Lloyds Metals And Energy (512455) Q2 24/25 earnings summary

Executive summary

• H1 FY25 revenue grew by 26% year-on-year, with EBITDA up 37% and PAT up 35%, driven by higher iron ore and sponge iron volumes and realizations.

• Major projects, including an 85 km slurry pipeline and beneficiation plant, are progressing ahead of schedule, supporting operational growth.

• Expansion projects are fully equity-financed, maintaining a debt-free balance sheet.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved, with unqualified auditor reviews.

• PAT margin for H1 FY25 reached 22.06%.

Financial highlights

• H1 FY25 revenue was ₹3,781.67 Cr (INR 38,929 Mn), EBITDA was ₹1,156.34 Cr (INR 11,693 Mn), and PAT was ₹858.92 Cr (INR 8,587 Mn).

• EBITDA margin improved to 30.04% in H1 FY25 from 27.65% in H1 FY24.

• Iron ore realization for Q2 FY25 was INR 5,516/ton (up 19% YoY); H1 FY25 was INR 5,638/ton (up 11% YoY).

• DRI segment H1 FY25 volume: 160,974 tons; power segment sales up 4% YoY.

• Received INR 72 crores as one-time IPS benefits from previous years, reported as other income.

Outlook and guidance

• Production guidance for FY25 is 13–14 million tons, with potential to reach 25 million tons post-EC clearance by February.

• Cost per ton expected to decrease by INR 100–200 after mining expansion and further by INR 100–200 with beneficiation; slurry pipeline to reduce transport cost by INR 600/ton.

• All expansion plans are expected to have a payback period of less than 4 years.

• H2 FY25 expected to be stronger, with new projects and capacity ramp-up.

• Company expects to benefit from India's growing steel and iron ore demand, aligning with national capacity expansion targets.