India: Sarda Energy & Minerals Billet Sales Climb 65% in Q1 FY19

Sarda Energy & Minerals Limited (SEML) – one of the major long steel producer based in central India has released its operational and financial performance for June quarter (Q1) FY’19.

SEML, is an end-to-end manufacturer of mild steel wire rod and HB. In the process, the company produces Iron ore pellets, sponge iron, steel billets, Ferro alloys, captive power, Wires rods and HB Wire.

Key Operational performance highlights:

1) Iron ore pellet production rises by 136% : Company’s Iron ore pellet production has significantly increased by 136% to 2,03,464 MT in Q1 FY’19 on Q-o-Q basis while down by 1% on Y-o-Y basis. Its pellet sales has rose by 159% to 1,50,519 MT on Q-o-Q and marginally up by 1% Y-o-Y.

2) Steel Billet sales rises by 65% : Company’s Steel Billet production has increased by 8% in Q1 FY’19 to 37,095 MT on Q-o-Q basis and up by 15% on Y-o-Y basis. It sales has also sharply increased by 65% to 6,161 MT on Q-o-Q basis and up by 10% on Y-o-Y.

3) Wire Rods: Company’s wire rod production has moved up marginally by 2% in Q1 FY’19 to 30,024 MT on Q-o-Q basis and up by 14% on Y-o-Y.

4) Ferro Alloys : Company’s ferro alloys production has increased by 8% to 38,714 in Q1 FY19 on Q-o-Q basis and up by 6% Y-o-Y. The company’s also claim that it major quantity of Ferro alloys is exported out of its total production.

Key Financial performance Highlights:

1) Revenue from Operation: On a standalone basis, company has reported revenue from operation of INR 442.31 crore in Q1 FY19 which has seen increased by 13% on Q-o-Q basis, while up by 16% on Y-o-Y basis.

On consolidated basis, its revenue has also increased by 5% to INR 623.61 crore on Q-o-Q basis, and up by 17% on Q-o-Q basis.

2) Net Profit: On a standalone basis, company’s has recorded net profit of INR 51.97 crore in Q1 FY19, decreased by 6% on Q-o-Q basis and falls by 15% on Y-o-Y basis.

On consolidated basis also, its net profit has decreased by 18% to INR 44.5 crore on Q-o-Q basis, and down by 17% on Y-o-Y basis on account of mark to market provision on investments and forex exposure to INR 22.79 crore.

Sarda Energy & Minerals ltd. (Production & Sales) :

Source: Company Website, SteelMint Research
Fig in MT