Sarda Energy & Minerals Ltd. Conducted their conference call today at 11:30 am.
" Value addition with key products and Availing strong Hydro power plant to upgraded generation capacity."
Here are the key takeaways 😃
" Value addition with key products and Availing strong Hydro power plant to upgraded generation capacity."
Here are the key takeaways 😃
Business report
- Company has reported it's highest every EBITDA and PAT levels.
- With high price prevailing in market they have excellent value addition frok sponge iron and steel billets.
- Company has reported it's highest every EBITDA and PAT levels.
- With high price prevailing in market they have excellent value addition frok sponge iron and steel billets.
- On QoQ basis company has increased its production capacity for all Three major contributors like
Iron ore pellets, Sponge Iron and Steel Billets.
- On record details could have been better but they were hampered due to lockdowns and limited staff.
Iron ore pellets, Sponge Iron and Steel Billets.
- On record details could have been better but they were hampered due to lockdowns and limited staff.
- In sponge Iron there was a change in raw material mix which was in relation to demand supply mismatch.
- There was improvement in the Wire rod, H.B wires and Ferro alloys as well.
- There was improvement in the Wire rod, H.B wires and Ferro alloys as well.
- Business has witnessed a strict change in Steel laws which have resulted in some hickups and opportunities for the company.
- Due to change in law the company is allowed to avail 50% premium on sale for selected products.
- Due to change in law the company is allowed to avail 50% premium on sale for selected products.
- Company is prepared for any opportunities that comes up in their industry.
- Under power segment, Company's hydro power project is able to generate excellent volumes in Fy21.
- There will be a shift of captive use from themal power as well.
- Under power segment, Company's hydro power project is able to generate excellent volumes in Fy21.
- There will be a shift of captive use from themal power as well.
- This project is expect to deliver 400 million plus units generation.
- The current tariff rate is not been decided yet, they are decided by the regulator after the commissioning of plant.
- Looking at the previous record for smaller projects they commissioned about 6.15 paisa
- The current tariff rate is not been decided yet, they are decided by the regulator after the commissioning of plant.
- Looking at the previous record for smaller projects they commissioned about 6.15 paisa
- At present the company had about 30MW of hydro power capacity and with this additional project about 138 MW will be added.
- Another plant will be ready by 2025 and it's information will be given by Company soon.
- Another plant will be ready by 2025 and it's information will be given by Company soon.
Exports
- Company is one of the lead exporter of manganese based Ferro Alloys.
- Their Vishakhapatnam plant is catering other countries as its primary market.
- In recent times there has been various breaks on export segment as well.
- Company is one of the lead exporter of manganese based Ferro Alloys.
- Their Vishakhapatnam plant is catering other countries as its primary market.
- In recent times there has been various breaks on export segment as well.
- The unavailable of containers and closure of one port had slight impact on the business.
- Many of the company raw materials are been imported from outside, due to which they had face tough time from counties like Spain, Germany who are supplyers.
- Many of the company raw materials are been imported from outside, due to which they had face tough time from counties like Spain, Germany who are supplyers.
Financials
- The Steel prices are expected to remain firm, and might change will global increase in production capacity which dilutes the mismatch.
- Company is able to generate huge jump in its Total income and EBITDA on YoY basis.
- SMAL and HYDRO majorly contributed to it.
- The Steel prices are expected to remain firm, and might change will global increase in production capacity which dilutes the mismatch.
- Company is able to generate huge jump in its Total income and EBITDA on YoY basis.
- SMAL and HYDRO majorly contributed to it.
- Company has strong liquidity position to meet any small business needs from internal accruals only.
- In relation to Total debt, major of debt was taken to expansion it's capacity and take part in auctions.
- The Company will start Power project repayment soon and will fullfill all other obligations when their plans have been fullfilled.
- The Company will start Power project repayment soon and will fullfill all other obligations when their plans have been fullfilled.
- Company has witnessed surge in prices of most materials which they are planning to curb down.
- They still are very bullish on this commodity cycle and is lucrative for them for next 6 to 8 months.
- They still are very bullish on this commodity cycle and is lucrative for them for next 6 to 8 months.
Capacity and Capex
- The Company has received approval for capacity expansion of its iron ore pellet from CECB, Raipur
- Related to other expansion projects and auctions, changes have been made due to Laws.
- The Company has received approval for capacity expansion of its iron ore pellet from CECB, Raipur
- Related to other expansion projects and auctions, changes have been made due to Laws.
- The Company won 2 auction coal mines shahpur and Gare Palma IV/7. Which together generate a total capacity of 1.8 MMT p.a.
- Both are located within 200 kms radius from the chattisgarh steel plant.
- The Coal mines will be very lucrative for the further growth of business.
- Both are located within 200 kms radius from the chattisgarh steel plant.
- The Coal mines will be very lucrative for the further growth of business.
- The Sikkim Hydro power plant is ready and has even generated marginal revenues but majorly commissioning will be done from June 21.
- This plant costed around 1600 cr of expense which has far successes the estimate due to delay in time , material cost and change in capacity.
- This plant costed around 1600 cr of expense which has far successes the estimate due to delay in time , material cost and change in capacity.
- They have kept focus on upgradation of plants as traditional plants require more oxygen requirements compared to modern once.
- At present they are working around 60-70% capacity at existing furnace level which they tend to increase by with new one.
- At present they are working around 60-70% capacity at existing furnace level which they tend to increase by with new one.
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