Shyam Metalics and Energy (SHYAMMETL) Q3 24/25 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 FY25, with 13.2% year-over-year revenue growth and a 57% rise in PAT, maintaining profitability and aligning with long-term growth objectives.

• Commissioned new blast furnace and cold rolling mill at Jamuria, marking key milestones in expansion strategy and enhancing cost efficiency.

• Focus on value-added products continues, with a 43% CAGR in this segment over the last five years and plans for further expansion, targeting 80% of revenue mix.

• Emerged as the largest exporter of specialized aluminum foil in the country, with ongoing investments in niche products to drive future growth.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2024, were approved and reviewed by the Audit Committee and Board, with an unmodified review report from statutory auditors.

Financial highlights

• Q3 FY25 consolidated operating revenue reached INR 3,753 crores, up 13.2% year-over-year; consolidated Q3 net profit after tax was INR 197 crores, a 57% year-over-year increase.

• Operating EBITDA for Q3 was INR 456 crores, up 12% year-over-year; overall EBITDA including interest income was INR 507 crores.

• Gross profit margin for Q3 FY25 at 27.6%; EBITDA margin at 12.2%; PAT margin at 5.3%.

• Export revenue contributed 11% of total revenue; finished steel accounted for 49% of revenue.

• Interim dividend of INR 2.25/share announced, totaling INR 63 crores.

Outlook and guidance

• Expecting margin improvements from stabilization of new blast furnace and commissioning of oxygen plant, with cost savings of INR 2,000 per ton anticipated.

• Ongoing capacity expansions in carbon steel, stainless steel, and aluminium to drive future growth and margin accretion.

• Targeting double-digit CAGR annually, with EBITDA projected to grow 10%-15% year-over-year; aiming for INR 4,000 crores EBITDA by FY28.

• Strategy includes geographical expansion, cost efficiency, and sustainability without increasing leverage.

• Long-term vision includes becoming a diversified metal conglomerate with minimal volatility and high-margin, sustainable growth.