Sarthak Metals Limited announced its H1FY22 Results

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 half-year ended September 30th, 2021.

Standalone Financial Highlights for half-year ended September 30th, 2021:

- Revenue from Operations stood at an all-time high of ₹ 203.1 Crore in H1FY22, an increase of 107% YoY and 65% sequentially.

- EBITDA (excluding Other Incomes) stood at ₹ 14.9 Crores in H1FY22, an increase of 259% YoY and 34% sequentially.

- EBITDA Margins stood at 7.3% in H1FY22, compared to 9.1% in H2FY21 and 4.2% in H1FY21.

- Net Profit stood at an all-time high of ₹ 12.2 Crores in H1FY22, an increase of 826% YoY and 84% sequentially.

Commenting on the H1FY22 performance, Sanjay Shah, Executive Director, said: "The Company's overall operational and financial performance for the first half of FY22 has been more than satisfactory. The Company recorded great results on all fronts. Revenue from Operations for H1FY22 is nearly equal to the FY21 benchmark. This increment has been supported by a mix of both volume and realization growth, on a YoY basis as well as sequentially. On a YoY basis, the Company recorded a 75% increase in volumes in Cored Wire, and 55% growth in the Aluminium Flipping Coil division, respectively. To add to this, realizations were up by 30% and 50% in Cored Wire and Aluminium Flipping Coil division respectively, attributable to higher commodity prices.

It is important to note that this performance was on the backdrop of the 2nd wave of COVID-19 in India and the related supply-chain disruptions. Nevertheless, the domestic scenario for the Indian steel industry, our primary customer base, looks very positive. We expect this momentum to continue on the back of record orders in hand, increasing capacities and Sarthak Metal's reputation as a consistent & reliable supplier.

I would also like to mention that the Company is in the process of migrating to the mainboard, and soon enough, we will be listed on the mainboard."

Source : Equity Bulls

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SarthakMetals H1FY22 ResultUpdate