Sarda Energy & Minerals Limited , an integrated steel, power, and mining company, has reported stellar financial results for the first quarter, showcasing significant growth across key metrics.

Record-Breaking Revenue and Profit

The company achieved a consolidated revenue of INR 1,633.00 crores in Q1, marking a substantial 76% year-over-year increase and a 32% quarter-over-quarter growth. This remarkable performance was driven by improved energy prices and higher hydropower generation.

Operating EBITDA surged to INR 627.00 crores, up from INR 382.00 crores in the previous year, while consolidated profit after tax witnessed an impressive 118% growth, reaching INR 435.00 crores.

Operational Highlights

Sarda Energy & Minerals saw improvements across various segments:

• Hydropower generation increased by 37% year-over-year
• The thermal power plant achieved a significantly improved plant load factor of 90.21%, compared to 71.65% in the same quarter of the previous fiscal year
• The pellet plant and captive power plant reported record production levels

Strategic Moves and Expansion

The company made several strategic decisions and progress on expansion projects:

• Terminated the long-term power purchase agreement with CSPDCL for the 113-megawatt hydropower project, allowing for open market power sales
• Commissioned the 25 MW Rehar Hydropower project on July 8
• Expects to complete a 50 MW solar project in the current fiscal year
• Plans annual capital expenditure of INR 500.00-1000.00 crores for the next 2-3 years

Financial Position

Sarda Energy & Minerals has strengthened its balance sheet:

• Reduced net consolidated debt to approximately INR 1,000.00 crores from INR 1,600.00 crores
• Maintained strong liquidity with INR 1,700.00 crores in cash and liquid investments

Power Segment Outlook

Management projects power segment EBITDA of over INR 1,000.00 crores for the current fiscal year, indicating strong confidence in this business vertical.

Coal Mining Progress

The company received consent to operate for increased capacity of coal washery from 0.96 million tons to 1.80 million tons in May. Final approval for increasing coal mining capacity from 1.68 million tons is expected in the current quarter.

Pankaj Sarda, Managing Director of Sarda Energy & Minerals Limited, commented on the results, stating, "Q1 performance reinforces the strong foundation and long-term sustainability of our earnings. The earnings mix has evolved with an increasing share of energy business in the total earnings."

With its diversified portfolio and strategic expansions, Sarda Energy & Minerals Limited appears well-positioned for continued growth in the coming quarters.

Sarda Energy & Minerals Ltd. experienced a significant surge in its share price, jumping 20% following the release of its impressive quarterly results. The company's strategic shift towards becoming an energy-focused business has paid off, with the energy segment now contributing a substantial 67% to the consolidated EBITDA.

Robust Financial Performance

Sarda Energy reported remarkable financial growth for the quarter:

• Revenue surged by 76% to ₹1,633.10 crore
• EBITDA witnessed a staggering 137% increase, reaching ₹617.19 crore

These figures represent a significant improvement compared to the same quarter of the previous year.

Strategic Acquisition Boosts Results

The stellar performance includes the financial contribution from SKS Power Generation (Chhattisgarh) Ltd., which Sarda Energy acquired through the Corporate Insolvency and Resolution Process. The merger was completed in September of the previous year, adding to the company's energy portfolio and overall financial strength.

Stock Performance

The market responded positively to the news:

• Sarda Energy's stock closed 17% higher at ₹512.65
• It emerged as the top gainer on the BSE Smallcap index
• The stock has now turned positive year-to-date

Energy Segment Takes Center Stage

The company's transformation into an energy-focused business has been a game-changer. With the energy segment now accounting for 67% of consolidated EBITDA, Sarda Energy has positioned itself strongly in the power generation sector.

This strategic shift, coupled with the successful integration of SKS Power Generation, has significantly enhanced the company's financial performance and market standing. As Sarda Energy continues to capitalize on its energy-centric approach, investors will be keenly watching for sustained growth in the coming quarters.