Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q1 FY22 Earnings Presentation
35 slides from Shyam Metalics & Energy's earnings presentation, Jul 20, 2021
Slide 1: Shyam Metalics And Energy Limited Investor Presentation
Shyam Metalics And Energy Limited Investor Presentation Q1 FY22 - July 2021
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: Shyam Metalics at a Glance
Shyam Metalics at a Glance • Leading Integrated Steel and 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, National Highways and • Operates
Slide 4: Value Propositions
Value Propositions 1 2 3 4 5 Logistical Advantage Captive Power for Backward & Forward Strong Brand & & Infrastructure Flexible & Diversified ~81% power Integration with Distribution Network Advantage with Product Mix requirement presence across the Private Railway Value Chain Sidings 6 7 8 9 Capaci
Slide 5: Focus on Quality, Flexibility to alter Product Mix, Greater Control on Operations
Focus on Quality Flexibility to alter Product Mix Greater Control on Operations Multiple sale points across Value Chain The integrated nature of our operations enable us to maintain better control over our quality Lowest Per Tonne Capex in the Industry and consistency in our performance
Slide 6: 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 & Steel melting Pellets Sponge Billets Iron Ore Fines Pelettization Shop Ir
Slide 7: 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 Brownfield expansion Bengal with aggregate installed capacity of 5.61 MTPA comprising o
Slide 8: …Lowest Capex compared to the Industry
…Lowest Capex compared to the Industry • Brownfield capacity expansion expected to increase aggregate installed metal capacity (comprising of intermediate and final products) from 5.71 MTPA to 11.60 MTPA and captive Advantages of Brownfield Expansion power plants aggregate installed capacity from 22
Slide 9: Interchangeable Product Mix, B2B and B2C
Interchangeable Product Mix Catering to both B2B and B2C Top 5 Customers contribute <15% Insulated from the threat of imports SEL is every engineers first choice Each product has the potential for Exports
Slide 10: Diversified & Interchangeable Product Mix
Diversified & Interchangeable Product Mix Capacity (Million MTPA) FY18 FY19 FY20 FY21 Iron Pellet 0.90 0.90 2.4 2.4 Sponge Iron 1.01 1.01 1.27 1.39 Existing Products Billets 0.54 0.63 0.80 0.89 TMT, Structural Steel, 0.25 0.25 0.82 0.82 Wire Rods & Pipes Ferro Alloys 0.19 0.21 0.21 0.21 Captive Powe
Slide 11: Increasing share of B2C/Value Added Products
Increasing share of B2C/Value Added Products Structural Products are hot rolled products of TMT Bars are high-strength reinforced bars special forms like rounds, angles, channels & having a tough outer core and soft inner core beams We not only make structurals of standard dimensions, but also Custo
Slide 12: Huge Export Potential
Huge Export Potential 46% 20% 34% 23 Countries Exports to countries Steel products both upstream and Ferro Chrome Pellets like USA, Japan, Korea, downstream including Angles, Ferro Manganese and Italy, Nepal, Beams, Billets, Channels, Wire Silico Manganese Products Bangladesh Rods, MS Round Coils an
Slide 13: Close Proximity to Raw Material, Strong Logistics, Lowest Cost Captive Power
Close Proximity to Raw Material Strong Logistics Infrastructure Lowest Cost Captive Power Waste used as Productive Inputs Committed to deliver Excellence
Slide 14: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Strategically located in the mineral rich East Indian region 42 distributors stock and sell the finished products across 13 states and 1 Union Territory Raw Material Sources are within 250 kms Kolkata We sell 70% of our products Haldia within the v
Slide 15: Lowest Cost Captive Power
Lowest Cost Captive Power • Power consumed by the plants are primarily produced in-house by the captive 4 Captive Plants power plants Sambhalpur Total Capacity of 118 MW • Captive power plants utilise non fossil fuels such as waste, rejects, heat and gas 3 Captive Plants generated from the operation
Slide 16: Waste to Value
Waste to Value Efficient use of by products: Effluents/Wastes from all Steam generated Fly ash bricks are Washery rejects used used in production of the production activity are utilized in various product created from in Power Plant Power and then in verticals to create a set of High Value-added Pro
Slide 17: Capacity Expansion, Newer Products, Strengthening Brand SEL
Capacity Expansion Launch of Newer Products Strengthening Brand ‘SEL’ Continue to remain one of the lowest cost producer of steel in India
Slide 18: Capacity Expansion – Share of High Value Products to Increase
Capacity Expansion –Share of High Value Products to Increase Break-up of Capacity Expansion (MTPA) 0.2 0.2 11.5 Capacity Expansion is on the existing land, will 2.0 0.2 0.2 0.0 0.0 help Company augment revenues, better cost 1.2 controls, increase in profitability 2.0 0.8 1.1 0.6 0.9 2.9 0.6 Target c
Slide 19: Revenue mix skewed towards Finished Steel
Revenue mix skewed towards Finished Steel Revenue Mix 19% 18% 16% 31% Flexibility to Sell Intermediate Product, use for 17% 23% Captive Consumption 15% 37% 25% 24% 19% 12% 11% 25% 27% 20% 24% 9% 11% 14% 2018 2019 2020 2021 Ferro Alloys TMT, Structural and Pipes Steel Billets Sponge Iron Iron Pellets
Slide 20: Strengthening Brand 'SEL'
Strengthening Brand ‘SEL’ TMT STRUCTURE WIRE RODS TMT are used for the construction of buildings, Towards forward integration, SMEL has set up high transmission towers, industrial sheds, structures, Structural steel describes hot rolled steel products quality Wire Rod manufacturing & Wire Drawing ro
Slide 21: Highest ever EBITDA, Least Leveraged, Record Profitability
Highest ever EBITDA Least Leveraged Record Profitability Track Record Disciplined Capital Allocation We have delivered consistent growth both in terms of financial and operational parameters
Slide 22: Strong Q1 FY22 Performance
Strong Q1 FY22 Performance Revenue from Operations EBITDA Profit After Tax +170% +353% +470% Rs. 2,465 crores Rs. 688 crores Rs. 458 crores Revenue Breakup Volumes (in lakh tonnes) Blended EBITDA per tonne (Rs.) +37% +175% 8.3 19,194 0.4 Y-o-Y 15.7% 6.1 1.8 0.2 25.7% 1.0 1.8 1.2 6,973 3.7 4.3 Q1 FY2
Slide 23: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs.) Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q FY21 Total Revenue 2,465.0 911.8 170% 2,350.5 5% 6,297.1 Cost of Material Consumed 1,490.4 541.9 1,280.0 3,716.7 Purchase of Stock 7.4 0.0 63.0 67.6 Change in Inventories -87.9 67.4 35.6 49.0 Gross Profit 1,055.1 302.
Slide 24: Strong FY21 Performance
Strong FY21 Performance Revenue from Operations EBITDA Profit After Tax +44% +109% +148% Rs. 6,297 crores Rs. 1,394 crores Rs. 844 crores Revenue Breakup Volumes (in lakh tonnes) Blended EBITDA per tonne (Rs.) +34% +108% 15.7% 31.15 11,809 24.4% 1.65 5.67 23.18 1.50 6.14 8.85 5,670 11.1% 36.7% 2.90
Slide 25: Strong Operating Performance
Strong Operating Performance Revenues (Rs. Crs.) EBITDA (Rs. Crs.) Profit After Tax (Rs. Crs.) 6,297 1,394 844 4,606 637 4,376 945 528 3,747 701 666 340 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 CAGR % 19% 26% 17% FY20 was lower due to impact of CoVID-19 in March 2020 25
Slide 26: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.22x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to more (as of 31st March 2021) than 50% reduction in Working capital Disciplined Capital Allocation strategy requirements = One of Lowest Gearing amongst competitors*
Slide 27: Balance Sheet as on 31st March 2021
Balance Sheet as on 31st March 2021 ASSETS (Rs. Crs.) Mar-21 Mar-20 Particulars (Rs. Crs.) Mar-21 Mar-20 Non ‐ Current Assets Equity Share Capital 233.6 233.6 Other Equity 3,400.4 2,592.8 Property, Plant and Equipment 1,758.9 1,968.5 Total Equity 3,634.0 2,826.4 Capital Work-in-Progress 506.4 235.4
Slide 28: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) Mar-21 Mar-20 Cash Flow from Operating Activities Profit before Tax 1,054.9 295.4 Adjustment for Non-Operating Items -317.8 -370.0 Operating Profit before Working Capital Changes 1,372.7 665.4 Changes in Working Capital 134.4 701.9 Cash Generated fr
Slide 29: Our Values
Vision Statement Management Team OUR VALUES Listing on BSE & NSE Corporate Social Responsibility Integrity | Ownership | Collaboration | Commitment
Slide 30: Vision
Vision Statement VISION Enhanced Relentless Process Value Creation Stakeholder pursuit of Innovation Participation Opportunity 30
Slide 31: Experienced Leadership & Team
Experienced Leadership & Team Mahabir Prasad Agarwal Brij Bhushan Agarwal Sanjay Kumar Agarwal Non-Executive Chairman Vice Chairman & MD Joint Managing Director He holds a bachelor’s degree in commerce, with honours, He holds a bachelor’s degree in commerce from the He has over three decades of expe
Slide 32: Experienced Leadership & Team
Experienced Leadership & Team Venkata Krishna Nageswara Yudhvir Singh Jain Ashok Kumar Jaiswal Rao Majji Independent Director Independent Director Independent Director He holds a bachelor’s degree in science, with honours, from He holds a bachelor’s degree in science from Banaras Hindu He holds a ba
Slide 33: Shyam Metalics Listing
Shyam Metalics Listing Shyam Metalics listed on NSE and BSE on 24th June, 2021 Total Issue Size Offer Price Equity Shares of ₹10 ₹306 per equity share aggregating up to ₹909 crores Times Primary Issue Subscription Equity Shares of ₹10 119.81x aggregating up to ₹657 crores 33
Slide 34: CSR Initiatives
CSR Initiatives • Yearly Eye & Medical Camp for Villagers • Free Ambulance & Drinking water Services for villagers Rural Health • New Health Center & Homeopathy Clinic • FREE Medicine & Spectacles and Blood Donation Camp • FREE Coaching Center for Economic backward Section • Computer Training Center
Slide 35: Shyam Metalics & Energy Limited Investor Relations
Shyam Metalics & Energy Limited Mr. Pankaj Harlalka pankaj.harlalka@shyammetalics.com Investor Relations Partners Ms. Payal Dave payal.dave@linkintime.co.in Mr. Deven Dhruva Shyam Metalics & Energy Ltd. +91 9833373300 CIN No. : U40101WB2002PLC095491 deven.dhruva@linkintime.co.in Trinity Tower, 7th F
Shyam Metalics and Energy — Q1 FY22 Earnings Presentation on 6ix