FY25 Q1 results released
- Net revenue (9,585 Cr): QoQ: 1%, YoY: -4%
- EBITDA (1,004Cr): QoQ: 21%, YoY: -10%
- PAT (578 Cr): QoQ: 21%, YoY: -13%
- Sales volume 5% up YoY, 1% up QoQ (Composition: 10% exports, 90% domestic)
- FII holdings increased to 22.49% from 20.83% QoQ
FY25 Targets
Volumes +20%
EBITDA/tn range 18k-20k/tn
Commentary:
- stagnant growth in the US and EU markets, the export volumes of the company have remained flat on a QoQ level
- ongoing Red Sea issue extended transit times and freight cost from India to the western markets, and paucity of containers further affected exports
- company sources most of its raw materials from nearby shores and domestic suppliers, the company was largely able to mitigate cost and time risks arising from the crisis
- Cheap imports from China and Vietnam continue to pose threat to the domestic industry
Other points:
- During the quarter, with an investment of approximately Rs 715 crore, the company entered a JV to develop and operate a stainless steel melt shop in Indonesia with an annual production capacity of 1.2 million tonne per annum
- The company also set aside around Rs 1,900 crore and Rs 1,450 crore for the expansion of its downstream lines and upgradation of infrastructural facilities respectively, in Jajpur, Odisha
- During the period, the company completed total acquisition of Chromeni Steels Private Limited (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, for over Rs 1,600 crore, comprising payment towards equity transfer and payment of shareholders’ debt