Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY2024 Earnings Presentation
42 slides from Sarda Energy & Minerals's earnings presentation, 2023
Slide 1: Sarda Energy & Minerals Limited Investor Presentation Q1FY24
Investor Presentation | Q1FY24 Sarda Energy & Minerals Limited ‘It’s Energy and Minerals, Not Only Steel’
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: Table of Contents
Table of Contents 1 Sustainable Growth Strategy 2 Q1FY24 - Key Highlights g 3 SEML – Beyond Steel . 4 Corporate Social Responsibility 5 Financials g h ‘It’s Energy and Minerals, Not Only Steel’ 3
Slide 4: Building Blocks: Beyond Metals for Sustainable Growth
Building Blocks: Beyond Metals for Sustainable Growth Backward Integration Diversification Strong Focus on ESG To Reduce Input Costs and Ensure To Reduce Cyclicality Responsible Corporate Citizen Consistent Supply ₹ Financial Prowess Capacity Expansion Augurs Well for Growth To Support Growth ‘It’s
Slide 5: Creating Competencies Across the Value Chain & Diversifying Revenues
Creating Competencies Across the Value Chain & Diversifying Revenues ... Minerals Energy Metals SEML (Iron Ore & Coal) (Thermal & Hydro) (Steel & Ferro) IRON ORE MINE THERMAL POWER STEEL PRODUCTS* ▪ Captive - Rajnandgaon, Chhattisgarh ▪ Captive – Siltara Plant (81.5 MW) o Pellets (8 lac MT) (1.5 MMT
Slide 6: Well-Diversified Cashflow Profile of the Company
… Leading to a Well-Diversified Cashflow Profile of the Company… Operating EBITDA Bridge (INR Cr) – Q1FY24 ...Spread across cyclical and non-cyclical business streams ‘It’s Energy and Minerals, Not Only Steel’ 6
Slide 7: Improvement in Debt Profile and Credit Rating
Improvement in Debt Profile and Credit Rating Standalone (INR Cr) Gross Debt Net Debt* SEML - Credit Ratings – Upward Trajectory 391 345 270 174 171 134 (127) (317) Mar-20 Mar-21 Mar-22 Mar-23 Consolidated (INR Cr) Gross Debt Net Debt* 1,687 1,714 1,581 1,383 1,401 1,407 Name of Subsidiary Reviewed
Slide 8: Augmenting Capacity to Foster Growth
Augmenting Capacity to Foster Growth ➢ Gare Palma IV/7 Coal Mine Chhattisgarh: Capacity Enhanced from1.2 MTPA to 1.44 MTPA in May-23 and seeking approvals for further enhancement to 5.2 MTPA which will be carried out in phases Minerals ➢ Shahpur West Coal Mine, Madhya Pradesh: Eextractable reserves
Slide 9: Strong Focus on ESG
Strong Focus on ESG • Existing Hydropower portfolio of 141.8 MW and another 24.9 MW Rehar Hydropower plant under execution • Few more small hydropower projects are under different stages of approval • Existing 21.5 MW of Waste Heat power generation • Prudent governance philosophies and sustainable b
Slide 10: Q1FY24 | Key Highlights
Q1FY24 | Key Highlights
Slide 11: Robust Performance Amidst Challenging Environment
Robust Performance Amidst Challenging Environment Financial Performance (Consolidated INR Cr) Revenue From Operations Operating EBITDA Margin (%) PAT * Margin (%) 35% 29% 30% 1261 1076 1052 25% 19% 20% 173 172 20% 15% 115 366 10% 209 209 14% 15% 5% 10% 0% Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1
Slide 12: Consolidated P&L Highlights
Consolidated P&L Highlights INR in Cr Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23 FY22 YoY Revenue from Operations 1052 1,261 -17% 1,076 -2% 4,212 3,914 8% Other Income 83 -39 24 49 50 Total Income 1,135 1,222 -7% 1,100 3% 4,261 3,964 7% Raw Material 679 723 709 2,495 2,086 Employee Expenses 35 32 31 127 113
Slide 13: Standalone P&L Highlights
Standalone P&L Highlights INR in Cr Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23 FY22 YoY Revenue from Operations 760 819 -7% 816 -7% 3,020 2,642 14% Other Income 80 -32 17 87 75 Total Income 840 788 7% 833 1% 3,108 2,717 14% Raw Material 517 463 511 1,789 1,467 Employee Expenses 26 24 23 95 82 Other Operating
Slide 14: Steel Segment – Price Trend
Steel Segment – Price Trend Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,784 677 1,818 3,295 4,136 2,456 4,897 3,201 2,883 2,454 4,181 2,315 2,348 3,061 3,602 4,037 3,266 3,246 18,888 18,124 INR / MT 15,340 13,774 16,141 12,453 15,307 17,098 14,380 Value Addition 15,435 18,550 20,2
Slide 15: Steel Segment – Production & Sales Trend (1/2)
Steel Segment – Production & Sales Trend (1/2) Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 226 88 62 Production 216 84 59 188 51 65 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 33 9 1
Slide 16: Steel Segment - Production & Sales Trend (2/2)
Steel Segment - Production & Sales Trend (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 10 10 53 Production 52 51 50 43 9 44 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 43 10 10 10 52 40 46 35 39
Slide 17: Power Segment - Generation & Sales Trend
Power Segment - Generation & Sales Trend Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~141.8 MW G E NE RATIO N ( M N KWH) G E NE RATIO N ( M N KWH) 321 314 149 307 101 30 Q1F Y23 Q4F Y23 Q1F Y24 Q1F Y23 Q4F Y23 Q1F Y24 SALE S ( M N KWH ) SALE S ( M N K
Slide 18: SEML | Beyond Steel
SEML | Beyond Steel
Slide 19: Robust and Diversified Business Model
Robust and Diversified Business Model Adding Value through Minerals and Energy MINERALS ENERGY METALS ✓ Iron Ore mine and Coal Mines provide long term ✓ To de-risk from the cyclicality of Metals business, ✓ Vast experience of 50 years in Steel Manufacturing stability of raw materials & energy. SEML
Slide 20: Strategically Located Assets – Proximity to Raw Materials and End Users
Strategically Located Assets – Proximity to Raw Materials and End Users… Steel and Ferro plant at Siltara, Chhattisgarh Pellets (8 lac MT), Sponge Iron (3.6 lac MT), Billets (3 lac MT), Wire Rod (2.5 lac MT), H.B. Wire (36K MT) and Ferro Alloys (45 MVA), backed by Thermal Power (60 MW) and Waste Hea
Slide 21: Built Over Five Decades of Excellence
…Built Over Five Decades of Excellence 1979-88 1989-98 1999-08 2008-17 2018-23 ▪Acquired Raipur Wires and ▪Installed 25 TPD Electric Arc ▪Company started 24 MW ▪4.8 MW Hydro power plant ▪Billet capacity increased by 50% Steel as a sick unit in 1979 Furnance in 1990 captive power plant and commission
Slide 22: Well-Experienced and Strong Leadership at the Helm
Well-Experienced and Strong Leadership at the Helm Kamal Kishore Sarda Pankaj Sarda Padam Kumar Jain Manish Sarda Neeraj Sarda CMD Joint MD Director & CFO DMD, SMAL DMD, SMAL • Mechanical Engineer with • Mechanical Engineer with • CA, CS with a rich • MBA in International • MBA in Finance & 46 years
Slide 23: Business Segment
SARDA SARDA ENERGY & MINERALS LTD. Business Segment D ANNIVERSARY
Slide 24: Metals: Well-Established, Robust Presence Across Steel Products
Metals: Well-Established, Robust Presence Across Steel Products… Pellets Sponge Iron Billets Wire Rods HB Wires Semi finished steel product Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Produced from captive Iron Description produced by continuous from direct hot billet cold
Slide 25: A Leading Manufacturer and Exporter of Ferro Alloys
…And a Leading Manufacturer and Exporter of Ferro Alloys ▪ Manufactures manganese-based Ferro Alloys sold domestically as Domestic Sales ('000 MT) Exports ('000 MT) well as exported to other countries ▪ Leading exporter of manganese-based Ferro Alloys ▪ Exports Awards: ▪ SEML received Two-Star expor
Slide 26: Minerals & Energy: Captive Resources Driving Down Costs Significantly
Minerals & Energy: Captive Resources Driving Down Costs Significantly Captive Iron Ore Mine Coal Mines Captive Thermal + Waste Heat Plants (Total Capacity of 1.5 MMT p.a.) (Total Capacity of 2.04 MMT p.a.) (Total capacity of 161.5 MW) • Located at Rajnandgaon, Chhattisgarh, which is ▪ Gare Palma IV/
Slide 27: Energy: Hydropower Assets having ~141.8 MW Operational Capacity
Energy: Hydropower Assets having ~141.8 MW Operational Capacity… 4.8 MW 24 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of 2008 2017 2021 Commissioning Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination 35-year PPA with Term
Slide 28: Track Record of Robust PLF and Annuity-like Revenue + High Margin
…With Track Record of Robust PLF and Annuity-like Revenue + High Margin Generation and Sales (Mn KwH) Revenue (INR Cr) & EBITDA Margin (%) Generation Sales 400 100% 532 88% 86% 85% 90% 494 350 322 80% 423 423 300 69% 70% 271 70% 250 60% 200 50% 150 40% 30% 115 115 129 129 100 58 68 20% 85 85 45 50 1
Slide 29: Corporate Social Responsibility
Corporate Social Responsibility
Slide 30: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility 23 7 3 3 2 CY18 CY19 CY20 CY21 CY22 ‘It’s Energy and Minerals, Not Only Steel’ 30
Slide 31: Education, Culture and Arts
Education, Culture and Arts ▪ Financial Support for NEET Coaching at Dongarbore, 100 participants ▪ Financial Support for local cultural programme at Raigarh and Asthottar Mahyagya at Rajgarh ▪ Physics & Chemistry lab material support to Govt college Kharora ▪ Painting Competition on Environmental i
Slide 32: Healthcare and Infrastructure
Healthcare and Infrastructure ▪ Celebration of World Health Day at Mandhar Village. ▪ Repair and Renovation of Ambedkar Chowk at Siltara village. ▪ Organized a health Camp in Mandhar Village with Urmila ▪ Pond Deepening work at Rajgarh-Pata village Memorial Hospital, benefitting 53 women and young g
Slide 33: Livelihood: Environmental & Economic Sustainability
Livelihood: Environmental & Economic Sustainability ▪ Potable Drinking Water supply through water tanker at Siltara & Mandhar village ▪ Support for Broken bricks in villages Mandhar, Siltara & Tada village for school and Gothan ▪ Distribution of Bag & Certificates to Sewing Training participants thr
Slide 34: Financials
SARDA SARDA ENERGY & MINERALS LTD. Financials D ANNIVERSARY
Slide 35: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 3,410 3,004 • Improving TOL/ NW ratio along 2,218 2,199 2,190 2,132 with strong liquidity position. 1,971 1,870 1,743 1,807 • With additional cashflows post commissioning of Sikkim Hydro 1.14 project and operationalization of 1
Slide 36: Consolidated P&L – Consistent Growth with High Profit Margins
Consolidated P&L – Consistent Growth with High Profit Margins INR in Cr FY19 FY20 FY21 FY22 FY23 Revenues 2,324 2,000 2,199 3,914 4,212 Other Income 17 -17 144 50 49 Total Income 2,341 1,983 2,343 3,964 4,261 Raw Material 1,493 1,293 1,347 2,086 2,495 Employee Expenses 87 88 89 113 127 Other Operati
Slide 37: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Share Capital 36 36 36 36 35 Tangible Networth 1,707 1,834 2,182 2,968 3,375 Minority Interest 132 100 101 104 100 Long Term Borrowings 1,078 1,408 1,493 1,196 1,063 Short Term
Slide 38: Yearly Trend | Production and Sales (1/2)
Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet PRODUCTION ('000 MT) PRODUCTION ('000 MT) PRODUCTION ('000 MT) 800 741 325 228 600 600 619 192 302 175 177 291 294 290 157 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 SALES ('000 MT) SA
Slide 39: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys PRODUCTION ('000 MT) PRODUCTION ('000 MT) PRODUCTION ('000 MT) 190 147 161 164 142 39 145 159 119 32 124 132 23 26 21 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 SALES ('000 MT) SALES ('000 MT)
Slide 40: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~141.8 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,076 1,079 1,083 999 532 964 494 423 423 115 115 129 129 173 142 85 85 103 76 71 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22* FY2
Slide 41: Share Price Information
Share Price Information Volume ('000 shares) Close Price (Rs) 2,100 250 1,900 200 1,700 1,500 150 1,300 1,100 100 900 50 700 500 - 28-Jul-22 28-Aug-22 28-Sep-22 28-Oct-22 28-Nov-22 28-Dec-22 28-Jan-23 28-Feb-23 31-Mar-23 30-Apr-23 31-May-23 30-Jun-23 31-Jul-23 Capital Market Information (as on 31-Ju
Slide 42: Thank You
THANK YOU Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma / Ms. Vinita Pandya njoshi@seml.co.in pooja.sharma@stellar-ir.com / vinita@stellar-ir.com 125 B-Wing Mittal Court, Nariman Point, Mumbai 400 021 A-405, Kanakia Wall Street, Andheri (East), Mumbai 400 093 www.seml.co.in ‘It’s Energ
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