Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q3 FY2025 Earnings Presentation
40 slides from Sarda Energy & Minerals's earnings presentation, Feb 10, 2025
Slide 1: Cover letter to stock exchanges on Q3 FY25 investor presentation
An ISO 9001, ISO 14001 & ISO 45001 Certified Company SARDA ENERGY & MINERALS LTD. 10th February 2025 BSE Ltd National Stock Exchange of India Ltd. The Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E), Mumbai – 400051 Dalal Street – Mumbai 400
Slide 2: Expanding Horizons of Growth
Expanding Horizons of Growth Minerals | Energy | Metals Investor Presentation | Q3FY25
Slide 3: 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 4: Table of Content
Table of Content Q3 & 9MFY25 - Key Highlights Sustainable Growth Strategy SEML – Beyond Steel Corporate Social Responsibility Historical Financials 3
Slide 5: Q3 & 9MFY25 Highlights
SARDA SARDA ENERGY & MINERALS LTD.
Slide 6: Consolidated - Performance Highlights
Consolidated - Performance Highlights On August 21, 2024, the Company completed acquisition of SKS Power Generation (Chhattisgarh) Limited (SKS) under Corporate Insolvency and Resolution Process of the Insolvency and Bankruptcy Code, 2016 and merged it into SEML with effect from 01-Sep-24. SKS has a
Slide 7: Production Trend
Production Trend Production (‘000 MT) Q3FY25 Q3FY24 YoY Change Q2FY25 QoQ Change 9MFY25 9MFY24 YoY Change Iron Ore Pellet 206 224 -8% 214 -4% 631 615 3% Sponge Iron 87 76 15% 82 7% 250 238 5% Steel Billet 61 61 0% 58 6% 165 175 -6% Wire Rod 53 53 0% 49 7% 141 146 -3% H. B Wires 8 10 -13% 9 -3% 26 30
Slide 8: Sales Trend
Sales Trend Sales (‘000 MT) Q3FY25 Q3FY24 YoY Change Q2FY25 QoQ Change 9MFY25 9MFY24 YoY Change Iron Ore Pellet 126 131 -3% 132 -4% 387 389 -1% Sponge Iron 26 18 48% 25 6% 86 73 17% Steel Billet 7 8 -9% 7 -5% 19 25 -24% Wire Rod 44 42 4% 40 10% 115 114 0% H. B Wires 9 11 -18% 8 15% 26 29 -11% Ferro
Slide 9: Price Trend
Price Trend Steel Products’ Price Trend 2,786 2,707 3,994 3,806 2,162 2,849 2,530 3,595 4,071 3,414 14,999 15,125 13,370 13,822 14,424 Value Addition 16,748 16,716 18,028 16,053 15,522 9,470 9,460 9,634 9,151 9,142 Realization Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Iron Ore Pellet Sponge Iron Steel Bill
Slide 10: Consolidated P&L Highlights
Consolidated P&L Highlights Particulars (Rs Cr) Q3FY25 Q3FY24 YoY Q2FY25 QoQ 9MFY25 9MFY24 YoY Revenue from Operations 1319 925 43% 1,159 14% 3,404 2,979 14% Other Income 0 37 56 126 144 Total Income 1,319 963 37% 1,214 9% 3,530 3,123 13% Raw Material 727 567 619 1,841 1,836 Employee Expenses 47 39
Slide 11: Standalone P&L Highlights
Standalone P&L Highlights Particulars (Rs Cr) Q3FY25 Q3FY24 YoY Q2FY25 QoQ 9MFY25 9MFY24 YoY Revenue from Operations 1047 657 59% 763 37% 2,471 2,063 20% Other Income 7 37 35 104 155 Total Income 1,053 695 52% 797 32% 2,575 2,218 16% Raw Material 581 414 434 1,378 1,367 Employee Expenses 36 29 31 95
Slide 12: Sustainable Growth Strategy
Sustainable Growth Strategy
Slide 13: Building Blocks - for Sustainable Growth
Building Blocks - for Sustainable Growth ₹ Vertical Integration Diversification Financial Prowess Strong Focus on ESG For business sustainability To Reduce Input Costs and Marks a Promising Outlook Building a Legacy of and to capitalize on Ensure Consistent Supply For Growth Responsibility emerging
Slide 14: Vertical Integration and Diversification Expanding Horizons of Growth
Vertical Integration and Diversification Expanding Horizons of Growth Backward Integration Minerals Energy Metals • Iron Ore Mine • Captive Use • Steel Products (Long) • Coal Mines Waste Heat + Solar* + Thermal • Ferro Alloys • Commercial Use Thermal + Hydro Forward Integration Acquired SKS Power wh
Slide 15: Minerals (Iron Ore) - Captive Use in Steel Manufacturing
1. Minerals (Iron Ore) - Captive Use in Steel Manufacturing; Continuing Expansion Operational Capacity Upcoming Capacity 1 Block 1 Block The horizon of growth… Rajnandgaon, Chhattisgarh Unexplored block at Surjagad-1, Maharashtra We achieved a significant milestone in our Meets ~35% of the captive r
Slide 16: Minerals (Coal) - Captive Use in Thermal Power Plants
1. Minerals (Coal) - Captive Use in Thermal Power Plants; Continuing Expansion Operational Capacity Upcoming Capacity 1.8 MTPA - 5.2 MTPA, Gare Palma IV/7 1.68 MTPA, Gare Palma IV/7 The horizon of growth… Expected capacity of 1.8 MTPA after Received consent to operate (CTO) for increase expansion in
Slide 17: Energy (Captive Use) - Meets 100% of in-house Power Requirement
2. Energy (Captive Use) - Meets 100% of in-house Power Requirement Thermal Power Solar Power Operational Capacity Upcoming 2*300 MW Capacity The horizon of growth… 81.5 MW 50 MW, Chhattisgarh Chhattisgarh We are developing a 50 MW Solar Power Plant in Siltara Plant (60 MW coal and 21.5 MW Work in pr
Slide 18: Energy (Commercial) - Acquired SKS Power having 2x300 MW
2. Energy (Commercial) - Acquired SKS Power having 2x300 MW of Thermal Capacity Operational Capacity 2x300 MW, Chhattisgarh The horizon of growth… 13-Aug-2024: NCLT approved the resolution plan of SEML for SKS Power Generation (Chhattisgarh) Ltd The acquisition of SKS Power marks a major (SKS) under
Slide 19: Energy (Commercial) - Operational Hydro Power Assets of ~167 MW
2. Energy (Commercial) - Operational Hydro Power Assets of ~167 MW Operational Capacity Upcoming Capacity 4.8 MW, Sarju, Uttarakhand 24.9 MW, Kotaiveera The horizon of growth… 24 MW, Gullu, Chhattisgarh Project is based on IB river and is under clearance phase The 24.9 MW plant on the Rehar River in
Slide 20: Metals | Stable, Fully-integrated Business
3. Metals | Stable, Fully-integrated Business Steel Ferro Alloys Pellets - 9 lac MT Vishakhapatnam (SMAL) - Exports The horizon of growth… 25-30% - Captive Consumption 2*33 MVA Cost reduction and carbon footprint mitigation 1*36 MVA Sponge Iron - 3.6 lac MT initiatives like the Mineral Wool Project,
Slide 21: Financial Prowess Marks a Promising Outlook for Growth
Financial Prowess Marks a Promising Outlook for Growth Standalone Debt (Rs Cr) Consolidated Debt (Rs Cr) Consolidated TOL/NW (x) Gross Debt Net Debt Gross Debt Net Debt 1.14 1,459 0.99 Comfortable liquidity 2,875 212 0.73 0.71 supported by strong internal 134 0.58 0.52 1,366 1,312 cash generation an
Slide 22: Strong Focus on ESG
Strong Focus on ESG Hydro Power • Existing Hydropower portfolio of ~142 MW and 24.9 MW Rehar Hydropower has been synchronized with the Grid and commenced trial production of power on 10th Jan 2025. • Few more small hydropower projects are under different stages of approval. Waste Heat Power • Existi
Slide 23: SEML | Beyond Steel
SARDA SARDA ENERGY & MINERALS LTD.
Slide 24: Robust and Diversified Business Model with Strategically Located Assets
Robust and Diversified Business Model with Strategically Located Assets… With a robust presence spanning Minerals, Energy and Metals, we are strategically positioned to capitalize on the emerging opportunities, particularly in Minerals and Energy Sector Minerals Energy Metals Iron Ore Coal Thermal H
Slide 25: Built Over Five Decades of Excellence
…Built Over Five Decades of Excellence ▪ Continued expansion of capacities across Steel and Ferro Products ▪ 4.8 MW Hydro power ▪ 113 MW Sikkim Hydro Power plant plant commissioned in commissioned in Jun-21 ▪ Company started 24 2008-09 ▪ Gare Palma IV/7 Coal Mine MW captive power ▪ Pellet plant comm
Slide 26: Well-Experienced and Strong Leadership Team at the Helm
Well-Experienced and Strong Leadership Team 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 48 Mechanical Engineer with 21 CA, CS with a rich experience MBA in International Business MBA
Slide 27: Corporate Social Responsibility
Corporate Social Responsibility
Slide 28: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility 01 02 03 Health & Safety No. of Incidents Social Responsibility • SEML awarded - Appreciation Award for • Incident rate (including minor injuries) has • Adopted 50 single-teacher schools in the Best Company in the Entire Eastern Region seen a declining
Slide 29: Education, Culture and Arts
Education, Culture and Arts ▪ Supported Parivaar Education Trust for Shiksha Kutir Project ▪ Promoted the art and culture of Chhattisgarh at the Chakradhar Samaroh in Raigarh. ▪ Supported R.K. Sarda Trust for Education development. ▪ Renovated School Boundary Wall at Mandhar ▪ Teachers in government
Slide 30: Healthcare and Infrastructure
Healthcare and Infrastructure ▪ Donated a mobile van for the Netra Sahayta Program of Shri Ganesh ▪ Supplied eco-friendly bricks to Kurra Panchayat for garden Vinayak Foundation. development next to the school ▪ Ambulance facility provided in Rajgarh ▪ Supplied eco-friendly bricks to Siltara Panchay
Slide 31: Livelihood, Environmental & Economic Sustainability
Livelihood, Environmental & Economic Sustainability ▪ Promoted mushroom cultivation for income generation ▪ Supported marriage of girls from underprivileged families. ▪ Started Costume Jewellery training at Siltara ▪ Organized Sewing Training of women SHG ▪ Awareness session on Kitchen Badi developm
Slide 32: Historical Financials
SARDA SARDA ENERGY & MINERALS LTD.
Slide 33: Consolidated P&L – Consistent Growth with High Profit Margins
Consolidated P&L – Consistent Growth with High Profit Margins Particular (Rs Cr) FY19 FY20 FY21 FY22 FY23 FY24 Revenues 2,324 2,000 2,199 3,914 4,212 3,868 Other Income 17 -17 144 50 49 184 Total Income 2,341 1,983 2,343 3,964 4,261 4,052 Raw Material 1,493 1,293 1,347 2,086 2,495 2,407 Employee Exp
Slide 34: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile Particular (Rs Cr) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Share Capital 36 36 36 35 35 35 Tangible Networth 1,834 2,182 2,968 3,375 3,853 5893 Minority Interest 100 101 104 100 106 111 Long Term Borrowings 1,408 1,493 1
Slide 35: Yearly Trend | Production and Sales (1/2)
Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet Production 228 229 800 810 325 192 741 316 175 177 600 600 619 157 302 291 294 290 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 488 522 517 33 33 161 30 31 438 426 148 131
Slide 36: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys Production 190 193 39 38 200 161 32 159 164 142 147 145 132 119 23 26 124 21 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 151 154 40 38 195 118 121 127 32 158 157 27 139 123 135 S
Slide 37: Yearly Trend | Power Generation & Sales
Yearly Trend | Power Generation & Sales Thermal Power Hydro Power 1,262 532 494 479 1,076 1,079 1,083 452 999 964 423 423 115 115 129 129 173 85 85 142 103 76 71 81 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22** FY23 FY24 Generation Sales Generation Sales* *Includes only the contractual power s
Slide 38: Details of Existing Hydropower Assets of ~167 MW
Details of Existing Hydropower Assets of ~167 MW Capacity 4.8 MW 24 MW 113 MW Annuity-like Revenue (Rs Cr) with high EBITDA Margin (%) Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu 88% 85% Year of 73% 71% 2008 2017 2021 70% Commissioning Final tariff under Tariff R
Slide 39: Share Price Information
Share Price Information BSE 150 MidCap Sarda Energy & Minerals NSE 150 Midcap Price chart base to 100 250 200 192 150 109 100 108 50 - Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Capital Market Information (as on 07-Feb-24) Consistently Paying Dividend
Slide 40: 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 www.stellar
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