Lloyds Metals shares rally 9% to record high after Q1 near profit rises 38% YoY; check details

For the quarter ended June 2024 (Q1FY25), Lloyds Metals' revenue jumped 22.5% year-on-year to ₹2,423.1 crore, led by higher sponge and iron ore volumes. Lloyd said that iron ore volumes were the highest ever for the company in a quarter.

Operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation), grew 32% YoY in Q1FY25 to ₹724.5 crore from ₹547.8 crore a year-ago. EBITDA margins improved to 29.9% in Q1FY25 from 27.7% in Q1FY24.

The company’s profit after tax (PAT) jumped 38.2% to ₹557.4 crore in the June quarter compared to ₹403.3 crore in the year-ago quarter.

The company also informed the stock exchanges that it incurred capex of ₹1,690 crore in FY 2023-24 and ₹598.4 crore in Q1 FY25.

After the announcement, shares of Lloyd Metals gained as much as 9.3% on Thursday to hit a record high of ₹799 on the NSE. However, the stock pared some of its early gains to close at ₹782 apiece, up 6.91% on the NSE.

Lloyd Metals made headlines last month after it raised ₹1,218 crore through a qualified institutional placement (QIP) offer.

The company issued 1.75 crore shares to eligible institutional investors, including mutual funds and insurance companies. The shares were issued at ₹696 apiece, which was almost a 5% discount to the QIP floor price of ₹732.08 per share.

Lloyds Metals had said that the proceeds from the issue will be used to set up a 4 million tonnes per annum (MTPA) pellet plant at Konsari in Maharashtra, together with an iron ore and grinding unit.