Sarda Energy & Minerals Limited (SEML) has reported a strong financial performance for the second quarter, with significant growth across key metrics.

Financial Highlights

Revenue Growth and Profitability

SEML witnessed a robust 31.9% year-on-year increase in consolidated revenue, reaching ₹1,527.78 crore. This growth was primarily driven by strong performances across its steel, ferro alloys, and power segments.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant jump of 47.7%, climbing to ₹580.16 crore from ₹392.83 crore in the same quarter last year. The EBITDA margin improved by 410 basis points to 38.0%, reflecting enhanced operational efficiency.

Net profit for the quarter surged by 61.1% to ₹327.77 crore, compared to ₹203.49 crore in the previous year. This substantial increase in profitability underscores the company's ability to capitalize on favorable market conditions and internal operational improvements.

Segment Performance

• Steel: The steel segment reported revenue of ₹447.38 crore, maintaining a steady performance.
• Ferro Alloys: This segment saw a slight decline in revenue to ₹396.02 crore from ₹403.21 crore in the previous year.
• Power: The power segment emerged as a significant growth driver, with revenue more than doubling to ₹892.36 crore from ₹419.84 crore in the previous year.

Balance Sheet and Cash Flow

As of September 30, SEML maintained a strong balance sheet with total assets of ₹11,012.32 crore. The company's cash and cash equivalents stood at ₹38.73 crore, ensuring adequate liquidity for operational needs and potential growth opportunities.

Outlook

The significant improvement in SEML's financial metrics, particularly in the power segment, indicates potential for sustained growth. However, investors should note that the company faces an ongoing legal challenge in the Supreme Court regarding its acquisition of SKS Power Generation (Chhattisgarh) Limited, which could impact future performance.

Sarda Energy & Minerals Limited continues to demonstrate strong financial health and operational efficiency, positioning itself well in the competitive steel and power markets. The company's ability to maintain this growth trajectory will likely depend on broader economic conditions, regulatory outcomes, and its capacity to leverage its diversified business model.

Sarda Energy & Minerals Ltd (SEML) has achieved a significant milestone in its operations at the Gare Palma IV/7 Coal Mine. The company has received the Consent to Operate from the Chhattisgarh Environment Conservation Board for its Coal Handling Plant, marking a crucial step in its mining operations.

Key Details of the Consent

The environmental consent granted to SEML covers two critical aspects:

1. Water Pollution Control: Approval under the Water (Prevention and Control of Pollution) Act, 1974
2. Air Pollution Control: Approval under the Air (Prevention and Control of Pollution) Act, 1981

Plant Specifications

The consent applies to SEML's Coal Handling Plant, which has the following specifications:

Regulatory Compliance

This development is significant from a regulatory standpoint:

• The company has duly informed the stock exchanges about this approval, in compliance with Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements), Regulation 2015.
• The consent from the Chhattisgarh Environment Conservation Board, Raipur, demonstrates SEML's commitment to environmental regulations in its mining operations.

Implications for Investors

The receipt of this operational consent is a positive development for Sarda Energy & Minerals Ltd:

1. It allows the company to proceed with its coal handling operations at the specified capacity.
2. Compliance with environmental regulations may enhance the company's standing with regulatory bodies and potentially with environmentally conscious investors.
3. The operational approval for such a significant annual capacity (18 lakh metric tonnes) could contribute to the company's production and revenue potential from this coal mine.

Investors and market watchers will likely keep an eye on how this operational approval translates into the company's performance in the coming quarters, particularly in terms of coal production and handling efficiency at the Gare Palma IV/7 Coal Mine.