Sarda Energy & Minerals (504614) Q2 24/25 earnings summary

Executive summary

• Completed acquisition and integration of SKS Power Generation (600 MW) in Chhattisgarh, with results consolidated from August 22, 2024; full impact expected from Q3 FY25.

• Achieved record production in coal, pellets, and captive power generation in H1 FY25, with 8% YoY growth in hydropower output.

• Diversified business model spans minerals, energy (thermal, hydro, solar), and metals, with ongoing expansion and ESG initiatives.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,159 crores (up from INR 926 crores last quarter and INR 1,001 crores YoY); H1 FY25 revenue: INR 2,085 crores.

• Q2 FY25 profit after tax: INR 203.98 crores (up from INR 194.50 crores last quarter, up from INR 141 crores YoY); H1 FY25 PAT: INR 402 crores.

• Q2 FY25 EBITDA: INR 393 crores (32% margin), up 48% YoY and 17% QoQ; H1 FY25 EBITDA: INR 728 crores (33% margin).

• Spent INR 1,950 crores on SKS acquisition; consolidated debt at INR 1,300 crores, with strong liquidity of over INR 1,500 crores.

Outlook and guidance

• SKS acquisition expected to significantly boost top and bottom line from Q3 onwards.

• 50 MW solar and 25 MW hydropower projects to be operational by end of FY25.

• Ongoing expansion in coal mining and mineral assets to support captive requirements and future growth.

• Steel and ferroalloy prices expected to remain subdued in near term, with demand recovery anticipated post-January.