Shares of this sponge iron manufacturing company jumped 2 percent in Tuesday’s trading session after reporting an increase in revenue by 92 percent YoY. On a weekly timeframe, the Relative Strength Index (RSI) of the company’s share is ‘50’ indicating that the stock is trading in the ‘neutral’ zone.
With a market capitalization of Rs. 30,502 crores, Lloyds Metals and Energy Ltd started Tuesday’s trading session on a higher note at Rs. 637.95 compared to its previous close of Rs. 592.30. The shares hit a high of Rs. 637.95, gaining around 2 percent and are currently trading at Rs. 599 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced its quarterly results. Looking at the company’s recent financial statements, the revenue zoomed by around 74 percent from Rs. 1,091.31 crores during the September quarter to Rs. 1,910.53 crores during the December quarter. In addition, the company reported an increase in net profits by around 44 percent from Rs. 231.43 crores to Rs. 331.69 crores during the same period.
Comparing these metrics on a YoY basis, the revenue magnified by around 92 percent from Rs. 999.62 crores during Q3FY23 to Rs. 1,910.53 crores in Q3FY24.On the other hand, the net profits zoomed by around 44 percent from Rs. 230.22 crores to 331.50 during the same timeframe.
Furthermore, during the reporting quater, the DRI segment reported the highest-ever quarterly production at 81,581, higher by 35 percent YoY. The new DRI facility of the company at Konsari led to higher production.
Moreover, earlier the company had planned expansion into value-added products i.e. billets, thermo-mechanically treated (TMT) steel bars, and wire rods as well as a power plant with a total CAPEX of Rs. 1200 crores.
Previously, The company had entered into a joint venture with Thriveni Earthmovers Pvt Ltd for its mining operations at its leased mine in Surjagarh, Maharashtra. The target of this JV is to restart and ramp up mining operations to 1 MT in 12 months and up to 3 MT (rated capacity of the mine) in approx 3 years.
Headquartered in Mumbai, Lloyds Metals and Energy Ltd was incorporated in 1977. They are in the business of manufacturing Sponge Iron, Power generation and mining activities.
Written By Vaibhav Patil
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