Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q4 FY2024 Earnings Presentation
45 slides from Sarda Energy & Minerals's earnings presentation, May 27, 2024
Slide 1: Cover letter to stock exchanges
An ISO 9001, ISO 14001 & ISO 45001 Certified Company SARDA ENERGY & MINERALS LTD. 27th May 2024 BSE Ltd National Stock Exchange of India Ltd. The Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E), Mumbai – 400051 Dalal Street – Mumbai 400 001
Slide 2: Result Presentation Q4 & FY24
Result Presentation | Q4 & FY24 Sarda Energy & Minerals Limited ‘It’s Energy and Minerals, Not Only Steel’
Slide 3: 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 4: Table of Contents
Table of Contents 1 Sustainable Growth Strategy 2 Q4 & FY24 - 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
Slide 5: Sustainable Growth Strategy
Sustainable Growth Strategy
Slide 6: 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
Slide 7: Creating Competencies Beyond Metals
Creating Competencies Beyond Metals… Minerals Energy Metals (Iron Ore and Coal) (Thermal, Hydro, Solar) (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:
Slide 8: Well-Diversified Cashflow Profile of the Company
… Leading to a Well-Diversified Cashflow Profile of the Company Operating EBITDA Bridge (INR Cr) – FY24 Spread across Cyclical and Non-Cyclical business streams ‘It’s Energy and Minerals, Not Only Steel’ 7
Slide 9: 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 391 345 270 174 171 139 134 (127) (313) (903) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Gross Debt Net Debt* Oct 17, 2023 Consolidated (INR Cr) 1,687 1,714 1,581 1,383 1,401 1,40
Slide 10: Augmenting Capacity to Foster Growth
Augmenting Capacity to Foster Growth Minerals Energy ➢ Gare Palma IV/7 Coal Mine Chhattisgarh: Capacity enhanced from 1.2 ➢ Hydro Power: 24.9 MW plant on the Rehar river in Chhattisgarh - construction has MTPA to 1.44 MTPA in May-23, and increasing further to 1.68 MTPA started; Expected to achieve C
Slide 11: 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
Slide 12: Q4 & FY24 Key Highlights
Y SARDA ENERGY & MINERALS LTD. Q4 & FY24 | Key Highlights
Slide 13: Key Financial Highlights (Consolidated)
Key Financial Highlights (Consolidated) ▪ Revenue from Operations: INR 889 Cr Financial ▪ EBITDA: INR 196 Cr; Margin at 21.0% Performance ▪ Net Profit: INR 88 Cr; Margin at 9.4% ▪ Recommended dividend of 100% on the face value, that is, Rs 1 per Equity Share ▪ Highest Ever Annual Production of Coal
Slide 14: Consolidated P&L Highlights
Consolidated P&L Highlights INR in Cr Q4FY24 Q4FY23 YoY Q3FY24 QoQ FY24 FY23 YoY Revenue from Operations 889 1,076 -17% 925 -4% 3,868 4,212 -8% Other Income 43 24 34 184 49 Total Income 933 1,100 -15% 959 -3% 4,052 4,261 -5% Raw Material 571 709 567 2,407 2,495 Employee Expenses 34 31 39 142 127 Oth
Slide 15: Standalone P&L Highlights
Standalone P&L Highlights INR in Cr Q4FY24 Q4FY23 YoY Q3FY24 QoQ FY24 FY23 YoY Revenue from Operations 670 816 -18% 657 2% 2,733 3,020 -10% Other Income 30 17 37 185 87 Total Income 700 833 -16% 695 1% 2,919 3,108 -6% Raw Material 425 511 414 1,792 1,789 Employee Expenses 25 23 29 106 95 Other Opera
Slide 16: Balance Sheet – Conservative Capital Structure and Comfortable Liquidity
Balance Sheet – Conservative Capital Structure and Comfortable Liquidity Position Consolidated Standalone Consolidated Standalone Liabilities (INR Cr) Assets (INR Cr) Mar-23 Mar-24 Mar-23 Mar-24 Mar-23 Mar-24 Mar-23 Mar-24 Shareholder’s Funds 3,410 3,889 3,103 3,516 Non-Current Assets 3,202 3,377 1,
Slide 17: 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 3,201 2,883 2,454 4,181 2,365 3,061 3,602 4,037 2,677 3,243 2,162 3,836 18,888 18,124 3,595 INR / MT 15,340 13,774 16,141 15,307 17,098 15,059 14,999 13,370 Value Addition
Slide 18: 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) 316 228 229 800 810 290 Production 195 84 78 62 54 188 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24* FY23 FY24 Q4FY23 Q4FY24* FY23 FY24 Iron Ore Pellet (‘000 MT) Sponge Iron (‘000 MT) Steel
Slide 19: 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) 190 193 39 38 200 Production 164 52 47 10 9 53 47 Q4FY23 Q4FY24* FY23 FY24 Q4FY23 Q4FY24* FY23 FY24 Q4FY23 Q4FY24* FY23 FY24 Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 15
Slide 20: 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) 1,262 1,083 532 479 321 289 30 26 Q4FY23 Q4FY24* FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Sales (Mn Kwh) Sales (Mn Kwh) 494
Slide 21: SEML | Beyond Steel
Y SARDA ENERGY & MINERALS LTD. SEML | Beyond Steel
Slide 22: 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 stability ✓ To de-risk from the cyclicality of Metals business, SEML ✓ Vast experience of 50 years in Steel Manufacturing of raw materials & energy.
Slide 23: 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
Slide 24: 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
Slide 25: 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 46 years experience in • MBA in International • MB
Slide 26: Business Segments
SARDA SARDA ENERGY & MINERALS LTD. Business Segments
Slide 27: Metals: Well-Established, 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 fines & sold domestically Ore Lumps & Pellets prod
Slide 28: 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 Primary 115 Exports Domestic - Markets 48 84 9
Slide 29: 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
Slide 30: 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
Slide 31: Hydro Track Record of Robust PLF and Annuity-like Revenue
…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% 494 85% 479 452 73% 423 423 70% 71% 322 325 271 115 115 129 129 58 68 FY20 FY21 FY22** FY23 FY24 FY20 FY21 FY22*
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility
Slide 33: 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’ 32
Slide 34: Education, Culture and Arts
Education, Culture and Arts ▪ Initiated Robotic education training in village schools ▪ Play Material support to Aanganwadi to develop Model Aanganwadi ▪ Physics & Chemistry lab material support to Govt college, Kharora ▪ Renovated School Boundary Wall at Mandhar ▪ Construction of School Building at
Slide 35: Healthcare and Infrastructure
Healthcare and Infrastructure ▪ Donated 3 Bone Marrow Transplant Units To Balco Medical Centre, ▪ Repair and Renovation of Ambedkar Chowk at Siltara village. Raipur ▪ Pond Deepening work at Raigarh –Pata Village ▪ Donation to Vedanta Cancer Hospital for Cancer Care of Community ▪ Creation of Model A
Slide 36: Livelihood: Environmental & Economic Sustainability
Livelihood: Environmental & Economic Sustainability ▪ Potable Drinking Water supply through water tanker at Siltara & ▪ Training to SHGs on making of Soft Toys and Costume Mandhar village Jewellery making ▪ Bricks provided for school and Gothan in villages of Mandhar, Siltara ▪ Conducted Sewing Trai
Slide 37: Historical Financials
SARDA SARDA ENERGY & MINERALS LTD. Historical Financials
Slide 38: Strong Balance Sheet: Cushion for Next Level of Growth
Strong Balance Sheet: Cushion for Next Level of Growth Figures in INR Crore 3,889 3,410 3,004 • Improving TOL/ NW ratio along with strong liquidity position. 2,218 2,199 2,190 2,132 1,971 2,007 1,870 • With additional cashflows post 1,743 1,807 commissioning of Sikkim Hydro 1.14 1.04 project and ope
Slide 39: 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 FY24 Revenues 2,324 2,000 2,199 3,914 4,212 3,868 Other Income 17 -17 144 50 49 184 Total Income 2,341 1,983 2,343 3,964 4,261 4,052 Raw Material 1,493 1,293 1,347 2,086 2,495 2,407 Employee Expenses 87
Slide 40: 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 Mar-24 Share Capital 36 36 36 35 35 Tangible Networth 1,834 2,182 2,968 3,375 3,853 Minority Interest 100 101 104 100 106 Long Term Borrowings 1,408 1,493 1,196 1,063 1,058 Short Term
Slide 41: 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) 800 810 741 325 228 229 619 316 600 600 302 192 175 177 291 294 290 157 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 F
Slide 42: 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) 190 193 39 200 161 38 142 147 32 145 159 164 119 23 26 124 132 21 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24
Slide 43: 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) 1,262 532 1,076 1,079 1,083 494 479 999 964 452 423 423 115 115 129 129 173 142 85 85 103 76 71 81 FY19 FY20 FY21 FY22 FY23 FY24 FY
Slide 44: Share Price Information
Share Price Information Volume ('000 shares) Close Price (Rs) 300 8,000 7,000 250 6,000 200 5,000 150 4,000 3,000 100 2,000 50 1,000 - - May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Capital Market Information (as on 24-May-24) Consistently Paying Dividen
Slide 45: 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
Sarda Energy & Minerals — Q4 FY2024 Earnings Presentation on 6ix