Shera Energy Limited · NSE:SHERA
Shera Energy — Investor Presentation (August 2023)
39 slides from Shera Energy's investor presentation, August 2023
Slide 1: Shera Energy Limited Investor Presentation
Shera Energy Limited Investor Presentation August - 2023 W HERE P O W ER Empowers THE I N N O V A T I O N
Slide 2: Disclaimer
Disclaimer This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute prospectus or placement memorandum or an offer to acquire any securities. No representation or warranty, express or implied is made as to, and no relia
Slide 3: Table of Contents
TABLE OF CONTENTS 1 About Us 2 Business Overview Quarterly Financial 3 4 Way Forward Highlights Annual Financial 5 Industry Overview 6 Highlights 3
Slide 4: About Us
1 About Us 4
Slide 5: About Shera Energy Limited
A b o u t Sher a Energy Limit ed Shera Energy Ltd, incorporated in 2009, is in the business of manufacturing winding wires and strips made of non-ferrous metals primarily Copper and Aluminium. Product range of company includes paper covered wires, enamel and fibre covered wires, round wires, rectang
Slide 6: Key Facts & Figures
K e y Facts & Figures 19+ years Consolidated 2 Manufacturing Manufacturing of Ins talled Capacity Plants of Com pany facilities S pread 350+ & Excellence 34,730 MT 2 Manufacturing Across 8,00,000 Employees Plants of Subsidiaries Sq. Ft. Export in 15+ Certifications FY23 FY23 3 Years CAGR IS O 9001:2
Slide 7: Our Journey
Our Journey 2022 - 2023 Incorporated under the 2015 2003 Com panies Act, 1956 as a Pvt. Ltd. company Vendor Approval purs uant to a takeover Validation from Power of the all the business Grid Corporation of India, The company was activities and m ovable a GoI Enterprise, for converted to public as s
Slide 8: Board of Directors
B o a r d O f Directors SHEIKH NASEEM SHIVANI SHEIKH (Chairman & Managing Director) (Wholetime Director) EDUCATION: EDUCATION: Bachelor’s of Engineering (Hons.), Electrical Bachelor’s of Engineering, Electrical o Sheikh Naseem having experience of 23 years in various o Shivani Sheikh having experien
Slide 9: Board of Directors
B o a r d O f Directors Mr. Piyush Sharma M r. Vineet Gupta Mr. Arpit Kumar Dotasra Non-Executive Director Independent Director Independent Director EDUCATION EDUCATION EDUCATION Management in Business Mechanical Engineering Administration Graduate Gold M edalist in B.A. L.L.B. o He has been as s oc
Slide 10: Board of Directors
B o a r d O f Directors Mr. Vekas Kumar Garg Mr. Kuldeep Kumar Gupta Independent Director Independent Director EDUCATION EDUCATION MCOM and Com pany Secretary BCOM, Chartered Accountant, DISA, ICWAI o He is a practicing Com pany Secretary and a register o He has the certificate of Professional Membe
Slide 11: Business Overview
2 Business Overview 11
Slide 12: Products Portfolio
Products Portfolio ALL TYPES OF COPPER RODS, WIRES & A WINDING WIRES / STRIPS C TUBES OF BRASS All TYPES OF ALUMNIUM RODS, WIRES & B WINDING WIRES AND STRIPS TUBES OF COPPER D Investors Presentation 12
Slide 13: Products Portfolio
Products Portfolio (A) ALL TYPES OF COPPER (B) All TYPES OF ALUMNIUM WINDING WIRES AND S TRIPS WINDING WIRES / S TRIPS 1 2 1 2 3 4 Paper Covered Round & Enamel and Fiber Paper Covered Enamel Covered Fiber Covered Rectangular Wires, Covered Round & Round & Round & Round & Wires Bunched Wires Rectangu
Slide 14: Products Portfolio
Products Portfolio (D) RODS, WIRES & TUBES OF (C) RODS , WIRES & TUBES OF BRAS S COPPER 1 2 3 Rods & Profiles of Brass Brass wire Brass Tubes Investors Presentation 14
Slide 15: Subsidiaries Details
Subsidiaries Details RAJPUTANA INDUSTRIES LIMITED SHERA M ETAL PRIVATE LIM ITED SHERA INFRAPOWER PRIVATE LIM ITED o Rajputana Indu stries Ltd. is in o Sh era Metal Private Limited in o Sh era Infrapower Private Limited the business of recycling. m anufacturing of bus bar, round, having Indu strial L
Slide 16: State Of The Art Manufacturing Facilities
State O f The A r t M a n u f a c t u r i n g Facilities RAJPUTANA INDUSTRIES LTD S HERA METAL PRIVATE LTD S HERA ENERGY LTD Investors Presentation 16
Slide 17: Capacity & Utilization - Consolidated
C a p a c i t y & Utilization - Consolidated FY20 FY21 FY22 INSTALLED ACTUAL ACTUAL ACTUAL PRODUCT UNIT UTIL (%) UTIL (%) UTIL (%) CAPACITY PRODN PRODN PRODN Aluminium Winding Wire Strips , Ingots , Rods, Bus bar, and Tubes MTPA 11,400 7,900 69.3 6,556 57.5 6,659 58.4 Copper Winding Wire, Strips , I
Slide 18: Product wise Revenue & Actual Production
Product wise Revenue & Actual Production PRODUCT FY20 FY21 FY22 FY23 14,000 5,000 4,533 Revenue (Rs. Mn) 746 639 821 1,377 4,500 12,000 Aluminium Products 3,659 4,000 Actual Production 3,259 7,900 6,556 6,659 8,056 10,000 3,093 (MTPA) 3,500 Actual Production 3,000 Revenue 8,000 MTPA Rs. Mn. Revenue
Slide 19: Competitive Strength
C o m p e t i t i v e Strength Backward integration Strong product to ensure s m ooth portfolio s upply of raw material Strong experience of Established clientele; m anagem ent over a top 10 customers decade contribute 43.17% of sales Investors Presentation 19
Slide 20: Business Strategies
Business Strategies Expanding our Invest in infras tructure custom er bas e and technology Focus on quality Focus on increasing Enhancing existing Focus on backward operational efficiencies products base and and forward to improve returns product quality integration Investors Presentation 20
Slide 21: Highly Focus On Sustainable Environment
H ig h ly Focus O n Sustainable Environment Shera Energy - Shera Energy understands its responsibility towards sustainable energy and ensured maximum consideration of the environment by implementing various assets to conserve resources. Steps taken by the company 1. Non Ferrous M etals recycling o R
Slide 22: Quarterly Financial Highlights
3 Quarterly Financial Highlights 22
Slide 23: Financial Highlights – Q1FY24 (Consolidated)
Financial High l i g ht s – Q1FY24 ( Conso li d at e d) 32.5% 57.1% 14.5% 81.2% EBITDA EPS Rs. 106.4 Mn Rs. 1.43 Revenue Net Profit Rs. 2,012.2 Mn Rs. 32.3 Mn Investors Presentation 23
Slide 24: Financial Summary – Q1FY24 (Consolidated)
Financial Summary – Q1FY24 ( Conso li dat e d) Particulars (INR Mn) Q1FY24 Q4FY23 Q1FY23 YoY% FY23 FY22 YoY% Revenue from Operations 2,012.2 2,070.0 1,758.1 14.5 6,963.9 5,238.2 32.9 Materials Consumed 1,802.9 1,827.6 1,611.6 11.9 6264.1 4665.9 34.3 Employee Expenses 25.5 28.6 18.5 38.1 91.9 68.0 35
Slide 25: Quarterly Production – Consolidated
Q u a r t e r l y P r o d u c t i o n – Consolidated Q1FY24 Q4FY23 Q1FY23 INSTALLED ACTUAL ACTUAL ACTUAL PRODUCT UNIT CAPACITY UTIL (%) UTIL (%) UTIL (%) PRODN PRODN PRODN (Avg Quarterly) Aluminium Winding Wire Strips , Ingots , Rods, Bus bar, and Tubes MTPQ 2,850 2,223 78.0% 2,189 76.8% 1,445 50.7%
Slide 26: Way Forward
4 Way Forward 26
Slide 27: Way Forward
Way Forward Increase Share of Value Added Products Revenue Share of value added products to increase from 25% to 50% led by increase in demand for Sourcing Expansion ❑ Copper Alloys ❑ Aluminium Alloys ❑ Source scrap from other markets outside of India such as Africa. ❑ To have own scrapyard for stor
Slide 28: Industry Overview
5 Industry Overview 28
Slide 29: Industry Overview
Industry O v e r v i e w The sector is highly unorganized with many small scale industries with fragmented capacity. Winding wires are extensively used in the electrical and electronic equipment’s comprising of Motors, Transformers, Pumpset Switchgears, Fans, Hand Tools, Domestic Appliances, etc. Gl
Slide 30: Industry Overview
Industry O v e r v i e w KEY WINDING WIRE MARKET DRIVERS The expans ion of The generation of The electric Winding wires are power generation electricity is generators u sed in used in inverters and T& D network. increas ing at a rapid hydroelectric, that are placed in pace in countries therm al, and
Slide 31: Annual Financial Highlights
6 Annual Financial Highlights 31
Slide 32: Annual Income Statement (Consolidated)
Annual Income Statement ( Conso l i d at e d) Particulars (INR Mn) FY20 FY21 FY22 FY23 Revenue from Operations 4253.3 4219.7 5,238.2 6,963.9 Materials Consumed 3720.1 3700.2 4665.9 6264.1 Employee Expenses 80.4 56.7 68.0 91.9 Other Expenses 160.6 136.5 168.3 221.6 Total Expenditure 3961.0 3893.4 4,9
Slide 33: Annual Balance Sheet (Consolidated)
Annual Balance Sheet ( Conso li dat e d) Amount in INR Mn Equities & Liabilities FY20 FY21 FY22 FY23 Assets FY20 FY21 FY22 FY23 Equity 199.4 199.4 199.4 227.9 Non Current Assets Reserves 366.7 411.3 468.3 663.5 Property plant & Equipment 852.9 817.3 807.5 822.2 Net Worth 566.1 610.7 667.7 891.4 Righ
Slide 34: Annual Financial Highlights
A n n u a l Financial High l i g ht s Revenue from Operations (INR Mn) Profitability (INR Mn) EBITDA PAT 6,963.9 386.3 5,238.2 326.4 336.1 292.2 4,253.3 4,219.7 91.1 50.3 69.9 36.1 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Margins Operating Cash Flow (INR Mn) 12.5 12.3 10.9 297.0 10.0 7.7 Gross Margin
Slide 35: Revenue Breakup Domestic And Export
Revenue Breakup Domestic A n d Export Revenue Breakup - Domestic and Exports % of Total Sales (FY23) Top 5 and Top 10 Customers 94.9% 91.1% 90.7% 89.3% 39.09% 24.64% 8.9% 5.1% 9.3% 10.7% FY20 FY21 FY22 FY23 Top 5 Customers Top 10 Customers Domestic Exports % of Total Sales Investors Presentation 35
Slide 36: Key Financial Ratios (1/2)
K e y Financial Ratios (1/2) ROE (%) ROCE (%) 23.72 23.37 9.90 10.23 8.23 22.79 6.38 22.42 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Debt to Equity Ratio (x) Interest coverage ratio (x) 1.48 1.56 1.95 1.33 1.73 1.77 1.27 1.26 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Investors Presentation 36
Slide 37: Key Financial Ratios (2/2)
K e y Financial Ratios (2/2) Earnings Per Share (INR) Book Value Per Share (INR) 4.46 3.32 2.50 39.12 30.63 33.49 1.81 28.39 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Current Ratio (x) Asset Turnover (x) 1.32 1.86 1.53 1.61 1.20 1.44 1.18 1.13 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Investors Presenta
Slide 38: Healthy Working Capital Cycle
H e a l t h y W o r k i n g C a p i t a l Cycle (In Days) 98.00 93.56 89.79 86.83 83.00 76.74 73.82 51.74 58.82 45.00 55.51 53.62 43.53 40.20 33.00 28.20 FY20 FY21 FY22 FY23 Debtor Days 40.20 73.82 51.74 43.53 Inventory Days 33.00 83.00 93.56 86.83 Bills Payable 45.00 98.00 89.79 76.74 Net Working C
Slide 39: Thank You
Thank You S HERA ENERGY LIMITED F-269-B, Road No. 13, VKIA, KAPTIFY® Consulting Jaipur Rajas than 302013 India Strategy & Investor Relations | Consulting Phone: +91 9314434130 Tel: +91-845 288 6099 | Email: contact@kaptify.in Website: www.sheraenergy.com Email: cs@sheraenergy.com www.kaptify.in