Sarthak Metals Limited announced its Q4 and FY22 results
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arthak Metals Limited, one of India's leading manufacturer of cored wires and aluminium flipping coils, that find application in the metallurgical industry, has announced its financial results for the quarter ended March 31, 2022. Revenue from Operations for Q4FY22 stood at Rs 147 Crores, EBITDA at Rs 12 Crores and PAT at Rs 8 Crores. The company has also announced 10 per cent dividend i.e. Rs 1 every share.
Standalone Financial Highlights for the quarter ended March 31, 2022
- Revenue from Operations stood at an all-time high of Rs 147.2 Crore in Q4FY22, an increase of 129 per cent YoY and 38 per cent sequentially.
- EBITDA (excluding Other Income) stood at Rs 11.9 Crores in Q4FY22, an increase of 127 per cent YoY and 9 per cent sequentially.
- EBITDA Margins stood at 8.1 per cent in Q4FY22, compared to 10.2 per cent in Q3FY22 and 8.1 per cent in Q4FY21.
- Net Profit stood at an all-time high of Rs 8.1 Crores in Q4FY22, an increase of 175 per cent YoY and 14 per cent sequentially.
Standalone Financial Highlights for year ended March 31, 2022
- Revenue from Operations stood at an all-time high of Rs 457.3 Crore in FY22, an increase of 106 per cent YoY.
- EBITDA (excluding Other Income) stood at Rs 39.8 Crores in FY22, an increase of 140 per cent YoY.
- EBITDA Margins stood at 8.7 per cent in FY22, compared to 7.5 per cent in FY21.
- Net Profit stood at an all-time high of Rs 27.5 Crores in FY22, an increase of 244 per cent YoY.
Commenting on the Q4FY22 performance, Sanjay Shah, Executive Director, said
"We are pleased to report a good set of numbers for Q4FY22, building on our last couple of quarters of sustained good operational and financial performance. The Company has reported its highest ever quarterly topline of INR 147.2 crores, delivering robust growth of 129 per cent on a year-on-year and 38 per cent on a sequential basis. On a full-year basis, the Company has more than doubled its previous year's topline at INR 457.3 crores for FY22. This performance has been supported by a convergence of two factors i.e. good demand from the steel sector and a significant increase in Sarthak Metals market share for the products categories it is present in. On the profitability front, EBITDA margins grew from 7.5 per cent in FY21 to 8.7 per cent in FY22, supported by a healthy increase in realisations and some operating leverage leading to a 244 per cent growth in PAT for FY22 at INR 27.5 crore.
Our outlook for the coming year remains robust, reinforced by the upcoming capacities and investments in the Indian steel industry. Our clients, some of India's most prominent steel players, are constantly looking for expansion opportunities. In line with current market demand and to further consolidate Sarthak's position in its industry, the Company is planning to expand its capacities. The Company is in the process of adding another furnace for aluminium flipping coils that will lead to capacity augmentation of up to 50 per cent of the current capacity, the same is expected to be commissioned in H1FY23.
Furthermore, an additional manufacturing line of cored wires is also on the cards for the coming year. To capitalise on opportunities beyond our existing product segments, your Company acquired a 5-acre plot next to our facility, that is reserved for a new strategic business opportunity that the Board of Directors and Senior Management are currently validating.
Given our robust financial performance and strengthened balance sheet position, we have announced a second and final dividend of Re 1 to our shareholders. The total dividend for the year will be Rs 2, subject to shareholder approval in the AGM. Your company looks forward to capitalize on the long-term opportunities offered by the Indian steel industry and the growing Indian economy."
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✔️ Sarthak Metals Limited announced its Q4 and FY22 results
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