Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY2023 Earnings Presentation
43 slides from Sarda Energy & Minerals's earnings presentation, July 2022
Slide 1: Investor Presentation | Q1FY23
Investor Presentation | Q1FY23
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 Q1FY23 - Key Highlights 2 SEML – Sustainable Growth 3 Business Segments 4 Corporate Social Responsibility 5 Financials 3
Slide 4: Q1FY23 | Key Highlights
an Q1FY23 | Key Highlights
Slide 5: Robust Performance Amidst Challenging Environment
Robust Performance Amidst Challenging Environment Financial Performance (Consolidated INR Cr) Revenue From Operations Operating EBITDA Margin (%) PAT * Margin (%) 1261 351 364 1058 207 832 268 168 173 32% 33% 20% 19% 29% 14% Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Operational
Slide 6: Improvement in Debt Profile and Credit Rating
Improvement in Debt Profile and Credit Rating Consolidated (INR Cr) Gross Debt Net Debt* SEML - Credit Ratings – Upward Trajectory 1,687 1,714 1,581 1,395 1,421 1,383 1,401 1,184 1,001 720 FY19 FY20 FY21 FY22 Q1FY23 Standalone (INR Cr) Gross Debt Net Debt* 391 295 270 Name of Subsidiary Reviewed on
Slide 7: Update on Ongoing Projects
Update on Ongoing Projects Backward Integration: To ensure Consistent Supply and Stable Prices ➢ Gare Palma IV/7 Coal Mine, Chhattisgarh ✓ Capacity expansion from 1.2 MMT p.a. to 1.68 MMT p.a. likely to be completed in FY23 ➢ Shahpur West Coal Mine, Madhya Pradesh ✓ Extractable reserves of 13.4 MMT
Slide 8: Consolidated P&L – Highest Ever Quarterly Revenue
Consolidated P&L – Highest Ever Quarterly Revenue INR in Cr Q1FY23 Q1FY22 YoY Q4FY22 QoQ FY22 FY21 YoY Revenue from Operations 1,261 832 1,058 3,914 2,199 Other Income -39 -2 34 50 144 Total Income 1,222 830 47% 1,092 12% 3,964 2,343 69% Raw Material 723 468 581 2,086 1,347 Employee Expenses 32 24 3
Slide 9: Standalone P&L - Highest Ever Quarterly Revenue
Standalone P&L - Highest Ever Quarterly Revenue INR in Cr Q1FY23 Q1FY22 YoY Q4FY22 QoQ FY22 FY21 YoY Revenue from Operations 819 619 761 2,642 1,595 Other Income -32 -3 27 75 107 Total Income 788 616 28% 788 0% 2,717 1,702 60% Raw Material 463 351 385 1,467 974 Employee Expenses 24 18 28 82 68 Other
Slide 10: Consolidated Operating EBITDA Break-up
Consolidated Operating EBITDA Break-up Operating EBITDA Bridge – Q1FY23 (in INR Crore) • The 113 MW Sikkim Hydro Power project was commissioned on June 30, 2021, resulting in a… • …Substantial jump in Hydro EBITDA effective Q2FY22… • …and a significant diversification of cashflow profile of the Comp
Slide 11: Steel Segment: Product Prices Continue to Largely Remain Firm
Steel Segment: Product Prices Continue to Largely Remain Firm Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,784 677 3,295 4,136 2,454 2,315 2,348 3,061 3,266 3,246 1,337 18,888 18,124 INR / MT 4,497 1,878 13,774 Value 2,297 14,380 12,453 2,790 Addition 1,849 12,375 3,409 3,092 13,19
Slide 12: Steel Segment: Stable Demand Across Products (1/2)
Steel Segment: Stable Demand Across Products (1/2) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 209 216 Production 69 159 65 65 52 51 47 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 1
Slide 13: Steel Segment: Stable Demand Across Products (2/2)
Steel Segment: Stable Demand Across Products (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 44 44 44 43 Production 41 9 9 36 6 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 45 38 10 35 9 39 39 30 Sa
Slide 14: Power Segment - Highest Ever Quarterly Thermal Power Generation & Sales
Power Segment - Highest Ever Quarterly Thermal Power Generation & Sales Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~143 MW G E NE RATIO N ( M N KWH) G E NE RATIO N ( M N KWH) 140 307 279 264 18 25 Q1F Y22 Q4F Y22 Q1F Y23 Q1F Y22 Q4F Y22 Q1F Y23 SALE
Slide 15: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Backward Integration Capacity Expansion Diversification • Ferro Alloys capacity expansion by 36 MVA Adding Annuity-like Revenue Stream (Hydro) To Reduce Input Costs and Ensure Consistent Supply to 147 MVA, likely to be completed in FY23 • Comm
Slide 16: SEML | Sustainable Growth
SEML | Sustainable Growth 16
Slide 17: Robust Business Model with Diversified Business
Robust Business Model with Diversified Business Adding Value to Minerals and Energy METALS HYDRO POWER Vast experience of over 49 years in Steel Manufacturing To de-risk from the cyclicality of Metals business, SEML diversified into renewable energy in Early 2000s Vertically integrated producer of S
Slide 18: Strategically Located Assets – Proximity to Raw Materials and End Users
Strategically Located Assets – Proximity to Raw Materials and End Users… Captive Iron Ore and Coal Mines located within ~140 km and ~200 km respectively, from the End-user plant at Chhattisgarh Iron Ore Mine at Rajnandgaon, Chhattisgarh (rated capacity of 1.5 MMT p.a.) Coal Mine at Gare Palma IV 7,
Slide 19: Built Over Four Decades of Excellence
…Built Over Four Decades of Excellence 1979-89 1989-99 1999-08 2008-18 2018-22 ▪Acquired Raipur Wires and Steel as a ▪Installed 25 TPD Electric Arc Furnance ▪Company started 24 MW captive ▪4.8 MW Hydro power plant ▪Billet capacity increased by 50% sick unit in 1979 in 1990 power plant and Ferro Allo
Slide 20: Well-Experienced and Strong Leadership at the Helm
Well-Experienced and Strong Leadership at the Helm Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • Mechanical Engineer with 17 years experience in Iron and Steel Industry experience in Iron and Steel Industry • Responsible for the groups vision and • Responsible f
Slide 21: Business Segments
Business Segments 21
Slide 22: Metal Business | Vertically Integrated Steel Player
Metal Business | Vertically Integrated Steel Player… Raw Material & Energy Generation (Captively procured key inputs, assure cost and quality control) Raw Material & Energy Generation Iron Ore Mine | Coal Mine | Power Intermediate / Finished Products (Flexibility to sell products across entire produ
Slide 23: Backed by Captive Resources, Driving Down Costs Significantly
… Backed by Captive Resources, Driving Down Costs Significantly Captive Iron Ore Mine Two Coal Mines Captive Thermal + Waste Heat Plants (Total Capacity of 1.5 MMT p.a.) (Total Capacity of 1.8 MMT p.a.) (Total capacity of 161.5 MW) • Located at Rajnandgaon, Chhattisgarh, which is ▪ Gare Palma IV/ 7
Slide 24: Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh
Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh… Pellets Sponge Iron Billets Wire Rods HB Wires Semi finished steel product Produced from captive Iron produced by continuous Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Ore Lumps & Pellets. Description
Slide 25: Leading Manufacturer and Exporter of Ferro Alloys
…And a Leading Manufacturer and Exporter of Ferro Alloys ▪ Manufactures manganese-based Ferro Alloys sold domestically as Domestic Sales ('000 MT) Exports ('000 MT) well exported to other countries ▪ Leading exporter of manganese-based Ferro Alloys ▪ Exports Awards: ▪ SMAL received prestigious expor
Slide 26: Hydro Power Business | Operational Assets of ~143 MW
Hydro Power Business | Operational Assets of ~143 MW… 4.8 MW 24.9 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of 2008 2017 2021 Commissioning Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination Term of PPA 30 -year PPA with
Slide 27: Track Record of Robust PLF and Annuity-like Revenue + High Margin
…With Track Record of Robust PLF and Annuity-like Revenue + High Margin Generation and Sales (Mn KwH) Revenue (INR Cr) & EBITDA Margin (%) Generation Sales 417 417 400 100% 88% 86% 85% 90% 350 80% 300 69% 69% 271 70% 250 57% 60% 200 50% 150 40% 129 129 115 115 30% 74 74 85 85 100 68 58 20% 35 45 19
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility 28
Slide 29: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility (including minor) 21 23 15 7 3 3 CY16 CY17 CY18 CY19 CY20 CY21 29
Slide 30: Education: Enabling quality education in community
Education: Enabling quality education in community ▪ Salary support to Teachers at Siltara & Mines area village schools ▪ Reward to Meritorious students of 10th & 12th of Siltara, Mandhar & Girod ▪ Support to Educational Trust for quality education development ▪ Support to Ekal Vidyalayas for educat
Slide 31: Healthcare: Preventive & curative healthcare services
Healthcare : Preventive & curative healthcare services ▪ Operating mobile medical van with free medicines in mines area villages ▪ Mobilized Doctors for community healthcare services around 20 villages ▪ Financial support to critical patients for their advanced treatment ▪ Organized Health camp on i
Slide 32: Infrastructure: Creating community assets
Infrastructure : Creating community assets ▪ Construction of Community hall in Siltara and Murethi village ▪ Repair & Renovation of Cross Drain and Service road at village Basantkala ▪ Gali Concrete work at Tada , Mandhar & Girod ▪ Bazar Walkway concrete work at Siltara ▪ Creation of community asset
Slide 33: Livelihood: Environmental & economical sustainability
Livelihood : Environmental & economical sustainability ▪ Mass Bamboo plantation under Hariyar Chhattisgarh ▪ Pond Deepening work at Murethi ,Siltara ,Akoli & Jakke village for Water shed development ▪ Potable water supply in Siltara, Mandhar & Mines area villages ▪ Support to the farmers for crop lo
Slide 34: Art, Culture & Sports: Sports & culture development
Art, Culture & Sports : Sports & culture development ▪ Rural awareness program on MGNERGA with Central Board Of Workers Education ▪ Support to old age home for the take care of Smt. Radha Bai Mandavi ▪ Support for the local cultural promotion festivals, Jhanki, Dance & Folk Art in villages ▪ Sponsor
Slide 35: Financials
Financials 35
Slide 36: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 3,004 2,218 2,199 2,190 2,132 • Improving TOL/ NW ratio along 1,870 with strong liquidity position 1,768 1,807 1,702 1,743 1,537 1,576 1.45 • With additional cashflows post 1,358 1,223 1.26 1.14 commissioning of Sikkim Hydro 1.
Slide 37: Consolidated P&L – Consistent Growth and High Profit Margins
Consolidated P&L – Consistent Growth and High Profit Margins INR in Cr FY18 FY19 FY20 FY21 FY22 Revenues 2,217 2,324 2,000 2,199 3,914 Other Income 70 17 -17 144 50 Total Income 2,287 2,341 1,983 2,343 3,964 Raw Material 1,478 1,493 1,293 1,347 2,086 Employee Expenses 77 87 88 89 113 Other Operating
Slide 38: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr FY18 FY19 FY20 FY21 FY22 Share Capital 36 36 36 36 36 Tangible Networth 1,540 1,707 1,834 2,182 2,968 Minority Interest 88 132 100 101 104 Long Term Borrowings 983 1,078 1,408 1,493 1,196 Short Term Borrowings 40
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) 741 600 600 600 619 325 302 177 192 291 294 175 157 278 136 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 SALES ('000 MT) SA
Slide 40: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys PRODUCTION ('000 MT) PRODUCTION ('000 MT) PRODUCTION ('000 MT) 161 32 142 147 149 159 28 26 145 113 119 124 132 21 23 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 SALES ('000 MT) SALES ('000 MT)
Slide 41: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,076 1,079 417 417 1,010 999 964 115 115 129 129 173 74 74 85 85 145 142 103 76 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22* G
Slide 42: Share Price Information
Share Price Information Volume (# Shares) Share Price (INR) 1400 800000 1200 700000 600000 1000 500000 800 400000 600 300000 400 200000 200 100000 0 0 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Jul-22 Capital Market Information (as on 29-July-22) Share
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 Kanakia Wall Street, Andheri (East), Mumbai 400 093 www.seml.co.in 43
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