Lloyds Metals Q3 Results: Profit Rises 18% to Rs 389 Crore Despite Revenue Decline
Lloyds Metals and Energy Ltd. has announced its financial results for the third quarter of fiscal year 2025 (Q3 FY25), reporting an 17.5% year-on-year increase in net profit despite a decline in revenue. The company's performance reflects the mixed trends within the metals and mining industry.
Financial Performance Overview
For the quarter ended December 31, 2024, Lloyds Metals and Energy reported a net profit of Rs 389 crore, up from Rs 331 crore in the same period last year. However, the company's revenue from operations decreased by 12.4% to Rs 1,675 crore, compared to Rs 1,912 crore in Q3 FY24.
Key Financial Highlights (Consolidated, YoY)
- Revenue: Decreased by 12.4% to Rs 1,675 crore from Rs 1,912 crore.
- EBITDA: Increased by 19.37% to Rs 536 crore from Rs 449 crore.
- EBITDA Margin: Expanded significantly by 851 basis points to 32% from 23.48%.
- Net Profit: Increased by 17.52% to Rs 389 crore from Rs 331 crore.
Segment-Wise Revenue Performance
The company experienced varied performance across its different segments:
- Mining: Revenue increased by 4.24% to Rs 1,474 crore from Rs 1,414 crore.
- Sponge Iron: Revenue declined by 29% to Rs 181 crore from Rs 255 crore.
- Power: Revenue decreased by 36% to Rs 25 crore from Rs 39 crore.
- Pellet Trading: Revenue saw a substantial decline of 80% to Rs 54 crore from Rs 267 crore.
Despite the overall revenue decline, Lloyds Metals and Energy managed to improve its profitability, driven by higher revenue from its mining segment and a significant expansion in EBITDA margin. The decline in revenue from sponge iron, power, and pellet trading segments highlights the challenges faced by these specific areas of the business.
Shares of Lloyds Metals and Energy closed 4.66% lower at Rs 1,234.20 on the National Stock Exchange, underperforming the benchmark Nifty 50, which advanced by 0.56%.
Lloyds Metals and Energy's Q3 FY25 results present a mixed picture, with increased profitability despite a decline in overall revenue. The company's performance underscores the importance of its mining segment and its ability to improve operational efficiency, as reflected in the expanded EBITDA margin.
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