Lloyds Metals & Energy Ltd.
Q2FY23 Quarterly Result Announced for Lloyds Metals & Energy Ltd.
Iron & Steel Manufacturing company Lloyds Metals & Energy announced Q2FY23 results:
- Company:
- Revenue from operations for H1FY23 stood at Rs 15,417 million, significantly higher than H1FY22 as mining operations for the company begin in Q3FY22 onwards.
- EBITDA for H1FY23 stood at 32% and Q2FY23 at 25%.
- Cash PAT (PAT Depreciation Non cash items) for H1FY23 stood at Rs 4,395 million. Interest costs include non-cash accounting for INDAS for Rs 190 million in Q2FY23. This demonstrates healthy cash flows for the company.
- Mining:
- Iron ore production was stable at 0.73 million tonnes in Q2FY23; H1FY23 - 1.5 million tonnes, translating into a production run rate of 3 MMTPA as per our existing EC limit.
- Sales were higher by 9% QoQ; despite a traditionally weak quarter for mining companies. Dispatch volumes for H1FY23 stood at 2.65mn tonnes.
Mr. Rajesh Gupta - Director, said: “This H1FY23 performance is quite satisfactory considering the headwinds the steel industry and in particular iron ore miners have been facing as of today. Post imposition of export duty on iron ore and pellets by the central government the export market has become completely unviable and has led to the re-routing of those quantities in the domestic market. Combined with that, monsoons are generally the subdued quarter for mining companies. However, the company responded to the situation with agility and ramped up its dispatch volumes significantly. Despite 20 days of heavy rainfall in our mining area, where road infrastructure was almost standstill, the company reported 8.5% QoQ growth in dispatches. Our H1FY23 iron ore volumes stand at 2.5 million tonnes. With the run rate exhibited in Q2FY23, we are confident of achieving our iron ore sales volume target of 5-5.5million tonnes for FY23. Going ahead our focus also remains on improving the product mix of the company. To further improve our product mix the company has expanded its crushing facilities to 2.4million tonnes from 1.2million tonnes. This will gear us to move close to our long-term target of a 70:30 mix of Fines: Lumps and eventually would fetch us higher average realisations as well.”
Mr. Mukesh Gupta-Chairman said: “Company H1FY23 performance is a testimony of hard work and dedication the team has exhibited in challenging operational scenarios. The company's overall performance is also an exhibit of future performance to come. The company has been progressing well on the exploration of final proven reserves and expansion of its iron ore mining capacities to 10 mnt p.a. We remain committed to the overall growth of the company and judicious use of iron ore as well. Our upcoming 72000 tonnes of sponge iron capacities would lead to optimal utilisation of our captive ore. All these measures are calibrated for a sustained journey for all the stakeholders”