Sarda Energy & Minerals (504614) Q4 23/24 earnings summary

Executive summary

• Achieved consolidated revenue of ₹3,868 crore in FY 2023-24, down 8.2% year-over-year due to lower selling prices, despite record operational performance in coal, iron ore pellets, billets, wire rod, ferro alloys, and captive power.

• Consolidated net profit after tax was ₹531 crore, a 12% decrease from ₹604 crore in the previous year, reflecting margin pressure from price declines.

• Standalone revenue was ₹2,733 crore, with net profit at ₹466 crore; both metrics declined year-over-year.

• Board recommended a final dividend of ₹1 per share, totaling ₹35.24 crore, subject to shareholder approval.

Financial highlights

• EBITDA (consolidated) stood at ₹982 crore, down from ₹1,109 crore year-over-year.

• EPS (consolidated) was ₹14.84, compared to ₹16.99 in the previous year.

• Operating profit margin (standalone) declined to 18.8% from 27.9% year-over-year.

• Debt-equity ratio (consolidated) improved to 0.32 from 0.40; standalone ratio at 0.02.

• Cash and cash equivalents (consolidated) increased to ₹104 crore from ₹8 crore year-over-year.

Outlook and guidance

• Strategic focus on expanding energy and minerals capacities, including solar and hydro projects, to drive sustainable growth.

• SKS Power acquisition (600 MW) expected to create operational synergies and support future growth.

• Ongoing investments in productivity, energy efficiency, and waste utilization to enhance margins and reduce carbon footprint.

• Indian steel demand projected to grow at 8% over 2024 and 2025, with strong infrastructure investments.