Lloyds Metals And Energy (512455) Q2 24/25 earnings summary

Executive summary

• Q2 and H1 FY25 results showed robust operational and financial performance, with strong growth in iron ore and sponge iron volumes due to both plants being operational.

• Achieved 26% year-over-year revenue growth in H1FY25, driven by higher iron ore and sponge volumes and realizations.

• EBITDA increased 37% year-over-year in H1FY25, with margins expanding to 30.04%.

• PAT for H1FY25 rose 35% year-over-year to INR 8,587 million, with PAT margin at 22.06%.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved by the Board on 23rd October 2024.

Financial highlights

• H1 FY25 revenue grew 26% year-on-year to INR 38,929 million, driven by higher volumes and realizations in both iron ore and sponge iron.

• EBITDA increased by 37% year-on-year in H1 FY25 to INR 11,693 million, with margin at 30.04%.

• PAT for H1 FY25 was INR 8,587 million, up 35% year-on-year; PAT margin at 22.06%.

• Standalone revenue from operations for Q2 FY25 was ₹1,364.43 Cr; H1 FY25 was ₹3,781.67 Cr.

• Received INR 72 crores as one-time IPS benefits from previous years, reported as other income.

Outlook and guidance

• Production guidance for FY25 is 13–14 million tons, contingent on EC for expansion by mid-February.

• All expansion plans are expected to have a payback period of less than 4 years.

• Cost per ton expected to decrease by INR 100–200 after enhanced mining, and further by INR 100–200 with beneficiation; slurry pipeline to reduce transport cost by INR 600/ton.

• H2 FY25 expected to be stronger, with new projects and price hikes supporting performance.

• Management notes continued growth in mining, sponge iron, and pellet trading segments, with new capital raised to support expansion.