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Kolkata, Feb 14
Shyam Metalics and Energy Limited (SMEL) registered 89 per cent drop in standalone net profit at ₹24 crore for the quarter ended December 31, 2022, as against ₹210 crore same period last year.
Revenue from operations on standalone basis was up by nearly 41 per cent at ₹1,601 crore during the quarter as against ₹1,133 crore last year.
The EBITDA margin was down at 7.6 per cent during the quarter under consideration as against 24.2 per cent last year.
According to Brij Bhushan Agarwal, Vice Chairman & Managing Director, SMEL, the company is entering a new segment of colour-coated sheets and is launching a greenfield project in Jamuria, West Bengal to set up a cold rolling mill. The total capex on the project is estimated to be close to ₹603 crore. This will enable the company to further diversify its revenue streams. There is a substantial demand for colour-coated sheets and it offers an avenue for growth.
“As we continue to scale up and diversify our business we intend to maintain the highest standards of transparency and governance. Hence, we have mandated KMPG Assurance and Consulting Services LLP as the internal auditor of the company for FY-24. Our joint venture to revive the recently acquired Ramsarup Industries is slated to pick-up pace this year. We have earmarked ₹747 crore to achieve our objectives in the targeted timeline for the first phase. We envisage that the two new businesses will be margin accretive and unlock further growth as we achieve scale. The team is optimistic that with improving business environment the company will see improved profitability,” Agarwal said in a press statement.
The company’s scrip closed at ₹292, down by 0.60 per cent on the BSE on Tuesday.
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