The company recorded 41% year on year volume growth in Ferro Products sales, 37% year on year growth in Sponge Iron sales, 30% year on year volume growth in Steel Billets and 28% year on year volume growth in Finished Steel. However, sales volume from Iron Pellets was lower by 9% year on year.
On full year basis, the company reported 104% jump in net profit to Rs 1,724.2 crore on a 65% rise in net sales to Rs 6,297.1 crore in the financial year ended 31 March 2022 over the financial year ended 31 March 2021.
Brij Bhushan Agarwal, vice chairman & managing director, said, “Even in the current scenario, we have not only held our margins, but also seen a healthy expansion on a full year basis. On a sequential quarter basis, the decline has been modest.
In addition to higher volumes, we were able to also deliver improved net realizations. Our performance was broadbased, with all our product segments across the spectrum- starting from pellets, intermediate products like billets and sponge iron, finished steel in the form of TMT, wire rods, angles, channels and a wide variety of Ferro products. The integrated nature of our production facilities result in better control of our operations enabling us to improve operating margins as we focus on the quality, thus creating multiple points of sale across the value chain.
In the current upcycle in the steel industry, driven by the infrastructure spend, we expect the strong demand for our products to continue.”
The board recommends a final dividend of Rs 2.70 per equity share for the financial year ended 31 March 2022.
Shyam Metalics and Energy (SMEL) is an integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.
Shares of Shyam Metalics and Energy were trading 4.23% lower at Rs 327.55 on the BSE.
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