Lloyds Metals & Energy Ltd. · NSE:LLOYDSME
Lloyds Metals & Energy — H1 FY2024 Earnings Presentation
38 slides from Lloyds Metals & Energy's earnings presentation, Oct 23, 2023
Slide 1: Intimation of Earnings Presentation to Exchanges
Date: 23rd October, 2023 To, BSE Limited National Stock Exchange of India The Corporate Relationship Department Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400001 Bandra (East), Mumbai - 400 051 BSE Scrip Code: 512455 NSE Symbol: LLOYDSME Head- Lis
Slide 2: Investor Presentation October 2023
{ JLLOYDS METALS Investor Presentation
Slide 3: H1/Q2-FY24 Consolidated Highlights
H1/Q2-FY24 Consolidated Highlights Company H1-FY24 Financial Performance • Revenue for H1FY24 stood at INR 30,886 Mn, higher by 100% YoY.. Q2FY24 revenue, too, grew by 62% YoY. Higher iron ore volumes led to such robust growth. INR 30,886 Mn INR 8,540 Mn • EBITDA for H1-FY24 stood at INR 8,540 Mn, h
Slide 4: Unlocking Value through Pellet Marketing - LMELPEL
Unlocking Value through Pellet Marketing - "LMELPEL Lloyds Metals has commenced seed marketing of pellets through the Mandovi River Pellet Plant (MRPL), a strategic partner. This collaboration involves the sale of iron ore fines to MRPL, which transforms them into pellets for subsequent sale to Lloy
Slide 5: Management Commentary
Management Commentary Commenting on overall performance, Mr Rajesh Gupta– Managing Director, said: “Despite Q2FY24 being a traditionally softer quarter for mining due to the monsoon season, Lloyds Metals has defied expectations. Encouragingly, we saw improved realisations and reported better EBITDA
Slide 6: Quarterly Product-Wise Performance
Quarterly Product-Wise Performance Iron Ore DRI & Power 30.35% 17,189 2,613 30.42% 1,850 1,722 26.80% 9,404 26.57% 15.35% 5,035 4,607 2,854 795 1,338 284 6.17% 106 Q2-FY23 Q1-FY24 Q2-FY24 Q2-FY23 Q1-FY24 Q2-FY24 Revenue (INR Mn) EBIT (INR Mn) EBIT Margins (%) Revenue EBIT EBIT Margins Iron Ore DRI P
Slide 7: H1FY24 Product wise Performance
H1FY24- Product wise Performance Iron Ore DRI & Power 22.51% 4,335 29.92% 26,589 3,896 20.78% 28.06% 11,561 7,461 877 901 3,459 H1FY23 H1FY24 H1FY23 H1FY24 Revenue Revenue EBIT EBIT Margins Revenue (INR Mn) EBIT (INR Mn) EBIT Margins (%) Iron Ore DRI Power Sales (MMT) Sales (’000 MT) Sales (Mn Units
Slide 8: Quarterly Consolidated Financial Performance
Quarterly Consolidated Financial Performance Particulars (INR Mn) Q2-FY24 Q2-FY23 Y-o-Y Q1-FY24 Q-o-Q Total Income 11,112 6,864 62% 19,774 (44)% Total Expenses 8,050 5,168 56% 14,297 (44)% EBIDTA 3,062 1,696 81% 5,477 (44)% EBIDTA Margins (%) 27.56% 24.71% 285 Bps 27.70% (14) Bps Depreciation and am
Slide 9: Half Yearly Consolidated Financial Performance
Half Yearly Consolidated Financial Performance Particulars (INR Mn) H1-FY24 H1-FY23 Y-o-Y Total Income 30,886 15,416 100% Total expenses 22,346 10,976 104% EBIDTA 8,540 4,440 92% EBIDTA Margins (%) 27.65% 28.80% N.A Depreciation and amortization 178 105 69% Finance costs 15 267 (94)% Profit Before E
Slide 10: Company Overview
Company Overview www.lloyds.in 9
Slide 11: Snapshot
Snapshot Iron Ore mine with High Grade Iron ore extractable reserves of Total Lease area 348.09 Mines on allocation basis deposit comprises of Current production 180mnt + 550mnt BHQ Hectare with a mining hence no premium to be Hematite in Maharashtra capacity of iron ore at 10 (preliminary) period o
Slide 12: Company Overview
Company Overview • Lloyds Metals and Energy Limited (LMEL) is a metals and mining company engaged in mining iron ore, manufacturing sponge iron and generating power. Total Income (INR Mn) & EBITDA Margins (%) • The company was founded in 1977 by Mr R.N Gupta, Mr Mukesh Gupta, Mr B.L. Agarwal and Mr
Slide 13: Key Milestones
Key Milestones Reached 100% mining capacity of 3 MMTPA and Received environmental clearance to The Group LMEL signed The Group mine 10MMTPA started LMEL enhanced MDO MOU started India’s LMEL Listed ON NSE India’s 2nd DRI capacity to with Thriveni galvanizing line 2nd Hot Rolling commissioned 2,70,00
Slide 14: Current Business Overview
Current Business Overview Picture Picture Picture Iron Ore Mining Intermediate Steel Captive Power Iron Ore Direct Reduced Iron Power Generation Capacity : 10 MMTPA 350 KTPA 35 MW DRI Plant Mining lease Ghugus, Chandrapur District Power Generation Surjagarh Village, Gadchiroli District Ghugus, Miner
Slide 15: Strategically Located Facilities
Strategically Located Facilities Gorakhpur Madhya Pradesh Gujarat Maharashtra Chhattisgarh Iron Ore Mine Odisha Karnataka Telangana Tirupati Bilsarika Sponge Reactive Metals Kumar Meta Corp Iron Pvt Ltd. Pvt Ltd. Ltd. The Surjagarh Iron Ore Mine (SIOM) is strategically located at the centre of India
Slide 16: Current Integrated Operations
Current Integrated Operations Iron Mine District Map of District Map of Chandrapur Gadchiroli Lumps DRI DRI Kilns, Ghugus Mining Surajgarh (Direct Reduced Iron) Mines Konsari Ghugus Hedri Iron ore DRI Kilns, Konsari DRI fines for sale (Direct Reduced Iron) Iron Ore Mining at Hedri, Surjagarh DRI Pla
Slide 17: Accolades of Safety and Sustainability
Accolades of Safety and Sustainability Lloyds Metals and Energy Ltd Iron Ore Mine at Surjagadh Received 5 Star Rating from Indian Bureau of Mines. Surjagadh, India. This prestigious rating is a recognition of LMEL's commitment to safety, environmental protection, and productivity. Comments by Mr. B
Slide 18: Mining Operations
Mining Operations Mined more than 5+ mn tonnes till the second quarter of FY24. Mined 3.8 The current MTPA inisthe bandwidth already firsttoquarter in place mine upofto FY24. 10 MTPA. Current The Board bandwidth in Q1FY24 has alreadyand considered in place to mine approved for upto 10forMTPA applica
Slide 19: Expansion Plans towards Complete Integration
Expansion Plans towards Complete Integration Surajgarh Mines 2023 : Iron ore - 3MMTPA 2023 : DRI Plant - 2,70,000 MTPA 2023:30 MW CPP Powerplant 2024: DRI Plant - 3,50,000 MTPA 2024: 35 MW CPP 2024 : Iron ore – 10 MMTPA 2026: DRI Plant - 6,72,000 MTPA 2026: 100 MW CPP Lumps and Fines from our Mines
Slide 20: Strategic Advantages & Expansion Prospects
Strategic Advantages & Expansion Prospects www.lloyds.in 19
Slide 21: Many Firsts to us, More to Come
Many Firsts to us, More to Come #First …to Start Iron Ore Mine in Gadchiroli …To export Iron Ore from the State of #First Maharashtra #First …To have a manufacturing unit for DRI in Gadhciroli #First …To begin setting up a slurry pipeline in Western India www.lloyds.in 20
Slide 22: Key Strengths - We call it MOAT
Key Strengths- We call it “MOAT” Rich Mine Via Reserves Allocation Debt Free Allocated Mines Debt Free Rich Reserves Making Lloyds’ cost- High-quality iron ore with Standing Strong during competitive against the very low Silica and Alumina volatility making us more mines which are content. 180Mn+ to
Slide 23: An Ecosystem of lower costs and Efficient capital Allocation
An Ecosystem of lower costs and Efficient capital Allocation Iron ore costs remain stable irrespective of volatility In the global Captive Lowest Cost scenario, safeguarding margins. Raw Producer Mine life till 2057 with Normal royalty rates (no premium royalty) to Material keep cost structure c
Slide 24: Value Creation - Focussed on ROIC
Value Creation - Focussed on ROIC Captive Iron Ore aids lower Controlled Cost Of Production. . Lower Costs Lower Logistics cost- Rationalising freight & costs via a slurry pipeline Rationalised Capex Our capital allocation strategy of utilising Efficient capital allocation -Internal accruals & our s
Slide 25: What Sustainability Means to Us
Sustainability – Ipso Facto Sustainable Profits, Governance & Environment A Sustainable Sustainable Governance Environment with Responsible Behaviour • Equitable distribution among all the stakeholders • Limiting Carbon Emissions by • Consistent benchmarking of relying on alternate transport the bes
Slide 26: Unleashing Rapid Execution Excellence
Unleashing Rapid Execution Excellence IRON ORE Swift execution from 3mn to 10mn tonnes(one year) and now going ahead to 12 mn tonnes Value Addition DRI in Konsari in 13 straight months since groundbreaking Establishing Establishing as Valued Production capabilities Establishing Added steel producer
Slide 27: Sustainable Business Practices
Sustainable Business Practices World Nature Conservation Day As part of our CSR initiative, we at LIF celebrated World Nature Conservation Day with 500- 550 students from three schools in Ghugus and Mhatardevi. The event aimed to raise awareness and promote environmental sustainability among the you
Slide 28: Sustainable Business Practices
Sustainable Business Practices Water Tanker Distribution In line with our commitment to empower our community LIF addressed the issue of water scarcity in Ghugus and nearby villages by providing two tankers of drinking water, each carrying 8000 liters. We alleviated the hardships faced by citizens i
Slide 29: Industry Overview
www.lloyds.in Industry Overview 28
Slide 30: India – Expected Steel Capacity Expansion
India – Expected Steel Capacity Expansion 160 126 210 258 376 FY 23 Crude Steel Capacity Crude Steel Production Iron Ore Req. (MTPA) Iron Ore Prod (MTPA) Iron Ore EC (MTPA) (MTPA) (MTPA) FY 30 393 236 393 373 573 Case – I Crude Steel Capacity (MTPA) Crude Steel Production (MTPA) Iron Ore Req. (MTPA)
Slide 31: Financial Overview
www.lloyds.in Financial Overview 30
Slide 32: Consolidated Historical Income Statement
Consolidated Historical Income Statement Particulars (INR Mn) FY22 FY23 H1-FY24 Total Income 7,273 34,667 30,886 Operating Expenses 5,520 25,820 22,346 EBIDTA 1,753 8,847 8,540 EBIDTA Margins (%) 24.10% 25.52% 27.65% Depreciation and amortisation expenses 180 230 178 Finance costs 181 650 15 Profit
Slide 33: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet Particulars (INR Mn) FY23 H1-FY24 Particulars (INR Mn) FY23 H1-FY24 Equity Non-Current Assets (a) Equity Share Capital 505 505 (a) Property, Plant and Equipment 4,746 8,973 (b) Other Equity 14,785 21,305 (b) Capital Work in Progress 2,979 4,327 Non-Current Liabi
Slide 34: Consolidated Historical Financial Highlights
Consolidated Historical Financial Highlights Operational Income (INR Mn) EBITDA (INR Mn) & EBITDA Margins (%) Adj PAT (INR Mn) 10,000 8,847 8,540 33,923 27.65% 30,568 9,855 9,000 8,000 7,000 25.52% 6,000 20.86% 6,345 5,000 4,000 6,975 3,000 109 1,455 1,487 2,534 2,000 1,000 1 - 4.29% FY21 FY22 FY23
Slide 35: Capital Market Information
Capital Market Information 1 YEAR SHARE PRICE MOVEMENT (Upto 30th Sept 2023) 350% 300% 250% 200% 150% 100% 50% 0% -50% Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Lloyds Sensex Price Data (As on 30th Sept 2023) INR Shareholding Pattern (As on 30th Sept, 2023)
Slide 36: Disclaimer
Disclaimer Lloyd’s Metals & Energy Limited (LMEL) Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and
Slide 37: Thank You
www.lloyds.in Thank You 36
Slide 38: Equirus Securities Q2FY24 Conference Call Invitation
Equirus Securities Invites you for a Q2FY24 conference call With the management of Lloyds Metals & Energy Ltd. We are pleased to host, on behalf of Lloyds Metals And Energy Ltd., a conference call for analysts and investors on Wednesday 25th October 2023, at 4:00 pm (IST) following the announcement
Lloyds Metals and Energy — H1 FY2024 Earnings Presentation on 6ix