The Sandur Manganese & Iron Ores Limited – Investor Presentation Summary

Key Operational Highlights

  • Manganese ore production: 1.36 lakh tonnes in Q2FY27 (6% YoY growth)
  • Iron ore production: 11.63 lakh tonnes in Q2FY27 (30% YoY growth)
  • Ferroalloys production: 14,142 tonnes in Q2FY27 (8% QoQ growth)
  • Steel production: 1.09 lakh tonnes in Q2FY27 (8% YoY growth)
  • Coke production: 0 tonnes (excluding 58,984 tonnes under contract manufacturing)

Key drivers of operational performance: Strong mining volumes despite monsoon season, improved realizations in manganese ore, significant growth in iron ore sales volumes.

Segment-wise Performance

Manganese Ore: Sales 0.79 lakh tonnes (-3% YoY, -19% QoQ), Average realization ₹8,502/tonne (+7% QoQ, +43% YoY)

Iron Ore: Sales 12.45 lakh tonnes (+59% YoY, +29% QoQ), Average realization ₹2,975/tonne (-4% QoQ)

Ferroalloys: Sales 13,429 tonnes (-5% YoY, -18% QoQ), Average realization ₹70,515/tonne (-1% QoQ)

Coke: Sales 935 tonnes (-80% YoY, -56% QoQ), Average realization ₹28,967/tonne (+30% QoQ)

Steel: Sales 1.12 lakh tonnes (+11% YoY, +7% QoQ), Average realization ₹78,422/tonne (+5% QoQ)

Explanation of significant changes in segment performance: Iron ore segment showed significant volume growth driven by enhanced production capacity, while manganese ore benefited from substantially improved realizations. Steel segment showed consistent growth in both volumes and realizations.

Financial Highlights

Standalone Q2FY27:

  • Revenue: ₹1,519 crore
  • EBITDA: ₹391 crore
  • PAT: ₹261 crore
  • EBITDA Margin: 44%
  • PAT Margin: 30%
  • YoY Growth: Total Income +33%, EBITDA +35%, PAT +62%
  • QoQ Growth: Total Income +7%, EBITDA +11%, PAT +11%

Consolidated Q2FY27:

  • Revenue: ₹3,716 crore
  • EBITDA: ₹749 crore
  • PAT: ₹489 crore
  • EBITDA Margin: 26%
  • PAT Margin: 17%
  • YoY Growth: Total Income +22%, EBITDA +37%, PAT +88%
  • QoQ Growth: Total Income +9%, EBITDA +9%, PAT +15%

Standalone H1FY27:

  • Revenue: ₹2,909 crore
  • EBITDA: ₹500 crore
  • PAT: ₹339 crore
  • YoY Growth: Total Income +30%, EBITDA +21%, PAT +42%

Consolidated H1FY27:

  • Revenue: ₹3,422 crore
  • EBITDA: ₹749 crore
  • PAT: ₹489 crore
  • YoY Growth: Total Income +21%, EBITDA +25%, PAT +60%

Drivers of financial performance: Higher mining volumes, improved realizations, strong performance from steel business, operational efficiencies.

Balance Sheet Snapshot

Standalone:

  • Shareholders' Funds: ₹3,422 crore
  • Gross Debt/Equity: 0.08
  • Cash & Cash Equivalents: ₹608 crore

Consolidated:

  • Shareholders' Funds: ₹3,716 crore
  • Gross Debt/Equity: 0.24
  • Cash & Cash Equivalents: ₹630 crore

Financial Health Insights: Strong liquidity position, robust credit profile with A+ rating from CRISIL and ICRA, healthy debt-equity ratios.

Capex & Cash Flow Health

Capital Expenditure: Multiple projects underway including ₹100 crore for Bright Bar Facility and Heat Treatment Facility at Royal Sandur Metals, ₹220 crore for Punjab steel plant expansion, ₹390 crore for Medical Devices project.

Investment Rationale: Focus on capacity expansion, value-added products, diversification into new business segments, and technology upgrades.

Strategic & R&D Initiatives

Investments in Innovation: Downhill Conveyor System completed and capitalized in Q1FY27, Beneficiation Plant project progressing with commissioning scheduled in Q2FY28, applied for enhancement in Environmental Clearance for iron ore production from 7.85 MTPA to 9.42 MTPA.

Expected impact on growth: Downhill Conveyor System expected to fetch better realizations and enable environment-friendly transportation, Beneficiation Plant to enhance product quality and value.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs, forward integration from mining to metals, diversification into medical devices and consumables.

Industry Trends & Business Environment

Macro/Industry Trends: Strong demand for manganese and iron ores, growing specialty steel market, opportunities in medical devices sector.

Impact on Company: Favorable pricing environment for manganese ore, growing demand for iron ore supporting volume growth, expansion opportunities in value-added steel products.

Management Commentary & Growth Outlook

Strategic Outlook: "Q2FY27 has been another healthy quarter, with robust mining volumes despite the seasonally slow monsoon period and continued strong performance from Royal Sandur Metals. The approved capacity expansion at our Punjab steel plant and our foray into Medical Devices and Consumables mark concrete steps towards new frontiers, alongside our core metals and mining businesses." - Bahirji A. Ghorpade, Managing Director

Growth Initiatives: Restart of 2 Coke Oven batteries expected in Q4FY27, Medical Devices facility targeting commercial production by December 2027, Punjab steel plant expansion to enhance capacity from 1.20 LTPA to 1.70 LTPA of Special Bar Quality steel.

Risks and Opportunities: Compensatory afforestation requirement for extension of forest lease validity beyond December 2026, awaiting DMG approval for weighbridge integration with ILMS portal.

ESG Updates

Environmental Stewardship: 7-Star Rated Mines recognition from Ministry of Mines, zero discharge at Ferroalloys plant, 100% scrap recycled at steel facility, ~4 million saplings planted over last 4 decades, 18.21% green cover in leased area.

Social Initiatives: 14 educational institutions supported, Arogya Community Health Centre, food subsidy of ₹1,200 per employee, subsidized LPG cylinders with 90% subsidy, multiple rural development programs.

Safety Culture: Unnatha Suraksha Puraskara Award for 2023–24 & 2024–25, Silver Award in 50th CII National Kaizen Competition, comprehensive safety programs covering ~7,380 team members.

Recent Milestones

April 2023: Received Environmental Clearance for mining expansion from 1.6 to 4.5 MTPA of iron ore

June 2023: Commissioned 42.9 MW captive hybrid renewable energy project

January 2024: Crossed $1 billion in market capitalization

September 2024: Enhancement in EC for iron ore of 0.216 MTPA at Ramghad mines

November 2024: Completion of strategic business acquisition of Royal Sandur Metals Private Limited

March 2026: Early payment of NCDs worth ₹423 Crore through internal accruals

July 2026: Adopted new brand architecture under 'Royal Sandur' group name

Company Profile

Current Capacities: 0.599 MTPA Manganese Ore, 4.45 MTPA Iron Ore, 0.585 MTPA Steel, 0.50 MTPA Coke, 95,000/1,25,000 TPA Ferroalloys

Energy Portfolio: 32 MW WHRB-based Power, 42.9 MW Hybrid Renewable Energy, 20.4 MW Solar Energy

Market Position: 2nd Largest manganese ore miner in India, 3rd Largest iron ore miner in Karnataka, Top 5 player in SBQ steel

Team Strength: 4,264 SMIORE family members (consolidated)