Steel Exchange Q1 FY27 Results (NSE: STEELXIND)
Signal: Revenue declined
The read
Net profit surged 47% YoY on strong cost control and deleveraging, but revenue declined 11% and EPS growth lagged due to dilution from warrant conversions; the balance sheet strengthened with debt-equity falling to 0.27x.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹270.71 Cr | -11.23% | -5.91% |
| EBIT | ₹0 Cr | N/A | |
| Net profit | ₹15.03 Cr | 46.89% | |
| EPS | ₹0.12 | 33.33% | |
| EBIT margin | N/A |
P&L walk
Net profit surged 46.89% YoY despite 11% revenue decline, driven by cost control and lower finance costs; net profit margin expanded 300bps to 6%.
Key positives
- Net profit up 46.89% YoY to ₹15.03 Cr
- Net profit margin doubled to 6.00% from 3.00%
- Debt-equity ratio drastically reduced to 0.27x from 0.48x
- Net worth expanded to ₹672.76 Cr (₹67,276.25 Lakhs)
- Finance costs down 26% YoY to ₹13.98 Cr
Key concerns
- Revenue declined 11.23% YoY to ₹270.71 Cr, indicating potential volume or pricing pressure
- EPS growth (33.33%) lags PAT growth (46.89%) due to dilution from warrant conversions
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