Lloyds Metals And Energy (512455) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly operational and financial performance in Q1 FY25, with total income of INR 24,231 Mn and PAT of INR 5,574 Mn, driven by higher iron ore and DRI volumes year-over-year.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2024 were approved by the Board on 30th July 2024.

• Statutory auditors issued an unqualified limited review report for both standalone and consolidated results.

• Raised nearly $500 million through QIP and ongoing preference issue to fund CapEx plans.

Financial highlights

• Q1 FY25 revenue reached INR 2,428 crore, up 23% year-over-year, driven by record sponge iron and iron ore volumes.

• EBITDA increased 32% year-over-year in Q1 FY25; EBITDA per ton was INR 1,848, up 23% year-over-year.

• PAT increased 38.2% YoY to INR 5,574 Mn, with PAT margin at 23%; diluted EPS was 10.96, up 38.2% YoY.

• Iron ore production was 4 million tons, with dispatches at 3.6 million tons and average realization of INR 5,710, a 7% year-over-year increase.

• DRI production rose 16% year-over-year to 76,704 tons; power segment sales grew 5% year-over-year.

Outlook and guidance

• CapEx program remains on track, with INR 598 crore invested in Q1 FY25 and a total of INR 3,300 crore planned for FY25.

• CapEx for FY26 projected at INR 6,500-7,000 crore, funded through internal accruals and recent equity raises.

• Iron ore production guidance capped at 25 million tons annually post-approvals.

• Pellet plant and slurry pipeline expected online by end of FY25; second pellet plant and steel plant targeted for FY26 and mid-2026, respectively.

• All upcoming projects are expected to have a payback period of less than 4 years.