Monind Ltd · BSE:MONIND
Monind — Monnet Ispat & Energy — Investor Presentation (February 2011)
25 slides from Monind's investor presentation, Feb 23, 2011
Slide 1: Envisioning Growth, Enriching Lives
Envisioning Growth…… Enriching Lives.…… 1 SPONGE IRON STEEL POWER MINING FERRO ALLOYS
Slide 2: Corporate Philosophy
Corporate Philosophy Focal point around which the corporate strategies are planned Integration of Operations ~ the underlying theme for seamless growth Mechanism to achieve the objectives through sound understanding of business and focussed execution Confidential and Proprietary – Do NOT distribute
Slide 3: Snapshot – Monnet Group
Snapshot – Monnet Group 9 Engaged into 3 major Business Verticals: 9 Sponge Iron & Steel 9 Mining (Coal) 9 Power Generation 9 Second largest coal based sponge iron producer in India. 9 Coal Mining: One of the established players in Mining Business right from conceptualization to operations (Mining,
Slide 4: Snapshot – Monnet Group
Snapshot – Monnet Group 9 Captive Power Capacity of 150 MW (240 MW by Q4FY11) & a pipeline of additional captive capacities and IPP’s under execution. 9 Consistently shown strong growth - Over the last 7 years, MIEL has achieved: 9 Revenue CAGR of 35% 9 EBIDTA CAGR of 37% 9 PAT CAGR of 45% 9 Balance
Slide 5: Capacities – Monnet Group
Capacities – Monnet Group Existing Capacities (MIEL) In ‘mn tpa’ Sponge Ferro Product MS Steel Structural Coal Power Iron Alloys Annual 0.86 0.30 0.20 1.00 0.06 150 MW Capacity Under Execution MIEL Under Execution MPCL Facility Capacity (mn tpa) Facility Capacity (MW) Pellet Plant 1.20 Phase I 525 S
Slide 6: De-risking the business model through Integration
De-risking the business model through Integration A Cost Competitive Theme CURRENT Business Model PROPOSED Business Model Coal Iron Ore Iron Ore Fines Coking Coal (C) (C) + (OMP) (C) + (OMP) (C) Pellet Sinter Coke Oven Plant Sponge Iron Blast Furnace Sale Pig Iron WHRB Sale Power EAF (C) Sale Slab/B
Slide 7: Captive mines strategic for operational Efficiencies
Captive mines strategic for operational Efficiencies Mine Reserves Status of Development (Mn tonnes) Milupara, 86 X Underground mine; first of its kind to be allotted in Mand (annual the private sector Raigarh Coal extraction of X Major reserves of high grade coal (B to D) Field, 1.0 mtpa) X Current
Slide 8: Captive mines contd.
Contd.…. Mine Reserves Status of Development (Mn mtpa) Mandakini, Total – 290.5 X Open Cast mine Talcher, a) MIEL’s share X Comprise of E,F grade of coal (power grade coal) Orissa – ~ 97 mn X In an equal JV with Tata Power and Jindal Photo (Coal) tonnes X Land acquisition in process b) Mine X Enviro
Slide 9: Captive mines contd.
Contd…. Mine Reserves Status of Development (Mn mtpa) Rajgamar Total ~ 61.7 XUnderground mine (Coal) MIEL’s share ~ XComprise of B to E grade of non-coking coal 49.9 XJV agreement successfully executed with JV partner and submitted to Secy.-coal, Ministry of Coal XGeological report procured XForest
Slide 10: Group Structure
Group Structure MONNET ISPAT & ENERGY LIMITED Monnet Power Company Limited Monnet Global Limited 1. 87.5% subsidiary 2. Vehicle for power Initiative 1. 100% subsidiary 3. Currently Implementing 2. Foreign Acquisition 1050 MW Plant Vehicle Rameshwaram Steel & Monnet Daniels Power Limited Coal Washeri
Slide 11: Monnet Power Company Limited (MPCL)
Monnet Power Company Limited (MPCL) 3 Forayed into Power Segment through a subsidiary of Monnet Ispat & Energy Limited. 3 Presently setting-up first power project of 1,050 MW which would help in accessing low cost fuel supply through its captive coal mines. 3 Blackstone International bought 12.5% eq
Slide 12: Implementing 1050 MW IPP under MPCL
Implementing 1050 MW IPP under MPCL Land Acquisition 85% of total requirement MOEF Clearance Obtained Water Final approval has been received. Financial Closure Achieved Equipment’s • BTG equipment has been ordered from BHEL. • Balance of Plant (BOP) order issued to Indure in March 2010 Power Evacuat
Slide 13: Plans to augment power generation capacity to 3000 MW by 2015
Plans to augment power generation capacity to 3000 MW by 2015 3 660 MW in Orissa: 3 At the existing/ adjacent site of 1050 MW Power Plant at Angul, Orissa. 3 300 MW in Chhattisgarh: 3 Close to the existing facilities and in proximity to the existing Underground Mine. 3 Over 1,000 MW in Coastal Area.
Slide 14: Emerging Power Scenario in India
Emerging Power Scenario in India ` Indian power demand will rise from 120 GW as on date to 335 GW in 2017 ` $600 billion opportunity to emerge across the value chain by 2017 ` The sector has the potential to present an annual EBITDA pool of $135 billion to $160 billion by 2017 ` Largest value creati
Slide 15: Steel Business Scenario
Steel Business Scenario ` India today is the 3rd largest producer of steel globally during CY’ 09. ` Producing about 63 mn tonnes of steel a year, today India accounts for approx. 6% of the world’s total. ` India was amongst the only two countries, out of the top ten producers of crude steel, to rec
Slide 16: Sponge Iron Business Scenario
Sponge Iron Business Scenario ` India has a total installed capacity of 33.3 MM MTPA of which 25.3 MM MTPA is coal-based capacity and the rest is gas based * ` Coal-based sponge iron manufacturing, is a highly fragmented business with more than 200 players in the space ` MIEL is the 2nd largest coal
Slide 17: Financials
Financials oA |
Slide 18: Financial Highlights
Financial Highlights Value in Rs. In Crores FY’11 PARTICULARS FY'06 FY'07 FY'08 FY'09 FY’10 (9 months) Audited Audited Audited Audited Audited (Un-Audited) Sales 532 638 1159 1548 1481 1128 Expenditure 365 414 860 1143 975 775 EBIDTA 171 225 297 405 477 353 Interest 22 27 36 72 74 32 EBDT 167 198 26
Slide 19: Key Ratios
Key Ratios FY’11 PARTICULARS FY'06 FY'07 FY'08 FY'09 FY’10 (9 months) Audited Audited Audited Audited Audited (Un-Audited) Operating 28% 31% 24% 26% 32% 31% Margin ROCE 23% 26% 25% 29% 29% 30% DE Ratio (with 1.90 1.60 0.81 0.79 0.63 0.70 FCCB) DE Ratio 0.66 0.76 0.71 0.72 0.58 0.65 (Without FCCB) Bo
Slide 20: Growth Momentum
Growth Momentum Net Sales EBIDTA CAGR 32% 1700 500 1549 1481 445 450 CAGR 43% 1500 400 359 1300 1159 350 1100 300 250 900 190 638 200 152 700 150 500 100 FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 PAT EPS 280 266 55 CAGR 9% 51 260 CAGR 25% 50 240 44 216 43 220 45 200 39 40 180 166 160 35 135 140 30 120
Slide 21: Board of Directors
Board of Directors Board Member Designation Background Former Chairman of Railway Board Mr. M.S. Gujral Chairman and Coal India Ltd. Executive Vice Mr. Sandeep Jajodia Chairman & MD Promoter Dy. Managing Former CEO (Sterlite Energy); Mr. C.P. Baid Director Former Director in Sesa Goa Former Director
Slide 22: Shareholding Pattern (Fully Diluted)
Shareholding Pattern (Fully Diluted) Public, 11.4% Promoters, 50.2% FIIs and DIIs, 38.5% The above shareholding pattern is post dilution of company's equity after taking into consideration the outstanding warrants and convertible bonds.
Slide 23: Investment Highlights
Investment Highlights ` Scalable capacity of Mineral Assets under Development ` Emerging as significant Power Player in the country. ` One of the most Integrated and Cost Competitive player in the steel sector. ` Balanced Risk Business Model in Steel, Power & Mining. ` Visibility of profitability &
Slide 24: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Monnet Ispat & 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
Slide 25: Thank You
Thank You
Monnet Ispat & Energy — Investor Presentation (February 2011) on 6ix