Shyam Metalics and Energy (SHYAMMETL) Q4 20/21 earnings summary

Executive summary

• FY21 results strengthened despite COVID-19 disruption, supported by higher sales volumes, value-added product mix, cost control and a strong H2 recovery.

• Consolidated revenue from operations was ₹6,297.07 crore and PAT ₹843.56 crore; IPO listing followed in June 2021.

Financial highlights

• Consolidated revenue from operations rose to ₹6,297.07 crore from ₹4,376.35 crore; total revenue was ₹6,320.79 crore vs ₹4,388.18 crore.

• Consolidated EBITDA was ₹1,417.51 crore vs ₹677.92 crore; PBT was ₹1,054.96 crore vs ₹295.37 crore and PAT ₹843.56 crore vs ₹340.23 crore.

• Consolidated basic and diluted EPS increased to ₹36.10 from ₹14.56; operating cash flow was ₹1,049.80 crore vs cash outflow of ₹91.00 crore.

• Finance costs fell to ₹62.46 crore from ₹85.89 crore, while depreciation and amortisation was ₹300.36 crore vs ₹296.68 crore.

Outlook and guidance

• Expansion is planned to lift installed metal capacity from 5.71 MTPA to 11.60 MTPA and captive power capacity from 227 MW to 357 MW, with projects expected to operate during FY22–FY25.

• Planned expansion capex is ₹2,960 crore, funded through internal accruals; FY22 capex is planned at ₹850 crore.

• A 0.04 MTPA aluminium foil mill, with ₹360 crore capex, was expected to become operational in FY22; steel sales target is 36 lakh tonnes within four years.

• Management expected firm steel demand and pricing near-to-medium term, supported by infrastructure, housing and auto demand, while noting potential short-term disruptions.