Sarda Energy & Minerals Limited · NSE:SARDAEN
Sarda Energy & Minerals — Q3 FY22 Earnings Presentation
44 slides from Sarda Energy & Minerals's earnings presentation, Feb 7, 2022
Slide 1: Covering letter to stock exchanges
Industrial Growth Center, Siltara An ISO 9001, ISO 14001 & OHSAS 18001 pair (CG) 493111, India Certified Company el: +91 771 2216100 oN Fax : +91 771221619899 ie) avian SA PAN No.: AAACR6149L \&/ ae CIN : L27100MH1973PLC 016617 = SARDA ENERGY & MINERALS LTD. www.semi.co.in info@seml.co.in 7th Februa
Slide 2: Result Presentation | Q3 & 9MFY22
Result Presentation | Q3 & 9MFY22
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 Q3 & 9MFY22 - Key Highlights 2 SEML – De-risked and Diversified 3 Financial Performance 4 Corporate Social Responsibility 3
Slide 5: Q3 & 9MFY22 | Key Highlights
an Q3 & IMFY22 | Key Highlights
Slide 6: Robust Operational and Financial Performance
Robust Operational and Financial Performance Financial Performance: • Highest Ever Nine Months Revenue and Profits and Highest Ever Quarterly Standalone Revenue • Consolidated Revenue up 54% YoY to INR 986 Cr in Q3FY22 and 79% YoY to INR 2,872 Cr in 9MFY22 • Consolidated EBITDA margin up ~220 bps Yo
Slide 7: Metals: Benefits From The Strategic Edge Provided by Vertical Integration
Metals: Benefits From The Strategic Edge Provided by Vertical Integration Strengthening Presence Across the Value Chain has Aided in Sustainable Growth • Gare Palma IV/7 Coal Mine, having extractable reserves of 142 MMT and production capacity of 1.2 MMT p.a., commenced production and achieved rated
Slide 8: Hydro: Sizeable Operational Portfolio of ~143 MW; Annuity-like Business Model
Hydro: Sizeable Operational Portfolio of ~143 MW; Annuity-like Business Model • Operationalized the 113 MW Sikkim Hydro Power (SHP) project in Q2FY22 • Commissioned on June 30, 2021, and the effect of its operationalization is included in Q2FY22 & Q3FY22 consolidated results • Other Existing Project
Slide 9: ESG: Total Green Power capacity has now Surpassed Thermal Power
ESG: Total Green Power capacity has now Surpassed Thermal Power With ~163 MW (143 MW of Hydro + 20 MW of Waste Heat) of power generating capacity from Non-Carbon Energy sources and another 24.90 MW under execution, SEML is now a Green Powerhouse • Large hydropower projects with a capacity of more th
Slide 10: Sikkim Hydro Project - Significant Fillip to Consolidated EBITDA
Sikkim Hydro Project - Significant Fillip to Consolidated EBITDA… EBITDA Bridge – Q3FY22 (in INR Crore) • Sikkim Hydro Power project was commissioned on June 30, 2021, and led to… • Substantial jump in Hydro EBITDA which stood at ~INR 137 Cr in Q2FY22 and ~INR 67 Cr* in Q3FY22 as against INR 61 Cr i
Slide 11: And Commenced Repayment of Sikkim Hydro Debt from its Cash Flows
…And Commenced Repayment of Sikkim Hydro Debt from its Cash Flows Debt Bridge – As on Sep 30, 2021 (in INR Crore) 947 1,631 • Majority of the Total Debt is on account of the Sikkim Hydro project, repayment of 87 367 which has started as the plant has achieved COD 230 STANDALONE SMAL HYDRO - HYDRO -
Slide 12: Consolidated P&L – Highest Ever YTD Revenue & Profit
Consolidated P&L – Highest Ever YTD Revenue & Profit INR in Cr Q3FY22 Q3FY21 YoY Q2FY22 QoQ 9MFY22 9MFY21 YoY Revenues 999 604 1,025 2,856 1,500 Other Income -13 38 31 16 102 Total Income 986 642 54% 1,056 -7% 2,872 1,602 79% Raw Material 550 367 487 1,505 925 Employee Expenses 26 22 26 77 64 Other
Slide 13: Standalone P&L - Highest Ever Quarterly Revenue and YTD Revenue & Profit
Standalone P&L - Highest Ever Quarterly Revenue and YTD Revenue & Profit INR in Cr Q3FY22 Q3FY21 YoY Q2FY22 QoQ 9MFY22 9MFY21 YoY Revenues 671 440 592 1,881 1,044 Other Income -1 28 51 48 80 Total Income 670 467 43% 643 4% 1,929 1,124 72% Raw Material 400 261 331 1,081 635 Employee Expenses 18 17 18
Slide 14: Metals Segment - Product Prices Continue to Remain Firm
Metals Segment - Product Prices Continue to Remain Firm… Steel Segment: Product wise Incremental Realization (INR per MT) Iron Ore Pellet Sponge Iron Steel Billets Wire Rod H.B. Wire 2,454 2,315 2,348 3,061 3,266 3,246 1,337 4,497 1,878 13,774 Value 12,453 INR / MT 2,297 14,380 2,383 2,790 Addition
Slide 15: On The Back of Robust Demand Across Products – Volume Data (1/2)
…On The Back of Robust Demand Across Products – Volume Data (1/2) Iron Ore Pellets (‘000 MT) Sponge Iron (‘000 MT) Steel Billet (‘000 MT) 83 53 51 193 199 81 98 100 35 Q3 33 9 9 Production Sales Production Sales Production Sales 226 582 206 485 146 123 377 318 94 91 9M 17 21 Production Sales Product
Slide 16: On The Back of Robust Demand Across Products – Volume Data (2/2)
…On The Back of Robust Demand Across Products – Volume Data (2/2) Wire Rod (‘000 MT) H. B Wires (‘000 MT) Ferro Alloys (‘000 MT) 43 40 40 38 35 32 8 8 36 33 7 7 Q3 Production Sales Production Sales Production Sales 23 23 114 112 120 19 19 93 97 104 98 86 9M Production Sales Production Sales Producti
Slide 17: Power Segment - Highest Ever YTD Hydro Power Generation & Sales
Power Segment - Highest Ever YTD Hydro Power Generation & Sales Thermal Power + Waste Heat = Total Capacity 161.5 MW Hydro Power: Total Operational Capacity ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 272 110 110 253 Q3 34 34 25 18 GE NE RATION SAL E S GE NE RATION SAL E S 800 399 399 679 9M 120
Slide 18: Key Strategies to Drive Growth and Competitive Advantage
Key Strategies to Drive Growth and Competitive Advantage Backward Integration Capacity Expansion Diversification Adding Annuity-like Revenue Stream (Hydro) To Reduce Input Costs and Ensure Consistent Supply • Iron Ore Pellet capacity expanded by 2 lac MMT to 8 lac MMT, effective March 2021 • Commerc
Slide 19: SEML | De-Risked and Diversified
SEML | De-Risked and Diversified 18
Slide 20: Robust Business Model and Diversified Business
Robust Business Model and Diversified Business METALS SEGMENT HYDRO POWER SEGMENT Vast experience of over 47 years in Steel Manufacturing To de-risk from the cyclicality of Metals business, SEML diversified into renewable energy in Early 2000s Vertically integrated producer of Steel Products Forayed
Slide 21: Strategically Located Assets – Proximity to Raw Materials and End Users
Strategically Located Assets – Proximity to Raw Materials and End Users… Captive Iron Ore and Coal Mines located within ~140 km and ~200 km respectively, from the End-user plant at Chhattisgarh Iron Ore Mine at Rajnandgaon, Chhattisgarh (rated capacity of 1.5 MMT p.a.) Coal Mine at Gare Palma IV 7,
Slide 22: Built Over Four Decades of Excellence
…Built Over Four Decades of Excellence 1979-89 1989-99 1999-08 2008-18 2018-21 ▪Acquired Raipur Wires and Steel as a ▪Installed 25 TPD Electric Arc Furnance ▪Company started 24 MW captive ▪4.8 MW Hydro power plant ▪Billet capacity increased by 50% sick unit in 1979 in 1990 power plant and Ferro Allo
Slide 23: Well-Experienced and Strong Leadership at the Helm
Well-Experienced and Strong Leadership at the Helm Kamal Kishore Sarda Pankaj Sarda CMD Joint MD • Mechanical Engineer with 45 years • Mechanical Engineer with 17 years experience in Iron and Steel Industry experience in Iron and Steel Industry • Responsible for the groups vision and • Responsible f
Slide 24: Business Segments
Business Segments 23
Slide 25: Metal Business | Vertically Integrated Steel Player
Metal Business | Vertically Integrated Steel Player… Raw Material & Energy Generation (Captively procured key inputs, assure cost and quality control) Raw Material & Energy Generation Iron Ore Mine | Coal Mine | Power Intermediate / Finished Products (Flexibility to sell products across entire produ
Slide 26: Backed by Captive Resources, Driving Down Costs Significantly
… Backed by Captive Resources, Driving Down Costs Significantly Captive Iron Ore Mine Captive Thermal + Waste Heat Plants Two Coal Mines (Total Capacity of 1.5 MMT p.a.) (Total capacity of 161.5 MW) (Total Capacity of 1.8 MMT p.a.) • Located at Rajnandgaon, Chhattisgarh, which is • Located at both t
Slide 27: Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh
Robust Presence Across Steel Products – Siltara Plant in Chhattisgarh… Pellets Sponge Iron Billets Wire Rods HB Wires Description Semi finished steel product Produced from captive Iron produced by continuous Hot rolled product made HB Wires- Wire rods are Produced from Iron Ore Ore Lumps & Pellets.
Slide 28: And a Leading Manufacturer and Exporter of Ferro Alloys
…And a Leading Manufacturer and Exporter of Ferro Alloys ▪ Manufactures manganese-based Ferro Alloys sold domestically as Domestic Sales ('000 MT) Exports ('000 MT) well exported to other countries ▪ Leading exporter of manganese-based Ferro Alloys ▪ Exports Awards: ▪ SMAL received prestigious expor
Slide 29: Hydro Power Business | Operational Assets of ~143 MW
Hydro Power Business | Operational Assets of ~143 MW… 4.8 MW 24.9 MW 113 MW Location Uttarakhand Chhattisgarh Sikkim Name of the River Sarju Gullu Rongnichu Year of 2008 2017 2021 Commissioning Tariff INR 3.85 per unit INR 5.21 per unit Final tariff under determination Term of PPA 30 -year PPA with
Slide 30: With Track Record of Robust PLF and Annuity-like Revenue + High Margin
…With Track Record of Robust PLF and Annuity-like Revenue + High Margin Generation and Sales (Mn KwH) Revenue (INR Cr) & EBITDA Margin (%) Generation Sales 400 100% 399 399 85% 88% 350 83% 90% 80% 300 69% 69% 254 70% 250 57% 60% 200 50% 150 40% 129 129 115 115 30% 74 74 85 85 100 68 58 20% 35 45 19
Slide 31: Corporate Social Responsibility
Corporate Social Responsibility 30
Slide 32: Focus on Safety, Health & Social Responsibility
Focus on Safety, Health & Social Responsibility Health & Safety No. of Incidents Social Responsibility (including minor) 43 21 23 15 3 3 CY14 CY16 CY17 CY18 CY19 CY20 31
Slide 33: Initiatives Against COVID-19
Initiatives Against COVID-19 Donated Food Grains to Villagers COVID testing camps for Villagers Provided Medical Kit & Apparatus help to COVID-19 Hospitals Vaccine Drive for Employees: 99.7% given 1st dose and 80% given both doses 32
Slide 34: Responsible Corporate Citizen (1/2)
Responsible Corporate Citizen (1/2) Education: Enabling quality education in community Salary support to Teachers at Siltara & Mines area village schools; Reward to Meritorious students of class 10 th & 12th; Support to Educational Trust development; Support to Ekal Vidyalayas for education developm
Slide 35: Responsible Corporate Citizen (2/2)
Responsible Corporate Citizen (2/2) Education Health Infrastructure Livelihood Cultural 34
Slide 36: Financial Performance
Financial Performance 35
Slide 37: Strong Balance Sheet: Comfortable Leverage Position
Strong Balance Sheet: Comfortable Leverage Position Figures in INR Crore 2616 2,221 2,199 2244 2,132 1,870 1,768 1,807 • Improving TOL/ NW ratio along 1,702 1,743 1,537 1,576 with strong liquidity position 1,358 1,223 1.45 • With additional cashflows post 1.26 1.14 commissioning of Sikkim Hydro 1.12
Slide 38: Consolidated P&L – Consistent Growth and High Profit Margins
Consolidated P&L – Consistent Growth and High Profit Margins INR in Cr FY18 FY19 FY20 FY21 9MFY22 Revenues 2,217 2,324 2,000 2,199 2,856 Other Income 70 17 -17 144 16 Total Income 2,287 2,341 1,983 2343 2,872 Raw Material 1,478 1,493 1,293 1,347 1,505 Employee Expenses 77 87 88 89 77 Other Operating
Slide 39: Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile
Consolidated BS – Conservative Capital Structure and Strong Liquidity Profile INR in Cr FY18 FY19 FY20 FY21 H1FY21 Share Capital 36 36 36 36 36 Tangible Networth 1,540 1,707 1,834 2,185 2,580 Minority Interest 88 132 100 101 109 Long Term Borrowings 998 1,078 1,436 1,500 1,419 Short Term Borrowings
Slide 40: 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) 600 600 600 619 582 302 325 175 177 278 291 157 136 146 226 FY18 FY19 FY20 FY21 9MFY22 FY18 FY19 FY20 FY21 9MFY22 FY18 FY19 FY20 FY21 9MFY22 SALES ('000
Slide 41: Yearly Trend | Production and Sales (2/2)
Yearly Trend | Production and Sales (2/2) Wire Rod H. B. Wires Ferro Alloys PRODUCTION ('000 MT) PRODUCTION ('000 MT) PRODUCTION ('000 MT) 142 147 28 149 26 145 113 119 120 23 23 124 132 21 114 FY18 FY19 FY20 FY21 9MFY22 FY18 FY19 FY20 FY21 9MFY22 FY18 FY19 FY20 FY21 9MFY22 SALES ('000 MT) SALES ('0
Slide 42: Power Segment: Generation & Sales (volumes)
Power Segment: Generation & Sales (volumes) Thermal Power + Waste Heat = Capacity of ~162 MW Hydro Power – Capacity of ~143 MW (Figures in Mn KwH) (Figures in Mn KwH) 1,076 1,010 999 399 399 964 800 115 115 129 129 173 74 74 85 85 145 142 103 61 FY18 FY19 FY20 FY21 9MFY22 FY18 FY19 FY20 FY21 9MFY22*
Slide 43: Share Price Information
Share Price Information Volume (# Shares) Share Price (INR) 1000 180000 900 160000 800 140000 700 120000 600 100000 500 80000 400 60000 300 200 40000 100 20000 0 0 Feb-21 Mar-21 Apr-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Capital Market Information (as on 04-F
Slide 44: THANK YOU
THANK YOU Mr. Nilay Joshi (Head – Corporate Finance) Ms. Pooja Sharma njoshi@seml.co.in pooja.sharma@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 43
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