Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q1 FY25 Earnings Presentation
46 slides from Shyam Metalics & Energy's earnings presentation, Jul 30, 2024
Slide 1: Exchange filing cover letter
Certified SMEL/SE/2024-25/41 3uly 30, 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
Slide 2: Investor Presentation | July 2024
Investor Presentation | July 2024 Securing tomorrow with today’s strength
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
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 Q1 FY25
Key Updates for Q1 FY25 Capex & Operational Update • Capex incurred till FY24: Rs. 4,948 crores which accounts for 50% 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 Financi
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 357 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 Capacity (MTPA) FY21 FY22 FY23 FY24 Q1 FY25 Post Expansion Capacity (MTPA) Post Expansion Iron Pellet 2.40 3.60 4.80 6.00 6.00 6.00 Beneficiation 3.0 Sponge Iron 1.39 2.11 2.54 2.90 3
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 To setup a 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 will be set
Slide 15: Current Projects Overview
Current Projects Overview
Slide 16: Projects Pending Installation and Status of Cost Incurred of 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) 30st June (Rs Cr) (Rs Cr) (Million MTPA) Benefication Plant 3.0 300 10 290 Sponge Iron 1.05 400 101 299 Blast Furnace 1.05 974
Slide 17: Projects Pending Installation and Status of Cost Incurred for 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) 30st June (Rs Cr) (Rs Cr) (Million MTPA) Stainless Steel: Billet Stainless Steel 0.13 130 40 90 Billet Slabs for Flat products 0.5 2
Slide 18: Projects Status Updates
Projects Status Updates BLAST FURNACE - KHARAGPUR Project expected to be commissioned in Dec -24 COKE OVEN PLANT - JAMURIA Lit up of coke oven plant already done 17
Slide 19: Projects Status Updates
Projects Status Updates BLAST FURNACE - JAMURIA Heat up expected shortly, and commercial production expected to start in next 45 to 60 days SINTER PLANT - JAMURIA Project expected to be commissioned in Aug-24 18
Slide 20: Projects Status Updates
Projects Status Updates CRM COMPLEX - JAMURIA Cold and Hot trial runs have begun 19
Slide 21: Current Capacities Across Carbon Steel Life Cycle
Current Capacities Across Carbon Steel Life Cycle Finished Steel 2.07 MTPA WRM 0.92 MTPA TMT 0.92 MTPA (Wire Rod & Wire Draw Mill) DRI 3.05 MTPA SMS 2.01 MTPA Iron Making Liquid Steel Structurals Pipe Mill 0.03 MTA (Direct Reduced Iron) (Steel Melting Shop) 0.20 MTPA 20
Slide 22: Higher Contribution of Finished Steel Products
Higher Contribution of Finished Steel Products Revenue Mix 23% 37% 38% 45% 48% 24% 48% Enriching product portfolio to make a basket of fully 12% 8% 20% 11% 17% 8% 5% 5% integrated downstream products 18% 19% 16% 15% 4% 13% 18% 17% 13% 24% 15% 7% 4% 5% 7% 14% 18% 8% 1% 2% 4% FY20 FY21 FY22 FY23 FY24
Slide 23: Export Opportunities
Export Opportunities We are preferred suppliers to large corporations like 21 9% 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 Q1 FY25 Bangladesh 04 05 06 Steel products both upstream
Slide 24: Q1 FY25 Financial Performance
Q1 FY25 Financial Performance
Slide 25: Performance Highlights
Performance Highlights Q1 FY25 Rs.3,612 Cr Rs. 488 Cr Rs. 539 Cr Rs. 276 Cr Revenue Operating EBITDA EBITDA PAT YoY 8.4% YoY 17.8% YoY 21.7% YoY 36.7% 24
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q1 FY25 Q1 FY24 Y-o-Y Q4 FY24 Q-o-Q FY24 Revenue from Operations 3,611.6 3,333.0 8.4% 3,606.2 0.2% 13,195.2 Cost of Material Consumed 2,778.1 2,433.1 2,495.8 9,593.6 Purchases of stock in trade 26.1 3.5 27.0 31.2 Change in Inventories of Fi
Slide 27: Q1 FY25 Performance Highlights
Q1 FY25 Performance Highlights Rs. 3,612 crores Rs. 488 crores Rs. 539 crores Rs. 276 crores Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) Y-o-Y +56% +9% Q-o-Q Steel Products 7.0% 12.6% 0.21 0.23 4.1% 1.5% 0.05 Alum
Slide 28: 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 +1% 2% -6% -5% +7% -11% +47% +6% +4% 96,553 95,554 97,252 1,01,360 95,337 49,716 47,348 52,279 1,26,086 1,34,266 1,08,149 1,12,861 44,179 46,662 91,500 Q1 FY24 Q4 FY24 Q1 FY25 FY23 FY24 Q1 FY24
Slide 29: Strong Debt Profile
Strong Debt Profile Gross Debt* (Rs. Cr) Net Debt^ (Rs. Cr) 1,050 960 951 865 785 246 534 577 -477 -562 -1,338 -1,514 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Gross Debt / Equity Net Debt / EBITDA 0.37 1.51 0.18 0.30 0.21 -0.18 0.13 0.09 0.08 -0.96 0.06 Mar
Slide 30: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth Conservatively Leveraged + Internal Operating Efficiency led to significant reduction in Disciplined Capital Allocation strategy Working capital requirements = Better Return Metrics Working Capital (days) Return ratios (%) 24 12 57% 34% 91 ROCE 13% 20% 15
Slide 31: Disciplined Capital Allocation
Disciplined Capital Allocation CashFlow from Operations (Rs. Cr) CAPEX (Rs. Cr) 1,794 1,578 1,543 1,689 1,518 1,277 1,056 251 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Cash & Cash Equivalents (Rs. Cr) CAPEX as % of Cashflow from Operations 102% 2,092 88% 76% 1,541 1,262 24% 486 FY21 FY22 FY23 FY24 FY2
Slide 32: Consistent EBITDA Track Record
Consistent EBITDA Track Record EBITDA* (Rs. Cr) Other income as % of EBITDA 14% 629 539 493 11% 10% 450 438 447 9% 9% 8% 345 8% 265 260 5% 3% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1 FY25 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1 FY25 Note - Based on
Slide 33: 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 32
Slide 34: Long Term Rating at CRISIL AA/ Outlook: Stable
Long Term Rating at CRISIL AA/ Outlook: Stable Current Rating CRISIL AA Outlook Stable Latest Review Dec-23 CRISIL AA CRISIL AA CRISIL AA CRISIL AA- CRISIL AA- FY20 FY21 FY22 FY23 Dec-23 33
Slide 35: Annexure
Annexure
Slide 36: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure 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 export o Plants are
Slide 37: Brownfield expansion with…
Brownfield expansion with… 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 13.66 MTPA comprising of intermedia
Slide 38: 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 39: Detailed Plant Wise Capacities – Existing
Detailed Plant Wise Capacities* – Existing 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 0.87 1.14 2.01 TM
Slide 40: 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 Ir
Slide 41: 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
Slide 42: 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 43: 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 44: 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 45: 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 46: 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 — Q1 FY25 Earnings Presentation on 6ix