Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q2 FY24 Earnings Presentation
44 slides from Sarda Energy & Minerals's earnings presentation, October 2023
Slide 1: Result Presentation | Q2 & H1FY24
Result Presentation | Q2 & H1FY24 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 Q2 & H1FY24 - 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: Beyond Metals for Sustainable Growth
Building Blocks: Beyond Metals 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
Slide 6: Creating Competencies Across the Value Chain & Diversifying Revenues
Creating Competencies Across the Value Chain & Diversifying Revenues ... Minerals Energy Metals (Iron Ore and Coal) (Thermal and Hydro) (Steel and Ferro) IRON ORE MINE THERMAL POWER STEEL PRODUCTS *** ▪ Captive: Rajnandgaon, Chhattisgarh ▪ 81.5 MW at Siltara Plant, for captive ▪ Pellets: 8 lac MT (1
Slide 7: Well-Diversified Cashflow Profile of the Company
… Leading to a Well-Diversified Cashflow Profile of the Company… Operating EBITDA Bridge (INR Cr) – Q2FY24 ...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 391 345 270 174 171 134 109 (127) (317) (703) Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Oct 17, 2023 Consolidated (INR Cr) Gross Debt Net Debt* 1,714 1,687 Name of Subsidiary Rev
Slide 9: Augmenting Capacity to Foster Growth
Augmenting Capacity to Foster Growth ➢ Gare Palma IV/7 Coal Mine Chhattisgarh: Capacity enhanced from 1.2 MTPA to 1.44 MTPA in May-23, and increasing further to 1.68 MTPA during the current year and seeking approvals for further enhancement to 5.2 MTPA which will be carried out in phases ➢ Shahpur W
Slide 10: Strong Focus on ESG
Strong Focus on ESG • Existing Hydropower portfolio of 141.8 MW and another 24.9 MW Rehar Hydropower plant under execution • Few more small hydropower projects are under different stages of approval • Existing 21.5 MW of Waste Heat power generation • Prudent governance philosophies and sustainable b
Slide 11: Q2 & H1FY24 | Key Highlights
Q2 & H1FY24 | Key Highlights
Slide 12: Key Financial Highlights (Consolidated)
Key Financial Highlights (Consolidated) Revenue From Operations (INR Mn) Operating Profit Net Profit 29% 1052 24% 967 1001 25% 19% 20% 14% 281 240 186 172 207 149 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Operating EBITDA (INR Mn) Margin (%) PAT (INR Mn)* Margin (%) Financial re
Slide 13: Consolidated P&L Highlights
Consolidated P&L Highlights INR in Cr Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY Revenue from Operations 1,001 967 4% 1,052 -5% 2,053 2,228 -8% Other Income 24 21 83 107 -18 Total Income 1,025 988 4% 1,135 -10% 2,160 2,210 -2% Raw Material 591 513 679 1,270 1,236 Employee Expenses 35 33 35 70 65
Slide 14: Standalone P&L Highlights
Standalone P&L Highlights INR in Cr Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY Revenue from Operations 646 688 -6% 760 -15% 1,406 1,507 -7% Other Income 37 61 80 117 29 Total Income 683 749 -9% 840 -19% 1,524 1,536 -1% Raw Material 437 396 517 954 859 Employee Expenses 26 23 26 52 48 Other Opera
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights Consolidated Standalone Consolidated Standalone Liabilities (INR Cr) Assets (INR Cr) Mar-23 Sep-23 Mar-23 Sep-23 Mar-23 Sep-23 Mar-23 Sep-23 Shareholder’s Funds 3,410 3,669 3,103 3,302 Non-Current Assets 3,236 3,266 1,772 1,813 Share capital 35 35 35 35 Property, plant & equ
Slide 16: Steel Segment – Price Trend
Steel Segment – Price Trend Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,784 677 1,818 3,295 4,136 2,456 4,897 3,201 2,883 2,454 4,181 2,365 2,348 3,061 3,602 4,037 3,246 3,243 18,888 18,124 INR / MT 15,340 13,774 16,141 12,453 15,307 17,098 15,059 Value Addition 15,435 18,550 20,2
Slide 17: Steel Segment – Production & Sales Trend (1/2)
Steel Segment – Production & Sales Trend (1/2) Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 114 Production 400 162 102 391 128 52 54 184 164 63 74 Q2FY23 Q2FY24* H1FY23 H1FY24* Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Iron Ore Pellet (‘000 MT) Sponge Iron (‘0
Slide 18: Steel Segment - Production & Sales Trend (2/2)
Steel Segment - Production & Sales Trend (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 93 Production 86 20 103 19 68 42 44 10 10 52 26 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000
Slide 19: 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 G E NE RATIO N ( M N KWH) G E NE RATIO N ( M N KWH) 634 387 357 485 238 257 320 178 Q2F Y23 Q2F Y24 H 1F Y23 H 1F Y24 Q2F Y23 Q2F Y24 H 1F Y23 H 1F Y24 SALE
Slide 20: SEML | Beyond Steel
SEML | Beyond Steel
Slide 21: 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 22: Strategically Located Assets – Proximity to Raw Materials and End Users
Strategically Located Assets – Proximity to Raw Materials and End Users… Steel and Ferro plant at Siltara, Chhattisgarh Pellets (8 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 Thermal Power (60 MW) and Waste Hea
Slide 23: Built Over Five Decades of Excellence
…Built Over Five Decades of Excellence 1979-88 1989-98 1999-08 2008-17 2018-23 ▪Acquired Raipur Wires and ▪Installed 25 TPD Electric Arc ▪Company started 24 MW ▪4.8 MW Hydro power plant ▪Billet capacity increased by 50% Steel as a sick unit in 1979 Furnance in 1990 captive power plant and commission
Slide 24: 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 • MBA in International • MBA in Finance & 46 years
Slide 25: Business Segment
SARDA SARDA ENERGY & MINERALS LTD. Business Segment D ANNIVERSARY
Slide 26: Metals: Well-Established, 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 produced by continuous from direct hot billet cold
Slide 27: A 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 as exported to other countries ▪ Leading exporter of manganese-based Ferro Alloys ▪ Exports Awards: ▪ SEML received Two-Star expor
Slide 28: Minerals & Energy: Captive Resources Driving Down Costs Significantly
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 29: Energy: 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 30: 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 Revenue EBITDA margin 532 88% 85% 494 77% 423 423 73% 70% 357 339 322 271 129 129 235 115 115 58 68 FY20 FY21 FY22* FY23 H1FY24 FY20 FY21 FY22*
Slide 31: Corporate Social Responsibility
Corporate Social Responsibility
Slide 32: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility 23 7 3 3 2 CY19 CY18 CY20 CY21 CY22 ‘It’s Energy and Minerals, Not Only Steel’ 32
Slide 33: Education, Culture and Arts
Education, Culture and Arts ▪ Financial Support for NEET Coaching at Dongarbore, 100 participants ▪ Financial Support for local cultural programme at Raigarh and Asthottar Mahyagya at Rajgarh ▪ Physics & Chemistry lab material support to Govt college Kharora ▪ Organized Fire Safety and First Aid Awa
Slide 34: Healthcare and Infrastructure
Healthcare and Infrastructure ▪ Conducted International Yoga Day Program at 2 villages Tada and ▪ Repair and Renovation of Ambedkar Chowk at Siltara village. Mandhar ▪ Construction of 5 Primary School Building in Kawardha District ▪ Organized a Free Eye checkup camp & General Medicine camp at Akoli
Slide 35: Livelihood: Environmental & Economic Sustainability
Livelihood: Environmental & Economic Sustainability ▪ Potable Drinking Water supply through water tanker at Siltara & Mandhar village ▪ Bricks provided for school and Gothan in villages of Mandhar, Siltara & Tada ▪ Training to the SHGs on Record Keeping & Documentation ▪ Bag distribution in Mandhar
Slide 36: Historical Financials
SARDA SARDA ENERGY & MINERALS LTD. Historical Financials D ANNIVERSARY
Slide 37: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 3,669 3,410 3,004 • Improving TOL/ NW ratio along 2,2182,199 2,190 2,132 with strong liquidity position. 1,971 2,009 1,870 1,7431,807 • With additional cashflows post commissioning of Sikkim Hydro 1.14 project and operationaliz
Slide 38: 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 Revenues 2,324 2,000 2,199 3,914 4,212 Other Income 17 -17 144 50 49 Total Income 2,341 1,983 2,343 3,964 4,261 Raw Material 1,493 1,293 1,347 2,086 2,495 Employee Expenses 87 88 89 113 127 Other Operati
Slide 39: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Share Capital 36 36 36 35 35 Tangible Networth 1,834 2,182 2,968 3,375 3,634 Minority Interest 100 101 104 100 110 Long Term Borrowings 1,408 1,493 1,196 1,063 971 Short Term Bo
Slide 40: 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) 800 741 325 228 600 600 619 192 302 175 177 291 294 290 157 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 SALES ('000 MT) SA
Slide 41: 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) 190 147 161 164 142 39 145 159 119 32 124 132 23 26 21 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 SALES ('000 MT) SALES ('000 MT)
Slide 42: 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) 1,076 1,079 1,083 999 532 964 494 423 423 115 115 129 129 173 142 85 85 103 76 71 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22* FY2
Slide 43: Share Price Information
Share Price Information Volume ('000 shares) Close Price (Rs) 300 2,500 250 2,000 200 1,500 150 1,000 100 50 500 - - Capital Market Information (as on 27-Oct-23) Consistently Paying Dividend (INR per share) Shareholding Pattern (as on 30-Sep-23) BSE/NSE Code 504614/SARDAEN Non 1.50 institutions CMP
Slide 44: 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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