Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q1 FY23 Earnings Presentation
40 slides from Shyam Metalics & Energy's earnings presentation, Aug 2, 2022
Slide 1: Securing tomorrow with today's strength
Securing tomorrow with today’s strength Investor Presentation August 2022
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: Key Updates for Q1 FY23
Key Updates for Q1 FY23 Strengthening Launched Salman Khan as Brand Ambassador, new products Brand gaining traction • On track to increase the existing integrated installed facility of 8.04 million tons to Update on Capex 14.45 million tons by 2025 • Pursuant to the direction of Hon’ble NCLT, Monito
Slide 4: Launched Salman Khan as Brand Ambassador
Launched Salman Khan as Brand Ambassador 4
Slide 5: Product Launch: SEL Tiger Grills n Steels
Product Launch: SEL Tiger Grills n Steels Light structural steel products integrate with strength to create a grill steel range of superior quality. The intricate manufacturing procedure used makes this range perfect for shaping into any design 5
Slide 6: 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 7: Iron Making, Liquid Steel, Finished Steel capacities
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 IPO on 30th June ex
Slide 8: Company Overview
Company Overview
Slide 9: 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 10: 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 11: Value Propositions
Value Propositions 1 2 3 4 5 Logistical Advantage Captive Power for Backward & Forward Flexible & Diversified Strong Brand & & Infrastructure Integration with ~82% power Product Mix Distribution Network Advantage with presence across the requirement Private Railway Sidings Value Chain 6 7 8 9 Capaci
Slide 12: 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 13: 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 8.04 MTPA comprising of intermediate and fi
Slide 14: Detailed Plant Wise Capacities - Existing
Detailed Plant Wise Capacities - Existing Product –Wise Pandoli, Jamuria, Mangalpur, Capacity (MTPA) TOTAL Odisha West Bengal Odisha Iron Pellets 1.8 1.8 3.6 Ferro Alloys 0.10 0.07 0.04 0.21 DRI 0.96 1.09 0.06 2.11 (Direct Reduced Iron) Billets 0.64 0.54 1.18 TMT, WDM, SRM 0.41 0.49 0.90 Captive Pow
Slide 15: Current Capacities Across Steel Life Cycle
Current Capacities Across Steel Life Cycle Finished Steel 0.9 MTPA WRM 0.4 MTPA (Wire Rod Mill) TMT 0.27 MTPA Iron Making Liquid Steel Structurals 0.20 MTPA DRI 2.11 MTPA SMS 1.18 MTPA (Direct Reduced Iron) (Steel Melting Shop) Pipe Mill 0.3 MTA 15
Slide 16: Foray into Aluminium Foil segment
Foray into Aluminium Foil segment Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand • Capacity: 40, 000 TPA • Plant installed by Achenback (Germany) a pioneer in the industry • Spread over 5 acres • Rolling range: 40 to 5 micron with annhealing capability, customised as per demand 16
Slide 17: …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 8.04 MTPA currently to 14.45 MTPA and captive power plants aggregate installed capacity from 267 MW to 357 MW. These pro
Slide 18: Diversified & Interchangeable Product Mix
Diversified & Interchangeable Product Mix Capacity (Million MTPA) FY18 FY19 FY20 FY21 FY22 Iron Pellet 0.90 0.90 2.4 2.4 3.6 Sponge Iron 1.01 1.01 1.27 1.39 2.11 Billets 0.54 0.63 0.80 0.89 0.94 Existing Products TMT, Structural Steel, 0.25 0.25 0.82 0.82 0.90 Wire Rods & Pipes Ferro Alloys 0.19 0.2
Slide 19: Increasing share of B2C/Value Added Products
Increasing share of B2C/Value Added Products Structural Products are hot rolled products of special TMT Bars are high-strength reinforced bars having a forms like rounds, angles, channels & beams tough outer core and soft inner core We not only make structurals of standard dimensions, but also Custo
Slide 20: Huge Export Potential
Huge Export Potential 29% 71% 17 Countries Exports to countries like Steel products both upstream and Ferro Chrome USA, Japan, Korea, Italy, downstream including Angles, Ferro Manganese and Nepal, Bangladesh Beams, Billets, Channels, Wire Rods, Silico Manganese Products MS Round Coils and Sponge Iro
Slide 21: 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 22: Lowest Cost Captive Power
Lowest Cost Captive Power • 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 Capa
Slide 23: Waste to Value
Waste to Value Efficient use of by products: Effluents/Wastes from all Steam generated used Fly ash bricks are Washery rejects used in in production of Power the production activity are utilized in various product and then in Ferro Alloys created from industrial Power Plant wastes verticals to creat
Slide 24: Capacity Expansion - Share of High Value Products to Increase
Capacity Expansion –Share of High Value Products to Increase Break-up of Capacity Expansion (MTPA) 14.4 Capacity Expansion is on the existing land, will help Company augment revenues, better cost controls, 6.7 increase in profitability Target completion between FY22 and FY25 7.7 0.2 0.2 Total Capex
Slide 25: Revenue mix skewed towards Finished Steel
Revenue mix skewed towards Finished Steel Revenue Mix 19% 18% 16% 17% 17% Flexibility to Sell Intermediate Product, use for 17% 23% Captive Consumption 37% 38% 40% 25% 24% 12% 8% 11% 9% 27% 20% 17% 18% 24% 18% 11% 14% 10% 2019 2020 2021 2022 Q1 FY23 Ferro Alloys TMT, Structural and Pipes Steel Bille
Slide 26: Strategic Initiatives
Strategic Initiatives
Slide 27: IT Initiatives
IT Initiatives Data Traffic Data Knowledge Automation Integration Management Analytics & AI Partners Focus On High Value Easy Access Reduce TAT for vehicles Consistent Availability Activities Gate and Weighbridge Consistent Presentation Data Integrity Automation Decision Dashboards Real-time data lo
Slide 28: Impact of IT Initiatives
Impact of IT Initiatives Employee Skill Development People Agnostic ERP SAP S4 HANA Improved Business Performance Reduced Paper Assessment Documentation Digitisation Monitoring of Business Operational Operations Excellence Customer Satisfaction Enhanced ROI 28
Slide 29: Sustainable Development Goals
\, SUSTAINABLE s"% SHYAM " ay DEVELOPMENT Gé ‘ALS \ LNs 44 17 GOALS TO TRANSFORM OUR WORLD GOOD HEALTH AND WELL-BEING CLEAN WATER AND SANITATION y | CLIMATE 1 LIFE | UFE 1 PEACE, JUSTICE | PARTNERSHIPS ACTION BELOW WATER ON LAND AND STRONG FOR THE GOALS @ INSTITUTIONS SUSTAINABLE <> % GOALS 29
Slide 30: Commissioned ESG Study
Commissioned ESG Study In our move towards sustainable growth, ESG framework provides an opportunity to create a systematic approach for tangible outcomes. Growlity Inc. management consultants has carried out comprehensive diagnostic study on SMEL’s ESG fundamentals & compliance status. In Phase 1 o
Slide 31: Q1 & FY23 Financial Performance
Q1 & FY23 Financial Performance
Slide 32: Performance Highlights Q1 FY23
Performance Highlights Q1 FY23 Revenue EBITDA PAT 31% -12% -10% y-o-y y-o-y Rs. 3,223 y-o-y Rs. 607 Rs. 414 Crores Crores Crores
Slide 33: Strong Q1 FY23 Performance
Strong Q1 FY23 Performance Revenue from Operations EBITDA Profit After Tax 31% -12% -10% Rs. 3,223 crores y-o-y Rs. 607 crores y-o-y Rs. 414 crores y-o-y Revenue Breakup Volumes (in lakh tonnes) Q-o-Q 10.5% 8.3 +4% 8.3 17.2% 8.0 Ferro Products 0.4 0.5 0.4 18.3% 3.3 Iron Pellets 4.3 3.4 8.7% Steel Pr
Slide 34: Per Tonne Realizations
Per Tonne Realizations Ferro Products Finished Steel Steel Billets +24% +25% +21% 1,18,619 57,743 50,770 95,961 46,368 42,066 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Sponge Iron Iron Pellets +16% -30% 33,204 14,243 28,678 9,999 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 34
Slide 35: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) - Shyam Metalics and Energy Limited Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q FY22 Revenue from operations 3,223.2 2,465.0 30.7% 2,856.8 12.8% 10,393.9 Cost of Material Consumed 1,996.5 1,490.4 1,795.3 6,460.9 Purchase of Stock 98.5 7.4 8.1 32.5
Slide 36: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.) Net Debt (Rs. Crs.) 1,050 960 785 448 656 347 246 480 534 -477 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.19 0.18 0.07 0.50 0.48 0.18 -0.08 -0.18 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Ma
Slide 37: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.09x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to significant (as of 31st March 2022) Disciplined Capital Allocation strategy reduction in Working capital requirements = One of Lowest Gearing amongst competitors* Be
Slide 38: 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 39: CSR Initiatives
CSR Initiatives • Water Conservation- Check dam, Pond , landscaping, Plantation, • Promotion of solar Light Sustainability • Solar irrigation Pumps • Promotion of Organic Farming • Running sewing center, computer training center • Alternate source of income via enterprise development, skill Skill de
Slide 40: Shyam Metalics & Energy Limited Investor Relations Partners
Shyam Metalics & Energy Limited Mr. Trilochan Sharma +91 9831298290 trilochan.sharma@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 Me
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