Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY2025 Earnings Presentation
43 slides from Sarda Energy & Minerals's earnings presentation, August 2024
Slide 1: Result Presentation Q1FY25 – Sarda Energy & Minerals Limited
Result Presentation | Q1FY25 Sarda Energy & Minerals Limited ‘It’s Energy and Minerals, Not Only Steel’
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 Sustainable Growth Strategy 2 Q1FY25 - Key Highlights g 3 SEML – Beyond Steel . 4 Corporate Social Responsibility 5 Historical Financials g h ‘It’s Energy and Minerals, Not Only Steel’ 3
Slide 4: Sustainable Growth Strategy
Sustainable Growth Strategy
Slide 5: Building Blocks for Sustainable Growth
Building Blocks - for Sustainable Growth Backward Integration Diversification Strong Focus on ESG To Reduce Input Costs and Ensure To Reduce Cyclicality Responsible Corporate Citizen Consistent Supply ₹ Financial Prowess Capacity Expansion Augurs Well for Growth To Support Growth ‘It’s Energy and Mi
Slide 6: Creating Competencies Beyond Metals
Creating Competencies Beyond Metals… Minerals Energy Metals (Iron Ore and Coal) (Thermal, Hydro, Solar) (Steel and Ferro) IRON ORE MINE THERMAL POWER STEEL PRODUCTS *** ▪ Captive: Rajnandgaon, Chhattisgarh ▪ 81.5 MW at Siltara Plant, for captive use ▪ Pellets: 9 lac MT (1.5 MMT p.a.) ▪ 80 MW at Viza
Slide 7: Well-Diversified Cashflow Profile of the Company
… Leading to a Well-Diversified Cashflow Profile of the Company Operating EBITDA Bridge (INR Cr) – Q1FY25 Spread across Cyclical and Non-Cyclical business streams ‘It’s Energy and Minerals, Not Only Steel’ 7
Slide 8: Improvement in Debt Profile and Credit Rating
Improvement in Debt Profile and Credit Rating Standalone (INR Cr) Gross Debt Net Debt* SEML - Credit Ratings – Upward Trajectory 391 345 270 174 171 139 134 (127) (313) (903) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Gross Debt Net Debt* Oct 17, 2023 Consolidated (INR Cr) 1,687 1,714 1,581 1,383 1,401 1,40
Slide 9: Augmenting Capacity to Foster Growth
Augmenting Capacity to Foster Growth Minerals Energy ➢ Gare Palma IV/7 Coal Mine Chhattisgarh: Capacity enhanced from ➢ Hydro Power: 24.9 MW plant on the Rehar river in Chhattisgarh-Expected 1.2 MTPA to 1.44 MTPA in May-23, and increasing further to 1.68 to achieve CoD in CY2024 MTPA during the curr
Slide 10: Strong Focus on ESG
Strong Focus on ESG Hydro Power • Existing Hydropower portfolio of 141.8 MW and another 24.9 MW Rehar Hydropower plant nearing completion expected to achieve COD in CY24. • Few more small hydropower projects are under different stages of approval. Waste Heat Power • Existing 21.5 MW of Waste Heat Po
Slide 11: Q1FY25 Key Highlights
Y SARDA ENERGY & MINERALS LTD. Q1FY25 | Key Highlights
Slide 12: Key Financial Highlights (Consolidated)
Key Financial Highlights (Consolidated) Revenue EBITDA PAT Operating EBITDA Rs 926 Cr Rs 336 Cr Rs 198 Cr Rs 261 Cr -12% YoY 13% YoY 15% YoY 26% YoY 4% QoQ 72% QoQ 125% QoQ 61% QoQ Operational Performance ‘It’s Energy and Minerals, Not Only Steel’ 12
Slide 13: Consolidated P&L Highlights
Consolidated P&L Highlights INR in Cr Q1FY25 Q1FY24 YoY Q4FY24 QoQ FY24 FY23 YoY Revenue from Operations 926 1052 -12% 889 4% 3,868 4,212 -8% Other Income 75 83 43 184 49 Total Income 1,001 1,135 -12% 933 7% 4,052 4,261 -5% Raw Material 496 679 571 2,407 2,495 Employee Expenses 38 35 34 142 127 Othe
Slide 14: Standalone P&L Highlights
Standalone P&L Highlights INR in Cr Q1FY25 Q1FY24 YoY Q4FY24 QoQ FY24 FY23 YoY Revenue from Operations 662 760 -13% 670 -1% 2,733 3,020 -10% Other Income 63 80 30 185 87 Total Income 725 840 -14% 700 4% 2,919 3,108 -6% Raw Material 364 517 425 1,792 1,789 Employee Expenses 28 26 25 106 95 Other Oper
Slide 15: Steel Segment – Price Trend
Steel Segment – Price Trend Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,784 1,818 4,136 2,456 4,897 3,201 2,883 4,181 2,365 2,786 3,602 4,037 2,677 3,243 2,162 3,994 3,836 18,124 3,595 INR / MT 15,340 16,141 15,307 17,098 15,059 15,125 14,999 13,370 Value Addition 22,135 24,304 20
Slide 16: Production & Sales Trend (1/2)
Production & Sales Trend (1/2) Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 226 88 210 81 59 195 78 54 Production 46 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 33 35 151 30 128 128 8
Slide 17: Production & Sales Trend (2/2)
Production & Sales Trend (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 50 10 51 47 9 9 47 47 Production 40 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 40 39 10 9 9 46 46 46 31 Sales Q1FY24 Q4FY24
Slide 18: Power Segment - Generation & Sales Trend
Power Segment - Generation & Sales Trend Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~141.8 MW Generation (Mn Kwh) Generation (Mn Kwh) 314 308 289 101 87 26 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25* Sales (Mn Kwh) Sales (Mn Kwh) 93 24 81 17 16 24 Q1F
Slide 19: SEML | Beyond Steel
Y SARDA ENERGY & MINERALS LTD. SEML | Beyond Steel
Slide 20: Robust and Diversified Business Model
Robust and Diversified Business Model Adding Value through Minerals and Energy MINERALS ENERGY METALS ✓ Iron Ore mine and Coal Mines provide long term ✓ To de-risk from the cyclicality of Metals business, ✓ Vast experience of 50 years in Steel Manufacturing stability of raw materials & energy. SEML
Slide 21: Strategically Located Assets
Strategically Located Assets – Proximity to Raw Materials and End Users… Steel and Ferro plant at Siltara, Chhattisgarh Pellets (9 lac MT), Sponge Iron (3.6 lac MT), Billets (3 lac MT), Wire Rod (2.5 lac MT), H.B. Wire (45K MT) and Ferro Alloys (45 MVA), backed by Coal based Thermal Power (60 MW) an
Slide 22: Built Over Five Decades of Excellence
…Built Over Five Decades of Excellence ▪ Billet capacity increased by 50% ▪ Pellet capacity increased by 33% in FY21 ▪ 4.8 MW Hydro power ▪ 113 MW Sikkim Hydro Power plant commissioned in plant commissioned in Jun-21 ▪ Company started 24 2008-09 ▪ Gare Palma IV/7 Coal Mine commissioned in Dec-21 MW
Slide 23: Well-Experienced and Strong Leadership at the Helm
Well-Experienced and Strong Leadership 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 • Mechanical Engineer with • CA, CS with a rich 47 years experience in 19 years experience in • MB
Slide 24: Business Segments
SARDA SARDA ENERGY & MINERALS LTD. Business Segments
Slide 25: Metals: Robust Presence Across Steel Products
Metals: Well-Established, Robust Presence Across Steel Products… Pellets Sponge Iron Billets Wire Rods HB Wires Semi finished steel product Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Produced from captive Iron Description fines & sold domestically Ore Lumps & Pellets prod
Slide 26: Leading Manufacturer and Exporter of Ferro Alloys
…And a Leading Manufacturer and Exporter of Ferro Alloys Manganese-based Ferro Alloys Total Domestic Sales ('000 MT) Exports ('000 MT) Plant Vishakhapatnam Siltara, Raipur 2 units Location (SMAL) (SEML) Current 2*33 MVA 5*9 MVA 147 MVA Capacity 1*36 MVA 115 Primary 48 Exports Domestic - 84 99 Market
Slide 27: Minerals & Energy: Captive Resources Driving Down Costs
Minerals & Energy: Captive Resources Driving Down Costs Significantly Captive Iron Ore Mine Coal Mines Captive Thermal + Waste Heat Plants (Total Capacity of 1.5 MMT p.a.) (Total Capacity of 2.04 MMT p.a.) (Total capacity of 161.5 MW) Rajnandgaon, Chhattisgarh: Gare Palma IV/ 7 Coal Mine, Chhattisga
Slide 28: Operational Hydropower Assets of ~141.8 MW
Energy: Operational Hydropower Assets of ~141.8 MW… 4.8 MW 24 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of Commissioning 2008 2017 2021 Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination 35-year PPA with Term of PPA 30-ye
Slide 29: Track Record of Robust PLF and Annuity-like Revenue
…With Track Record of Robust PLF and Annuity-like Revenue + High Margin Generation and Sales (Mn KwH) Revenue (INR Cr) & EBITDA Margin (%) Generation Sales* Revenue EBITDA margin 532 88% 494 85% 479 452 73% 423 423 70% 71% 322 325 271 115 115 129 129 58 68 FY20 FY21 FY22** FY23 FY24 FY20 FY21 FY22**
Slide 30: Corporate Social Responsibility
Corporate Social Responsibility
Slide 31: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility 23 7 3 3 4 2 CY18 CY19 CY20 CY21 CY22 CY23 ‘It’s Energy and Minerals, Not Only Steel’ 31
Slide 32: Education, Culture and Arts
Education, Culture and Arts ▪ Initiated Robotic education training in village schools ▪ Play Material support to Aanganwadi to develop Model Aanganwadi ▪ Physics & Chemistry lab material support to Govt college, Kharora ▪ Renovated School Boundary Wall at Mandhar ▪ Meeting with teachers for proposed
Slide 33: Healthcare and Infrastructure
Healthcare and Infrastructure ▪ Donated 3 Bone Marrow Transplant Units To Balco Medical Centre, ▪ Repair and Renovation of Ambedkar Chowk at Siltara village. Raipur ▪ Pond Deepening work at Raigarh –Pata Village ▪ Donation to Vedanta Cancer Hospital for Cancer Care of Community ▪ Creation of Model A
Slide 34: Livelihood, Environmental & Economic Sustainability
Livelihood, Environmental & Economic Sustainability ▪ Potable Drinking Water supply through water tanker at Siltara & ▪ Training to SHGs on making of Soft Toys and Costume Mandhar village Jewellery making ▪ Bricks provided for school and Gothan in villages of Mandhar, Siltara ▪ Conducted Sewing Trai
Slide 35: Historical Financials
SARDA SARDA ENERGY & MINERALS LTD. Historical Financials
Slide 36: Strong Balance Sheet: Cushion for Next Level of Growth
Strong Balance Sheet: Cushion for Next Level of Growth Figures in INR Crore 3,889 3,410 3,004 • Improving TOL/ NW ratio along with strong liquidity position. 2,218 2,199 2,190 2,132 1,971 2,007 • With additional cashflows post 1,870 1,743 1,807 commissioning of Sikkim Hydro 1.14 project and operatio
Slide 37: Consolidated P&L – Consistent Growth with High Profit Margins
Consolidated P&L – Consistent Growth with High Profit Margins INR in 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 Expenses 87
Slide 38: Consolidated BS – Conservative Capital Structure
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in 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 Short Term
Slide 39: Yearly Trend | Production and Sales (1/2)
Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet Production ('000 MT) Production ('000 MT) Production ('000 MT) 800 810 741 325 316 228 229 619 302 291 294 290 600 600 192 175 177 157 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 F
Slide 40: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys Production ( ' 0 0 0 M T ) Production ('000 MT) Production ('000 MT) 190 193 39 200 161 38 142 147 32 145 159 164 119 23 26 124 132 21 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24
Slide 41: Power Segment: Generation & Sales (Volumes)
Power Segment: Generation & Sales (Volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~141.8 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,262 532 1,076 1,079 1,083 494 479 999 964 452 423 423 115 115 129 129 173 142 85 85 103 76 71 81 FY19 FY20 FY21 FY22 FY23 FY24 FY
Slide 42: Share Price Information
Share Price Information Volume ('000 shares) Close Price (Rs) 300 8,000 7,000 250 6,000 200 5,000 150 4,000 3,000 100 2,000 50 1,000 - - Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Capital Market Information (as on 02-Aug-24) Consistently Paying Dividen
Slide 43: 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 ‘It’s Energ
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