Iron & Steel/Intermediate Products company Lloyds Metals & Energy announced Q2FY24 & H1FY24 results:
Financial Highlights:
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In H1FY24, the company reported revenue of Rs 30,886 million, marking an impressive 100% YoY increase. Q2FY24 revenue also saw substantial growth, up by 62% YoY. This robust performance was primarily driven by higher iron ore volumes.
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EBITDA for H1FY24 reached Rs 8,540 million, indicating a notable 92% YoY increase. EBITDA for Q2FY24 also witnessed substantial growth, up by 81% YoY.
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The profit for H1FY24 increased by 56% YoY, and the profit for Q2FY24 also recorded a significant growth of 62% YoY.
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Expansion Approval: In Q2FY24, the company's board approved an expansion of steel production capacity from the initially planned 0.5 million tonnes to 1.2 million tonnes. The company found that installing a 1.2 million tonne steel plant would be more economical than the previous plan of 0.5 million tonnes. This expansion is expected to proceed without significant delays in permissions or timing.
Mining:
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Dispatch volumes in mining reached 5.2 million tonnes in H1FY24, representing a remarkable 115% YoY increase. Dispatch volumes for Q2FY24 were at 2.0 million tonnes, demonstrating a higher YoY growth rate.
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The realization in Q2FY24 increased by 22% YoY but decreased by 13% QoQ.
DRI & Power:
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DRI and Power segments reported steady performance for H1FY24.
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Revenue from DRI & Power in H1FY24 increased by 11% YoY. DRI production saw a 23% increase, and power production increased by 53% YoY for H1FY24.
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Realization for DRI and power remained soft both on a YoY and QoQ basis.
Commenting on overall performance, Rajesh Gupta– Managing Director, said, “Despite Q2FY24 being a traditionally softer quarter for mining due to the monsoon season, Lloyds Metals has defied expectations. Encouragingly, we saw improved realisations and reported better EBITDA per tonne on iron ore than the previous year. EBITDA margins for ore remained flat QoQ, even in the face of lower production, which is a positive outcome. Our sponge production for H1FY24 was strong, and although a routine shutdown in Q2FY24 impacted QoQ production, our sponge margins remained consistent. Regarding new developments, we have embarked on seed marketing of pellets from Goa for exports, forming a strategic partnership with MRPL. This aligns seamlessly with our growth strategy, enhances our market presence, and optimises operations for increased profitability. Lloyds Metals' commitment to expansion has been commendable. Our execution capabilities shone through as we completed our 70k DRI plant in 13 months from environmental clearance. This plant is a testament to our dedication to the development of Gadchiroli and is the first of its kind in the region. Our progress in steel-making is equally promising, and I am buoyant about the prospects of our company. Lloyds Metals remains steadfast in ensuring long-term value for our stakeholders.”
Further Commenting on the Company’s performance, Prabhakaran – Managing Director, said, “Both production and dispatches have been impressive for the half-year ending in September 2023. Lloyds Metals is unwavering in our commitment to developing the Gadchiroli region, leaving no stone unturned in our pursuit. Our vision is aligned with the aspiration of making Gadchiroli the next steel hub of India, and we are making substantial headway toward that goal. We believe in holistic development, emphasising the region's well-being, employment, and environmental sustainability. At Lloyds Metals, we prioritise our stakeholders, employees, and all those associated with the company's growth. We are dedicated to building enduring relationships, ensuring that everyone remains connected with our journey for the long term.”