Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — H1 FY20 Earnings Presentation
31 slides from Sarda Energy & Minerals's earnings presentation, 2019
Slide 1: Mining Steel Ferro-Alloys Hydro
MINING STEEL F E R R O-A L L O Y S HYDRO
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
Slide 3: Agenda
Agenda 1 H1 FY20 : Business Update & Financial Highlights 2 SEML – Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 4: H1 FY20: Business Update & Financial Highlights
H1 FY20 : Business Update & Financial Highlights
Slide 5: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q2FY20 Q2FY19 YoY Q1FY20 QoQ H1FY20 H1FY19 YoY Revenues 550 591 555 1106 1214 Other Income 11 -3 11 22 -17 Total Income 561 588 -4% 566 -1% 1128 1198 -6% Raw Material 372 377 350 723 772 Employee Expenses 22 20 25 47 41 Other Operating Expenses 68 75
Slide 6: Balance Sheet - Consolidated
Balance Sheet - Consolidated Rs. Crore Sep-19 Mar-19 Rs. Crore Sep-19 Mar-19 Shareholder’s Funds 1876 1778 Non-current Assets 2625 2524 Share capital 36 36 Fixed assets 2545 2427 Other Equity 1840 1742 Minority interest 52 82 Financial assets 28 46 Non-current Liabilities 1240 1158 Other non-current
Slide 7: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q2FY20 Q2FY19 YoY Q1FY20 QoQ H1FY20 H1FY19 YoY Revenues 381 419 421 802 861 Other Income 26 16 8 34 0 Total Income 407 435 -6% 429 -5% 835 861 -3% Raw Material 267 260 254 521 519 Employee Expenses 17 16 20 37 32 Other Operating Expenses 47 53 53 100 9
Slide 8: Balance Sheet - Standalone
Balance Sheet - Standalone Rs. Crore Sep-19 Mar-19 Rs. Crore Sep-19 Mar-19 Shareholder’s Funds 1668 1566 Non-current Assets 1294 1300 Share capital 36 36 Fixed assets 584 597 Other Equity 1632 1530 Financial assets 693 687 Non-current Liabilities 226 165 Long term borrowings 178 100 Other non-curren
Slide 9: Quarterly Volume – Steel Business
Quarterly Volume – Steel Business Iron Ore Pellets Sponge Iron Steel Billets Wire Rod H. B Wires Ferro Alloys Note: 1) A part of all production is captively consumed for production of downstream products 2) One Power Unit Production Sales All Fig. in ‘000 MT unless specified 9 under shutdown for 25
Slide 10: Quarterly Generation & Sales - Power Business
Quarterly Generation & Sales - Power Business Power (Thermal) Power (Hydro) Thermal Power (Captive) Capacity : 162 MW All Fig. in Mn KwH unless specified Generation Sales One Power unit under shutdown for 25 days at Raipur, affected Thermal Power generation 10
Slide 11: Sikkim Hydro Project Progressing well
Sikkim Hydro Project Progressing well UNIT-1 GENERATOR STATOR & LOWER 10MVA STATION TRANSFORMER ERECTION UNIT-1 HPU INSTALLED BRACKET INSTALLED INSIDE BARREL COMPLETED UNIT-2 STATOR WINDING UNDER PROGRESS UNIT- 2 MIV ERECTION COMPLETED UNIT-1& 2, TURBINE HOUSING & DISTRIBUTOR COMPLETED 11
Slide 12: SEML – Consistent & Disciplined Growth
SEML – Consistent & Disciplined Growth
Slide 13: SEML at a Glance
SEML at a Glance Steel Business Hydro Power Financials (FY19) Pellet Production Billet Production Operational Capacity Revenue EBITDA 6 Lac MT 1.56 Lac MT 28.8 MW INR 2,217 Cr INR 499 Cr Wire Rod Production 1.18 Lac MT Capacity Under Execution PAT Dividend Per Share 120 MW INR 207 Cr INR 5/Share Fer
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 44 years • MS in Industrial Administration from experience in Iron and Steel Industry Purdue University, USA • Responsible for steering SEML towards the path of growth • Industry experience of more than
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
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 & sold Produced from captive Iron Ore Lumps & Hot rolled product made from direct produced by continuous casting Siltara dome
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 other countries • Leading exporter of the Ferro Alloys • Exports
Slide 21: Hydro Power Expansion
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 FY20 Debt free operation & operated at 45.42% Expected long term PLF to be around 40-45% Large hyd
Slide 22: Disciplined Growth
Disciplined Growth Consistently improving Balance Sheet Strength Working Rs. Cr Term Loan Total Capital Steel 424 224 648 Hydro Operational 120 - 120 Total 544 224 768 Hydro 594 - 594 Under execution Total 1,138 224 1,362 Steel Business includes Loans on major subsidiaries SEML & SMAL Hydro Business
Slide 23: Focus on Safety, Health & Social Responsibility
4 Focus on Safety, Health & Social Responsibility • SEML awarded - Appreciation Award for Best Company in the Entire • Adopted 90 single-teacher schools in Eastern Region on Safety category the tribal areas of Chhattisgarh • Safety is taken as top priority • Actively sponsors medical facilities, • R
Slide 24: Annual Financial Highlights
Annual Financial Highlights
Slide 25: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr FY15 FY16 FY17 FY18 FY19 Revenues 1,760 1,486 1,434 2,217 2,324 Other Income 63 35 67 70 17 Total Income 1,822 1,521 1,502 2,287 2,341 Raw Material 883 964 942 1,478 1,493 Employee Expenses 72 68 75 77 87 Other Operating Expenses 428 259 200 260 261
Slide 26: Financial Performance
Financial Performance Total Income EBITDA PAT 26 All Fig. in Cr. unless specified
Slide 27: Balance Sheet Highlights – Consolidated
Balance Sheet Highlights – Consolidated INR in Cr FY15 FY16 FY17 FY18 FY19 Share Capital 36 36 36 36 36 Tangible Networth 1,292 1,230 1,358 1,577 1,778 Long Term Borrowings 999 966 1,015 1,059 1,128 Other Liabilities 726 595 706 741 723 Total Liability 3,053 2,827 3,115 3,413 3,665 Net Fixed Asset B
Slide 28: Yearly Volume Trend
Yearly Volume Trend Iron Ore Pellets Sponge Iron Steel Billet All Fig. in ‘000 MT unless specified 28 Note: A part of all production is captively consumed for production of downstream products Production Sales
Slide 29: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod H. B Wires Ferro Alloys All Fig. in ‘000 MT unless specified 29 Note: A part of all production is captively consumed for production of downstream products
Slide 30: Yearly Power Generation
Yearly Power Generation Power (Thermal) Power (Hydro) All Fig. in Mn units unless specified Generation Sales 30 Note: A part of all production is captively consumed for production of downstream products
Slide 31: Thank You
Thank You Mr. Nilay Joshi (Head – Corporate Finance) Mr. Gaurang Vasani / Mr. Abhishek Bhatt njoshi@seml.co.in vgaurang@stellar-ir.com / abhishek@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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