Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q2 FY25 Earnings Presentation
47 slides from Shyam Metalics & Energy's earnings presentation, Nov 7, 2024
Slide 1: Exchange filing cover letter
SMEL/SE/2024-25/81 November 07, 2024 The Secretary, The Manager – Listing Department Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, 5th Floor, Plot No. C/1, G-Block, Dalal Street, Mumbai 400 001 Bandra-Kurla Complex, Bandra (East
Slide 2: Investor Presentation | November 2024
Investor Presentation | November 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shyam Metalics And Energy Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Company Overview
SIHYAM _ METALICS Company Overview
Slide 5: Shyam Metalics at a Glance
Shyam Metalics at a Glance 6th Largest Integrated Steel 4th Largest Sponge Iron Player, Producer & amongst the largest Leading player in terms of Pellet Ferro Alloys producer in India Capacity Achieving End-To-End Solutions Integrated Metal Producing Company Operates “Ore to Metal” integrated steel
Slide 6: Eminent Promoters & Management
Eminent Promoters & Management Brij Bhushan Agarwal Sanjay Kumar Agarwal Deepak Agarwal Sheetij Agarwal Mahabir Prasad Agarwal Vice Chairman & Managing Head - Strategy & Business Joint Managing Director Director Finance & CFO Chairman Director Development o Holds a bachelor’s degree in o He is an As
Slide 7: Value Propositions
Value Propositions 1 Backward Integration & Forward Integration with presence across the Value Chain 2 Diversified Product Mix: Scaling up stainless steel, aluminum foil and EV Battery Foil 3 Strong Brand & Distribution Network 4 Private Railway Sidings Advantage for Seamless Logistics 5 Captive Pow
Slide 8: Key Updates for Q2 FY25
Key Updates for Q2 FY25 Capex & Operational Update • Capex incurred till H1 FY25: Rs. 5,464 crores which accounts for 55% of the total CAPEX Envisaged i.e. Rs. 10,025 crores out of which Rs. 2,654 crores have been capitalized. • Procured 17 rakes under Own your wagon scheme from Indian Railways Fina
Slide 9: Driving Integration of Multi-Product Metals Portfolio
Driving Integration of Multi-Product Metals Portfolio Prospective License for Iron Ore Mine: Multiple Sale Points across Maharashtra Backward the Value Chain Integration Railway siding Greater Control on Operating Margins 377 MW CPP Flexibility to alter Product Renewables – Captive Solar Mix Energy
Slide 10: Expansion with strong focus on value added products
Expansion with strong focus on value added products Integration has enabled greater control on the operating margins Post Capacity (MTPA) FY21 FY22 FY23 FY24 Q2 FY25 Post Expansion Capacity (MTPA) Q2 FY25 Expansion Iron Pellet 2.40 3.60 4.80 6.00 6.00 6.00 Beneficiation - 3.0 Sponge Iron 1.39 2.11 2
Slide 11: Capacity Expansion through Inorganic Route – Ramsarup Industries
Capacity Expansion through Inorganic Route – Ramsarup Industries Engaged in manufacturing wires, TMT Bars and steel, acquired for Rs 380 cr out of which we paid Rs 228 cr for 60% stake Shyam Super Metalics & 60% Ramsarup 40% Smelters Ltd Energy Ltd Industries First Capex Infusion in Ramsarup Industr
Slide 12: Forays into Stainless Steel through Acquisition of Mittal Corp
Forays into Stainless Steel (SS) through Acquisition of Mittal Corp Mittal Corp Industries Overview Leading Player in Stainless Paid acquisition cost of 2 Manufacturing units at Manufacturing plant is 0.15 MTPA Installed 20 Tonne Induction Furnace Steel Flats (200 series and Rs. 351 cr. Pithampur, M
Slide 13: Aluminium Foil Plant
Aluminium Foil Plant Aluminium Plant – Pakuria - West Bengal, Giridih - Jharkhand & upcoming plant in Odisha Backward One of the largest Rolling range: 40 integration to aluminium foil Plant installed by Kickstarted and More than 60% of to 5 micron with Majorly increase margins manufacturer in Achen
Slide 14: Business Update: Greenfield Expansion - Cold Rolling Mill
Business Update: Greenfield Expansion - Cold Rolling Mill Greenfield project for a cold rolling mill spread over 55 acres of land at Jamuria, West Bengal Project approved under the PLI Products will include GI/GL coils and scheme PPGL (Pre-Painted Galvalume Coils) The business has been setup under t
Slide 15: Current Projects Overview
SIHYAM _ METALICS Current Projects Overview
Slide 16: Projects Pending Installation and Cost Incurred – Carbon Steel
Projects Pending Installation and Status of Cost Incurred of Carbon Steel Capacities to be Budgeted Capex Capex incurred till Pending Capex Particulars Commissioned (Rs Cr) 30th September (Rs Cr) (Rs Cr) (Million MTPA) Benefication Plant 3.0 300 17 283 Sponge Iron 1.05 400 196 204 Blast Furnace 1.05
Slide 17: Projects Pending Installation and Cost Incurred – Others
Projects Pending Installation and Status of Cost Incurred for Others Capacities to be Budgeted Capex Capex incurred till Pending Capex Particulars Commissioned (Rs Cr) 30sth September (Rs Cr) (Rs Cr) (Million MTPA) Stainless Steel: Billet Stainless Steel 0.13 130 59 71 Billet Slabs for Flat products
Slide 18: Synopsis of CAPEX & growth - Carbon Steel
Synopsis of CAPEX & growth - Carbon Steel Capacity Present Sales Expected Sales Existing Capacity Particulars Products Post- Expansion Increase by in Volume in Volume Growth (in MMTPA) (in MMTPA) (MMTPA) (MMTPA) Carbon Steel: Intermediate Pellet 6.00 6.00 1.03 1.20 Products a. Sponge Iron 3.05 4.10
Slide 19: Synopsis of CAPEX & growth - Stainless Steel & Aluminium
Synopsis of CAPEX & growth - Stainless Steel & Aluminium Capacity Present Sales Expected Sales Existing Capacity Particulars Products Post- Expansion Increase by in Volume in Volume Growth (in MMTPA) (in MMTPA) (MMTPA) (MMTPA) Stainless Steel: Intermediate Stainless Steel Billets 0.12 0.75 525% 0.05
Slide 20: Current Capacities Across Carbon Steel Life Cycle
Current Capacities Across Carbon Steel Life Cycle Finished Steel 2.32 MTPA Wire Rod & Wire Color Coated TMT Draw Mill (WRM) Sheets 0.92 MTPA 0.92 MTPA 0.25 MTPA DRI 3.05 MTPA SMS 2.01 MTPA Iron Making Liquid Steel Structurals Pipe Mill (Direct Reduced Iron) (Steel Melting Shop) 0.20 MTPA 0.03 MTPA 1
Slide 21: Higher Contribution of Finished Steel Products
Higher Contribution of Finished Steel Products Revenue Mix 84% 83% 85% 79% 73% 47% 48% 48% 45% 44% 37% 38% 37% Enriching product portfolio to make a basket of fully 31% 29% integrated downstream products 16% 17% 15% 13% 14% 8% 4% 4% 5% FY21 FY22 FY23 FY24 H1 FY25 Intermediates Long Products Speciali
Slide 22: Export Opportunities
Export Opportunities We are preferred suppliers to large corporations like 21 11% 01 02 03 Countries JM Global Metal Bhutan Concast Resources Exchange Exports to countries like USA, Export Contribution to Revenue Japan, Korea, Italy, Nepal, in H1 FY25 Bangladesh 04 05 06 Steel products both upstream
Slide 23: Q2 & H1 FY25 Financial Performance
Q2 & H1 FY25 Financial Performance
Slide 24: Performance Highlights
Performance Highlights Q2 FY25 Rs. 3,634 Cr Rs. 407 Cr Rs. 481 Cr Rs. 216 Cr Revenue Operating EBITDA EBITDA PAT YoY 23.6% YoY 32.4% YoY 39.4% YoY -55.3% * H1 FY25 Rs. 7,246 Cr Rs. 894 Cr Rs. 1,020 Cr Rs. 492 Cr Revenue Operating EBITDA EBITDA PAT YoY 15.5% YoY 24.0% YoY 29.3% YoY -28.1% * *Q2 & H1
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-O-Y Revenue from Operations 3,634.0 2,940.7 23.6% 3,611.6 0.6% 7,245.6 6,237.7 15.5% Cost of Material Consumed 2,590.1 2,159.7 2,778.1 5,369.1 4,592.8 Purchases of stock in trade 0.0 0.7
Slide 26: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (Rs. Crs.) Sept-24 Mar-24 Particulars (Rs. Crs.) Sept-24 Mar-24 Assets Equity and Liabilities Non-Current Assets Equity share capital 278.0 278.0 Property, plant and equipment 3,939.2 3,826.3 Other equity 9,919.4 9,368.6 Total Equity 10,197.5 9,646.7
Slide 27: Q2 FY25 Performance Highlights
Q2 FY25 Performance Highlights Rs. 3,634 crores Rs. 407 crores Rs. 481 crores Rs. 216 crores Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) Y-o-Y +95% +11% Q-o-Q Steel Products 7.9% 0.26 14.4% 0.23 Y-o-Y Q-o-Q 4.9% 1
Slide 28: H1 FY25 Performance Highlights
H1 FY25 Performance Highlights Rs. 7,246 crores Rs. 894 crores Rs. 1,020 crores Rs. 492 crores Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) +189% Y-o-Y Steel Products 7.5% 13.5% 0.49 1.4% Y-o-Y 4.5% 0.10 Aluminium
Slide 29: Per Tonne Realizations
Per Tonne Realizations Speciality Alloys Carbon Steel* Stainless Steel Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q +7% 3% +4% -8% -9% -3% +31% +2% +26% 93,674 97,252 99,851 95,199 98,627 46,918 47,348 46,662 45,206 1,34,266 1,37,523 1,35,979 43,205 1,04,606 1,08,149 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Q
Slide 30: Strong Debt Profile
Strong Debt Profile Gross Debt* (Rs. Cr) Net Debt^ (Rs. Cr) 1,050 1,065 960 951 785 246 534 577 -477 -562 -1,099 -1,514 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Gross Debt / Equity Net Debt / EBITDA 0.37 1.51 0.21 0.18 0.30 0.13 0.09 0.10 0.06 -0.18 -0.61 M
Slide 31: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth Conservatively Leveraged + Internal Operating Efficiency led to minimal Disciplined Capital Allocation strategy Working capital requirements = Better Return Metrics Working Capital (days) Return ratios (%) 12 16 57% 34% 94 96 ROCE* 13% 20% 15% 17% 91 83 M
Slide 32: Disciplined Capital Allocation
Disciplined Capital Allocation CashFlow from Operations (Rs. Cr) CAPEX (Rs. Cr) 1,794 1,543 1,578 1,689 1,518 1,277 1,056 824 657 251 FY21 FY22 FY23 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY25 Cash & Cash Equivalents (Rs. Cr) CAPEX as % of Cashflow from Operations 125% 2,092 2,165 102% 1,541 88% 76% 1,
Slide 33: Consistent EBITDA Track Record
Consistent EBITDA Track Record EBITDA* (Rs. Cr) Other income as % of EBITDA 629 539 493 481 450 438 447 345 265 260 16% 14% 11% 10% 9% 9% 8% 8% 3% 5% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1 FY25 Q2 FY25 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1 FY25
Slide 34: Enhancing Shareholder’s Value
Enhancing Shareholder’s Value Dividend Payout (%) 14% 12% 11% 5% FY21 FY22 FY23 FY24 Particulars (in Rs Cr) FY21 FY22 FY23 FY24 Net Profit 844 1,724 843 1,029 Dividend 43 184 114 122 The Company has paid post IPO dividend amounting to Rs. 420 cr being 11.6% of the aggregate PAT of Rs. 3,596 cr 33
Slide 35: Long Term Rating at CRISIL AA/ Outlook: Positive
Long Term Rating at CRISIL AA/ Outlook: Positive Current Rating CRISIL AA Outlook Positive Latest Review Nov-24 CRISIL AA CRISIL AA CRISIL AA CRISIL AA (Stable) (Stable) (Stable) (Positive) CRISIL AA- CRISIL AA- (Stable) (Positive) FY20 FY21 FY22 FY23 FY24 Nov-24 34
Slide 36: Annexure
SIAYAM METALICS Annexure
Slide 37: Strategically Located - Supported by Infrastructure (Carbon Steel)
Strategically Located - Supported by Infrastructure (Carbon Steel) Raw Material Sources are within 250 kms Jamuria Plant Sambalpur Plant Close Proximity Strong Logistics Lower Logistics Dhamra to Raw Material + Infrastructure = Cost Paradeep Vishakhapatnam Proximity to ports enables Company to expor
Slide 38: Brownfield expansion with… (Carbon Steel)
Brownfield expansion with… (Carbon Steel) Railway Siding Captive Power Plants Captive Water Reservoir Jamuria Plant Sambalpur Plant • We have 1 manufacturing plant located in Sambalpur, Odisha and 1 manufacturing plant in Jamuria, West Bengal with aggregate installed capacity of 14.36 MTPA comprisin
Slide 39: Integrated operations across the steel value chain
Integrated operations across the steel value chain Raw Materials Processing End-Products Electricity Coal Coal Washery Washery Rejects (Captive) Char/Flu Gases TMT Bars Rotary Kilns Power Plant Rolling Mills Wire Rod Washing & Pellets Sponge Steel melting Shop Billets Iron Ore Fines Pelettization Pl
Slide 40: Detailed Plant Wise Capacities - Existing: Carbon Steel
Detailed Plant Wise Capacities* - Existing: Carbon Steel Product –Wise Sambalpur Jamuria Mangalpur Kharagpur TOTAL Capacity (MTPA) Odisha West Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Speciality Alloys 0.11 0.07 0.04 0.22 DRI 1.32 1.52 0.06 0.15 3.05 (Direct Reduced Iron) Billets 0.8
Slide 41: Detailed Plant Wise Capacities - Post Expansion: Carbon Steel
Detailed Plant Wise Capacities - Post Expansion: Carbon Steel Product –Wise Capacity Sambalpur Jamuria Mangalpur Kharagpur TOTAL (MTPA) Odisha West Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Speciality Alloys 0.11 0.07 0.06 0.24 DRI (Direct Reduced Iron) 1.95 1.95 0.06 0.15 4.1 Pig Iro
Slide 42: Detailed Plant Wise Capacities – Existing & Post Expansion: Stainless Steel
Detailed Plant Wise Capacities – Existing & Post Expansion: Stainless Steel Product –Wise Sambalpur Pitampura TOTAL Capacity (MTPA) Odisha Madhya Pradesh (MTPA) Stainless CR 0.2 0.2 Stainless HR 0.5 0.5 Stainless 0.15 0.07 0.22 Billets 0.13 0.12 0.25 Slabs 0.5 0.5 0.5 SS Bright Bars 0.018 0.018 SS W
Slide 43: Our Strategy Going Forward
Our Strategy Going Forward Shift Towards Value Build market leading Geographical Continuously work on Reducing Carbon Added Products position in all 4 areas Expansions in newer improving cost Footprint and focus on portfolio by identifying of the metal space : states with focus on efficiency through
Slide 44: Energy Cost through Captive Power: ~ 82%
Energy Cost through Captive Power: ~ 82% o Power consumed by the plants are primarily produced in-house by the Sambhalpur Jamuria Mangalpur Kharagpur captive power plants o Captive power plants utilise non fossil fuels such as waste, rejects, heat and 5 Turbines 4 Turbines 1 Turbine 1 Turbine gas ge
Slide 45: Strengthening Brand ‘SEL Tiger’
Strengthening Brand ‘SEL Tiger’ TMT TMT are used for the construction of buildings, transmission towers, industrial sheds, structures, road, dam and in other various infrastructures SMEL sells the best quality TMT primarily in the states of West Bengal, Odisha, Bihar, Jharkhand, Tripura, Sikkim, Ass
Slide 46: CSR Initiatives
CSR Initiatives SUSTAINABILITY RURAL HEALTH • Water Conservation- Check dam, • Yearly Eye & Medical Camp for Villagers, FREE Pond , landscaping, Plantation, Medicine & Spectacles • Promotion of solar Light • Free Ambulance & Drinking water Services for villagers • Solar irrigation Pumps • New Health
Slide 47: Thank You
Thank You Shyam Metalics & Energy Limited Investor Relations Partners - Orient Capital Shyam Metalics & Energy Ltd. CIN No. : L40101WB2002PLC095491 Mr. Pankaj Harlalka Ms. Payal Dave +91 9819916314 Trinity Tower, 7th Floor, 83, Topsia Road +91 9830028142 payal.dave@linkintime.co.in Kolkata – 700046,
Shyam Metalics and Energy — Q2 FY25 Earnings Presentation on 6ix