Sarda Energy & Minerals (504614) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was ₹926.21 crore, up sequentially from ₹889.25 crore and down year-over-year from ₹1,052.12 crore; net profit was ₹198.23 crore, up from ₹87.99 crore and ₹172.41 crore, respectively.

• EBITDA margin was 33.5%, up from 26.2% year-over-year; operating EBITDA excluding other income was ₹261 crore, up 26% year-over-year and 61% sequentially.

• Steel production was deliberately curtailed to sell power when returns were stronger; coal, hydro, solar and waste-utilization projects are progressing.

Financial highlights

• Consolidated revenue was ₹926.21 crore, down from ₹1,052.12 crore year-over-year and up from ₹889.25 crore in Q4 FY24.

• Consolidated net profit after tax and share of associates was ₹198.23 crore, versus ₹172.41 crore year-over-year and ₹87.99 crore in Q4 FY24.

• Consolidated EBITDA margin was 33.5%, versus 26.2% year-over-year; PAT margin improved to 19.8% from 15.2%.

• Standalone revenue was ₹661.83 crore and PAT ₹181.01 crore; year-over-year figures were ₹760.10 crore and ₹159.39 crore, respectively.

• Consolidated and standalone basic EPS were ₹5.64 and ₹5.14, respectively.

Outlook and guidance

• FY25 CapEx is expected at ~₹700 crore, including ~₹150 crore in Q1, with major spending on three coal mine projects.

• The 25 MW Rehar hydro project is targeted for commissioning this quarter; the 50 MW captive solar project is scheduled by FY-end.

• Waste-to-Wealth mineral fibre production is expected to be operational by end-FY25; waste utilization was also expected next year.

• Shahpur West mine opening work depends on Stage 2 forest clearance, anticipated in FY25; mine opening permission was also expected this year.

• Operational volumes are expected to remain at normal levels through FY25, while pricing and margins remain exposed to market volatility.