Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q4 FY24 Earnings Presentation
47 slides from Shyam Metalics & Energy's earnings presentation, May 15, 2024
Slide 1: Filing cover letter to stock exchanges
™ Great Place ORE TO METAL ° Work... Certified MAR 2023 - MAR 2024, Inala SMEL/SE/2023-24/17 May 14, 2024 The Secretary, The Manager - Listing Department Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, 5th Floor, Plot No. C/1, G-B
Slide 2: Investor Presentation | May 2024
Investor Presentation | May 2024 Securing tomorrow with today’s strength
Slide 3: 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 4: Company Overview
Company Overview
Slide 5: Shyam Metalics at a Glance
Shyam Metalics at a Glance 6th Largest Integrated Steel 4th Largest Sponge Iron Player, Producer & amongst the largest Leading player in terms of Pellet Ferro Alloys producer in India Capacity Achieving End-To-End Solutions Integrated Metal Producing Company Operates “Ore to Metal” integrated steel
Slide 6: Eminent Promoters & Management
Eminent Promoters & Management Brij Bhushan Agarwal Sheetij Agarwal Sanjay Kumar Agarwal Deepak Agarwal Mahabir Prasad Agarwal Vice Chairman & Managing Head - Strategy & Business Joint Managing Director Director Finance & CFO Chairman Director Development o Bachelor of Science in o Holds a bachelor’
Slide 7: Value Propositions
Value Propositions 1 Backward Integration & Forward Integration with presence across the Value Chain 2 Diversified Product Mix: Scaling up stainless steel, aluminum foil and EV Battery Foil 3 Strong Brand & Distribution Network 4 Private Railway Sidings Advantage for Seamless Logistics 5 Captive Pow
Slide 8: Key Updates for Q4 FY24
Key Updates for Q4 FY24 Capex & Operational Update • Capex incurred till FY24: Rs. 4,640 crores which accounts for 51% of the total CAPEX Envisaged i.e. Rs. 9,215 crores out of which Rs. 2,563 crores have been capitalized • Announced expansion into Aluminium Flat Rolled Products with investment of R
Slide 9: Driving Integration of Multi-Product Metals Portfolio
Driving Integration of Multi-Product Metals Portfolio Prospective License for Iron Ore Mine: Multiple Sale Points across Maharashtra Backward the Value Chain Integration Railway siding Greater Control on Operating Margins 357 MW CPP Flexibility to alter Product Renewables – Captive Solar Mix Energy
Slide 10: Expansion with strong focus on value added products
Expansion with strong focus on value added products Integration has enabled greater control on the operating margins Capacity (MTPA) FY21 FY22 FY23 FY24 Post Expansion Capacity (MTPA) Post Expansion Iron Pellet 2.40 3.60 4.80 6.00 6.00 Beneficiation 3.0 Sponge Iron 1.39 2.11 2.54 2.90 4.10 Coke Oven
Slide 11: Capacity Expansion through Inorganic Route – Ramsarup Industries
Capacity Expansion through Inorganic Route – Ramsarup Industries Engaged in manufacturing wires, TMT Bars and steel, acquired for Rs 380 cr out of which we paid Rs 228 cr for 60% stake Shyam Super Metalics & 60% Ramsarup 40% Smelters Ltd Energy Ltd Industries First Capex Infusion in Ramsarup Industr
Slide 12: Forays into Stainless Steel through Acquisition of Mittal Corp
Forays into Stainless Steel (SS) through Acquisition of Mittal Corp Mittal Corp Industries Overview Q4 FY24 update Announced Expansion into Leading Player in Paid acquisition cost 2 Manufacturing Manufacturing plant 0.15 MTPA Installed following Products Stainless Steel Flats of units at Pithampur,
Slide 13: Aluminium Foil Plant
Aluminium Foil Plant Aluminium Plant – Pakuria - West Bengal, Giridih - Jharkhand & upcoming plant in Odisha Backward One of the largest Rolling range: 40 integration to aluminium foil Plant installed by Kickstarted and More than 60% of to 5 micron with Majorly increase margins manufacturer in Achen
Slide 14: Business Update: Greenfield Expansion – Cold Rolling Mill
Business Update: Greenfield Expansion – Cold Rolling Mill To setup a greenfield project for a cold rolling mill spread over 55 acres of land at Jamuria, West Bengal Project approved under the PLI Products will include GI/GL coils and scheme PPGL (Pre-Painted Galvalume Coils) The business will be set
Slide 15: Current Projects Overview
Current Projects Overview
Slide 16: Projects Pending Installation and Status of Cost Incurred of Carbon Steel
Projects Pending Installation and Status of Cost Incurred of Carbon Steel Capacities to be Budgeted Capex Capex incurred till Pending Capex Particulars Commissioned (Rs Cr) 31st March (Rs Cr) (Rs Cr) (Million MTPA) Benefication Plant 3.0 300 9 291 Sponge Iron 1.20 425 94 331 Blast Furnace 1.05 974 6
Slide 17: Projects Pending Installation and Status of Cost Incurred for Others
Projects Pending Installation and Status of Cost Incurred for Others Capacities to be Budgeted Capex Capex incurred till Pending Capex Particulars Commissioned (Rs Cr) 31st March (Rs Cr) (Rs Cr) (Million MTPA) Stainless Steel: Billet Stainless Steel 0.13 130 30 100 Billet Slabs for Flat products 0.5
Slide 18: Projects Status Updates
Projects Status Updates BLAST FURNACE - KHARAGPUR Project expected to be commissioned in Dec -24 COKE OVEN PLANT - JAMURIA Project expected to be commissioned in June -24 17
Slide 19: Projects Status Updates
Projects Status Updates BLAST FURNACE - JAMURIA Project expected to be commissioned in Sept- 24 18
Slide 20: Projects Status Updates
Projects Status Updates SINTER PLANT - JAMURIA Project expected to be commissioned in June-24 CRM COMPLEX - JAMURIA Phase 1 Project expected to be commissioned in Sept- 24 19
Slide 21: Current Capacities Across Carbon Steel Life Cycle
Current Capacities Across Carbon Steel Life Cycle Finished Steel 2.07 MTPA WRM 0.92 MTPA TMT 0.92 MTPA (Wire Rod & Wire Draw Mill) DRI 3.05 MTPA SMS 2.01 MTPA Iron Making Liquid Steel Structurals Pipe Mill 0.03 MTA (Direct Reduced Iron) (Steel Melting Shop) 0.20 MTPA 20
Slide 22: Higher Contribution of Finished Steel Products
Higher Contribution of Finished Steel Products Revenue Mix 17% 23% 37% 38% 48% 25% 24% 48% Enriching product portfolio to make a basket of fully 12% 8% 27% 20% 11% 17% 8% 5% integrated downstream products 18% 16% 15% 18% 17% 13% 19% 24% 18% 15% 7% 4% 11% 14% 8% 1% 4% FY19 FY20 FY21 FY22 FY23 FY24 TM
Slide 23: Export Opportunities
Export Opportunities We are preferred suppliers to large corporations like 17 10% 01 02 03 Countries Norecom POSCO Intl World Metals DMCC Corp & Alloys (FZC) Exports to countries like USA, Export Contribution to Revenue Japan, Korea, Italy, Nepal, in FY24 Bangladesh 04 05 06 Steel products both upst
Slide 24: Q4 & FY24 Financial Performance
Q4 & FY24 Financial Performance
Slide 25: Performance Highlights
Performance Highlights Q4 FY24 Rs.3,606 Cr Rs. 442 Cr Rs. 493 Cr Rs. 220 Cr* Revenue Operating EBITDA EBITDA PAT YoY 5% YoY 3% YoY 9% YoY -13% FY24 Rs. 13,195 Cr Rs. 1,570 Cr Rs. 1,729 Cr Rs. 1,029 Cr Revenue Operating EBITDA EBITDA PAT YoY 4% YoY 5% YoY 8% YoY 22% 24 Note - *PAT has been considered
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 3,606.2 3,428.0 5.2% 3,315.3 8.8% 13,195.2 12,658.1 4.2% Cost of Material Consumed 2,495.8 2,528.5 2,505.0 9,593.6 8,919.7 Purchases of stock in trade 27.0 2.4 0.02
Slide 27: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (Rs. Crs.) Mar-24 Mar-23 Particulars (Rs. Crs.) Mar-24 Mar-23 Assets Equity and Liabilities Non-Current Assets Equity share capital 278.0 255.1 Property, plant and equipment 3,826.3 3,088.7 Other equity 9,368.6 7,020.9 Total Equity 9,646.7 7,276.0 Rig
Slide 28: Q4 FY24 Performance Highlights
Q4 FY24 Performance Highlights Rs. 3,606 crores Rs. 442 crores Rs. 493 crores Rs. 220 crores* Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) Y-o-Y +189% +15% Q-o-Q Steel Products 0.1% 0.21 4.3% 5.8% 13.7% 0.19 Q-o-Q
Slide 29: FY24 Performance Highlights
FY24 Performance Highlights Rs. 13,195 crores Rs. 1,570 crores Rs. 1,729 crores Rs. 1,029 crores Revenue from Operations Operating EBITDA EBITDA Profit After Tax Revenue Breakup Volumes (in lakh tonnes) Volumes (in lakh tonnes) +346% Y-o-Y Steel Products 1.3% 12.9% 0.68 4.1% Y-o-Y 4.4% 0.17 Aluminiu
Slide 30: Per Tonne Realizations
Per Tonne Realizations Speciality Alloys Finished Steel Steel Billets Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q -4% 0.2% -6% -15% -4% -11% -16% -4% -13% 99,864 95,383 95,554 1,01,360 95,337 52,472 53,268 46,127 47,680 46,756 44,821 47,260 40,710 38,910 41,627 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 F
Slide 31: Strong Debt Profile
Strong Debt Profile Gross Debt* (Rs. Cr) Net Debt^ (Rs. Cr) 1,050 960 951 785 246 534 577 -477 -562 -1,514 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Gross Debt / Equity Net Debt / EBITDA 0.37 1.51 0.21 0.18 0.30 0.13 0.09 0.06 -0.18 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 -0.9
Slide 32: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth Conservatively Leveraged + Internal Operating Efficiency led to significant reduction in Disciplined Capital Allocation strategy Working capital requirements = Better Return Metrics Working Capital (days) Return ratios (%) 24 12 42% 25% 91 ROCE 10% 14% 11
Slide 33: Disciplined Capital Allocation
Disciplined Capital Allocation CashFlow from Operations (Rs. Cr) CAPEX (Rs. Cr) 1,794 1,578 1,543 1,689 1,518 1,277 1,056 251 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Cash & Cash Equivalents (Rs. Cr) CAPEX as % of Cashflow from Operations 102% 2,092 88% 76% 1,541 1,262 24% 486 FY21 FY22 FY23 FY24 FY2
Slide 34: Enhancing Shareholder’s Value
Enhancing Shareholder’s Value Dividend Payout (%) 14% 12% 11% 5% FY21 FY22 FY23 FY24 Particulars (in Rs Cr) FY21 FY22 FY23 FY24 Net Profit 844 1,724 843 1,029 Dividend 43 184 114 122 The Company has paid post IPO dividend amounting to Rs. 420 cr being 11.6% of the aggregate PAT of Rs. 3,596 cr 33
Slide 35: Long Term Rating at CRISIL AA/ Outlook: Stable
Long Term Rating at CRISIL AA/ Outlook: Stable Current Rating CRISIL AA Outlook Stable Latest Review Dec-23 CRISIL AA CRISIL AA CRISIL AA CRISIL AA- CRISIL AA- FY20 FY21 FY22 FY23 Dec-23 34
Slide 36: Annexure
Annexure
Slide 37: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Raw Material Sources are within 250 kms Jamuria Plant Sambalpur Plant Close Proximity Strong Logistics Lower Logistics Dhamra to Raw Material + Infrastructure = Cost Paradeep Vishakhapatnam Proximity to ports enables Company to export o Plants are
Slide 38: 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 plant in Jamuria, West Bengal with aggregate installed capacity of 13.51 MTPA comprising of intermedia
Slide 39: 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 40: Detailed Plant Wise Capacities – Existing
Detailed Plant Wise Capacities* – Existing Product –Wise Pandoli Jamuria Mangalpur Kharagpur TOTAL Capacity (MTPA) Odisha West Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Speciality Alloys 0.11 0.07 0.04 0.22 DRI 1.32 1.52 0.06 0.15 3.05 (Direct Reduced Iron) Billets 0.87 1.14 2.01 TMT,
Slide 41: Detailed Plant Wise Capacities – Post Expansion: Carbon Steel
Detailed Plant Wise Capacities – Post Expansion : Carbon Steel Product –Wise Capacity Sambalpur Jamuria Mangalpur Kharagpur TOTAL (MTPA) Odisha West Bengal West Bengal West Bengal (MTPA) Iron Pellets 3 3 6 Speciality Alloys 0.11 0.07 0.06 0.24 DRI (Direct Reduced Iron) 1.95 1.95 0.06 0.15 4.1 Pig Ir
Slide 42: Detailed Plant Wise Capacities – Existing & Post Expansion: Stainless Steel
Detailed Plant Wise Capacities – Existing & Post Expansion : Stainless Steel Product –Wise Sambalpur Pitampura TOTAL Capacity (MTPA) Odisha Madhya Pradesh (MTPA) Stainless CR 0.2 0.2 Stainless HR 0.5 0.5 Stainless 0.15 0.07 0.22 Billets 0.13 0.12 0.25 Slabs 0.5 0.5 0.5 SS Bright Bars 0.018 0.018 SS
Slide 43: Our Strategy Going Forward
Our Strategy Going Forward Shift Towards Value Build market leading Geographical Continuously work on Reducing Carbon Added Products position in all 4 areas Expansions in newer improving cost Footprint and focus on portfolio by identifying of the metal space : states with focus on efficiency through
Slide 44: Energy Cost through Captive Power: ~78%
Energy Cost through Captive Power: ~ 78% o Power consumed by the plants are primarily produced in-house by the Sambhalpur Jamuria Mangalpur Kharagpur captive power plants o Captive power plants utilise non fossil fuels such as waste, rejects, heat and 5 Turbines 4 Turbines 1 Turbine 1 Turbine gas ge
Slide 45: Strengthening Brand ‘SEL’
Strengthening Brand ‘SEL’ TMT TMT are used for the construction of buildings, transmission towers, industrial sheds, structures, road, dam and in other various infrastructures SMEL sells the best quality TMT primarily in the states of West Bengal, Odisha, Bihar, Jharkhand, Tripura, Sikkim, Assam, Ar
Slide 46: CSR Initiatives
CSR Initiatives SUSTAINABILITY RURAL HEALTH • Water Conservation- Check dam, • Yearly Eye & Medical Camp for Villagers, FREE Pond , landscaping, Plantation, Medicine & Spectacles • Promotion of solar Light • Free Ambulance & Drinking water Services for villagers • Solar irrigation Pumps • New Health
Slide 47: Thank You
Thank You Shyam Metalics & Energy Limited Investor Relations Partners - Orient Capital Shyam Metalics & Energy Ltd. CIN No. : L40101WB2002PLC095491 Mr. Pankaj Harlalka Ms. Payal Dave +91 9819916314 Trinity Tower, 7th Floor, 83, Topsia Road +91 9830028142 payal.dave@linkintime.co.in Kolkata – 700046,
Shyam Metalics and Energy — Q4 FY24 Earnings Presentation on 6ix