Shyam Metalics gains on capacity expansion

Shyam Metalics and Energy rose 2.41% to Rs 858.80, following the commissioning of a new blast furnace and a sinter plant at its Jamuria facility in West Bengal.

The company invested Rs 600 crore in this expansion project, which is aimed at boosting its production capacity and meeting the rising demand for high-quality steel products. The new blast furnace, with a capacity of 0.77 million tonnes per annum (MTPA), is equipped with advanced technology to optimize steel production. This enhancement is anticipated to improve margins by approximately Rs 700/MTPA.

The company has also launched a sinter plant with a capacity of 1.11 MTPA to process iron ore fines. This will enhance operational efficiency and reduce production costs.

Brij Bhushan Agarwal, vice chairman & managing director of Shyam Metalics and Energy, stated, "At Shyam Metalics, we have always strived for effective and continuous growth plans. The new blast furnace and sinter facility will improve India's steel production capability. This development demonstrates our commitment to encouraging industrial growth and creating employment opportunities in the region."

Shyam Metalics is a leading Indian steel company focused on long steel products and ferro alloys. It's one of India's largest producers of ferro alloys and a major player in the sponge iron industry.

On a consolidated basis, net profit of Shyam Metalics & Energy rose 36.29% to Rs 278.14 crore on 8.36% rise in net sales to Rs 3611.61 crore in Q1 June 2024 over Q1 June 2023.

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