Lloyds Metals & Energy Ltd. · NSE:LLOYDSME
Lloyds Metals & Energy — Q3 FY24 Earnings Presentation
38 slides from Lloyds Metals & Energy's earnings presentation, Jan 22, 2024
Slide 1: Intimation to stock exchanges on earnings presentation
Date: 22nd January, 2024 To, BSE Limited National Stock Exchange of India Limited Corporate Services Department Corporate Communications Department Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400001 Bandra (East), Mumbai - 400 051 BSE Scrip Code: 512455 NS
Slide 2: Investor Presentation
{ JLLOYDS METALS Investor Presentation
Slide 3: 9M/Q3-FY24 Consolidated Highlights
9M/Q3-FY24 Consolidated Highlights Company 9M-FY24 Financial Performance • Q3FY24’s Revenue was 92% YoY, led by higher iron ore and Sponge volumes. Revenue for 9MFY24, too, witnessed a robust growth of 95% YoY. INR 50,122 Mn INR 13,147 Mn • EBITDA, too, replicated the revenue performance, growing by
Slide 4: Management Commentary
Management Commentary Commenting on overall performance, Mr Rajesh Gupta– Managing Director, said: Reviewing our Q3 and 9Mfy24 performance, we are pleased to report a substantial 92% YoY surge in revenue and a robust 100% YoY increase in EBITDA for Q3FY24. Our financial landscape has reached new hei
Slide 5: Quarterly Product-Wise Performance
Quarterly Product-Wise Performance Iron Ore DRI & Power Pellet Trading 30.35% 13,658 27.32% 2,672 24.40% 9,404 24.12% 2,939 24.81% 7,949 2,369 1,722 3,731 2,854 1,939 6.16% 571 729 106 - - - - 1 Q3-FY23 Q2-FY24 Q3-FY24 Q3-FY23 Q2-FY24 Q3-FY24 Q3-FY23 Q2-FY24 Q3-FY24 Revenue (INR Mn) EBIT (INR Mn) EB
Slide 6: YTD Product-Wise Performance
YTD Product-Wise Performance Iron Ore DRI & Power Trading (pellet) 40,248 7,275 2,672 27.81% 6,265 23.11% 19,510 27.67% 22.41% 11,192 1,448 1,630 5,398 0 - 1 9M-FY23 9M-FY24 9M-FY23 9M-FY24 9M-FY23 9M-FY24 Revenue (INR Mn) EBIT (INR Mn) EBIT Margins (%) Revenue EBIT EBIT Margins Revenue EBIT Iron Or
Slide 7: Quarterly Consolidated Financial Performance
Quarterly Consolidated Financial Performance Particulars (INR Mn) Q3-FY24 Q3-FY23 Y-o-Y Q2-FY24 Q-o-Q Total Income 19,236 10,024 11,112 73% 92% Total expenses* 14,628 7,727 8,050 82% 89% EBIDTA 4,608 2,297 3,062 50% 101% EBIDTA Margins (%) 23.95% 22.92% 24.94% Depreciation and amortization 146.5 56.
Slide 8: YTD Consolidated Financial Performance
YTD Consolidated Financial Performance Particulars (INR Mn) 9M-FY24 9M-FY23 YOY Total Income 50,122 25,711 95% Total expenses* 36,975 18,703 98% EBIDTA 13,147 7,008 88% EBIDTA Margins (%) 26.23% 27.26% -4% Depreciation and amortization 324 162 100% Finance costs # 34 478 0% Profit Before Exceptional
Slide 9: Company Overview
Company Overview www.lloyds.in 8
Slide 10: Snapshot
Snapshot Iron Ore mine with High Grade Iron ore extractable reserves of Total Lease area 348.09 Mines on allocation basis deposit comprises of Current production 180mnt + 550mnt BHQ Hectare with a mining hence no premium to be Hematite in Maharashtra capacity of iron ore at 10 (preliminary) period o
Slide 11: Key Milestones
Key Milestones Reached 100% mining capacity of 3 MMTPA and Received environmental clearance to LMEL enhanced mine 10MMTPA LMEL DRI capacity to Listed ON NSE commissioned 2,70,000 30 MW Power MTPA Plant 2006 2011 2023 2024 1974 1993 1995 2007 2021 Commenced LMEL applied for LMEL started LMEL signed L
Slide 12: Strategically Located Facilities
Strategically Located Facilities Gorakhpur The Surjagarh Iron Ore Mine (SIOM) is strategically located at the centre of India making it equidistant from most steel plants across the country. Madhya Pradesh Gujarat Maharashtra Chhattisgarh Iron Ore Mine Odisha Karnataka Telangana Tirupati Bilsarika S
Slide 13: Current Integrated Operations
Current Integrated Operations Iron Mine District Map of District Map of Chandrapur Gadchiroli Lumps DRI DRI Kilns, Ghugus Mining Surajgarh (Direct Reduced Iron) Mines Konsari Ghugus Hedri Iron ore DRI Kilns, Konsari DRI fines for sale (Direct Reduced Iron) Iron Ore Mining at Hedri, Surjagarh DRI Pla
Slide 14: Mining Operations
Mining Operations Mined 8.1 MTPA in the 9MfY24. Mined 3.8 MTPA in the first quarter of FY24. The Board has approved for application for EC to enhance the Current bandwidth Mining Capacity 10MTPA to 55 already in place to mine MTPA (incl BHQ). upto 10 MTPA www.lloyds.in 13
Slide 15: Pellet Trading – Seed Marketing Experience
Pellet Trading – Seed Marketing Experience Lloyds Metals has commenced seed marketing of pellets through the Mandovi River Pellet Plant (MRPL), a strategic partner. This collaboration involves the sale of iron ore fines to MRPL, which transforms them into pellets for subsequent sale to Lloyds Metals
Slide 16: Beneficiation of BHQ – A key catalyst for Iron Ore Reserves
Beneficiation of BHQ – A key catalyst for Iron Ore Reserves Ore Reserves Beneficiation Studies being Undertaken Ore Mn Tons Fe • The lab scale and scale-up test at CRIMM, China, has been completed. • Scale-up studies by SINOSTEEL and MCC-NETC under process • Lab scale Studies by Metso, and FLSmidth
Slide 17: A Bird Eye View on Company's Integrated Steel offerings
A Bird Eye View on Company’s Integrated Steel offerings Iron Ore Power Steel (upcoming) Capacity : 10 mnt (existing) Planned : 55mnt (incl BHQ) 34MW WHRB (existing) Wire Rod Mill : 1.2 Reserves : 157mnt + 700 90 MW (upcoming) MTPA mnt BHQ HRC : 3 MTPA Lease : Till Year 2057 DRI/ Sponge Iron PELLET T
Slide 18: Final Product for Sale To Market
Final Product for Sale To Market Pellets Wire Rod HR Coils/ Galvanised Coil/ Api Grade Steel www.lloyds.in 17
Slide 19: Strategic Advantages & Expansion Prospects
Strategic Advantages & Expansion Prospects www.lloyds.in 18
Slide 20: Many Firsts to us, More to Come
Many Firsts to us, More to Come #First …to Start Iron Ore Mine in Gadchiroli …To export Iron Ore from the State of #First Maharashtra #First …To have a manufacturing unit for DRI in Gadhciroli #First …To begin setting up a slurry pipeline in Western India www.lloyds.in 19
Slide 21: Key Strengths- We call it MOAT
Key Strengths- We call it “MOAT” Rich Mine Via Reserves Allocation Debt Free Allocated Mines Debt Free Rich Reserves Making Lloyds’ cost- High-quality iron ore with Standing Strong during competitive against the very low Silica and Alumina volatility making us more mines which are content. 180Mn+ to
Slide 22: An Ecosystem of lower costs and Efficient capital Allocation
An Ecosystem of lower costs and Efficient capital Allocation Iron ore costs remain stable irrespective of volatility In the global Captive Lowest Cost scenario, safeguarding margins. Raw Producer Mine life till 2057 with Normal royalty rates (no premium royalty) to Material keep cost structure c
Slide 23: Value Creation - Focussed on ROIC
Value Creation - Focussed on ROIC Captive Iron Ore aids lower Controlled Cost Of Production. . Lower Costs Lower Logistics cost- Rationalising freight & costs via a slurry pipeline Rationalised Capex Our capital allocation strategy of utilising Efficient capital allocation -Internal accruals & our s
Slide 24: Unleashing Rapid Execution Excellence
Unleashing Rapid Execution Excellence IRON ORE Swift execution from 3mn to 10mn tonnes(one year) and now going ahead to 55 mn tonnes Value Addition DRI in Konsari in 13 straight months since groundbreaking Establishing Establishing as Valued Production capabilities Establishing Added steel producer
Slide 25: Our Thrust – An All-Inclusive Growth
Our Thrust – “An All-Inclusive Growth” Social CSR Building an ecosystem of The company plans to facilities to contribute to continuously spend 50% community development and more than the mandated CSR well-being. spends, which will give a major thrust to the region in which company is operating. Envi
Slide 26: Sustainable Business Practices
Sustainable Business Practices World Nature Conservation Day As part of our CSR initiative, we at LIF celebrated World Nature Conservation Day with 500- 550 students from three schools in Ghugus and Mhatardevi. The event aimed to raise awareness and promote environmental sustainability among the you
Slide 27: Sustainable Business Practices
Sustainable Business Practices Water Tanker Distribution In line with our commitment to empower our community LIF addressed the issue of water scarcity in Ghugus and nearby villages by providing two tankers of drinking water, each carrying 8000 liters. We alleviated the hardships faced by citizens i
Slide 28: Sustainable Business Practices
Sustainable Business Practices Key HR KPI’s 01 • Attrition rates fell to 8% in FY24 from 24% in FY22 • Average tenure of employees ; 99% more than 5 years ESOPS for All 02 ESOPS for all Employees across ALL RANKS Employee Welfare 03 Marriage and Child Birth- 12 months gross salary Skill developm
Slide 29: Industry Overview
www.lloyds.in Industry Overview 28
Slide 30: India – Expected Steel Capacity Expansion
India – Expected Steel Capacity Expansion 160 126 210 258 376 FY 23 Crude Steel Capacity Crude Steel Production Iron Ore Req. (MTPA) Iron Ore Prod (MTPA) Iron Ore EC (MTPA) (MTPA) (MTPA) FY 30 393 236 393 373 573 Case – I Crude Steel Capacity (MTPA) Crude Steel Production (MTPA) Iron Ore Req. (MTPA)
Slide 31: Financial Overview
www.lloyds.in Financial Overview 30
Slide 32: Consolidated Historical Income Statement
Consolidated Historical Income Statement Particulars (INR Mn) FY21 FY22 FY23 Q3-FY24 Total Income 2,733 7,273 34,667 19,236 Operating Expenses 2,425 5,520 25,820 14,628 EBIDTA 308 1,753 8,847 4,608 EBIDTA Margins (%) 11.26% 24.10% 25.52% 23.95% Depreciation and amortisation expenses 139 180 230 146.
Slide 33: Consolidated Historical Income Statement
Consolidated Historical Income Statement Particulars (INR Mn) FY21 FY22 FY23 9M-FY24 Total Income 2,733 7,273 34,667 50,122 Operating Expenses 2,425 5,520 25,820 36,975 EBIDTA 308 1,753 8,847 13,147 EBIDTA Margins (%) 11.26% 24.10% 25.52% 26.23% Depreciation and amortisation expenses 139 180 230 324
Slide 34: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet Particulars (INR Mn) FY23 H1-FY24 Particulars (INR Mn) FY23 H1-FY24 Equity Non-Current Assets (a) Equity Share Capital 505 505 (a) Property, Plant and Equipment 4,746 8,973 (b) Other Equity 14,785 21,305 (b) Capital Work in Progress 2,979 4,327 Non-Current Liabi
Slide 35: Consolidated Historical Financial Highlights
Consolidated Historical Financial Highlights Operational Income (INR Mn) EBITDA (INR Mn) & EBITDA Margins (%) Adj PAT (INR Mn) 33,923 14,000 25.52% 26.23% 12,000 9,855 9,661 20.86% 13,147 25,161 10,000 8,847 8,000 6,000 6,975 4,000 4.29% 109 1,455 1,487 2,534 1 2,000 - FY21 FY22 FY23 9M-FY24 FY21 FY
Slide 36: Capital Market Information
Capital Market Information 1 YEAR SHARE PRICE MOVEMENT (Up to 31st Dec 2023) 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Lloyds Sensex Price Data (As on 31st Dec 2023) INR Shareholding Pattern (As on 31st Dec, 2
Slide 37: Disclaimer
Disclaimer Lloyd’s Metals & Energy Limited (LMEL) Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and
Slide 38: Thank You
www.lloyds.in Thank You 37
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