Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — FY2022 Earnings Presentation
48 slides from Sarda Energy & Minerals's earnings presentation, May 2022
Slide 1: Investor Presentation | Q4 & FY22
Investor Presentation | Q4 & FY22
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 & FY22 - Key Highlights 2 SEML – Sustainable Growth 3 Business Segments 4 Corporate Social Responsibility 5 Financials 3
Slide 4: Q4 & FY22 | Key Highlights
an Q4 & FY22 | Key Highlights
Slide 5: FY22 - Yet Another Year of Robust Performance (1/2)
FY22 - Yet Another Year of Robust Performance (1/2) Financial Performance: Highest Ever Yearly Revenue and Profits TOTAL INCOME (INR CR) EBITDA (INR CR) PAT (INR CR) 1406 3964 807 2343 664 1983 376 339 128 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 CASH PROFIT (INR CR) GROSS DEBT (INR CR) DIVIDEND
Slide 6: FY22 - Yet Another Year of Robust Performance (2/2)
FY22 - Yet Another Year of Robust Performance (2/2) Operational Performance: • Highest Ever Annual Production of Iron Ore Pellet at 741,000 MT and Sales at 488,056 MT • Highest Ever Annual Production of Steel Billet at 192,283 MT • Highest Ever Annual Production of Wire Rod at 160,945 MT and Sales a
Slide 7: Metals Business: Key Updates
Metals Business: Key Updates ▪ Gare Palma IV/7 Coal Mine (in Chhattisgarh) Operationalised in Q4FY22 ▪ Extractable reserves of 142 MMT and Production capacity of 1.2 MMT p.a. ▪ Achieved rated capacity in January 2022, ahead of schedule (Mar-2022) ▪ Coal washery with a capacity of 1 MMT p.a. started
Slide 8: Hydro Business: Key Updates
Hydro Business: Key Updates • Operationalized the 113 MW Sikkim Hydro Power (SHP) project in Q2FY22 • With this, the total operational capacity of Hydro Power (annuity-like business model) stands at a sizeable ~143 MW • 35-year PPA with State Discom; Generating Free Cashflow and pre-paying Debt • Cr
Slide 9: ESG: Total Green Power capacity has now Surpassed Thermal Power
ESG: Total Green Power capacity has now Surpassed Thermal Power With ~163 MW (143 MW of Hydro + 20 MW of Waste Heat) of operational power generating capacity from Non-Carbon Energy sources and another 24.90 MW under execution, SEML is now a Green Powerhouse • Large hydropower projects with a capacit
Slide 10: Sikkim Hydro Project - Significant Fillip to Consolidated EBITDA
Sikkim Hydro Project - Significant Fillip to Consolidated EBITDA… EBITDA Bridge – FY22 (in INR Crore) • Sikkim Hydro Power project was commissioned on June 30, 2021, and led to… • Substantial jump in Hydro EBITDA which stood at ~INR 234 Cr in FY22 as against INR 61 Cr in FY21 • …Resulting in a signi
Slide 11: And Commenced Repayment of Sikkim Hydro Debt from its Cash Flows
…And Commenced Repayment of Sikkim Hydro Debt from its Cash Flows Debt Bridge – As on March 31, 2022 (in INR Crore) 981 1,581 2 • Majority of the Total Debt is on account of the Sikkim Hydro project, repayment of which has started as the plant has achieved COD 80 347 • Consolidated Net Debt stood at
Slide 12: Consolidated P&L – Highest Ever Revenue & Profit
Consolidated P&L – Highest Ever Revenue & Profit INR in Cr Q4FY22 Q4FY21 YoY Q3FY22 QoQ FY22 FY21 YoY Revenues 1,058 699 999 3,914 2,199 Other Income 34 42 -13 50 144 Total Income 1,092 741 47% 986 11% 3,964 2,343 69% Raw Material 581 422 550 2,086 1,347 Employee Expenses 36 24 26 113 89 Other Opera
Slide 13: Standalone P&L - Highest Ever Revenue & Profit
Standalone P&L - Highest Ever Revenue & Profit INR in Cr Q4FY22 Q4FY21 YoY Q3FY22 QoQ FY22 FY21 YoY Revenues 761 551 671 2,642 1,595 Other Income 27 27 -1 75 107 Total Income 788 579 36% 670 18% 2,717 1,702 60% Raw Material 385 338 400 1,467 974 Employee Expenses 28 18 18 82 68 Other Operating Expen
Slide 14: Balance Sheet – Conservative Capital Structure and Comfortable Liquidity Position
Balance Sheet – Conservative Capital Structure and Comfortable Liquidity Position Consolidated Standalone Consolidated Standalone Liabilities (INR Cr) Assets (INR Cr) Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Shareholder’s Funds 2,218 3,004 2,011 2,643 Non-Current Assets 3,019 3,139 1,
Slide 15: Metals Segment - Product Prices Continue to Remain Firm
Metals Segment - Product Prices Continue to Remain Firm Steel Segment: Product wise Incremental Realization (INR per MT) Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 677 3,295 2,454 2,315 2,348 3,061 3,266 3,246 1,337 18,888 4,497 1,878 13,774 Value 12,453 INR / MT 2,297 14,380 2,383
Slide 16: Stable Demand Across Products – Volume Data (1/2)
Stable Demand Across Products – Volume Data (1/2) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 85 53 159 47 134 69 109 111 37 Q4 30 8 5 Production Sales Production Sales Production Sales 741 291 294 619 192 177 488 426 131 121 FY 26 26 Production Sales Production Sales Pro
Slide 17: Stable Demand Across Products – Volume Data (2/2)
Stable Demand Across Products – Volume Data (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 45 43 41 44 9 9 35 30 8 7 39 Q4 38 Production Sales Production Sales Production Sales 32 32 161 27 159 153 147 26 127 132 135 121 FY Production Sales Production Sales Production Sales FY2
Slide 18: Power Segment - Highest Ever Hydro Power Generation & Sales
Power Segment - Highest Ever Hydro Power Generation & Sales Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 285 279 25 25 Q4 9 9 29 15 GE NE RATION SAL E S GE NE RATION SAL E S 1079 964 417 417 FY 129 129 10
Slide 19: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Backward Integration Capacity Expansion Diversification • Iron Ore Pellet capacity expanded by 2 lac Adding Annuity-like Revenue Stream (Hydro) To Reduce Input Costs and Ensure Consistent Supply MMT to 8 lac MMT, effective March 2021 • Commerc
Slide 20: SEML | Sustainable Growth
SEML | Sustainable Growth 20
Slide 21: Robust Business Model with Diversified Business
Robust Business Model with Diversified Business Adding Value to Minerals and Energy METALS HYDRO POWER Vast experience of over 49 years in Steel Manufacturing To de-risk from the cyclicality of Metals business, SEML diversified into renewable energy in Early 2000s Vertically integrated producer of S
Slide 22: Strategically Located Assets – Proximity to Raw Materials and End Users
Strategically Located Assets – Proximity to Raw Materials and End Users… Captive Iron Ore and Coal Mines located within ~140 km and ~200 km respectively, from the End-user plant at Chhattisgarh Iron Ore Mine at Rajnandgaon, Chhattisgarh (rated capacity of 1.5 MMT p.a.) Coal Mine at Gare Palma IV 7,
Slide 23: Built Over Four Decades of Excellence
…Built Over Four Decades of Excellence 1979-89 1989-99 1999-08 2008-18 2018-22 ▪Acquired Raipur Wires and Steel as a ▪Installed 25 TPD Electric Arc Furnance ▪Company started 24 MW captive ▪4.8 MW Hydro power plant ▪Billet capacity increased by 50% sick unit in 1979 in 1990 power plant and Ferro Allo
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: Business Segments
Business Segments 25
Slide 26: Metal Business | Vertically Integrated Steel Player
Metal Business | Vertically Integrated Steel Player… Raw Material & Energy Generation (Captively procured key inputs, assure cost and quality control) Raw Material & Energy Generation Iron Ore Mine | Coal Mine | Power Intermediate / Finished Products (Flexibility to sell products across entire produ
Slide 27: Backed by Captive Resources, Driving Down Costs Significantly
… Backed by Captive Resources, Driving Down Costs Significantly Captive Iron Ore Mine Two Coal Mines Captive Thermal + Waste Heat Plants (Total Capacity of 1.5 MMT p.a.) (Total Capacity of 1.8 MMT p.a.) (Total capacity of 161.5 MW) • Located at Rajnandgaon, Chhattisgarh, which is ▪ Gare Palma IV/ 7
Slide 28: Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh
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 29: And a 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 30: Hydro Power Business | Operational Assets of ~143 MW
Hydro Power Business | Operational Assets of ~143 MW… 4.8 MW 24.9 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of 2008 2017 2021 Commissioning Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination Term of PPA 30 -year PPA with
Slide 31: With Track Record of Robust PLF and Annuity-like Revenue + High Margin
…With Track Record of Robust PLF and Annuity-like Revenue + High Margin Generation and Sales (Mn KwH) Revenue (INR Cr) & EBITDA Margin (%) Generation Sales 417 417 400 100% 88% 86% 85% 90% 350 80% 300 69% 69% 271 70% 250 57% 60% 200 50% 150 40% 129 129 115 115 30% 74 74 85 85 100 68 58 20% 35 45 19
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility 32
Slide 33: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility (including minor) 21 23 15 7 3 3 CY16 CY17 CY18 CY19 CY20 CY21 33
Slide 34: Education: Enabling quality education in community
Education: Enabling quality education in community ▪ Salary support to Teachers at Siltara & Mines area village schools ▪ Reward to Meritorious students of 10th & 12th of Siltara, Mandhar & Girod ▪ Support to Educational Trust for quality education development ▪ Support to Ekal Vidyalayas for educat
Slide 35: Healthcare: Preventive & curative healthcare services
Healthcare : Preventive & curative healthcare services ▪ Operating mobile medical van with free medicines in mines area villages ▪ Mobilized Doctors for community healthcare services around 20 villages ▪ Financial support to critical patients for their advanced treatment ▪ Organized Health camp on i
Slide 36: Infrastructure: Creating community assets
Infrastructure : Creating community assets ▪ Construction of Community hall in Siltara and Murethi village ▪ Repair & Renovation of Cross Drain and Service road at village Basantkala ▪ Gali Concrete work at Tada , Mandhar & Girod ▪ Bazar Walkway concrete work at Siltara ▪ Creation of community asset
Slide 37: Livelihood: Environmental & economical sustainability
Livelihood : Environmental & economical sustainability ▪ Mass Bamboo plantation under Hariyar Chhattisgarh ▪ Pond Deepening work at Murethi ,Siltara ,Akoli & Jakke village for Water shed development ▪ Potable water supply in Siltara, Mandhar & Mines area villages ▪ Support to the farmers for crop lo
Slide 38: Art, Culture & Sports: Sports & culture development
Art, Culture & Sports : Sports & culture development ▪ Rural awareness program on MGNERGA with Central Board Of Workers Education ▪ Support to old age home for the take care of Smt. Radha Bai Mandavi ▪ Support for the local cultural promotion festivals, Jhanki, Dance & Folk Art in villages ▪ Sponsor
Slide 39: Initiatives Against COVID-19
Initiatives Against COVID-19 Donated Food Grains to Villagers COVID testing camps for Villagers Provided Medical Kit & Apparatus help to COVID-19 Hospitals Vaccine Drive for Employees: 100% of the employees have been given both doses 39
Slide 40: Financials
Financials 40
Slide 41: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 3004 2,218 2,199 2190 2,132 • Improving TOL/ NW ratio along 1,870 with strong liquidity position 1,768 1,807 1,702 1,743 1,537 1,576 1.45 • With additional cashflows post 1,358 1,223 1.26 1.14 commissioning of Sikkim Hydro 1.12
Slide 42: Consolidated P&L – Consistent Growth and High Profit Margins
Consolidated P&L – Consistent Growth and High Profit Margins INR in Cr FY18 FY19 FY20 FY21 FY22 Revenues 2,217 2,324 2,000 2,199 3,914 Other Income 70 17 -17 144 50 Total Income 2,287 2,341 1,983 2,343 3,964 Raw Material 1,478 1,493 1,293 1,347 2,086 Employee Expenses 77 87 88 89 113 Other Operating
Slide 43: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr FY18 FY19 FY20 FY21 FY22 Share Capital 36 36 36 36 36 Tangible Networth 1,540 1,707 1,834 2,182 2,968 Minority Interest 88 132 100 101 104 Long Term Borrowings 998 1,078 1,408 1,493 1,196 Short Term Borrowings 32
Slide 44: Yearly Trend | Production and Sales (1/2)
Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet PRODUCTION ('000 MT) PRODUCTION ('000 MT) PRODUCTION ('000 MT) 741 600 600 600 619 325 177 192 302 175 157 291 294 136 278 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 SALES ('000 MT) SA
Slide 45: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys PRODUCTION ('000 MT) PRODUCTION ('000 MT) PRODUCTION ('000 MT) 161 32 142 147 149 159 28 26 145 113 119 124 132 21 23 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 SALES ('000 MT) SALES ('000 MT)
Slide 46: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,076 1,079 417 417 1,010 999 964 115 115 129 129 173 74 74 85 85 145 142 103 76 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22* G
Slide 47: Share Price Information
Share Price Information Volume (# Shares) Share Price (INR) 1400 1800000 1200 1600000 1400000 1000 1200000 800 1000000 600 800000 600000 400 400000 200 200000 0 0 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Capital Market Information (as on 20-Ma
Slide 48: 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 Kanakia Wall Street, Andheri (East), Mumbai 400 093 www.seml.co.in 48
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