Shyam Metalics and Energy Limited — PPTs, 09-05-2025: Investor Presentation

1. Financial Highlights:

FY25 revenue grew 14.7% YoY to Rs. 15,138 Cr, with Operating EBITDA at Rs. 1,866 Cr (+18.8%) and EBITDA at Rs. 2,096 Cr (+21.2%). PAT declined 11.6% to Rs. 909 Cr, impacted by Mittal Corp acquisition adjustments. Q4 saw Rs. 4,139 Cr revenue (+14.8%), EBITDA Rs. 569 Cr (+15.6%), and PAT Rs. 220 Cr. EBITDA margin improved to ~12.4%. Balance sheet remains strong with Rs. 16,316 Cr assets, low gross debt of Rs. 779 Cr, conservative leverage, and sustained ROCE (~20%) and ROE (~15%).

2. Strategic Initiatives & Growth Drivers:

Focus on full value chain integration—from pellets to aluminium foil—with Rs. 10,025 Cr capex underway (66% incurred), mainly funded internally. Key projects include a new cold rolling mill (0.25 MTPA), aluminium flat rolled products, brownfield expansions, and renewable captive power aiming for ~706 MW capacity. Strategy emphasizes value-added products expected to make up 80% of revenue, while captive power use (~83% electricity consumption) supports low-cost and sustainable operations.

3. Business Developments:

Acquisition of Mittal Corp strengthens stainless steel portfolio with finished products like bright bars and wire rods. Entering aluminium and battery foil segments with Rs. 700 Cr expansions. Ongoing capacity upgrades at Ramsarup Industries for carbon steel wires and TMT bars. Rolled out new roofing sheets under ‘SEL Tiger’ brand and completed merger with Shyam Sel and Power Limited. Corporate office consolidated operations in Kolkata.

4. Market Position & Competitive Advantage:

6th largest integrated steel producer in India and a top ferro alloys manufacturer, with leading pellet and sponge iron capacities. Unique “Ore to Metal” fully integrated model, captive railway sidings, and large captive power capacity drive cost efficiencies and reliability. ‘SEL Tiger’ brand enjoys strong recognition in steel and aluminium. Combined 15.13 MTPA capacity and strategic locations support scale and raw material access. Maintains high credit rating (CRISIL AA) with focus on operational efficiency.

5. Investor Implications:

Strong product diversity, margin expansion, and disciplined capital deployment point to positive growth potential. Integration and scale support pricing power and cost control, while entry into value-added stainless steel and aluminium products offers margin upside. Cash positive position and robust balance sheet allow growth funding without extra leverage. Execution risk exists on large capex and business integration but overall poised for steady earnings growth backed by market leadership and focused expansions.