Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q3 FY2020 Earnings Presentation
30 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 Q3 & 9M FY20 : Result Highlights 2 SEML – Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 4: Q3 & 9M FY20 : Result Highlights
Q3 & 9M FY20 : Result Highlights
Slide 5: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q3FY20 Q3FY19 YoY Q2FY20 QoQ 9MFY20 9MFY19 YoY Revenues 456 614 550 1,562 1,828 Other Income 15 8 11 37 -8 Total Income 472 622 -24% 561 -16% 1,599 1,820 -12% Raw Material 297 396 372 1020 1167 Employee Expenses 23 21 22 69 61 Other Operating Expense
Slide 6: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q3FY20 Q3FY19 YoY Q2FY20 QoQ 9MFY20 9MFY19 YoY Revenues 342 442 381 1143 1303 Other Income 36 15 26 69 15 Total Income 377 457 -17% 407 -7% 1213 1318 -8% Raw Material 229 282 267 750 801 Employee Expenses 18 16 17 55 47 Other Operating Expenses 39 41 4
Slide 7: Operating Performance (Volumes)
Operating Performance (Volumes) Iron Ore Pellets Sponge Iron Steel Billets Wire Rod H. B Wires Ferro Alloys Note: A part of all production is captively consumed for production of downstream products Production Sales All Fig. in ‘000 MT unless specified 7
Slide 8: Steel Business: Product wise Incremental Realization
Steel Business: Product wise Incremental Realization Value Addition Realization 8
Slide 9: Sikkim Hydro Project nearing completion
Sikkim Hydro Project nearing completion COMPLETE VIEW OF BARRAGE SERVICE, COMPLETE VIEW OF DESILTING BASIN INLET HEAD RACE TUNNEL COMPLETED UNDER-SLUICE GATE SERVICE, STOPLOG AND TRASH RACK 60/ 75 MVA GENERATOR TRANSFORMERS STRINGING WORK IN 220KV TRANSMISSION LINE 220KV GIS INDOOR ERECTION AT PGCIL
Slide 10: Quarterly Generation & Sales - Power Business
Quarterly Generation & Sales - Power Business Power (Thermal) Power (Hydro) Thermal Power (Captive) Capacity : 162 MW All Fig. in Mn KwH unless specified Generation Sales One Power unit under shutdown at Raipur in Q3FY20, affected Thermal Power 10 generation, normal operations resumed from end Nov 2
Slide 11: SEML – Consistent & Disciplined Growth
SEML – Consistent & Disciplined Growth
Slide 12: SEML at a Glance (FY19)
SEML at a Glance (FY19) Steel Business Hydro Power Financials Pellet Production Billet Production Operational Capacity Revenue EBITDA 6 Lac MT 1.56 Lac MT 28.8 MW INR 2,217 Cr INR 499 Cr Wire Rod Production 1.18 Lac MT Capacity Under Execution PAT Dividend Per Share 120 MW INR 207 Cr INR 5/Share Fer
Slide 13: Sarda's Transformation Journey
Sarda’s Transformation Journey… ▪ Billet capacity proposed to be ▪ Company started 24 MW captive ▪ Acquired Raipur Wires and Steel as increased by 50% power plant and Ferro Alloy plant a sick unit in 1979 in 2001 ▪ Pellet Capacity proposed to increase ▪ Installed 10 MT electric arc furnace from 6,00
Slide 14: Under Strong Leadership
…Under Strong Leadership Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 44 years • MS in Industrial Administration from experience in Iron and Steel Industry Purdue University, USA • Responsible for steering SEML towards the path of growth • Industry experience of more than
Slide 15: Company's Asset Footprint
Company’s Asset Footprint Plants / Facilities Hydro Plant at Uttarakhand Hydro Plant at Sikkim Hydro Plant at Gullu Rajnandgaon (Iron Ore mine) to Siltara (SEML Steel Plant (SEML** Plant) at Siltara Plant) 140 kms Ferro Alloy Plant at Vizag under SMAL* Iron Ore Mine at Rajnandgaon Lower transportati
Slide 16: Strategic Priorities
Strategic Priorities
Slide 17: Strategic Priorities
Strategic Priorities Vertically Integrated Steel Player 1 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 & Social Responsibility 4 Fo
Slide 18: 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 produced by continuous Siltara sold
Slide 19: 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 other countries • Leading exporter of the Ferro Alloys • Exports
Slide 20: 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 To be commissioned in 1QFY21 Debt free operation & operated at 45.42% Expected long term PLF to be around 40-45% Large h
Slide 21: Disciplined Growth
Disciplined Growth Consistently improving Balance Sheet Strength Working Rs. Cr Term Loan Total Capital Steel 424 224 648 Hydro Operational 120 - 120 Total 544 224 768 Hydro 594 - 594 Under execution Total 1,138 224 1,362 Steel Business includes Loans on major subsidiaries SEML & SMAL Hydro Business
Slide 22: Focus on Safety, Health & Social Responsibility
4 Focus on Safety, Health & Social Responsibility • SEML awarded - Appreciation Award for Best Company in the Entire • Adopted 90 single-teacher schools in Eastern Region on Safety category the tribal areas of Chhattisgarh • Safety is taken as top priority • Actively sponsors medical facilities, • R
Slide 23: Annual Financial Highlights
Annual Financial Highlights
Slide 24: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr FY15 FY16 FY17 FY18 FY19 Revenues 1,760 1,486 1,434 2,217 2,324 Other Income 63 35 67 70 17 Total Income 1,822 1,521 1,502 2,287 2,341 Raw Material 883 964 942 1,478 1,493 Employee Expenses 72 68 75 77 87 Other Operating Expenses 428 259 200 260 261
Slide 25: Financial Performance
Financial Performance Total Income EBITDA PAT 25 All Fig. in Cr. unless specified
Slide 26: Balance Sheet Highlights – Consolidated
Balance Sheet Highlights – Consolidated INR in Cr FY15 FY16 FY17 FY18 FY19 Share Capital 36 36 36 36 36 Tangible Networth 1,292 1,230 1,358 1,577 1,778 Long Term Borrowings 999 966 1,015 1,059 1,128 Other Liabilities 726 595 706 741 723 Total Liability 3,053 2,827 3,115 3,413 3,665 Net Fixed Asset B
Slide 27: Yearly Volume Trend
Yearly Volume Trend Iron Ore Pellets Sponge Iron Steel Billet All Fig. in ‘000 MT unless specified 27 Note: A part of all production is captively consumed for production of downstream products Production Sales
Slide 28: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod H. B Wires Ferro Alloys All Fig. in ‘000 MT unless specified 28 Note: A part of all production is captively consumed for production of downstream products
Slide 29: Yearly Power Generation
Yearly Power Generation Power (Thermal) Power (Hydro) All Fig. in Mn units unless specified Generation Sales 29 Note: A part of all production is captively consumed for production of downstream products
Slide 30: Thank You
Thank You Mr. Nilay Joshi (Head – Corporate Finance) Mr. Gaurang Vasani / Mr. Abhishek Bhatt njoshi@seml.co.in vgaurang@stellar-ir.com / abhishek@stellar-ir.com 125 B-Wing Mittal Court, Nariman Point, Mumbai 400 021 Kanakia Wall Street, Andheri (East), Mumbai 400 093 www.seml.co.in
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