Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q2 & H1 FY22 Earnings Presentation
38 slides from Sarda Energy & Minerals's earnings presentation, Nov 2, 2021
Slide 1: Exchange filing cover letter: Investor Presentation on Q2/FY22 results
Industrial Growth Center, Siltara An ISO 9001, ISO 14001 & OHSAS 18001 Raipur (CG) 493111, India Certified Company Tel: +91 771 2216100 om Fax : +91 771 2216198/99 Co) aNas cn Anne baat A 1973PL SO1lSts ey ae aaa ~ SARDA ENERGY & MINERALS LTD. info@seml.co.in 2nd November 2021 BSE Ltd National Stock
Slide 2: Result Presentation | Q2 & H1FY22
Result Presentation | Q2 & H1FY22
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: Table of Contents
Table of Contents 1 Q2 & H1FY22 - Key Highlights 2 SEML – De-risked and Diversified 3 Financial Performance 4 Corporate Social Responsibility 3
Slide 5: Q2 & H1FY22 | Key Highlights
an Q2 & H1FY22 | Key Highlights
Slide 6: Robust Operational and Financial Performance
Robust Operational and Financial Performance Financial Performance: • Highest Ever Quarterly and Half Yearly Revenue and Profits • Consolidated Revenue up 84% YoY to INR 1,056 Cr in Q2FY22 and 97% YoY to INR 1,886 Cr in H1FY22 • Consolidated EBITDA margin at Highest Ever: 41.9% (27.5%) in Q2FY22 and
Slide 7: Metals: Benefits From The Strategic Edge Provided by Vertical Integration
Metals: Benefits From The Strategic Edge Provided by Vertical Integration Financial Performance: • Continued focus on strengthening presence across the value chain has aided in Sustainable Growth • Dual benefit of higher realisations and profit margins, led by captive source for key raw materials li
Slide 8: Hydro Power: Sizeable Operational Portfolio of ~143 MW; Annuity-like Business Model
Hydro Power: Sizeable Operational Portfolio of ~143 MW; Annuity-like Business Model • Operationalized the 113 MW Sikkim Hydro Power (SHP) project in Q2FY22 • Commissioned on June 30, 2021, and the effect of its operationalization is included in Q2FY22 consolidated results • Chhattisgarh SERC has app
Slide 9: Total Green Power capacity has now Surpassed that of Thermal Power
Total Green Power capacity has now Surpassed that of Thermal Power With ~163 MW (143 MW of Hydro + 20 MW of Waste Heat) of power generating capacity from Non-Carbon Energy sources, SEML is now a Green Powerhouse • Large hydropower projects with a capacity of more than 25 MW and commercialized after
Slide 10: Sikkim Hydro Project - Significant Fillip to Q2FY22 Consolidated EBITDA
Sikkim Hydro Project - Significant Fillip to Q2FY22 Consolidated EBITDA… EBITDA Bridge – Q2FY22 (in INR Crore) • Substantial jump in Hydro EBITDA (INR 61 crore in FY21) is led by the 113 MW Sikkim project… • …Resulting in a significant diversification of cashflow profile of the Company * INR 25.16 c
Slide 11: And To Commence Repayment of Sikkim Hydro Debt from its Cash Flows
…And To Commence Repayment of Sikkim Hydro Debt from its Cash Flows Debt Bridge – As on Sep 30, 2021 (in INR Crore) 947 1,631 • Majority of the Total Debt is on account of the Sikkim Hydro project, repayment 87 of which would start now 367 as per the repayment schedule. 230 STANDALONE SMAL HYDRO - H
Slide 12: Consolidated P&L – Highest Ever Quarterly and Half Yearly Revenue & Profit
Consolidated P&L – Highest Ever Quarterly and Half Yearly Revenue & Profit INR in Cr Q2FY22 Q2FY21 YoY Q1FY22 QoQ H1FY22 H1FY21 YoY Revenues 1,025 548 832 1,857 896 Other Income 31 26 -2 29 64 Total Income 1,056 574 84% 830 27% 1,886 960 97% Raw Material 487 342 468 955 558 Employee Expenses 26 21 2
Slide 13: Standalone P&L - Highest Ever Quarterly and Half Yearly Revenue & Profit
Standalone P&L - Highest Ever Quarterly and Half Yearly Revenue & Profit INR in Cr Q2FY22 Q2FY21 YoY Q1FY22 QoQ H1FY22 H1FY21 YoY Revenues 592 373 619 1,210 604 Other Income 51 33 -3 48 52 Total Income 643 406 58% 616 4% 1,259 656 92% Raw Material 331 226 351 682 374 Employee Expenses 18 16 18 36 33
Slide 14: Balance Sheet – Comfortable Liquidity Position; Consolidated Net D/E Below 0.5x
Balance Sheet – Comfortable Liquidity Position; Consolidated Net D/E Below 0.5x Consolidated Standalone Consolidated Standalone Liabilities (INR Cr) Assets (INR Cr) Mar-21 Sep-21 Mar-21 Sep-21 Mar-21 Sep-21 Mar-21 Sep-21 Shareholder’s Funds 2,221 2,616 2,011 2,295 Non-Current Assets 3,021 3,073 1,44
Slide 15: Metals Segment - Product Prices Continue to Remain Firm
Metals Segment - Product Prices Continue to Remain Firm… Steel Segment: Product wise Incremental Realization Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,315 2,348 3,266 3,246 1,337 4,497 1,878 2,297 12,453 2,383 14,380 2,578 2,790 2,450 1,849 Value 3,867 3,092 12,375 RS. /MT 4,679
Slide 16: On The Back of Robust Demand Across Products – Volume Data (1/2)
…On The Back of Robust Demand Across Products – Volume Data (1/2) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 173 45 80 42 148 78 142 119 39 37 Q2 5 6 Production Sales Production Sales Production Sales 94 383 143 70 292 125 277 220 H1 61 56 8 12 Production Sales Productio
Slide 17: On The Back of Robust Demand Across Products – Volume Data (2/2)
…On The Back of Robust Demand Across Products – Volume Data (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 39 40 38 38 35 32 8 8 27 35 34 34 7 7 Q2 30 25 Production Sales Production Sales Production Sales 74 74 80 15 15 61 60 61 66 13 12 51 H1 Production Sales Production Sales
Slide 18: Power Segment - Highest Ever Hydro Power Generation & Sales, led by SHP
Power Segment - Highest Ever Hydro Power Generation & Sales, led by SHP Thermal Power + Waste Heat – Total Capacity 161.5 MW Hydro Power – Total Operational Capacity ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 264 271 271 239 Q2 65 65 38 27 GE NE RATION SAL E S GE NE RATION SAL E S 528 289 289 4
Slide 19: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Vertical Integration and Capacity Expansion Diversification: From Commodity to Green Energy Player • Recently won two Coal Mines and bidding for Iron Ore mines – to reduce • De-risked by adding annuity-like Revenue Stream (Hydro Power) input c
Slide 20: SEML | De-Risked and Diversified
SEML | De-Risked and Diversified 19
Slide 21: Metal Business | Vertically Integrated Steel Player
Metal Business | Vertically Integrated Steel Player… Raw Material & Thermal Power (Captively procured key inputs, assures cost and quality control) Raw Material & Thermal Power Iron Ore Mine | Coal Mine | Thermal Power Intermediate / Finished Products (Flexibility to sell products across entire prod
Slide 22: Backed by Captive Resources, Driving Down Costs Significantly
… Backed by Captive Resources, Driving Down Costs Significantly Captive Iron Ore Mine Captive Thermal + Waste Heat Plants Recently won two Coal Mines (Total Capacity of 1.5 MMT p.a.) (Total capacity of 161.5 MW) (Total Capacity of 1.8 MMT p.a.) • Located at Rajnandgaon, Chhattisgarh, which is • Loca
Slide 23: Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh
Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh… Pellets Sponge Iron Billets Wire Rods HB Wires Description Semi finished steel product Produced from captive Iron produced by continuous Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Ore Lumps & Pellets.
Slide 24: And a Leading Manufacturer and Exporter of Ferro Alloys
…And a Leading Manufacturer and Exporter of Ferro Alloys ▪ Manufactures manganese-based Ferro Alloys sold domestically as Domestic Sales ('000 MT) Exports ('000 MT) well exported to other countries ▪ Leading exporter of manganese-based Ferro Alloys ▪ Exports Awards: ▪ SMAL received prestigious expor
Slide 25: Hydro Power Business | Operational Assets of ~143 MW
Hydro Power Business | Operational Assets of ~143 MW 4.8 MW 24.9 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of 2008 2017 2021 Commissioning Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination Term of PPA 30 -year PPA with S
Slide 26: Well-Experienced and Strong Leadership at the Helm
Well-Experienced and Strong Leadership at the Helm Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • Mechanical Engineer with 17 years experience in Iron and Steel Industry experience in Iron and Steel Industry • Responsible for the groups vision and • Responsible f
Slide 27: Financial Performance
Financial Performance 26
Slide 28: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 2616 2,221 2,199 2244 2,132 1,870 1,768 1,807 • Improving TOL/ NW ratio along 1,702 1,743 1,537 1,576 with strong liquidity position 1,358 1,223 1.45 • With additional cashflows post 1.26 1.14 commissioning of Sikkim Hydro 1.12
Slide 29: Consolidated P&L – Consistent Growth and High Profit Margins
Consolidated P&L – Consistent Growth and High Profit Margins INR in Cr FY17 FY18 FY19 FY20 FY21 Revenues 1,434 2,217 2,324 2,000 2,199 Other Income 67 70 17 -17 144 Total Income 1,502 2,287 2,341 1,983 2343 Raw Material 942 1,478 1,493 1,293 1,347 Employee Expenses 75 77 87 88 89 Other Operating Exp
Slide 30: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr FY17 FY18 FY19 FY20 FY21 Share Capital 36 36 36 36 36 Tangible Networth 1,322 1,540 1,707 1,834 2,185 Minority Interest 83 88 132 100 101 Long Term Borrowings 936 998 1,078 1,436 1,500 Short Term Borrowings 348 3
Slide 31: Metal Segment - Robust Volume Growth Across Products – FY21
Metal Segment - Robust Volume Growth Across Products – FY21 Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 325 600 619 291 175 177 426 313 161 131 30 26 Production Sales Production Sales Production Sales Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 26 27 23
Slide 32: Power Segment - Highest Ever Hydro Power Generation – FY21
Power Segment - Highest Ever Hydro Power Generation – FY21 Thermal Power + Waste Heat – Total Capacity 161.5 MW Hydro Power – Total Operational Capacity 29.7 MW (Figures in Mn KwH) (Figures in Mn KwH) 129 129 999 964 115 115 142 103 G E NE RATION SAL E S GE NE RATION SAL E S FY20 FY21 FY20 FY21 Note
Slide 33: Corporate Social Responsibility
Corporate Social Responsibility 32
Slide 34: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility (including minor) 43 21 23 15 3 3 CY14 CY16 CY17 CY18 CY19 CY20 33
Slide 35: Initiatives Against COVID-19
Initiatives Against COVID-19 Donated Food Grains to Villagers COVID testing camps for Villagers Provided Medical Kit & Apparatus help to COVID-19 Hospitals Vaccine Drive for Employees: 99.7% given 1st dose and 80% given both doses 34
Slide 36: Responsible Corporate Citizen (1/2)
Responsible Corporate Citizen (1/2) Education: Enabling quality education in community Salary support to Teachers at Siltara & Mines area village schools; Reward to Meritorious students of class 10 th & 12th; Support to Educational Trust development; Support to Ekal Vidyalayas for education developm
Slide 37: Responsible Corporate Citizen (2/2)
Responsible Corporate Citizen (2/2) Education Health Infrastructure Livelihood Cultural 36
Slide 38: 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 37
Sarda Energy & Minerals — Q2 & H1 FY22 Earnings Presentation on 6ix