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LMEL’s Q4 FY2024-25 net profit dropped by 27%.
Revenue saw a significant increase due to higher sales and improved pricing.
Long-term growth is supported by strategic investments and a focus on value-added products.
For Q4 FY2024-25, LMEL's net profit stood at ₹2,690.4 million, down from ₹3,690.4 million in the same quarter of the previous fiscal year. Despite this decline, the company's revenue surged to ₹15,542.9 million, a significant increase from ₹8,762.5 million reported in Q4 FY2023-24. This growth was primarily driven by higher sales volumes and improved product pricing in the iron ore segment.
Operational Highlights
LMEL achieved a record high in its direct reduced iron (DRI) production during the quarter, reflecting the company's ongoing efforts to enhance operational efficiency and capacity utilization. The company also reported a substantial increase in iron ore output, underscoring its strengthened position in the mining sector.
Strategic Developments
In line with its expansion strategy, LMEL has been investing in infrastructure to bolster its production capabilities. The company is in the process of setting up a 3-million-tonne-per-annum (MTPA) fully integrated steel plant in Konsari, Gadchiroli district, Maharashtra. Additionally, a 1.2 MTPA wire rod mill and a direct reduced iron (DRI) facility are under development in Ghughus, aiming to increase the company's total production capacity to 4.2 MTPA by FY2030-31.
Market Outlook
Despite the quarterly profit dip, LMEL remains optimistic about the future. The company's strategic investments in expanding its steel production capacity, coupled with its reliance on captive iron ore reserves, are expected to enhance long-term profitability. LMEL's focus on increasing the share of value-added products is also anticipated to contribute positively to its financial performance in the coming quarters.
As of the latest trading session, LMEL's stock price stood at ₹1,190.15, reflecting investor confidence in the company's growth prospects.
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