Shyam Metalics and Energy (SHYAMMETL) Q4 21/22 earnings summary

Executive summary

• FY22 delivered strong growth: consolidated revenue ₹10,453.97 crore, EBITDA ₹2,599.88 crore and PAT ₹1,724.18 crore, supported by higher realizations, value-added products and cost optimization.

• Integrated operations, captive power and broad product and geographic reach supported record standalone steel production and sales despite pandemic and supply-chain disruptions.

• Growth priorities include capacity expansion, greater value addition, lower logistics costs and entry into aluminium foil and logistics; a potential fund raise of up to ₹3,000 crore was proposed for shareholder approval.

Financial highlights

• Consolidated revenue ₹10,453.97 crore vs ₹6,320.79 crore YoY; revenue from operations ₹10,393.96 crore vs ₹6,297.07 crore.

• Consolidated EBITDA ₹2,599.88 crore, up 86.50% YoY; PBT ₹2,364.33 crore, up 124.12%; PAT ₹1,724.18 crore, up 104.39%.

• Finance costs fell 62.92% YoY to ₹23.16 crore; standalone EBITDA margin rose to 24.59% from 22.08%.

• Consolidated operating cash flow was ₹1,689.55 crore vs ₹1,056.17 crore; net investing cash outflow was ₹1,926.54 crore, largely reflecting capex and investments.

Outlook and guidance

• Capacity expansion plans target 14.45 MTPA of finished steel products; total budgeted outlay was ₹3,950 crore, with ₹1,529 crore spent through FY22-end.

• The remaining ₹1,430 crore of announced IPO capex was expected to be spent over the next two financial years; a further ₹990 crore was planned for integration and expansion programs.

• A 40,000 TPA aluminium foil plant was commissioned at Pakuria and was expected to contribute to revenue from FY23; a ductile pipe plant and further steel, pellet, DRI and power additions are in the expansion plan.

• The proposed ₹3,000 crore fund-raising authorization would support capex, working capital, debt repayment and general purposes, with funding modes and timing subject to Board decisions and approvals.