Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q1 FY20 Earnings Presentation
29 slides from Sarda Energy & Minerals's earnings presentation, August 2019
Slide 1: Sarda Energy & Minerals Limited
Sarda Energy & Minerals Limited ...On Course Towards the Next Growth Trajectory Investor Presentation | August 2019
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation and the accompanying slides (the which have been prepared by Sarda Energy & Minerals Ltd (the solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the bas
Slide 3: Agenda
Agenda Q1 FY20 : 1 Business Update & Financial Highlights 2 SEML Consistent & Disciplined Growth 3 Strategic Priorities 4 Annual Financial Highlights
Slide 4: Q1 FY20: Business Update & Financial Highlights
Q1 FY20 : Business Update & Financial Highlights
Slide 5: Q1FY20 Performance Highlights (Consolidated)
Q1FY20 Performance Highlights (Consolidated) Q1FY20 - Key Operational Highlights - Planned shutdown of Vizag plant for 30 days impacted the Revenue and EBITDA during the quarter - Highest ever Thermal Power generation (Standalone): 150Mn Kwh (Growth of 9% YoY) - Highest ever Steel Billet Production:
Slide 6: Profitability Highlights - Consolidated
Profitability Highlights - Consolidated INR in Cr Q1FY20 Q1FY19 YoY Q4FY19 QoQ Revenues 555 624 496 Other Income 11 -14 25 Total Income 566 610 -7% 521 9% Raw Material 350 394 326 Employee Expenses 25 20 26 Other Operating 70 72 63 Expenses EBITDA 121 123 -2% 106 14% EBITDA Margin (%) 21% 20% 100 bp
Slide 7: Profitability Highlights - Standalone
Profitability Highlights - Standalone INR in Cr Q1FY20 Q1FY19 YoY Q4FY19 QoQ Revenues 421 442 351 Other Income 8 -16 17 Total Income 429 426 1% 367 17% Raw Material 254 258 226 Employee Expenses 20 16 21 Other Operating 53 44 46 Expenses EBITDA 101 109 -7% 74 37% EBITDA Margin (%) 24% 26% (200) bps
Slide 8: Quarterly Volume Steel Business
Quarterly Volume Steel Business Iron Ore Pellets Sponge Iron Steel Billets 82 77 51 203 199 151 37 125 40 33 11 6 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Wire Rod H. B Wires Ferro Alloys 40 39 38 35 30 30 30 7 7 6 6 23 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Production Sales All Fig. in ‘000 MT
Slide 9: Quarterly Generation & Sales - Power Business
Quarterly Generation & Sales - Power Business Power (Thermal) Power (Hydro) 279 276 10 10 9 9 45 51 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Thermal Power (Captive) Capacity : 162 MW Generation Sales 9 All Fig. in Mn KwH unless specified
Slide 10: 1. SEML Consistent & Disciplined Growth
1. SEML Consistent & Disciplined Growth
Slide 11: 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 12: Company history and milestones
Billet capacity increased Company started 24 MW by 50% in FY19 Acquired Raipur Wires and captive power plant and Steel as a sick unit in 1979 Ferro Alloy plant in 2001 Pellet Capacity proposed to increase from 6,00,000 Installed 10 MT electric arc Commenced a fly ash brick MT to 8,00,000
Slide 13: Management team
Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 40 years • MS in Industrial Administration from experience in Iron and Steel Purdue University, USA Industry • Responsible for steering SEML • Industry experience of more than towards the path of growth 12 years Padam Kumar Jai
Slide 14: Plants / Facilities
Plants / Facilities Hydro Plant at Uttarakhand Hydro Plant at Sikkim Rajnandgaon (Iron Ore mine) Hydro Plant at Gullu to Siltara (SEML Plant) 140 kms Steel Plant (SEML** Plant) at Siltara Ferro Alloy Plant at Vizag under SMAL* Iron Ore Mine at Rajnandgaon Lower transportation costs due to close prox
Slide 15: 2. Strategic Priorities
2. Strategic Priorities
Slide 16: 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 17: Vertically integrated steel business
1 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 Hot rolled product made from direct hot Description Siltara domestically Lumps & Pellets produced by continuous casting b
Slide 18: Ferro Alloys business
• Two operational plants located at Raipur and Vizag with a total installed capacity of 111 MVA 86 • Manufactures manganese based Ferro Alloys sold domestically as well exported to other countries 64 52 • Leading exporter of the Ferro Alloys 43 37 • Exports Awards: SMAL received prestigious export
Slide 19: Hydro Power Expansion
2 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 Expected long term PLF to be around Large hydro projects o
Slide 20: Disciplined Growth
3 Disciplined Growth Consistently improving Balance Sheet Strength 2,000 3 1,822 1,756 1,768 1,778 1,800 1,702 2.5 1,576 1,600 1,537 Working Rs. Cr Term Loan Total Capital 1,400 1,358 2 1,210 1,223 Steel 424 224 648 1,200 1.77 1,000 1.5 Hydro Operational 120 - 120 1.45 1.26 800 1.12 Total 544 224 76
Slide 21: Focus on Safety, Health & Social Responsibility
4 Focus on Safety, Health & Social Responsibility Health & No. of Incidents Social Safety (including minor ) Responsibility 43 • Safety is taken as top priority • Adopted 90 single-teacher schools 37 • Regular medical check ups & in the tribal areas of Chhattisgarh inhouse medical facilities • Activ
Slide 22: 3. Annual Financial Highlights
3. Annual Financial Highlights
Slide 23: 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 24: Financial Performance
Financial Performance Total Income EBITDA PAT 2,287 2,341 499 205 207 472 1,822 440 1,521 1,502 127 284 230 56 16 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 24 All Fig. in Cr. unless specified
Slide 25: 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 Blo
Slide 26: Yearly Volume Trend
Yearly Volume Trend Iron Ore Pellets Sponge Iron Steel Billet 600 600 600 304 302 157 545 278 266 136 135 133 495 243 438 118 384 176 143 150 148 253 126 210 208 38 32 29 33 20 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 All Fig. in ‘000 MT unless specified 26 Note: A
Slide 27: Yearly Volume Trend (2)
Yearly Volume Trend (2) Wire Rod H. B Wires Ferro Alloys 149149 119 145 113 139 30 29 29 128 28 101 27 26 121 97 113 113 92 23 23 107 107 85 86 21 20 72 64 61 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Production Sales All Fig. in ‘000 MT unless specified 27 Note: A p
Slide 28: Yearly Power Generation
Yearly Power Generation Power (Thermal) Power (Hydro) 85 85 1,160 1,182 74 74 1,076 1,013 1,010 437 463 20 20 19 19 18 18 197 173 145 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 All Fig. in Mn units unless specified Generation Sales 28 Note: A part of all production is captively consumed for p
Slide 29: 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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