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Investor Presentation August 2023
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2
Company Overview
Shyam Metalics & Energy Limited (“SMEL”)
“Ore to Metal”
Integrated steel plants with Captive Power and Railway Siding
4th Largest Sponge Iron Player in India1 , 6th largest Integrated Long Steel player and amongst the largest Ferro Alloys Producer in East India and Leading player in terms of Pellet Capacity in India
2.07 MTPA Finished steel Capacity backed by 2.7 MTPA Iron Making capacity with 6 MTPA Pellet capacity and 0.22 MTPA specialised ferro alloy capacity (as of June’23)
Strategically located plants with Proximity to Mineral Belts, National Highways and Ports
Strong brand presence
TMT and structural products are sold under the brand
41.5% Revenue CAGR (FY21 to FY23)
PAT Positive since commencement of operations in 2005
Promoters with decades of experience in the Metal Industry along with experienced Management Team
Highest Credit Rating in the Industry
CRISIL AA (Stable) Long Term Bank Facilities
CRISIL A1+ (Stable) Short Term Bank Facilities
1) As per Crisil Report
4
Company Overview
Company Overview
• Incorporated in 2002, the Company is registered in Kolkata, India
• An integrated “Ore to Metal” producing Company manufacturing Pellets, Sponge Iron, Steel Billets, Long Steel Products & Ferro Alloys, selling both intermediate and final products
• 7 steel manufacturing plants, 1 in Odisha, 4 in West Bengal and 2 in Madhya Pradesh
• 1 State of the Art Aluminium Foil producing plant in Pakuria in the state of West Bengal
and another plant in Jharkhand
• TMT and structural products are sold under the brand “SEL” and
• Acquired 60% stake in Ramsarup Industries through a SPV
• Acquired Mittal Corp to foray into stainless steel operations
Eminent Promoters and Management
2060+ Dealers & Distributors
14,000 + Personnel
35 Countries Exported
0.18x Gross Debt/ Equity
74% Power Sourced from CPP
41.5% Revenue CAGR (FY21- FY23)
1,26,101 Mn Revenue (FY23)
14,859 Mn EBITDA (FY23)
8,484 Mn PAT (FY23)
Mahabir Prasad Agarwal, Chairman
Brij Bhushan Agarwal, VC & MD
Marquee Global Clientele
Sanjay Kumar Agarwal, Joint MD
Deepak Agarwal, Director Finance & CFO
Source: Crisil Report; 1) Numbers rounded off
5
Key Value Propositions
Eminent Promoters backed by Experienced Senior Management
Diversified Product Mix: Scaling up Finished Steel Products
9
1
Robust Financial Profile backed by proven track record
8
Backward & Forward Integration with presence across the Value Chain
2
Augured well throughout Business Cycles
7
3
Capacity Addition to increase share of High Margin B2C Products
Integrated Infrastructure
6
The Edge – Low Cost Captive Power
5
4
Capacity Expansion through Inorganic Route
6
Derisked Business Model with Shift towards Margin Accretive Products
Revenue Mix (in INR Million)
Volumes (in lakh tonnes)
1,26,102
1,03,940
62,971
37%
12% 11% 16%
24%
38%
8%
17%
17%
18%
48%
8%
15%
15%
8%
14%
33,068
48%
13%
9%
20.9
1.9
10.2
1.5
7.3
23.1
2.9
8.8
1.5
9.9
46,064
43,629
17%
25%
27%
19% 11%
23%
24%
20% 18% 14%
31.2
6.1
5.7
1.7
17.7
32.0
7.6
8.1
1.6
14.7
33.2
11.2
8.1
1.8
12.1
9.1
3.1
2.1
3.4
0.5
FY 19
FY 20
FY 21
FY 22
FY 23
Q1 FY24
FY 19
FY 20
FY 21
FY 22
FY 23
Q1 FY24
Iron Pellets
Ferro Alloys
Sponge Iron
Steel Billets
TMT, Structural and Pipes
Iron Pellet
Ferro Product
Intermediates
Finished Steel
Factors Contributing towards Increasing Profitability
Ramp-up and stabilization of existing capacities
Foray into stainless steel and color- coated steel
Acquisition of Ramsarup Industries and Mittal Corp resulting in increase in steel making capacity
Niche capacities (in aluminium foil and low-carbon ferrochrome), which are likely to be earnings- accretive
Steel Products
7
Driving Integration of Multi-Product Metals Portfolio
Prospective License for Iron Ore Mine: Maharashtra
Railway siding
357 MW CPP
Renewables – Captive Solar Energy Plant
Aluminium Mill with Caster
Backward Integration
Downstream Products
Current Portfolio
Colour Coated Sheets
CRM Stainless
Stainless Steel
Ductile Iron Pipes
Intermediates
Ferro Alloys
Finished Steel
Aluminium Foil
Hot Flat Products
Parallel Flange Beam
Steel Wire Drawing
Ferro chrome*, Low Carbon Ferro Chrome, Ferro Manganese, Silico Manganese
Angles, channels, TMT, Beam, Wire rod & Structurals
Battery foil
Pellets, Billets, Sponge Iron
Pig Iron, Coke Oven, Billet SS, Billet- Hot Flat Product, Billet- Parallel Flange
Upcoming Projects
Multiple Sale Points across the Value Chain
Greater Control on Operating Margins
Flexibility to alter Product Mix
Focus on Quality
Objectives for Expansion:
✓ Foray into Newer Segments
✓ Increase Backward Integration
✓ Utilize cash generated from
operations for growth
6
8
Expansion with strong focus on value added products
Capacity (MTPA)
FY21
FY22
FY23
Q1FY24
Post Expansion
Capacity (MTPA)
Post Expansion
Integration has enabled greater control on the operating margins
Iron Pellet
2.40
3.60
4.80
6.00
Sponge Iron
1.39
2.11
2.54
2.70
Billets
0.89
0.94
1.69
2.01
6.00
4.10
2.01
TMT, Structural Steel, Wire Rods & Pipes
0.82
0.90
1.97
2.07
2.07
Ferro Alloys
0.21
0.21
0.22
0.22
0.24
Captive Power (MW)
Renewable Power (MW)
Stainless Steel Billet
Stainless Steel Finished Steel
Aluminium Foil
227
267
267
357
5
-
-
-
5
-
-
-
9
-
-
9
0.12
0.15
0.04
0.04
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
0.6
1.05
0.6
0.4
0.4
0.09
Aggregate Capacity Utilisation
89.9%
91.9%
82.9%
68.4%
FY21
FY22
FY23
Q1FY24
9
Planned Capacity Expansion - Significant Potential for Upside
Steel Metal Capacity (MTPA)
Stainless Steel (SS) (MTPA)
7.89 1.49 3.4
3.00
12.78
2.07
4.71
6.00
Q1 FY24
17.67
3.56
8.11
6.00
Post Expansion
Benefication Plant
0.27 0.15 0.12
Existing
1.33
0.20
0.50
0.63
1.6
0.20
0.50
0.15
0.75
Pellet
Intermediary
Proposed Fresh Capacity Finished Steel
Proposed Fresh Capacity
Post Expansion
Downstream Products
0.70
7,000
Sub Total
1.33
10,300
SS Cold Rolled Finished SS Rolled
SS Hot Rolled Billet
Ferro Alloys (LTPA)
2.20
0.24
2.44
Aluminium Foil (TPA)
43,600
43,600
EV Battery Foil
Pharma Industry
Packaging Industry
Q1 FY24
Proposed Fresh Capacity
Post Expansion
Expanding product portfolio to diversify into EV battery sector
Q1 FY24
Post Expansion
* JV partner will fund 5,490 Mn of Ramsarup capacity
Category - Steel
Backward Integration
Downstream Products
Sub Total
Category – Stainless Steel
Capacity Increase (MTPA)
3.40
1.49
4.89
Capacity Increase (MTPA)
Cost (Rs. Mn)
25,720
14,880
40,600*
*
Cost (Rs. Mn)
Backward Integration
0.63
3,300
Category - Others
Ferro Aluminum Foil Sub Total Renewables + Captive Power plant Grand Total
Capacity Increase (MTPA) 0.024 0.005 0.029
Cost (Rs. Mn)
600 1,000 1,600
340 MW 12,650
6.24
65,150*
*
Capacity Expansion will augment revenues, better cost controls, increase in profitability
₹ 8,680 Mn spent already
10
Capacity Expansion through Inorganic Route – Ramsarup Industries (1/2)
Engaged in manufacturing wires, TMT Bars and steel, acquired for Rs 3,800 Mn out of which we paid Rs 2,280 Mn 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. 4,480 Mn
Capex : Rs 7,470* Mn
Rs. 2,990 Mn
Rs. 3,750 Mn
Capex : Rs 6,250 Mn
Rs. 2,500 Mn
DRI
Captive Power Plant
150,000 TPA
Sinter
20 MW
Coke Oven
Blast Furnace
4,50,000 TPA
1.2 MTPA
0.25 MW
*Out of which Rs 1,940 Mn has already been incurred
Steel Wire Drawing
85,000 TPA
Captive Power Plant
40 MW
Ductile Iron Pipe
4,00,000 TPA
Total capex to be incurred
Shyam Metalics & Energy Ltd
Rs. 8,230 Mn
Rs. 5,490 Mn
Super Smelters Ltd
11
Forays into Stainless Steel (SS) through Acquisition of Mittal Corp (2/2)
Mittal Corp Industries Overview
Capex Infusion in Ramsarup Industries
Leader
Leading Player in Stainless Steel Flats (200 series and 400 Series) in India
2 Manufacturing units at Pithampur, Madhya Pradesh with ~17 Acres of land
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
Manufacturing plant is developed by Italian player Danieli
0.15 MTPA Installed Capacity for finished stainless steel
Business Areas
Series 200 Stainless Steel
1.60
0.5
0.2 0.15
0.75
Post Expansion Capacity (MTPA)
Billet
SS Cold Rolled
SS Hot Rolled
0.27
0.15 0.12
Existing Capacity (MTPA) Finished SS Rolled
Series 300 Stainless Steel
Series 400 Stainless Steel
Business Areas catered by company
0.12 MTPA Installed Capacity for stainless steel billets
20 Tonne Induction Furnace
Kitchen Utensils
Automotive, White Goods, Decorative
Construction
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
12
Aluminium Foil - Update
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
13
The Edge – Low Cost of Captive Power
•
•
•
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%
74%
3.60
2.74
357
2.15
2.12
9
4
5
Q1 FY24
104
5
Proposed Fresh Capacity
Post Expansion
Wind
Solar
60
15
5
104
274
248
Sambalpur
Mangalpur
Solar
Jamuria
Ramsaroop
Wind
14
FY 21
FY 22
FY 23 Q1 FY24
FY21
FY22
FY23 Q1 FY24
Q1 FY24
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
Strategically Located - Supported by Infrastructure
Strategically located in the mineral rich East Indian region
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
15
Augured well throughout Business Cycles - Leverage
Conservatively Leveraged – Steady Cash Accruals following Healthy Operating Performance,
Gearing Ratio (x)
Highest Interest Coverage Ratio vis-à-vis Industry Peers (x)
0.1
SMEL
99.8
0.2
16.9
0.2
11.0
FY21
FY22
FY23
1.3
0.8
0.9
1.3
0.9
0.9
Peer Set 1
Peer Set 2
FY21
FY22
FY23
14.8
5.8
7.4
7.3
18.5
10.0
SMEL
Peer Set 1
Peer Set 2
Healthy operating performance helped the Company achieve One of the lowest gearing amongst peers as on March 31, 2023
Upcoming facilities are at a lower capex intensity compared to its peers, resulting in payback period of less than 3 years as against the industry average of 6 years
Peer Set Iincludes JSW, Tata, SAIL, JSPL, KalyaniSteel, MSP Steel and Power Ltd., Prakash Industries Ltd., SaradaEnergy and Minerals Ltd. , ESL, JSW IspatSpecial Products Ltd., GodawariPower &IspatLtd. Peer Set IIincludes companies in Peer Set I except Large Players (Tata, SAIL, JSW, JSPL)
Source: Factset
16
Augured well throughout Business Cycles - Profitability
Better financial performance as compared to peers operating in the long and intermediary steel sector
EBITDA Margin (%)
PAT Margin (%)
SMEL
Peer Set 1
Peer Set 2
SMEL
Peer Set 1
Peer Set 2
21.5%
19.3%
16.3%
24.9%
20.8%
18.1%
FY21
FY22
12.4%
12.3%
11.8%
FY23
16.6%
12.1%
10.6%
13.4%
8.5% 7.8%
6.8% 5.3% 4.7%
FY21
FY22
FY23
Factors Contributing towards Higher Margins
Backward & Forward Integration
Presence across the value chain De-Risking Revenue Streams
Flexible & Diversified Product Mix
Captive Power providing ~74% power requirement
Logistical Advantage Location & Captive Railway sidings
Peer Set Iincludes JSW, Tata, SAIL, JSPL, KalyaniSteel, MSP Steel and Power Ltd., Prakash Industries Ltd., SaradaEnergy and Minerals Ltd. , ESL, JSW IspatSpecial Products Ltd., GodawariPower &IspatLtd. Peer Set IIincludes companies in Peer Set I except Large Players (Tata, SAIL, JSW, JSPL) Source: Factset
17
Financial Performance
De-risked & Diversified Model supporting sustainable Revenue Stream & Growth…
Operating efficiency resulting in superior profitability…
Total Income (INR Mn.)
EBITDA (INR Mn.)
EBITDA Margin %
25.0%
25,997
22.1%
13,942
11.8%
12.2%
14,859
1,03,939
1,26,101
62,970
33,060
4,040
Q1 FY24
FY21
FY22
FY23
Q1 FY24
FY21
FY22
FY23
Operating efficiency & low leverage resulting in profitability…
Low Intensity Capex as against Industry Standards resulting in High Fixed Asset Turnover
PAT (INR Mn)
PAT Margin %
Fixed Asset Turnover
16.6%
17,240
13.3%
8,400
6.7%
8,484
FY21
FY22
FY23
7.1%
2,350
Q1 FY24
3.75
2.76
2.82
FY21
FY22
FY23
18
Key Managerial Personnel
Mahabir Prasad Agarwal, Non-executive Chairman • He has over three decades of experience in the steel and ferro alloys industry • Founder and Director of our subsidiary SSPL since inception and is actively involved in the CSR activities of the company and its subsidiary
Brij Bhushan Agarwal, Vice Chairman and Managing Director • He holds a bachelor’s degree in commerce from the University of Calcutta • He has over 23 years of experience in the steel and ferro alloys industry • He is primarily responsible for strategic planning, future expansion, business development, marketing, human resources and corporate affairs of the Company
Sanjay Kumar Agarwal , Joint Managing Director • He holds a bachelor’s degree in commerce, with honours, from the University of Calcutta • He has over 17 years of experience in the steel and ferro alloys industry • He is primarily responsible for the operations of the manufacturing plants at Sambalpur, Jamuria and Mangalpur, with focus on cost control, production
efficiency and competitive procurement of raw material
Deepak Kumar Agarwal, Whole-Time Director • He holds a bachelor’s degree in commerce, with honours, from University of Calcutta. He is also an associate member of the Institute of Company Secretaries
of India
• He has over a decade of experience in the steel and ferro alloys industry • He is responsible for handling finance, risk management and corporate affairs functions of the Company and its Subsidiaries
Statutory Auditor
M/s. MSKA & Associates, a member firm of BDO International which is 5th Largest network of accounting, tax and advisory firms and is the largest mid-tier network in the world
19
Board of Directors
Dev Kumar Tiwari, Whole-time Director • He holds a bachelor’s degree in arts (honours) from Bihar University, Muzaffarpur • He has over 23 years of experience in the steel and ferro alloys industry • He is responsible for project implementation and operations of our Sambalpur manufacturing plant
Malay Kumar De, Independent Director • He is M. Sc in Organic Chemistry from University of North Bengal, Siliguri Joined the IAS in 1985 and was allotted West Bengal cadre • He was the Chairman and Managing Director of both the restructured utilities, namely West Bengal State Electricity Distribution Company ltd
Shashi Kumar, Independent Director • His a B.Sc. (Hons.) graduated in Mining Engineering from Indian School of Mines, Dhanbad and obtained his 2nd class Mine Managers Certificate of
competency (in 1969) and 1st class Mine class Mine Managers Certificate of Competency
• Since retirement from Coal India Limited, Shri Shashi Kumar has been working as Advisor (Coal) to NTPC Ltd. IFFCO and Chhattisgarh Power Limited (a joint
venture of IFFCO and the state of Chhattisgarh represented through CSEB).
Kishan Gopal Baldwa, Independent Director • He holds a bachelor’s degree in commerce from the University of Rajasthan and is a fellow member of the Institute of Chartered Accountants of India for the
past 37 years
Yudhvir Singh Jain, Independent Director • He holds a bachelor’s degree in science, with honours, from University of Delhi, and a bachelor’s degree in law from Delhi University • He was previously associated with Corporation Bank for 34 years, and retired as a general manager
Rajni Mishra, Independent Woman Director • She has experience in Government Regulatory Affairs, Secretarial Compliances, Board procedures and Corporate Governance
20
Our Strategy Going Forward
1
Shift Towards Value Added Products portfolio by identifying different products in same distribution channel. Value added products to contribute 80% in our revenue mix
2
Build market leading position in all 4 areas of the metal space :Steel, Stainless Steel, Ferro Alloys and Aluminium Foil Products
3
Geographical Expansionsin newer states with focus on branding and increased margins
4
Continuously work on improving cost efficiency through implementation of technology in supply chain management and work on increasing ancillary and backward integration
5
Reducing Carbon Footprint and focus on sustainability
All of the above strategies to be achieved without leveraging
21
Annexure
Integrated operations across the steel value chain
Raw Materials
Coal
Processing
End-Products
Coal Washery
Washery Rejects
Char/Flu Gases
Rotary Kilns
Power Plant
Iron Ore Fines
Washing & Pelettization Plant
Pellets
Sponge Iron
Steel melting Shop
Billets
Fines
Sinter Plant
Sinter
Blast Furnace
Pig Iron
Coking coal
Manganese Chrome Ore
Coke Oven
Submerged Arc Furnace
Ductile Iron Plant
Manganese
Point of Sale
Proposed Expansion
Rolling Mills
Structure Rolling Mills
Electricity (Captive)
TMT Bars
Wire Rod
Angle
Channel
Beam
Ductile Pipe
Ferro Alloys
23
Detailed Plant Wise Capacities* – Existing
Product –Wise Capacity (MTPA)
Pandoli, Odisha
Jamuria, West Bengal
Mangalpur, West Bengal
TOTAL (MTPA)
Iron Pellets
Ferro Alloys
DRI (Direct Reduced Iron)
Billets
TMT, WDM, SRM
3
0.11
1.16
0.87
0.92
3
0.07
1.52
1.14
1.15
0.04
0.06
6
0.22
2.70
2.01
2.07
Captive Power
158 MW
184 MW
15 MW
357 MW
(*Capacities as of June 2023)
24
Detailed Plant Wise Capacities – Post Expansion : Steel
Product –Wise Capacity (MTPA)
Sambalpur, Odisha
Jamuria, West Bengal
Mangalpur, West Bengal
Kharagpur, West Bengal
TOTAL (MTPA)
3
0.11
1.75
0.87
0.92
Iron Pellets
Ferro Alloys
DRI (Direct Reduced Iron) Pig Iron / Blast Furnance
Billets
TMT, WDM, SRM
DI Pipe
Colour Coated
Heavy Structural
0.4
3
0.07
1.98
0.6
1.14
1.15
0.2
0.4
0.06
0.06
0.15
0.45
0.09
0.4
6
0.24
3.94
1.05
2.01
2.16
0.6
0.4
0.4
Captive Power
248 MW
274 MW
15 MW
60 MW
597 MW
25
Detailed Plant Wise Capacities – 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
0.12
TOTAL (MTPA)
0.2
0.5
0.15
0.25
0.5
26
Strengthening Brand ‘SEL’
TMT
STRUCTURE
WIRE RODS
the construction of buildings, TMT are used for 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, Pradesh, Manipur, Meghalaya, Uttarakhand, Uttar Pradesh, Punjab and Haryana. Our TMT and structural products are sold under the brand “SEL”
Arunachal
Assam,
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
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
27
Per Tonne Realizations
Ferro Products
Finished Steel
Steel Billets
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
-19%
-3%
1,18,619
99,863
96,553
-8%
-12%
-4%
+9%
-13%
-4%
+10%
1,10,235
1,01,372
57,743
52,472
50,557
48,916
53,268
50,770
46,125
44,378
43,395
47,681
Q1 FY23 Q4 FY23 Q1 FY24
FY22
FY23
Q1 FY23 Q4 FY23 Q1 FY24
FY22
FY23
Q1 FY23 Q4 FY23 Q1 FY24
FY22
FY23
Sponge Iron
Iron Pellets
Aluminium Foil
Y-o-Y
Q-o-Q
-15%
-8%
+4%
33,204
30,712
28,352
30,447
31,702
Y-o-Y
Q-o-Q
-10%
-1%
-30%
12,590
9,999
9,077
9,013
8,611
Y-o-Y
Q-o-Q
-9.1%
-4%
3,84,084
3,64,009 3,49,288
+0.3%
3,66,306
3,67,263
Q1 FY23 Q4 FY23 Q1 FY24
FY22
FY23
Q1 FY23 Q4 FY23 Q1 FY24
FY22
FY23
Q1 FY23 Q4 FY23 Q1 FY24
FY22
FY23
28
Consolidated Statement of Profit & Loss
Particulars (in INR Mn)
FY21
FY22
FY23
Q1FY24
I II III IV
V VI
VII
VIII IX
X
XI
XII
INCOME Revenue from operations Other Income Total Income (I+II) EXPENSES Cost of material consumed Purchase of stock-in-trade Change in inventories of finished goods, stock in trade and work -in-progress Employee benefits expense Finance costs Depreciation and amortisation expense Other expenses Total Expense (IV) Profit/(loss) before Share in Profit/(Loss) of Associate and Joint Venture and tax (III-IV) Share in Profit/(Loss) of Associate and Joint Venture Profit/(Loss) before tax (V+VI) Tax expense: (i) Current tax Add: MAT Credit Utilized (ii)Deferred tax Profit/(loss) for the period(VI-VII) Profit for the Year (VIII+IX+X) Profit / Loss attributable to Non Controlling Interest Profit / Loss attributable to owners of the Parent Other comprehensive income (i) Items that will not be reclassified to profit and loss - Remeasurement of Defined Benefit Plan - Equity instruments at fair value through other comprehensive income (ii) Income tax relating to items that will not be reclassified to profit or loss Other comprehensive income for the year Total Comprehensive Income for the period (XI+XII) Comprehensive Income attributable to Non Controlling Interest Comprehensive Income attributable to owners of the Parent Earning per Equity Share of ₹ 10 each (in ₹) Basic(₹) Diluted(₹)
62,970.70 237.20 6,32,079.00
1,03,939.60 600.10 10,45,397.00
37,167.40 675.80 489.80 1,881.40 624.60 3,003.60 8,818.60 52,661.20 10,546.70 2.70 10,549.40
2,665.60
-551.60 8,435.40 8,435.40 2.00 8,433.40
6.80 58.90 -14.20 51.50 8,486.90 2.00 8,484.90
36.10 36.10
64,608.70 325.40 -1,808.70 2,465.60 231.60 2,724.00 12,351.20 80,897.80 23,641.90 1.40 23,643.30
5,394.60 1,007.90 -0.80 17,241.80 17,241.80 -3.60 17,245.40
-10.20 573.50 -127.60 435.70 17,677.50 -3.60 17,681.10
68.91 68.91
1,26,101.80 1,120.10 1,27,221.90
89,163.30 2,925.60 -2,426.40 3,451.50 931.30 4,630.80 18,128.90 1,16,805.00 1,04,169.00 1.40 1,04,170.40
2,345.90 -411.70
8,484.10 8,484.10 -91.90 8,576.00
-15.20 219.30 -50.50 153.60 8,637.70 -91.90 8,729.60
33.26 33.26
33,068.10 330.30 33,398.40
24,157.30 151.60 -393.90 980.90 367.30 1,190.10 4,113.70 97,363.80 2,821.40 0.30 2,821.70
477.10 -47.80 40.40 2,352.00 2,352.00 21.90 2,373.90
-12.40 169.70 -36.00 121.30 2,473.30 -21.90 2,495.20
9.22 9.22
29
Consolidated Statement of Assets & Liabilities
PARTICULARS (In INR Mn)
FY21
FY22
FY23
I 1
ASSETS NON-CURRENT ASSETS
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Property, plant & equipment
Right of use assets
Capital work-in-progress
Intangible assets
Financial assets
(i) Investments
(ii) Other financial assets
Other non-current assets
Deferred tax assets (net)
SUB-TOTAL (A)
2
CURRENT ASSETS
(a)
(b)
(c)
(d)
Inventories
Financial assets
(i) Investments
(ii) Trade Receivables
(iii) Cash and Cash Equivalents
(iv) Bank Balances other than (iii) above
(v) Loans
(vi) Other Financial Assets Current Tax Assets
Other current assets
SUB-TOTAL (B)
TOTAL ASSETS (A+B)
17,588.70
426.90
5,064.00
6.50
665.80
461.20
2,524.70
67.70
26,805.50
10,302.30
2,152.40
5,335.50
1,638.40
1,599.40
161.80
810.20
1.50
5,392.20
27,393.70
54,199.20
23,835.00
661.00
7,683.00
51.00
3,503.00
390.00
1,392.00
-
37,513.00
20,570.00
6,856.00
3,761.00
919.00
2,340.00
1,729.00
1,058.00
373.00
9,130.70
46,737.00
84,250.00
28,678.00
764.00
27,689.00
19.00
9,315.00
285.00
2,125.00
-
68,874.00
22,051.00
5,316.00
6,042.00
748.00
971.00
10.00
868.00
1,044.00
5,962.00
43,012.00
1,11,887.00
30
Consolidated Statement of Assets & Liabilities
PARTICULARS (In INR Mn)
FY21
FY22
FY23
II 1
2 2.1
2.2
Equity share capital Other equity
EQUITY & LIABILITIES EQUITY (a) (b) EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Non-Controlling interest SUB-TOTAL (A) LIABILITIES NON-CURRENT LIABILITIES (a)
Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Other financial liabilities Provisions
Deferred Tax Liabilities, (net) Other Non Current Liabilities
(b) (c) (d) SUB-TOTAL (B) CURRENT LIABILITIES (a)
Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade Payables Total outstanding dues of micro enterprises & small enterprises Total outstanding dues of creditors other than micro enterprises & small enterprises (iv) Other financial liabilities Other current liabilities Provisions Current tax liabilities (net)
(b) (c) (d) SUB-TOTAL (C) TOTAL EQUITY & LIABILITIES (A+B+C)
2,336.10 34,004.10 36,340.20 43.50 72,723.90
1,202.50 60.10 97.30 105.90 - 2,030.40 3,496.20
6,691.50 5.80
39.20 3,631.20 632.10 2,956.10 292.80 70.60 14,319.30 54,199.20
2,551.00 55,796.00 58,347.00 39.90 1,16,733.90
2,551.00 69,074.00 71,625.00 3,856.20 1,47,106.20
1,258.00 60.00 124.00 140.00 1,073.00 1,710.00 4,365.00
4,079.00 34.00
78.00 11,861.00 2,003.00 3,044.00 298.00 102.00 21,498.00 84,250.00
3,318.00 53.00 318.00 202.00 712.00 2,035.00 6,638.00
8,200.00 34.00
146.00 15,108.00 3,121.00 2,379.00 17.00 764.00 29,768.00 1,11,887.00
31
Consolidated Statement of Cash Flow
Particulars (In INR Mn)
I. Cash flows from operating activities
Restated Profit before tax
Adjustments for:
Depreciation
Provision for Gratuity
Expected Credit Loss on Trade Receivables
(Profit)/Loss on sales of Property, Plant and Equipment
Dividend Received
Unspent Liabilities written back and Unclaimed Balances adjusted
Unrealised Foreign Exchange Fluctuations
Gain on fair value of mutual fund investment
Gain in fair value of equity instruments through Profit and loss
Profit on Sale of Investments
Interest Income
Interest & Finance charges
Operating profit before working capital changes
Movements in working capital:
(Increase)/decrease in trade & other payables
Decrease / (Increase) in Trade Receivable
(Increase)/decrease in inventories
(Increase)/decrease in other assets
Cash generated/(used in) from operations
Income taxes paid (net)
Net cash generated/(used) in operating activities
FY 21
FY 22
FY 23
10,549.60
23,643.30
10,418.30
3,003.60
17.80
-0.80
-116.10
-127.40
-10.10
-85.30
-13.30
-115.00
624.60
2,724.00
9.00
-2.00
-110.00
-31.10
-134.20
-3.30
-164.50
-274.30
231.60
13,727.60
25,888.50
-2,133.00
-3,646.90
4,564.80
-65.10
1,244.75
-188.58
1,056.17
8,276.10
1,602.30
-10,267.90
-2,854.50
2,264.45
-574.90
1,689.55
4,630.80
65.30
9.40
20.70
-7.20
0.50
-57.10
-4,100
-64.90
-499.20
931.30
14,996.50
3,332.90
-2,252.30
-1,481.00
17,824.00
1,742.36
-235.49
1506.87
32
Consolidated Statement of Cash Flow
Particulars (In INR Mn)
II. Cash flows from investing activities
Purchase of Property Plant & Equipment (Net)
(Increase)/ Decrease in Investment (Net)
Cash Outflow for acquisition of subsidiary
Fixed deposits with banks (placed) / realised
Dividend Received
Loans Refunded/ (Given)
Interest received
Net cash generated/(used) in investing activities
III. Cash flows from financing activities
Repayments/Proceeds from Borrowing (Net) & Current Maturities
(Repayment) of Lease Liabilities
Proceeds from issue of shares
Acquisition of Non Controlling Interest
Dividend Paid
Interest paid
Net cash generated/(used in) from financing activities
Net increase/(decrease) in cash & cash equivalents (I + II + III)
Cash & cash equivalents at the beginning of the period/ year
Cash & cash equivalents at the end of the period/ year
FY21
FY22
FY 23
-3,610.50
-1,269.20
0.80
-161.30
53.80
-4,986.40
-10,714.00
-7,238.60
2.00
-1,612.70
297.90
-19,265.40
-3,179.10
-2,533.40
2.00
-432.20
-624.60
-4,233.90
1,341.40
297.00
1,638.40
6,255.80
-3.60
-1,836.60
-231.70
1,650.50
-719.40
1,638.40
919.00
-15,789.20
-3,576.40
-3,789.90
1,503.30
7.20
1,718.60
376.90
-19,549.50
6,181.00
-6.60
-1,147.90
-716.90
4,309.60
-171.20
919.00
747.80
33
CSR Initiatives
Sustainability
Skill Development
• Water Conservation- Check dam, Pond,
landscaping, Plantation,
• Promotion of solar Light
• Solar irrigation Pumps
• Promotion of Organic Farming
• Yearly Eye & Medical Camp for Villagers, FREE
Medicine & Spectacles
Rural Health
• Free Ambulance & Drinking water Services for
villagers
• New Health Center & Homeopathy Clinic
• Running sewing center, computer training center
- KALP VRIKSHA programme
• Alternate source of income via enterprise
development, skill development
Rural Education
• Free Coaching Center for Economic backward
Section
• Computer Training Center at Dhasna village
• SHYAM Scholarship for Meritorious students of
Economic Backwards
Sports Promotion
•
Football team of Shyam Sel & Power Limited
• Shoes & Kit distribution
• Play ground development
Social Infrastructure Development
• Temples
• Village Sanitation
• Village Handicrafts – Skill development
• Gau Daan ( Care for Animals)
34
Glossary and Key notes
TERM SMEL SSPL MTPA MT Bn Mn EBITDA PAT MW Rs. CRISIL Report
ROCE
Gross Debt/EBITDA
Interest Coverage
DETAIL Shyam Metalics and Energy Limited Shyam SEL and Power Limited Million Tons Per Annum Million Tons Billion Million Earning Before Interest, Tax, Depreciation and Amortisation Profit After Tax Mega Watt Indian Rupees Report titled “Market Assessment and outlook across Steel Industry value chain” dated February 2021 issued by CRISIL RoCE (Return on Capital Employed) = Operating EBIT/Total capital employed Operating EBIT = Profit/(loss) before tax + interest cost – Other Income Total capital employed = Total assets – current liabilities* *Current maturities on long term debt has been excluded from current liabilities Gross Debt to EBITDA = Gross Debt/EBITDA Gross Debt = long term borrowings + short term borrowings + current maturities of long term borrowing Interest coverage = Operating EBIT/Finance cost EBIT = Profit/(loss) before tax + interest – Other Income
Note 1: As certified by KalyanBhattacharya, Chartered Engineer, by certificate dated February 15, 2021. Note: • The information relating to the existing installed capacity of our manufacturing plants as of December 31, 2020 and proposed capacity expansion of our manufacturing plants are based on various assumptions and estimates that have been taken into account for calculation of the installed capacity. These assumptions and estimates include the standard capacity calculation practice of the steel industry after examining the calculations and explanations provided by our Company and the capacities and other ancillary equipment installed at the manufacturing plants. • The assumptions and estimates taken specifically into account include the following: (1) sponge iron (direct reduced iron): capacity of each kiln in TPD X 330 days per year; (2) billet: capacity of each furnace in TPH X (24 hours per day/ heat cycle) X 330 days per year; 1 heat cycle = 3 hours; (3) ferroalloy products: furnace with 1 MVA capacity is equivalent to 1,555.56 TPA. The installed capacity of ferroalloy products may vary depending on the type of ferroalloy produced.
35