Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q3 FY25 Earnings Presentation
46 slides from Shyam Metalics & Energy's earnings presentation, Jan 28, 2025
Slide 1: Exchange filing cover letter
SMEL/SE/2024-25/103 January 28, 2025 eee The Secretary, Listing Department The Manager - Listing Department BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers Limited “Exchange Plaza”, 5th Floor, Plot Dalal Street No. C/1, G Block, Bandra-Kurla Complex, Mumbai 400 001 Bandra (Eas
Slide 2: Investor Presentation | January 2025
Investor Presentation | January 2025
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
SHYAM _ 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 Q3 FY25
Key Updates for Q3 FY25 Capex & Operational Update • Capex incurred till 9M FY25: Rs. 5,873 crores which accounts for 59% of the total CAPEX Envisaged i.e., Rs. 10,025 crores out of which Rs. 4,347 crores have been capitalized • Procured 17 rakes under Own your wagon scheme from Indian Railways with
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 Q3 FY25 Post Expansion Capacity (MTPA) Q3 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
SIAYAM 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) 31st December (Rs Cr) (Rs Cr) (Million MTPA) Benefication Plant 3.0 300 24 276 Sponge Iron 1.05 400 225 175 Blast Furnace 0.45
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) 31st December (Rs Cr) (Rs Cr) (Million MTPA) Stainless Steel: Billet Stainless Steel 0.13 130 65 65 Billet Slabs for Flat products 0
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) FY24 (MMTPA) FY27E Carbon Steel: Intermediate Pellet 6.00 6.00 1.03 1.20 Products a. Sponge Iron
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) FY24 (MMTPA) FY27E Stainless Steel: Intermediate Stainless Steel Billets 0.12 0.7
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% 75% 51% 47% 48% 48% 45% 37% 38% 37% Enriching product portfolio to make a basket of fully 31% integrated downstream products 24% 16% 17% 15% 13% 13% 7% 4% 4% 5% FY21 FY22 FY23 FY24 9M FY25 Intermediates Finished Steel Special
Slide 22: Export Opportunities
Export Opportunities We are preferred suppliers to large corporations like 27 11% 01 02 03 Countries JM Global Metal Bhutan Resources Exchange Concast Exports to countries like USA, Export Contribution to Revenue Japan, Korea, Italy, Nepal, in Q3 FY25 Bangladesh 04 05 06 Steel products both upstream
Slide 23: Q3 & 9M FY25 Financial Performance
Q3 & 9M FY25 Financial Performance
Slide 24: Performance Highlights
Performance Highlights Q3 FY25 Rs. 3,753 Cr Rs. 456 Cr Rs. 507 Cr Rs. 197 Cr Revenue Operating EBITDA EBITDA PAT YoY 13.2% YoY 11.9% YoY 13.3% YoY 56.8% 9M FY25 Rs. 10,998 Cr Rs. 1,350 Cr Rs. 1,527 Cr Rs. 689 Cr Revenue Operating EBITDA EBITDA PAT YoY 14.7% YoY 19.7% YoY 23.5% YoY -14.9%* *Q2 FY24 P
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q3 FY25 Q3 FY24 Y-o-Y Q2 FY25 Q-o-Q 9M FY25 9M FY24 Y-o-Y Revenue from Operations 3,752.5 3,315.3 13.2% 3,634.0 3.3% 10,998.1 9,589.0 14.7% Cost of Material Consumed 3,044.8 2,505.0 2,590.1 8,434.6 7,097.8 Purchases of stock in trade 0.0 0.
Slide 26: Q3 FY25 Performance Highlights
Q3 FY25 Performance Highlights Rs. 3,753 crores Rs. 456 crores Rs. 507 crores Rs. 197 crores Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) Y-o-Y +39% -0.3% Q-o-Q Steel Products 7.0% 12.3% 0.26 0.26 1.5% 0.05 0.05 Al
Slide 27: 9M FY25 Performance Highlights
9M FY25 Performance Highlights Rs. 10,998 crores Rs. 1,350 crores Rs. 1,527crores Rs. 689 crores Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) +60% Y-o-Y Steel Products 7.3% 13.1% 0.75 1.5% Y-o-Y 4.7% 0.15 Aluminium
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 -0.2% -5% +2% -6% +1% -6% +6% -7% +25% 95,383 99,851 95,234 95,248 97,516 46,309 43,684 47,665 44,678 1,37,523 1,27,652 1,33,149 43,205 1,20,940 1,06,543 Q3 FY24 Q2 FY25 Q3 FY25 9M FY24 9M FY25
Slide 29: 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 30: 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 31: 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 32: Consistent EBITDA Track Record
Consistent EBITDA Track Record EBITDA* (Rs. Cr) Other income as % of EBITDA 539 493 507 481 450 438 447 345 265 260 16% 14% 11% 10% 10% 9% 9% 8% 8% 5% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1 FY25 Q2 FY25
Slide 33: Enhancing Shareholder’s Value
Enhancing Shareholder’s Value Dividend Payout (%) 14% 12% 11% 11% 5% FY21 FY22 FY23 FY24 9M FY25 Particulars (in Rs Cr) FY21 FY22 FY23 FY24 9M FY25 Net Profit 844 1,724 843 1,029 689 Dividend 43 184 114 122 63 The Company has paid post IPO dividend amounting to Rs. 483 cr being 11.4% of the aggregat
Slide 34: 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 33
Slide 35: Annexure
SHYAM | METALICS Annexure
Slide 36: 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 37: 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 15.13 MTPA comprisin
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: 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 0.87
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 Iro
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 W
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 Mr. Sumeet Khaitan +91 7021320701 Trinity Tower, 7th Floor, 83, Topsia Road +91 9830028142 sumeet.khaitan@linkintime.co.in Kolkata –
Shyam Metalics and Energy — Q3 FY25 Earnings Presentation on 6ix