Shyam Metalics And Energy Limited has informed the Exchange about Investor Presentation
TM
ORE TO METAL
SM EL/SE/ 2023-24/94
January 30, 2024
The Secretary,
The Manager - Listing Department
Listing Department, BSE Limited
National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,
"Exchange Plaza", 5th Floor, Plot No. C/1, G-Block,
Dalal Street, Mumbai 400 001
Bandra-Kurla Complex, Bandra (East), Mumbai
I
Maharashtra, India
Scrip Code: 543299
Dear Sir /Madam,
400 051, Maharashtra, India
Symbol: SHYAMMETL
Sub: Investors Presentation - Financial Results of 3rd Quarter ( 2023-24}
Pursuant to the Regulation 30 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 read with applicable
Schedules thereof, Please find attached the Investors Presentation w.r.t the Financial
Results of 3rd Quarter (2023-24).
This is for your information and record.
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SHVAM METALICS AND ENERGY LIMITED REG OFFICE: Trinity Tower. 7th Floor, 83, Topsia Road, Kolkata - 700 046, West Bengal, GIN: L40109WB2002PLC095491 GSTIN: 19AAHCS5842A2ZD SALES & MARKETING OFFICE: Viswakarma Building, North West Block, 1st, 2nd & 3rd Floor, 86C, Topsia Road, Kolkata • 700 046 T: +91334016 4001 F: +91334016 4025 Email : contact@shyamgroup.com Web: www.shyammetalics.com Follow us on : la (il rl Im
Securing tomorrow with today’s strength
Investor Presentation January 2024
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 any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, PROCESSss or completeness
2
Company Overview
Shyam Metalics at a Glance
•
•
6th Largest Integrated Steel Producer & amongst the largest Ferro Alloys producer in India
4th Largest Sponge Iron Player, Leading player in terms of Pellet Capacity
•
Integrated Metal Producing Company
• Operates “Ore to Metal” integrated steel plants
with Captive Railway Siding
•
Strategically located plants with Proximity to Mineral Belts, National Highways and Ports
Achieving End-To-End Solutions
“Ore To Metal”
• 3.9% Revenue growth in 9M FY24 YoY
13.2 MTPA Combined Production Capacity
~77% of power sourced from Captive
15,141 Employee Strength
AA CRISIL Credit Rating
• PAT Positive
since
commencement of
operations in 2005
• 0.04x Net Debt / Equity as of Sept 2023
• One of Lowest Gearing amongst competitors
• ~77% of power sourced from Captive Power Plants at Rs. 2.42 /Kwh in 9M FY24, while Avg Grid Power costs for 9M FY24 Rs. 5.71 /Kwh
• Promoters with decades of experience in the Metal Industry along with experienced Management Team
Optimising the Balance Sheet for Resilience & Flexibility
CRISIL AA (Stable) Long Term Bank Facilities
Highest credit rating in the industry
CRISIL A1+ (Stable) Short Term Bank Facilities
4
Eminent Promoters & Management
Mahabir Prasad Agarwal, Chairman • An accomplished business leader and a first-generation entrepreneur having more than 50 Years of experience in steel & ferro alloys industries.
• He has the foresight to lead the Company on a transformational journey and contributing significantly in growth path of the company.
Brij Bhushan Agarwal, Vice Chairman & Managing Director • A visionary business leader with more than 20 years of
experience
• A guiding force for the company and having over three in the steel & ferro alloys
decades of experience industries.
Sheetij Agarwal, Head - Strategy & Business Development • Bachelor of Science in Business Administration from D'Amore Mckim School of Business, Northeastern University
• Overlooks and
spearheads Development at Shyam Metalics and Energy Limited.
strategy & Business
Sanjay Kumar Agarwal, Joint Managing Director • Holds a bachelor’s degree in commerce, with honours, from University of Kolkata with over 18 years of vast experience in the steel & ferro alloys industry.
• Primarily responsible for the Operations / manufacturing of the plants with focus on cost control, production efficiency, competitive procurement of raw materials etc.
Deepak Agarwal, Director Finance & CFO • He is an Associate member of the Institute of Company
Secretary of India.
• He is a techno commercial professional and possessing more than 20 years of experience of steel and ferro alloys industries.
The Management Team is ably assisted by a very strong team of Professionals who have contributed immensely to the growth of the Company
5
Value Propositions
1
2
3
4
Backward Integration & Forward Integration with presence across the Value Chain
Diversified Product Mix: Scaling up stainless steel & aluminum
Strong Brand & Distribution Network
Private Railway Sidings Advantage for Seamless Logistics
5
Captive Power for ~77% power requirement
6
Capacity Addition to increase share of High Margin B2C Products
7
8
9
De-Leveraged Balance Sheet giving flexibility in growth
Sustainable solution - Waste used as ‘Productive Inputs’
Consistent Performance over the last decade
6
Key Updates for Q3 FY24
Capex & Operational Update
• Successful completion of the acquisition of Mittal Corp Limited by wholly-owned subsidiary,
Shyam Sel and Power Limited positioning the company as a comprehensive solution provider for stainless steel requirements
• Capex incurred till 9M FY24: Rs. 4,334 crores resulting in capacity expansion, enhanced product portfolio
and cost efficiencies
• Foray into battery-grade aluminium foil, a critical component in lithium-ion cells. Capability of
manufacturing battery-grade aluminum foil with thickness ranging from 12-micron to 20-micron.
Financial Performance
• Q3 FY24: Revenue: Rs. 3,315 cr, Operating EBITDA: Rs. 407 cr, EBITDA: Rs. 447 cr, PAT: Rs. 126 cr*
• 9M FY24: Revenue: Rs. 9,589 cr, Operating EBITDA: Rs. 1,128 cr, EBITDA: Rs. 1,236 cr PAT: Rs. 810 cr
Updates
• Successfully raised Rs. 1,385 crores through Qualified Institutional Placement.
*PAT has been considered after the deferred tax charge which has arised out of credit in Q2 FY24 for future benefits of tax on account of merger of Mittal Corp Ltd.
7
Driving Integration of Multi-Product Metals Portfolio
Backward Integration
Prospective License for Iron Ore Mine: Maharashtra
Railway siding
357 MW CPP
Renewables – Captive Solar Energy Plant
Aluminium Mill with Caster
Multiple Sale Points across the Value Chain
Greater Control on Operating Margins
Flexibility to alter Product Mix
Current Portfolio
Downstream Products
Focus on Quality
Intermediates
Ferro Alloys
Finished Steel
Aluminium Foil
Colour Coated Sheets
CRM Stainless
Stainless Steel
Ductile Iron Pipes
Ferro chrome*, Low Carbon Ferro Chrome, Ferro Manganese, Silico Manganese
Pellets, Billets, Sponge Iron
Pig Iron, Coke Oven, Billet SS, Billet- Hot Flat Product, Billet- Parallel Flange
Angles, channels, TMT, Beam, Wire rod & Structurals
Battery foil
Upcoming Projects
Hot Flat Products
Parallel Flange Beam
Steel Wire Drawing
Objectives for Expansion:
✓ Foray into Newer Segments
✓ Increase Backward Integration
✓ Utilize cash generated from
operations for growth
8
Expansion with strong focus on value added products
Integration has enabled greater control on the operating margins
Capacity (MTPA)
Iron Pellet
FY21
2.40
FY22
3.60
4.80
6.00
FY23
9M FY24
Post Expansion
Capacity (MTPA)
Post Expansion
Sponge Iron
1.39
2.11
2.54
2.90
Billets
0.89
0.94
1.69
2.01
TMT, Structural Steel, Wire Rods & Pipes
0.82
0.90
1.97
2.07
Speciality Alloys
0.21
0.21
0.22
0.22
Captive Power (MW)
227
267
267
357
Renewable Power (MW)
Stainless Steel Billet
Stainless Steel Finished Steel
Aluminium Foil
5
-
-
-
5
-
-
9
-
-
0.04
0.04
9
0.12
0.15
0.04
6.00
4.10
2.41
2.07
0.24
597
109
0.75
0.85
0.04
Beneficiation
Coke Oven*
Pig Iron
Ductile Iron Pipes
Parallel Flange Beam
Colour Coated Sheets
Steel Wire Drawing
3.0
0.7
1.05
0.6
0.4
0.4
0.09
*A sinter plant of 1.2MTPA to be commissioned along with coke oven
Installed Capacity
Future Capacity after expansion
9
Capacity Expansion through Inorganic Route – Ramsarup Industries
Engaged in manufacturing wires, TMT Bars and steel, acquired for Rs 380 cr out of which we paid Rs 228 cr for 60% stake
Shyam Metalics & Energy Ltd
60%
Ramsarup Industries
40%
Super Smelters Ltd
First Capex Infusion in Ramsarup Industries – Phase I
Capacity Expansion in Ramsarup Industries – Phase II
Rs. 448 cr
Capex : Rs 747 cr
Rs. 299 cr
Rs. 375 cr
Capex : Rs 625 cr
Rs. 250 cr
DRI
Captive Power Plant
150,000 TPA
Sinter
20 MW
Coke Oven
Blast Furnace
4,50,000 TPA
1.2 MTPA
0.25 MW
Steel Wire Drawing
85,000 TPA
Captive Power Plant
40 MW
Ductile Iron Pipe
4,00,000 TPA
From the budgeted capex Rs 376 cr has already been incurred
From the budgeted capex Rs. 40 cr has already been incurred
Total capex to be incurred
Shyam Metalics & Energy Ltd
Rs. 823 cr
Rs. 549 cr
Super Smelters Ltd
10
Forays into Stainless Steel (SS) through Acquisition of Mittal Corp
Mittal Corp Industries Overview
Capex Infusion in Ramsarup Industries
Leader
Leading Player in Stainless Steel Flats (200 series and 400 Series) in India
Paid acquisition cost of Rs. 351 cr.
Shyam Metalics has forayed into stainless steel through acquisition of Mittal Corp. Company is focussed on increasing its capacity and thereby market share in margin accretive products
2 Manufacturing units at Pithampur, Madhya Pradesh with ~17 Acres of land
Business Areas
0.27
0.15 0.12
Existing Capacity (MTPA) Finished SS Rolled
1.67 0.2
0.5
0.22
0.75
Post Expansion Capacity (MTPA)
Billet
SS Hot Rolled
SS Cold Rolled
Manufacturing plant is developed by Italian player Danieli
Series 200 Stainless Steel
Series 300 Stainless Steel
Series 400 Stainless Steel
Business Areas catered by company
• 0.15 MTPA Installed Capacity for finished stainless
steel
• 0.12 MTPA Installed Capacity for stainless steel billets
Kitchen Utensils
Automotive, White Goods, Decorative
Construction
20 Tonne Induction Furnace
GoI has issued circlular for use of stainless steel for construction of national highway Bridges and centrally sponsored projects in marine environment susceptible to sever corrosion
Note: Acquisition completed in Oct’23
11
Aluminium Foil Plant
Aluminium Plant – Pakuria , West Bengal & Giridih, Jharkhand
One of the largest aluminium foil manufacturer in India, plant spread over 5 acres
Plant installed by Achenback (Germany), an industry pioneer
Kickstarted and stabilised plant operations in record time
More than 60% of the production utilised for exports
Rolling range: 40 to 5 micron with annealing capability, customised as per demand
Majorly producing 6-10 micron rolled material
Q3 FY24 update: volume growth of 19.6% QoQ basis
12
Business Update: Greenfield Expansion- Cold Rolling Mill
Capacity
Phase I
2,50,000 Ton
Phase II
1,50,000 Ton
n o i s n a p x E d e i f n e e r G
l
Capex Incurred Rs. 207 cr
Capex Pending Rs. 396 cr
Total Capex Rs. 603 Cr
•
•
•
•
To setup a greenfield project for a cold rolling mill spread over 94 acres of land at Jamuria, West Bengal.
Project approved under the PLI scheme
Products will include GI/GL coils and PPGL (Pre-Painted Galvalume Coils)
The business will be setup under the wholly owned subsidiary- Shyam Metalics Flat Products Pvt Ltd
13
Current Projects Overview
Projects Pending Installation and Status of Cost Incurred of Carbon Steel
Capacity (Million MTPA)
Benefication Plant
Sponge Iron
Blast Furnace
Coke Oven
Billets (heavy structural mill)
Parallel Flange Beams
TMT, Structural Steel, Wire Rods & Pipes
Color coated Sheet
DI Pipe
Solar Plant (MW)
Captive Power (MW)
Railway Siding (No. of lines)
Total (A)
Capacities to be Commissioned (in Mn Tonnes)
Budgeted Capex (Rs. Cr)
Capex incurred till 31st Dec (Rs Cr)
Pending Capex (Rs Cr)
3.0
1.20
1.05
0.70
0.40
0.4
0.09
0.4
0.6
100
240
4
300
425
974
670
110
240
45
603
600
450
815
180
-
49
658
381
-
1
-
207
3
-
171
91
300
376
316
289
110
239
45
396
597
450
644
89
5,412
1,561
3,851
*For some projects the company has incurred excess costs aggregating to Rs 91 cr
15
Projects Pending Installation and Status of Cost Incurred for Others
Capacity (Million MTPA)
Billet Stainless Steel
Billet Slabs for Flat products
Hot flat products
CRM Stainless Steel
Battery foil plant
Ferro Alloys
Aluminium Mill with caster
Oxygen plant
Total (B)
Total (A+B)
Capacities to be Commissioned (in Mn Tonnes)
Budgeted Capex (Rs. Cr)
Capex incurred till 31st Dec (Rs Cr)
Pending Capex (Rs Cr)
0.13
0.5
0.5
0.2
0.005
0.024
0.01
130
220
550
150
25
60
75
93
1,303
6,715
21
-
2
-
-
-
-
25
48
1,609
109
220
548
150
25
60
75
68
1,255
5,106
Out of the above, contribution of Rs. 549 cr is on account of Joint Venture partner in RIL
*For some projects, the company has incurred excess costs aggregating to Rs 91 cr
16
Current Capacities Across Carbon Steel Life Cycle
Finished Steel
2.07 MTPA
WRM 0.92 MTPA (Wire Rod & Wire Draw Mill)
TMT 0.92 MTPA
Structurals 0.20 MTPA
Pipe Mill 0.03 MTA
Iron Making
Liquid Steel
DRI 2.90 MTPA (Direct Reduced Iron)
SMS 2.01 MTPA (Steel Melting Shop)
17
Higher Contribution of Finished Steel Products
17%
25%
27%
19%
11%
2019
23%
24%
20%
18%
14%
2020
Revenue Mix
37%
12% 11% 16%
24%
2021
38%
8% 17%
17%
18%
2022
TMT, Structural and Pipes
Sponge Iron
Iron Pellets
Steel Billets
Speciality Alloys
48%
8% 15%
15% 8% 2023
48%
5% 18%
13% 8% 9M FY24
Volumes (in lakh tonnes)
20.8 1.9
10.2
1.5 7.3
2019
23.2 2.9
8.8 1.5
9.9
2020
31.2
6.1
5.7 1.7
17.7
32.0
7.6
8.1 1.6
14.7
33.3
11.2
8.1 1.8
12.1
26.2
9.5
7.2 1.3 8.2
2021
2022
2023
9M FY24
Finished Steel
Intermediates
Speciality Alloys
Iron Pellet
Enriching product portfolio to make a basket of fully integrated downstream products
Make customized products to capitalise on market opportunities
Serve growing demand for steel & allied products
18
Export Opportunities
17
Countries
Exports to countries like USA, Japan, Korea, Italy, Nepal, Bangladesh
10%
Export Contribution to Revenue in 9M FY24
41%
41%
18%
Steel products both upstream and downstream including Angles, Beams, Billets, Channels, Wire Rods, MS Round Coils and Sponge Iron
Ferro Chrome Ferro Manganese and Silico Manganese Products
Aluminum Foil Products
We are preferred suppliers to large corporations like
Norecom DMCC
POSCO Intl Corp
World Metals & Alloys (FZC)
TRAXYS North America LLC
J M Global Resources
Web Packaging Solutions
Durable Inc
Manakin Industries
Cartonal Italia
% of Products Exported is for 9M FY24
19
Q3 & 9M FY24 Financial Performance
Performance Highlights
Revenue
Rs. 3,315 Crores
Revenue
Rs. 9,589 Crores
14%
y-o-y
4%
y-o-y
Q3 FY24
Operating EBITDA Rs. 407 Crores
EBITDA Rs. 447 Crores
83% y-o-y
72% y-o-y
9M FY24
Operating EBITDA Rs. 1,128 Crores
EBITDA Rs. 1,236 Crores
5% y-o-y
7% y-o-y
PAT
Rs. 126 Crores*
PAT
Rs. 810 Crores
94%
y-o-y
37%
y-o-y
*PAT has been considered after the deferred tax charge which has arised out of credit in Q2 FY24 for future benefits of tax on account of merger of Mittal Corp Ltd.
21
Consolidated Profit & Loss Statement
Particulars (Rs. Crs.)
Q3 FY24
Q3 FY23
Revenue from Operations Cost of Material Consumed Purchases of stock in trade Change in Inventories of Finished goods & Work in Progress Total Raw Material Gross Profit Gross Profit Margin (%) Employee Expenses Other Expenses Operating EBITDA Operating EBITDA Margin (%) Other Income EBITDA Depreciation EBIT Finance Cost Exceptional Items/Share from Associates Profit before Tax Tax Profit After Tax PAT Margin (%) EPS (As per Profit after Tax)
3,315.3 2,505.0 0.02
-117.2
2,387.9 927.4 28.0% 102.8 417.2 407.4 12.3% 39.9 447.3 182.1 265.2 39.6 0.0 225.6 99.8 125.8 3.8% 4.9
2,921.7 2,080.3 174.5
-110.2
2,144.6 777.1 26.6% 86.1 468.8 222.0 7.6% 37.6 259.6 132.0 127.8 32.8 0.0 95.0 30.3 64.8 2.2% 2.5
Y-o-Y
13.5%
19.3%
83.3%
107.5%
94.2%
Q2 FY24
2,940.7 2,159.7 0.7
-63.7
2,096.7 844.0 28.7% 97.6 439.2 307.1 10.4% 38.2 345.3 176.5 168.8 35.4 0.0 133.4 -348.6 481.9 16.4% 18.9
Q-o-Q
12.7%
9.9%
32.6%
57.1%
-73.9%
9M FY24
9M FY23
9,589.0 7,097.8 4.2
-220.2
6,881.9 2,707.2 28.2% 302.2 1,276.6 1,128.3 11.8% 107.9 1,236.2 516.7 719.6 111.7 0.1 608.0 -201.7 809.7 8.4% 31.7
9,230.1 6,391.2 290.2
-142.2
6,539.1 2,691.0 29.2% 247.6 1,371.0 1,072.4 11.6% 81.2 1,153.6 337.2 816.4 54.5 0.1 761.9 172.4 589.5 6.4% 23.1
Y-o-Y
3.9%
0.6%
5.2%
-11.9%
37.3%
Blended Operating EBITDA Per Ton : Q3 FY24 - Rs. 6,314 vs Q3 FY23 - Rs 4,547 vs Q2 FY24 – Rs 6,036 | 9M FY24 - Rs 6,745 vs 9M FY23 - Rs 7,585
22
Q3 FY24 Performance Highlights
Revenue from Operations
Rs. 3,315 crores
Operating EBITDA
EBITDA
Profit After Tax
Rs. 407 crores
Rs. 447 crores
Rs. 126 crores*
Revenue Breakup
0.8%
9.8%
5.2%
4.1%
6.5%
22.6%
Steel Products 74%
3.3%
47.7%
Speciality Alloys TMT, Structural and Pipes Steel Billets Sponge Iron
Iron Pellets Aluminium Foil Stainless Steel Others
Volumes (in lakh tonnes)
0.2
0.04
Volumes (in lakh tonnes)
Steel Products
Aluminum Foil
Y-o-Y
0.03
0.03
0.1
Stainless Steel
Q3 FY23
Q2 FY24
Q3 FY24
4.9
Y-o-Y
Ferro Products
2.8
0.4
Iron Pellets
2.3
-1%
2.8
0.4
2.4
-4%
Q-o-Q
2.7 0.3
2.4
Finished Steel
3.2
Steel Billets
Sponge Iron
0.5
1.2
+32%
5.1
3.0
0.3
1.8
6.5
Q-o-Q
+27%
3.4
0.3
2.8
Q3 FY23
Q2 FY24
Q3 FY24
Q3 FY23
Q2 FY24
Q3 FY24
*PAT has been considered after the deferred tax charge which has arised out of credit in Q2 FY24 for future benefits of tax on account of merger of Mittal Corp Ltd.
23
9M FY24 Performance Highlights
Revenue from Operations
Rs. 9,589 crores
Operating EBITDA
EBITDA
Profit After Tax
Rs. 1,128 crores
Rs. 1,236 crores
Rs. 810 crores
Revenue Breakup
3.6%
5.0%
12.6%
1.8%
7.6%
17.6%
5.0%
47.8%
Steel Products 70%
Speciality Alloys TMT, Structural and Pipes Steel Billets Sponge Iron
Iron Pellets Aluminium Foil Stainless Steel Others
Volumes (in lakh tonnes)
Volumes (in lakh tonnes)
0.5
0.1
Aluminium Foil
Steel Products
Y-o-Y
+18%
0.1
0.4
Stainless Steel
14.1
9M FY23
9M FY24
-8%
Y-o-Y
Ferro Products
10.3 1.3
Iron Pellets
9.0
9.4 1.3
8.2
Finished Steel
7.8
Steel Billets
1.7
Sponge Iron
4.6
16.7
9.5
1.1
6.1
9M FY23
9M FY24
9M FY23
9M FY24
24
Per Tonne Realizations
Speciality Alloys
Finished Steel
Steel Billets
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
+6%
+2%
-7%
-7%
-2%
-10%
-9%
-3%
-11%
89,884
93,674
95,583
1,01,879
95,248
50,458
47,490
46,756
53,614
48,241
44,791
42,070
40,710
48,067
42,762
Q3 FY23
Q2 FY24
Q3 FY24
9M FY23
9M FY24
Q3 FY23
Q2 FY24
Q3 FY24
9M FY23
9M FY24
Q3 FY23
Q2 FY24
Q3 FY24
9M FY23 9M FY24
Sponge Iron
Iron Pellets
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
-10%
-4%
-14%
+16%
+5%
+5%
Aluminium Foil
Y-o-Y
-11%
Q-o-Q
-4%
-11%
29,647
27,788
26,759
31,997
27,462
7,725
8,542
8,997
8,445
8,869
3,55,414
3,28,731
3,15,102
3,68,677
3,30,145
Q3 FY23
Q2 FY24
Q3 FY24
9M FY23
9M FY24
Q3 FY23
Q2 FY24
Q3 FY24
9M FY23
9M FY24
Q3 FY23
Q2 FY24
Q3 FY24
9M FY23 9M FY24
25
Strong Debt Profile
Gross Debt* (Rs. Crs.)
Net Debt^ (Rs. Crs.)
1,050
656
785
534
951
1,721
960
448
246
247
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
-477
-562 Mar-23
Sep-23
Net Debt / Equity
Net Debt / EBITDA
0.34
0.18
1.51
0.07
0.04
0.48
0.18
Mar-19
Mar-20
Mar-21
-0.08 Mar-22
Post QIP the company has a Net Cash of Rs. 1,209 crores Amount raised in QIP - Rs. 1,385 crores
Sep-23
Mar-19
Mar-20
Mar-21
0.34
Sep-23
-0.18 Mar-22
*Gross debt excludes Rs. 259 cr attributable to non-controlling joint venture partner in RIL ^ Net Debt comprises of Gross Debt less liquid long and short-term investments and cash equivalents
26
Strong Balance Sheet – Flexibility of Growth
Internal Operating Efficiency led to significant reduction in Working capital requirements
Conservatively Leveraged + Disciplined Capital Allocation strategy = Better Return Metrics
Working Capital (days)
Return ratios (%)
Working Capital days
24
44
96
64
57
69
17
Mar-23
17
Sep-23
Inventory Days
Debtor Days
Creditor Days
ROCE
37.5%
15.0%
Mar-22
Mar-23
ROE
29.6%
14.0%
Mar-22
Mar-23
Strong Balance Sheet to support Capex, Growth and Business Cycles
*Crisil Report
27
Annexure
Strategically Located - Supported by Infrastructure
Raw Material Sources are within 250 kms
Jamuria Plant
Kolkata Haldia
Dhamra
Paradeep
Vishakhapatnam
Sambalpur Plant
Plant Location
Captive Railway Sidings
Ports
Close Proximity to Raw Material + Strong Logistics Infrastructure = Lower Logistics Cost
Proximity to ports enables Company to export products in a cost efficient manner
• Plants are in close proximity to National Highways & Ports
• Sambalpur & Jamuria Plants have captive railway sidings
We have 7 state of the art manufacturing plants in West Bengal, Odisha and Madhya Pradesh
2 Aluminium foil manufacturing plants located West Bengal and Jharkhand
These plants also include captive power plants supported by robust infrastructure including captive railway sidings.
Diversifying Geographical Base | 70% of the products are sold within the vicinity of 500 kms from the plants
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 13.1 MTPA comprising of intermediate and final products.
We also have a small plant in Mangalpur, West Bengal with aggregate installed capacity of 0.1 MTPA
These plants also include captive power plants with an aggregate installed capacity of 357 MW
Brownfield expansion leading to Lowest Capex in the Industry
30
Integrated operations across the steel value chain
Raw Materials
Coal
Processing
Coal Washery
Washery Rejects
Char/Flu Gases
Rotary Kilns
Power Plant
Rolling Mills
Iron Ore Fines
Washing & Pelettization Plant
Pellets
Sponge Iron
Steel melting Shop
Billets
Fines
Sinter Plant
Sinter
Blast Furnace
Pig Iron
Structure Rolling Mills
Coking coal
Manganese Chrome Ore
Coke Oven
Submerged Arc Furnace
Ductile Iron Plant
Manganese
End-Products
Electricity (Captive)
TMT Bars
Wire Rod
Angle
Channel
Beam
Ductile Pipe
Ferro Alloys
Point of Sale
Proposed Expansion
31
Detailed Plant Wise Capacities* – Existing
Product –Wise Capacity (MTPA)
Pandoli Odisha
Jamuria West Bengal
Mangalpur West Bengal
TOTAL (MTPA)
Iron Pellets
Speciality Alloys
DRI (Direct Reduced Iron)
Billets
TMT, WDM, SRM
3
0.11
1.32
0.87
0.92
3
0.07
1.52
1.14
1.15
0.04
0.06
6
0.22
2.9
2.01
2.07
Captive Power
158 MW
184 MW
15 MW
357 MW
(*Capacities as of Jan 30th, 2024)
32
Detailed Plant Wise Capacities – Post Expansion : Carbon Steel
Product –Wise Capacity (MTPA)
Sambalpur Odisha
Jamuria West Bengal
Mangalpur West Bengal
Kharagpur West Bengal
TOTAL (MTPA)
0.06
0.06
3
0.11
1.95
1.27
0.92
0.4
Iron Pellets
Speciality Alloys
DRI (Direct Reduced Iron)
Pig Iron / Blast Furnance
Billets*
TMT, WDM, SRM
Parallel Flange Beam
DI Pipe
Colour Coated
Coke Oven
3
0.07
1.95
0.6
1.14
1.15
0.2
0.4
0.45
CPP/Renewable*
298 MW
324 MW
15 MW
(*Capacities as of Jan 30th , 2024) * including 0.4 billet for HSM
0.15
0.45
0.09
0.4
0.25
60 MW
6
0.24
4.1
1.05
2.41
2.16
0.4
0.6
0.4
0.7
697 MW
33
Detailed Plant Wise Capacities – Existing & Post Expansion : Stainless Steel
Product –Wise Capacity (MTPA)
Sambalpur Odisha
Pitampura Madhya Pradesh
Stainless CR
Stainless HR
Stainless
Billets
Slabs
0.2
0.5
0.13
0.5
0.15
0.07
0.12
TOTAL (MTPA)
0.2
0.5
0.22
0.25
0.5
- to be commissioned
- existing
- total capacities post expansion
34
Our Strategy Going Forward
03
01
05
Shift Towards Value Added Products portfolio by identifying different products in same distribution channel. Value added products to contribute 80% in our revenue mix
Build market leading position in all 4 areas of the metal space : Steel, Stainless Steel, Ferro Alloys and Aluminium Foil Products
02
Geographical Expansions in newer states with focus on branding and increased margins
Reducing Carbon Footprint and focus on sustainability
Continuously work on improving cost efficiency through implementation of technology in supply chain management and work on increasing ancillary and backward integration
04
All strategies to be achieved without leveraging the balance sheet further
35
Energy Cost through Captive Power: ~ 77%
•
•
•
Power consumed by the plants are primarily produced in-house by the captive
power plants
Sambhalpur
5 Turbines Total Capacity of 158 MW
Captive power plants utilise non fossil fuels such as waste, rejects, heat and gas
generated from the operations to produce electricity
Jamuria
4 Turbines Total Capacity of 184 MW
Cost of in-house power is significantly less than grid power which costs INR 5-7 Per
Unit *
Mangalpur
1 Turbine Total Capacity of 15 MW
Captive Power to Total Power Consumed
Cost of Per Unit of Captive Power** (Rs./KWH)
Captive Power Plant Expansion Plans (MW)
Renewable Power Plant Expansion Plans (MW)
Post Expansion Capacity* (MW)
240
597
100
109
79%
82%
74%
77%
3.60
357
2.42
2.15
2.12
104
5
Post Expansion
9
Exsting Capacity
Proposed Fresh Capacity
Wind
Solar
60
15
5
104
274
248
Sambalpur
Mangalpur
Solar
Jamuria
Ramsaroop
Wind
36
FY 21
FY 22
FY 23
9M FY24
FY21
FY22
FY23
9M FY24
Existing Capacity
Proposed Fresh Capacity
Post Expansion
* Source: CRISIL Report; **Average cost of Power from Captive Power Plant = Total cost of power from all Captive Power Plants / Total production units
Strengthening Brand ‘SEL’
TMT TMT are used for the construction of buildings, transmission towers, industrial sheds, structures, road, dam and in other various infrastructures
SMEL sells the best quality TMT primarily in the states of West Bengal, Odisha, Bihar, Jharkhand, Tripura, Sikkim, Assam, Arunachal Pradesh, Manipur, Meghalaya, Uttarakhand, Uttar Pradesh, Punjab and Haryana. Our TMT and structural products are sold under the brand “SEL”
STRUCTURE
Structural steel describes hot rolled steel products such as angles, channels and beams. With an array of high- quality Structural products under the brand ‘SEL’, backed by world-class service and its other products, SMEL holds its pride of place among the leading steel manufacturers of the country and material directly from the DRHP
WIRE RODS
Towards forward integration, SMEL has set up high quality Wire Rod manufacturing & Wire Drawing facilities with best available technology and plant & machinery support
Since the raw materials are manufactured in-house at our plant, the company is able to produce high quality Wire Rod & H.B. Wires in an efficient & cost-effective manner
37
CSR Initiatives
Sustainability
Skill Development
Sports Promotion
• Water Conservation- Check dam, Pond , landscaping, Plantation,
• Promotion of solar Light
•
Solar irrigation Pumps
• Promotion of Organic Farming
• Running sewing center, computer training center - KALP VRIKSHA programme
• Alternate source of income via enterprise development, skill development
Rural Health
Rural Education
•
•
Football team of Shyam Sel & Power Limited
Shoes & Kit distribution
• Play ground development
Social Infrastructure Development
•
•
Yearly Eye & Medical Camp for Villagers, FREE Medicine & Spectacles
Free Ambulance & Drinking water Services for villagers
• New Health Center & Homeopathy
Clinic
•
Free Coaching Center for Economic Backward Integration Section
• Computer Training Center at Dhasna
village
•
SHYAM Scholarship for Meritorious students of Economic Backward Integrations
•
Temples
• Village Sanitation
• Village Handicrafts – Skill
development
• Gau Daan ( Care for Animals)
38
Shyam Metalics & Energy Limited
Mr. Pankaj Harlalka +91 9831298290 pankaj.harlalka@shyammetalics.com
Ms. Maumita Dhar +91 9903568990 maumita.dhar@shyammetalics.com
Investor Relations Partners
Mrs. Akashi Modi +91 9619896128 akashi.modi@linkintime.co.in
Mr. Sumeet Khaitan +91 7021320701 sumeet.khaitan@linkintime.co.in
Shyam Metalics & Energy Ltd. CIN No. : L40101WB2002PLC095491
Trinity Tower, 7th Floor, 83, Topsia Road Kolkata – 700046, West Bengal, India