Shyam Metalics & Energy Ltd. · NSE:SHYAMMETL
Shyam Metalics & Energy — Q2 FY22 Earnings Presentation
44 slides from Shyam Metalics & Energy's earnings presentation, Nov 16, 2021
Slide 1: Investor Presentation
Investor Presentation November 2021
Slide 2: 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 3: Key Updates for H1 FY22
Key Updates for H1 FY22 Strengthening • signs Salman Khan as Brand Ambassador Brand Improving Efficiency • Improving efficiency by enduring technology • Acquisition of controlling stake of 90% in Shree Venkateshwara Electrocast Private Acquisition Limited (SVEPL) Capex Update • Updates on Projects t
Slide 4: Signs Salman Khan as Brand Ambassador
signs Salman Khan as Brand Ambassador Shyam Metalics And Energy Limited has signed leading Bollywood superstar Salman Khan as the brand ambassador for endorsing its S-E-L TMT rebars “I have gone through the journey of the company and am excited to be part of the brand-building exercise of SEL TMT, w
Slide 5: Improving efficiency by enduring technology
Improving efficiency by enduring technology ▪ Committed to its mission of Industry 4.0. The Company has : ▪ Identified key levers like Digitization, IOT, Less paper, Skill Development, Operation Excellence, and Program based on the principles of KAIZEN, 5S, Lean, TPM and TQM to achieve its goals ▪ U
Slide 6: Update on acquisition of Shree Venkateshwara Electrocast Pvt. Ltd.
Update on acquisition of Shree Venkateshwara Electrocast Pvt. Ltd. Shyam Metalics and Energy Limited through its wholly owned subsidiary Shyam SEL & Power Limited (SSPL) successfully completed the acquisition of Deal Strategy controlling stake of 90% in Shree Venkateshwara Electrocast Private Limite
Slide 7: Updates on Projects to be commissioned during 2021-2022
Updates on Projects to be commissioned during 2021-2022 Projects Capacity Added Completion Date Cost Iron Pellets 1.20 MTPA November 2021 Rs. 159 crores Sponge Iron 0.28 MTPA November 2021 Rs. 80 crores Sponge Iron 0.44 MTPA December 2021 Rs. 160 crores Long Products 0.12 MTPA November 2021 Rs. 35 c
Slide 8: Performance Highlights
Performance Highlights Q2 FY22 Revenue EBITDA PAT 87% 140% 157% H1 FY22 Revenue EBITDA PAT 121% 218% 262% The Board has recommended a Dividend of Rs. 2.25 per share (22.5% of FV of Rs. 10 per share) 8
Slide 9: Shyam Metalics at a Glance
Shyam Metalics at a Glance • Leading Integrated Steel and Ferro Alloys Producer in India • 4th Largest Sponge Iron Player, Leading player in terms of Pellet Capacity • Integrated Metal Producing Company • Strategically located plants with Proximity to Mineral Belts, National Highways and • Operates
Slide 10: Value Propositions
Value Propositions 1 2 3 4 5 Logistical Advantage Captive Power for Backward & Forward Flexible & Diversified Strong Brand & & Infrastructure Integration with ~81% power Product Mix Distribution Network Advantage with presence across the requirement Private Railway Sidings Value Chain 6 7 8 9 Capaci
Slide 11: Focus on Quality, Flexibility, Greater Control
Focus on Quality Flexibility to alter Product Mix Greater Control on Operations Multiple sale points across Value Chain The integrated nature of our operations enable us to maintain better control over our quality and Lowest Per Tonne Capex in the Industry consistency in our performance
Slide 12: 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 13: 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 in Jamuria, West Bengal with aggregate installed capacity of 5.61 MTPA comprising of intermediate and fi
Slide 14: …Lowest Capex compared to the Industry
…Lowest Capex compared to the Industry • Brownfield capacity expansion expected to increase aggregate installed metal capacity (comprising of intermediate and final products) from 5.71 MTPA to 11.60 MTPA and captive power plants aggregate Advantages of Brownfield Expansion installed capacity from 22
Slide 15: Interchangeable Product Mix, B2B and B2C
Interchangeable Product Mix Catering to both B2B and B2C Top 5 Customers contribute <15% Insulated from the threat of imports SEL is every engineers first choice Each product has the potential for Exports
Slide 16: Diversified & Interchangeable Product Mix
Diversified & Interchangeable Product Mix Capacity (Million MTPA) FY18 FY19 FY20 FY21 Iron Pellet 0.90 0.90 2.4 2.4 Sponge Iron 1.01 1.01 1.27 1.39 Existing Products Billets 0.54 0.63 0.80 0.89 TMT, Structural Steel, 0.25 0.25 0.82 0.82 Wire Rods & Pipes Ferro Alloys 0.19 0.21 0.21 0.21 Captive Powe
Slide 17: Increasing share of B2C/Value Added Products
Increasing share of B2C/Value Added Products Structural Products are hot rolled products of special TMT Bars are high-strength reinforced bars having a forms like rounds, angles, channels & beams tough outer core and soft inner core We not only make structurals of standard dimensions, but also Custo
Slide 18: Huge Export Potential
Huge Export Potential 43% 41% 16% 23 Countries Exports to countries like Steel products both upstream and Ferro Chrome Pellets USA, Japan, Korea, Italy, downstream including Angles, Ferro Manganese and Nepal, Bangladesh Beams, Billets, Channels, Wire Rods, Silico Manganese Products MS Round Coils an
Slide 19: Close Proximity to Raw Material, Logistics, Captive Power
Close Proximity to Raw Material Strong Logistics Infrastructure Lowest Cost Captive Power Waste used as Productive Inputs Committed to deliver Excellence
Slide 20: Strategically Located - Supported by Infrastructure
Strategically Located - Supported by Infrastructure Strategically located in the mineral rich East Indian region 80 distributors stock and sell the finished products across 27 states and 1 Union Territory Raw Material Sources are within 250 kms Kolkata We sell 70% of our products Haldia within the v
Slide 21: Lowest Cost Captive Power
Lowest Cost Captive Power • Power consumed by the plants are primarily produced in-house by the captive power 4 Captive Plants Sambhalpur Total Capacity of 118 MW plants • Captive power plants utilise non fossil fuels such as waste, rejects, heat and gas generated 3 Captive Plants Jamuria Total Capa
Slide 22: Waste to Value
Waste to Value Efficient use of by products: Effluents/Wastes from all Steam generated used Fly ash bricks are Washery rejects used in in production of Power the production activity are utilized in various product and then in Ferro Alloys created from industrial Power Plant wastes verticals to creat
Slide 23: Capacity Expansion, Newer Products, Strengthening Brand SEL
Capacity Expansion Launch of Newer Products Strengthening Brand ‘SEL’ Continue to remain one of the lowest cost producer of steel in India
Slide 24: Capacity Expansion –Share of High Value Products to Increase
Capacity Expansion –Share of High Value Products to Increase Break-up of Capacity Expansion (MTPA) 0.2 0.2 11.5 Capacity Expansion is on the existing land, will help 2.0 0.2 0.2 0.0 0.0 Company augment revenues, better cost controls, 1.2 increase in profitability 2.0 0.8 1.1 0.6 0.9 2.9 0.6 Target c
Slide 25: Revenue mix skewed towards Finished Steel
Revenue mix skewed towards Finished Steel Revenue Mix 19% 18% 16% 31% Flexibility to Sell Intermediate Product, use for 17% 23% Captive Consumption 15% 37% 25% 24% 19% 12% 11% 25% 27% 20% 24% 9% 11% 14% 2018 2019 2020 2021 Ferro Alloys TMT, Structural and Pipes Steel Billets Sponge Iron Iron Pellets
Slide 26: Strengthening Brand ‘SEL’
Strengthening Brand ‘SEL’ TMT STRUCTURE WIRE RODS TMT are used for the construction of buildings, transmission Towards forward integration, SMEL has set up high towers, industrial sheds, structures, road, dam and in other Structural steel describes hot rolled steel products such quality Wire Rod man
Slide 27: Sustainable strong EBITDA, Least Leveraged, Record Profitability
Sustainable strong EBITDA Least Leveraged Record Profitability Track Record Disciplined Capital Allocation We have delivered consistent growth both in terms of financial and operational parameters
Slide 28: Strong Q2 FY22 Performance
Strong Q2 FY22 Performance Revenue from Operations EBITDA Profit After Tax +87% +140% +157% Rs. 2,494 crores Rs. 624 crores Rs. 410 crores Revenue Breakup Volumes (in lakh tonnes) Blended EBITDA per tonne (Rs.) Y-o-Y +9% Y-o-Y Q-o-Q 17.7% 8.3 8.3 +92% 24.2% 0.4 0.4 +1% 7.7 Q-o-Q 0.4 19,196 1.8 1.8 1
Slide 29: Strong H1 FY22 Performance
Strong H1 FY22 Performance Revenue from Operations EBITDA Profit After Tax +121% +218% +262% Rs. 4,959 crores Rs. 1,312 crores Rs. 868 crores Revenue Breakup Volumes (in lakh tonnes) Blended EBITDA per tonne (Rs.) +21% +124% 16.7% 16.6 18,089 24.8% 0.8 13.7 3.6 0.6 2.4 0.9 1.3 2.7 16.0% 34.3% 1.4 8,
Slide 30: Per Tonne Realizations
Per Tonne Realizations Ferro Products Finished Steel Steel Billets +62% +56% +40% +42% +49% +53% 1,02,550 99,057 45,730 46,012 41,533 41,778 63,412 32,682 32,394 27,952 27,307 63,204 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Sponge Iron Iron Pell
Slide 31: Strong Balance Sheet – Flexibility of Growth
Strong Balance Sheet – Flexibility of Growth 0.06x Conservatively Leveraged + Gross Debt / Equity Internal Operating Efficiency led to more than (as of 30th September 2021) Disciplined Capital Allocation strategy 50% reduction in Working capital requirements = One of Lowest Gearing amongst competito
Slide 32: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q2 FY22 Q2 FY21 Y-o-Y Q1 FY22 Q-o-Q H1 FY22 H1 FY21 Y-o-Y Total Revenue 2,494.3 1,335.2 87% 2,465.0 1% 4,959.4 2,247.0 121% Cost of Material Consumed 1,534.6 843.1 1,490.4 3,025.0 1,385.0 Purchase of Stock 15.0 1.7 7.4 22.3 1.7 Change in In
Slide 33: Consolidated Balance Sheet as on 30th September 2021
Consolidated Balance Sheet as on 30th September 2021 ASSETS (Rs. Crs.) Sept-21 Mar-21 EQUITY & LIABILITIES (Rs. Crs.) Sept-21 Mar-21 Non ‐ Current Assets Equity Share Capital 255.1 233.6 a) Property, Plant and Equipment 1,668.0 1,758.9 Other Equity 4,840.5 3,400.4 b) Right-of-use assets 45.1 42.7 To
Slide 34: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) Sept-21 Mar-21 Cash Flow from Operating Activities Profit before Tax 1,207.0 1,055.0 Adjustment for Non-Operating Items -106.6 -317.8 Operating Profit before Working Capital Changes 1,313.6 1,372.8 Changes in Working Capital -97.4 134.4 Cash Generat
Slide 35: Strong Operating Performance
Strong Operating Performance Revenues (Rs. Crs.) EBITDA (Rs. Crs.) Profit After Tax (Rs. Crs.) 6,297 1,394 844 4,606 637 4,376 945 528 3,747 701 666 340 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 CAGR % 19% 26% 17% FY20 was lower due to impact of CoVID-19 in March 2020 35
Slide 36: Strong Debt Profile
Strong Debt Profile Gross Debt (Rs. Crs.) Net Debt (Rs. Crs.) 1,050 960 785 347 448 425 656 480 320 -757 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Net Debt / Equity Net Debt / EBITDA 0.34 1.51 0.19 0.18 0.12 0.50 0.48 0.31 -0.15 -0.58 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Ma
Slide 37: Operating Cashflows
Operating Cashflows Rs. Crores 1,200 1049.8 1008.3 1,000 800 645.5 600 563.7 502.7 488.1 456.5 464.5 400 403.4 361.1 475.0 200 99.3 0 -31.6 FY18 FY19 FY20 FY21 H1 FY22 -200 -91.0 -400 -600 -654.7 -800 Cash Flow from Operations Capex Free Cash Flow 37
Slide 38: Our Values
Vision Statement Management Team OUR VALUES Listing on BSE & NSE Corporate Social Responsibility Integrity | Ownership | Collaboration | Commitment
Slide 39: Vision
Vision Statement VISION Enhanced Relentless pursuit Value Creation Process Innovation Stakeholder of Opportunity Participation 39
Slide 40: Experienced Leadership & Team
Experienced Leadership & Team Mahabir Prasad Agarwal Brij Bhushan Agarwal Sanjay Kumar Agarwal Non-Executive Chairman Vice Chairman & MD Joint Managing Director He holds a bachelor’s degree in commerce, with honours, from the He holds a bachelor’s degree in commerce from the University of He has ove
Slide 41: Experienced Leadership & Team
Experienced Leadership & Team Venkata Krishna Nageswara Rao Yudhvir Singh Jain Ashok Kumar Jaiswal Majji Independent Director Independent Director Independent Director He holds a bachelor’s degree in science, with honours, from He holds a bachelor’s degree in science from Banaras Hindu He holds a ba
Slide 42: Shyam Metalics Listing
Shyam Metalics Listing Shyam Metalics listed on NSE and BSE on 24th June, 2021 Total Issue Size Offer Price Equity Shares of ₹10 aggregating ₹306 per equity share up to ₹909 crores Primary Issue Times Subscription Equity Shares of ₹10 aggregating 119.81x up to ₹657 crores 42
Slide 43: CSR Initiatives
CSR Initiatives • Yearly Eye & Medical Camp for Villagers • Free Ambulance & Drinking water Services for villagers Rural Health • New Health Center & Homeopathy Clinic • FREE Medicine & Spectacles and Blood Donation Camp • FREE Coaching Center for Economic backward Section • Computer Training Center
Slide 44: Investor Relations Partners
Shyam Metalics & Energy Limited Mr. Pankaj Harlalka +91 9830028142 pankaj.harlalka@shyammetalics.com Investor Relations Partners Ms. Payal Dave +91 9819916314 payal.dave@linkintime.co.in Mr. Deven Dhruva Shyam Metalics & Energy Ltd. +91 9833373300 CIN No. : U40101WB2002PLC095491 deven.dhruva@linkint
Shyam Metalics and Energy — Q2 FY22 Earnings Presentation on 6ix