Shyam Metalics Sees 90% Growth in Stainless Steel Production for September 2024

Shyam Metalics and Energy Ltd, one of India's key integrated metal producers, has achieved a remarkable milestone by increasing its stainless steel production by 90% year-on-year. In September 2024, the company produced 8,175 metric tonnes (MT) of stainless steel, up significantly from 4,304 MT in the same month of 2023. This tremendous growth highlights Shyam Metalics’ ongoing commitment to expanding its capacity and meeting the rising demand in the market.

In addition to stainless steel, the company's performance in other sectors has also been strong. Its aluminium foil production surged by 79% year-on-year, reaching 1,975 MT in September 2024. The average realisation for this segment also improved, rising by 10% compared to the previous year. This boost in production and realisation reflects Shyam Metalics' ability to scale its operations efficiently while responding to market dynamics.

Another standout performance came from the speciality alloys division, where production rose by 12% year-on-year to 15,257 MT. The company continues to solidify its position in this growing segment, with the average realisation increasing by 4% year-on-year, showing consistent gains in both volume and profitability.

Despite these impressive numbers, the carbon steel segment faced a slight challenge. Although production grew by 49% year-on-year, reaching 1,37,513 MT in September 2024, the average realisation decreased by 13%. This decline in realisation may reflect market pricing pressures, but Shyam Metalics’ continued production growth in this area signifies its determination to overcome short-term hurdles.

Sponge iron production also saw a substantial 29% increase, reaching 85,098 MT in September 2024, compared to 65,783 MT in the same period last year. However, the average realisation for sponge iron dropped by 19%, another indication of fluctuating market conditions. Despite this, Shyam Metalics remains a leader in the sponge iron sector, ranking among the top four producers in India based on production capacity.

Pellet production experienced an 11% increase year-on-year, with a total output of 91,794 MT in September 2024. However, like other segments, the average realisation for pellet production fell, declining by 14% compared to the previous year. These fluctuations in realisation across several product categories highlight the challenges that metal producers face in managing costs and pricing strategies in a dynamic market.

As an integrated metal producer, Shyam Metalics has focused on long steel products and ferro alloys. The company has established itself as a leading producer of ferro alloys and ranks among the top players in India’s pellet production capacity. These strengths, combined with its continued growth across various production segments, reinforce Shyam Metalics’ position as a key player in India's metal industry.

In terms of financial performance, Shyam Metalics has also delivered impressive results. For the first quarter of FY25, the company reported a consolidated net profit of ₹276.14 crore, reflecting a significant 35.31% increase from the ₹204.08 crore earned in the same period last year. Revenue from operations also saw healthy growth, rising by 8.36% year-on-year to ₹3,611.61 crore for the quarter ending June 30, 2024. These financial achievements demonstrate the company’s resilience and ability to adapt to changing market conditions.

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Although shares of Shyam Metalics closed 0.81% lower at ₹892.20 on the BSE on the latest trading day, the company's long-term outlook remains positive. With continued growth in production and a strong presence across various metal segments, Shyam Metalics is well-positioned to capitalize on future opportunities in India’s evolving metal industry.