In Thursday’s trading session, shares of one of the leading metal stocks, engaged in the manufacturing and processing of a wide range of industrial products, jumped by up to 7% following an operational update and the announcement of gifting shares worth Rs. 1,000 crores to workers at Rs. 4 per share
Price action
With a market capitalization of Rs. 66,091 crores on Thursday, the shares of Lloyds Metals & Energy Limited rose by 6.7 percent making a high of Rs. 1,350 per share compared to its previous closing price of Rs. 1,263 per share.
What Happened
Lloyds Metals & Energy Limited specialized in the manufacturing of steel products, such as sponge iron, billets, and ferro alloys and more, which are integral to a variety of industries.
Lloyds Metals & Energy Limited has reported impressive results for the first nine months of FY25, achieving a record iron ore production of 8.6 million tonnes, a 5 percent year-on-year increase, and the Direct Reduced Iron (DRI) production reached 238,433 tonnes, reflecting a strong 22 percent YoY growth. It saw particularly strong performance in December, with its DRI units operating at nearly full capacity.
The workers at Lloyds Metals and Energy Limited (LMEL) received company shares as a special gift, valued at Rs 1,000 crore based on the current market price and allocated shares to around 6,000 employees, 80 percent of whom are mine and plant workers. The shares, worth over Rs 1,260, were provided to the workers at a nominal value of Rs 4 each.
About the company
Lloyds Metals and Energy Limited is a prominent Indian company engaged in the manufacturing and processing of a wide range of industrial products, primarily specializing in the production of metals and energy solutions. With a strong presence in the steel industry, the company excels in the production of high-quality steel billets, sponge iron, and other metal products, catering to both domestic and international markets.
Lloyds Metals is also heavily invested in energy production and operates several captive power plants, providing a reliable and cost-efficient energy supply to its manufacturing units. This helps the company optimize its operations, reduce energy costs, and maintain consistent production timelines.
Revenue Breakup FY23-24
In FY 2023-24, Lloyds Metals and Energy Limited’s revenue break-up showed strong performance across various sectors. Mining led with Rs 5,283 crores (80.36%), followed by sponge iron at Rs 827.48 crores (12.59%), pellet trading at Rs 346.08 crores (5.26%), and power generation at Rs 117.82 crores (1.79%).
Financials
The company’s revenue rose by 32 percent from Rs 1,111.23 crore to Rs 1,469.8 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 231.25 crores to Rs 301.32 crore during the same period.
Key Financial ratios
Lloyds Metals and Energy Limited has an impressive Return on Equity (RoE) of 25.36 percent and a Return on Capital Employed (RoCE) of 34.85 percent. Furthermore, the company’s debt-to-equity ratio is 0.01.
Written by Sridhar J
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