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Shyam Metalics Q2 Results: Higher costs hurt margins, lower realisations offset volume growth

Shyam Metalics Q2 Results: Higher costs hurt margins, lower realisations offset volume growth

Shyam Metalics Q2 Results: Higher costs hurt margins, lower realisations offset volume growth
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By Nigel D'Souza   |Nigel D'Souza Nov 10, 2022 12:13:50 PM IST (Updated)

Shyam Metalics has cash worth Rs 778 crore on its books.

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Shyam Metalics and Energy Ltd., an leading integrated steel and ferro alloys producer in India, reported 24 percent growth in its overall sales for the September quarter. However, higher raw material costs impacted its operational performance as well as profitability.

Consolidated revenue for the quarter crossed Rs 3,000 crore, while net profit fell over 70 percent compared to the same period last year.

EBITDA margin for the quarter fell to single digits, coming in at 7.9 percent, compared to over 25 percent in the year-ago period. This was due to a 70 percent jump in other expenses from last year. Operating profit or EBITDA declined 61 percent year-on-year.

The company’s earnings per share (EPS) was Rs 4.35 at the end of the September 2022 quarter compared with Rs 16.32 at the end of September 2021 quarter.

The company's EBITDA per tonne declined to as low as Rs 5,183 compared to Rs 17,008 in the September quarter last year and even Rs 13,328 during the June quarter. The lower realisations managed to offset growth in volumes.
In a separate corporate development, the company's Chief Financial Officer Shree Kumar Dujari has resigned, citing personal reasons.
Shyam Metalics has cash worth Rs 778 crore on its books.

Shares of Shyam Metalics are trading 2.5 percent lower at Rs 299.30. Over the last 12 months, the stock has declined nearly 15 percent compared to a flat performance by the benchmark Sensex index.

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