Shyam Metalics stainless steel volumes rise 19% in December, decline 10% in Q3 sequentially

Shares of Shyam Metalics and Energy Limited declined on Tuesday, January 6, as the firm reported its business update for December and the third quarter.

Its sales volumes increased 19.1% from the previous year and surged 44.1% from the previous month.

In its filing, the company said December stainless steel volumes rose to 9,393 tonnes, while average realisations increased 18.2% from the previous year to ₹1.45 lakh per tonne and were up 1.79% from the previous month, signalling both volume-led and price-led growth. On a sequential basis, however, Q3 stainless steel volumes declined 9.9%, even as realisations improved 8.4%.

Performance across other segments was mixed. Pellet sales volumes fell 1.95% from the previous year and 16.72% from the previous month in December to 85,413 tonne, though average realisations rose 5.5% annualy and 1.65% from the last month to ₹9,170 per tonne.

Among other value-added segments, speciality alloys delivered strong growth, with December volumes jumping 50.1% from last year and nearly 12% from the previous month, while realisations rose 3.1% YoY. On a quarterly basis, speciality alloy volumes increased 6%, though realisations softened 2.3% sequentially.

In carbon steel, December volumes declined 8% annually and realisations fell 4.4%, although volumes improved 9.3% from the previous month. For the quarter, carbon steel volumes were down 3.3% sequentially, with realisations lower by 3.0%. The CR coil and CR sheets segment continued to scale up, with December volumes surging over eight-fold annually, aided by the commissioning of the colour-coated plant at Jamuria; Q3 volumes rose 21.4% sequentially, while realisations remained largely stable.

In pig iron, December volumes rose 45.5% from last year, supported by the ramp-up of the blast furnace at Jamuria, though sales declined 35.4% from the previous month. On a quarterly basis, pig iron volumes fell 17.7% sequentially, while realisations slipped 1.9%. The HR tubes and pipes segment saw traction from a low base, with December volumes up 25.9% from the previous month and Q3 volumes jumping 81.1% sequentially, even as realisations were largely stable, rising 3.3% sequentially for the quarter.

Sponge iron volumes rose 19.5% annually and 17% from the previous month, while pig iron volumes increased 45.5% annually but fell sharply on a monthly basis.

The company said the divergent trends reflect product mix and market conditions, with stronger traction in value-added products such as stainless steel and speciality alloys, even as intermediate segments saw some pressure during the quarter.

Q2 Results:

Shyam Metalics reported 24% growth in its overall sales for the September quarter. However, higher raw material costs impacted its operational performance as well as profitability. Consolidated revenue for the quarter crossed ₹3,000 crore, while net profit fell over 70% compared to the same period last year.

EBITDA margin for the quarter fell 7.9% from over 25% in the year-ago period due to a 70% jump in other expenses from last year. Operating profit or EBITDA declined 61% year-on-year.

Following the Q3 update, shares of Shyam Metalics and Energy Limited were trading 1.27% down at ₹835.05 as of 11:19 am. The stock has gained 4.41% in the last one month.

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