Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY2019 Earnings Presentation
36 slides from Sarda Energy & Minerals's earnings presentation, August 2018
Slide 1: Investor Presentation August 2018
August 2018 INVESTOR PRESENTATION
Slide 2: Discussion Summary
01 Company Overview 02 Business Overview Strategic Priorities & 03 Growth Outlook 04 Financial Results DISCUSSION 05 Annexure SUMMARY 1
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Health and Safety
Health and Safety Assets & Operational Detail • At SEML, safety is taken as top priority. The workers are equipped with necessary safety gears on their operational role • Regular medical check-up and in house medical facilities ensures that workers keep in good health • The incident rate (including
Slide 5: Key Milestones
Key Milestone Key Milestone Installed 25 TPD Electric Arc Coal mines and 4.8 MW Furnance in 1990 Hydro power plant started operations in 2008-09 Acquired 3 Power units in 1993-94 Pellet plant commenced operations in 2009-10 Installed Two Sponge Iron Kilns of 30K MT each in 1993 66 MVA Ferro Alloys p
Slide 6: Company at a Glance
Company at a Glance Glance Operations Financials Revenue grown at 21% CAGR in Vertically integrated producer of Financial Steel Performance last two years. EBITDA has steel with captive raw materials Grown 45% in the same period Leading Manufacturer and Debt to Equity stands at 0.79 in Ferro Low exp
Slide 7: FY2018 - A Landmark Year in Sarda History
Company FY2018 - Aatlandmark Glance a GlanceYear in Sarda History Pellet Highest ever Pellet production of 6 lakh tonne Billet highest ever production at 1.36 lakh tonne Ferro Alloys Highest ever production of 148982 MTs in FY2018 Hydro Power Highest ever energy generated 19.10 Mn units Revenue High
Slide 8: Operations: Geographical Footprint
Operations : Geographical Footprint Lower transportation cost due to close proximity to raw material and end users 4.8MW in Uttarakhand 96MW in Sikkim Rajnandgaon (Iron Ore mine) to Siltara (SEML Plant) 140 kms 24MW in Gullu Iron ore mine in Rajnandgaon SEML plant in Siltara SMAL, VIZAG Ferro Alloy
Slide 9: Business and Product Offering
Product Offering Buiness Offerings Iron Ore Demand Driver Sponge Pellet & Iron Infrastructure & Urban development Steel Housing for All Wire Rod Billet & HB Wire Construction All types of Steel, demand Manganese Manganese aligned to increased in steel Silico Ferro demand Ferro – Alloys Requirement i
Slide 10: Board of Directors
Board of Directors Kamal Kishore Sarda, CMD Mechanical Engineer with 40 years experience in Iron and Steel Industry. He is responsible for steering SEML towards the path of growth Pankaj Sarda, Jt Managing Director Padam Kumar Jain, Director and CFO Uma Sarda, Director MS in Industrial Administratio
Slide 11: Strong Corporate Governance
Strong Corporate Governance Experienced Board Employee Engagement Values Majority consisting of independent Clarity on thought process related to Management has a culture of ethical directors from diverse field with rich business is clearly communicated to all values to be followed while working wit
Slide 12: Business Overview
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Slide 13: Steel Business: India's Steel Industry Overview
Steel Business India’s Steel Industry Overview India Crude Steel Production (Mn Tonne) Sector overview 102 110 • India became the 2nd largest crude steel producer in 2018, as large 100 97 public and private sector players strengthen steel production 89 90 capacity in view of rising demand. 90 82 80
Slide 14: Steel Business
Steel Business • Iron ore mines near SEML plant in Siltara • Production run rate of 5 lakh tonne with mine life of 30 Iron ore years • Pellets are produced from Iron Ore Fines and majority is sold in local markets, remaining is consumed captively for production of Pellet Sponge Iron. • The capacity
Slide 15: Steel Business: Iron Ore
Steel Business Iron Ore Assets & Operational Detail • Company’s operational Iron Ore mine has potential reserves of 180 Lakh MT and annual production output of 4 Lakh MT* • Semi-mechanised mine commenced operation in 2004 • Iron ore business act as a feeder to Pellet & Sponge Iron Plants Future Stra
Slide 16: Steel Business: Pellet Plant & Sponge Iron
Steel Business Pellet Plant & Sponge Iron Pellet Pellet Sponge Iron • Current production capacity of 6.0 lakh tonnes • Current production capacity of 3.6 lakh tonnes • 65% of the production is sold externally and remaining processed • Since India has ample supply of thermal coal, sponge iron is inte
Slide 17: Steel Business: Billet
Steel Business Billet Billet • Current production capacity of 2 lakh tonnes • 15% of the production is sold externally, remaining processed internally for further downstream production • The company plans to expand steel billet capacity to 3 lakh tonnes in FY 2019 • Well positioned with complete bac
Slide 18: Steel Business: Wire Rod and HB Wire
Steel Business Wire Rod and HB Wire Wire Rod • Current production capacity of 1.8 lakh tonne, with current capacity utilization of over 60% • Wire Rod is a hot rolled product made from hot charged Billets • High strength products offered at reasonable price in the local markets • Wire Rod is sold to
Slide 19: Ferro Alloys: India's Industry Overview
Ferro Alloys India’s Ferro Alloys Industry Overview Sector Overview • Ferro Alloys are vital additives for Steel making. • Ferro Alloys enhance the strength of the Steel and acts as a de- oxidant in Steel manufacturing • Approximately 1.5% of Manganese Alloy is required to produce each tonne of Stee
Slide 20: Ferro Alloy Business
Ferro Alloy Business Ferro Alloys Production (Lakh MT) • Company has two operational plants of Ferro Alloys which are located at Raipur and Vizag with a total installed capacity of 111 1.60 1.49 1.28 MVA 1.40 1.20 1.13 1.07 1.00 • The company manufacturers manganese based Ferro Alloys which 0.80 is
Slide 21: India Push For Hydro Energy
India Push For Hydro Energy Hydro Power Installed Capacity • Government of India has set a target of adding 175 GW of renewable power in the country by 50000 2022 44,478 45,293 45000 42,783 40,531 41,267 • Government has earmarked US$ 250 billion 40000 for renewable energy over next 5 years. 35000 •
Slide 22: Hydro Power Business
Hydro Power Business Sikkim 96MW & Uttarakhand Chhattisgarh Chhattisgarh 4.8MW 24MW 24MW Operational since Operational since Under Execution 2008 July, 2017 Operated at 45.42% PLF during Operation started in the mid of Sikkim power plant to be FY 14-17 year, expected PLF to be around commissioned in
Slide 23: Strategic Priorities and Growth Outlook
STRATEGIC PRIORITIES AND GROWTH OUTLOOK
Slide 24: Strategic Priorities
Strategic Priorities 01 02 03 04 Financial Discipline Profitable Growth Integrated Operations Identifying next growth avenues Maintain financial health of Gradually ramping up Iron Different business division Strategically expanding the company, with Debt Ore production capacity complements each ong
Slide 25: Project Expansion Plan
Sarda Energy Project Expansion Plan Capacity pre- Post-expansion Incremental Spend till date Remarks expansion Capacity Capex Steel Approvals are required and Pellets will also be 6.0 Lakh MT 7.5 Lakh MT Nil Nil (Pellet plant) sold externally along with captive consumption The upcoming Steel plant w
Slide 26: Financial Results
FINANCIAL RESULTS
Slide 27: Quarterly Production
Quarterly Production Ferro Alloys (MT) Power (Mn KWH) Steel (MT) Q1FY18 Q1FY19 Y-o-Y (%) 38,714 288 Iron ore Pellet 2,06,104 2,03,464 -1% Sponge Iron 68,720 77,378 13% 36,377 257 Steel Billet 32,216 37,095 15% Wire Rod 26,354 30,024 14% HB Wire 7,287 6,699 -8% Q1FY18 Q1FY19 Q1FY18 Q1FY19 • Ferro All
Slide 28: Results Highlights
Results Highlights Q1 FY19 YoY ANALYSIS (Consolidated) In Rs Mn REVENUES * EBITDA & EBITDA MARGIN% # PAT, & PAT MARGIN % 10.8% 6,236 16.7% 22.0% 7.1% 4,907 821 1,369 530 446 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 PAT PAT Margin % EBIDTA EBIDTA Margin % The revenues grew by 27% from Rs 490
Slide 29: Quarterly Segment Analysis
Quarterly – Segment Analysis REVENUE – Q1FY19 EBIT – Q1FY19 2% 0.1% 16.6% 22% 43.3% 40.1% 76% REVENUE – Q1FY18 EBIT – Q1FY18 0% 0.4% 15.3% 35% 39.3% 45.0% 65% Steel Ferro Alloys Power Others Steel Ferro Alloys Power 26 * Revenue split before inter segment revenue; Power segment had reported loss at
Slide 30: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (INR Mn) Q1FY19 Q1FY18 YoY change FY18 Steel 3107 2406 29% 9114 Ferro Alloys 2880 2755 5% 10809 Power 1189 933 27% 5348 Unallocated 4 24 -83% 96 Less Excise duty 429 NA Less Inter Segment Revenue 945 782 21% 3201 Total Income 6236 4907 27% 22166 COGS 3941 3488
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities (INR Mn) FY 18 FY 17 Assets (INR Mn) FY 18 FY 17 Equity Share Capital 360 360 Fixed Assets 21,420 19,824 Other Equity 16,289 14,046 Investments 548 225 Total Equity 16,649 14,407 Other Financial Assets 165 150 Deferred Tax Assets Borrowings 9,832 9,232 Other No
Slide 32: Annexure
SARDA ENERGY & MINERALS LTD. QSARDA
Slide 33: Sarda Energy: Financial Data
Sarda Energy : Financial Data 25000 Revenue (Mn) EBITDA (Mn) 21,737 20000 17,599 4,016 3,773 14,799 14,342 15000 2,170 10000 1,920 5000 0 FY 15 FY 16 FY 17 FY 18 FY15 FY16 FY17 FY18 2500 PAT (Mn) Debt Equity Ratio 2,057 2000 1.01 0.90 0.88 1500 1,277 1,270 0.79 1000 563 500 0 FY 15 FY 16 FY 17 FY 18
Slide 34: Annexure: Realization
Annexure Realization 80000 Trends in Sales Realization 72,122 70000 (INR/MT) 65,125 60000 58,208 55,890 54,312 54,306 50000 53,443 46,434 53,344 44,113 40000 34,244 33,898 33,639 32,480 35,079 32,110 30000 27,795 27,089 27587 28588 28963 26,013 26,040 23265 20000 18,561 21601 19,112 16,842 13,506 12
Slide 35: Annexure - Production & Sale Data
Annexure - Production & Sale Data External Production FY16 FY17 FY18 Q1FY19 FY16 FY17 FY18 Q1FY19 Sales Pellet ( MT) 494,916 599,925 599,950 203,464 Pellet ( MT) 252,750 207,786 383,831 150,519 Sponge Iron Sponge Iron 40,302 265,508 304,193 278,147 77,378 143,250 176,315 150,415 (MT) (MT) Steel Bill
Slide 36: Thank You
Aakash Mehta - IR Consultant Contact No: +91 98706 79263 Email: Aakash.mehta@dickensonir.com Ravindra Bhandari - IR Consultant Contact No: +91 92836 14197 Email: ravindra.bhandaro@dickensonir.com THANK YOU Padam Kumar Jain - CFO Contact No: +91 77122 14238 Email: pkjain@seml.com
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