Any current/future capex/capital investment/strategic investment?

Ongoing capex for FY'25 is around INR 700 crores; INR 150 crores spent in Q1. Major capex focused on expansion of three coal mines (including Shahpur West, Kalyani coal mine). Shahpur West coal mine opening expected after receiving Stage 2 forest clearance within the current financial year. Work progressing on 50 MW captive solar power project, targeting operational by end of FY'25. Commissioning of 25 MW Rehar hydropower project expected this quarter, ahead of March 2025 schedule. Waste utilization project planned for next year. Turbine replacement project (30 MW TG set) under progress; commi

Any current/future new fundraising through debt or equity?

The company currently has no intention to raise funds through either debt or equity. They take enabling resolutions every year to keep the option open but have no immediate plans to utilize them. For the acquisition of SKS Thermal power plant, there is no immediate capex planned since it is an operating plant. Any further decisions on capacity expansion or fundraising related to SKS will be made after acquisition and clarity on regulatory orders. Current funding for ongoing projects comes from internal accruals and strong liquidity, with a net debt position of zero and gross long-term debt aro

Future growth expectations in sales/revenue/volumes?

Volumes are expected to remain at normal levels throughout FY25, maintaining operational stability. No significant top-line growth anticipated in the near term; revenue expected to be flat or moderate. Future revenue growth drivers include: - Increase in coal mining capacity (starting Shahpur West mine upon forest clearance). - Commissioning of the 25 MW Rehar hydropower project (completed in the current quarter). - Upcoming 50 MW solar power and waste utilization projects (expected operational next year). - Acquisition of the 2x300 MW SKS thermal power plant (pending NCLT

Future growth expectations in earnings/operating earnings/profits/EPS?

Future volume levels expected to remain at normal operational levels for FY25, maintaining steady production. Top-line growth to see additions from increased coal mining capacity, commissioning of hydropower project, and upcoming waste utilization project (expected next year). Profitability may improve with backward integration via own mining and power plants; waste utilization and renewable projects will reduce carbon footprint and costs. Commissioning of 25 MW Rehar hydropower project and 50 MW solar power project supports future growth and sustainability goals. Starting of 3 new coa

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Sarda Energy & Minerals LtdQ2 FY24Ferrous Metals

Sarda Energy & Minerals Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹518P/E: 18.3Market Cap: ₹19.2K CrSector: Ferrous Metals

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Volumes are expected to remain at normal levels throughout FY25, maintaining operational stability.
→No significant top-line growth anticipated in the near term; revenue expected to be flat or moderate.
→Future revenue growth drivers include:
→ - Increase in coal mining capacity (starting Shahpur West mine upon forest clearance).
→ - Commissioning of the 25 MW Rehar hydropower project (completed in the current quarter).
→ - Upcoming 50 MW solar power and waste utilization projects (expected operational next year).
→ - Acquisition of the 2x300 MW SKS thermal power plant (pending NCLT order).
→Further profitability improvement is possible driven by backward integration and operational efficiencies from own mining and power assets.
→Market volatility due to global factors (China, geopolitical, interest rates) makes precise forecasting challenging.
→Power market strengthening, with prices generally rising year-on-year, indicating stable demand.

Margin guidance

Category 3

→Future volume levels expected to remain at normal operational levels for FY25, maintaining steady production.
→Top-line growth to see additions from increased coal mining capacity, commissioning of hydropower project, and upcoming waste utilization project (expected next year).
→Profitability may improve with backward integration via own mining and power plants; waste utilization and renewable projects will reduce carbon footprint and costs.
→Commissioning of 25 MW Rehar hydropower project and 50 MW solar power project supports future growth and sustainability goals.
→Starting of 3 new coal mines and additional hydropower projects will contribute to growth.
→Market volatility and external factors (China’s economy, geopolitical issues, interest rates) make precise profit projection difficult.
→Management focuses on diversification to weather volatility and drive sustained performance improvements.

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Fundraise plans

→The company currently has no intention to raise funds through either debt or equity.
→They take enabling resolutions every year to keep the option open but have no immediate plans to utilize them.
→For the acquisition of SKS Thermal power plant, there is no immediate capex planned since it is an operating plant.
→Any further decisions on capacity expansion or fundraising related to SKS will be made after acquisition and clarity on regulatory orders.
→Current funding for ongoing projects comes from internal accruals and strong liquidity, with a net debt position of zero and gross long-term debt around INR1,300 crores backed by cash/liquids of similar amount.

Order book

The transcript does not explicitly mention current or expected order book details or pending orders for Sarda Energy & Minerals Limited. However, key ongoing and upcoming projects that imply future order inflows or operational progress include: - Commissioning of the 25 MW Rehar hydropower project expected by end of Q2 FY25. - Progress on acquisition of operational 2x300 MW SKS thermal power plant (NCLT approval pending). - Expansion involving three coal mining projects, with the Shahpur West Coal Mine opening expected after forest clearance within the current financial year. - Waste utilization project planned for commissioning next year. - 50 MW captive solar power project scheduled operational by end of FY25. - Turbine replacement project and a 30 MW turbine generator set expected to be commissioned in 24-28 months. No specific order book size or pending order value is disclosed in the call.

Capex plans

Yes

→Ongoing capex for FY'25 is around INR 700 crores; INR 150 crores spent in Q1.
→Major capex focused on expansion of three coal mines (including Shahpur West, Kalyani coal mine).
→Shahpur West coal mine opening expected after receiving Stage 2 forest clearance within the current financial year.
→Work progressing on 50 MW captive solar power project, targeting operational by end of FY'25.
→Commissioning of 25 MW Rehar hydropower project expected this quarter, ahead of March 2025 schedule.
→Waste utilization project planned for next year.
→Turbine replacement project (30 MW TG set) under progress; commissioning in 24-28 months post supply from BHEL.
→Acquisition of 2x300 MW SKS thermal power plant underway; no immediate capex involved.
→Future capex plans include starting 3 more coal mines and hydropower projects to drive growth.

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