Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q4 FY22 Earnings Presentation
45 slides from Shyam Metalics & Energy's earnings presentation, May 18, 2022
Slide 1: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation May 2022
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shyam Metalics And Energy Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Key Updates for Q4 & FY22
Key Updates for Q4 & FY22 Strengthening Launched Salman Khan as Brand Ambassador, new promotion Brand activity underway • On track to increase the existing integrated installed facility of 7.76 million tons to Update on Capex 14.45 million tons by 2025 • Bid to takeover assets of Ramsarup Industries
Slide 4: Launched Salman Khan as Brand Ambassador
Launched Salman Khan as Brand Ambassador 4
Slide 5: Product Launch: SEL Tiger Grills n Steels
Product Launch: SEL Tiger Grills n Steels Light structural steel products integrate with strength to create a grill steel range of superior quality. The intricate manufacturing procedure used makes this range perfect for shaping into any design 5
Slide 6: Strengthening Brand 'SEL'
Strengthening Brand ‘SEL’ TMT STRUCTURE WIRE RODS TMT are used for the construction of buildings, transmission Towards forward integration, SMEL has set up high towers, industrial sheds, structures, road, dam and in other Structural steel describes hot rolled steel products such quality Wire Rod man
Slide 7: Capex Synopsis
Capex Synopsis Further Further to be Final Aggregate Capacity Aggregate Post expansion Already implemented proposed Particulars Unit capacity at the proposed in implemente implementati as approved implemented as per existing enhanced launch of IPO the IPO d capacities on on 15th expansion capacities
Slide 8: Company Overview
Company Overview
Slide 9: Shyam Metalics at a Glance
Shyam Metalics at a Glance • Leading Integrated Steel and Ferro Alloys Producer in India • 4th Largest Sponge Iron Player, Leading player in terms of Pellet Capacity • Integrated Metal Producing Company • Strategically located plants with Proximity to Mineral Belts, National Highways and • Operates
Slide 10: Eminent Promoters & Management
Eminent Promoters & Management Mahabir Prasad Agarwal, Chairman Company Overview • Over three decades of experience in the steel and ferro • Incorporated in 2002, the Company is registered in Kolkata, India alloys industry • Founder and Director of our subsidiary SSPL since • An integrated “Ore to M
Slide 11: Value Propositions
Value Propositions 1 2 3 4 5 Logistical Advantage Captive Power for Backward & Forward Flexible & Diversified Strong Brand & & Infrastructure Integration with ~81% power Product Mix Distribution Network Advantage with presence across the requirement Private Railway Sidings Value Chain 6 7 8 9 Capaci
Slide 12: Integrated operations across the steel value chain
Integrated operations across the steel value chain Raw Materials Processing End-Products Electricity Coal Coal Washery Washery Rejects (Captive) Char/Flu Gases TMT Bars Rotary Kilns Power Plant Rolling Mills Wire Rod Washing & Pellets Sponge Steel melting Shop Billets Iron Ore Fines Pelettization Pl
Slide 13: Brownfield expansion with…
Brownfield expansion with… Railway Siding Captive Power Plants Captive Water Reservoir Jamuria Plant Sambalpur Plant We have 1 manufacturing plant located in Sambalpur, Odisha and 1 manufacturing in Jamuria, West Bengal with aggregate installed capacity of 7.66 MTPA comprising of intermediate and fi
Slide 14: Detailed Plant Wise Capacities
Detailed Plant Wise Capacities Product –Wise Pandoli, Jamuria, Mangalpur, Capacity (MTPA) TOTAL Ohisha West Bengal Odisha Iron Pellets 1.8 1.8 3.6 Ferro Alloys 0.10 0.07 0.04 0.21 DRI 0.96 1.09 0.06 2.11 (Direct Reduced Iron) Billets 0.40 0.54 0.94 TMT, WDM, SRM 0.41 0.49 0.90 Captive Power 158 MW 9
Slide 15: Current Steel Capacities Across Life Cycle
Current Steel Capacities Across Life Cycle Finished Steel 0.9 MTPA WRM 0.4 MTPA (Wire Rod Mill) TMT 0.27 MTPA Iron Making Liquid Steel Structurals 0.20 MTPA DRI 2.11 MTPA SMS 0.94 MTPA (Direct Reduced Iron) (Steel Melting Shop) Pipe Mill 0.3 MTA 15
Slide 16: Foray into Aluminium Foil segment
Foray into Aluminium Foil segment Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand • Capacity: 40, 000 TPA • Plant installed by Achenback (Germany) a pioneer in the industry • Spread over 5 acres • Rolling range: 40 to 5 micron with annhealing capability, customised as per demand 16
Slide 17: …Lowest Capex compared to the Industry
…Lowest Capex compared to the Industry • Brownfield capacity expansion expected to increase aggregate installed metal capacity (comprising of intermediate and final products) from 7.76 MTPA currently to 14.45 MTPA and captive power plants aggregate installed capacity from 267 MW to 357 MW. These pro
Slide 18: Existing Products
Diversified & Interchangeable Product Mix Capacity (Million MTPA) FY18 FY19 FY20 FY21 FY22 Iron Pellet 0.90 0.90 2.4 2.4 3.6 Sponge Iron 1.01 1.01 1.27 1.39 2.10 Billets 0.54 0.63 0.80 0.89 0.94 Existing Products TMT, Structural Steel, 0.25 0.25 0.82 0.82 0.90 Wire Rods & Pipes Ferro Alloys 0.19 0.2
Slide 19: Increasing share of B2C/Value Added Products
Increasing share of B2C/Value Added Products Structural Products are hot rolled products of special TMT Bars are high-strength reinforced bars having a forms like rounds, angles, channels & beams tough outer core and soft inner core We not only make structurals of standard dimensions, but also Custo
Slide 20: Huge Export Potential
Huge Export Potential 42% 46% 12% 20 Countries Exports to countries like Steel products both upstream and Ferro Chrome Pellets USA, Japan, Korea, Italy, downstream including Angles, Ferro Manganese and Nepal, Bangladesh Beams, Billets, Channels, Wire Rods, Silico Manganese Products MS Round Coils an
Slide 21: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Strategically located in the mineral rich East Indian region ~800+ dealers & distributors stock and sell the finished products across 27 states and 1 Union Raw Material Territory Sources are within 250 kms Kolkata We sell 70% of our products Haldia
Slide 22: Lowest Cost Captive Power
Lowest Cost Captive Power • Power consumed by the plants are primarily produced in-house by the captive power 5 Captive Plants Sambhalpur Total Capacity of 158 MW plants • Captive power plants utilise non fossil fuels such as waste, rejects, heat and gas generated 3 Captive Plants Jamuria Total Capa
Slide 23: Waste to Value
Waste to Value Efficient use of by products: Effluents/Wastes from all Steam generated used Fly ash bricks are Washery rejects used in in production of Power the production activity are utilized in various product and then in Ferro Alloys created from industrial Power Plant wastes verticals to creat
Slide 24: Capacity Expansion – Share of High Value Products to Increase
Capacity Expansion –Share of High Value Products to Increase Break-up of Capacity Expansion (MTPA) 14.4 Capacity Expansion is on the existing land, will help Company augment revenues, better cost controls, 6.7 increase in profitability 7.7 Target completion between FY22 and FY25 0.2 0.2 2.0 0.2 0.2
Slide 25: Revenue mix skewed towards Finished Steel
Revenue mix skewed towards Finished Steel Revenue Mix 19% 18% 16% 17% 31% Flexibility to Sell Intermediate Product, use for 17% 23% Captive Consumption 15% 37% 38% 25% 24% 19% 12% 8% 11% 17% 25% 27% 20% 24% 18% 9% 11% 14% 2018 2019 2020 2021 2022 Ferro Alloys TMT, Structural and Pipes Steel Billets
Slide 26: Strategic Initiatives
Strategic Initiatives
Slide 27: IT Initiatives
IT Initiatives Data Traffic Data Knowledge Automation Integration Management Analytics & AI Partners Focus On High Value Easy Access Reduce TAT for vehicles Consistent Availability Activities Gate and Weighbridge Consistent Presentation Data Integrity Automation Decision Dashboards Real-time data lo
Slide 28: Impact of IT Initiatives
Impact of IT Initiatives Employee Skill Development People Agnostic ERP SAP S4 HANA Improved Business Performance Reduced Paper Assessment Documentation Digitisation Monitoring of Business Operational Operations Excellence Customer Satisfaction Enhanced ROI 28
Slide 29: Sustainable Development Goals
\, SUSTAINABLE s"% SHYAM " ay DEVELOPMENT Gé ‘ALS \ LNs 44 17 GOALS TO TRANSFORM OUR WORLD GOOD HEALTH AND WELL-BEING CLEAN WATER AND SANITATION y | CLIMATE 1 LIFE | UFE 1 PEACE, JUSTICE | PARTNERSHIPS ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS @ INSTITUTIONS SUSTAINABLE <> % GOALS 29
Slide 30: Commissioned ESG Study
Commissioned ESG Study In our move towards sustainable growth, ESG framework provides an opportunity to create a systematic approach for tangible outcomes. Growlity Inc. management consultants has carried out comprehensive diagnostic study on SMEL’s ESG fundamentals & compliance status. In Phase 1 o
Slide 31: Installed Solar Panels – Focus on Green Energy
Installed Solar Panels – Focus on Green Energy We have partnered with Fourth Partner Energy Pvt Ltd, India’s largest Commercial & Industrial Solar Developer The project has been initiated to reduce CO2 emission, and conserve water We also plan to plant 57,500 trees. On a pilot basis, initially based
Slide 32: Q4 & FY22 Financial Performance
Q4 & FY22 Financial Performance
Slide 33: Performance Highlights
Performance Highlights FY22 Revenue EBITDA PAT 65% 87% 104% Rs. 10,934 y-o-y Rs. 2,600 y-o-y Rs. 1,724 y-o-y Crores Crores Crores Q4 FY22 Revenue EBITDA PAT 22% 6% 12% y-o-y y-o-y y-o-y Rs. 2,856 Rs. 663 Rs. 443 Crores Crores Crores
Slide 34: Strong Q4 FY22 Performance
Strong Q4 FY22 Performance Revenue from Operations EBITDA Profit After Tax +22% +6% +12% Rs. 2,856 crores Rs. 663 crores Rs. 433 crores Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) Steel Products Y-o-Y +23% -37% Y-o-Y 13.2% 16.0% 6.0 4.2 4.1 Ferro Products 0.4 +2% 3.4 Q-o-Q 19.6
Slide 35: Strong FY22 Performance
Strong FY22 Performance Revenue from Operations EBITDA Profit After Tax +65% +87% +104% Rs. 10,394 crores Rs. 2,600 crores Rs. 1,724 crores Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) Steel Products +32% -15% 18.4% 17.6% 19.1 15.6 Ferro Products 1.4 16.3 1.6 11.8 8.0 17.5% Fini
Slide 36: Blended EBITDA per Tonne (Rs)
*Blended EBITDA per Tonne (Rs) -15% +41% 18,236 16,636 15,145 15,531 +3% 11,809 Q4 FY21 Q3 FY22 Q4 FY22 FY21 FY22 YoY decrease in Q4 attributable to lower pellet sales *at Consolidated level Blended EBITDA per tonne (Rs.) = EBITDA / Total Steel Volumes 36
Slide 37: Per Tonne Realizations
Per Tonne Realizations Ferro Products Finished Steel Steel Billets +41% +60% +28% +33% +30% +41% 1,13,604 1,10,235 53,720 48,916 48,102 43,395 80,844 41,899 36,651 36,873 30,864 69,087 Q4 FY21 Q4 FY22 FY21 FY22 Q4 FY21 Q4 FY22 FY21 FY22 Q4 FY21 Q4 FY22 FY21 FY22 Sponge Iron Iron Pellets +37% +45% -9
Slide 38: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q4 FY22 Q4 FY21 Y-o-Y Q3 FY21 Q-o-Q FY22 FY21 Y-o-Y Revenue from Operations 2,856.8 2,350.5 22% 2,577.8 12% 10,394.0 6,297.1 65% Cost of Material Consumed 1,795.3 1,280.0 1,640.6 6,460.9 3,716.7 Purchase of Stock 8.1 63.0 2.1 32.5 67.6 Chan
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crs.) Mar-22 Mar-21 Particulars (Rs. Crs.) Mar-22 Mar-21 ASSETS Equity Non ‐ Current Assets Equity Share Capital 255.1 233.6 Other Equity 5,579.6 3,400.4 Property, Plant and Equipment 2,383.5 1,758.9 Total Equity 5,834.7 3,634.0 Capital Work-in-Progress 76
Slide 40: Consolidated Cash Flows
Consolidated Cash Flows Cash Flow Statement Mar-22 Mar-21 Cash Flow from Operating Activities Profit before Tax 2,364.3 1,054.9 Adjustment for Non-Operating Items -224.5 -317.8 Operating Profit before Working Capital Changes 2,588.8 1,372.7 Changes in Working Capital 324.4 128.0 Cash Generated from
Slide 41: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.) Net Debt (Rs. Crs.) 1,050 960 785 448 656 347 246 480 534 -477 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.19 0.18 0.07 0.50 0.48 0.18 -0.08 -0.18 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Ma
Slide 42: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.09x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to significant (as of 31st March 2022) Disciplined Capital Allocation strategy reduction in Working capital requirements = One of Lowest Gearing amongst competitors* Be
Slide 43: CSR Initiatives
CSR Initiatives • Yearly Eye & Medical Camp for Villagers • Free Ambulance & Drinking water Services for villagers Rural Health • New Health Center & Homeopathy Clinic • FREE Medicine & Spectacles and Blood Donation Camp • FREE Coaching Center for Economic backward Section • Computer Training Center
Slide 44: CSR Initiatives
CSR Initiatives • Water Conservation- Check dam, Pond , landscaping, Plantation, • Promotion of solar Light Sustainability • Solar irrigation Pumps • Promotion of Organic Farming • Running sewing center, computer training center • Alternate source of income via enterprise development, skill Skill de
Slide 45: Shyam Metalics & Energy Limited Investor Relations Partners
Shyam Metalics & Energy Limited Mr. Pankaj Harlalka +91 9830028142 pankaj.harlalka@shyammetalics.com Investor Relations Partners Mr. Rajesh Agrawal +91 9967491495 Rajesh.agrawal@linkintime.co.in Mr. Nachiket Kale Shyam Metalics & Energy Ltd. +91 9920940808 CIN No. : U40101WB2002PLC095491 Nachiket.ka
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