Shyam Metalics and Energy (SHYAMMETL) Q4 22/23 earnings summary

Executive summary

• FY23 revenue grew, but lower realizations and higher input, power and overhead costs compressed EBITDA and profit; remained profitable in every quarter.

• Focus remained on integration, value-added finished products and net-worth-funded expansion to improve resilience and competitiveness across steel cycles.

Financial highlights

• Consolidated revenue from operations rose 21.3% YoY to ₹12,610.18 crore; total income was ₹12,722.19 crore.

• Consolidated EBITDA fell 42.8% YoY to ₹1,486.03 crore; PBT declined to ₹1,041.83 crore and PAT to ₹848.41 crore, down 50.8%.

• Consolidated EPS was ₹33.26 versus ₹68.91 in FY22; standalone PAT was ₹299.03 crore versus ₹810.27 crore.

• Consolidated steel production rose 42.0% YoY to 7.76 million tonnes; sales increased 3.3% to 3.34 million tonnes.

Outlook and guidance

• Targeting aggregate manufacturing capacity of 14.45 MTPA by March 2025, from 5.71 MTPA; finished-steel capacity is also set to expand materially.

• Expansion is planned to be funded through earnings and net worth, with management aiming to preserve low gearing and credit ratings.

• Export revenue target is 20%, compared with 9.83% in FY23; management expects infrastructure spending to support steel demand.

• Ramsarup Industries restart was targeted for Q3 FY25 following a planned ₹747 crore cash infusion.