Shyam Metalics and Energy (SHYAMMETL) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue and EBITDA declined YoY; consolidated PAT was ₹3,402.45 million. Standalone PAT fell to ₹1,053.54 million from ₹2,852.44 million.

• Production ramp-up and expansion investments continued, while COVID-19 and weaker steel demand clouded the near-term outlook.

Financial highlights

• Consolidated revenue from operations was ₹43,628.86 million vs ₹46,005.14 million; total revenue was ₹44,020.50 million vs ₹46,864.11 million.

• Consolidated EBITDA was ₹6,529.79 million vs ₹10,042.32 million; PBT was ₹2,953.79 million vs ₹7,629.62 million.

• Consolidated profit for the year was ₹3,402.45 million vs ₹6,358.48 million; profit attributable to owners was ₹3,402.56 million vs ₹6,031.90 million.

• Standalone revenue was ₹21,226.36 million vs ₹21,703.40 million; EBITDA was ₹3,020.71 million vs ₹4,441.04 million and PAT was ₹1,053.54 million vs ₹2,852.44 million.

• Consolidated operating cash flow was negative ₹930.46 million vs positive ₹6,165.38 million; investing outflow was ₹4,206.88 million and financing inflow ₹5,335.35 million.

Outlook and guidance

• Management anticipated growth opportunities in iron and steel after project commissioning, with plans to expand production capacity across operations.

• COVID-19 and lockdown effects were expected to weigh on Indian steel demand and prices in H1 FY21; stimulus and improving consumer confidence were seen as recovery drivers in H2.