Sarthak Metals logs revenue of Rs107 crore for Q3FY22, PAT stood at Rs7 crore

15 Feb 2022 , 09:16 AM

Sarthak 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 December 31, 2021.

Standalone Financial Highlights for quarter ended December 31, 2021:

• Revenue from Operations stood at an all-time high of Rs106.8 crore in Q3FY22, an increase of 81% yoy and decline of 1% sequentially.
• EBITDA (excluding Other Incomes) stood at Rs10.8 crore in Q3FY22, an increase of 75% yoy and 42% sequentially.
• EBITDA Margins stood at 10.2% in Q3FY22, compared to 10.5% in Q3FY21 and 7.1% in Q2FY22.
• Net Profit stood at an all-time high of Rs7.1 crore in Q3FY22, an increase of 90% yoy and 44% sequentially.

Commenting on the Q3FY22 performance, Sanjay Shah, Executive Director, said, “We are pleased to share that Sarthak Metals has maintained its growth trajectory and has delivered a robust performance, at par with the previous quarters. Our Revenue from Operations for Q3FY22 stood at Rs106.8 crore as compared to Rs59.1 crore in corresponding Q3FY21, a growth of 81% on a yoy basis.

On the profitability front, our EBITDA margins grew from 7.1% in Q2FY22 to 10.2% in Q3FY22. The robust 9MFY22 performance of your company all but guarantees a strengthened position as a market leader in its industry. With such performance being delivered quarter on quarter, we are certain that we will end this year on a firm footing for future growth.

This performance is on the backdrop of a solid industry outlook and strong tailwinds. Our clients, some of the largest steel players in India, are on a constant lookout for expansion opportunities, as India eyes to become an export hub for the steel industry in the coming decade. Union Budget affirms this assertion by prioritizing investments and spending in the infrastructure sector & special steels sector.

The government’s expenditure on special steel & infrastructure is a good macro setting for our business to grow and expand. We are well-positioned to corner a higher market share in our existing product categories, while harnessing new opportunities coming up in integrated applications both at vertical & horizontal levels. To capitalize on the new & existing opportunities, your company has recently acquired a 5-acre plot next to our facility, which will be utilized for a new strategic business opportunity that the Board and Management is currently validating.

As for our existing business, all efforts are being undertaken to run our manufacturing lines at peak productivity levels. We see headroom for growth, with debottlenecking and additional manufacturing lines within the same premises to cater to unfulfilled demand. We look forward to expanding our capacity of aluminium flipping coils by 50% in H1FY23 and are confident of a quick turnaround time for the future expansion of our existing product categories.

Lastly, we are happy to report that we had announced an interim dividend of Re 1 to our shareholders in Jan 2022, and we look forward to building on this further and sharing value with our stakeholders.”

On Tuesday early morning trade, Sarthak Metals was trading at Rs115.05 per piece lower by 5.07% on Sensex.