 "Steel Product")
Shares of Shyam Metalics and Energy hit the 10 per cent upper circuit on the BSE in Wednesday's intra-day trades backed by heavy volume after the company reported its monthly sales for July.
At 11:55 AM, the stock quoted 7.7 per cent higher at Rs 455 on volume of around 4.11 lakh shares as against the two-weekly average traded volume of around 51,000 shares on the BSE. Meanwhile, the S&P BSE Sensex was down 0.5 per cent at 65,532.
So far this fiscal year, the stock has zoomed 76.7 per cent as against a 12.3 per cent rally on the benchmark index.
According to a release issued by the company to the BSE on Tuesday, Shyam Metalics Spone Iron sales jumped by 37.2 per cent month-on-month (MoM) to 55,701 million tonnes (MT) in July 2023 up from 40,599 MT in June 2023. The average realisations, however, were down 4.9 per cent MoM.
Similarly, the company's reported 2.9 per cent and 5.3 per cent monthly sales growth in Billets and Long Steel. However, Steel sales were down 11.6 per cent MOM in July.
In late July, Shayam Metalics announced it plan to enhance their integrated capacity from 16.94 MTPA to 23.65 MTPA, out of which our present finished steel capacity of 2.69 MTPA (including expansion of announced projects) shall be enhanced to 4.4 MTPA with captive power plant from 377 MW to 597 MW and renewable portfolio to be enhanced from existing 9.1 MW to 109.1 MW with a capex cost of Rs 3,915 crores in Orissa and West Bengal.
The company's board also approved a proposal for raising of fund by way of one or more public/private offerings/preferential allotment or QIB or any combination thereof upto an aggregate amount of Rs 3600 crore in one or more tranches.
For the quarter ended June 2023, the company posted a 43.2 per cent decline in consolidated net profit at Rs 235.20 crore when compared with Rs 413.85 crore in the corresponding quarter a year ago. Total income, however, grew 2.9 per cent YoY to Rs 3,339.84 crore.
