Lloyds Metals And Energy (512455) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever sponge iron production in nine months FY25, with both plants operating at optimum capacity utilization.

• Revenue grew 11% year-over-year for nine months FY25, driven by higher iron ore and sponge iron volumes.

• EBITDA increased 31% year-over-year in 9MFY25, with margins expanding to 31%.

• PAT for 9MFY25 reached INR 12,481 Mn, up 29% YoY, with PAT margin at 22.45%.

• Major projects, including DRI at Ghugus and a 4-million-ton pellet plant, are nearing completion and expected to be commissioned by quarter end or early next quarter.

Financial highlights

• 9MFY25 total income: INR 55,601 Mn; EBITDA: INR 17,237 Mn; PAT: INR 12,481 Mn.

• Standalone revenue from operations for Q3 FY25 was ₹1,670.82 Cr, up from ₹1,360.61 Cr in Q2 FY25.

• Iron ore sales volume for 9MFY25: 7.8 MMT; realization per ton up 10% YoY.

• EBITDA per ton for iron ore rose 21% year-over-year in both Q3 and nine months FY25.

• CAPEX spend was INR 2,700 crores in nine months FY25, totaling INR 4,400 crores to date.

Outlook and guidance

• Expectation to mine and dispatch 25 million tons annually, pending timely EC approval.

• Guidance for 10 million tons of iron ore sales in FY25, with 2.2 million tons targeted for Q4.

• MDO business integration from April 1, 2025, expected to yield INR 400-500 per ton cost savings in iron ore.

• All expansion plans are debt-free and expected to have payback periods under 4 years.

• By FY28, plan to operate two beneficiation plants, at least 8 million tons of pellets, and 1.2 million tons of steel capacity.