Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY2021 Earnings Presentation
30 slides from Sarda Energy & Minerals's earnings presentation, Aug 10, 2020
Slide 1: Investor Presentation cover letter to exchanges on Q1 FY21 results
Industrial Growth Center, Siltara An ISO 9001, ISO 14001 & OHSAS 18001 Raipur (CG) 493111, India elma ont Tel: +91 771 2216100 @) ry Fax: +91 771 2216198/99 PAN No.: AAACR6149L CIN : L27100MH1973PLC 016617 SARDA ENERGY & MINERALS LTD. www.seml.co.in info@seml.co.in 10% August, 2020 BSE Ltd National
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 Q1FY21 : Result Highlights 2 SEML – Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 5: Q1FY21 : Result Highlights
Aull Q1FY21 : Result Highlights
Slide 6: Operating Under Covid-19
Operating Under Covid-19 Steel & Ferro alloys: Facilities at both Raipur and Vizag began calibrated resumption of work from mid-April 2020 and have seen a gradual ramp up since then; Both plants are now Hydro Power: No major impact operating at nearly normal levels of production Monthly Production V
Slide 7: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q1FY21 Q1FY20 YoY Q4FY20 QoQ FY20 FY19 YoY Revenues 347 555 438 2,000 2,324 Other Income 38 11 -54 -17 17 Total Income 386 566 -32% 384 0% 1,983 2,341 -15% Raw Material 216 350 273 1,293 1,493 Employee Expenses 21 25 18 88 87 Other Operating Expenses
Slide 8: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q1FY21 Q1FY20 YoY Q4FY20 QoQ FY20 FY19 YoY Revenues 231 421 281 1,424 1,653 Other Income 19 8 -9 61 32 Total Income 251 429 -42% 272 -8% 1,485 1,685 -12% Raw Material 148 254 171 920 1,027 Employee Expenses 17 20 13 68 69 Other Operating Expenses 31 53
Slide 9: Operating Performance (volumes)
Operating Performance (volumes) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billets (‘000 MT) 199 82 51 144 125 46 25 77 33 23 11 3 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 40 35 6 6 30 30 27 27 5 5 22 18 Q1FY20 Q1FY21 Q1FY20
Slide 10: Steel Segment: Product wise Incremental Realization
Steel Segment: 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 1,849 2,450 3,867 30000 3,409 4,679 3,789 16,508 13,756 Rs. /MT 12,907 14,011 25000 13,795 10,669
Slide 11: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Power (Thermal) All Fig. in Mn KwH unless specified Power (Hydro) Generation Sales 20 20 276 10 10 187 51 11 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Thermal Power (Captive) Capacity : 162 MW Hydro Power Capacity : 29.7 MW Note: Thermal power generation in Q1FY21 was i
Slide 12: SEML – Consistent & Disciplined Growth
SEML – Consistent & Disciplined Growth
Slide 13: SEML at Glance (FY20)
SEML at Glance (FY20) Steel Business Hydro Power Financials Pellet Production Billet Production Operational Capacity 6 Lac MT Revenue from Operations EBITDA* 1.76 Lac MT 28.8 MW INR 2,000 Cr INR 396 Cr Wire Rod Production 1.42 Lac MT Capacity Under Execution PAT Dividend Per Share 120 MW INR 128 Cr
Slide 14: 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 15: 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 • Industry experience of more than 13 the path of gro
Slide 16: 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 17: Strategic Priorities
Strategic Priorities
Slide 18: 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 19: 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 produced by continuous c
Slide 20: 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 21: 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 Nov 2020* Debt free operation & operated at 47% PLF Expected long term PLF to be around 40-45% L
Slide 22: 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 23: Focus on Safety, Health & Social Responsibility
4 Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social (including minor ) Responsibility • SEML awarded - Appreciation Award for • Adopted 90 single-teacher schools in the Best Company in the Entire Eastern Region tribal areas of Chhattisgarh on Safety category • A
Slide 24: Annual Financial Highlights
Annual Financial Highlights
Slide 25: 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 26: 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 27: Yearly Volume Trend (1)
Yearly Volume Trend (1) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 600 600 600 600 325 495 304 302 175 438 278 266 157 384 135 136 133 313 176 253 161 143 150 148 208 38 33 29 30 20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Produ
Slide 28: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 142 149149 145 139 119 128 124123 118 121 113 30 29 29 113 28 101 27 26 107 97 92 86 23 21 20 21 72 64 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: 1) Production for FY20 was af
Slide 29: Yearly Power Generation
Yearly Power Generation Thermal Power – Mn units Hydro Power – Mn units 1,182 1,076 1,013 1,010 999 115115 85 85 463 74 74 197 173 145 142 18 18 19 19 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note: Thermal Power is largely consumed for captive use; Thermal power generation in FY20 impacted
Slide 30: Thank You
Thank You Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma / Ms. Sheetal Keswani njoshi@seml.co.in pooja.sharma@stellar-ir.com / sheetal@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
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