Sandur Manganese & Iron Ores Limited — PPTs, 29-05-2025: Investor Presentation

1. Financial Highlights:

SMIORE’s total income jumped 141% YoY to ₹3,212 Cr (consolidated), with EBITDA rising 114% to ₹862 Cr and PAT up 97% at ₹471 Cr despite some margin pressure. Standalone revenue grew 128%, with EBITDA at ₹325 Cr and PAT at ₹157 Cr. Manganese ore production capacity increased to 0.599 MTPA and iron ore to 4.45 MTPA, both near full utilization. Ferroalloys sales stabilized at 7,059 tonnes in Q4FY25 on better realizations. Coke volumes were subdued, but a key supply contract now covers 46% of capacity, offering pricing stability. Gross debt/equity ratio remains comfortable at 0.72.

2. Strategic Initiatives & Growth Drivers:

Iron ore capacity expanded from 3.81 to 4.36 MTPA, and manganese ore capacity steadily ramped up. Hybrid renewable energy projects (42.9 MW) support cost efficiency and sustainability, aiding ferroalloys growth. Plans to optimize two furnaces in ferroalloys for ~5,000 tonnes/month capacity in FY26 aim to boost captive manganese ore consumption. The coke production contract enhances energy cost predictability. Integration of Arjas Steel opens access to high-margin SBQ specialty steel.

3. Business Developments:

Arjas Steel acquisition fully consolidated, adding ~0.5 MTPA SBQ steel capacity across Andhra Pradesh and Punjab. Arjas has commissioned a Garret Coiler, broadening product mix beyond bars. SMIORE’s steady iron ore supply underpins Arjas’ integrated steel production and cost competitiveness. A key coke conversion agreement secures nearly half of production under contract, strengthening the energy division outlook.

4. Market Position & Competitive Advantage:

SMIORE holds the 2nd largest manganese ore mining spot and 3rd largest iron ore position in Karnataka, backed by a 70-year legacy and strong credit ratings (A+/Stable). Its integrated operations—from mining to ferroalloys to specialty steel—provide scale and margin benefits. Hybrid renewable energy assets lower costs and improve sustainability. Close proximity (~250 km) of mines to steel plants reduces logistics costs, reinforcing its specialty steel market position.

5. Investor Implications:

Strong growth potential driven by capacity expansions, renewable energy integration, and entry into high-margin specialty steel with Arjas. Disciplined capital use, operational scale-up, and stable cash flows lower execution risks while enhancing margin recovery in ferroalloys and coke. Watching Arjas’ product diversification and market traction will be important. SMIORE’s integrated model and strategic moves set a solid foundation for sustainable growth in FY26 and beyond.