Sarda Energy & Minerals Limited · NSE:SARDAEN

Sarda Energy & Minerals — Q3 FY2024 Earnings Presentation

43 slides from Sarda Energy & Minerals's earnings presentation, February 2024

  1. Slide 1: Result Presentation Q3 & 9MFY24

    Result Presentation | Q3 & 9MFY24 Sarda Energy & Minerals Limited ‘It’s Energy and Minerals, Not Only Steel’

  2. Slide 2: 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

  3. Slide 3: Table of Contents

    Table of Contents 1 Sustainable Growth Strategy 2 Q3 & 9MFY24 - Key Highlights g 3 SEML – Beyond Steel . 4 Corporate Social Responsibility 5 Historical Financials g h ‘It’s Energy and Minerals, Not Only Steel’ 3

  4. Slide 4: Sustainable Growth Strategy

    Sustainable Growth Strategy

  5. Slide 5: Building Blocks for Sustainable Growth

    Building Blocks - for Sustainable Growth Backward Integration Diversification Strong Focus on ESG To Reduce Input Costs and Ensure To Reduce Cyclicality Responsible Corporate Citizen Consistent Supply ₹ Financial Prowess Capacity Expansion Augurs Well for Growth To Support Growth ‘It’s Energy and Mi

  6. Slide 6: Creating Competencies Beyond Metals

    Creating Competencies Beyond Metals… Minerals Energy Metals (Iron Ore and Coal) (Thermal and Hydro) (Steel and Ferro) IRON ORE MINE THERMAL POWER STEEL PRODUCTS ***  Captive: Rajnandgaon, Chhattisgarh  81.5 MW at Siltara Plant, for captive use  Pellets: 9 lac MT (1.5 MMT p.a.)  Sponge Iron: 3.6

  7. Slide 7: Well-Diversified Cashflow Profile of the Company

    … Leading to a Well-Diversified Cashflow Profile of the Company Operating EBITDA Bridge (INR Cr) – Q3FY24 Spread across Cyclical and Non-Cyclical business streams ‘It’s Energy and Minerals, Not Only Steel’ 7

  8. 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 391 345 270 174 171 134 99 (127) (317) (868) Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Gross Debt Net Debt* Oct 17, 2023 Consolidated (INR Cr) 1,687 1,714 1,581 1,383 1,401 1,407

  9. Slide 9: Augmenting Capacity to Foster Growth

    Augmenting Capacity to Foster Growth Minerals  Gare Palma IV/7 Coal Mine Chhattisgarh: Capacity enhanced from 1.2 MTPA to 1.44 MTPA in May-23, and increasing further to 1.68 MTPA during the current financial year and seeking approvals for further enhancement to 5.2 MTPA which will be carried out in

  10. Slide 10: Strong Focus on ESG

    Strong Focus on ESG Hydro Power • Existing Hydropower portfolio of 141.8 MW and another 24.9 MW Rehar Hydropower plant under execution. • Few more small hydropower projects are under different stages of approval. Waste Heat Power • Existing 21.5 MW of Waste Heat Power generation. Solar Power • 50 MW

  11. Slide 11: Q3 & 9MFY24 Key Highlights

    Q3 & 9MFY24 | Key Highlights

  12. Slide 12: Key Financial Highlights (Consolidated)

    Key Financial Highlights (Consolidated)  Revenue from Operations: INR 925 Crore Consolidated  EBITDA: INR 225 Crore; Margin at 23.4% Peformance  Net Profit: INR 114 Crore; Margin at 12%  Highest ever Quarterly Production of Coal, Steam, Wire Rod and H B Wire Operational Performance  Record Prod

  13. Slide 13: Consolidated P&L Highlights

    Consolidated P&L Highlights INR in Cr Q3FY24 Q3FY23 YoY Q2FY24 QoQ 9MFY24 9MFY23 YoY Revenue from Operations 925 908 2% 1,001 -8% 2,979 3,136 -5% Other Income 37 44 24 144 26 Total Income 963 952 1% 1,025 -6% 3,123 3,161 -1% Raw Material 567 550 591 1,836 1,786 Employee Expenses 39 31 35 109 96 Othe

  14. Slide 14: Standalone P&L Highlights

    Standalone P&L Highlights INR in Cr Q3FY24 Q3FY23 YoY Q2FY24 QoQ 9MFY24 9MFY23 YoY Revenue from Operations 657 698 -6% 646 2% 2,063 2,205 -6% Other Income 37 41 37 155 70 Total Income 695 738 -6% 683 2% 2,218 2,275 -2% Raw Material 414 419 437 1,367 1,278 Employee Expenses 29 24 26 81 72 Other Opera

  15. Slide 15: Steel Segment – Price Trend

    Steel Segment – 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 2,883 2,454 3,201 4,181 4,037 2,365 2,677 3,061 3,602 3,243 3,836 18,124 INR / MT 18,888 15,340 13,774 16,141 15,307 17,098 15,059 14,999 Value Addition 18,550 20,280 22,1

  16. Slide 16: Steel Segment – Production & Sales Trend (1/2)

    Steel Segment – Production & Sales Trend (1/2) Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 238 612 615 166 175 205 Production 212 224 77 76 64 61 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Iron Ore Pellet (‘000 MT) Sponge Iron (‘000

  17. Slide 17: Steel Segment – Production & Sales Trend (2/2)

    Steel Segment – Production & Sales Trend (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 29 30 Production 146 154 138 111 52 53 10 10 51 43 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘

  18. Slide 18: Power Segment - Generation & Sales Trend

    Power Segment - Generation & Sales Trend Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~141.8 MW Generation (Mn Kwh) Generation (Mn Kwh) 972 502 762 453 277 338 116 96 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24* 9MFY23 9MFY24* Sales (Mn Kwh) Sales** (Mn

  19. Slide 19: SEML | Beyond Steel

    SEML | Beyond Steel

  20. Slide 20: Robust and Diversified Business Model

    Robust and Diversified Business Model Adding Value through Minerals and Energy MINERALS ENERGY METALS  Iron Ore mine and Coal Mines provide long term  To de-risk from the cyclicality of Metals business,  Vast experience of 50 years in Steel Manufacturing stability of raw materials & energy. SEML

  21. Slide 21: Strategically Located Assets

    Strategically Located Assets – Proximity to Raw Materials and End Users… Steel and Ferro plant at Siltara, Chhattisgarh Pellets (9 lac MT), Sponge Iron (3.6 lac MT), Billets (3 lac MT), Wire Rod (2.5 lac MT), H.B. Wire (45K MT) and Ferro Alloys (45 MVA), backed by Thermal Power (60 MW) and Waste Hea

  22. Slide 22: Built Over Five Decades of Excellence

    …Built Over Five Decades of Excellence  Billet capacity increased by 50%  Pellet capacity increased by 33% in FY21  4.8 MW Hydro power  113 MW Sikkim Hydro Power plant commissioned in plant commissioned in Jun-21  Company started 24 2008-09  Gare Palma IV/7 Coal Mine commissioned in Dec-21 MW

  23. Slide 23: Well-Experienced and Strong Leadership at the Helm

    Well-Experienced and Strong Leadership at the Helm Kamal Kishore Sarda Pankaj Sarda Padam Kumar Jain Manish Sarda Neeraj Sarda CMD Joint MD Director & CFO DMD, SMAL DMD, SMAL • Mechanical Engineer with • Mechanical Engineer with • CA, CS with a rich • MBA in International • MBA in Finance & 46 years

  24. Slide 24: Business Segments

    Business Segments ANNIVERSARY

  25. Slide 25: Metals: Robust Presence Across Steel Products

    Metals: Well-Established, Robust Presence Across Steel Products… 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 billet cold

  26. Slide 26: Leading Manufacturer and Exporter of Ferro Alloys

    …And a Leading Manufacturer and Exporter of Ferro Alloys Manganese-based Ferro Alloys Total Domestic Sales ('000 MT) Exports ('000 MT) Plant Vishakhapatnam Siltara, Raipur 2 units Location (SMAL) (SEML) Current 2*33 MVA 5*9 MVA 147 MVA Capacity 1*36 MVA 48 84 99 88 Primary 47 Exports Domestic - Mark

  27. Slide 27: Captive Resources Driving Down Costs

    Minerals & Energy: Captive Resources Driving Down Costs Significantly Captive Iron Ore Mine Coal Mines Captive Thermal + Waste Heat Plants (Total Capacity of 1.5 MMT p.a.) (Total Capacity of 2.04 MMT p.a.) (Total capacity of 161.5 MW) Rajnandgaon, Chhattisgarh: Gare Palma IV/ 7 Coal Mine, Chhattisga

  28. Slide 28: Operational Hydropower Assets of ~141.8 MW

    Energy: Operational Hydropower Assets of ~141.8 MW… 4.8 MW 24 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of Commissioning 2008 2017 2021 Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination 35-year PPA with Term of PPA 30-ye

  29. Slide 29: Robust PLF and Annuity-like Revenue with 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* Revenue EBITDA margin 532 88% 85% 494 453 73% 75% 423 423 429 70% 322 300 271 115 115 129 129 58 68 FY20 FY21 FY22** FY23 9MFY24*** FY20 FY21 F

  30. Slide 30: Corporate Social Responsibility

    Corporate Social Responsibility

  31. Slide 31: Focus on Safety, Health & Social Responsibility

    Focus on Safety, Health & Social Responsibility 23 7 3 3 2 4 CY18 CY19 CY20 CY21 CY22 CY23 ‘It’s Energy and Minerals, Not Only Steel’ 31

  32. Slide 32: Education, Culture and Arts

    Education, Culture and Arts  Initiated Surya Kamal Vidyalaya at Siltara Village for Class 1 and 2  Renovated School Boundary Wall at Mandhar  Physics & Chemistry lab material support to Govt college, Kharora  Organized Fire Safety and First Aid Awareness session at 3 schools  Inauguration of Sc

  33. Slide 33: Healthcare and Infrastructure

    Healthcare and Infrastructure  Celebration of World Health Day at Mandhar Village with CHC  Repair and Renovation of Ambedkar Chowk at Siltara village. Doctors  Construction of 5 Primary School Building in Kawardha District  Conducted International Yoga Day Program at 2 villages Tada and Mandhar

  34. Slide 34: Livelihood: Environmental & Economic Sustainability

    Livelihood: Environmental & Economic Sustainability  Potable Drinking Water supply through water tanker at Siltara & Mandhar village  Bricks provided for school and Gothan in villages of Mandhar, Siltara & Tada  Started Costume Jewellery training at Siltara  Bag distribution in Mandhar Sewing Ce

  35. Slide 35: Historical Financials

    Historical Financials ANNIVERSARY

  36. Slide 36: Strong Balance Sheet: Comfortable Leverage Position

    Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 3,669 3,410 3,004 • Improving TOL/ NW ratio along 2,218 2,199 2,190 2,132 with strong liquidity position. 1,971 2,009 1,870 1,743 1,807 • With additional cashflows post commissioning of Sikkim Hydro 1.14 1.04 project and operat

  37. Slide 37: 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

  38. Slide 38: Consolidated BS – Conservative Capital Structure

    Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Share Capital 36 36 36 35 35 Tangible Networth 1,834 2,182 2,968 3,375 3,634 Minority Interest 100 101 104 100 110 Long Term Borrowings 1,408 1,493 1,196 1,063 971 Short Term Bo

  39. Slide 39: Yearly Trend | Production and Sales (1/2)

    Yearly Trend | Production and Sales (1/2) Iron Ore Pellets Sponge Iron Steel Billet Production ('000 MT) Production ('000 MT) Production ('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) Sa

  40. Slide 40: Yearly Trend | Production and Sales (2/2)

    Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys Production ( ' 0 0 0 M T ) Production ('000 MT) Production ('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 ('0

  41. Slide 41: Power Segment: Generation & Sales (Volumes)

    Power Segment: Generation & Sales (Volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~141.8 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,076 1,079 1,083 999 532 964 494 423 423 115 115 129 129 173 142 85 85 103 76 71 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22* FY2

  42. Slide 42: Share Price Information

    Share Price Information Volume ('000 shares) Close Price (Rs) 300 2,500 250 2,000 200 1,500 150 1,000 100 50 500 - - Jul-23 Jul-23 Feb-23 Feb-23 Apr-23 Apr-23 Sep-23 Sep-23 Oct-23 Oct-23 Jan-24 Jan-24 Feb-24 Mar-23 Mar-23 Mar-23 May-23 May-23 May-23 Jun-23 Jun-23 Aug-23 Aug-23 Aug-23 Dec-23 Dec-23 N

  43. Slide 43: 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

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