SHYAMCENT - Shyam Century

📊 NSE: SHYAMCENT 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 13:20

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations decreased 18.06% YoY to INR 11,314.61 Lakhs in FY25 from INR 13,809.30 Lakhs in FY24. Segmental split between Ferro Alloys and Power generation is not explicitly detailed in the P&L statement.

Profitability Margins

The company reported a net loss of approximately INR 930.84 Lakhs in FY25, a significant decline from a profit of INR 131.54 Lakhs in FY24. Net margin is approximately -8.2% for FY25. Operating margin (Operating Profit before Working Capital changes) was -9.5% (INR -1,075.25 Lakhs) compared to -2.3% in FY24.

EBITDA Margin

EBITDA margin (Operating Profit before Working Capital changes) is -9.5% for FY25, down from -2.3% in FY24. Core profitability has been severely impacted by high power and fuel costs, which represent 48.2% of revenue.

Capital Expenditure

Property, plant and equipment increased by INR 2.95 Cr, reaching INR 22.97 Cr as of March 31, 2025, compared to INR 20.02 Cr in the previous year.

Credit Rating & Borrowing

The company is rated based on standalone financials. Borrowing costs are relatively low with finance costs of INR 28.15 Lakhs on current borrowings of INR 3.51 Cr, implying an effective interest rate of approximately 8%.

⚙️ Operational Drivers

Raw Materials

Raw materials for Ferro Alloy production (specific names not listed) accounted for INR 39.02 Cr, representing 34.5% of total revenue in FY25.

Capacity Expansion

Current installed capacity for Ferro Alloys and Power generation is not specified in MT/MW. No specific expansion timeline is provided in the documents.

Raw Material Costs

Raw material costs were INR 39.02 Cr in FY25, a decrease of 18.6% YoY from INR 47.93 Cr, tracking the overall revenue decline.

Manufacturing Efficiency

Capacity utilization metrics are not disclosed; however, the company incurred a cash loss in FY25, indicating low operational efficiency relative to fixed costs.

Logistics & Distribution

Distribution and logistics costs are included within other expenses of INR 17.97 Cr (15.9% of revenue) but are not separately itemized.

📈 Strategic Growth

Expected Growth Rate

5.34%

Growth Strategy

The company is focusing on maintaining a debt-free status and improving working capital cycles, as evidenced by the reduction in debtor days to 27.1. Growth is tied to the manufacturing of Ferro Alloys and captive/external power generation, though recent performance shows a contraction in sales.

Products & Services

Ferro Alloys (used in steel manufacturing) and Power generation.

Brand Portfolio

Shyam Century Ferrous.

🌍 External Factors

Industry Trends

The Ferro Alloys industry is currently facing margin pressure due to high input costs and volatile demand, leading to the company's shift from profit to a loss of INR 9.70 Cr (PBT) in FY25.

Competitive Moat

The company lacks a strong brand moat, evidenced by its trading at 0.77 times book value (INR 7.99 BV vs INR 6.18 price). Its primary advantage is being 'almost debt free', providing some financial cushion during loss-making periods.

Macro Economic Sensitivity

Highly sensitive to industrial power tariffs and steel industry demand, which dictates Ferro Alloy pricing.

Consumer Behavior

Not applicable as the company serves industrial B2B markets (Steel manufacturers).

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to regulatory and tax assessments; management has identified pending litigations as a key audit matter due to the subjective nature of potential cash outflows.

Taxation Policy Impact

The company received a deferred tax credit of INR 39.19 Lakhs in FY25 due to reported losses.

Legal Contingencies

Pending legal, regulatory, and tax cases are disclosed under Note 42. Management considers the probability of loss remote and has not made provisions, though these could result in significant liabilities if outcomes are adverse.