Sarda Energy & Minerals (504614) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly captive power generation at Siltara and 7% YoY growth in hydropower output, with improved IPP thermal plant performance (PLF 74% for the quarter, 67% for nine months, up from 56% in FY24).

• Achieved strong revenue and profit growth in Q3FY25 and 9MFY25, driven by the first full quarter of SKS Power consolidation and higher thermal power generation.

• Indonesian coal mine resumed operations, producing 0.33 million tons; several expansion projects (coal, hydro, solar, mineral wool) progressing on schedule.

• Maintained a robust, diversified business model across minerals, energy, and metals, with strategic asset locations and a focus on ESG initiatives.

• Acquisition of SKS Power Generation (Chhattisgarh) Limited completed in August 2024, with results included from August 22, 2024.

Financial highlights

• Consolidated revenue for Q3 FY25 was INR 1,319 crores, up 43% YoY and 14% QoQ.

• Operating EBITDA for Q3FY25 at Rs 381 Cr (28.9% margin), up 96% YoY; 9MFY25 at Rs 973 Cr (28.6% margin), up 52% YoY.

• Profit after tax grew 75% YoY to INR 200 crores, steady QoQ despite INR 46 crores mark-to-market provisioning.

• Standalone Q3FY25 revenue at Rs 1,047 Cr, up 59% YoY; EBITDA at Rs 313 Cr (29.7% margin), up 86% YoY; PAT at Rs 189 Cr, up 68% YoY.

• Net consolidated debt at INR 1,400 crores; cash and liquid investments exceed INR 1,400 crores as of Dec 31, 2024.

Outlook and guidance

• Energy division expected to become a major EBITDA contributor, with SKS Power integration and new solar/hydro projects.

• New projects (hydro, solar, mineral wool, coal mines) expected to contribute to profitability in the next financial year.

• Domestic demand and government spending seen as key growth drivers; reversal of interest rate cycle to boost competitiveness and capital investment.

• Management does not expect significant impact on profit & loss from the SKS acquisition for the period ended December 31, 2024.