Hi there folks, just wanted to know if there is any impact or potential challenges of Trump tariff scenario on this company? There is a fear of accelerated dumping by China. The company depends on coke import from China. This also belongs to the Metal sector which isnt doing great. Last 3-4 days the price action seem to be not that great which may indicate that thereâs fear. Thanks
Q4FY25 Results breakdown
Standalone Q4 Results
| Metric | Q4 FY25 | Q4 FY24 | % Change |
|---|---|---|---|
| Sales | 1013.09 | 670.01 | +51.2% |
| EBITDA (Adj.) | 262.33 | 150.95 | +73.8% |
| EBITDA Margin (%) | 25.9 | 22.5 | +3.4 pp |
| Net Profit | 115.25 | 101.07 | +14.0% |
Consolidated Q4 Results
| Metric | Q4 FY25 | Q4 FY24 | % Change |
|---|---|---|---|
| Sales | 1238.83 | 889.25 | +39.3% |
| EBITDA (Adj.) | 270.24 | 179.20 | +50.8% |
| EBITDA Margin (%) | 21.8 | 20.2 | +1.6 pp |
| Net Profit | 100.38 | 87.98 | +14.1% |
Segment-wise Standalone Q4 Results
| Segment | Revenue Q4 FY25 | Revenue Q4 FY24 | % Change | EBIT Q4 FY25 | EBIT Q4 FY24 | % Change |
|---|---|---|---|---|---|---|
| Steel | 432.77 | 531.10 | -18.5% | 47.53 | 111.73 | -57.5% |
| Ferro Alloys | 147.29 | 153.25 | -3.9% | 17.37 | 25.39 | -31.6% |
| Power | 562.54 | 69.10 | +714.1% | 170.75 | 1.76 | +9599% |
Segment-wise Consolidated Q4 Results
| Segment | Revenue Q4 FY25 | Revenue Q4 FY24 | % Change | EBIT Q4 FY25 | EBIT Q4 FY24 | % Change |
|---|---|---|---|---|---|---|
| Steel | 432.78 | 504.35 | -14.2% | 47.53 | 111.73 | -57.5% |
| Ferro Alloys | 355.91 | 367.17 | -3.1% | 33.84 | 36.74 | -7.9% |
| Power | 642.33 | 161.96 | +296.3% | 144.91 | -11.86 | +1321% |
Net profit is lower despite strong sales and adjusted EBITDA growth primarily due to a sharp rise in interest costs, deferred tax, and depreciation expenses following the acquisition of SKS Power. The company took on significant debt to fund the acquisition, leading to a substantial increase in finance costs, which jumped from 27.57 in Q4 FY24 to 70.03 in Q4 FY25. Additionally, the integration of SKS Powerâs assets and higher capital expenditure resulted in depreciation nearly doubling, from 46.27 to 86.62. On top of this, the company recorded a one-time spike in deferred tax expense (66.22 in Q4 FY25 vs a reversal in Q4 FY24) due to fair value adjustments of SKS Powerâs assets as part of the acquisition accounting. These three non-operational but unavoidable items significantly reduced profit before tax and after-tax earnings, ultimately muting the growth in net profit despite strong underlying operating performance.
Update:
I had included other income in EBITDA. Updated the answer to remove other income from calculations.
Sarda and Energy and minerals ltd -
Q4 and FY 25 results and concall highlights -
Q4 outcomes -
Revenues - 1239 cr, up 39 pc
EBITDA - 317 cr, up 62 pc ( margins @ 24.7 pc )
PAT - 100 cr, up 14 pc
FY 25 outcomes -
Revenues - 4643 cr, up 20 pc
EBITDA - 1410 cr, up 44 pc ( margins @ 29.3 pc )
PAT - 702 cr, up 34 pc
FY 25 - Achieved production -
Coal production @ 16.8 lakh MT ( highest ever )
Iron Ore pellets @ 8.18 vs 8.1 lakh MT ( highest ever )
Sponge iron @ 3.19 vs 3.16 lakh MT
Steel Billets @ 2.05 vs 2.29 lakh MT
HB Wires @ 0.35 vs 0.38 lakh MT
Ferro alloys @ 1.83 vs 2 lakh MT
Captive thermal power generation @ 1244 vs 1262 million KWHs
Hydro power generation @ 508 vs 482 million KWHs
Thermal power generated from SKS energyâs plant @ 2238 million KWH
Update on SKS energyâs acquisition -
In mid CY 25, Sarda Energy acquired SKS Power for 1950 cr through the NCLT process. SKS operates 2X 300 MW thermal power plants. Since Sarda energy has access to captive coal mines, it should be able to turn around SKS Powerâs operations in a much better way
Sarda Energyâs FY 25 results do not include first Qtrâs revenues from SKS ( Q1 is the best Qtr for power sales )
Also, the power load factor ( PLF ) of SKSâs operations in FY 25 was low due to - maintenance shut down of one of the 300 MW unit for 40 days ( in Q3 ) + shut down of the other 300 MW unit for 28 days due to a fire accident ( in Q4 )
Hydro Power -
Recorded stable revenues of 330 cr from their 142 MW hydro power unit with 72 pc EBITDA margins
Operationalised 25 MW Rehar Hydro power plant in Q4 FY 25. should start contributing wef Q1 this FY
SKS Powerâs acquisition will ensure that energy distribution becomes a major EBITDA driver from FY 26 onwards
Companyâs current capacities -
Minerals -
Iron Ore mines ( @ Rajnandgaon ) producing 1.5 MMT / yr
Coal mines ( @ Gare Palma ) producing 1.68 MMT / yr
Energy -
Thermal -
81.5 MW @ Siltara - Chattisgarh
2 X 300 MW @ Raigarh - Chattisgarh ( acquired from SKS Power )
80 MW @ Vishakhapatnam
Hydro -
49 MW ( including the new 25 MW Rehar project ) in Chattishgarh
4.8 MW in Uttarakhand
113 MW in Sikkim
Solar -
50 MW @ Chattishgarh to be commissioned in FY 26 - for captive consumption
Waste Heat -
Waste heat power generation capacity @ 21.5 MW
Metals -
Pellets - 9 lakh MT
Sponge Iron - 3.6 lakh MT
Billets - 3 lakh MT
Wire Rods - 2.5 lakh MT
HB Wires - 45k MT
Ferro alloys - 45 MVA @ Chattishgarh + 102 MVA @ Vishakhapatnam ( capacities of electric furnaces to make Ferro alloys is measured in MVA )
Gross Debt @ 2823 cr, Net Debt @ 1566 cr
Expansion plans -
Gare Balma IV/7 coal mine - expects to get the final approval for increase in coal mining capacity from 1.68 MMT / yr to 1.8 MMT / yr in Q1 FY 26
Gare Balma IV/5 coal mine - is a high grade coal mine in Chattishgarh with extractable reserves of 39 MMT - company has been granted a time of 57 months to commence production
Shahpur West coal mine - High-grade Coal Mine in Madhya Pradesh, with extractable reserves of 10.38 MT. Mine Opening permission received in Mar-25. Mine development work has started. Expect to commence production before end of FY 27
Bartunga (Joint Venture) coal mine - High-grade Coal Mine in Chhattisgarh with production capacity of 2.1 MMT / yr ; 18% revenue share with SECL; Approvals under process
Kotaiveera Hydro Power project with capacity of 24.9 MW - Based on IB river ( a tributary of Mahanadi ) - project is in approval stage, project work is expected to commence in mid FY 26
50 MW solar plant in Chattishgarh - work is under progress. Project is likely to be commissioned in FY 26
Management commentary -
Companyâs Thermal + Hydro energy plants contributed to 47 pc of companyâs EBITDA in FY 25. With better results from SKS Powerâs 2X300 MW plants in FY 26, company expects the energy segmentâs EBITDA contribution to grow further
Indiaâs steel production increased by 5 pc in FY 25 to 152 MMT vs a 3 pc decline in global steel production @ 1840 MMT ( led by 1 pc decline in Chinese production ). Domestic steel demand increased by 12 pc in FY 25. Steel prices in India declined due to increased imports and reduced exports. Net imports @ 4.2 MMT in FY 25 vs 1.1 MMT in FY 24
Domestic steel production in Q4 was 40.1 MMT, up 7 pc YoY. Steel consumption in Q4 was @ 40.3 MMT, up 3 pc QoQ
Chinese export of steel in Q4 @ 27.4 MMT, up 6 pc due weakening local steel demand in China. Many countries have started imposing anti - dumping duties against cheap Chinese imports
Domestic Coal production @ 1047 MMT in FY 25, up 5 pc YoY. Coal imports into India fell by 9 pc in FY 25. Indian coal Index declined by 15 pc in FY 25 vs 24
Ferro alloys exports from India dropped to 1.06 lakh MT from 1.15 lakh MT due lower production
Exchange power prices dropped 17 pc in FY 25 vs FY 24 from Rs 4.31 vs Rs 5.17 / unit
India has recently imposed a 12 pc anti-dumping duty on Chinese Steel imports - safeguarding the domestic Industry
Unsuccessful bidders for SKS power plant have appealed against NCLAT order. The matter is sub-judice @ Supreme Court
Likely to see significant improvement in PLF of SKS Powerâs generation capacity in FY 26 vs 25
Having captive coal feeding into their commercial power plants is a big competitive advantage and insulates their profitability to a large extent
Company steel production is down 13 pc in Q4 due planned shutdowns + when power rates r good, company diverts its coal for Power production instead of steel production
Going forward ( in medium to long term ), the contribution from energy vertical is going to become more and more prominent. Second area where the company is going to focus more is towards mining ( ie minerals division ). They believe that their steel production capacities are working at optimum levels and have no immediate expansion plans for their finished metal division
Segmental breakup of companyâs FY 25 EBITDA -
Energy - 47 vs 20 pc
Ferro Alloys - 19 vs 21 pc
Steel - 34 vs 59 pc
Company is consuming 10k MT of coal / day to run the SKS powerâs plants at full capacity ( so that works out to be an annual coal requirement @ 36 lakh MT for SKSâs plants )
Ballpark estimate - SKSâs power plants should produce about 400 cr units of sellable units. One may assume an avg selling rate of Rs 5 / unit for full FY ( factoring in summer peaks + rainy season troughs in the selling rates of electricity )
Disc: initiated a tracking position, not SEBI registered, not a buy/sell recommendation, posted for educational purposes
Hi @ranvir - thanks for uploading this. Do you have any ball park estimates of next qrtr or next yr nos, mainly sales and EBITDA?
Since a part of the business is dependent on Ferro alloys + Steel prices, itâs very difficult ( at least for me to hazard a guess for FY 26 )
However, Q1 should be good since these commodity prices have been largely stable in Apr + May. In addition, they should get full benefits of the 2 X 300 MW power plants acquired LY