Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q3 FY2024 Earnings Presentation
40 slides from Shyam Metalics & Energy's earnings presentation, Jan 30, 2024
Slide 1: Cover letter to stock exchanges
TM ORE TO METAL SM EL/SE/ 2023-24/94 January 30, 2024 The Secretary, The Manager - Listing Department Listing Department, BSE Limited National Stock Exchange of India Limited I Phiroze Jeejeebhoy Towers, "Exchange Plaza", 5th Floor, Plot No. C/1, G-Block, Dalal Street, Mumbai 400 001 Bandra-Kurla Co
Slide 2: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation January 2024
Slide 3: 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 4: Company Overview
Company Overview
Slide 5: Shyam Metalics at a Glance
Shyam Metalics at a Glance • 6th Largest Integrated Steel Producer & amongst the largest 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, Na
Slide 6: 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 7: Value Propositions
Value Propositions 1 2 3 4 5 Private Railway Sidings Captive Power for Backward Integration Diversified Strong Brand & Advantage for & Forward Integration Product Mix: Scaling ~77% power Distribution Network Seamless Logistics with presence across up stainless steel & requirement the Value Chain alu
Slide 8: Key Updates for Q3 FY24
Key Updates for Q3 FY24 • Successful completion of the acquisition of Mittal Corp Limited by wholly-owned subsidiary, Shyam Sel and Power Limited positioning the company as a comprehensive solution provider for stainless steel requirements Capex & Operational • Capex incurred till 9M FY24: Rs. 4,334
Slide 9: Driving Integration of Multi-Product Metals Portfolio
Driving Integration of Multi-Product Metals Portfolio Prospective License for Iron Ore Mine: Multiple Sale Points across Maharashtra Backward the Value Chain Integration Railway siding Greater Control on Operating Margins 357 MW CPP Flexibility to alter Product Renewables – Captive Solar Mix Energy
Slide 10: Expansion with strong focus on value added products
Expansion with strong focus on value added products Integration has enabled greater control on the operating margins Capacity (MTPA) FY21 FY22 FY23 9M FY24 Post Expansion Capacity (MTPA) Post Expansion Iron Pellet 2.40 3.60 4.80 6.00 6.00 Beneficiation 3.0 Sponge Iron 1.39 2.11 2.54 2.90 4.10 Coke O
Slide 11: Capacity Expansion through Inorganic Route – Ramsarup Industries
Capacity Expansion through Inorganic Route – Ramsarup Industries Engaged in manufacturing wires, TMT Bars and steel, acquired for Rs 380 cr out of which we paid Rs 228 cr for 60% stake Shyam Super Metalics & 60% Ramsarup 40% Smelters Ltd Energy Ltd Industries First Capex Infusion in Ramsarup Industr
Slide 12: Forays into Stainless Steel through Acquisition of Mittal Corp
Forays into Stainless Steel (SS) through Acquisition of Mittal Corp Mittal Corp Industries Overview Capex Infusion in Ramsarup Industries 1.67 0.2 Leader Leading Player in Stainless Steel Flats (200 series Shyam Metalics has forayed and 400 Series) in India 0.5 into stainless steel through acquisiti
Slide 13: Aluminium Foil Plant
Aluminium Foil Plant Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand One of the largest aluminium Plant installed by Achenback foil manufacturer in India, (Germany), an industry plant spread over 5 acres pioneer Kickstarted and stabilised More than 60% of the plant operations in product
Slide 14: Greenfield Expansion
Business Update: Greenfield Expansion- Cold Rolling Mill Capacity Capex Incurred Rs. 207 cr Greenfield Expansion Phase I 2,50,000 Ton Capex Pending Rs. 396 cr Phase II 1,50,000 Ton Total Capex Rs. 603 Cr • To setup a greenfield project for a cold rolling mill spread over 94 acres of land at Jamuria,
Slide 15: Current Projects Overview
, hy M14 YT) She Angi "led i ‘| he Current Projects Overview
Slide 16: Projects Pending Installation and Status of Cost Incurred of Carbon Steel
Projects Pending Installation and Status of Cost Incurred of Carbon Steel Capacities to be Capacity Budgeted Capex Capex incurred till Pending Capex Commissioned (Million MTPA) (Rs. Cr) 31st Dec (Rs Cr) (Rs Cr) (in Mn Tonnes) Benefication Plant 3.0 300 - 300 Sponge Iron 1.20 425 49 376 Blast Furnace
Slide 17: Projects Pending Installation and Status of Cost Incurred for Others
Projects Pending Installation and Status of Cost Incurred for Others Capacities to be Capacity Budgeted Capex Capex incurred till Pending Capex Commissioned (Million MTPA) (Rs. Cr) 31st Dec (Rs Cr) (Rs Cr) (in Mn Tonnes) Billet Stainless Steel 0.13 130 21 109 Billet Slabs for Flat products 0.5 220 -
Slide 18: Current Capacities Across Carbon Steel Life Cycle
Current Capacities Across Carbon Steel Life Cycle Finished Steel 2.07 MTPA WRM 0.92 MTPA (Wire Rod & Wire Draw Mill) TMT 0.92 MTPA Iron Making Liquid Steel Structurals 0.20 MTPA DRI 2.90 MTPA SMS 2.01 MTPA (Direct Reduced Iron) (Steel Melting Shop) Pipe Mill 0.03 MTA 17
Slide 19: Higher Contribution of Finished Steel Products
Higher Contribution of Finished Steel Products Revenue Mix Volumes (in lakh tonnes) 17% 23% 32.0 33.3 31.2 37% 38% 25% 6.1 7.6 11.2 26.2 24% 48% 48% 23.2 12% 20.8 5.7 8% 2.9 8.1 9.5 1.9 1.7 27% 20% 11% 17% 8.1 8% 5% 8.8 1.6 16% 10.2 1.8 7.2 17% 15% 18% 1.5 19% 18% 1.5 17.7 14.7 1.3 24% 15% 13% 9.9 1
Slide 20: Export Opportunities
Export Opportunities 41% 41% 18% 17 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 21: Q3 & 9M FY24 Financial Performance
Q3 & 9M FY24 Financial Performance
Slide 22: Performance Highlights
Performance Highlights Q3 FY24 Operating EBITDA Revenue Rs. 407 83% PAT y-o-y Crores Rs. 3,315 14% EBITDA Rs. 126 94% 72% Crores y-o-y Rs. 447 y-o-y Crores* y-o-y Crores 9M FY24 Operating EBITDA Revenue Rs. 1,128 5% PAT y-o-y Crores Rs. 9,589 4% EBITDA Rs. 810 37% 7% Crores y-o-y Rs. 1,236 y-o-y Cro
Slide 23: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY23 Y-o-Y Revenue from Operations 3,315.3 2,921.7 13.5% 2,940.7 12.7% 9,589.0 9,230.1 3.9% Cost of Material Consumed 2,505.0 2,080.3 2,159.7 7,097.8 6,391.2 Purchases of stock in trade 0.02 17
Slide 24: Q3 FY24 Performance Highlights
Q3 FY24 Performance Highlights Revenue from Operations Operating EBITDA EBITDA Profit After Tax Rs. 3,315 crores Rs. 407 crores Rs. 447 crores Rs. 126 crores* Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup 0.2 Steel Products 0.8% 0.04 Aluminum Foil Y-o-Y 9.8% 4.1% 5.2% +32% 6.5% 0
Slide 25: 9M FY24 Performance Highlights
9M FY24 Performance Highlights Revenue from Operations Operating EBITDA EBITDA Profit After Tax Rs. 9,589 crores Rs. 1,128 crores Rs. 1,236 crores Rs. 810 crores Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products 0.5 3.6% Y-o-Y 5.0% 12.6% 0.1 Aluminium Foil +18% 1.8% 7.
Slide 26: Per Tonne Realizations
Per Tonne Realizations Speciality Alloys Finished Steel Steel Billets Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q +6% +2% -7% -7% -2% -10% -9% -3% -11% 89,884 93,674 95,583 1,01,879 50,458 47,490 53,614 44,791 42,070 48,067 95,248 46,756 48,241 40,710 42,762 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q
Slide 27: Strong Debt Profile
Strong Debt Profile Gross Debt* (Rs. Crs.) Net Debt^ (Rs. Crs.) 1,721 960 448 1,050 246 247 951 785 656 534 -477 -562 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.18 0.07 0.48 0.04 0.34 0.18 -0.08 -0.18 Mar-19 Mar
Slide 28: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth Conservatively Leveraged Internal Operating Efficiency led to significant reduction in + Disciplined Capital Allocation strategy Working capital requirements = Better Return Metrics Working Capital (days) Return ratios (%) Working ROCE Capital days 24 44
Slide 29: Annexure
Annexure
Slide 30: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Raw Material Close Proximity to Raw Material Sources are Jamuria Plant within 250 kms + Strong Logistics Infrastructure Sambalpur Plant = Kolkata Lower Logistics Cost Haldia Dhamra Paradeep Proximity to ports enables Company to export products in a
Slide 31: 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 13.1 MTPA comprising of intermediate and fi
Slide 32: 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 33: 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 3 3 6 Speciality Alloys 0.11 0.07 0.04 0.22 DRI 1.32 1.52 0.06 2.9 (Direct Reduced Iron) Billets 0.87 1.14 2.01 TMT, WDM, SRM 0.92 1.15 2.07 Cap
Slide 34: Detailed Plant Wise Capacities – Post Expansion: Carbon Steel
Detailed Plant Wise Capacities – Post Expansion : Carbon Steel Product –Wise Capacity Sambalpur Jamuria Mangalpur Kharagpur TOTAL (MTPA) Odisha West Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Speciality Alloys 0.11 0.07 0.06 0.24 DRI (Direct Reduced Iron) 1.95 1.95 0.06 0.15 4.1 Pig Ir
Slide 35: Detailed Plant Wise Capacities – Existing & Post Expansion: Stainless Steel
Detailed Plant Wise Capacities – Existing & Post Expansion : Stainless Steel Product –Wise Sambalpur Pitampura TOTAL Capacity (MTPA) Odisha Madhya Pradesh (MTPA) Stainless CR 0.2 0.2 Stainless HR 0.5 0.5 Stainless 0.15 0.07 0.22 Billets 0.13 0.12 0.25 Slabs 0.5 0.5 - to be commissioned - existing -
Slide 36: Our Strategy Going Forward
Our Strategy Going Forward 03 01 05 Geographical Expansions in newer states with focus on Shift Towards Value branding and increased Reducing Carbon Added Products margins Footprint and focus on portfolio by identifying sustainability different products in Build market leading Continuously work on s
Slide 37: Energy Cost through Captive Power: ~77%
Energy Cost through Captive Power: ~ 77% • Power consumed by the plants are primarily produced in-house by the captive 5 Turbines power plants Sambhalpur Total Capacity of 158 MW • Captive power plants utilise non fossil fuels such as waste, rejects, heat and gas 4 Turbines generated from the operat
Slide 38: 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 39: CSR Initiatives
CSR Initiatives • Water Conservation- Check dam, • Yearly Eye & Medical Camp for Pond , landscaping, Plantation, Villagers, FREE Medicine & Spectacles • Promotion of solar Light Rural Health • Free Ambulance & Drinking water Sustainability Services for villagers • Solar irrigation Pumps • New Health
Slide 40: Investor Relations Contacts
Shyam Metalics & Energy Limited Mr. Pankaj Harlalka +91 9831298290 pankaj.harlalka@shyammetalics.com Ms. Maumita Dhar +91 9903568990 maumita.dhar@shyammetalics.com Investor Relations Partners Mrs. Akashi Modi +91 9619896128 akashi.modi@linkintime.co.in Mr. Sumeet Khaitan +91 7021320701 Shyam Metalic
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