Prakash Industries Ltd. — Investor Presentation 2021

Jul 24, 2021

Prakash Industries Limited

Srivan, Bijwasan, New Delhi -110061 CIN: L27109HR1980PLC010724 Tel. : 25305800, 28062115 Fax: 91-11-28062119 E-mail : pilho@prakash.com Website : www.prakash.com

PIUSE/MIS/2021

241 h July, 2021

Listing Department BSE Ltd. Dalal Street Mumbai

Listing Department National Stock Exchange of India Ltd Sandra (E) Mumbai

Company Code : 506022 Company Symbol PRAKASH

Sub: Intimation under Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir,

Please find enclosed herewith Investor Presentation on Results for the period ended 31•t March, 2021 for your kind information and record. You are requested to kindly update the same on your website.

Thanking you,

Yours faithfully, For Prakash Industries Limited

~hw\~14.r~

Ashwini Kumar Company Secretary

Encls : as above

PRAKASH INDUSTRIES LIMITED

People… Prosperity… Progress…

INVESTOR PRESENTATION | JULY 2021

DISCLAIMER

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Prakash Industries Limited (the "Company") solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business

prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forwardlooking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

CONTENTS

FINANCIAL HIGHLIGHTS

COMPANY AT GLANCE

CORPORATE SOCIAL RESPONSIBILITY

FINANCIAL HIGHLIGHTS

FY 2021: During the year, the Company has achieved Net Sales of INR 3216 Crores and EBITDA of INR 323 Crores. Profit after Tax for the year is INR 95 Crores. Revenue - INR 1032 Crores, up by 59% (YoY) EBITDA - INR 107 Crores, up by 29% (YoY) Profit after Tax - INR 52 Crores, up by 186% (YoY) Highest yearly sales volume of 9.55 lakh tonnes of Steel , up by 3% over previous year Highest yearly production of 9.06 lakh tonnes of DRI, up by 11% over previous year Highest yearly Power generation of 11396 lakh units

Q4FY2021:

Operational:

Mining Operations:

• Mined ~4.7 lakh tonnes of Iron ore from Sirkaguttu mine, Odisha

Expansion in Steel Melting Shop (SMS):

Received grant order for Iron Ore mining lease in District Kabirdham (Kawardha), Chhattisgarh Expanded the installed capacity in SMS division by commissioning 2 nos. new energy efficient Induction Furnaces. The enhanced capacity now stands at 12.5 lakh tonnes per annum.

INR in Cr	FY 2021	FY 2020	FY 2019
Revenue from Operations	3,216	2,974	3,588
Other Income	8	7	8
Total Income	3,224	2,981	3,595
Cost of Raw Material Consumed	2,297	1,972	2,128
Employee Benefits Expense	230	242	212
Other Expenses	375	411	461
EBITDA	323	356	794
Depreciation	154	145	134
Finance Costs	74	93	101
Profit Before Tax	95	118	559
Exceptional Items (Net)	-	-	6
Income Tax (Net)	-	-	13
Profit After Tax	95	118	539
Sales Volume (Lac MT)	9.55	9.26	9.44

Sales Volume (Lac MT)	9.26

BALANCE SHEET	HIGHLIGHTS
INR in Cr	Mar-21	Mar-20
Equity	2,899	2,904
Equity Share Capital	179	171
Other Equity	2,720	2,733
Non-Current Liabilities	447	413
Long-Term Borrowings	355	371
Long-Term Provisions	43	47
Deferred Tax Liabilities	50	(5)
Current liabilities	538	549
Short-Term Borrowings	137	134
Trade Payables	157	144
Other Financial Liabilities	155	166
Short-Term Provisions	23	23
Other Current Liabilities	60	62
Current tax Liabilities	5	20
	3,884	3,866	Total Assets

BALANCE SHEET	HIGHLIGHTS
INR in Cr	Mar-21	Mar-20	INR in Cr	Mar-21	Mar-20
Equity	2,899	2,904	Non-Current Assets	3,185	3,310
Equity Share Capital	179	171
Other Equity	2,720	2,733	Fixed Assets	3,098	3,183
Non-Current Liabilities	447	413	Financial Assets	66	64
Long-Term Borrowings	355	371	Other Non-Current Assets	21	63
Long-Term Provisions	43	47	Current Assets	699	556
Deferred Tax Liabilities	50	(5)	Inventories	294	137
Current liabilities	538	549	Trade Receivables	143	195
Short-Term Borrowings	137	134	Cash & Cash Equivalents	17	30
Trade Payables	157	144
Other Financial Liabilities	155	166	Bank Balances	28	29
Short-Term Provisions Other Current Liabilities	23 60	23 62	Other Financial Assets	75	79
Current tax Liabilities	5	20	Other Current Assets	143	86
Total Equity & Liabilities	3,884	3,866	Total Assets	3,884	3,866
	Key Balance	Sheet Ratios	Mar-21
Total	Debt to Equity		0.2
Book Value per Equity Share		INR 162

Key Balance Sheet Ratios	Mar-21
Total Debt to Equity	$\Omega$
Book Value per Equity Share	INR 162

COMPANY AT GLANCE

COMPANY OVERVIEW

Plant in Chhattisgarh

245 MW Captive Power Plant in Chhattisgarh

Captive Iron Ore Mine in Odisha

6 MW Windmill unit at

Strategically located in major mineral belt of the Country Tamil Nadu

One of the lowest leveraged Company in the industry

OUR FOOTPRINTS

INTEGRATED STEEL BUSINESS

03	Secured Supply of Key Raw Material –	(i) Captive Operational Iron Ore Mine in the state of Odisha (ii) Coal through long term linkages from Coal India
Product	Location	Capacity
Sponge Iron	Champa, Chhattisgarh	1.20 Mn TPA
Steel Billets	Champa, Chhattisgarh	1.25 Mn TPA
Ferro Alloys	Champa, Chhattisgarh	0.13 Mn TPA
Finished Steel	Raipur, Chhattisgarh	1.10 Mn TPA

STEEL – PRODUCT PORTFOLIO & APPLICATIONS

INTERMEDIARY PRODUCTS

SPONGE IRON DRI STEEL BILLETS FERRO ALLOYS

FINISHED PRODUCTS

POWER BUSINESS

Operating 245 MW captive power at its Integrated Steel Plant, Chhattisgarh

Power generated partly by harnessing waste gases emanating from Sponge Iron process and partly through Thermal route

Out of the total 245 MW – 80 MW through Power Co generation – 165 MW through Thermal route

• Iron Ore Mines Extraction of Iron Ore from Sirkaguttu mine, Odisha commenced. Going forward, the ramped
• up extraction will result in higher EBITDA margins Received grant order for Iron Ore mining lease in District: Kabirdham (Kawardha), Chhattisgarh Coal Linkages In Place Long Term Coal Linkages from Coal India Ltd for Sponge Iron and Power plant operations.

Equity Infusion by Promoter The Promoter subscribed to 75 Lakh Convertible Equity Warrants on preferential basis. Since the Promoter fully paid the entire amount, the Company issued 75 Lakh Equity Shares of the Company to the Promoter during the year. Deleveraging the Balance Sheet Free Cash Flows from the operations to be utilized towards deleveraging the Balance Sheet . To become Net Debt Free Company in next 2 years.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) has been integral part of the Company's business since inception. The broad areas in which the CSR initiatives have been initiated by the Company are as

• under : Actively participated with State Government agencies to combat COVID-19 pandemic by fulfilling substantial oxygen requirement in District Janjgir-Champa, Chhattisgarh, besides supplying oxygen concentrators, ventilators, medicines, PPE kits and worked to augment basic amenities and other infrastructure facilities at COVID centres in the surrounding areas Providing safe drinking water facilities Conducting training programs for promotion of vocational skills Ensuring environment sustainability Promotion and development of traditional arts Training to rural sports Mid-day meal scheme

Thank You

For more information:

visit www.prakash.com

or write to investorshelpline@prakash.com

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