1. Analyst Meet Third Quarter – 2005-06

2. Contents Operations Financials Outlook Industry Company

3. Operations – highlights Volume growth of 5.5% in crude steel and 18% in galvanised products Converter life crosses 9500 heats Blast furnace production 72,000 MT in Dec-05 Average Coke price $ 180 / ton vs $ 250 / ton in the previous quarter

4. Operations – highlights contd./….. Significant reduction in fuel rate consumption as compared to the previous quarter Channel financing facility for dealers

5. Operations – Production Q3 (In mln. tons)

6. Operations – Sales Q3 Mn ton (In mln. tons)

7. Production upto Dec, 05 vs Dec, 04 Volume mt 7% 26% 28% 13%

8. Sales upto Dec, 05 vs Dec, 04 Volume mt 24% 9% 34%

9. Operations Financials Outlook Industry Company

10. Financials – Highlights Q3 Debt equity ratio at 1 Interest cost reduced by 23% to Rs. 89.51 Crore as compared to Q3, 05 Rating assigned by CARE AA(-)

11. Financials – Highlights Q3 contd./…. Debt repayment of Rs. 227 Crore (Rs. 776 Crore up to 9 months in FY 06) Financial appraisal for 2.8 mtpa expansion completed

12. Financials – P&L Account Q3 Rs. in Crs.

13. Financials – P&L Account 9 months Rs. in Crs.

14. Operations Financials Outlook Industry Company

15. Industry Outlook Determinants of the Outlook –Price behaviour –Production data –Demand outlook –Average operating cost Examining these ……

16. Price Behaviour Source - WSD June 2005 report & Metal bulletin ($ / ton)

17. Global production data Source - IISI

18. Production Data contd./….. Source - IISI

19. Demand Outlook (In mln. tons) Source - IISI Demand to grow by +4-5% for world and +7% for Asia Pacific

20. Average operating cost Source - WSD June 2005 report ($ / ton)

21. Industry Outlook Robust economic growth particularly in infrastucture, construction & auto Consolidation in industry intensifies Chinese cutting production significantly –Aluminium industry restructuring-an example Chinese local market prices up by US $25 (source : Tex Report) Considering all factors – a stable price regime is expected Demand continues to be strong

22. Operations Financials Outlook Industry Company

23. Cost Leadership journey Ongoing projects New projects Outlook - Company

24. Cost leadership journey Optimisation of coal blend to reduce cost & get lowest consumption rate Recycling of waste upto 85 % Special measures to increase Convertor lining life – 10000 heats Beneficiation of low grade Iron ores

25. On going projects Expansion of Steel capacity from 2.5 to 3.8 Mln. tn. Expansion of Pellet plant capacity from 4.2 to 5 Mln. tn. Expansion of Hot Rolling Mill from 2 to 2.5 Mln. tn.

26. ESP Screening Sinter Plant

27. Sinter cooler Sinter Plant

28. Blast Furnace

30. Coke Oven 2

31. Capacity post expansion

32. On going projects to be commissioned in phases by 1 st quarter 2006-07. Impact for 9-10 months during FY 06 - 07

33. New projects 1.0 mtpa CRM project - March ‘07 Capacity expansion to 7 mtpa - March ‘09 Cost of the projects - Rs. 6150 Crs.

34. Product Mix Enhancement – CR complex HR Slit0.10 HR Pickled & Oiled0.10 CR Annealed & skin passed0.60 CR Full Hard0.20 Value added product profile would improve to 53%

35. Financing plan Sources of funds Rs. in crore Equity / Internal accruals: 2550 Debt: 3600 Total: 6150

36. Key ratios All figures annualised wherever necessary

37. Rights Issue

38. Rights-Broad Terms Fund raising upto Rs. 400 crs. (without warrants) Entitlement ratio on equity shares 1:8 Warrants entitlement of one Series A & one Series B warrant for every equity share offered on rights basis Warrant conversion period –Series A : 18 - 36 months from allotment date –Series B : 24 - 48 months from allotment date

39. The terms of warrants issue shall be decided by the committee of the Board Warrants to be listed on allotment and will be tradable Rights-Broad Terms

40. Thank You