Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Investor Presentation (July 2023)
36 slides from Shyam Metalics & Energy's investor presentation, Jul 28, 2023
Slide 1: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation July 2023
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: Company Overview
Company Overview
Slide 4: 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 5: 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 6: Driving Integration of Multi-Product Metals Portfolio
Driving Integration of Multi-Product Metals Portfolio Prospective License for Iron Ore Mine: Maharashtra *Backward Shyam Metalics Railway Integration siding & Energy Ltd *Downstream Renewables – Captive Solar Current Products Energy Plant Portfolio Aluminium Mill with Caster Colour CRM Finished Alum
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 ~74% power Distribution Network Seamless Logistics with presence across up stainless steel & requirement the Value Chain alu
Slide 8: Key Updates for Q1 FY24
Key Updates for Q1 FY24 • Additional capex plan : Rs 3,915 cr resulting in capacity expansion, enhanced product portfolio and cost efficiencies Update on Capex • Increasing upstream capacities by 5.1 MTPA at a capex cost of Rs 1,215 cr ; additional downstream capacities of 1.61 MTPA at a capex cost
Slide 9: Additional Capex Plan
Additional Capex Plan Objective Outcome Mega Capacity Expansion* • Downstream capacity to increase Increase Backward Integration The total capex for the from 2.7 MTPA to 4.4 MTPA projects will be ₹ 3,915 Cr Integration • Upstream capacities to grow by 5.1 MTPA Foray Into Newer Segments Utilise cash
Slide 10: Category-Wise Capex Allocation
Category-Wise Capex Allocation Projects Category Process Units Capacity Capex Cost Increase (Rs in Cr) Captive Power Plant 220 780 Captive Power Plant Ancillary MW Solar Plant 100 450 CPP Total 320 1230 Aluminium Mill with Caster Backward Integration 0.01 75 Aluminium MTPA Battery Foil Plant Downstr
Slide 11: Incremental Capex in Ramsarup Industries
Incremental Capex in Ramsarup Industries Ramsarup Super Shyam Metalics & Energy Ltd Industries Smelters Ltd Rs. 375 cr Capex : Rs 625 cr Rs. 250 cr Steel Wire Drawing Captive Power Plant Ductile Iron Pipe 85,000 TPA 40 MW 4,00,000 TPA Project Timeline Sept. 2024 March 2025 Jan. 2026
Slide 12: Current Projects Overview
, hy M14 YT) She Angi "led i ‘| he Current Projects Overview
Slide 13: Capacity Expansion
Capacity Expansion 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
Slide 14: Capex Incurred in Ramsarup Industries
Capex Incurred in Ramsarup Industries Super Shyam Metalics Smelters Ltd & Energy Ltd • Ramsarup Industries is a Kolkata based steel company which acquired by Shyam Metalics via NCLT 100% 40% • The existing facilities at the Kharagpur plant with ~315 acres of land are have not been operational for th
Slide 15: Greenfield Expansion
Business Update: Greenfield Expansion- Cold Rolling Mill Capacity Capex Incurred Rs 95.3 cr Greenfield Expansion Phase I 2,50,000 Ton Capex Pending Rs 507.7 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 16: Current Capacities Across Steel Life Cycle
Current Capacities Across 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 2.70 MTPA SMS 2.01 MTPA (Direct Reduced Iron) (Steel Melting Shop) Pipe Mill 0.03 MTA 16
Slide 17: Consistent Track Record on Envisaged Capex
Consistent Track Record on Envisaged Capex After IPO in FY21, we announced our ambitious capex plans to expand capacity multifold. We have consistently delivered as per the plan and most of the projects have been commissioned well ahead of schedule. In addition, we have also acquired assets which wi
Slide 18: 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% 48% 6.1 7.6 11.2 24% 48% 23.2 12% 20.8 5.7 8% 2.9 8.1 1.9 1.7 27% 20% 11% 17% 8.1 8% 7% 8.8 1.6 16% 10.2 1.8 17% 15% 13% 1.5 9.0 19% 18% 1.5 17.7 14.7 3.1 2.1 24% 15% 14% 9.9 12.1 1
Slide 19: Aluminium Foil - Update
Aluminium Foil - Update Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand Capacity: 40, 000 TPA – Plant installed by One of the largest in India, Achenback (Germany), an spread over 5 acres industry pioneer Kickstarted and stabilised More than 60% of the plant operations in production uti
Slide 20: Export Opportunities
Export Opportunities 44% 41% 15% 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: Q1 FY24 Financial Performance
Q1 FY24 Financial Performance
Slide 22: Performance Highlights Q1 FY24
Performance Highlights Q1 FY24 Revenue EBITDA PAT 3% -33% -43% y-o-y y-o-y y-o-y Rs. 3,307 Rs. 405 Rs. 235 Crores Crores Crores
Slide 23: Q1 FY24 Performance Highlights
Q1 FY24 Performance Highlights Revenue from Operations EBITDA Profit After Tax 3% -33% -43% Rs. 3,307 crores y-o-y Rs. 405 crores y-o-y Rs. 235 crores y-o-y Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y 3.9% Y-o-Y 14.3% +4% +14% 9.2% 3.9 5.2 5.2 3.7 3.6 0% 9.
Slide 24: 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 -19% -3% -8% -12% -4% +9% -13% -4% +10% 1,18,619 1,10,235 57,743 53,268 50,770 47,680 1,01,360 52,472 50,557 48,916 46,125 44,378 43,395 99,863 96,553 Q1FY23 Q4FY23 Q1FY24 FY22 FY23 Q1FY23 Q4FY23 Q
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q FY 23 Revenue from Operations 3,306.8 3,223.2 2.6% 3,380.1 -2.2% 12,610.2 Cost of Material Consumed 2415.7 1996.5 2525.16 8,916.3 Purchase of Stock 15.2 98.5 2.4 292.6 Change in Inventories -39.4 14.1 -10
Slide 26: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.) Net Debt (Rs. Crs.) 1,050 1,086 960 951 785 448 656 246 534 -477 -562 -499 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.18 0.48 0.07 0.18 -0.18 -0.08 -0.10 -0.38 Mar-19 Ma
Slide 27: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.18x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to significant (as of 31st March 2023) Disciplined Capital Allocation strategy reduction in Working capital requirements = One of Lowest Gearing amongst competitors* Be
Slide 28: Annexure
Annexure
Slide 29: 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 30: 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 12.9 MTPA comprising of intermediate and fi
Slide 31: 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 32: 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 Ferro Alloys 0.11 0.07 0.04 0.22 DRI 1.16 1.48 0.06 2.70 (Direct Reduced Iron) Billets 0.87 1.14 2.01 TMT, WDM, SRM 0.92 1.15 2.07 Capt
Slide 33: Captive Power: ~ 74%
Captive Power: ~ 74% • 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 6 Captive Plants Jamuria Total Capacity
Slide 34: 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 35: 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 36: Shyam Metalics & Energy Limited Investor Relations Partners
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 Mr. Nachiket Kale +91 9920940808 Nachiket.kale@linkintime.co.in Mr. Rajesh Agrawal +91 9967491495 Shyam Meta
Shyam Metalics and Energy — Investor Presentation (July 2023) on 6ix