Maharashtra Seamless Limited

rs,

E-Communication MSL/SEC/SE/2022-23 17th October, 2022 BSE Limited 25th Floor, P.J. Towers, Dalal Street, Mumbai-400001 National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G

450,000 mt

a Seamless – Segments & Capacities Seamless Pipes ERW Pipes Renewable Energy Rig • MSL • 450,000 mt/annum • USTPL • 100% subsidiary • 200,000 mt/annum • Total • 650,000 mt/annum • API certif

100%

ties Seamless Pipes ERW Pipes Renewable Energy Rig • MSL • 450,000 mt/annum • USTPL • 100% subsidiary • 200,000 mt/annum • Total • 650,000 mt/annum • API certified • High frequency •

200,000 mt

es ERW Pipes Renewable Energy Rig • MSL • 450,000 mt/annum • USTPL • 100% subsidiary • 200,000 mt/annum • Total • 650,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt/annu

650,000 mt

rgy Rig • MSL • 450,000 mt/annum • USTPL • 100% subsidiary • 200,000 mt/annum • Total • 650,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt/annum • Wind • 7 MW at Ma

125,000 mt

y • 200,000 mt/annum • Total • 650,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt/annum • Wind • 7 MW at Maharashtra • Solar • 52.50 MW AC at & Maharashtra Rajasthan

7 MW

al • 650,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt/annum • Wind • 7 MW at Maharashtra • Solar • 52.50 MW AC at & Maharashtra Rajasthan • New generation of

52.50 MW

d • High frequency • PSL 2 • 125,000 mt/annum • Wind • 7 MW at Maharashtra • Solar • 52.50 MW AC at & Maharashtra Rajasthan • New generation offshore jack up rig • Operating with

98%

AC at & Maharashtra Rajasthan • New generation offshore jack up rig • Operating with 98% efficiency on 3 year contract with ONGC at day rate of USD 38,656 from May 2022 • Market shar

55%

ciency on 3 year contract with ONGC at day rate of USD 38,656 from May 2022 • Market share of 55% in seamless pipes segment with manufacturing facilities at Nagothane & Mangaon in Maharashtra and

25%

acilities at Nagothane & Mangaon in Maharashtra and Narketpally in Telangana. • Market share of 25% in the API certified, high frequency ERW pipes segment with manufacturing facility at Nagothane i

14%

1444 1353 1436 1161 983 e r o r c . s R 300 225 150 75 0 135 e r o r c . s R 14% 160 168 14% 12% 250 220 16% 18% 36% 27% 18% 9% 0% Q2FY22 Q3FY22 Q4FY22 Q1FY2

“There will be no cash outflow from MSL on account of this corporate guarantee as cash flows from long term contract of Discovery Drilling are more than sufficient to service bank obligations timely.”

“In FY 2023, SBLC has reduced by USD 5 mn in September 2022 & will be paid off by March 2023.”

“1000 crores Nagothane (MSL) Normal replacement expenditure • As capacity utilisation will increase, there will be additional working capital requirement of Rs.”

“www.alimtiaz.com 17 Dispatch Target & Margin Outlook for FY 2022-23 MSL Segment Seamless ERW USTPL Segment Seamless FY22 Q1 FY23 Q2 FY23 FY23 % achieved in Actual kMT Actual kMT Actual kMT Target kMT H1 FY23 315 80 85 17 90 13 365 80 48% 38% FY22 Q1 FY23 Q2 FY23 FY23 % achieved in Actual kMT Actual kMT Actual kMT Target kMT H1 FY23 73 22 22 105 42% •During a financial year, dispatches increase progressively in each quarter and therefore, we are confident of achieving our stated targets for FY23.”

“•We expect margins of exports segment of both MSL & USTPL to improve going forward based on buoyant seamless pipes prices.”

Less

1

Export Duty

1

Anti-Dumping Duty

1

Atma Nirbhar Bharat Policy Implementation

1

Export Policy

1

Less

Liquid investments (refer slide 13) ICDs given (refer slide 12) Liquidity available (B) (828) (102) (930) (533) (144) (677) (631) (232) (863) • USTPL acquisition loan of Rs. 315 crores was repayable gradually till February 2029. • In view of sufficient internal accruals and rising interest rates, this loan was prepaid in full on 10 October 2022. • After above prepayment, the only long term debt is an USD denominated ECB for rig acquisition which has annual repayment obligation of USD 10 mn till March 2026. The net of tax cash flow from the rig contract is adequate to meet ECB obligations. income of rig • Rental in USD. Accordingly, no cash loss is envisaged due to adverse foreign exchange fluctuation. is also Net Debt (A) + (B) (334) (37) (136) • No additional long term borrowing is required in FY 23. www.alimtiaz.com 14 Key Balance Sheet Items Corporate Guarantee & SBLC reduction schedule Rs. crore Particulars Actual Projected March 21 March 22 September 22 March 23 March 24 September

Export Duty

• Imposition of export duty on iron-ore & certain steel products excludes seamless & ERW pipes. • This has improved domestic raw material availability and lead to reactivation of projects.

Anti-Dumping Duty

• The Ministry of Finance, on recommendation of Directorate General of Trade Remedies (DGTR), has extended anti-dumping duty by way of a minimum import price for a further period of 5 years from 28 October 2021 on various types of seamless pipes from China.

Atma Nirbhar Bharat Policy Implementation

• Domestic manufacturers are encouraged and preferred for development of import substitution products. • The seamless & ERW pipes sector is getting a major boost from Make in India and Atma Nirbhar Bharat policy. Under this policy, for any purchases made by PSUs, there must be a minimum 35% local value addition in supply of pipes which benefits domestic manufacturers. • For requirements of upto Rs. 200 crores, only domestic tenders are floated which excludes foreign players.

Export Policy

• There has been removal of rebate of 13% by China to its domestic industry. www.alimtiaz.com 19 MSL – Sales & Marketing Update Industry and Market Trends Export market for OCTG has been generating sustained demand on the back of increased rig counts and stable steel prices. Capacities for OCTG remain overbooked. Brand „MAHA‟ has been able to penetrate further in North American markets. With freight costs falling and crude oil prices maintaining upward trajectory, demand is expected to remain healthy. MSL became a developed source for drill pipes for ONGC after successful completion of Field Trial Test. First order for drill pipes are expected to be supplied to ONGC & Oil India within 2022 and 3 more orders for drill pipes are expected to be awarded in next few months by ONGC & Oil India. MSL manufactured, tested and successfully dispatched its first lot of subsea sour service seamless pipes. Further, we have received another order of these value addition pipes in the previous quarter