Lloyds Metals and Energy Ltd (LLOYDSME) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Lloyds Metals and Energy Q2 and H1 FY '27 earnings conference call hosted by Anand Rathi Share and Stock Brokers Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Parthiv Jhonsa from Anand Rathi. Thank you and over to you, sir.
Parthiv Jhonsa (Anand Rathi Share and Stock Brokers Limited): Thank you, Danish. Good afternoon, everyone and thank you for joining us today. Before we start the call, would like to wish the management of Lloyds Metals and Energy and everyone who has joined this call a happy Diwali in advance. We at Anand Rathi are pleased to host Lloyds Metals and Energy Q2 and H1 FY '27 earnings conference call. From the management, we have with us today Mr. Rajesh Gupta, Managing Director, Mr. Riyaz Shaikh, Director Finance and CFO, Mr.
Moderator: I'm sorry to interrupt you, Parthiv, but your voice is breaking.
Parthiv Jhonsa (Anand Rathi Share and Stock Brokers Limited): From the management, we have with us today Mr. Rajesh Gupta, Managing Director, Mr. Riyaz Shaikh, Director Finance and CFO, Mr. S.K. Naredi, Director of Finance from Triveni, and Mr. Himaan Gaur, Director, International Strategy and Operations. I would like to invite Mr. Rajesh Gupta for his opening remarks which would then be followed by question and answer session. Thank you and over to you, sir.
Rajesh Gupta (Lloyds Metals and Energy Ltd): Good evening, everyone and a warm welcome and happy Diwali for the coming week. Thank you, Parthiv and Anand
Rajesh Gupta (Lloyds Metals and Energy Ltd): and Rajiv team for hosting this call today. I'm pleased to share that the first half of FY 27 has been the best H1 in the company's history. Record revenue, record EBITDA and record PAT on both a stand-alone and a consolidated basis with the best ever H1 margin. Riyadh will take through the numbers in detail, so rather than dwell on this quarter alone, I would like to use my time to talk about something I feel more strongly about, where this company is headed and why I believe the best of Lloyds is still ahead of us. What we're building is a fully integrated ecosystem from the ore in the ground to finished steel, from the mines of Gadchiroli to the critical mineral belts of the world. Let me walk you through the pieces. It begins with our original resource base, that is the Surjagarh mine, which will give us iron ore for the next few decades and we continue to scale it responsibly with a green and increasingly electrified mining fleet. But the real transformation is going to be our BHQ beneficiation initiative. BHQ, which are Banded Hematite Quartz or Quartzite or low-grade ore was treated as a waste by most of the mines in India. We are building one of the largest beneficiation platforms in the world to convert this very material into a high-quality competitive feedstock. This gives us a raw material advantage that very few anywhere in the world will be able to replicate. And it is the foundation on which our low-cost, low-carbon steel ambition rests. The second pillar is logistics. Our slurry pipeline is quietly becoming one of our biggest competitive advantages, as we can see. The first pipeline is already running at full capacity and has structurally lowered our freight costs for iron ore. And we are now extending this to much longer and larger pipeline network, which will carry our beneficiated material over long distances, eliminating the movement of fine ore by truck almost entirely. The cost and carbon advantage of moving millions of tons by pipeline instead of road is enormous and it'll only be compounded as the volumes grow. I want to touch base on our value-added products, which have been the cornerstone. On pellets, both our plants of 4 million ton each capacity are running in excess of their rated capacity and we're debottlenecking towards higher output while adding a third pellet plant as well. We remain among the most competitive and largest merchant pellet producer in the country. And then comes steel. Are the next big leg of our value creation journey, 1.2 million ton integrated steel plant producing wire rod is progressing well and moving steadily towards commissioning. The next part of the story that I'm probably most excited about is copper and mineral copper and critical minerals like cobalt. Through our Chemaf operations in the DRC where we are a shareholder with an American company, we are building two integrated copper and cobalt complexes at Etoile and Mutoshi. They come with a fully captive ore, integrated captive sulphuric acid, and plants located right next to the mines. At full potential, these operations will produce 74,000 tons of copper and 20,000 tons of cobalt a year. Suria Mines is being repositioned for a lower-cost restart as we secure captive higher grade ore. These are, there are geopolitical headwinds, and we're addressing the near term cost challenges, but the long-term logic, captive ore and in-house mining through Thriveni expertise, remains compelling. Looking ahead, our partnership at Panguna gives us access to one of the greatest, world's greatest untapped copper source, an asset that at its peak produced around 175,000 tons of copper every year. We're still in early days here, but we are going ahead in the Lloyds way, community first with landowners and local communities as long-term partners. Putting simply, copper is transforming Lloyds from a domestic iron ore company, transitioning to steel and then, finally, a relevant player in the minerals that the world needs most for its energy transition. Now, about Thriveni, none of this would have been possible without Thriveni. Thriveni has become a diversified pan-India mine developer and operator spanning iron ore, coal, manganese and now gold and is scaling rapidly across Orissa. And beyond this, the operation gives us premium view of happenings in the metal space and a ready of course will speak to
Rajesh Gupta (Lloyds Metals and Energy Ltd): this in details. But the tra- trajectory and the breadth of the platform it has built remains very strong. I want to leave you with one thought. The margins we're re- reporting today are not one-off. They're results of years of patient integrated building, captive ore, captive logistics, rising share of value-added products, and a disciplined cost control. And the pipeline that I've described: beneficiation, pipelines, pellets, steel, copper, power is des- designed captive power is designed to keep deepening that integration and keep compounding value over time. We are not chasing va- volume for its own sake. We're building a business that is structurally advantaged and built to last. Again on the behalf of entire Lloyds Metals and Triveni family, I would like to wish all of you, our investors, analysts, partners, and everybody's family a very happy and prosperous Diwali. With that, let me hand over to Riyaz who will run you through the financial performance.
Riyaz Shaikh (Lloyds Metals and Energy Ltd): Thank you Rajesh ji. Good evening everyone. Let me take you through our standalone financial performance for the second quarter and first half of FY27. The standalone financial performance: Revenue from operations for Q2 stood at four rupees 4,132 crores, up 62% year-on-year. For H1, revenue was 9,545 crores, a sharp 94% growth over last year. EBITDA for quarter two came in at rupees 1,538 crores, up 83% year-on-year and and for H1 at 3,658 crores, up 126% year-on-year. This growth was driven by higher iron ore EC limits, a faster-than-planned ramp-up of the pellet plant, and improved sponge iron volumes. PAT for quarter two was 1,112 crores, up 84% year-on-year and for H1 was 2,639 crores, up 113% year-on-year. The right lens is the year-on-year growth and the H1 picture, both of which are very strong. I want to dwell on margins, because this remain the real story. Our H1 EBITDA margin came in at 38.33%, the best half-year margin the company has ever reported and and an expansion of 542 basis points year-on-year. Our quarter two margin stood at 37.22%, up 419 basis points year-on-year. Three factors are driving this. First, the commissioning of the slurry pipeline lowered our logistics and freight costs on iron ore. Second, higher realisations across products strengthened the overall mix. And third, more structurally, a better product mix with a higher contribution from value-added products like pellet led to meaningful margin expansion. This shift is visible in our mix. Value-added products now contribute 61% of standalone revenue and 67% of EBIT in quarter two versus 43% and 49% a year ago. This is a structural rerating of the earnings base, not a cyclical spike. Now coming to the product-wise performance. Firstly, iron ore. Iron ore production was for quarter two was 3.95 million tonnes, up 15.5% year-on-year, with H1 production at 10 million tonnes, up 35% year-on-year. Sales were 2.12 million tonnes in quarter two and 7.59 million tonnes in H1. Realisations stood at around rupees 670 per tonne with an EBITDA of 2,082 rupees per tonne in quarter two and 2,239 for H1. Our monthly run rate remains upward of 2 million tonnes. To DRI and power. DRI sales volumes were 160.6 kt in quarter two and 343.1 kt in H1, up 81% and 104% year-on-year respectively. DRI DRI realisation stood at 31,040 per tonne in quarter two with an EBITDA of rupees 9,231 per tonne. Power volumes were up 82% in quarter two and 85% in H1 year-on-year. Pellets. Pellets production was 2.11 million tonnes in quarter two and 3.81 million tonnes in H1, following the commissioning of our second pellet plant in May. Realisations stood at rupees 11,348 per tonne in quarter two and rupees 11,520 for H1, with EBITDA of 4,604 and 4,988 per tonne respectively. The slurry pipeline and captive ore, coupled with strong realisation, drove this robust robust pellet margins. Our sales mix was 71% domestic and 29% export. Capex and net debt: The company incurred capex of 6,052 crores in H1 FY27 as we continue to build out our downstream steel and beneficiation projects. Standalone net debt as on 30th September 2026 stood at 9
Riyaz Shaikh (Lloyds Metals and Energy Ltd): nine thousand three hundred and sixteen crores. Comfortable relative to the EBITDA the business is now generating even though an intensive CapEx cycle. Let me add one point at a consolidated level. Our consolidated net debt remains below 20,000 crores. A significant part of this pertains to the Shimao acquisition which we are actively working out to renegotiate on more favorable terms based on executed settlement agreements. Management estimates the entire Shimao debt can be settled at flow at around 250 to 300 million or less, which would bring a group net debt down meaningfully. We will keep investors informed as and when this materializes. To summarize, a record first half on revenue, EBITDA and PAT and our best ever H1 margins up 542 basis point year-on-year. With that, I'll hand over to Naredi ji for Triveni's performance.
S.K. Naredi (Thriveni): Good evening everyone and thank you Rajesh ji and Riyaz. For us at Triveni, growth has always been about disciplined execution and getting the fundamentals right quarter after quarter. Let me take you through the Triveni's performance for Q2 and H1 FY27. Financial review overall Revenue: Revenue from operation for H1 stood at 4608 crore, that is up 43% year-on-year, with Q2 revenue at 1936 crore, up 22% year-on-year. EBITDA for H1 came at 884 crore, up 85% year-on-year with margins at 19.18% an expansion of 436 basis point over the last year. Cash PAT for H1 was 558 crore, up 116% year-on-year with cash PAT margins improving 410 basis points to 12.11%. We are actively pursuing pass through of these higher input costs to our clients and those negotiations are currently underway. Having said that the half year picture remains healthy with H1 margins up for 460 436 basis point year-on-year and we remain focused on newer operations reach full scale utilization. Iron ore volumes including BHQ stood at 11.22 million tons in Q2 and 30.0 30.31 million tons in H1. Coal volumes from our Indian operations including overburden were 18.82 million cubic meters in Q2 and 44.84 million cubic meters in H1. Bauxite volume were 1.66 million cubic meters in Q2 and Gold was also 0.17 million tons in H1. Full scale mining of operations commenced at Western Hill and our FY27 equipment mobilization plan has been completed on schedule. We now have 88 electric equipments unit operational at the mines and a further 20 at the re at the railway siding. We have also mobilized 14 mobile crushers and 26 heavy earthmoving equipment for BHQ crushing and are mobilizing higher capacity equipment including EH 5000 ultra class dumpers and large excavators to support the enhanced production. A 100-ton diesel dumper has already been converted to LNG hybrid operation as we build our green field fleet. Now Odisha coal and gold: In Odisha the operations commenced at Tata Joda West Manganese Mines, also production at DC Jain Dalpahar Mines which commenced in October this year and operations are expected to begin shortly at a few of other Tata Mines, namely Tata Joda West Iron and Manganese Ore Mines, Vijay-II Iron Ore Mines, Tata Tiringpahar Iron and Manganese Mines, Bamebari Iron Ore and Manganese Mines and Khondbond Manganese Mines. On the coal side at PB Northwest, we have successfully commissioned and operationalized both streams of Coal Handling Plant and we have also completed the rehabilitation and resettlement of three major villages during this quarter. On gold, the mining plan for the company which was erstwhile known as Geomysore India Private Limited, the name of which has been changed to Triveni Lloyds Swarnagiri Private Limited, has been approved for opencast and underground operations for 1.5 million tonnes per annum with a processing capacity of 1.5 million tonnes per annum. Here Triveni is undertaking mining operations exploration as well as processing plant operations. So, the outlook as Triveni's focus remains very clear. Scale responsibly, execute efficiently and protect margins through productivity and cost optimization. The pipeline into the second-half across Gadchiroli, Odisha, and Coal is strong, and we are confident of sustaining both
S.K. Naredi (Thriveni): growth and profitability. Thank you, and wishing you all a very, very happy Diwali. Thank you.
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