Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Investor Presentation (May 2023)
34 slides from Shyam Metalics & Energy's investor presentation, May 25, 2023
Slide 1: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation May 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 Composite License for Iron Ore Mine in *Backward Maharashtra Shyam Metalics Integration & Energy Ltd *Downstream Railway Products Current siding Portfolio Renewables – Colour Ductile Captive Solar Finished Stainless Intermediates Ferro Aluminium
Slide 7: Value Propositions
Value Propositions 1 2 3 4 5 Private Railway Sidings Captive Power for Backward & Forward Diversified Strong Brand & Advantage for Integration with Product Mix: Scaling ~74% power Distribution Network Seamless Logistics presence across the up stainless steel & requirement Value Chain aluminum 6 7 8
Slide 8: Key Updates for Q4 & FY23
Key Updates for Q4 & FY23 • Approved payment of interim dividend of Rs 1.8 per share. The dividend payout will amount to Dividend Rs 46 cr • On track to organically increase the existing integrated installed facility of 12.73 million tons to 14.45 million tons by 2025. Capex incurred up to FY23 is R
Slide 9: 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 10: Current Capacities Across Steel Life Cycle
Current Capacities Across Steel Life Cycle Finished Steel 1.97 MTPA WRM 0.92 MTPA (Wire Rod & Wire Draw Mill) TMT 0.82 MTPA Iron Making Liquid Steel Structurals 0.20 MTPA DRI 2.53 MTPA SMS 2.01 MTPA (Direct Reduced Iron) (Steel Melting Shop) Pipe Mill 0.03 MTA 10
Slide 11: 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 12: 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% 23.2 12% 20.8 5.7 8% 1.9 2.9 8.1 27% 11% 17% 1.7 8.1 20% 8% 8.8 1.6 16% 10.2 1.8 17% 15% 1.5 19% 18% 1.5 17.7 14.7 24% 15% 9.9 12.1 11% 14% 18% 7.3 8% 2019 2020
Slide 13: 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 14: Export Opportunities
Export Opportunities 29% 57% 14% 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 15: Q4 & FY23 Financial Performance
Q4 & FY23 Financial Performance
Slide 16: Performance Highlights
Performance Highlights Q4 FY23 Revenue EBITDA PAT 18% -38% -40% y-o-y y-o-y y-o-y Rs. 3,380 Rs. 413 Rs. 259 Crores Crores Crores FY23 Revenue EBITDA PAT 21% -43% -51% y-o-y y-o-y y-o-y Rs. 12,610 Rs. 1,486 Rs. 848 Crores Crores Crores
Slide 17: Q4 FY23 Performance Highlights
Q4 FY23 Performance Highlights Revenue from Operations EBITDA Profit After Tax 18% -38% -40% Rs. 3,380 crores y-o-y Rs. 413 crores y-o-y Rs. 259 crores y-o-y Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y 3.7% Y-o-Y 13.3% +23% -3% 8.6% 3.3% 3.8 5.2 3.6 4.9 +6%
Slide 18: FY23 Performance Highlights
FY23 Performance Highlights Revenue from Operations EBITDA Profit After Tax 21% -43% -51% Rs. 12,610 crores y-o-y Rs. 1,486 crores y-o-y Rs. 848 crores y-o-y Volumes (in lakh tonnes) Volumes (in lakh tonnes) Revenue Breakup Steel Products Y-o-Y 3.3% Y-o-Y +24% 3.4% 14.5% -15% 8.3% 16.4 19.3 Ferro Pr
Slide 19: 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 -12% +11% -8% -2% +4% +9% -4% +3% +10% 1,13,604 1,10,235 53,720 50,458 52,472 53,268 48,102 46,125 47,681 99,863 1,01,372 48,916 44,791 43,395 89,884 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY
Slide 20: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q4FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 3,380.1 2,856.8 18% 2,921.7 16% 12,610.2 10,394.0 21% Cost of Material Consumed 2525.16 1,795.3 2,080.3 8,916.3 6,460.9 Purchase of Stock 2.4 8.1 174.5 292.6 32.5 Ch
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crs.) Mar-23 Mar-22 Particulars (Rs. Crs.) Mar-23 Mar-22 Non ‐ Current Assets Equity Share Capital 255.1 255.1 Property, Plant and Equipment 2,867.8 2,383.5 Other Equity *6,907.4 5,579.6 Capital Work-in-Progress 2,768.9 768.3 Total Equity 7,162.5 5,834.7 R
Slide 22: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.)* Net Debt (Rs. Crs.) 1,152 960 1,050 785 448 448 656 246 534 -477 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.18 0.07 0.07 0.48 0.30 0.18 -0.08 -0.18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Slide 23: 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 24: Annexure
Annexure
Slide 25: 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 26: 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 12.73 MTPA comprising of intermediate and f
Slide 27: 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 28: 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 1.32 0.06 2.54 (Direct Reduced Iron) Billets 0.87 1.14 2.07 TMT, WDM, SRM 0.92 1.05 1.97 Capt
Slide 29: 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 3 Captive Plants Jamuria Total Capacity
Slide 30: 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 31: M&A: Ramsarup Industries
M&A: Ramsarup Industries • Ramsarup Industries is a Kolkata based steel company which acquired by Shyam Metalics via NCLT Super • A special purpose vehicle, SS Natural & Resources Pvt Ltd was Shyam Metalics Smelters Ltd setup to acquire Ramsarup Industries, wherein 60% is owned & Energy Ltd by Shyam
Slide 32: Greenfield Expansion
Business Update: Greenfield Expansion- Cold Rolling Mill Capacity Total Capex Greenfield Expansion Phase I 2,50,000 Ton Rs. 603 Crs Phase II 1,50,000 Ton • To setup a greenfield project for a cold rolling mill spread over 94 acres of land at Jamuria, West Bengal. • Project approved under the PLI sch
Slide 33: 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 34: 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
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