Maharashtra Seamless Limited

rs,

E-Communication MSL/ SEC/ SE/2022-23 01 August 2023 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

s – Segments & Capacities Seamless Pipes ERW Pipes Renewable Energy Rig • Maharashtra • 450,000 mt/annum • Telangana • 200,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt

200,000 mt

s Pipes ERW Pipes Renewable Energy Rig • Maharashtra • 450,000 mt/annum • Telangana • 200,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt/annum • Solar • 52.50 MW AC at

125,000 mt

450,000 mt/annum • Telangana • 200,000 mt/annum • API certified • High frequency • PSL 2 • 125,000 mt/annum • Solar • 52.50 MW AC at & Maharashtra Rajasthan • Wind • 7 MW at Maharashtra

52.50 MW

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

7 MW

cy • PSL 2 • 125,000 mt/annum • Solar • 52.50 MW AC at & Maharashtra Rajasthan • Wind • 7 MW at Maharashtra • New generation offshore jack up rig • Operating with 98% efficiency

98%

Wind • 7 MW at Maharashtra • 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

18%

acilities at Nagothane & Mangaon in Maharashtra and Narketpally in Telangana. • Market share of 18% in the API certified, high frequency ERW pipes segment with manufacturing facility at Nagothane i

100,000 mt

Maharashtra. • On installation of finishing facilities at Telangana in FY24, existing capacity of 100,000 mt/annum will be activated. www.alimtiaz.com 3 Products & Industries served Ind

36%

EBIDTA margin 2400 1600 1347 1435 1355 1654 1256 450 300 150 e r o r c . s R 0 36% 312 231 249 245 244 24% 17% 18% 18% 19% 20% 12% 0% Q1FY23 Q2FY23 Q3FY23 Q4FY2

24%

1435 1355 1654 1256 450 300 150 e r o r c . s R 0 36% 312 231 249 245 244 24% 17% 18% 18% 19% 20% 12% 0% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY

“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.”

“1000 crores Nagothane (MSL) Normal replacement expenditure • In pursuance of increased focus on value addition products in pipe and renewable energy segments, above capital expenditure will be fully met from accumulated cash and internal accruals.”

“There will be additional working capital requirement of Rs.”

“• There will be no requirement of any debt to fund above capital expenditure and working capital requirements.”

“64 crore We expect margins to remain steady based on current trend of seamless pipes prices.”

“www.alimtiaz.com 16 Sales & Marketing Update Industry and Market Trends Large orders from ONGC have been received which will be executed over next 2-3 quarters.”

Less

1

Anti-Dumping Duty

1

Atma Nirbhar Bharat Policy Implementation

1

Export Policy

1

Less

Liquid investments (refer slide 11) (1018) (950) ICDs given (refer slide 10) (72) (78) 334 299 633 (562) (144) Liquidity available (B) (1090) (1028) (706) Net Debt (A) + (B) (1090) (784) (73) • In view of sufficient internal accruals and rising interest rates, loans taken for Telangana plant acquisition and rig acquisition were prepaid in full in October 2022 and June 2023 respectively. www.alimtiaz.com 12 Key Balance Sheet Items Corporate Guarantee reduction schedule Rs. crore Particulars Actual Projected Discovery Drilling 218 181 166 152 117 - March 22 March 23 June 23 September 23 March 24 September 24 • Corporate guarantee outstanding of Rs. 166 crore (~ USD 20.25 mn) is for bank loan availed by Discovery Drilling against rig Jindal Pioneer. 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. This corporate guarantee continues to reduce

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 16 Sales & Marketing Update Industry and Market Trends Large orders from ONGC have been received which will be executed over next 2-3 quarters. As domestic demand is robust and new oil blocks „Amrit‟ and „Moonga‟ have been recently discovered in Mumbai offshore, fresh orders are expected considering our offering of entire range of products to oil exploration companies. Other notable findings have also been discovered by ONGC in OALP-I and OALP-III rounds. Existing orders for drill pipes (value addition & import substitution product) are being dispatched. Fresh tenders for drill pipes are expected in FY24 as domestic market size is 10,000 mt. Our drill pipes have been accepted after years of persistent efforts towards developing, testing and marketing. We have successfully dispatched entire order of subsea sour service seamless pipes (another value addition & import substitution product). More