Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q3 FY22 Earnings Presentation
32 slides from Shyam Metalics & Energy's earnings presentation, Feb 10, 2022
Slide 1: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation February 2022
Slide 2: 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 3: Key Updates for Q3 & 9M FY22
Key Updates for Q3 & 9M FY22 Strengthening • Launched Salman Khan as Brand Ambassador, new promotion activity underway for Brand the coming quarters • On track to increase the existing integrated installed facility of 5.7 million tons to Update on Capex 11.6 million tons by 2025 • Received “consent
Slide 4: Launched Salman Khan as Brand Ambassador
Launched Salman Khan as Brand Ambassador Shyam Metalics And Energy Limited has signed leading Bollywood superstar Salman Khan as the brand ambassador for endorsing its S-E-L TMT rebars “I have gone through the journey of the company and am excited to be part of the brand-building exercise of SEL TMT
Slide 5: Updates on Projects commissioned & CTO Status
Updates on Projects commissioned & CTO Status Cost Incurred till Projects Capacity Added Completion Date Status 31st Dec ‘21 Iron Pellets 1.20 MTPA November 2021 Rs. 159 crores CTO Pending Sponge Iron 0.28 MTPA November 2021 Rs. 80 crores CTO Received CTO Received- Sponge Iron 0.44 MTPA December 202
Slide 6: Commissioned ESG Study
Commissioned ESG Study In our move towards sustainable growth, ESG framework provides an opportunity to create a systematic approach for tangible outcomes. Growlity Inc. management consultants will carry out comprehensive diagnostic study on SMEL’s ESG fundamentals & compliance status. In Phase 1 of
Slide 7: Installed Solar Panels – Focus on Green Energy
Installed Solar Panels – Focus on Green Energy We have partnered with Fourth Partner Energy Pvt Ltd, India’s largest Commercial & Industrial Solar Developer The project has been initiated to reduce CO2 emission, and conserve water We also plan to plant 57,500 trees. On a pilot basis, initially based
Slide 8: Company Overview
Company Overview
Slide 9: Shyam Metalics at a Glance
Shyam Metalics at a Glance • Leading Integrated Steel and Ferro Alloys Producer in India • 4th Largest Sponge Iron Player, Leading player in terms of Pellet Capacity • Integrated Metal Producing Company • Strategically located plants with Proximity to Mineral Belts, National Highways and • Operates
Slide 10: Value Propositions
Value Propositions 1 2 3 4 5 Logistical Advantage Captive Power for Backward & Forward Flexible & Diversified Strong Brand & & Infrastructure Integration with ~81% power Product Mix Distribution Network Advantage with presence across the requirement Private Railway Sidings Value Chain 6 7 8 9 Capaci
Slide 11: 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 12: 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 in Jamuria, West Bengal with aggregate installed capacity of 6.24 MTPA comprising of intermediate and fi
Slide 13: …Lowest Capex compared to the Industry
…Lowest Capex compared to the Industry • Brownfield capacity expansion expected to increase aggregate installed metal capacity (comprising of intermediate and final products) from 6.24 MTPA currently to 11.60 MTPA and captive power plants Advantages of Brownfield Expansion aggregate installed capaci
Slide 14: Diversified & Interchangeable Product Mix
Diversified & Interchangeable Product Mix Capacity (Million MTPA) FY18 FY19 FY20 FY21 9M FY22 Iron Pellet 0.90 0.90 2.4 2.4 2.4 Sponge Iron 1.01 1.01 1.27 1.39 1.78 Existing Products Billets 0.54 0.63 0.80 0.89 0.94 TMT, Structural Steel, 0.25 0.25 0.82 0.82 0.90 Wire Rods & Pipes Ferro Alloys 0.19
Slide 15: Increasing share of B2C/Value Added Products
Increasing share of B2C/Value Added Products Structural Products are hot rolled products of special TMT Bars are high-strength reinforced bars having a forms like rounds, angles, channels & beams tough outer core and soft inner core We not only make structurals of standard dimensions, but also Custo
Slide 16: Huge Export Potential
Huge Export Potential 41% 42% 17% 20 Countries Exports to countries like Steel products both upstream and Ferro Chrome Pellets USA, Japan, Korea, Italy, downstream including Angles, Ferro Manganese and Nepal, Bangladesh Beams, Billets, Channels, Wire Rods, Silico Manganese Products MS Round Coils an
Slide 17: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Strategically located in the mineral rich East Indian region ~800+ dealers & distributors stock and sell the finished products across 27 states and 1 Union Raw Material Territory Sources are within 250 kms Kolkata We sell 70% of our products Haldia
Slide 18: Lowest Cost Captive Power
Lowest Cost Captive Power • Power consumed by the plants are primarily produced in-house by the captive power 5 Captive Plants Sambhalpur Total Capacity of 158 MW plants • Captive power plants utilise non fossil fuels such as waste, rejects, heat and gas generated 3 Captive Plants Jamuria Total Capa
Slide 19: Waste to Value
Waste to Value Efficient use of by products: Effluents/Wastes from all Steam generated used Fly ash bricks are Washery rejects used in in production of Power the production activity are utilized in various product and then in Ferro Alloys created from industrial Power Plant wastes verticals to creat
Slide 20: Strengthening Brand 'SEL'
Strengthening Brand ‘SEL’ TMT STRUCTURE WIRE RODS TMT are used for the construction of buildings, transmission Towards forward integration, SMEL has set up high towers, industrial sheds, structures, road, dam and in other Structural steel describes hot rolled steel products such quality Wire Rod man
Slide 21: Capacity Expansion –Share of High Value Products to Increase
Capacity Expansion –Share of High Value Products to Increase Break-up of Capacity Expansion (MTPA) 0.2 0.2 11.5 Capacity Expansion is on the existing land, will help 2.0 0.2 0.2 0.0 0.0 Company augment revenues, better cost controls, 1.1 increase in profitability 2.0 0.9 1.1 0.6 0.9 2.9 0.6 Target c
Slide 22: Revenue mix skewed towards Finished Steel
Revenue mix skewed towards Finished Steel Revenue Mix 19% 18% 16% 31% Flexibility to Sell Intermediate Product, use for 17% 23% Captive Consumption 15% 37% 25% 24% 19% 12% 11% 25% 27% 20% 24% 9% 11% 14% 2018 2019 2020 2021 Ferro Alloys TMT, Structural and Pipes Steel Billets Sponge Iron Iron Pellets
Slide 23: Q3 & 9M FY22 Financial Performance
Q3 & 9M FY22 Financial Performance
Slide 24: Performance Highlights
Performance Highlights Q3 FY22 Revenue EBITDA PAT 52% 77% 94% y-o-y y-o-y y-o-y Rs. 2,578 Rs. 625 Rs. 423 Crores Crores Crores 9M FY22 Revenue EBITDA PAT 91% 153% 183% Rs. 7,537 y-o-y Rs. 1,937 y-o-y Rs. 1,291 y-o-y Crores Crores Crores
Slide 25: Strong Q3 FY22 Performance
Strong Q3 FY22 Performance Revenue from Operations EBITDA Profit After Tax +52% +77% +95% Rs. 2,578 crores Rs. 625 crores Rs. 423 crores Revenue Breakup Volumes (in lakh tonnes) Blended EBITDA per tonne (Rs.) Y-o-Y -5% Y-o-Y 11.7% Q-o-Q 8.3 +40% 21.0% 0.4 7.7 -12% 0.4 7.4 17,008 Q-o-Q 1.8 0.4 -11% 1
Slide 26: Strong 9M FY22 Performance
Strong 9M FY22 Performance Revenue from Operations EBITDA Profit After Tax +91% +153% +183% Rs. 7,537 crores Rs. 1,937 crores Rs. 1,291 crores Revenue Breakup Volumes (in lakh tonnes) Blended EBITDA per tonne (Rs.) +86% 16.0% 24.0 17,021 20.3% 1.2 21.4 Ferro Products 1.0 5.7 Finished Steel 4.2 1.4 1
Slide 27: Per Tonne Realizations
Per Tonne Realizations Ferro Products Finished Steel Steel Billets +102% +71% +32% +37% +30% +45% 1,29,375 1,08,685 48,699 46,986 43,063 42,214 36,871 34,280 33,096 29,093 63,643 63,981 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Sponge Iron Iron P
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q 9M FY22 9M FY21 Y-o-Y Total Revenue 2,577.8 1,699.6 52% 2,494.3 3% 7,537.2 3,946.6 91% Cost of Material Consumed 1,640.6 1,052.3 1,534.6 4,665.6 2,437.4 Purchase of Stock 2.1 2.8 15.0 24.5 4.6 Change in I
Slide 29: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.) Net Debt (Rs. Crs.) 1,050 960 785 347 448 425 656 480 320 -757 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.19 0.18 0.12 0.50 0.48 0.31 -0.15 -0.58 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Ma
Slide 30: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.06x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to more than (as of 30th September 2021) Disciplined Capital Allocation strategy 50% reduction in Working capital requirements = One of Lowest Gearing amongst competito
Slide 31: CSR Initiatives
CSR Initiatives • Yearly Eye & Medical Camp for Villagers • Free Ambulance & Drinking water Services for villagers Rural Health • New Health Center & Homeopathy Clinic • FREE Medicine & Spectacles and Blood Donation Camp • FREE Coaching Center for Economic backward Section • Computer Training Center
Slide 32: Shyam Metalics & Energy Limited Investor Relations Partners
Shyam Metalics & Energy Limited Mr. Pankaj Harlalka +91 9830028142 pankaj.harlalka@shyammetalics.com Investor Relations Partners Mr. Rajesh Agrawal +91 9967491495 Rajesh.agrawal@linkintime.co.in Mr. Nachiket Kale Shyam Metalics & Energy Ltd. +91 9920940808 CIN No. : U40101WB2002PLC095491 Nachiket.ka
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