SMEL's Profits Take a Hit Despite Revenue Surge

Shyam Metalics and Energy Limited reported a 55% decline in net profit to Rs 216 crore for the second quarter of 2024, despite a revenue boost to Rs 3,634 crore, up 23.6% from the previous year. Profits were impacted by deferred tax adjustments and the acquisition of Mittal Corp Ltd.

Shyam Metalics and Energy Limited (SMEL) announced a significant 55% decline in net profit for Q2 2024, marking a drop to Rs 216 crore amidst revenue growth.

The company's revenue soared to Rs 3,634 crore, a 23.6% increase compared to the same period in 2023, as per their latest statement.

The profit dip is attributed to a Rs 328 crore adjustment for deferred tax assets and reversal of Income Tax provisions related to acquired losses from Mittal Corp Ltd. Notably, SMEL's EBITDA margin for this period was recorded at 11.2%.

(With inputs from agencies.)