Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q4 FY2021 Earnings Presentation
34 slides from Sarda Energy & Minerals's earnings presentation, 2021
Slide 1: Result Presentation | Q4/FY21
Result Presentation | Q4/FY21 1
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 Q4/FY21 - Key Highlights 2 SEML – De-risked and Diversified 3 Financial Performance 4 Corporate Social Responsibility 3
Slide 4: Q4 & FY21 | Key Highlights
an Q4 & FY21 | Key Highlights
Slide 5: Challenging Year – Exceptional Performance
Challenging Year – Exceptional Performance Highest Ever EBITDA and PAT ▪ Consolidated EBITDA grew 96% YoY to INR 664 cr in FY21 and up ~9x YoY to INR 226 cr in Q4FY21 ▪ Consolidated PAT grew 193% YoY to INR 376 cr in FY21 and INR 139 cr in Q4FY21 (loss in Q4FY20) Highest Ever Dividend, backed by Enh
Slide 6: Consolidated P&L – Highest Ever Quarterly and Yearly EBITDA
Consolidated P&L – Highest Ever Quarterly and Yearly EBITDA INR in Cr Q4FY21 Q4FY20 YoY Q3FY21 QoQ FY21 FY20 YoY Revenues 699 438 604 2,199 2,000 Other Income 42 -54 38 144 -17 Total Income 741 384 93% 642 15% 2343 1,983 18% Raw Material 422 273 367 1,347 1,293 Employee Expenses 24 18 22 89 88 Other
Slide 7: Standalone P&L - Highest Ever Quarterly and Yearly EBITDA
Standalone P&L - Highest Ever Quarterly and Yearly EBITDA INR in Cr Q4FY21 Q4FY20 YoY Q3FY21 QoQ FY21 FY20 YoY Revenues 551 281 440 1,595 1,424 Other Income 27 -9 28 107 61 Total Income 579 272 113% 467 24% 1,702 1,485 15% Raw Material 338 171 261 974 920 Employee Expenses 18 13 17 68 68 Other Opera
Slide 8: Balance Sheet – Comfortable Liquidity Position; Net D/E Below 1x
Balance Sheet – Comfortable Liquidity Position; Net D/E Below 1x Consolidated Standalone Consolidated Standalone Liabilities (INR Cr) Assets (INR Cr) Mar-20 Mar-21 Mar-20 Mar-21 Mar-20 Mar-21 Mar-20 Mar-21 Shareholder’s Funds 1,870 2,221 1,731 2,011 Non-Current Assets 2,798 3,021 1,404 1,448 Share c
Slide 9: Metals Segment - Firming Product Prices
Metals Segment - Firming Product Prices, Coupled With… Steel Segment: Product wise Incremental Realization Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 1,337 2,496 4,497 2,631 1,878 5,032 2,297 5,477 2,383 2,790 2,578 1,849 2,450 3,867 12,375 3,409 3,092 4,679 3,789 Value 13,194 RS.
Slide 10: Robust Volume Growth Across Products (1/2)
…Robust Volume Growth Across Products (1/2) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 134 85 53 109 Fourth Quarter 66 80 34 32 37 43 8 4 Production Sales Production Sales Production Sales 619 325 175 177 600 291 426 Full Year 313 161 131 30 26 Production Sales Productio
Slide 11: Robust Volume Growth Across Products (2/2)
…Robust Volume Growth Across Products (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 43 8 39 38 35 7 34 Fourth Quarter 6 32 29 23 5 Production Sales Production Sales Production Sales 26 27 135 147 23 22 142 132 118 121 Full Year 124 123 Production Sales Production Sales Product
Slide 12: Power Segment - Highest Ever Hydro Power Generation
Power Segment - Highest Ever Hydro Power Generation; Set to Increase… Thermal Power – Total Capacity 162 MW Hydro Power – Total Operational Capacity 29.7 MW 285 18 18 228 Fourth Quarter 9 9 28 29 GE NE RATION SAL E S GE NE RATION SAL E S 129 129 999 964 115 115 Full Year 142 103 GE NE RATION SAL E S
Slide 13: Likely Commissioning of the Sikkim Hydro Project in June 2021
…With the likely Commissioning of the Sikkim Hydro Project in June 2021 Note: Actual site pictures 13
Slide 14: To Provide A Significant Fillip to EBITDA
…To Provide A Significant Fillip to EBITDA (Highest Ever in FY21)… EBITDA Bridge – FY21 (in INR Crore) • A quantum jump in EBITDA is likely, post the commissioning of the Sikkim Hydropower Project. • Resulting in significant diversification of cash flow profile of the Company. 14
Slide 15: Debt Set To Be Pared Upon Operationalization Of Sikkim Hydro
… Debt Set To Be Pared Upon Operationalization Of Sikkim Hydro Debt Bridge – FY21 (in INR Crore) 952 1715 • Majority of the Total Debt is on account of the Sikkim Hydro project, repayment of which would start with the 98 395 commissioning of the project as per the repayment schedule. 270 STANDALONE
Slide 16: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Vertical Integration and Capacity Expansion Diversification From Commodity to Green Energy Player (Hydro) • Recently won two Coal Mines – to reduce input costs • De-risked by adding annuity-like Revenue Stream (Hydro Power) • Received ‘Consent
Slide 17: SEML | De-Risked and Diversified
SEML | De-Risked and Diversified 17
Slide 18: Metal Business | Vertically Integrated Steel Player
Metal Business | Vertically Integrated Steel Player… Raw Material & Thermal Power (Captively procured key inputs, assures cost and quality control) Raw Material & Thermal Power Iron Ore Mine | Coal Mine | Thermal Power Intermediate / Finished Products (Flexibility to sell products across entire prod
Slide 19: Backed by Captive Resources, Driving Down Costs Significantly
… Backed by Captive Resources, Driving Down Costs Significantly Captive Iron Ore Mine Captive Thermal Plants Recently won two Coal Mines (Total Capacity of 1.5 MMT p.a.) (Total capacity of 162 MW) (Total Capacity of 1.8 MMT p.a.) • Located at Rajnandgaon, Chhattisgarh, which is • Located at both the
Slide 20: Robust Presence Across Steel Products – Siltara Plant
Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh… Pellets Sponge Iron Billets Wire Rods HB Wires Description Semi finished steel product Produced from captive Iron produced by continuous Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Ore Lumps & Pellets.
Slide 21: 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 exported to other countries ▪ Leading exporter of manganese-based Ferro Alloys ▪ Exports Awards: ▪ SMAL received prestigious expor
Slide 22: Hydro Power Business | Operational Assets of ~30 MW
Hydro Power Business | Operational Assets of ~30 MW… 4.8 MW 24.9 MW Location Uttarakhand Chhattisgarh Name of the River Sarju Gullu Year of Commissioning 2008 2017 Tariff INR 3.85 per unit INR 5.21 per unit Term of PPA 35-year PPA with State Discom 35-year PPA with State Discom PLF - FY21 57% 50% De
Slide 23: With an Additional ~138 MW in the Works
… With an Additional ~138 MW in the Works 113 MW 24.9 MW Location Sikkim Chhattisgarh Name of the River Rongnichu Rehar Likely Year of Commissioning 2021 2025 Tariff Under determination - Term of PPA 35-year PPA with Chhattisgarh State Discom - Debt (Current) INR 952 Cr Financial closure under progr
Slide 24: Well-Experienced and Strong Leadership at the Helm
Well-Experienced and Strong Leadership at the Helm Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • Mechanical Engineer with 17 years experience in Iron and Steel Industry experience in Iron and Steel Industry • Responsible for the groups vision and • Responsible f
Slide 25: Financial Performance
Financial Performance 25
Slide 26: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position 2,221 2,199 2,132 1,870 1,768 1,807 1,702 1,743 1,537 1,576 • Improving TOL/ NW ratio along 1,358 with strong liquidity position 1,223 1.45 • With additional cashflows post 1.26 1.14 commissioning of Sikkim Hydro 1.12 1.04 0.99 project, the liquidi
Slide 27: Consolidated P&L – Consistent Growth and High Profit Margins
Consolidated P&L – Consistent Growth and High Profit Margins INR in Cr FY17 FY18 FY19 FY20 FY21 Revenues 1,434 2,217 2,324 2,000 2,199 Other Income 67 70 17 -17 144 Total Income 1,502 2,287 2,341 1,983 2343 Raw Material 942 1,478 1,493 1,293 1,347 Employee Expenses 75 77 87 88 89 Other Operating Exp
Slide 28: Consolidated BS – Conservative Capital Structure and Strong Liquidity
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr FY17 FY18 FY19 FY20 FY21 Share Capital 36 36 36 36 36 Tangible Networth 1,322 1,540 1,707 1,834 2,185 Minority Interest 83 88 132 100 101 Long Term Borrowings 936 998 1,078 1,436 1,500 Short Term Borrowings 348 3
Slide 29: Corporate Social Responsibility
Corporate Social Responsibility 29
Slide 30: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility (including minor) 43 21 23 15 3 3 CY14 CY16 CY17 CY18 CY19 CY20 30
Slide 31: COVID-19 Initiatives
COVID-19 Initiatives Donated Food Grains to Villagers COVID testing camps for Villagers Provided Medical Kit & Apparatus help to COVID-19 Hospitals Vaccine Drive for Employees 31
Slide 32: Responsible Corporate Citizen (1/2)
Responsible Corporate Citizen (1/2) Education: Enabling quality education in community Salary support to Teachers at Siltara & Mines area village schools; Reward to Meritorious students of 10th & 12th; Support to Educational Trust development; Support to Ekal Vidyalayas for education development of
Slide 33: Responsible Corporate Citizen (2/2)
Responsible Corporate Citizen (2/2) Education Health Infrastructure Livelihood Cultural 33
Slide 34: 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 www.seml.co.in 34
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