads – still below peak As Iron ore Prices – take away profits China Steel Margin ($/t) China Iron Ore Price ($/t) 200.00 250 Current: $13/t Dec-20: $80/t 150.00 200 100.00 150 50.00 100 - 50 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 J
Slide 16: Godawari Power & Ispat Limited
Godawari Power & Ispat Limited INVESTOR PRESENTATION
Slide 17: Integrated Asset Portfolio; Unique Presence Across Steel Value Chain
Integrated Asset Portfolio; Unique Presence Across Steel Value Chain Asset Capacity FY20 Utilisation (%) Asset Capacity FY20 Utilisation (%) Iron Ore MS 0.4 mt Mining 2.1mt 76% Rounds 85% 46% 64% Iron Ore 92% HB 0.15 mt 90% 2.1 mt 96% Pellets Wires 87% Sponge 93% Ferro 16,500 mt 0.5 mt 99% Alloys Ir
Slide 18: GPIL – Focused on Generating Shareholder Value
GPIL – Focused on Generating Shareholder Value Balance Sheet De- Clear Strategy Portfolio Optimisation Improving Financials Leveraging Increasing value addition TTM H1FY21 Net Debt to equity Reduced to Focus on Integrated Steel by enhancing captive Revenue Flat YoY 0.8x from 3x in 2017; Target Value
Slide 19: Long Term Debt Reduced by 50% in last 2 Years
Long Term Debt Reduced by 50% in last 2 Years Paid c2x times over Repaid c2x times over Repaid c9x times over All figures in INR MN the scheduled the scheduled debt the scheduled debt of repayment in FY19 repayment in FY20 FY21 in 9MFY20 Debt Repayment Schedule GPIL (Standalone) ASL GGE 6,670 1,303
Slide 20: Increased Captive Consumption Provides Significant Margin Expansion
Increased 19 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 operations at improving margins. Started Boria T
Slide 21: Captive Mining Leading To Huge Raw Material Costs Saving
Captive Mining Leading To Huge Raw Material Costs Saving 7000 6,200 4,346 4,270 4,400 3,500 3,200 3,000 2,750 2,600 2,462 2,310 2,250 2400 2,050 2,181 2,200 1,800 FY15 FY16 FY17 FY18 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 Market Price of Iron Ore Captive Ore Landed Cost 20
Slide 22: Focussed on Value Creation: Net Debt Reducing & FCF increasing
Focussed on Value Creation: Net Debt Reducing & FCF increasing All figures in INR MN Net Debt to Equity 2.5x 1.9x 1.4x 1.1x 0.8x 4,000 21,634 3,051 22,000 3,000 20,715 1,909 1,731 20,000 2,000 1,051 18,467 1,000 18,000 - 16,678 16,000 -1,000 -2,000 14,000 -3,162 13,090 -3,000 12,000 -4,000 FY17 FY18
Slide 23: Improving Liquidity Ratios
Improving Liquidity Ratios 5,508 5,498 5,508 4,511 3,771 4,121 Cash Flows from 3,140 Operation 2,581 1,699 1,657 Capex 716 1,063 827 556 146 170 Free Cash Flows FY14 FY15 FY16 FY17 FY18 FY19 FY20 H1FY21 Net Debt to EBITDA Net Debt to Equity 2.75 9.87 2.54 8.09 8.14 2.132.05 1.911.94 7.07 1.381.27 1.
Slide 24: Group Structure
Group Structure Associates JVs Godawari Power and Ispat Ltd. 48.45% 33.30% Hira Ferro Alloys Raipur Ltd. Infrastructure Co 76.12% 37.85%* Godawari Green 25.93% Ardent Steel Ltd. Energy Ltd. Chattisgarh Captive Coal Mining 51.30% 33.96% 35.36% Godawari Energy Ltd. Chhattisgarh Ispat Jagdamba Power &
Slide 25: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha Solar Thermal Power Plant Keonjhar: 0.69 mn MTPA Rajasthan: 50MW Chhattisgarh Siltara Integrated Plant 1 mn MTPA Iron ore beneficiation 2.1 mn MTPA Iron ore pellets 0.5 mn MTPA Sponge iron 0.4 mn MTPA Steel billets 0.1 mn MTPA HB wire 73
Slide 26: Shareholding Pattern as on December 2020
Shareholding Pattern as on December 2020 Shareholding Pattern Break up of Shareholding Pattern Shareholding % of Total Sh. Institution 1.13% 32.58% Non Institution 31.37% Total 32.50% 67.42% Promoter Shareholding % of Total Sh. Pledge* 32.51% Total 67.50% Promoter Public * Pledged with lenders as an
Slide 27: Board of Directors
Board of Directors Mr Biswajit Choudhary (Chairman & Mr BL Agarwal Independent Director) Managing Director 5 decades of experience in • 1st generation entrepreneur with Engineering, Banking & Finance; almost 4 decades of experience; Mechanical Engineering from IIT, Graduated as an electronic; Kharag
Slide 28: Board of Directors
Board of Directors Mr. Siddharth Agrawal Mr. Harishankar Khandelwal (Non-Executive Director) (Independent Director) Managing Director of subsidiary Almost 3 decades of experience in Godawari Green Energy Limited ; corporate planning & strategy, MBA with over 10 years of financial analysis, budgeting
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 Pellets Production (mt) 16,57,629 15,79,693 15,47,384 19,33,250 19,99,150 18,41,050 11,75,090 15,32,200 15,80,850 14,95,100 6,57,328 9,02,550 4,44,695 3,26,358 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY2
Slide 30: GPIL Standalone – Past Operational Performance at a Glance...
GPIL Standalone – Past Operational Performance at a Glance... Trend of Steel Production (mt) Silico Manganese (mt) 3,44,610 2,98,418 13,700 13,772 13,136 11,116 11,403 10,537 10,517 2,27,581 2,04,162 1,97,596 1,88,190 1,77,970 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY20 FY 14 FY 15 FY 16 FY 17 FY 18 FY
Slide 31: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 19,736 7,872 18,934 7,798 18,277 7,091 16,678 16,897 6,809 5,365 13,310 5,067 12,383 4,360 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 Steel Billets 33,072 29,493 28,681 28,590 27,720 22,689 21,830 FY 14 FY 15 FY
Slide 32: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 38,740 40,666 33,265 33,409 33,327 32,460 36,169 34,683 35,182 34,015 27,034 26,330 28,080 28,063 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 Silico Manganese 67,611 64,632 63,898 53,365 52,696 51,665 43,139 FY 14 FY 15
Slide 33: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss Particulars (in Million) FY20 FY19 FY18 FY17 Net Sales 32,885 33,216 25,274 19,941 Total Expenses 26,643 25,323 19,305 17,033 Other Income 47 58 87 153 EBITDA 6,289 7,952 6,056 3,061 EBITDA Margin (%) 19% 24% 23% 15% Depreciation 1,369 1,329 1,318 1,201 F
Slide 34: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet Particulars (INR mn) FY20 FY19 FY18 FY17 Net Worth 15,026 13,364 10,837 8,503 Non‐Controlling Interest 1,773 1,672 1,604 1,533 Debt Long Term Debt 14,645 16,431 18,730 19,799 Short Term Debt 1,604 1,393 1,344 1,955 Other Long Term Liabilities 605 127 103
Slide 35: Thank you
Thank you Investor Relations Contact: Company Contact: Ankit Toshniwal Govind Jaju Go India Advisors Godawari Power and Ispat Ltd. ankit@GoIndiaAdvisors.com govind.jaju@hiragroup.com M:+91 90224 80789 M:+91 98922 53901 34
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