Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q4 FY2023 Earnings Presentation
45 slides from Sarda Energy & Minerals's earnings presentation, May 30, 2023
Slide 1: Investor Presentation on Q4/FY23 results cover letter
An ISO 9001, ISO 14001 & ISO 45001 Certified Company SARDA ENERGY & MINERALS LTD. 30th May 2023 BSE Ltd National Stock Exchange of India Ltd. The Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E), Mumbai – 400051 Dalal Street – Mumbai 400 001
Slide 2: Sarda Energy and Minerals Limited
Sarda Energy and Minerals Limited ‘It’s Energy and Minerals, Not Only Steel’ Investor Presentation | Q4 & FY23
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 Q4 & FY23 - Key Highlights 2 SEML – Beyond Steel 3 Business Segments 4 Corporate Social Responsibility 5 Financials ‘It’s Energy and Minerals, Not Only Steel’ 3
Slide 5: Q4 & FY23 | Key Highlights
Q4 & FY23 | Key Highlights
Slide 6: FY23 – Highest Ever Revenue with Healthy Profitability
FY23 – Highest Ever Revenue with Healthy Profitability T O T AL INCO ME (INR CR) EBITDA (INR CR) PAT (INR CR) 29% CAGR 48% CAGR 68% CAGR 4261 3964 1406 807 1110 604 2343 1983 664 376 339 128 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 CASH PROFIT (INR CR) GROSS DEBT (INR CR) DI VI DE
Slide 7: FY23 – Highest Ever Operational Performance Across Most Segments
FY23 – Highest Ever Operational Performance Across Most Segments • Highest Ever Annual Production and Sales of Iron Ore Pellet at 800,000 MT and 521,972 MT respectively • Highest Ever Annual Production and Sales of Wire Rod at 189,911 MT and 151,116 MT respectively • Highest Ever Annual Production a
Slide 8: Improvement in Debt Profile and Credit Rating
Improvement in Debt Profile and Credit Rating Standalone (INR Cr) Gross Debt Net Debt* SEML - Credit Ratings – Upward Trajectory 391 270 345 171 134 174 (127) (317) Mar-20 Mar-21 Mar-22 Mar-23 Consolidated (INR Cr) Gross Debt Net Debt* 1,900 1,687 1,714 1,700 1,581 Name of Subsidiary Reviewed on Cur
Slide 9: Update on Ongoing Projects
Update on Ongoing Projects Gare Palma IV/7 Coal Mine, Chhattisgarh received consent to operate at a higher capacity of 1.44 MTPA (previously 1.2 MTPA) in May-23 and seeking approvals for further enhancement to 1.80 MTPA Shahpur West Coal Mine, Madhya Pradesh (Extractable reserves of 13.4 MT and
Slide 10: Consolidated P&L Highlights
Consolidated P&L Highlights INR in Cr Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Revenue from Operations 1,076 1,058 2% 908 19% 4,212 3,914 8% Other Income 24 34 44 49 50 Total Income 1,100 1,092 1% 952 16% 4,261 3,964 7% Raw Material 709 581 550 2,495 2,086 Employee Expenses 31 36 31 127 113 Other
Slide 11: Standalone P&L Highlights
Standalone P&L Highlights INR in Cr Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Revenue from Operations 816 761 7% 698 17% 3,020 2,642 14% Other Income 17 27 41 87 75 Total Income 833 788 6% 738 13% 3,108 2,717 14% Raw Material 511 385 419 1,789 1,467 Employee Expenses 23 28 24 95 82 Other Operating
Slide 12: Balance Sheet – Conservative Capital Structure and Comfortable Liquidity Position
Balance Sheet – Conservative Capital Structure and Comfortable Liquidity Position Consolidated Standalone Consolidated Standalone Liabilities (INR Cr) Assets (INR Cr) Mar-22 Mar-23 Mar-22 Mar-23 Mar-22 Mar-23 Mar-22 Mar-23 Shareholder’s Funds 3,004 3,410 2,643 3,103 Non-Current Assets 3,139 3,202 1,
Slide 13: Steel Segment – Stable Price Trend
Steel Segment – Stable Price Trend Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,784 677 1,818 3,295 4,136 2,456 4,897 3,201 2,454 4,181 2,315 2,348 3,061 3,602 3,266 3,246 18,124 INR / MT 18,888 15,340 13,774 16,141 12,453 15,307 14,380 Value Addition 15,435 18,550 20,280 22,135 24
Slide 14: Steel Segment: Stable Demand Across Most Products
Steel Segment: Stable Demand Across Most Products Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 228 294 290 Production 800 192 741 69 84 62 159 188 47 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Ste
Slide 15: Steel Segment: Focus on Selling Value-Added Products
Steel Segment: Focus on Selling Value-Added Products Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 190 164 Production 161 39 159 32 52 44 53 41 9 10 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT)
Slide 16: Power Segment - Generation & Sales
Power Segment - Generation & Sales Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~143 MW GENERATIO N (MN KWH) GENERATIO N (MN KWH) 494 1,079 1,083 423 279 321 25 28 Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 SALES (MN KWH) SALES (MN KWH) 76 494 71
Slide 17: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Ownership of Key Mineral Assets Capacity Expansion Diversification Reduce Input Costs and Ensure Consistent Supply • Commissioned 36 MVA Ferro Alloys furnace in Adding Annuity-like Revenue Stream (Hydro) • Gare Palma IV/7 Coal Mine: Commission
Slide 18: SEML | Beyond Steel
SEML | Beyond Steel
Slide 19: Robust Business Model with Diversified Business
Robust Business Model with Diversified Business Adding Value through Minerals and Energy MINERALS METALS HYDRO Captive Iron Ore mine and commercial Coal Mines Vast experience of 50 years in Steel Manufacturing To de-risk from the cyclicality of Metals business, SEML provide long term stability
Slide 20: Strategically Located Assets – Proximity to Raw Materials and End Users
Strategically Located Assets – Proximity to Raw Materials and End Users… Iron Ore and Coal Mines located within ~140 km and ~200 km respectively, from the End-user plant at Chhattisgarh Captive Iron Ore Mine at Rajnandgaon, Chhattisgarh (rated capacity of 1.5 MMT p.a.) Commercial Coal Mine at Gare P
Slide 21: Built Over Four Decades of Excellence
…Built Over Four Decades of Excellence 1979-89 1989-99 1999-08 2008-18 2018-23 Billet capacity increased by 50% Acquired Raipur Wires and Steel as a Installed 25 TPD Electric Arc Furnance Company started 24 MW captive 4.8 MW Hydro power plant Pellet capacity increased by 33% in FY21 sick unit
Slide 22: 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 46 years • Mechanical Engineer with 18 years experience in Iron and Steel Industry experience in Iron and Steel Industry • Responsible for the groups vision and • Responsible f
Slide 23: Business Segments
Business Segments
Slide 24: Metals and Mining Business | Vertically Integrated Steel Player
Metals and Mining Business | Vertically Integrated Steel Player… Raw Material & Energy Generation (Captively procured key inputs, assure cost and quality control) Raw Material & Energy Generation Iron Ore Mine | Coal Mine | Power Intermediate / Finished Products (Flexibility to sell products across
Slide 25: Backed by Captive Resources, Driving Down Costs Significantly
… Backed by Captive Resources, Driving Down Costs Significantly Iron Ore Mines Coal Mines Captive Thermal + Waste Heat Plants (Total Capacity of 1.5 MMT p.a.) (Total Capacity of 1.44 MMT p.a.) (Total capacity of 161.5 MW) • Located at Rajnandgaon, Chhattisgarh, which is Gare Palma IV/ 7 Coal Mine,
Slide 26: 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 Semi finished steel product Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Produced from captive Iron Description produced by continuous from direct hot bille
Slide 27: 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 as exported to other countries Leading exporter of manganese-based Ferro Alloys Exports Awards: SMAL received prestigious ex
Slide 28: Hydro Power Business | Operational Assets of ~143 MW
Hydro Power Business | Operational Assets of ~143 MW… 4.8 MW 24 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 35-year PPA with Term of PPA 30-
Slide 29: Track Record of Robust PLF and Annuity-like Revenue + High Margin
…With Track Record of Robust PLF and Annuity-like Revenue + High Margin Generation and Sales (Mn KwH) Revenue (INR Cr) & EBITDA Margin (%) Generation Sales 400 100% 88% 86% 85% 90% 494 494 350 322 423 80% 423 300 69% 70% 271 70% 250 60% 200 50% 150 40% 129 129 30% 115 115 100 85 85 58 68 20% 45 50 1
Slide 30: Corporate Social Responsibility
Corporate Social Responsibility
Slide 31: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility 23 7 3 3 2 CY18 CY19 CY20 CY21 CY22 ‘It’s Energy and Minerals, Not Only Steel’ 30
Slide 32: Education: Enabling Quality Education in Community
Education: Enabling Quality Education in Community Financial support for school building and infrastructure for affordable quality education 3.20 crores. Donation of 22-Seater Bus to Army Officials’ Children at Leh Providing Teachers for quality education. Road Safety Awareness Training in S
Slide 33: Healthcare: Preventive & Curative Healthcare Services
Healthcare: Preventive & Curative Healthcare Services Support Of Rs. 2 crores to Udyanchal Trust for Eye Hospital Operating Mobile Medical Vans for treatment of downtrodden in remote areas - benefitting 10,000 patients 3 Doctors assigned for Community Care Training on Institutional delivery
Slide 34: Infrastructure: Creating Community Assets
Infrastructure: Creating Community Assets Deepening of pond in villages; Construction of culvert in Tada village and other Water Works Drinking water line and bore connection with pump at Siltara Primary school Road improvement work in surrounding villages Development of Civil infrastructure
Slide 35: Livelihood: Environmental & Economic Sustainability
Livelihood: Environmental & Economic Sustainability Maha Vrikshropan Abhiyan – 10,000 saplings planted and support for Krishna Kunj Yojana in Surajpur Potable water supply in Siltara, Mandhar & Mines area villages Livelihood development initiative for physically challenged Livelihood promoti
Slide 36: Art, Culture & Sports: Sports & Cultural Development
Art, Culture & Sports: Sports & Cultural Development Making of Film on awareness about environment and cleanliness Training with CBWE on Women Empowerment Support for the local cultural programs Support to Army Armed Welfare Fund Donation for Poor Girls Mass marriage. 11 of them physically
Slide 37: Financial Trends
Financial Trends
Slide 38: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 3,410 3,004 • Improving TOL/ NW ratio along 2,218 2,199 2,190 with strong liquidity position 2,132 1,971 1,807 1,870 1,743 • With additional cashflows post commissioning of Sikkim Hydro 1.14 1.04 project and operationalization
Slide 39: Consolidated P&L – Consistent Growth with High Profit Margins
Consolidated P&L – Consistent Growth with High Profit Margins INR in Cr FY19 FY20 FY21 FY22 FY23 Revenues 2,324 2,000 2,199 3,914 4,212 Other Income 17 -17 144 50 49 Total Income 2,341 1,983 2,343 3,964 4,261 Raw Material 1,493 1,293 1,347 2,086 2,495 Employee Expenses 87 88 89 113 127 Other Operati
Slide 40: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Share Capital 36 36 36 36 35 Tangible Networth 1,707 1,834 2,182 2,968 3,375 Minority Interest 132 100 101 104 100 Long Term Borrowings 1,078 1,408 1,493 1,196 1,063 Short Term
Slide 41: Yearly Trend | Production and Sales (1/2)
Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet PRO DUCTION ('000 MT) PRO DUCTION ('000 MT) PRO DUCTION ('000 MT) 800 741 325 228 600 600 619 192 302 175 177 291 294 290 157 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 SALES ('000 MT)
Slide 42: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys PRO DUCTION ('000 MT) PRO DUCTION ('000 MT) PRO DUCTION ('000 MT) 190 161 164 142 147 39 145 159 119 32 124 132 23 26 21 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 SALES ('000 MT) SALES ('000
Slide 43: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,076 1,079 1,083 999 964 494 494 423 423 115 115 129 129 173 142 85 85 103 76 71 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22* FY23
Slide 44: Share Price Information
Share Price Information Volume (# Shares) Share Price (INR) 1,300 200 Volumes in ‘000s 1,200 180 160 Price in INR 1,100 140 1,000 120 900 100 800 80 700 60 40 600 20 500 0 Capital Market Information (as on 26-May-23) Shareholding Pattern (as on 31-Mar-23) BSE/NSE Code 504614/SARDAEN Non institutions
Slide 45: THANK YOU
THANK YOU Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma / Ms. Vinita Pandya njoshi@seml.co.in pooja.sharma@stellar-ir.com / vinita@stellar-ir.com 125 B-Wing Mittal Court, Nariman Point, Mumbai 400 021 A-405, Kanakia Wall Street, Andheri (East), Mumbai 400 093 www.seml.co.in ‘It’s Energ
Sarda Energy & Minerals — Q4 FY2023 Earnings Presentation on 6ix