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Conference Call Overview • Date: August 8, 2024 • Submitted transcript to BSE and NSE on August 14, 2024 • Participants: Executive Directors Mr. Abhishek Agrawal, Mr. Dinesh Gandhi, CFO Mr. Sanjay Bothra • Focus: Discussion of company performance with analysts and investors
Financial Performance Highlights • Revenue: Increased by 12% YoY to Rs. 1,342 crores • EBITDA: Rose 33% YoY to Rs. 408 crores • EBITDA Margin: Improved to 30% • Production: Higher production in various divisions, some declines due to maintenance
CAPEX and Future Plans • Iron Ore Mining and Pellet Capacity: Plans to nearly double capacity, approvals expected by December 2024 • Integrated Steel Plant: Project advancing with environmental assessments • Solar Power Projects: 20 MW completed, 70 MW planned
Special Announcements • Dividend: Special dividend of 25% • Share Split: To celebrate 25th anniversary
Market Outlook • Mixed international environment for iron ore and steel • Anticipated significant growth in domestic demand in India
Challenges Acknowledged • Increased imports from China • Heavy monsoons affecting construction activities
Q&A Session Insights • Integrated Steel Plant Expansion: Focus on flat products, particularly narrow hot-rolled coils • Sales Volume Concerns: Attributed to state elections and a fire incident • Operating Performance: Improved despite lower volumes due to increased power generation • Joint Ventures: Currently non-operational, timing differences affecting results • Production Volumes: Decline in steel billets and MS rounds due to maintenance shutdowns
Strategic Discussions • Transition to Electric Arc Furnaces: Current focus remains on blast furnaces • Asset Turnover: Projected turnover of Rs. 10,000 crores for 2 million ton capacity • Coal Consumption Costs: Slight reduction expected in Q2 • High-Grade Pellets: Strong domestic demand, no current plans for exports
Additional Inquiries • Ferro Alloy Market: Challenges due to weak demand and high manganese ore prices • HRC Plant Target Markets: Automotive and pipe manufacturing sectors • Supreme Court Ruling: Uncertainty regarding state taxes on mineral rights
Conclusion • Management expressed gratitude to employees, stakeholders, and shareholders for their support.
Conference Call Details • Date: May 22, 2024 • Hosted by: Emkay Global Financial Services • Key Management Present: • Abhishek Agrawal (Executive Director) • Dinesh Gandhi (Executive Director) • Sanjay Bothra (CFO) • Transcript Availability: Company website, shared with BSE and NSE
Q4 and FY24 Performance Highlights • Strong Performance Drivers: • Increased production and sales of value-added products • Cost savings from solar power initiatives • Operational efficiencies • CAPEX Projects: • Expanded capacities of sponge iron and steel billet plants • Commissioned a 145 MW solar power plant • Financial Results: • Q4 revenue increased by 16% YoY; EBITDA up by 19% • Annual revenue decreased by 5% due to lower trading sales • Operating margins improved from 20% to 24%
Future Plans and Outlook • Expansion Plans: • Increase iron ore mining capacity and pellet production with Rs. 600 crores CAPEX • Enhance integrated steel plant capacity to 2.5 million tons (pending approvals) • New Appointments: • Industry veterans appointed as Independent Directors • Market Outlook: • Positive demand forecasts, particularly in India (8.2% increase in steel demand expected in 2024)
Q&A Session Insights • Cost Savings: • Solar power plant and high-efficiency turbine contributed to a 4% increase in operating margins • Mining Capacity Expansion: • Approvals expected by Q3 FY25; targets of 3 million tons this year and 6 million tons in FY26 • Employee Expenses: • Increased by 17% YoY; average annual increment around 10%-11% • Iron Ore Prices: • Domestic demand driving prices up; focus on domestic market operations • Production Capacity: • Anticipated production of 3 million tons of iron ore by FY25
Financial Projections • CAPEX Estimates: • Rs. 700 crores for FY25 and Rs. 1000 crores for FY26 • Turnover Ratios: • 2 million ton pellet plant projected turnover of Rs. 2,000 crores; steel plant around Rs. 10,000 crores • EBITDA Expectations: • Projected EBITDA of Rs. 10,000 per ton for the new steel plant, with revenue expected in FY29
Additional Notes • Coke Import Strategy: • Importing metallurgical coke instead of coking coal for cost savings • Production Capacities: • Ferro alloys operating at full capacity; no further expansion planned for current Siltara plant • Environmental Considerations: • No further capacity expansion at Siltara due to constraints; future expansions planned for a new greenfield complex
Conclusion • Management expressed confidence in addressing queries and optimistic about future revenue and EBITDA growth following project completions.
Conference Call Overview • Date: February 7, 2024 • Hosted by: Go India Advisors • Key Personnel: Managing Director and CFO • Purpose: Discuss financial performance and outlook for Q3 FY2024 • Transcript available on the company's website
Financial Performance Highlights • Q3 FY2024 Results: • Revenue increased slightly • EBITDA rose by 13% to Rs. 999 Crores • Profit After Tax (PAT) increased by 15% to Rs. 717 Crores • EBITDA margin improved to 25% • Nine-Month Performance: • Revenue decline due to lower realizations across products • Company remains debt-free with a strong cash position
Market Outlook • Global iron ore prices: ~$133 per ton • Domestic iron ore prices: Rs. 5110; pellet prices: Rs. 9800 per ton • Projected steel demand growth: 8.6% in 2023, 7.7% in 2024
Expansion Plans • Capacity expansions approved for: • Integrated steel plant: 2 million tons • Sponge iron plant: 595,000 metric tons • Plans to double mining capacity at Ari Dongri mines • Setting up a beneficiation plant • Solar power capacity expansion to reduce emissions and costs
Q&A Session Insights • Pellet Production Strategy: • Split into two phases for better integration with iron ore mines • Boria Tibu Mines: • Environmental approvals in progress; operations expected to resume in 30-36 months • Capital Expenditure: • Rs. 800 Crores for mining and pellet expansion in FY2025 • Rs. 1500 Crores for Greenfield projects in FY2026 • Coking Coal Strategy: • Importing coke instead of building a coke oven • Steel Market: • Stable domestic prices; evaluating export opportunities
Future Projections • Anticipated improved margins in Q4 due to falling coal prices and solar power plant commissioning • Focus on increasing capacity for flat products, especially HR coils • Plans for a new 2 million tonne steel plant with an estimated cost of Rs. 3000 Crores
Additional Inquiries • Ongoing Supreme Court case regarding iron ore exports; hearing scheduled soon • Sales breakdown: 65% high-grade and 35% low-grade pellets • Stable sales outlook for FY2025, contingent on market conditions
Conclusion • Company expressed gratitude for participant engagement and support during the call.
Conference Call Overview • Date: November 6, 2023 • Hosted by: Go India Advisors • Key Participants: CFO and Executive Directors • Purpose: Discuss financial performance and outlook; caution on forward-looking statements.
Financial Performance Highlights • Q2 Revenue: Decreased by 3% YoY to ₹1,291 Crores. • EBITDA Margins: Improved to 29.63%. • Trade Attributable to Owners: Increased by 52% YoY to ₹257 Crores. • PAT Margin: 20%. • H1 Revenue: Declined by 9.6% YoY, but operating margins rose to 27%. • Production Volumes: Record highs for steel pellets; iron ore mining affected by quality and weather.
Future Plans and Investments • Mining Capacity: Plans to enhance capacity and install a beneficiation plant at Boria Tibu mine. • Capex Projects: Significant investments to expand iron ore mining and pellet capacity; environmental approvals pending. • Carbon Footprint Reduction: Initiatives through solar power.
Market Outlook • Iron Ore Prices: Stable around $125 to $127 CIF China; supported by global steel demand forecasts. • India's Steel Demand: Projected growth of 7.3% in 2023 due to government infrastructure investments.
Q&A Session Insights • Mining Guidance: FY2024 guidance lowered by 20%; expected ramp-up to 3 million tonnes in FY2025. • Pellet Production: Shift to lower-grade pellets; maintaining a balanced sales mix. • Integrated Steel Plant: Awaiting approvals; groundwork expected to start in FY2025. • Financial Stability: Assurance of no financial impact from lower-grade ore this year; plans for beneficiation to enhance efficiency.
Additional Discussions • Solar Power Initiatives: Expected to generate an additional ₹700 Crores in EBITDA annually. • Revenue Growth: Dependent on steel prices; operating at nearly full capacity. • New Steel Plant: Focused on value-added steel production; complete product plan by end of the financial year. • Power Sourcing: 98-99% captive power; plans for a beneficiation plant at Boria Tibu.
Conclusion • Management expressed confidence in managing costs and achieving profitability without excessive debt, while also addressing future capacity growth and market conditions.
Conference Call Details • Date: August 1, 2023 • Participants: Executive Directors Abhishek Agarwal, Dinesh Gandhi, CFO Sanjay Bothra, moderated by Go India Advisors. • Focus: Discussion of Q1 FY24 performance and results.
Key Highlights • Strategic Updates: • Positive start to FY24 with ambitious CAPEX plans. • Plans to double iron ore mining capacity and expand pellet plant with an investment of Rs. 3,500 crores. • Commitment to reduce carbon footprint by establishing 155 MW solar power capacity.
• Financial Performance: • Revenue: Rs. 1,326 crores (1% increase QoQ, 20% decline YoY). • EBITDA: Rs. 305 crores (14% increase). • PAT: Rs. 231 crores (36% increase, aided by exceptional income of Rs. 18 crores). • Strong production in sponge iron and steel billets; decrease in iron ore pellet production due to maintenance.
Market Outlook • Anticipated positive market conditions for iron ore and steel demand. • Expectations for stable prices moving forward.
Q&A Session Insights • Production Capacity: • 65% of production will be high-grade; pellet plant operating at full capacity. • Annualized savings of Rs. 100-125 crores from a new 70 MW solar plant.
• Coal Sourcing: • Imports 0.5 million tonnes for DRI operations; current inventory covers two months.
• Capital Allocation: • Assurance against further unsecured loans; adherence to a clear dividend policy with consistent increases.
• Challenges: • Low prices and weak demand in the ferro alloy business. • Regulatory delays affecting integrated steel plant approvals.
Future Plans • Production targets remain at 2.6 million tonnes despite operational challenges. • Plans for a Rs. 3,500 crore CAPEX with minimal spending in FY24 due to ongoing approvals. • Focus on producing finished steel and exploring export opportunities for high-grade pellets.
Conclusion • Management expressed confidence in growth prospects and readiness for future developments. • The call concluded with gratitude to participants and management.
Conference Call Overview • Date: May 22, 2023 • Hosted by: Go India Advisors • Key Executives: • Abhishek Agrawal (Executive Director) • Dinesh Gandhi (Executive Director) • Sanjay Bothra (CFO) • Purpose: Discuss Q4 and FY23 results • Transcript available on the company's website
Financial Performance Highlights • Record revenues and production in iron ore extraction and pellet manufacturing • Challenges: 45% export duty on pellets • Share buyback program initiated worth INR 250 crores • Dividend declared: INR 4 per share • Capex for expansions: INR 1,000 crores • 7% year-on-year sales increase with a 20% EBITDA margin
Market Outlook • Positive forecasts for global and domestic steel demand • Steel Association projects 7.3% growth in Indian steel demand for FY '23 • Government infrastructure development focus: • 33% rise in capital outlay • 75% increase in level outlay
Q&A Session Insights • Production Impact: • 100,000 tons lost due to overburden collapse; no operational impact • Operations normalized post-maintenance shutdowns • Future Growth: • FY '24 pellet production guidance: 3.6 million tons • Future growth reliant on new projects • Cost Management: • Stable demand for high-grade pellets despite pricing pressure • Anticipated reduction in coal prices to positively impact costs • Expansion Timelines: • Mining and pellet expansions expected to start post-environmental clearance (6 months) • Major capex for pellet plant planned for 2024 and 2025
Ferro Business Performance • 2021 was exceptional due to high Ferro Alloy prices • Challenges with high manganese ore inventory • Projected average EBITDA margin of INR 5,000 per ton for the year
Mining Costs and Market Dynamics • Mining costs increased from INR 2,400 to INR 3,100 per ton • Anticipated stabilization of costs between INR 2,000 to INR 2,850 per ton by FY 2025 • Global Ferro Alloy market influenced by China; domestic market currently more favorable than exports
Conclusion • Dinesh Gandhi expressed confidence in the company's strong performance and future growth prospects.
Conference Call Overview • Date: February 13, 2023 • Participants: • Executive Directors: Abhishek Agrawal, Dinesh Gandhi • CFO: Sanjay Bothra • Moderator: Sana Kapoor (Go India Advisors) • Purpose: Discuss Q3 and 9-month FY23 results • Transcript available on the company's website
Key Developments • Government Policy Changes: Removal of export duties on iron ore pellets and steel products. • Expansion Plans: • Increase iron ore mining capacity from 2.35 million tons to 6 million tons. • Increase pellet production from 2.7 million tons to 5.7 million tons. • Total capital expenditure planned: INR 300 crores.
Financial Performance • Revenue: Consolidated revenue at INR 1,463 crores, down 9% year-on-year. • Production Increases: • Iron ore mining up 4%. • Pellet production up 2%. • Price Stability: • Pellet prices stable at INR 8,000 (normal) and INR 11,000 (high-grade). • Sponge iron prices at INR 32,500 and steel billets at INR 48,000 per ton.
Capital Expenditure Plans • Planned expenditure of INR 400 crores for the year. • Ongoing projects: Jagdamba Power plant and 70-megawatt solar power plant. • Future capex for FY '24 and FY '25 expected to remain similar.
Operational Updates • Sponge Iron Plant: Over 98% utilization; planned shutdown until end of March to avoid losses. • Steel Plant Development: Focus on blast furnace route for a proposed 1-million-ton steel plant.
Mining and Production Timeline • Environmental clearance expected by Q2 or early Q3 FY. • Pellet production expansion projected to take 36 months.
Profitability and Margins • Pellet margins expected around 40%. • Ferroalloys margins between 18-20%. • Overall profitability anticipated to improve despite some facility closures.
Cash Reserves and Investor Returns • Cash reserves of INR 500 crores discussed. • Dividend payout expected to remain at 10% to 15%; no plans for buybacks.
Market Insights • Ferroalloy prices have decreased; expected range of INR 75,000 to 80,000 per ton. • Focus on silico manganese due to market stability.
Conclusion • Emphasis on diversifying beyond pellets and addressing market volatility. • Invitation for further inquiries through the Investor Relations team.