Pune, India, February 3, 2025 – Kalyani Steels Limited (KSL) has reported its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.
Key Financial Highlights (Standalone)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24(Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | ₹4,840.05 Mn | ₹4,921.04 Mn | ₹4,797.55 Mn | ₹14,375.73 Mn | ₹14,566.66 Mn | ₹19,594.92 Mn |
| Total Income | ₹4,964.41 Mn | ₹5,061.81 Mn | ₹4,919.97 Mn | ₹14,764.93 Mn | ₹14,904.33 Mn | ₹20,063.03 Mn |
| EBITDA (Pre-Exceptional Items) | ₹957.89 Mn | ₹1,054.02 Mn | ₹1,078.76 Mn | ₹3,332.15 Mn | ₹3,688.60 Mn | NA |
| Profit Before Tax (PBT) | ₹745.23 Mn | ₹894.98 Mn | ₹876.10 Mn | ₹2,355.79 Mn | ₹2,482.88 Mn | ₹3,326.76 Mn |
| Profit After Tax (PAT) | ₹553.89 Mn | ₹667.88 Mn | ₹653.31 Mn | ₹1,737.51 Mn | ₹1,849.05 Mn | ₹2,474.55 Mn |
| EPS (₹5 Face Value) | ₹12.69 | ₹15.30 | ₹14.97 | ₹39.80 | ₹42.36 | ₹56.69 |
- Revenue from operations saw a 0.88% YoY growth but dipped 1.64% QoQ.
- PAT stood at ₹553.89 Mn, down 15.06% QoQ and 15.24% YoY.
- EPS declined to ₹12.69 in Q3 FY25 from ₹15.30 in Q2 FY25 and ₹14.97 in Q3 FY24.
Key Financial Highlights (Consolidated)
| Particulars | Q3 FY25 | Q2 FY25 | 9M FY25 | FY24 (Audited) |
|---|---|---|---|---|
| Revenue from Operations | ₹4,840.05 Mn | ₹4,921.04 Mn | ₹14,375.73 Mn | ₹19,594.92 Mn |
| Total Income | ₹4,974.15 Mn | ₹5,070.10 Mn | ₹14,791.45 Mn | ₹20,063.23 Mn |
| Profit Before Tax (PBT) | ₹754.95 Mn | ₹903.21 Mn | ₹2,382.21 Mn | ₹3,331.03 Mn |
| Profit After Tax (PAT) | ₹564.47 Mn | ₹673.84 Mn | ₹1,760.42 Mn | ₹2,487.85 Mn |
| EPS (₹5 Face Value) | ₹12.93 | ₹15.36 | ₹40.33 | ₹56.99 |
Segment Performance
- Manufacturing expenses stood at ₹656.28 Mn in Q3 FY25, a decrease from ₹789.88 Mn in Q3 FY24.
- Raw material costs accounted for ₹2,542.67 Mn, reflecting stability in sourcing.
- Finance costs slightly increased to ₹55.23 Mn from ₹48.13 Mn in Q2 FY25.
- The company continues to operate as a single-segment entity in forging and engineering-quality carbon and alloy steels.
Corporate Announcements & Strategic Updates
- Audit Review: The statutory auditors, Kirtane & Pandit LLP, conducted a limited review, confirming no material misstatements.
- Subsidiary Performance: DGM Realties Private Limited, a 99.66% owned subsidiary, contributed ₹9.74 Mn in total income and ₹12.73 Mn in net profit in Q3 FY25.
- Joint Operations: KSL's share in Hospet Steels Limited resulted in proportionate expenditure of ₹134 Mn in Q3 FY25.
Management Commentary
R.K. Goyal, Managing Director of Kalyani Steels, stated:Strategic Outlook & Market Positioning
- Cost Rationalization Measures: The company has managed expenses effectively, keeping raw material costs stable.
- Growth Outlook: The demand for high-quality alloy steels in the automobile, engineering, and infrastructure sectors remains robust.
- Dividend & Shareholder Returns: With stable earnings and strong cash flow, the company remains committed to delivering shareholder value.
Conclusion
Kalyani Steels delivered stable performance in Q3 FY25 amid industry headwinds. While YoY profit margins declined slightly, the company's strategic focus on operational efficiency and expansion into high-growth segments positions it well for sustained long-term growth.Stock Market Implication: With a consistent earnings trajectory, Kalyani Steels remains a strong player in the specialty steel market, making it an attractive prospect for long-term investors.