Lloyds Metals And Energy Limited — PPTs, 25-04-2025: Investor Presentation

**Financial Highlights**

Lloyds Metals & Energy Ltd (LMEL) achieved a total income of ₹67,727 Mn for FY25, marking a 3% year-over-year increase, driven by improved iron ore realizations and record sponge production, despite stable iron ore volumes. The EBITDA rose by 13% to ₹20,046 Mn, with EBITDA margins reported at 29.60%. However, Q4 FY25 experienced declines in total income and EBITDA by 22.4% and 39.8%, respectively, largely due to lower dispatch volumes, which also affected fixed cost absorption.

**Strategic Initiatives and Growth Drivers**

The company is focused on expanding its mining capacity, targeting an increase from 10 MnT to 25 MnT through forthcoming environmental clearances. It has invested significantly in infrastructure, with ongoing projects including a 360kt DRI plant and a 4 MnT pellet plant, expected to enhance operational efficiency and lower costs.

**Business Developments**

LMEL's iron ore sales volumes totaled 10 MnT for FY25, alongside a realisation per tonne of ₹5,766, a 6% increase year-over-year. The DRI segment also contributed with sales of 308kt, although with muted realizations.

**Market Position and Competitive Advantage**

With a solid balance sheet and robust return ratios (RoCE of 26.4% and RoE of 22.7%), LMEL is well-positioned within the market, particularly following the acquisition of Thriveni’s MDO operations which is anticipated to lower costs and enhance shareholder returns.

**Investor Implications**

Despite recent quarterly challenges, LMEL’s strategic expansion and operational improvements offer a positive outlook for future growth. Investors should consider the potential for increased production capabilities and stronger market positioning as key drivers in the coming years.