Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q2 FY2025 Earnings Presentation
39 slides from Sarda Energy & Minerals's earnings presentation, November 2024
Slide 1: Expanding Horizons of Growth
Expanding Horizons of Growth Iron Ore | Coal | Thermal Power | Hydro Power | Steel | Ferro Investor Presentation | Q2FY25
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 Content
Table of Content Sustainable Growth Strategy Q2 & H1FY25 - Key Highlights SEML – Beyond Steel Corporate Social Responsibility Historical Financials 3
Slide 4: Building Blocks for Sustainable Growth
Building Blocks - for Sustainable Growth ₹ Vertical Integration Diversification Financial Prowess Strong Focus on ESG For business sustainability To Reduce Input Costs and Marks a Promising Outlook Building a Legacy of and to capitalize on Ensure Consistent Supply For Growth Responsibility emerging
Slide 5: Vertical Integration and Diversification
Vertical Integration and Diversification Expanding Horizons of Growth Backward Integration Minerals Energy Metals • Iron Ore Mine • Captive Use • Steel Products (Long) • Coal Mine Waste Heat + Solar* + Thermal • Ferro Alloys • Commercial Use Thermal + Hydro Forward Integration Acquired SKS Power whi
Slide 6: Minerals (Iron Ore) - Captive Use in Steel Manufacturing
1. Minerals (Iron Ore) - Captive Use in Steel Manufacturing; Continuing Expansion Operational Capacity Upcoming Capacity 1 Block 1 Block The horizon of growth… Rajnandgaon, Chhattisgarh Unexplored block at Surjagad-1, Maharashtra We recently achieved a significant milestone in Meets ~40% of the capt
Slide 7: Minerals (Coal) - Captive Use in Thermal Power Plants
1. Minerals (Coal) - Captive Use in Thermal Power Plants; Continuing Expansion Operational Capacity Upcoming Capacity 1.68 MTPA, Gare Palma IV/7 1.8 MTPA - 5.2 MTPA, Gare Palma IV/7 The horizon of growth… Expected capacity of 1.8 MTPA after Received consent to operate (CTO) for We are set to enhance
Slide 8: Energy (Captive Use) - Meets 100% of Power Requirement
2. Energy (Captive Use) - Meets 100% of in-house Power Requirement Thermal Power Solar Power Operational Capacity Upcoming 2*300 MW Capacity The horizon of growth… 81.5 MW 50 MW, Chhattisgarh Chhattisgarh We are developing a 50 MW Solar Power Plant in Work is progressing as per Siltara Plant (60 MW
Slide 9: Energy (Commercial) - Acquired SKS Power
2. Energy (Commercial) - Acquired SKS Power having 2x300 MW of Thermal Capacity Operational Capacity 2x300 MW, Chhattisgarh The horizon of growth… 13-Aug-2024: NCLT approved the resolution plan of SEML for SKS Power Generation The acquisition of SKS Power marks a major (Chhattisgarh) Ltd (SKS) under
Slide 10: Energy (Commercial) - Operational Hydro Power Assets of ~142 MW
2. Energy (Commercial) - Operational Hydro Power Assets of ~142 MW Operational Capacity Upcoming Capacity 4.8 MW, Sarju, Uttarakhand 24.9 MW, Rehar, Chhattisgarh The horizon of growth… Installation completed. Ready for 24 MW, Gullu, Chhattisgarh operations The 24.9 MW plant on the Rehar River in Chh
Slide 11: Metals | Stable, Fully-integrated Business
3. Metals | Stable, Fully-integrated Business Steel Ferro Alloys Pellets - 9 lac MT Vishakhapatnam (SMAL) - Exports The horizon of growth… 25-30% - Captive Consumption 2*33 MVA Cost reduction and carbon footprint mitigation 1*36 MVA Sponge Iron - 3.6 lac MT initiatives like the Mineral Fiber Project
Slide 12: Financial Prowess Marks a Promising Outlook for Growth
Financial Prowess Marks a Promising Outlook for Growth Standalone Debt (Rs Cr) Consolidated Debt (Rs Cr) Consolidated Ratios (x) Gross Debt Net Debt Gross Debt Net Debt Net Debt/EBITDA TOL/NW 1,459 Comfortable liquidity 2,875 0.90* 212 0.71 supported by strong internal 134 0.52 1,366 1,312 cash gene
Slide 13: Strong Focus on ESG
Strong Focus on ESG Hydro Power • Existing Hydropower portfolio of ~142 MW and another 24.9 MW Rehar Hydropower plant is ready for operations. • Few more small hydropower projects are under different stages of approval. Waste Heat Power • Existing 21.5 MW of Waste Heat Power generation. Solar Power
Slide 14: Q2 & H1FY25 Highlights
SARDA SARDA ENERGY & MINERALS LTD.
Slide 15: Consolidated - Performance Highlights
Consolidated - Performance Highlights On August 21, 2024, the Company completed acquisition of SKS Power Generation (Chhattisgarh) Limited (SKS) under Corporate Insolvency and Resolution Process of the Insolvency and Bankruptcy Code, 2016. SKS is having a 2 x 300 MW thermal power plant in Chhattisga
Slide 16: Production Trend
Production Trend Production (‘000 MT) Q2FY25 Q2FY24 YoY Change Q1FY25 QoQ Change H1FY25 H1FY24 YoY Change Iron Ore Pellet 214 164 31% 210 2% 425 391 9% Sponge Iron 82 74 10% 81 1% 162 162 0% Steel Billet 58 54 6% 46 25% 104 114 -9% Wire Rod 49 44 13% 40 24% 89 93 -5% H. B Wires 9 10 -15% 9 -2% 18 20
Slide 17: Sales Trend
Sales Trend Sales (‘000 MT) Q2FY25 Q2FY24 YoY Change Q1FY25 QoQ Change H1FY25 H1FY24 YoY Change Iron Ore Pellet 132 107 23% 128 3% 260 259 1% Sponge Iron 25 22 11% 35 -29% 60 55 8% Steel Billet 7 9 -21% 5 47% 12 18 -31% Wire Rod 40 33 21% 31 26% 71 72 -2% H. B Wires 8 9 -8% 9 -15% 17 18 -6% Ferro Al
Slide 18: Price Trend
Price Trend Steel Products’ Price Trend 2,365 2,786 2,707 3,994 3,243 3,806 2,162 2,849 3,595 4,071 15,059 15,125 14,999 13,370 13,822 Value Addition 19,041 16,748 16,716 18,028 15,522 8,925 9,470 9,460 9,634 9,151 Realization Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Iron Ore Pellet Sponge Iron Steel Bill
Slide 19: Consolidated P&L Highlights
Consolidated P&L Highlights Particulars (Rs Cr) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY Revenue from Operations 1,159 1,001 16% 926 25% 2,085 2,053 2% Other Income 56 24 75 131 107 Total Income 1,214 1,025 18% 1,001 21% 2,215 2,160 3% Raw Material 619 591 496 1,115 1,270 Employee Expenses 41
Slide 20: Standalone P&L Highlights
Standalone P&L Highlights Particulars (Rs Cr) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY Revenue from Operations 763 646 18% 662 15% 1,424 1,406 1% Other Income 35 37 63 98 117 Total Income 797 683 17% 725 10% 1,522 1,524 -0.1% Raw Material 434 437 364 797 954 Employee Expenses 31 26 28 58 52 Ot
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Consolidated Standalone Consolidated Standalone Liabilities (Rs Cr) Assets (Rs Cr) Mar-24 Sep-24 Mar-24 Sep-24 Mar-24 Sep-24 Mar-24 Sep-24 Shareholder’s Funds 3,889 5,928 3,516 5,458 Non-current Assets 3,377 6,732 1,696 5,005 Share Capital 35 35 35 35 Property, Plant & Equip
Slide 22: SEML | Beyond Steel
SARDA SARDA ENERGY & MINERALS LTD.
Slide 23: Robust and Diversified Business Model with Strategically Located Assets
Robust and Diversified Business Model with Strategically Located Assets… With a robust presence spanning Minerals, Energy, and Metals, we are strategically positioned to capitalize on the emerging opportunities, particularly in Energy Sector Minerals Energy Metals Iron Ore Coal Thermal Hydro Solar S
Slide 24: Built Over Five Decades of Excellence
…Built Over Five Decades of Excellence Continued expansion of capacities across Steel and Ferro Products 4.8 MW Hydro power 113 MW Sikkim Hydro Power plant plant commissioned in commissioned in Jun-21 Company started 24 2008-09 Gare Palma IV/7 Coal Mine MW captive power Pellet plant comm
Slide 25: Well-Experienced and Strong Leadership Team at the Helm
Well-Experienced and Strong Leadership Team at the Helm Kamal Kishore Sarda Pankaj Sarda Padam Kumar Jain Manish Sarda Neeraj Sarda CMD Joint MD Director & CFO DMD, SMAL DMD, SMAL Mechanical Engineer with 47 Mechanical Engineer with 19 CA, CS with a rich experience MBA in International Business MBA
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility
Slide 27: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility 01 02 03 Health & Safety No. of Incidents Social Responsibility • SEML awarded - Appreciation Award for • Incident rate (including minor injuries) has • Adopted 50 single-teacher schools in the Best Company in the Entire Eastern Region seen a declining
Slide 28: Education, Culture and Arts
Education, Culture and Arts Supported Parivaar Education Trust for Shiksha Kutir Project Promoted the art and culture of Chhattisgarh at the Chakradhar Samaroh in Raigarh. Supported R.K. Sarda Trust for Education development. Renovated School Boundary Wall at Mandhar Teachers in government
Slide 29: Healthcare and Infrastructure
Healthcare and Infrastructure Donated a mobile Van for the Netra Sahayta Program of Shri Ganesh Supplied eco-friendly bricks to Kurra Panchayat for garden Vinayak Foundation. development next to the school Provided a mobile medical van with free medicines. Supplied eco-friendly bricks to Sil
Slide 30: Livelihood, Environmental & Economic Sustainability
Livelihood, Environmental & Economic Sustainability Promoted mushroom cultivation for income generation Supported marriage of girls from underprivileged families. Started Costume Jewellery training at Siltara Organized Sewing Training for IGP Promotion of SHG’s. Awareness session on Kitche
Slide 31: Historical Financials
SARDA SARDA ENERGY & MINERALS LTD.
Slide 32: Consolidated P&L – Consistent Growth with High Profit Margins
Consolidated P&L – Consistent Growth with High Profit Margins Particular (Rs Cr) FY19 FY20 FY21 FY22 FY23 FY24 Revenues 2,324 2,000 2,199 3,914 4,212 3,868 Other Income 17 -17 144 50 49 184 Total Income 2,341 1,983 2,343 3,964 4,261 4,052 Raw Material 1,493 1,293 1,347 2,086 2,495 2,407 Employee Exp
Slide 33: Consolidated BS – Conservative Capital Structure and Strong Liquidity
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile Particular (Rs Cr) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Capital 36 36 36 35 35 Tangible Networth 1,834 2,182 2,968 3,375 3,853 Minority Interest 100 101 104 100 106 Long Term Borrowings 1,408 1,493 1,196 1,063 1,058 Sh
Slide 34: Yearly Trend | Production and Sales (1/2)
Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet 228 229 Production 800 810 325 192 741 316 175 177 600 600 619 157 302 291 294 290 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 488 522 517 161 33 33 438 148 30 31 426 131
Slide 35: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys Production 190 193 39 38 200 161 32 159 164 142 147 145 132 119 23 26 124 21 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 151 154 40 38 195 118 121 127 32 158 157 27 139 123 135 S
Slide 36: Yearly Trend | Power Generation & Sales
Yearly Trend | Power Generation & Sales Thermal Power Hydro Power 1,262 532 494 479 1,076 1,079 1,083 452 999 964 423 423 115 115 129 129 173 85 85 142 103 76 71 81 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22** FY23 FY24 Generation Sales Generation Sales* *Includes only the contractual power s
Slide 37: Details of Existing Hydropower Assets of ~142 MW
Details of Existing Hydropower Assets of ~142 MW Capacity 4.8 MW 24 MW 113 MW Annuity-like Revenue (Rs Cr) with high EBITDA Margin (%) Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu 88% 85% Year of 73% 71% 2008 2017 2021 70% Commissioning Final tariff under Tariff R
Slide 38: Share Price Information
Share Price Information BSE 150 MidCap Sarda Energy & Minerals NSE 150 Midcap Price chart base to 100 250 213 200 150 137 136 100 50 - Nov-23 Dec-23 Dec-23 Jan-24 Feb-24 Feb-24 Mar-24 Apr-24 Apr-24 May-24 Jun-24 Jul-24 Jul-24 Aug-24 Sep-24 Sep-24 Oct-24 Nov-24 Capital Market Information (as on 14-No
Slide 39: Thank You
THANK YOU Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma / Ms. Vinita Pandya njoshi@seml.co.in pooja.sharma@stellar-ir.com / vinita@stellar-ir.com 125 B-Wing Mittal Court, Nariman Point, Mumbai 400 021 A-405, Kanakia Wall Street, Andheri (East), Mumbai 400 093 www.seml.co.in www.stellar
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