Lloyds Metals And Energy (512455) Q4 24/25 earnings summary

Executive summary

• Achieved highest-ever profit before tax and record sponge iron production for FY2025, with full utilization of 10 million ton iron ore capacity for the second consecutive year.

• EBITDA rose 13% YoY to INR 2,005 crores (INR 20,046 Mn), with margin expansion to 29.6%.

• PAT increased 16.7% YoY to INR 1,450.95 Cr (INR 14,510 Mn), with PAT margin at 21.42%.

• Major CAPEX of INR 3,695 crores (INR 36,947 Mn) in FY2025, supporting ongoing and future expansion projects.

• Audited standalone and consolidated financial results for FY25 were approved by the Board and received an unqualified opinion from statutory auditors.

Financial highlights

• FY2025 revenue grew 3% year-over-year, driven by higher iron ore realizations and record sponge iron output.

• EBITDA margin improved to 29.6% in FY25, up from 27.1% in FY24.

• PAT margin increased to 21.42% in FY25, up from 18.9% in FY24.

• Iron ore volumes flat at 10 million tons for FY2025; Q4 FY2025 iron ore sales at 1.66 million tons.

• DRI volumes at 308,000 tons and power volumes up 5% YoY; segment margins impacted by muted realizations.

Outlook and guidance

• FY2026 iron ore volume guidance at 23-24 million tons, with up to 1.2 million ton reduction possible due to pending EC approval.

• CAPEX guidance for FY2026 is INR 6,000-6,500 crores, focused on mining, pellet, and steel capacities.

• Slurry pipeline and first pellet plant to be fully operational by June 2025; second pellet plant by June 2026.

• Awaiting environmental clearance to increase iron ore output from 10 mnt to 25 mnt, with further plans to reach 55 mnt.

• Cost savings of INR 500-600/ton expected from slurry pipeline; further savings from Triveni consolidation.