Shyam Metalics and Energy (SHYAMMETL) Q3 24/25 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 FY25, with 13.2% revenue growth year-over-year and robust production capabilities, including successful commissioning of new facilities such as a blast furnace and cold rolling mill at Jamuria.

• Interim dividend of ₹2.25 per share declared for FY 2024-25, with payment to be made within the stipulated time and record date set for February 7, 2025.

• Expansion strategy advanced with significant CapEx execution; 59% of planned INR 10,000 crore investment incurred, and major projects in aluminum and steel segments capitalized.

• Focus remains on value-added and specialized products, with a 43% CAGR in this segment over five years and plans for further expansion.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2024, were approved and reviewed by the Audit Committee and Board, with an unmodified review report from statutory auditors.

Financial highlights

• Q3 FY25 consolidated operating revenue reached INR 3,753 crores, up 13.2% year-over-year; consolidated net profit after tax was INR 197 crores, a 57% year-over-year increase, with a PAT margin of 5.3%.

• Operating EBITDA for Q3 was INR 456 crores, up 12% year-over-year, with an EBITDA margin of 12.2%.

• 9M FY25 revenue was INR 10,998 crores, operating EBITDA INR 1,350 crores, and PAT INR 689 crores.

• Export revenue contributed 11% of total revenue; finished steel accounted for 49% of revenue.

• Per tonne realizations for stainless steel up 6% YoY in Q3 FY25; aluminium foil up 11% YoY.

Outlook and guidance

• Expecting margin improvements from stabilization of new facilities, including the blast furnace and upcoming oxygen plant, with cost savings of up to INR 2,000 per ton anticipated.

• Additional EBITDA growth projected from ramp-up in pig iron, cold rolling mill, and stainless steel wire/bright bar units.

• Targeting EBITDA of INR 4,000 crores by FY28, with a CAGR of over 20% for the next 2–3 years.

• Focus on value-added products to contribute 80% of revenue mix, with no further leveraging of the balance sheet planned for growth.

• Expansion projects in carbon steel, stainless steel, and aluminium expected to be both value and margin accretive.