Sandur Manganese & Iron Ores Ltd · NSE:SANDUMA
Sandur Manganese & Iron Ores — The Sandur Manganese & Iron Ores — Q4 FY2022 Earnings Presentation
36 slides from Sandur Manganese & Iron Ores's earnings presentation, May 20, 2022
Slide 1: Cover letter to BSE on investor presentation
(An ISO 9001:2015; ISO 14001:2015 and 45001:2018 certified company) CIN: L85110KA1954PLC000759; Website: www.sandurgroup.com REGISTERED OFFICE CORPORATE OFFICE ‘SATYALAYA’, No.266 ‘SANDUR HOUSE’, No.9 Ward No.1, Palace Road Bellary Road, Sadashivanagar Sandur – 583 119, Ballari District Bengaluru –
Slide 2: The Sandur Manganese & Iron Ores Limited, May 2022
MAY 2022 THE SANDUR MANGANESE & IRON ORES LIMITED
Slide 3: Agenda
SLIDE 03 About SANDUR SLIDE 12 Business Verticals Review SLIDE 18 Growth Drivers SLIDE 20 Conclusion SLIDE 24 Financial Review SLIDE 29 Q4FY22 Performance Highlights
Slide 4: About Sandur contents
SLIDE 04 Histor y and Background SLIDE 07 Business Canvas SLIDE 05 SANDUR at a Glance SLIDE 10 Improving Profit Profile SLIDE 06 Operational Units SLIDE 11 Values that Drive Us
Slide 5: History and Background
ABOUT SANDUR 04 History and Background INVESTOR PRESENTATION ▪ Manganese was discovered in the hills of H I S TO RY O F S A N D U R ’ S M I N I NG L E A S E S Sandur as early as 1838. ▪ Mining operations in the present lease area dates back to 1907. 1904 1954 1974 1994 2014 ▪ Erstwhile ruler of Sand
Slide 6: Sandur at a Glance
ABOUT SANDUR 05 SANDUR at a Glance INVESTOR PRESENTATION VALUABLE ASSETS EXTERNAL SALE : FY22 REVENUE SHARE CAPTIVE CONSUMPTION^ MANGANESE ORE 74% : 26% 6% IRON ORE 100% : 00% 31% 6+ decade as one of the Upon the introduction of rating based on most respected private- Sustainable Development Framewo
Slide 7: Operational Units
ABOUT SANDUR 06 Operational Units INVESTOR PRESENTATION Sandur Ballari and Vijayanagara (Districts) Karnataka Ramghad SANDUR – Deogiri Registered Office Bengaluru – Corporate Office ▪ Mining Leases (Deogiri, Kammathuru, Subbarayana Halli and Ramghad) ▪ Ferroalloy Plant, Power Plant, Yeshwant Nagar C
Slide 8: Business Canvas (Before, till FY20)
ABOUT SANDUR 07 Business Canvas (BEFORE, TILL FY20) INVESTOR PRESENTATION Mining Ferroalloys and Power BUSINESS ▪ 0.28 MTPA Manganese (Mn) Ore Capacity ▪ 32,000 TPA Ferroalloys Capacity SEGMENTS ▪ 1.60 MTPA Iron Ore Capacity ▪ 32 MW Coal-based Thermal Power Plant TRAITS ▪ Asset-light and high ROCE ▪
Slide 9: Business Canvas (At Present, FY21 & FY22)
ABOUT SANDUR 08 Business Canvas (AT PRESENT, FY21 & FY22) INVESTOR PRESENTATION Mining Ferroalloys Coke and Energy BUSINESS ▪ 0.28 MTPA Mn Ore Capacity ▪ 95,000 TPA/ 1,25,000 TPA ▪ 0.5 MTPA Coke Oven Plant SEGMENTS (Silicomanganese/Ferromanganese) ▪ 1.60 MTPA Iron Ore Capacity Ferroalloys Capacity ▪
Slide 10: Business Canvas (Going Forward)
ABOUT SANDUR 09 Business Canvas (GOING FORWARD) INVESTOR PRESENTATION Coke, Energy, DI Pipes Mining Ferroalloys & Pig Iron EXISTING ▪ 0.28 MTPA Mn Ore Capacity ▪ 95,000 TPA/1,25,000 TPA* ▪ 0.5 MTPA Coke Oven Plant CAPACITY (Silicomanganese/ Ferromanganese) ▪ 1.60 MTPA Iron Ore Capacity Ferroalloys C
Slide 11: Improving Profit Profile
ABOUT SANDUR 10 Improving Profit Profile INVESTOR PRESENTATION ▪ Multifold increase ▪ Diversification in profit in absolute PBT profile of the Company F Y 1 8 - 2 0 ( A v e r a g e *) FY21 FY22 (%) (%) (%) 230 Crore 296 Crore 996 Crore sandurgroup.com Mining 98% Mining 87% Mining 52% Ferroalloys 02%
Slide 12: Values that Drive Us
ABOUT SANDUR 11 Values that Drive Us INVESTOR PRESENTATION SANDUR is run by the SANDUR believes in Some of SANDUR’s successful Welfare Programs: ethos: reaching out to ▪ Food Security Scheme: For the last 5 decades, “All that we get (earn) from underprivileged community, SANDUR is providing a basket
Slide 13: Vasudeva Committee Report, 1965
Vasudeva Committee Report, 1965 “Although in case of a large number of mines, the mining operations do not follow any concerted or well thought out plan of development, there are a few bright exceptions. For example, the group of mines controlled by Manganese Ore India Ltd., M/s. Sandur Manganese &
Slide 14: Mining – our mainstay
BUSINESS VERTICALS REVIEW 13 Mining – our mainstay INVESTOR PRESENTATION ▪ Mining manganese and iron ores ▪ Fully-mechanized iron ore mining ▪ Currently producing 0.28 MTPA of ▪ Proposed to enhance manganese ore from two mining leases located in contributing to higher margins manganese ore and 1.60
Slide 15: Mining – our mainstay
BUSINESS VERTICALS REVIEW 14 Mining – our mainstay INVESTOR PRESENTATION ▪ Consistent Free Cash Flow generated from mining ▪ During Karnataka’s Mining Scam (2011) Lokayukta did not i. the owners of the lessee Company have voluntarily operations find any illegalities with SANDUR’s Mining Leases. Join
Slide 16: Ferroalloys - history
BUSINESS VERTICALS REVIEW 15 Ferroalloys - history INVESTOR PRESENTATION ▪ Established in 1968 at Vyasanakere (near Hosapete), with assurance F E R R O A L L O Y S O P E R AT I O N S and agreement with the State Electricity Board for supply of adequate (TPA ) power at viable rates. 70,000 ▪ Commence
Slide 17: Ferroalloys - new and improved
BUSINESS VERTICALS REVIEW 16 Ferroalloys - new and INVESTOR PRESENTATION improved ▪ Turned around ferroalloys operations in FY21 through feasible power generation ▪ The combination of Coke Oven Plant and WHRB generates power as a by-product, thus leading to substantial savings by eliminating the nee
Slide 18: Coke and Energy – strengthening operations
BUSINESS VERTICALS REVIEW 17 Coke and Energy – strengthening operations INVESTOR PRESENTATION ▪ Started expansion work ▪ Fully commissioned ▪ 4 Batteries with a ▪ 2 Waste Heat Recovery in March 2018 Coke Oven on cumulative capacity of Boilers with a cumulative 18th January 2021 0.5 MTPA capacity of
Slide 19: CEC & Joint Team, Hon'ble Supreme Court
CEC & Joint Team Constituted by Hon’ble Supreme Court of India, 2011-2012 “ It is observed that (a) the joint team has not found any illegality vis-a-vis the sanctioned lease boundaries (b) the owners of the Lessee Company have voluntarily handed over more than 2000 ha of forest land owned by them t
Slide 20: Phase 1 CAPEX
GROWTH DRIVERS 19 Phase 1 CAPEX INVESTOR PRESENTATION Coke Oven Waste Heat Recovery Downhill Roads Housing Plant Boilers Conveyor Project Project Fully-commissioned on Fully-commissioned on ▪ Electrical Works - 100% ▪ Public Road (14 km) – Deogiri 18th January 2021 18th January 2021 completed 83% co
Slide 21: Mahatma Gandhi quote on Sandur
Mahatma Gandhi “Sandur is an oasis in a desert…. The Ruler of a small State (Sandur) in South India has thrown open his temples to the Harijans. The heavens have not fallen.” SLIDE 21 Investment Rationale SLIDE 22 Strong Parentage
Slide 22: Investment Rationale
CONCLUSION 21 Investment Rationale INVESTOR PRESENTATION Stable & Growing Cash flows through long-standing mining operations New and improved ferroalloys operations, reducing overhang on financial performance Emerging integrated player, miner to hot metal & value-added products manufacturer, to enjo
Slide 23: Strong Parentage
CONCLUSION 22 Strong Parentage INVESTOR PRESENTATION Y. R. GHORPADE M. Y. GHORPADE S. Y. GHORPADE T.R. RAGHUNANDAN BAHIRJI A. GHORPADE FOUNDER PATRON CHAIRMAN EMERITUS CHAIRMAN MANAGING DIRECTOR ▪ His Highness Yeshwantrao Hindurao ▪ Murarirao Yeshwantrao Ghorpade (1931 – ▪ Chairman and Managing Dire
Slide 24: Strong Parentage
CONCLUSION 23 Strong Parentage INVESTOR PRESENTATION S. S. RAO G.P. KUNDARGI LATHA PILLAI JAGADISH RAO KOTE H.L. SHAH MD. ABDUL SALEEM INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR DIRECTOR DIRECTOR (MINES) He holds a Bachelor’s degree in G.P. Kundargi graduated
Slide 25: Financial Review contents
SLIDE 25 Profit and Loss SLIDE 27 Cash Flows SLIDE 26 Balance Sheet SLIDE 28 Ratios
Slide 26: Profit & Loss Summary
FINANCIALS REVIEW 25 Profit & Loss Summary INVESTOR PRESENTATION PARTICULARS (₹ IN CRORE) FY17 FY18 FY19 FY20 FY21 FY22 Revenue from Operations 422.23 612.39 702.15 591.60 746.59 2,248.74 Revenue from Operations Total Income 427.31 623.49 720.23 597.26 764.36 2,283.97 CAGR between FY17-22 Operating
Slide 27: Balance Sheet Summary
FINANCIALS REVIEW 26 Balance Sheet Summary INVESTOR PRESENTATION PARTICULARS (₹ IN CRORE) FY17 FY18 FY19 FY20 FY21 FY22 Shareholders' Funds 417.55 529.71 665.92 839.69 993.11 1659.22 Increase in equity base Non Current Liabilities 19.55 4.56 6.24 344.96 358.58 280.89 between FY17 to FY22 Long Term B
Slide 28: Cash Flows Summary
FINANCIALS REVIEW 27 Cash Flows Summary INVESTOR PRESENTATION PARTICULARS (₹ IN CRORE) FY17 FY18 FY19 FY20 FY21 FY22 Consistently generated Operating Cash Flows Cash from Operating Activities 80.53 122.01 160.09 (13.30) 340.02 873.06 reinvested for increasing scale of operations. Cash from Investing
Slide 29: Ratios
FINANCIALS REVIEW 28 Ratios INVESTOR PRESENTATION REVENUE, EBITDA (excl. OI) OPERATING MARGINS ROCE, CAPITAL EMPLOYED (₹ IN CRORE) (IN %) (IN % & ₹ IN CRORE) 2,500 2,249 50% 43% 2,500 60% 1,980 36% 2,000 40% 31% 33% 2,000 27% 1,362 48% 40% 1,500 30% 21% 1,500 1,248 974 31% 33% 1,000 702 747 20% 1,00
Slide 30: Q4FY22 Performance Highlights contents
SLIDE 30 Q4FY22 Operational SLIDE 32 Q4FY22 Financial Highlights Highlights SLIDE 31 Q4FY22 Segment SLIDE 33 Management Highlights Commentar y SLIDE 34 Corporate Information
Slide 31: Q4FY22 Operational Highlights
Q4FY22 PERFORMANCE HIGHLIGHTS 30 Q4FY22 Operational Highlights INVESTOR PRESENTATION FIRING ON ALL CYLINDERS MANGANESE ORE IRON ORE FERROALLOYS COKE ▪ 0.69 Lakh Tonne Production ▪ 3.50 Lakh Tonne Production ▪ 12,546 Tonne Production ▪ 0.85* Lakh Tonne Production ▪ Optimum Capacity Utilization ▪ Full
Slide 32: Q4FY22 Segment Highlights
Q4FY22 PERFORMANCE HIGHLIGHTS 31 Q4FY22 Segment Highlights INVESTOR PRESENTATION MANGANESE ORE OPERATIONAL PERFORMANCE IRON ORE OPERATIONAL PERFORMANCE (Lakh Tonnes & ₹/Tonne) (Lakh Tonnes & ₹/Tonne) 3.00 2.85 18.00 4,470 4,493 10,766 16.00 3,967 2.50 2.85 15.95 3,726 8,377 8,764 14.00 15.92 3,268 6
Slide 33: Q4FY22 Financial Highlights
Q4FY22 PERFORMANCE HIGHLIGHTS 32 Q4FY22 Financial Highlights INVESTOR PRESENTATION FIRING ON ALL CYLINDERS Revenue from Operations EBITDA PAT Capital Structure (₹ in Crore) (excluding OI) 716 222 236 1,659 Shareholders funds Growth (YoY) 100% 65% 232% Growth (QoQ) 46% 16% 116% Margin 31% 33% Margins
Slide 34: Q4FY22 Management Commentary
Q4FY22 PERFORMANCE HIGHLIGHTS 33 Q4FY22 Management Commentary INVESTOR PRESENTATION I am pleased to report that SANDUR had Phase 2 CAPEX another strong quarter and year. Your Company SANDUR has announced a few expansion reported all-time highs in Revenue from projects that are currently in the works
Slide 35: Corporate Information
Q4FY22 PERFORMANCE HIGHLIGHTS 34 Corporate Information INVESTOR PRESENTATION SHAREHOLDING SUMMA RY (IN %) 26.82% PROMOTER Current Market Price ₹3,576 52 Week High/Low ₹5,075/1,405 73.18% PUBLIC Market Capitalization ₹3,220 Cr Shares Outstanding 0.90 Cr BSE Scrip Code 504918 sandurgroup.com Sharehold
Slide 36: Safe Harbor
MAY 2022 THE SANDUR MANGANESE & IRON ORES LIMITED SAFE HARBOR BIJAN KUMAR DASH This document which has been prepared by The Sandur Manganese & Iron Ores Limited (the “Company”, “SANDUR”, “SMIORE”), have been prepared solely for information purposes and do not constitute any offer, recommendation or
The Sandur Manganese & Iron Ores — Q4 FY2022 Earnings Presentation on 6ix