Lloyds Metals And Energy (512455) Q4 24/25 earnings summary

Executive summary

• Achieved highest-ever profit before tax and record sponge iron production for FY2025, with total income of INR 67,727 Mn, up 3% YoY, and full utilization of 10 million ton iron ore capacity for the second consecutive year.

• EBITDA rose 13% YoY to INR 20,046 Mn, with margins improving to 29.6% and PAT up 16.7% YoY to INR 14,510 Mn.

• Major CAPEX projects progressed, including commissioning of the slurry pipeline, nearing completion of pellet, DRI, and power plants, and significant investments totaling INR 36,947 Mn in FY25.

• Triveni MDO business acquisition integration underway, with NCLT approval expected by Q1 FY2026 and anticipated cost savings.

• Audited standalone and consolidated financial results for FY25 were approved with an unqualified opinion from statutory auditors.

Financial highlights

• FY2025 revenue grew 3% YoY to INR 67,727 Mn, driven by higher iron ore realizations and record sponge iron output; EBITDA increased 13% YoY to INR 2,005 crores, and PAT rose 16.7% YoY to INR 14,510 Mn.

• Iron ore volumes flat at 10 million tons for FY2025; Q4 FY2025 iron ore sales at 1.66 million tons, with Q4 margins subdued due to lower volumes and higher fixed costs.

• Iron ore realization per ton for FY25 was INR 5,766 (up 6% YoY); DRI volumes at 308,000 tons and power volumes up 5% YoY.

• EBITDA margin improved to 29.6% (up 251 bps YoY); PAT margin at 21.42% (up 251 bps YoY); net D/E improved to -0.2x.

• Standalone net profit after tax for FY25 was ₹1,450.95 Cr, with basic EPS at ₹28.01 and diluted EPS at ₹26.12.

Outlook and guidance

• FY2026 iron ore volume guidance at 23-24 million tons, with up to 1.2 million ton reduction possible due to pending EC approval.

• CAPEX guidance for FY2026 is INR 6,000-6,500 crores, focused on mining, pellet, and steel capacities; major projects (slurry pipeline, pellet plants) are on track or ahead of schedule.

• Awaiting EC clearance to increase iron ore mining capacity from 10 mnt to 55 mnt, expected in Q1FY26.

• Cost savings of INR 500-600/ton expected from slurry pipeline and further savings from Triveni consolidation.

• Management and auditors confirmed the company’s ability to continue as a going concern, with no material uncertainties disclosed.