Shyam Metalics and Energy Limited — PPTs, 09-06-2025: Investor Presentation

1. Financial Highlights:

Shyam Metalics reported FY25 revenue of $1,771.1 million, up 14.7% YoY. Operating EBITDA rose 18.8% to $218.3 million, and EBITDA increased 21.2% to $245.3 million. PAT declined 11.6% to $106.4 million, impacted by Mittal Corp acquisition adjustments. EBITDA margin improved slightly to 11.9%. Q4 revenue was $484.3 million (+14.8% YoY) with PAT stable at $25.8 million. The balance sheet remains solid with total assets of $1,908.9 million and equity of $1,234.7 million. Gross debt fell sharply to $62 million, resulting in a low net debt/EBITDA ratio, reflecting strong capital discipline.

2. Strategic Initiatives & Growth Drivers:

The company is setting up a greenfield cold rolling mill with $70.55 million capex to produce GI/GL coils and pre-painted galvanized sheets and launched four roofing sheet brands under “SEL Tiger.” So far, capex of $770.3 million has been incurred against a planned $1,172.9 million. Shyam Metalics focuses on backward and forward integration, expanding stainless steel and aluminum foil segments, supported by captive power plants covering 83% of power needs cost-effectively.

3. Business Developments:

Shyam Metalics completed the Mittal Corp acquisition to enter stainless steel and is expanding capacity. It plans $82 million investments in aluminum flat rolled products and battery foil plants. The company infused $80 million into Ramsarup Industries to boost carbon steel capacity and merged with Shyam Sel and Power Limited to realize operational synergies.

4. Market Position & Competitive Advantage:

The firm ranks 6th among integrated Indian steel producers with 15.13 MTPA capacity. Cost leadership is driven by captive power and strategic logistics access (rail sidings, proximity to ports). It maintains profitability in a cyclical sector and emphasizes high-return capital allocation. Leadership stands strong in ferro alloys, stainless steel flats, and aluminum foil, with value-added downstream products growing under the “SEL Tiger” brand.

5. Investor Implications:

Shyam Metalics offers positive growth potential through diversified product expansion, efficient capital use, and backward integration reducing costs. A robust balance sheet and steady cash flow limit execution risks. Expansion into value-added stainless steel and aluminum foils aligns with premium, green steel trends, supporting margin improvement. Investors should monitor capacity ramp-up and integration of acquisitions for performance delivery.