Lloyds Metals And Energy (512455) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever sponge iron production and total income of INR 55,601 mn for nine months FY25, up 11% year-over-year, with both plants operating at optimum capacity.

• EBITDA grew 31% YoY to INR 17,237 mn with a margin of 31%, and PAT for 9M FY25 reached INR 12,481 mn, up 29% YoY.

• Major projects, including DRI at Ghugus and a 4-million-ton pellet plant, are nearing completion and expected to be commissioned by quarter end or early next quarter.

• Strategic investment in Thriveni MDO business and acquisition of 80% in Thriveni MDO operations for INR 700 mn expected to drive future earnings accretion and cost savings.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31st December 2024 were approved and reviewed by the Audit Committee and Board.

Financial highlights

• Revenue grew 11% year-over-year for nine months FY25, driven by higher iron ore and sponge iron volumes, with iron ore sales volume at 7.8 mnt and realization per ton up 10% YoY.

• EBITDA increased 31% year-over-year, with EBITDA per ton for iron ore rising 21% YoY to INR 1,860 for nine months FY25.

• PAT margin for 9M FY25 at 22.45%, up 318 bps YoY; diluted EPS for 9M FY25 at 22.60.

• Standalone revenue from operations for Q3 FY25 was ₹1,670.82 Cr, with standalone profit after tax at ₹389.53 Cr.

• Major capex of INR 2,700 crore (INR 27,180 mn) incurred in 9M FY25, supporting ongoing and future expansion projects.

Outlook and guidance

• Expectation to mine and dispatch 25 million tons annually, pending timely EC approval, and expand iron ore capacity to 25 MNT and steelmaking to 4.2 MNT.

• Guidance for 10 million tons of iron ore sales in FY25, with 2.2 million tons targeted for Q4.

• MDO business integration from April 1, 2025, expected to yield INR 400-500 per ton cost savings in iron ore.

• All upcoming projects expected to have payback periods of less than 4 years and are on or ahead of schedule.

• By FY28, plan to operate two beneficiation plants, at least 8 million tons of pellets, and 1.2 million tons of steel capacity.