Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q2 FY2024 Earnings Presentation
41 slides from Shyam Metalics & Energy's earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter for investor presentation
•• • 1 TM ORI: TO METAL SMEL/SE/2023-24/74 November 10, 2023 The Secretary, The Manager - Listing Department Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, "Exchange Plaza", 5th Floor, Plot No. C/1, G-Block, Dalal Street, Mumbai 400 001 Bandra-Kur
Slide 2: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation November 2023
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 ~74% power Distribution Network Seamless Logistics with presence across up stainless steel & requirement the Value Chain alu
Slide 8: Key Updates for Q2 FY24
Key Updates for Q2 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 H1 FY24: Rs. 3,964
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 FY22 Q2FY24 Post Expansion Capacity (MTPA) Post Expansion Iron Pellet 2.40 3.60 4.80 6.00 6.00 Beneficiation 3.0 1.39 2.11 2.54 2.90 4.10 Coke Oven 0.7 Spong
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 1.60 Leader Leading Player in Stainless Steel Flats (200 series Shyam Metalics has forayed 0.5 and 400 Series) in India into stainless steel through 0.2 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: Business Update: Greenfield Expansion- Cold Rolling Mill
Business Update: Greenfield Expansion- Cold Rolling Mill Capacity Capex Incurred Rs. 159 cr Greenfield Expansion Phase I 2,50,000 Ton Capex Pending Rs. 444 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) 30 Sept (Rs Cr) (Rs Cr) (in Mn Tonnes) Benefication Plant 3.0 300 - 300 Sponge Iron 1.20 425 37 388 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) 30 Sept (Rs Cr) (Rs Cr) (in Mn Tonnes) Billet Stainless Steel 0.13 130 11 119 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% 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 17.0 27% 20% 11% 17% 8.1 8% 6% 8.8 1.6 16% 10.2 1.8 6.1 17% 15% 15% 1.5 19% 18% 1.5 17.7 14.7 4.2 24% 15% 14% 9.9 12.1
Slide 20: Export Opportunities
Export Opportunities 43% 41% 16% 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: Q2 & H1 FY24 Financial Performance
Q2 & H1 FY24 Financial Performance
Slide 22: Performance Highlights
Performance Highlights Q2 FY24 Revenue EBITDA PAT -4.7% 26.1% 334.9% Rs.2,941 y-o-y Rs. 307 y-o-y Rs.482 y-o-y Crores Crores Crores H1 FY24 Revenue EBITDA PAT -1.0% -15.2% 30.3% Rs. 6,274 y-o-y Rs. 721 y-o-y Rs. 683 y-o-y Crores Crores Crores
Slide 23: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 2,940.7 3,085.2 -4.7% 3,333.0 -11.8% 6,273.7 6,308.4 -0.6% Cost of Material Consumed 2,159.7 2,314.3 2,433.1 4,592.8 4,310.8 Purchases of stock in trade 0.7 1
Slide 24: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars Sep-23 Mar-23 Particulars Sep-23 Mar-23 Assets Equity share capital 255.1 255.1 Non-Current Assets Other equity 7,899.3 7,215.1 Property, plant and equipment 3,868.6 3,214.9 Total Equity 8,154.4 7,470.1 Right-of-use assets 48.1 76.4 Non-controlling in
Slide 25: Q2 FY24 Performance Highlights
Q2 FY24 Performance Highlights Revenue from Operations EBITDA Profit After Tax Rs. 2,941 crores Rs. 307 crores Rs. 482 crores Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y Y-o-Y 4.0% 13.9% -28% +8% 5.4% 7.0% 3.8 3.9 5.2 5.1 -2% Ferro Products 0.4 0.5 4.7 -28%
Slide 26: H1 FY24 Performance Highlights
H1 FY24 Performance Highlights Revenue from Operations EBITDA Profit After Tax Rs. 6,274 crores Rs. 721 crores Rs. 683 crores Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y Y-o-Y +11% 3.9% 14.1% -11% 5.1% 7.5 10.3 8.2% Ferro Products 0.9 6.7 9.3 0.9 15.0% 6.1
Slide 27: 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 -3% -3% -12% -12% -6% -12% -13% -5% -12% 96,957 96,553 93,674 1,07,799 53,811 50,557 55,744 48,528 49,584 95,199 47,490 49,065 44,379 42,070 43,421 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q
Slide 28: Strong Debt Profile
Strong Debt Profile Gross Debt* (Rs. Crs.) Net Debt (Rs. Crs.) 1,980 1,072 960 448 1,050 246 951 785 656 534 -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 0.16 0.74 0.07 0.48 0.18 -0.08 -0.18 Mar-19 Ma
Slide 29: 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 30: Annexure
Annexure
Slide 31: 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 32: 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 33: 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 34: Detailed Plant Wise Capacities – Existing
Detailed Plant Wise Capacities* – Existing Product –Wise Jamuria, West Mangalpur, TOTAL Pandoli, Odisha Capacity (MTPA) Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Ferro 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 Capti
Slide 35: Detailed Plant Wise Capacities – Post Expansion : Steel
Detailed Plant Wise Capacities – Post Expansion : Steel Product –Wise Sambalpur, Jamuria, West Mangalpur, Kharagpur, TOTAL Capacity (MTPA) Odisha Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Ferro Alloys 0.11 0.07 0.06 0.24 DRI 1.95 1.95 0.06 0.15 4.1 (Direct Reduced Iron) Pig Iron / Bla
Slide 36: Detailed Plant Wise Capacities – Post Expansion : Stainless Steel
Detailed Plant Wise Capacities – Post Expansion : Stainless Steel Product –Wise Sambalpur, Pitampura, Madhya TOTAL Capacity (MTPA) Odisha Pradesh (MTPA) Stainless CR 0.2 0.2 Stainless HR 0.5 0.5 Stainless 0.15 0.15 Billets 0.13 0.12 0.25 Slabs 0.5 0.5 (*Capacities as of Nov 10th 2023) 35
Slide 37: 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 38: Captive Power: ~73%
Captive Power: ~ 73% • 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 operations to produce elec
Slide 39: 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 40: 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 41: 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
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