Sarda Energy & Minerals (504614) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly captive power generation at Siltara, 7% YoY growth in hydropower output, and strong revenue and profit growth in Q3FY25, driven by SKS Power consolidation and higher thermal power generation.

• Expanded energy portfolio with SKS Power (2x300 MW thermal plant) acquisition and new hydropower assets, reinforcing vertical integration and diversification.

• Maintained a robust, diversified business model across minerals, energy, and metals, with strategic asset locations and a focus on ESG initiatives.

• Strong balance sheet with robust liquidity, low leverage, and ongoing reinvestment in diverse projects to ensure sustainable growth and cash flows.

Financial highlights

• Consolidated revenue for Q3 FY25 was INR 1,319 crores, up 43% YoY and 14% QoQ; consolidated EBITDA for Q3 FY25 was INR 382 crores, nearly double YoY.

• Profit after tax for Q3 FY25 grew 75% YoY to INR 200 crores; consolidated EPS for Q3 FY25 was INR 5.60, up from INR 3.32 YoY.

• Standalone Q3 FY25 revenue was INR 1,047 crores, up 59% YoY; standalone net profit was INR 189 crores, up 68% YoY.

• Net consolidated debt stood at INR 1,400 crores, with cash and liquid investments exceeding INR 1,400 crores as of Dec 31, 2024.

Outlook and guidance

• Energy division expected to become a major EBITDA contributor, with SKS Power integration and new solar/hydro projects.

• Anticipate commercial operation of 25 MW hydro, 50 MW solar, and mineral wool projects by FY-end; Gare Palma IV/5 coal extraction expected next fiscal.

• Management does not expect significant impact on profit & loss from the SKS acquisition for the period ended December 31, 2024.