Sarthak Metals Limited announced its Q4 & FY22 Results

“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% on a year-on-year and 38% 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% in FY21 to 8.7% in FY22, supported by a healthy increase in realisations and some operating leverage leading to a 244% 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% 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.”