Shyam Metalics and Energy Q1 results: Net profit falls 43% to Rs 235 crore

Shyam Metalics and Energy Limited (SMEL) has posted a 43 per cent fall in consolidated net profit at Rs 235 crore in the April-June quarter of 2023-24, dragged by higher expenses.

It had posted a net profit of Rs 414 crore in the corresponding period of 2022-23, the company said in a regulatory filing on Thursday.

The total income, however, increased to Rs 3,339.84 crore from Rs 3,245.13 crore in the year-ago quarter.

Expenses soared to Rs 2,901.96 crore in the first quarter of FY24, as against Rs 2,616.60 crore a year ago.

In a statement, Brij Bhushan Agarwal, Vice Chairman & Managing Director of the company, said: "We are encouraged by the upward trajectory in sales of finished steel, with a robust 36 per cent growth in volumes year on year. The company is progressing as per the strategic roadmap envisaged. Shyam Metalics strives to stay ahead of the curve and will continue to pursue growth, profitability, and sustainability." 

He said the company's board has approved a capital expenditure plan of Rs 3,915 crore, "which will enable us to enhance our capacities further".

"Cost advantage will be retained even with capacity expansion as we will grow our captive power generation from 377 MW to 597 MW. Sustainability being our top priority, renewable energy portfolio be enhanced more than ten-fold, growing from existing 9.1 MW to 109.1 MW. As the favourable demand environment stays strong in India, we are energised and progressing towards a more enriched product mix and higher volumes, and consequently, a much stronger company in the coming years," Agarwal said.

Kolkata-based SMEL is a leading integrated metal producing company with special focus on long steel products and ferro alloys.

SMEL stock was trading at Rs 391.85 apiece on the BSE, 2.71 per cent lower from its previous close.