20 Jul , 2021 By : Kanchan Joshi
Shyam Metalics and Energy on Tuesday reported its first quarter earnings in which the company reported a net profit of Rs458 crore, up around 470% from Rs80 crore in the same quarter last year. The company's total revenue from operations in Q1 rose to Rs2,465 crore as compared to Rs911.8 crore year-on-year (YoY).
''Shyam Metalics and Energy Q1FY21 results outperformed the estimates. The top-line grew by around 170% YoY, mainly due to strong volume growth of ~37% and improvement in realisation,'' Amarjeet Maurya of Angel Broking said.
On the operating front, the company reported margin improvement (OPM up by 1,120 bps YoY to 27.9%), primarily on account of lower costs during the quarter. ''The reported net profit grew on account of strong sales growth and operating performance. Currently we are positive on the stock,'' he added.
Shares of Shyam Metalics surged nearly 7?ter the earnings release to Rs459 per share on the BSE in Tuesday's deals. The Kolkata-based company is an integrated metal producer and has a diversified product mix such as, iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferro alloys. It has three manufacturing plants, one in Odisha (Sambalpur) and two in West Bengal (Jamuria and Mangalpur).
Shyam Metalics shares made its debut on the stock exchanges on June 24. The stock had listed last month at Rs367 apiece. The Rs900-crore initial public offer (IPO) of the company comprised a fresh equity of Rs657 crore and OFS (offer for sale) of Rs252 crore.
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