Kolkata, Sep 10 (UNI) Shyam Metalics and Energy Limited, a leading integrated metal manufacturing company in India, has projected exponential growth over the next five years.
The company anticipates substantial growth due to its pragmatic strategy of expanding up the value chain, broadening its product line, and introducing backward integration to improve efficiencies, according to a media statement here on Tuesday.
Also, Shyam Metalics' entry into the aluminum and stainless-steel segments marks a significant milestone, underscoring its execution capabilities and commitment to moving up the value chain.
With revenue rising at a CAGR of 24.7 per cent over the last five years, from ₹4,376 crore in FY20 to ₹13,195 crore in FY24, Shyam Metalics has demonstrated remarkable growth. EBITDA has grown substantially as well, rising to ₹1,569 crore in FY24 at a CAGR of 19.9 per cent.
Notably, the revenue from stainless steel and aluminium presently constitutes 4.5 per cent and 4 per cent of total sales, respectively, underscoring the success of the company's diversification efforts.
Looking ahead, Shyam Metalics has a bold vision for the next five years:
The company plans to increase 4.3 times, from 1.5 lakh tons to 6.5 lakh tons, with investments in both forward and backward greenfield facilities.
Shyam Metalics aims to expand its aluminium production by 1.8 times, from 24,000 tons annually to 42,000 tons per year, through strategic investments in greenfield facilities.
The company is expected to increase its total annual capacity in value-added products from 2 million tons to 3.56 million tons, and it is expected to grow 1.8 times in new product sectors such as colour-coated sheets, structural steel, and ductile iron pipes.
The company's power generation capacity is expected to increase from 386 MW to 706 MW, a 1.8-fold increase over the period.
The company has announced a total CAPEX of ₹10,025 crore since its IPO in 2021, with ₹4,948 crore already incurred by Q1 FY25. Significant capacity expansions in aluminium, stainless steel, carbon steel, and specialty alloys will be fueled by the remaining CAPEX, which will be distributed over the next three fiscal years.
With a goal revenue growth of ₹40,000 crore and an EBITDA of ₹4,500 crore by FY29, it is anticipated that this expansion will catapult Shyam Metalics to new heights.
Shyam Metalics continues to focus on sustainability and efficiency, sourcing 80 percent of its power from captive power plants, providing cost efficiency and a competitive edge in its industry.
With a disciplined approach to debt management and a strong cash surplus of ₹2,000 crore, the company is well-positioned to capitalize on future growth opportunities while maintaining its CRISIL AA credit rating.
As Shyam Metalics looks ahead, it continues committed to providing value to its stakeholders through continuing innovation, strategic expansions, and a focus on sustainable growth.
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