Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q3 FY2021 Earnings Presentation
30 slides from Sarda Energy & Minerals's earnings presentation, February 2021
Slide 1: Sarda Energy & Minerals: Mining, Steel, Ferro-Alloys, Hydro
MINING STEEL F E R R O-A L L O Y S HYDRO
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: Agenda
Agenda 1 Q3/9MFY21 : Result Highlights 2 SEML – Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 4: Q3/9M FY21: Result Highlights
Q3/9M FY21 : Result Highlights
Slide 5: Key Business Highlights – Q3/9M FY21
Key Business Highlights – Q3/9M FY21 Robust Growth Across Products in Q3FY21 – Sales (‘000 MT) Declared Successful Bidder in the Recent Coal Mine Auction Shahpur West Gare Palma IV/ 7 36 Coal Mine Coal Mine 29 7 35 Location Madhya Pradesh Chhattisgarh 6 9 32 33 7 Revenue Share 26.0% 66.8% 43 98 51 E
Slide 6: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q3FY21 Q3FY20 YoY Q2FY21 QoQ 9MFY21 9MFY20 YoY Revenues 604 456 548 1,500 1,562 Other Income 38 15 26 102 37 Total Income 642 472 36% 574 12% 1602 1599 0% Raw Material 367 297 342 925 1,020 Employee Expenses 22 23 21 64 69 Other Operating Expenses 67
Slide 7: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q3FY21 Q3FY20 YoY Q2FY21 QoQ 9MFY21 9MFY20 YoY Revenues 440 342 373 1044 1143 Other Income 28 36 33 80 69 Total Income 467 377 24% 406 15% 1124 1213 -7% Raw Material 261 229 226 635 750 Employee Expenses 17 18 16 50 55 Other Operating Expenses 47 39 53
Slide 8: Steel and Ferro Segment: Production & Sales (volumes)
Steel and Ferro Segment: Production & Sales (volumes) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billets (‘000 MT) 193 53 158 48 84 81 98 43 51 33 7 9 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 43 7 7 50 39 6 6 35 40 36 32 31
Slide 9: Steel Segment: Product wise Incremental Realization
Steel Segment: Product wise Incremental Realization Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 45000 40000 1,745 2,496 2,631 1,878 35000 6,278 5,032 2,297 5,477 2,383 2,790 2,578 1,849 2,450 3,867 30000 3,092 4,679 3,409 3,789 13,194 Rs. /MT 12,907 14,011 25000 13,795 10,669 Value
Slide 10: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Power (Thermal) All Fig. in Mn KwH unless specified Power (Hydro) Generation Sales 253 245 37 37 34 34 25 25 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Thermal Power (Captive) Capacity : 162 MW Hydro Power Capacity : 29.7 MW Note: One power plant was shut down for repair
Slide 11: SEML – Consistent & Disciplined Growth
SEML – Consistent & Disciplined Growth
Slide 12: SEML at Glance (FY20)
SEML at Glance (FY20) Steel Business Hydro Power Financials Pellet Production Billet Production Operational Capacity 6 Lac MT Revenue from Operations EBITDA* 1.76 Lac MT 29.7 MW INR 2,000 Cr INR 396 Cr Wire Rod Production 1.42 Lac MT Capacity Under Execution PAT Dividend Per Share 120.9 MW INR 128 C
Slide 13: Sarda’s Transformation Journey
Sarda’s Transformation Journey… ▪ Billet capacity increased by 50% ▪ Acquired Raipur Wires and Steel as a ▪ Company started 24 MW captive power ▪ Pellet Capacity proposed to increase from sick unit in 1979 plant and Ferro Alloy plant in 2001 6,00,000 MT to 8,00,000 MT in FY21 ▪ Installed 10 MT elect
Slide 14: …Under Strong Leadership
…Under Strong Leadership Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • MS in Industrial Administration from experience in Iron and Steel Industry Purdue University, USA • Responsible for steering SEML towards • Industry experience of more than 15 the path of gro
Slide 15: Company’s Asset Footprint
Company’s Asset Footprint Plants / Facilities Hydro Plant at Uttarakhand Hydro Plant at Sikkim Hydro Plant at Gullu Steel Plant (SEML** Plant) at Siltara Ferro Alloy Plant at Vizag under SMAL* Siltara plant is located within ~140 kms from Iron Ore mine (Rajnandgaon) and ~300 kms from Coal mines Iron
Slide 16: Strategic Priorities
Strategic Priorities
Slide 17: Strategic Priorities
Strategic Priorities Vertically Integrated Steel Player 1 Raw Material Security / Better Control / Lower Cost of Production Hydro Business Expansion 2 Visibility of incremental Stable Cashflow Strategic Priorities Disciplined Growth 3 Consistently improving Balance Sheet Strength Health, Safety & So
Slide 18: Vertically Integrated Steel Player
1 Vertically Integrated Steel Player… Iron Ore Pellets Sponge Iron Billets Wire Rods HB Wires Semi finished steel product 140 km near SEML Plant, Produced from Iron Ore fines Produced from captive Iron Ore Hot rolled product made from HB Wires- Wire rods are cold Description produced by continuous c
Slide 19: … presence in Ferro Alloys
… presence in Ferro Alloys • Two operational plants located at Raipur and Vizag with a total installed capacity of Ferro Alloys Exports (‘000 MT) 111 MVA • Manufactures manganese-based Ferro Alloys sold domestically as well exported to 86 other countries 64 • Leading exporter of manganese-based Ferr
Slide 20: Hydro Power Expansion
2 Hydro Power Expansion… Operational Capacity Under Execution Uttarakhand Chhattisgarh Sikkim Chhattisgarh 4.8 MW 24.9 MW 96 MW 24.9 MW Operational since 2008 Operational since 2017 Likely to be commissioned by Likely to be commissioned in March 2021* FY25 Cental Govt has notified Hydro Power Debt f
Slide 21: Disciplined Growth
3 Disciplined Growth Consistently improving Balance Sheet Strength 2,500 3 All Fig. in Cr. unless specified 2,132 2.5 Working 2,000 1,867 Rs. Cr Term Loan Total 1,807 Capital 1,768 1,743 1,702 1,576 2 1,537 Steel 562 164 726 1,500 1,358 1,223 1.5 Hydro Operational 110 - 110 1.45 1.26 Total 672 164 8
Slide 22: Focus on Safety, Health & Social Responsibility
4 Focus on Safety, Health & Social Responsibility… Health & Safety No. of Incidents Social (including minor ) Responsibility • SEML awarded - Appreciation Award for • Adopted 90 single-teacher schools in the Best Company in the Entire Eastern Region tribal areas of Chhattisgarh on Safety category •
Slide 23: Annual Financial Highlights
Annual Financial Highlights
Slide 24: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr FY16 FY17 FY18 FY19 FY20 Revenues 1,486 1,434 2,217 2,324 2,000 Other Income 35 67 70 17 -17 Total Income 1,521 1,502 2,287 2,341 1,983 Raw Material 964 942 1,478 1,493 1,293 Employee Expenses 68 75 77 87 88 Other Operating Expenses 259 200 260 261 2
Slide 25: Balance Sheet Highlights - Consolidated
Balance Sheet Highlights - Consolidated INR in Cr FY16 FY17 FY18 FY19 FY20 Share Capital 36 36 36 36 36 Tangible Networth 1,230 1,358 1,577 1,707 1,831 Long Term Borrowings 966 1,015 1,059 1,078 1,436 Other Liabilities 595 706 741 860 796 Total Liability 2,827 3,115 3,413 3,682 4,100 Net Fixed Asset
Slide 26: Yearly Volume Trend (1)
Yearly Volume Trend (1) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 600 600 600 600 325 495 304 302 175 438 278 266 157 384 135 136 133 313 176 253 161 143 150 148 208 38 33 29 30 20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Produ
Slide 27: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 142 149149 145 139 119 128 124123 118 121 113 30 29 29 113 28 101 27 26 107 97 92 86 23 21 20 21 72 64 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Production for FY20 was af
Slide 28: Yearly Power Generation
Yearly Power Generation Thermal Power – Mn units Hydro Power – Mn units 1,182 1,076 1,013 1,010 999 115115 85 85 463 74 74 197 173 145 142 18 18 19 19 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: Thermal Power is largely consumed for captive use; Thermal power generation in FY20 impacted
Slide 29: Share Price Information
Share Price Information 1-yr Share Price Movement (Rs/share) 500 400 300 200 100 0 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Capital Market Information (as on 12-Feb-21) Shareholding Pattern (as on 31-Dec-20) BSE/NSE Code 504614/SARDAEN Others 27.0% C
Slide 30: Thank You
Thank You Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma / Ms. Sheetal Keswani njoshi@seml.co.in pooja.sharma@stellar-ir.com / sheetal@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
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