Shyam Metalics & Energy has delivered a robust performance in the first quarter, showcasing strong growth across key financial metrics. The company's strategic focus on operational efficiency and product diversification has yielded positive results amid ongoing global economic challenges.

Financial Highlights

• Revenue surged by 22% year-on-year to Rs. 4,490.00 crores
• Operating EBITDA increased by 19% to Rs. 580.00 crores, with a margin of 13.12%
• Profit After Tax (PAT) grew by 5.3% to Rs. 291.00 crores
• Volume growth was notable at 32% year-on-year

Operational Performance

The company's newly commissioned facilities have shown impressive utilization rates:

• Blast furnace achieved 104% utilization
• Color-coated unit reached 70% utilization

Brij Bhushan Agarwal, Chairman and Managing Director, commented, "Our blast furnace facility is currently operating at more than 120% rating, which is unparalleled in the Indian industry. We've implemented the best technologies and conducted extensive R&D in setting up this plant."

CAPEX and Expansion Plans

Shyam Metalics has made significant progress in its capital expenditure plans:

• Incurred Rs. 7,003.00 crores in CAPEX, representing 70% of total planned expenditure
• Rs. 4,900.00 crores have been capitalized
• Most carbon steel CAPEX expected to be operational by FY26
• Stainless steel and aluminum projects on track for FY27 commissioning

The company has also declared an interim dividend of Rs. 1.80 per share, amounting to an outgo of Rs. 52.24 crores.

Future Outlook

Despite ongoing geopolitical challenges, Shyam Metalics remains optimistic about maintaining its growth trajectory. The management expects to sustain an annual CAGR of around 15% and anticipates EBITDA margins to remain between 11-13%.

Deepak Agarwal, Director of Finance, stated, "We expect a reasonably strong demand recovery on the back of recent policy announcements made by the government towards railway, roadways, civil aviation, gas pipeline, and affordable housing sectors."

Diversification and Value Addition

The company continues to focus on diversification into high-value products:

• Expanding aluminum foil capacity and moving into downstream value-added products
• Stainless steel segment targeting Rs. 5,500.00-6,000.00 crores top line in the next 2-3 years
• Evaluating opportunities in coal mining to enhance operational efficiency

Shyam Metalics' strategic investments and focus on operational excellence position it well for sustained growth in the coming years, as it continues to expand its presence in the metal sector with a debt-free balance sheet and strong cash flows.

Shyam Metalics & Energy , a leading integrated metal producing company, has reported robust financial results for the first quarter ended June 30, alongside several key announcements.

Financial Highlights

The company's consolidated revenue from operations for Q1 stood at Rs 4,418.84 crore, showing a significant increase from Rs 3,611.61 crore in the corresponding quarter of the previous year. This represents a year-on-year growth of approximately 22.30%.

Profit after tax (PAT) for the quarter reached Rs 290.67 crore, up from Rs 276.12 crore in the same period last year, marking a 5.27% increase. The company's earnings before interest, depreciation, and amortization (EBIDTA) also saw an improvement, rising to Rs 633.23 crore from Rs 538.60 crore in the corresponding quarter.

Interim Dividend Declaration

In a move that will likely please shareholders, Shyam Metalics' Board of Directors has declared an interim dividend of Rs 1.80 per equity share, representing 18% of the face value of Rs 10 per share. The record date for determining shareholder eligibility has been set for July 28.

Fundraising Plans

The company has announced ambitious fundraising plans, with the Board approving the raising of funds up to Rs 4,500 crore. This will be achieved through various means, including the issuance of equity shares, convertible securities, and private placements. Additionally, Shyam Metalics has approved the issuance of Non-Convertible Debentures (NCDs) for up to Rs 3,000 crore.

Operational Performance

Shyam Metalics continues to focus on its core business of manufacturing steel and allied products. The company's product portfolio includes:

• Pellets
• Sponge iron
• MS billets
• TMT and long products
• Specialty alloys
• Power generation

Corporate Governance

The company has scheduled its 23rd Annual General Meeting (AGM) for August 26, to be held through video conferencing. In line with regulatory requirements, Shyam Metalics has also modified its "Code of Conduct for Regulating, Monitoring and Reporting of Trading by Insiders" to comply with recent amendments in SEBI regulations.

Market Outlook

While the company has not provided specific forward-looking statements, the strong financial performance and strategic initiatives suggest a positive outlook. The substantial fundraising plans indicate that Shyam Metalics may be positioning itself for expansion or significant investments in the near future.

Investors and stakeholders will be keenly watching how the company utilizes these funds and navigates the dynamic steel and metal markets in the coming quarters.

Note: All financial figures are in Indian Rupees (Rs) and are on a consolidated basis unless otherwise stated.