Stock Report

Sarthak Metals Limited announces its Q1FY23 Results

Posted On : 2022-08-16 21:25:58( TIMEZONE : IST )

Sarthak Metals Limited announces its Q1FY23 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 quarter ended June 30th, 2022.

Standalone Financial Highlights for quarter ended June 30th, 2022:

- Revenue from Operations stood at an all-time high of ₹ 133.7 Crore in Q1FY23, an increase of 40% YoY and a decrease of 9% sequentially.

- EBITDA (excluding Other Income) stood at ₹ 10.9 Crores in Q1FY23, an increase of 7% YoY and a decrease of 8% sequentially.

- EBITDA Margins stood at 8.2% in Q1FY23, compared to 8.1% in Q4FY22 and 10.7% in Q1FY22.

- Net Profit stood at an all-time high of ₹ 8.6 Crores in Q1FY23, an increase of 24% YoY and 6% sequentially.

Commenting on the Q1FY23 performance, Sanjay Shah, Executive Director, said: "We are pleased to report a good start to the new financial year, with a decent Q1FY23. The Company reported a robust 40% increase in top-line YoY and a marginal drop of 9% QoQ. While April started out good, the Company witnessed a slower May and June primarily on account of the immediate effects of the Government of India's notification of an increase in export duty on various metals and minerals. Pick-up from the steel sector was a little slow during the quarter; however, things are progressing smoothly now.

Our Revenue from Operations stood at 133.7 Crores, compared to the high of 147.2 Crore in Q4FY22. Although volumes witnessed some compression during the Q1FY23, it was compensated by an increase in Realisations of Cored Wires. The Company did witness some decrease in the realisation of Aluminium Flipping Coil during the quarter. On the profitability front, our EBITDA margins remained strong at 8.2% in Q1FY23. Subsequently, PAT for the quarter stood at an all-time high of 8.6 Crores, an increase of 24% YoY and 6% QoQ.

Considering the external environment during the quarter, the Company's performance was good, which was aided by our team's hard work and strategic marketing efforts. We expect the immediate effects of export duty-related hiccups & subsequent fall in the steel prices to wear off in the coming quarter and the normalisation of demand in Q2FY22. Our outlook for the year remains solid on the back of incremental capacities coming up at Sarthak Metals during the current year, and the CAPEXs announced by our clients, some of India's most prominent steel players."

Shares of Sarthak Metals Ltd was last trading in BSE at Rs. 116.75 as compared to the previous close of Rs. 115.00. The total number of shares traded during the day was 2815 in over 55 trades.

The stock hit an intraday high of Rs. 119.00 and intraday low of 113.45. The net turnover during the day was Rs. 326245.00.

Source : Equity Bulls


SarthakMetals INE017W01010 Q1FY23 ResultUpdate