Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q2 FY2021 Earnings Presentation
31 slides from Sarda Energy & Minerals's earnings presentation, 2020
Slide 1: Mining Steel Ferro-Alloys Hydro
MINING STEEL F E R R O-A L L O Y S HYDRO
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sarda Energy & Minerals Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 3: Agenda
Agenda 1 Q2/H1FY21 : Result Highlights 2 SEML – Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 4: Q2/H1FY21: Result Highlights
Q2/H1FY21 : Result Highlights
Slide 5: Covid-19 | Operations Return to Normalcy
Covid-19 | Operations Return to Normalcy Steel & Ferro - Witnessing recovery in demand post unlocking – Sales (‘000 MT) Hydro Power - Remains largely un-impacted 34 32 7 Operational plants 5 32 Highest ever hydropower generated in Q2FY21 at 65.23 5 29 27 Mn KwH 8 39 6 54 18 3 23 142 Under-execution
Slide 6: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q2FY21 Q2FY20 YoY Q1FY21 QoQ H1FY21 H1FY20 YoY Revenues 548 550 347 896 1,106 Other Income 26 11 38 64 22 Total Income 574 561 2% 386 49% 960 1,128 -15% Raw Material 342 372 216 558 723 Employee Expenses 21 22 21 43 47 Other Operating Expenses 53 68
Slide 7: Balance Sheet - Consolidated
Balance Sheet - Consolidated Liabilities (Rs. Crore) Mar-20 Sep-20 Assets (Rs. Crore) Mar-20 Sep-20 Shareholder’s Funds 1,867 1,965 Non-current Assets 2,796 2,864 Share capital 36 36 Property, plant & equipment 1,209 1,176 Other equity 1,831 1,929 Capital W.I.P 1,365 1,471 Minority Interest 100 101
Slide 8: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q2FY21 Q2FY20 YoY Q1FY21 QoQ H1FY21 H1FY20 YoY Revenues 373 381 231 604 802 Other Income 33 26 19 52 34 Total Income 406 407 0% 251 62% 656 835 -21% Raw Material 226 267 148 374 521 Employee Expenses 16 17 17 33 37 Other Operating Expenses 53 47 31 84
Slide 9: Balance Sheet - Standalone
Balance Sheet - Standalone Liabilities (Rs. Crore) Mar-20 Sep-20 Assets (Rs. Crore) Mar-20 Sep-20 Shareholder’s Funds 1,731 1,805 Non-current assets 1,404 1,391 Share capital 36 36 Property, plant & equipment 497 473 Other equity 1,695 1,769 Capital W.I.P 26 28 Non-current Liabilities 306 291 Invest
Slide 10: Steel and Ferro Segment: Production & Sales (volumes)
Steel and Ferro Segment: Production & Sales (volumes) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billets (‘000 MT) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) Production Sales Note: 1) During Q2FY21, the Pellet plant was shut down for 17 days for scheduled maintenance
Slide 11: Steel Segment: Product wise Incremental Realization
Steel Segment: Product wise Incremental Realization Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 45000 40000 1,745 1,458 2,496 2,631 35000 4,593 6,278 5,032 5,477 2,383 2,790 2,578 1,849 2,450 3,867 30000 3,092 4,679 3,409 3,789 13,756 Rs. /MT 12,907 14,011 25000 13,795 10,669 11,749
Slide 12: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Power (Thermal) All Fig. in Mn KwH unless specified Power (Hydro) Generation Sales Thermal Power (Captive) Capacity : 162 MW Hydro Power Capacity : 29.7 MW Note: Thermal power generation in Q2FY21 was impacted as one power plant was shut down for repairs f
Slide 13: SEML – Consistent & Disciplined Growth
SEML – Consistent & Disciplined Growth
Slide 14: SEML at Glance (FY20)
SEML at Glance (FY20) Steel Business Hydro Power Financials Pellet Production Billet Production Operational Capacity 6 Lac MT Revenue from Operations EBITDA* 1.76 Lac MT 29.7 MW INR 2,000 Cr INR 396 Cr Wire Rod Production 1.42 Lac MT Capacity Under Execution PAT Dividend Per Share 120.9 MW INR 128 C
Slide 15: Sarda's Transformation Journey
Sarda’s Transformation Journey… ▪ Billet capacity increased by 50% ▪ Acquired Raipur Wires and Steel as a ▪ Company started 24 MW captive power ▪ Pellet Capacity proposed to increase from sick unit in 1979 plant and Ferro Alloy plant in 2001 6,00,000 MT to 8,00,000 MT in FY21 ▪ Installed 10 MT elect
Slide 16: Under Strong Leadership
…Under Strong Leadership Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • MS in Industrial Administration from experience in Iron and Steel Industry Purdue University, USA • Responsible for steering SEML towards • Industry experience of more than 15 the path of gro
Slide 17: Company's Asset Footprint
Company’s Asset Footprint Plants / Facilities Hydro Plant at Uttarakhand Hydro Plant at Sikkim Hydro Plant at Gullu Steel Plant (SEML** Plant) at Siltara Ferro Alloy Plant at Vizag under SMAL* Siltara plant is located within ~140 kms from Iron Ore mine (Rajnandgaon) and ~300 kms from Coal mines Iron
Slide 18: Strategic Priorities
Strategic Priorities
Slide 19: Strategic Priorities
Strategic Priorities Vertically Integrated Steel Player 1 Raw Material Security / Better Control / Lower Cost of Production Hydro Business Expansion 2 Visibility of incremental Stable Cashflow Strategic Priorities Disciplined Growth 3 Consistently improving Balance Sheet Strength Health, Safety & So
Slide 20: Vertically Integrated Steel Player
Vertically Integrated Steel Player… Iron Ore Pellets Sponge Iron Billets Wire Rods HB Wires Semi finished steel product 140 km near SEML Plant, Produced from Iron Ore fines Produced from captive Iron Ore Hot rolled product made from HB Wires- Wire rods are cold Description produced by continuous cas
Slide 21: Presence in Ferro Alloys
… presence in Ferro Alloys • Two operational plants located at Raipur and Vizag with a total installed capacity of Ferro Alloys Exports (‘000 MT) 111 MVA • Manufactures manganese-based Ferro Alloys sold domestically as well exported to 86 other countries 64 • Leading exporter of manganese-based Ferr
Slide 22: Hydro Power Expansion
Hydro Power Expansion… Operational Capacity Under Execution Uttarakhand Chhattisgarh Sikkim Chhattisgarh 4.8 MW 24.9 MW 96 MW 24.9 MW Operational since 2008 Operational since 2017 Likely to be commissioned by Likely to be commissioned in December 2020* FY25 Debt free operation & operated at 47% PLF
Slide 23: Disciplined Growth
Disciplined Growth Consistently improving Balance Sheet Strength 2,500 3 All Fig. in Cr. unless specified 2,132 2.5 Working 2,000 1,867 Rs. Cr Term Loan Total 1,807 Capital 1,768 1,743 1,702 1,576 2 1,537 Steel 562 164 726 1,500 1,358 1,223 1.5 Hydro Operational 110 - 110 1.45 1.26 Total 672 164 836
Slide 24: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility • SEML awarded - Appreciation Award for • Adopted 90 single-teacher schools in the Best Company in the Entire Eastern Region tribal areas of Chhattisgarh on Safety category • Actively sponsors medical facilities, • Safety is taken as top priority assis
Slide 25: Annual Financial Highlights
Annual Financial Highlights
Slide 26: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr FY16 FY17 FY18 FY19 FY20 Revenues 1,486 1,434 2,217 2,324 2,000 Other Income 35 67 70 17 -17 Total Income 1,521 1,502 2,287 2,341 1,983 Raw Material 964 942 1,478 1,493 1,293 Employee Expenses 68 75 77 87 88 Other Operating Expenses 259 200 260 261 2
Slide 27: Balance Sheet Highlights - Consolidated
Balance Sheet Highlights - Consolidated INR in Cr FY16 FY17 FY18 FY19 FY20 Share Capital 36 36 36 36 36 Tangible Networth 1,230 1,358 1,577 1,707 1,831 Long Term Borrowings 966 1,015 1,059 1,078 1,436 Other Liabilities 595 706 741 860 796 Total Liability 2,827 3,115 3,413 3,682 4,100 Net Fixed Asset
Slide 28: Yearly Volume Trend (1)
Yearly Volume Trend (1) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 600 600 600 600 325 495 304 302 175 438 278 266 157 384 135 136 133 313 176 253 161 143 150 148 208 38 33 29 30 20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Produ
Slide 29: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 142 149149 145 139 119 128 124123 118 121 113 30 29 29 113 28 101 27 26 107 97 92 86 23 21 20 21 72 64 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Production for FY20 was af
Slide 30: Yearly Power Generation
Yearly Power Generation Thermal Power – Mn units Hydro Power – Mn units 1,182 1,076 1,013 1,010 999 115115 85 85 463 74 74 197 173 145 142 18 18 19 19 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: Thermal Power is largely consumed for captive use; Thermal power generation in FY20 impacted
Slide 31: Thank You
Thank You Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma / Ms. Sheetal Keswani njoshi@seml.co.in pooja.sharma@stellar-ir.com / sheetal@stellar-ir.com 125 B-Wing Mittal Court, Nariman Point, Mumbai 400 021 Kanakia Wall Street, Andheri (East), Mumbai 400 093
Sarda Energy & Minerals — Q2 FY2021 Earnings Presentation on 6ix