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Shyam Metalics records PAT of Rs 410 crore in Q2 FY22

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Capital Market
Last Updated : Nov 09 2021 | 10:16 AM IST

Shyam Metalics and Energy reported 157% jump in consolidated net profit to Rs 410.3 crore in Q2 FY22 from Rs 159.6 crore in Q2 FY21.

Revenues in the second quarter increased by 87% to Rs 2,494.3 crore from Rs 1,335.2 recorded in the same period last year.

EBITDA in Q2 FY22 was Rs 624 crore, up by 140% from Rs 260.3 crore in Q2 FY21. EBITDA margin was 25% in Q2 FY22 as against 19.5% in Q2 FY21.

Brij Bhushan Agarwal, vice chairman & managing director said: We are pleased to inform that the board has declared an interim dividend of Rs 2.25 per equity share.

SMEL continues to leverage its competitive strengths of raw material security, operational excellence, integrated business model with a strong distribution network to expand our presence and gain higher market share. We enjoy an extensive presence in our country's steel value chain. We have progressively de-risked and are working towards expanding our high value product portfolio.

The company has reduced its debt by approximately Rs 467 crore in the first half of the year. This has resulted in reduced interest costs going ahead. As on date, SMEL is a net cash company. SMEL has a net cash and cash equivalents of Rs 757 crore as on 30th September 2021.

We have taken some planned shutdown in our plants at Jamuria and Sambhalpur in our pellets, sponge and finished steel units. We are continuously investing in advanced technologies to enhance production and are exploring opportunities to obtain synergies in our existing manufacturing plants. This will keep our operating costs low, which we believe is critical for remaining profitable.

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Shyam Metalics and Energy (SMEL) is an integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

The scrip shed 0.36% to currently trade at Rs 358.95 on the BSE.

Shares of SMEL debuted on the bourses on 24 June 2021, at a price of Rs 367 per share. It was listed at a premium of of 19.93% as compared with its issue price of Rs 306 per share.

The IPO of Shyam Metalics and Energy had received bids for 256.11 crore shares as against 2.10 crore shares on offer, according to the stock exchange data. The issue was subscribed 121.43 times.

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First Published: Nov 09 2021 | 9:52 AM IST

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