Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY2022 Earnings Presentation
33 slides from Sarda Energy & Minerals's earnings presentation, 2021
Slide 1: Result Presentation | Q1/FY22
Result Presentation | Q1/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 Q1FY22 - Key Highlights 2 SEML – De-risked and Diversified 3 Financial Performance 4 Corporate Social Responsibility 3
Slide 4: Q1FY22 | Key Highlights
an Q1FY22 | Key Highlights
Slide 5: Key Business Updates – Q1FY22
Key Business Updates – Q1FY22 Successfully navigated the second wave of Covid-19 with No Major Impact Q1FY22 performance underscores continued Growth and Resilient business operations Highest Ever Quarterly Revenue and Profits | Highest Ever Production of Iron Ore Pellet and Wire Rod Enhanced Pellet
Slide 6: With 113 MW SHP, Total Operational Hydro Power Capacity is up 4.8x
With 113 MW SHP, the Total Operational Hydro Power Capacity is up 4.8x… • The Ministry of Power (MoP) has recently issued a notification specifying Renewable Purchase Obligation (RPO) targets • Large hydropower projects having a capacity of more than 25 MW which achieved commercial operation after M
Slide 7: Likely to Provide a Significant Fillip to Annual Consolidated EBITDA
…Likely to Provide a Significant Fillip to Annual Consolidated EBITDA … EBITDA Bridge – FY21 (in INR Crore) • A quantum jump in EBITDA is likely, with the commissioning of the 113 MW SHP • Resulting in significant diversification of cash flow profile of the Company 7
Slide 8: Commence Repayment of Sikkim Hydro Debt from its Cash Flows
… And Commence Repayment of Sikkim Hydro Debt from its Cash Flows Debt Bridge – As on Jun 30, 2021 (in INR Crore) 947 1641 • Majority of the Total Debt is on account of the Sikkim Hydro project, repayment of which 96 would start now as per the 345 repayment schedule. 253 STANDALONE SMAL HYDRO - HYDR
Slide 9: Consolidated P&L – Highest Ever Quarterly Revenue and Profit
Consolidated P&L – Highest Ever Quarterly Revenue and Profit INR in Cr Q1FY22 Q1FY21 YoY Q4FY21 QoQ FY21 FY20 YoY Revenues 832 347 699 2,199 2,000 Other Income -2 38 42 144 -17 Total Income 830 386 115% 741 12% 2343 1,983 18% Raw Material 468 216 422 1,347 1,293 Employee Expenses 24 21 24 89 88 Othe
Slide 10: Standalone P&L - Highest Ever Quarterly Revenue and Profit
Standalone P&L - Highest Ever Quarterly Revenue and Profit INR in Cr Q1FY22 Q1FY21 YoY Q4FY21 QoQ FY21 FY20 YoY Revenues 619 231 551 1,595 1,424 Other Income -3 19 27 107 61 Total Income 616 251 146% 579 6% 1,702 1,485 15% Raw Material 351 148 338 974 920 Employee Expenses 18 17 18 68 68 Other Opera
Slide 11: Metals Segment - Firming Product Prices
Metals Segment - Firming Product Prices, Coupled With… Steel Segment: Product wise Incremental Realization Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,315 3,266 1,337 4,497 2,631 1,878 2,297 14,380 5,477 2,383 2,790 2,578 1,849 Value 2,450 3,867 12,375 3,092 RS. /MT 4,679 3,789 3,
Slide 12: Robust Volume Growth Across Products - Q1FY22
…Robust Volume Growth Across Products - Q1FY22 Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 65 209 52 158 46 144 25 77 23 19 3 6 Production Sales Production Sales Production Sales Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 44 6 6 36 36 6 38 5 27 27 22 1
Slide 13: Power Segment – Generation & Sales
Power Segment – Generation & Sales – Set to Increase with SHP Contribution Hydro Power – Total Operational Capacity 29.7 MW Thermal Power + Waste Heat – Total Capacity 163 MW (as of June 30, 2021) 264 20 20 187 18 18 11 15 GE NE RATION SAL E S GE NE RATION SAL E S Q1FY21 Q1FY22 Q1FY21 Q1FY22 Note: T
Slide 14: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Vertical Integration and Capacity Expansion Diversification: From Commodity to Green Energy Player • De-risked by adding annuity-like Revenue Stream (Hydro Power) • Recently won two Coal Mines – to reduce input costs • Commercialized a large s
Slide 15: SEML | De-Risked and Diversified
SEML | De-Risked and Diversified 15
Slide 16: Metal Business | Vertically Integrated Steel Player
Metal Business | Vertically Integrated Steel Player… Raw Material & Thermal Power (Captively procured key inputs, assures cost and quality control) Raw Material & Thermal Power Iron Ore Mine | Coal Mine | Thermal Power Intermediate / Finished Products (Flexibility to sell products across entire prod
Slide 17: Backed by Captive Resources, Driving Down Costs
… Backed by Captive Resources, Driving Down Costs Significantly Captive Iron Ore Mine Captive Thermal + Waste Heat Plants Recently won two Coal Mines (Total Capacity of 1.5 MMT p.a.) (Total capacity of 163 MW) (Total Capacity of 1.8 MMT p.a.) • Located at Rajnandgaon, Chhattisgarh, which is • Locate
Slide 18: Robust Presence Across Steel Products – Siltara Plant
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 19: 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 20: 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 Under determination Term of PPA 30 -year PPA with State Discom 3
Slide 21: 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 22: Financial Performance
Financial Performance 22
Slide 23: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 2,221 2,199 2,132 1,870 1,768 1,807 1,702 1,743 1,537 1,576 • Improving TOL/ NW ratio along 1,358 with strong liquidity position 1,223 1.45 • With additional cashflows post 1.26 1.14 commissioning of Sikkim Hydro 1.12 1.04 0.99
Slide 24: Consolidated P&L – Consistent Growth and High Profit Margins
Consolidated P&L – Consistent Growth and High Profit Margins INR in Cr FY17 FY18 FY19 FY20 FY21 Revenues 1,434 2,217 2,324 2,000 2,199 Other Income 67 70 17 -17 144 Total Income 1,502 2,287 2,341 1,983 2343 Raw Material 942 1,478 1,493 1,293 1,347 Employee Expenses 75 77 87 88 89 Other Operating Exp
Slide 25: Consolidated BS – Conservative Capital Structure
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr FY17 FY18 FY19 FY20 FY21 Share Capital 36 36 36 36 36 Tangible Networth 1,322 1,540 1,707 1,834 2,185 Minority Interest 83 88 132 100 101 Long Term Borrowings 936 998 1,078 1,436 1,500 Short Term Borrowings 348 3
Slide 26: Metal Segment - Robust Volume Growth – FY21
Metal Segment - Robust Volume Growth Across Products – FY21 Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 325 600 619 291 175 177 426 313 161 131 30 26 Production Sales Production Sales Production Sales Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 26 27 23
Slide 27: Power Segment - Highest Ever Hydro Power Generation – FY21
Power Segment - Highest Ever Hydro Power Generation – FY21 Thermal Power + Waste Heat – Total Capacity 163 MW Hydro Power – Total Operational Capacity 29.7 MW 129 129 999 964 115 115 142 103 G E NE RATION SAL E S GE NE RATION SAL E S FY20 FY21 FY20 FY21 Note: Thermal Power is largely consumed for ca
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility 28
Slide 29: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility (including minor) 43 21 23 15 3 3 CY14 CY16 CY17 CY18 CY19 CY20 29
Slide 30: 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: 67% given 1st dose and 33% given both doses 30
Slide 31: Responsible Corporate Citizen (1/2)
Responsible Corporate Citizen (1/2) Education: Enabling quality education in community Salary support to Teachers at Siltara & Mines area village schools; Reward to Meritorious students of 10th & 12th; Support to Educational Trust development; Support to Ekal Vidyalayas for education development of
Slide 32: Responsible Corporate Citizen (2/2)
Responsible Corporate Citizen (2/2) Education Health Infrastructure Livelihood Cultural 32
Slide 33: 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 33
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