Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q4 FY2020 Earnings Presentation
34 slides from Sarda Energy & Minerals's earnings presentation, Jun 24, 2020
Slide 1: Cover letter: Investor Presentation on Q4/FY20 results
Industrial Growth Center, Siltara An ISO 9001, ISO 14001 & OHSAS 18001 Raipur (CG) 493111, India Certifiedcompany Tel: +91 771 2216100 Fax : +91 771 2216198/99 PAN No.: AAACR6149L Cena gine wumenar etre See CIN : L27100MH1973PLC 016617 www.seml.co.in info@seml.co.in 24 June, 2020 BSE Ltd National St
Slide 2: Mining, Steel, Ferro-Alloys, Hydro
MINING STEEL F E R R O-A L L O Y S HYDRO
Slide 3: 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 4: Agenda
Agenda 1 Q4 & FY20 : Result Highlights 2 SEML – Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 5: Q4 & FY20: Result Highlights
Ail Q4 & FY20 : Result Highlights
Slide 6: Covid-19 Impact
Covid-19 Impact Manufacturing operations were shutdown from 25th March to 16th April 2020 From 16th April, steps were taken to restart the manufacturing facility in a phased manner and Plants Operation Plants reached to near normal capacity by 3rd week of May 2020 The Company expects to achieve 60-9
Slide 7: Key Operational Highlights – FY20
Key Operational Highlights – FY20 Highest Ever Production of Steel Products and Highest Ever Generation of Hydro Power Wire Rod Production 1.42 Lac MT Billet Production 1.75 Lac MT Hydro Power Sponge Iron 115 Mn Units 3.25 Lac MT Pellet Production 6 Lac MT 6
Slide 8: Key Financial Highlights - Consolidated
Key Financial Highlights - Consolidated * Total Income (Rs Cr) # EBITDA (Rs Cr) PAT (Rs Cr) 2,287 2,341 499 205 207 1,983 472 397 1,521 1,502 127 128 284 230 16 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 • FY20 Revenue from operations impacted due to a) Maintenance sh
Slide 9: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q4FY20 Q4FY19 YoY Q3FY20 QoQ FY20 FY19 YoY Revenues 438 496 -12% 456 -4% 2,000 2,324 -14% Other Income -54 25 15 -17 17 Total Income 384 521 -26% 472 -19% 1,983 2,341 -15% Raw Material 273 326 297 1,293 1,493 Employee Expenses 18 26 23 88 87 Other Op
Slide 10: Balance Sheet Highlights - Consolidated
Balance Sheet Highlights - Consolidated Rs. Crore Mar-20 Mar-19 Rs. Crore Mar-20 Mar-19 Shareholder’s Funds 1,867 1,743 Non-current assets 2,796 2,539 Share capital 36 36 Fixed assets 1,359 1,388 Other Equity 1,831 1,707 Capital W.I.P 1,365 1,054 Minority interest 100 132 Financial assets 25 38 Non-
Slide 11: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q4FY20 Q4FY19 YoY Q3FY20 QoQ FY20 FY19 YoY Revenues 281 351 -20% 342 -18% 1,424 1,653 -14% Other Income -9 17 36 61 32 Total Income 272 367 -26% 377 -28% 1,485 1,685 -12% Raw Material 171 226 229 920 1,027 Employee Expenses 13 21 18 68 69 Other Operati
Slide 12: Balance Sheet Highlights - Standalone
Balance Sheet Highlights - Standalone Rs. Crore Mar-20 Mar-19 Rs. Crore Mar-20 Mar-19 Shareholder’s Funds 1,731 1,566 Non-current assets 1,404 1,300 Share capital 36 36 Fixed assets 551 578 Other Equity 1,695 1,530 Capital W.I.P 26 19 Financial assets 809 687 Non-current liabilities 306 165 Other no
Slide 13: Operating Performance (Volumes)
Operating Performance (Volumes) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billets (‘000 MT) 80 79 45 63 66 34 44 43 38 32 12 4 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 31 29 34 32 32 32 6 6 6 24 23 5 Q4FY19 Q4FY20 Q4FY19 Q4
Slide 14: Steel Business: Product wise Incremental Realization
Steel Business: Product wise Incremental Realization Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 45000 40000 1,962 1,745 1,458 2,496 3,611 2,631 35000 4,593 6,278 5,032 5,477 2,383 2,578 2,450 3,867 30000 4,679 3,789 16,508 13,756 Rs. /MT 12,907 14,011 25000 13,795 10,669 10,722 10,
Slide 15: Quarterly Generation & Sales - Power Business
Quarterly Generation & Sales - Power Business Power (Thermal) All Fig. in Mn KwH unless specified Power (Hydro) 18 18 252 228 8 8 39 28 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Thermal Power (Captive) Capacity : 162 MW Generation Sales 14
Slide 16: SEML – Consistent & Disciplined Growth
SEML – Consistent & Disciplined Growth
Slide 17: SEML at Glance (FY20)
SEML at Glance (FY20) Steel Business Hydro Power Financials Pellet Production Billet Production Operational Capacity Revenue from Operations EBITDA* 6 Lac MT 1.76 Lac MT 28.8 MW INR 2,000 Cr INR 397 Cr Wire Rod Production 1.42 Lac MT Capacity Under Execution PAT Dividend Per Share 120 MW INR 128 Cr
Slide 18: Sarda's Transformation Journey
Sarda’s Transformation Journey… ▪ Billet capacity proposed to be ▪ Company started 24 MW captive ▪ Acquired Raipur Wires and Steel as increased by 50% power plant and Ferro Alloy plant a sick unit in 1979 in 2001 ▪ Pellet Capacity proposed to increase ▪ Installed 10 MT electric arc furnace from 6,00
Slide 19: Under Strong Leadership
…Under Strong Leadership Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • MS in Industrial Administration from experience in Iron and Steel Industry Purdue University, USA • Responsible for steering SEML towards the path of growth • Industry experience of more than
Slide 20: Company's Asset Footprint
Company’s Asset Footprint Plants / Facilities Hydro Plant at Uttarakhand Hydro Plant at Sikkim Hydro Plant at Gullu Rajnandgaon (Iron Ore mine) to Siltara (SEML Steel Plant (SEML** Plant) at Siltara Plant) 140 kms Ferro Alloy Plant at Vizag under SMAL* Iron Ore Mine at Rajnandgaon Lower transportati
Slide 21: Strategic Priorities
Strategic Priorities
Slide 22: Strategic Priorities
Strategic Priorities Vertically Integrated Steel Player 1 Better Control / Lower Cost of Production Hydro Business Expansion 2 Visibility of incremental Stable Cashflow Strategic Priorities Disciplined Growth 3 Consistently improving Balance Sheet Strength Health, Safety & Social Responsibility 4 Fo
Slide 23: Vertically Integrated Steel Player
1 Vertically Integrated Steel Player… Iron Ore Pellets Sponge Iron Billets Wire Rods HB Wires Semi finished steel product 140 km near SEML Plant, Produced from Iron Ore fines & Produced from captive Iron Ore Hot rolled product made from HB Wires- Wire rods are cold Description Siltara sold domestica
Slide 24: Presence in Ferro Alloys
… presence in Ferro Alloys • Two operational plants located at Raipur and Vizag with a total installed capacity of Ferro Alloys Exports (‘000 MT) 111 MVA • Manufactures manganese-based Ferro Alloys sold domestically as well exported to 86 other countries 64 • Leading exporter of the Ferro Alloys 47
Slide 25: Hydro Power Expansion
2 Hydro Power Expansion… Operational Capacity Under Execution Uttarakhand Chhattisgarh Sikkim Chhattisgarh 4.8 MW 24.9 MW 96 MW 24.9 MW Operational since 2008 Operational since 2017 To be commissioned in October 2020* Debt free operation & operated at 47% PLF Expected long term PLF to be around 40-4
Slide 26: Disciplined Growth
3 Disciplined Growth Consistently improving Balance Sheet Strength 2,500 3 All Fig. in Cr. unless specified 2,132 2.5 Working 2,000 1,867 Rs. Cr Term Loan Total 1,807 Capital 1,768 1,743 1,702 1,576 2 1,537 Steel 562 164 726 1,500 1,358 1,223 1.5 Hydro Operational 110 - 110 1.45 1.26 Total 672 164 8
Slide 27: Focus on Safety, Health & Social Responsibility
4 Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social (including minor ) Responsibility • Adopted 90 single-teacher schools in the • SEML awarded - Appreciation Award for tribal areas of Chhattisgarh Best Company in the Entire Eastern • Actively sponsors medical f
Slide 28: Annual Financial Highlights
Annual Financial Highlights
Slide 29: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr FY16 FY17 FY18 FY19 FY20 Revenues 1,486 1,434 2,217 2,324 2,000 Other Income 35 67 70 17 -17 Total Income 1,521 1,502 2,287 2,341 1,983 Raw Material 964 942 1,478 1,493 1,293 Employee Expenses 68 75 77 87 88 Other Operating Expenses 259 200 260 261 2
Slide 30: Balance Sheet Highlights – Consolidated
Balance Sheet Highlights – Consolidated INR in Cr FY16 FY17 FY18 FY19 FY20 Share Capital 36 36 36 36 36 Tangible Networth 1,230 1,358 1,577 1,707 1,831 Long Term Borrowings 966 1,015 1,059 1,078 1,436 Other Liabilities 595 706 741 860 796 Total Liability 2,827 3,115 3,413 3,682 4,100 Net Fixed Asset
Slide 31: Yearly Volume Trend
Yearly Volume Trend Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 325 600 600 600 600 304 302 175 278 266 157 495 135 133 136 438 384 176 313 161 143 150 148 253 208 38 33 29 30 20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Productio
Slide 32: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 142 149149 145 139 30 29 29 128 119 118 28 124 123 27 26 121 113 113 101 23 107 97 92 21 20 21 86 72 64 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Production for FY20 was a
Slide 33: Yearly Power Generation
Yearly Power Generation Power (Thermal) – Mn units Power (Hydro) – Mn units 1,182 115 115 1,076 1,013 1,010 999 85 85 74 74 463 197 173 18 18 19 19 145 142 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: Thermal Power is largely consumed for captive use; Thermal power generation in FY20 impa
Slide 34: Thank You
Thank You Mr. Nilay Joshi (Head – Corporate Finance) Mr. Gaurang Vasani / Mr. Abhishek Bhatt njoshi@seml.co.in vgaurang@stellar-ir.com / abhishek@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
Sarda Energy & Minerals — Q4 FY2020 Earnings Presentation on 6ix