Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q2 FY23 Earnings Presentation
39 slides from Shyam Metalics & Energy's earnings presentation, Nov 9, 2022
Slide 1: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation November 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 Q2 & H1 FY23
Key Updates for Q2 & H1 FY23 Strengthening Advertisements running with Salman Khan as Brand Brand Ambassador, new products gaining traction • On track to increase the existing integrated installed facility of 8.86 million tons to Update on Capex 14.45 million tons by 2025 • Pursuant to the direction
Slide 4: Strengthening Brand 'SEL'
Strengthening Brand ‘SEL’ STRUCTURE TMT 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 5: Capacity Across Iron Making, Liquid Steel and Finished Steel
Further expansion as Already Aggregate Further to be Aggregate Capacity Post approved on implemented implemented implemented as Particulars Unit capacity at the proposed in implementati 15th march after proposed capacities as per existing launch of IPO the IPO on capacity 2022 in IPO on 30th Sept ex
Slide 6: Company Overview
Company Overview
Slide 7: 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 8: Eminent Promoters & Management
Eminent Promoters & Management Mahabir Prasad Agarwal, Chairman Sanjay Kumar Agarwal, Joint Managing Director • An accomplished business leader and a first-generation • Holds a bachelor’s degree in commerce, with honours, from entrepreneur having more than 50 Years of experience University of Kolkat
Slide 9: Value Propositions
Value Propositions 1 2 3 4 5 Logistical Advantage Captive Power for Backward & Forward Flexible & Diversified Strong Brand & & Infrastructure Integration with ~82% power Product Mix Distribution Network Advantage with presence across the requirement Private Railway Sidings Value Chain 6 7 8 9 Capaci
Slide 10: 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 11: 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 8.86 MTPA comprising of intermediate and fi
Slide 12: Detailed Plant Wise Capacities – Existing
Detailed Plant Wise Capacities* – Existing Product –Wise Pandoli, Jamuria, Mangalpur, TOTAL Capacity (MTPA) Odisha West Bengal West Bengal (MTPA) Iron Pellets 1.8 1.8 3.6 Ferro Alloys 0.10 0.07 0.04 0.21 DRI 0.96 1.09 0.06 2.11 (Direct Reduced Iron) Billets 0.64 0.83 1.47 TMT, WDM, SRM 0.72 0.75 1.4
Slide 13: Current Capacities Across Steel Life Cycle
Current Capacities Across Steel Life Cycle Finished Steel 1.47 MTPA WRM 0.92 MTPA (Wire Rod & Wire Draw Mill) TMT 0.32 MTPA Iron Making Liquid Steel Structurals 0.20 MTPA DRI 2.11 MTPA SMS 1.47 MTPA (Direct Reduced Iron) (Steel Melting Shop) Pipe Mill 0.03 MTA 13
Slide 14: Foray into Aluminium Foil segment
Foray into Aluminium Foil segment Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand • Capacity: 40, 000 TPA • Plant installed by Achenback (Germany) a pioneer in the industry • Spread over 5 acres • Rolling range: 40 to 5 micron with annhealing capability, customised as per demand 14
Slide 15: …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 8.86 MTPA currently to 14.45 MTPA and captive power plants aggregate installed capacity from 267 MW to 357 MW. These pro
Slide 16: Diversified & Interchangeable Product Mix
Diversified & Interchangeable Product Mix Capacity (Million MTPA) FY19 FY20 FY21 FY22 H1 FY23 Iron Pellet 0.90 2.4 2.4 3.6 3.6 Sponge Iron 1.01 1.27 1.39 2.11 2.11 Billets 0.63 0.80 0.89 0.94 1.47 Existing Products TMT, Structural Steel, 1.47 0.25 0.82 0.82 0.90 Wire Rods & Pipes Ferro Alloys 0.21 0
Slide 17: 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 18: Huge Export Potential
Huge Export Potential 33% 52% 15% 7 Countries Exports to countries like Steel products both upstream and Ferro Chrome Aluminum Foil Products USA, Japan, Korea, Italy, downstream including Angles, Ferro Manganese and Nepal, Bangladesh Beams, Billets, Channels, Wire Rods, Silico Manganese Products MS
Slide 19: 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 20: 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 21: 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 22: Capacity Expansion – Share of High Value Products to Increase
Capacity Expansion –Share of High Value Products to Increase Break-up of Capacity Expansion (MTPA) 14.4 Capacity Expansion is on the existing land, will help Company augment revenues, better cost controls, 5.5 increase in profitability 8.9 Target completion between FY22 and FY25 0.2 0.2 2.0 0.2 Tota
Slide 23: Revenue mix skewed towards Finished Steel
Revenue mix skewed towards Finished Steel Revenue Mix 19% 18% 16% 17% 15% Flexibility to Sell Intermediate Product, use for 17% 23% Captive Consumption 37% 38% 41% 25% 24% 12% 8% 11% 9% 27% 20% 17% 18% 24% 18% 11% 14% 9% 2019 2020 2021 2022 H1 FY23 Ferro Alloys TMT, Structural and Pipes Steel Billet
Slide 24: Strategic Initiatives
Strategic Initiatives
Slide 25: IT Initiatives
IT Initiatives Data Traffic Data Knowledge Automation Integration Management Analytics & AI Partners Focus On High Value Easy Access Reduce TAT for vehicles Consistent Availability Activities Gate and Weighbridge Consistent Presentation Data Integrity Automation Decision Dashboards Real-time data lo
Slide 26: Impact of IT Initiatives
Impact of IT Initiatives Employee Skill Development People Agnostic ERP SAP S4 HANA Improved Business Performance Reduced Paper Assessment Documentation Digitisation Monitoring of Business Operational Operations Excellence Customer Satisfaction Enhanced ROI 26
Slide 27: Sustainable Development Goals
\, SUSTAINABLE s"% SHYAM " ay DEVELOPMENT Gé ‘ALS \ LNs 44 17 GOALS TO TRANSFORM OUR WORLD GOOD HEALTH AND WELL-BEING CLEAN WATER AND SANITATION y | CLIMATE 1 LIFE | UFE 1 PEACE, JUSTICE | PARTNERSHIPS ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS @ INSTITUTIONS SUSTAINABLE <> % GOALS 27
Slide 28: Q2 & H1 FY23 Financial Performance
Q2 & H1 FY23 Financial Performance
Slide 29: Performance Highlights
Performance Highlights Q2 FY23 Revenue EBITDA PAT 24% -61% -73% y-o-y y-o-y y-o-y Rs. 3,085 Rs. 243 Rs. 110 Crores Crores Crores H1 FY23 Revenue EBITDA PAT 27% -35% -39% y-o-y y-o-y y-o-y Rs. 6,308 Rs. 850 Rs. 525 Crores Crores Crores
Slide 30: Q2 FY23 Performance Highlights
Q2 FY23 Performance Highlights Revenue from Operations EBITDA Profit After Tax 24% -61% -74% Rs. 3,085 crores y-o-y Rs. 243 crores y-o-y Rs. 110 crores y-o-y Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y Y-o-Y 3.5% +28% 14.1% -18% 8.1% 5.3% 4.7 4.7 4.6 +3% Fe
Slide 31: H1 FY23 Performance Highlights
H1 FY23 Performance Highlights Revenue from Operations EBITDA Profit After Tax 27% -35% -39% Rs. 6,308 crores y-o-y Rs. 850 crores y-o-y Rs. 525 crores y-o-y Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y Y-o-Y +28% 2.7% 15.4% -20% 9.1% 4.7% 9.4 9.3 Ferro Prod
Slide 32: Per Tonne Realizations
Per Tonne Realizations Ferro Products Finished Steel Steel Billets Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q -5% -18.3% +9% +18% -6.8% +21% +17% -4.4% +19% 1,18,619 99,057 1,07,799 57,743 53,811 55,744 50,770 48,528 49,584 1,02,550 96,957 45,730 46,012 41,533 41,778 Q2 FY22 Q1 FY23 Q2 FY23 H1 FY22 H1 FY23
Slide 33: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q2FY23 Q2 FY22 Y-o-Y Q1 FY22 Q-o-Q H1 FY23 H1 FY22 Y-o-Y Revenue from Operations 3,085.2 2,494.3 23.7% 3,223.2 -4.3% 6,308.4 4,959.4 27.2% Cost of Material Consumed 2314.35 1,534.6 1,996.5 4,310.8 3,025.0 Purchase of Stock 17.21 15.0 98.5 1
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crs.) Sep-22 Mar-22 Particulars (Rs. Crs.) Sep-22 Mar-22 ASSETS Equity Non ‐ Current Assets Equity Share Capital 255.1 255.1 a) Property, Plant and Equipment 2,572.2 2,383.5 Other Equity 6,571.2 5,579.6 Total Equity 6,826.3 5,834.7 b) Right-of-use assets 7
Slide 35: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.)* Net Debt (Rs. Crs.) 1,050 960 785 841 448 656 246 534 -477 -778 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.18 0.48 0.18 0.07 -0.18 -0.08 -0.11 -0.95 Mar-19 Mar-20 Mar-21 Mar-22 Sep-2
Slide 36: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.12x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to significant (as of 30th Sept 2022) Disciplined Capital Allocation strategy reduction in Working capital requirements = One of Lowest Gearing amongst competitors* Bet
Slide 37: 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 38: CSR Initiatives
CSR Initiatives • Water Conservation- Check dam, Pond , landscaping, Plantation, • Promotion of solar Light Sustainability • Solar irrigation Pumps • Promotion of Organic Farming • Running sewing center, computer training center • Alternate source of income via enterprise development, skill Skill de
Slide 39: Shyam Metalics & Energy Limited Investor Relations Partners
Shyam Metalics & Energy Limited Mr. Trilochan Sharma +91 9831298290 trilochan.sharma@shyammetalics.com Ms. Maumita Dhar +91 9903568990 Maumita.dhar@shyammetalics.com Investor Relations Partners Mr. Nachiket Kale +91 9920940808 Nachiket.kale@linkintime.co.in Mr. Rajesh Agrawal +91 9967491495 Shyam Me
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