Shyam Metalics & Energy Limited (SMEL) has reported a mixed performance for November, with significant growth in some product segments while facing challenges in others. The company, known for its diverse product portfolio in the metal industry, demonstrated resilience in a fluctuating market environment.

Key Highlights

• Strong Growth Segments: Pellets, pig iron, and CR sheets showed remarkable growth.
• Challenging Areas: Sponge iron and carbon steel products faced pricing pressures.

Detailed Performance Analysis

Pellet Segment

• Sales volume increased by 131.06% year-over-year
• Slight increase in realization by 1.02% year-over-year

Pig Iron

• Exceptional sales volume growth of 1865.63% year-over-year
• Realization decreased by 11.08% year-over-year

CR Coil/CR Sheets

• Impressive sales volume growth of 1234.68% year-over-year
• Realization increased by 25.04% year-over-year

Sponge Iron

• Sales volume decreased by 7.65% year-over-year
• Realization dropped by 11.08% year-over-year

Carbon Steel

• Marginal increase in sales volume by 0.98% year-over-year
• Realization decreased by 9.18% year-over-year

Product Performance Comparison

Strategic Developments

1. Blast Furnace Plant: SMEL commissioned a blast furnace plant with a capacity of 7.7 lac tonnes per annum, along with sinter and coke oven plants at their Jamuria location in November 2024.

2. Color Coated Plant: The company implemented a color-coated plant in Jamuria in November 2024, now producing color-coated sheets.

3. Roofing Solutions: SMEL offers a premium range of SEL Tiger Roofing Sheets, categorized into four distinct brands:

   • SEL TIGER Royale: Ultra-Premium Color Coated Sheets
   • SEL TIGER ELITE: Premium Color Coated Sheets
   • SEL TIGER AZURE: Galvalume Wider Sheets
   • SEL TIGER ALFA: Galvalume Narrow Sheets

4. HR Tube/Pipe Production: The company began reprocessing leftover side-slitted HR coils for manufacturing rectangular hollow section (RHS) and square hollow section (SHS) pipes, with commercial sales starting in February 2025.

Market Implications

The varied performance across different product segments reflects the complex dynamics of the metal industry. While SMEL has shown remarkable growth in newer segments like pig iron and CR sheets, possibly due to recent capacity additions, traditional segments like sponge iron and carbon steel face challenges, likely due to market oversupply or reduced demand.

The company's strategic investments in new plants and product lines, particularly in value-added products like color-coated sheets and specialized pipes, indicate a forward-looking approach to diversify its product mix and potentially improve profit margins.

Investors and industry observers should closely monitor how SMEL navigates these mixed market conditions, especially its ability to maintain growth in high-performing segments while addressing challenges in others. The company's adaptability and strategic expansions may play crucial roles in its future performance amid fluctuating market demands and pricing pressures.

Shyam Metalics & Energy Limited (SMEL) has issued a postal ballot notice to seek shareholder approval for key corporate governance matters, including the re-appointment of an independent director and revisions in remuneration for two whole-time directors.

Director Re-appointment

The company is seeking approval for the re-appointment of Ms. Rajni Mishra (DIN: 07706571) as an Independent Director for a second term of five years. If approved, Ms. Mishra's tenure would extend from February 12, 2026, to February 11, 2031.

Remuneration Revisions

SMEL is also proposing revisions in the remuneration packages for two of its Whole-Time Directors:

1. Mr. Sheetij Agarwal (DIN: 08212992):

   • Current remuneration: Rs. 60.00 lakh to Rs. 2.00 crore annually, with variable incentives up to Rs. 1.00 crore
   • Proposed remuneration: Rs. 2.00 crore to Rs. 5.00 crore annually, with variable incentives up to Rs. 1.00 crore

2. Mr. Dev Kumar Tiwari (DIN: 02432511):

   • Current remuneration: Up to Rs. 50.00 lakh annually
   • Proposed remuneration: Rs. 50.00 lakh to Rs. 1.50 crore annually

E-voting Details

The company has set up an e-voting process for shareholders to cast their votes on these resolutions:

Company Performance

The remuneration revisions come in the wake of strong financial performance by SMEL:

• Net profit increased by 39.33%
• Steel production reached a record 4.97 MTPA, up 7.48% year-on-year
• Steel product sales hit an all-time high of 2.00 MTPA, a 3.75% year-on-year increase

Additional Information

The postal ballot notice includes detailed information about the directors' qualifications, experience, and their roles in the company's growth. Shareholders are encouraged to review this information before casting their votes.

SMEL has engaged the services of National Securities Depositories Limited (NSDL) to provide the e-voting facility. The company has assured that no unpublished price-sensitive information was discussed during recent investor meetings.

Shareholders are advised to refer to the full postal ballot notice for comprehensive details on the proposed resolutions and voting procedures.