India: Sarda Energy & Minerals Billet Output Falls in Q2 FY20

Sarda Energy & Minerals Limited (SEML) – one of the major steel producer in central India has recently released its operational and financial performance for the second quarter of FY’20, ending September’19.

Company’s steel billet production has come down by 15% in Q2 FY’20 to 43,334 MT on Q-o-Q basis, although it moved up by 12% on Y-o-Y basis. Billet sales decreased by 27% to 8,134 MT on Q-o-Q basis.

Key Operational performance highlights (Consolidated):

1) Iron ore Pellet: Company’s iron ore pellet production has remained stable at 1,62,218 MT in Q2 FY’20 on Y-o-Y basis, while it moved down by 18% on Q-o-Q compared to 1,98,887 MT in Q1 FY’20.

Its pellet sales have fallen by 25% Q-o-Q to 93,938MT in Q2 FY’20 and sharply down by 40% Y-o-Y.

2) Wire Rods: Company’s wire rod production has come down by 14% in Q2 FY’20 to 33,974 MT onQ-o-Q basis and up by 9% Y-o-Y.

Its sales decreased significantly by 17% to 28,775 MT on Q-o-Q and up by 11% Y-o-Y.

3) Ferro Alloys: Company’s Ferro alloys production has almost remained stable at 29,604 MT in Q2 FY’20 on Q-o-Q basis and down by 24% Y-o-Y.

In line with this, the company’s sales for ferro alloys grew by 8% Q-o-Q to 32,161 MT in Q2 FY’20, however plunged down by 18% on Y-o-Y basis.

Key Financial Performance Highlights:

1) Revenue from Operation: On a consolidated basis, company’s revenue from operation at INR 550.39 crore in Q2 FY’20 which has slightly come down by 1% on Q-o-Q basis.

2) PAT: On a consolidated basis, company has recorded profit after tax of INR 68.28 crore in Q2 FY’20, increased by 30% on Q-o-Q basis and up by 14.5% Y-o-Y.

Snapshot of Sarda Energy & Minerals Ltd

Qty in MT’s, Source – Company Reports, SteelMint