Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Investor Presentation (August 2023)
36 slides from Shyam Metalics & Energy's investor presentation, Aug 19, 2023
Slide 1: Next Orbit Investor Presentation August 2023
Next Orbit Investor Presentation August 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Shyam Metalics and Energy Limited (“Company”) together with its subsidiaries, associates and joint ventures, as applicable (together, with the Company, the “Group”) only, without regard to any specific obje
Slide 3: Company Overview
Company Overview
Slide 4: Shyam Metalics & Energy Limited (SMEL) Ore to Metal
Shyam Metalics & Energy Limited (“SMEL”) 4th Largest Sponge Iron Player 2.07 MTPA Finished steel “Ore to Metal” in India1 , 6th largest Integrated Capacity backed by 2.7 MTPA Strategically located plants with Long Steel player and amongst Iron Making capacity with Proximity to Mineral Integrated ste
Slide 5: Company Overview
Company Overview Company Overview • Incorporated in 2002, the Company is registered in Kolkata, India 2060+ 35 0.18x Dealers & Countries Gross Debt/ • An integrated “Ore to Metal” producing Company manufacturing Pellets, Sponge Iron, Distributors Exported Equity Steel Billets, Long Steel Products &
Slide 6: Key Value Propositions
Key Value Propositions Eminent Promoters backed by Diversified Product Mix: Scaling up Experienced Senior Management Finished Steel Products 9 1 Robust Financial Profile backed by Backward & Forward Integration with proven track record 8 2 presence across the Value Chain Augured well throughout Capa
Slide 7: Derisked Business Model with Shift towards Margin Accretive Products
Derisked Business Model with Shift towards Margin Accretive Products Revenue Mix (in INR Million) Volumes (in lakh tonnes) 1,26,102 33.2 31.2 32.0 1,03,940 6.1 7.6 11.2 48% 23.1 38% 20.9 5.7 2.9 62,971 1.9 8.1 1.7 8.1 8% 8.8 46,064 8% 1.6 43,629 37% 10.2 17% 1.8 17% 23% 12% 15% 33,068 1.5 9.1 25% 17
Slide 8: Driving Integration of Multi-Product Metals Portfolio
Driving Integration of Multi-Product Metals Portfolio Prospective License for Iron Ore Mine: Multiple Sale Points across the Value Maharashtra Chain Backward Integration Railway siding Greater Control on Operating Margins 357 MW CPP Downstream Renewables – Products Captive Solar Flexibility to alter
Slide 9: Expansion with strong focus on value added products
Expansion with strong focus on value added products Integration has enabled greater control on the operating margins Capacity (MTPA) FY21 FY22 FY23 Q1FY24 Post Expansion Capacity (MTPA) Post Expansion Iron Pellet 2.40 3.60 4.80 6.00 6.00 Beneficiation 3.0 1.39 2.11 2.54 2.70 4.10 Coke Oven 0.6 Spong
Slide 10: Planned Capacity Expansion - Significant Potential for Upside
Planned Capacity Expansion - Significant Potential for Upside Steel Metal Capacity (MTPA) Stainless Steel (SS) (MTPA) Capacity Cost Category - Steel Increase (Rs. Mn) (MTPA) 1.33 1.6 7.89 Backward Integration 3.40 25,720 0.20 0.20 1.49 17.67 Downstream Products 1.49 14,880 3.4 0.50 0.50 3.56 Sub Tot
Slide 11: Capacity Expansion through Inorganic Route – Ramsarup Industries
Capacity Expansion through Inorganic Route – Ramsarup Industries (1/2) Engaged in manufacturing wires, TMT Bars and steel, acquired for Rs 3,800 Mn out of which we paid Rs 2,280 Mn for 60% stake Shyam Super Metalics & 60% Ramsarup 40% Smelters Ltd Energy Ltd Industries First Capex Infusion in Ramsar
Slide 12: Forays into Stainless Steel through Acquisition of Mittal Corp
Forays into Stainless Steel (SS) through Acquisition of Mittal Corp (2/2) Mittal Corp Industries Overview Capex Infusion in Ramsarup Industries 1.60 Leader Leading Player in Stainless Steel Flats (200 Shyam Metalics has 0.5 series and 400 Series) in India forayed into stainless steel 0.2 through acq
Slide 13: Aluminium Foil - Update
Aluminium Foil - Update Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand One of the largest Plant installed by aluminium foil Achenback (Germany), an manufacturer in India, industry pioneer plant spread over 5 acres Kickstarted and stabilised More than 60% of the plant operations in prod
Slide 14: The Edge – Low Cost of Captive Power
The Edge – Low Cost of Captive Power • Power consumed by the plants are primarily produced in-house by the 5 Turbines captive power plants Sambhalpur Total Capacity of 158 MW • Captive power plants utilise non fossil fuels such as waste, rejects, heat 4 Turbines and gas generated from the operations
Slide 15: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Strategically located in the mineral rich East Indian region Raw Material Close Proximity to Raw Material Sources are Jamuria Plant within 250 kms + Strong Logistics Infrastructure Sambalpur Plant = Kolkata Lower Logistics Cost Haldia Dhamra Parade
Slide 16: Augured well throughout Business Cycles - Leverage
Augured well throughout Business Cycles - Leverage Conservatively Leveraged – Steady Cash Accruals following Healthy Operating Performance, FY21 FY22 FY23 1.3 1.3 0.8 0.9 0.9 0.9 Gearing Ratio (x) 0.2 0.2 0.1 SMEL Peer Set 1 Peer Set 2 99.8 FY21 FY22 FY23 Highest Interest Coverage 16.9 18.5 Ratio vi
Slide 17: Augured well throughout Business Cycles - Profitability
Augured well throughout Business Cycles - Profitability Better financial performance as compared to peers operating in the long and intermediary steel sector EBITDA Margin (%) PAT Margin (%) SMEL Peer Set 1 Peer Set 2 SMEL Peer Set 1 Peer Set 2 16.6% 24.9% 21.5% 13.4% 12.1% 20.8% 19.3% 8.5% 10.6% 18
Slide 18: Financial Performance
Financial Performance De-risked & Diversified Model supporting sustainable Revenue Stream & Operating efficiency resulting in superior profitability… Growth… Total Income (INR Mn.) EBITDA (INR Mn.) EBITDA Margin % 25.0% 22.1% 25,997 1,26,101 11.8% 12.2% 1,03,939 13,942 14,859 62,970 33,060 4,040 FY2
Slide 19: Key Managerial Personnel
Key Managerial Personnel Mahabir Prasad Agarwal, Non-executive Chairman • He has over three decades of experience in the steel and ferro alloys industry • Founder and Director of our subsidiary SSPL since inception and is actively involved in the CSR activities of the company and its subsidiary Brij
Slide 20: Board of Directors
Board of Directors Dev Kumar Tiwari, Whole-time Director • He holds a bachelor’s degree in arts (honours) from Bihar University, Muzaffarpur • He has over 23 years of experience in the steel and ferro alloys industry • He is responsible for project implementation and operations of our Sambalpur manu
Slide 21: Our Strategy Going Forward
Our Strategy Going Forward Shift Towards Value Added Products portfolio by identifying different products in same distribution 1 channel. Value added products to contribute 80% in our revenue mix Build market leading position in all 4 areas of the metal space : Steel, Stainless Steel, Ferro Alloys a
Slide 22: Annexure
Annexure
Slide 23: Integrated operations across the steel value chain
Integrated operations across the steel value chain Raw Materials Processing End-Products Washery Electricity Coal Coal Washery (Captive) Rejects Char/Flu Gases TMT Bars Rotary Kilns Power Plant Rolling Mills Wire Rod Washing & Sponge Steel melting Iron Ore Fines Pelettization Pellets Billets Iron Sh
Slide 24: Detailed Plant Wise Capacities – Existing
Detailed Plant Wise Capacities* – Existing Product –Wise Pandoli, Jamuria, West Mangalpur, TOTAL Capacity (MTPA) Odisha Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Ferro Alloys 0.11 0.07 0.04 0.22 DRI 1.16 1.52 0.06 2.70 (Direct Reduced Iron) Billets 0.87 1.14 2.01 TMT, WDM, SRM 0.92 1.15 2.07 Capt
Slide 25: Detailed Plant Wise Capacities – Post Expansion : Steel
Detailed Plant Wise Capacities – Post Expansion : Steel Product –Wise Sambalpur, Jamuria, West Mangalpur, Kharagpur, TOTAL Capacity (MTPA) Odisha Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Ferro Alloys 0.11 0.07 0.06 0.24 DRI 1.75 1.98 0.06 0.15 3.94 (Direct Reduced Iron) Pig Iron / Bl
Slide 26: Detailed Plant Wise Capacities – Post Expansion : Stainless Steel
Detailed Plant Wise Capacities – Post Expansion : Stainless Steel Product –Wise Sambalpur, Pitampura, TOTAL Capacity (MTPA) Odisha Madhya Pradesh (MTPA) Stainless CR 0.2 0.2 Stainless HR 0.5 0.5 Stainless 0.15 0.15 Billets 0.13 0.12 0.25 Slabs 0.5 0.5 26
Slide 27: Strengthening Brand 'SEL'
Strengthening Brand ‘SEL’ TMT STRUCTURE WIRE RODS TMT are used for the construction of buildings, Structural steel describes hot rolled steel products such Towards forward integration, SMEL has set up high transmission towers, industrial sheds, structures, road, as angles, channels and beams. With a
Slide 28: Per Tonne Realizations
Per Tonne Realizations Ferro Products Finished Steel Steel Billets Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q -8% -12% -4% +9% -19% -3% -13% -4% +10% 57,743 53,268 1,18,619 1,10,235 52,472 50,557 48,916 50,770 1,01,372 46,125 44,378 47,681 99,863 96,553 43,395 Q1 FY23 Q4 FY23 Q1 FY24 FY22 FY23 Q1 FY23 Q4 F
Slide 29: Consolidated Statement of Profit & Loss
Consolidated Statement of Profit & Loss Particulars (in INR Mn) FY21 FY22 FY23 Q1FY24 INCOME I Revenue from operations 62,970.70 1,03,939.60 1,26,101.80 33,068.10 II Other Income 237.20 600.10 1,120.10 330.30 III Total Income (I+II) 6,32,079.00 10,45,397.00 1,27,221.90 33,398.40 IV EXPENSES Cost of
Slide 30: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities PARTICULARS (In INR Mn) FY21 FY22 FY23 I ASSETS 1 NON-CURRENT ASSETS (a) Property, plant & equipment 17,588.70 23,835.00 28,678.00 (b) Right of use assets 426.90 661.00 764.00 (c) Capital work-in-progress 5,064.00 7,683.00 27,689.00 (d) Intangible asset
Slide 31: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities PARTICULARS (In INR Mn) FY21 FY22 FY23 II EQUITY & LIABILITIES 1 EQUITY (a) Equity share capital 2,336.10 2,551.00 2,551.00 (b) Other equity 34,004.10 55,796.00 69,074.00 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 36,340.20 58,347.00 71,625.00 Non-Con
Slide 32: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Particulars (In INR Mn) FY 21 FY 22 FY 23 I. Cash flows from operating activities Restated Profit before tax 10,549.60 23,643.30 10,418.30 Adjustments for: Depreciation 3,003.60 2,724.00 4,630.80 Provision for Gratuity 17.80 9.00 65.30 Expected Credit Loss on Trad
Slide 33: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Particulars (In INR Mn) FY21 FY22 FY 23 II. Cash flows from investing activities Purchase of Property Plant & Equipment (Net) -3,610.50 -10,714.00 -15,789.20 (Increase)/ Decrease in Investment (Net) -1,269.20 -7,238.60 -3,576.40 Cash Outflow for acquisition of sub
Slide 34: CSR Initiatives
CSR Initiatives • Water Conservation- Check dam, Pond, • Yearly Eye & Medical Camp for Villagers, FREE landscaping, Plantation, Medicine & Spectacles Sustainability • Promotion of solar Light Rural Health • Free Ambulance & Drinking water Services for • Solar irrigation Pumps villagers • Promotion o
Slide 35: Glossary and Key notes
Glossary and Key notes TERM DETAIL SMEL Shyam Metalics and Energy Limited SSPL Shyam SEL and Power Limited MTPA Million Tons Per Annum MT Million Tons Bn Billion Mn Million EBITDA Earning Before Interest, Tax, Depreciation and Amortisation PAT Profit After Tax MW Mega Watt Rs. Indian Rupees CRISIL R
Slide 36: Thank You
Thank SHAHYAM METALICS
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