Shyam Metalics and Energy reports 83% rise in stainless steel sales in May at 4,949 tonnes

Shyam Metalics and Energy on Monday announced an 82.57% year-on-year (YoY) rise in its stainless steel sales in May 2024 at 4,949 tonnes.

The sales, however, declined 28.12% compared to April 2024. Shares of the company were trading 0.37% higher on Monday. The company reported a 34.07% YoY rise in the average realisation per tonne at ₹1,37,531 during the month. However, the figure saw only an 8.27% rise when compared on a sequential basis.

Sales of aluminium foil increased 58% YoY during the month to 2,058 tonnes while the average realisation per tonne declined nearly 3% to ₹3,34,451. At the same time, speciality alloy sales fell 13% to 16,357 tonnes with a 0.79% YoY decline in the average realisation per tonne at ₹97,823.

Meanwhile, sales of carbon steel jumped 27.28% to 2,22,077 tonnes with a 6.47% decline in the average realisation per tonne to ₹40,059. For pellets, the sales fell 41.3% to 71,226 tonnes during the month with a 0.28% rise in the average realisation per tonne at ₹8,948.

During the fourth quarter of fiscal year 2024, Shyam Metalics and Energy reported a 13.4% decline in its consolidated net profit at ₹219.8 crore. Revenue from operations rose 5.2% to 3,606.2 crore while operating earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 3.4% to ₹441.7 crore. Operating EBITDA margin declined marginally to 12.2% during the quarter.

The board of directors of the firm approved expansion plans into new metals, i.e. stainless steel wire rods, stainless steel bright bars and aluminium foil with total investments of ₹810 crore which it said will be funded through internal accruals. This would further boost our revenues and margins in forthcoming years, the company stated.

Shares of the company have lost nearly 2% since the beginning of the year. The stock has gained nearly 96% in the last one year.