to

1
Presentation
to
Analysts
2
Agenda

• Performance - Q1 FY 06
• Operational highlights
• Performance highlights
• Financial highlights
• Project status
• Industry outlook
• Future guidance FY 06

3
Operational Highlights

• Significant volume growth in production and sales
  across products (except GP)
• Convertor life at 5725 heats (as on 21.07.05)
• New Indian record
• LD gas recovery fully operational
• Optimal utilization of waste gases

4
Operational Performance
Production (mtpa)
-1
45
39
21
5
Operational Performance
Sales (mtpa)
-14
37
81
6
Performance Highlights - Q1FY06

• Significant growth over Q1 FY 05
• Net Sales 20
• EBIDTA 19
• Cash Profit 39
• PBT 58
• PAT 85
• EPS 92
• EBIDTA margins maintained despite increase in
  Coal and Iron Ore cost
• Operational performance impacted by port strike
  in June end

7
Performance Highlights
Gross Turnover (Rs. crs)
Net sales (Rs. crs)
EBIDTA (Rs. crs)
Growth 27
Growth 20
Growth 19
8
Performance Highlights
Cash Profit (Rs. crs)
PBT (Rs. crs)
PAT (Rs. crs)
Growth 85
Growth 58
Growth 39
9
Financial Highlights

• Interest cost reduced by 28
• Rs 90.35 crs in Q1 FY06 from Rs 125.73 crs in Q1
  FY 05
• Refinanced Rs 325 crores of CDR debt with 6 years
  Rupee Term Loan at an Interest rate of 8 p.a.
  payable monthly.
• Reduction in debt by Rs 285 crores
• Debt equity ratio at 1.14 times

10
Key Financial Indicators
EBIDTA / Interest
Debt / Equity
Interest Cost
Book Value Per Share
11
Agenda

• Performance - Q1 FY 06
• Project status
• On going project status
• New initiatives
• Industry outlook
• Future guidance FY 06

12
On going project status

• Pre Painted Galvanised Iron (PPGI) plant
• 130 MW power plant
• Pellet plant expansion
• HSM modernization
• Delivery of imported indigenous equipment on
  schedule
• 1.30 mtpa expansion

All projects at advanced stage of Implementation
13
PPGI plant
PPGI Line
Coater Prime Finish Section
Cold commissioning commenced in July 2005
14
130 MW power plant

• Pre commissioning activities commenced in Boilers
• Erection of Turbo generator completed

15
Pellet plant

• Over 90 of civil 60 of structural work
  completed
• All major equipment ordered

16
1.3 mtpa expansion
Coke Oven
Sinter
Blast Furnace

• Over 90 of civil 40 of structural work
  completed

• Over 40 of civil structural work completed
• Critical long delivery equipment ordered

• Over 90 of civil 60 of structural work
  completed

17
New initiatives

• Increase in capacity of HRM from 2.5 - 3.2 mtpa
• Marginal Investment of Rs 1 billion
• Value added product
• Shifting of Plate mill from Vasind to Bellary
  with enhancement in capacity to 0.5 mtpa from 0.3
  mtpa
• Saving in freight cost for slabs
• Proximity to market in southern India
• Marginal Investment of Rs 1 billion
• 0.1 mtpa colour coating line at Tarapur
• Higher value added product

Diversified product mix
18
Agenda

• Performance - Q1 FY 06
• Project status
• Industry outlook
• Global Steel Outlook
• Domestic Steel Outlook
• Future guidance FY 06

19
Global Steel outlook

• OECD estimates continued growth of Chinas
  production consumption
  Production Consumption 2005
  14 10
  2006 11 8
• Basic steel making expected to move to BRIC
  countries due to competitive cost advantage
• WSD confirms status as low cost producers - 220
  / tom - 266 / ton
• Developed countries with sustained consumption
  pattern focused on value added products
• Production drops in Europe (3.5) North America
  (0.4) Source IISI
• Benefit of consolidation imminent
• Production cuts announced by major European
  players to counter pressure on output prices
• Margins under pressure due to higher input prices
  and higher inventory levels

Consumption expected to grow at 3.5
20
Domestic Steel outlook

• Encouraging IIP growth _at_ 10.8 - May 05 and
  healthy GDP growth _at_ 6 - 7
• Continuity in government policy on infrastructure
  development
• Sustained growth witnessed in key sectors
• Manufacturing sector 11.5, Automobile
  production 18, Housing and White goods Industry
• Increased demand for value added products in
  South India

Buoyant growth to be sustained
21
Agenda

• Performance - Q1 FY 06
• Project status
• Industry outlook
• Future guidance FY 06

22
Future guidance - FY 06

• Quarter 2
• Commissioning of 0.1 mtpa PPGI line
• Target to exit CDR
• Reduction in WAIC to below 8 level

• Quarter 3
• Merger of EIISPL, ECEPL JPL
• Commissioning of 130 MW Power plant in phases

• Quarter 4
• Completion of Pellet plant expansion by 0.8 mtpa
• Commissioning of 1.3 mtpa expansion projects in
  phases
• Completion of HSM modernisation - capacity
  enhancement by 0.5 mtpa