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Lloyds Metals & Energy Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤3rd Feb 26

Summary : Lloyds Metals and Energy Limited reports strong Q3 2025 results, driven by strategic expansions, new acquisitions in Singapore and South Africa, and significant investments in a slurry pipeline and pellet plant capacity, despite an ongoing legal dispute with NTPC.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Q3 Dec 25: Cost of Materials Consumed (590.33 Cr), Mining, Royalty and Freight Expenses (1,536.13 Cr), Employees Benefit Expenses (105.58 Cr).
  2. Consolidated Q3 Dec 25: Cost of Materials Consumed (550.72 Cr), Mining, Royalty and Freight Expenses (1,595.62 Cr), Employees Benefit Expenses (411.51 Cr).
  3. Trade receivables include Rs. 277.84 Crores from NTPC for HPC wages reimbursement, subject to legal dispute.
  4. Standalone Q3 Dec 25: Mining (2,781.03 Cr), Steel and related value added products (1,549.17 Cr).
  5. Consolidated Q3 Dec 25: Mining (2,781.03 Cr), Steel and related value added products (1,549.17 Cr), MDO Operation and related services (2,198.22 Cr).
  6. Standalone Total Assets (Q3 Dec 25): 15,089.73 Cr.
  7. Standalone Total Liabilities (Q3 Dec 25): 5,316.04 Cr.
  8. Standalone Other Equity (Q3 Dec 25): 9,719.26 Cr.
  9. Consolidated Total Assets (Q3 Dec 25): 23,562.32 Cr.
  10. Consolidated Total Liabilities (Q3 Dec 25): 12,193.07 Cr.
  11. Consolidated Other Equity (Q3 Dec 25): 9,764.10 Cr.
  12. Wholly owned subsidiary in Maharashtra will be a related party.
  13. Promoter Mr. Balasubramanian Prabhakaran proposed as Director in the new WOS.
  14. Thriveni Transport and Logistics Private Limited ceased to be a subsidiary after share allotment.
  15. Acquisition of 49.99% stake in Thriveni Pellets Private Limited involved share swap.
  16. Both standalone and consolidated unaudited financial results are presented.
  17. Consolidated results include three subsidiaries and share of profit/loss from two associates.
  18. Consolidated revenue and profit are higher than standalone due to subsidiaries.

Corporate Overview

  1. India (Maharashtra for operations, pipeline).
  2. Singapore (investment platform for Asia, Papua New Guinea).
  3. South Africa (strategic hub for African operations).
  4. Dubai, UAE (Lloyds Global Resources FZCO subsidiary).
  5. Legal dispute with NTPC regarding HPC wages reimbursement.
  6. NTPC for HPC wages reimbursement (legal dispute).
  7. Mining of Iron Ore.
  8. Steel and related value added products.
  9. MDO Operation and related services.
  10. Skilling, leadership, entrepreneurship, employment-linked programs (new WOS).
  11. Investment, asset holding, trading, social development (Singapore, South Africa entities).
  12. Proactive and growth-oriented, focusing on strategic expansions.
  13. Confident in legal matters regarding receivables.
  14. Mining of Iron Ore.
  15. Steel and related value added products.
  16. MDO Operation and related services.
  17. Existing slurry pipeline: 10 MTPA, 50% utilized.
  18. Pellet Plant-1: 4 MTPA, 100% utilized.
  19. Pellet Plant-2: 4 MTPA, under construction.
  20. Incorporation of wholly owned subsidiary in Maharashtra (Rs. 2520 Cr).
  21. Second Slurry Pipeline Project (Rs. 8000 Cr).
  22. Acquisition of 95% equity in LARPL, Singapore (up to USD 5 million).
  23. Acquisition of 100% equity in TP Phoenix, South Africa (up to USD 1 million).
  24. Acquisition of 100% equity in Lloyds Global Resources South Africa (up to USD 1 million).
  25. Increase Pellet Plant-1 and Pellet Plant-2 capacity from 4 MTPA to 5 MTPA each (Rs. 1500 Cr each).

Risk Factors

  1. Ongoing legal dispute with NTPC.
  2. Large capital project execution risks.
  3. Integration challenges for new acquisitions.
  4. Regulatory approval delays for expansions.

Key Drivers

  1. Slurry pipeline project enhances logistics.
  2. Pellet plant capacity expansion boosts production.
  3. International acquisitions expand global footprint.
  4. New subsidiary diversifies into skill development.

Auditor’s Report

  1. Unqualified opinion for both Standalone and Consolidated Financial Results.
  2. Limited Review Report, not an audit opinion.
  3. Trade receivables of Rs. 481.76 Crores (Standalone) include Rs. 277.84 Crores from NTPC for HPC wages reimbursement, subject to legal dispute.
  4. Legal dispute with NTPC, civil suit filed, management believes claim will be decided in favor.

Board Commentary

  1. Mr. Ashit Patni appointed Chief Marketing Officer and Senior Managerial Personnel.
  2. New equity shares rank pari passu with existing shares for dividend rights.
  3. Civil suit filed against NTPC for HPC wages reimbursement.
  4. Conciliation process terminated with NTPC.
  5. Approval for Unaudited Financial Results.
  6. Approval for allotment of Equity Shares upon conversion of warrants.
  7. Approval for incorporation of wholly owned subsidiary in Maharashtra (Rs. 2520 Cr).
  8. Approval for Second Slurry Pipeline Project (Rs. 8000 Cr).
  9. Approval for acquisition of equity stake in LARPL, Singapore (up to USD 5 million).
  10. Approval for acquisition of equity stake in TP Phoenix and LGRSA, South Africa (up to USD 1 million each).
  11. Approval for increasing Pellet Plant capacities at Konsari (from 4 MTPA to 5 MTPA each, Rs. 1500 Cr each).
  12. Issued 60,000 non-convertible debentures for INR 600 Cr.

Corporate Governance

  1. Audit Committee reviewed financial results.
  2. Nomination and Remuneration Committee recommended SMP appointment.

Management Discussion & Analysis

Future Strategy

  1. Strengthening steel-making value chain.
  2. Efficient utilization of iron ore reserves.
  3. Value addition through forward integration.
  4. International expansion in mining and mineral resources.
  5. Diversification into skill development.

Operational Focus Areas

  1. Completing slurry pipeline project.
  2. Increasing pellet plant capacities.
  3. Integrating new international acquisitions.

Performance Drivers

  1. Strategic expansions and acquisitions.
  2. Enhanced logistics efficiency and cost competitiveness.
  3. Increased production capacity.

Risk Control Measures

  1. Pursuing legal recourse for NTPC dispute.
  2. Phased implementation of large projects.
  3. Financing through internal accruals and/or debt.

Critical Risks

  1. Legal dispute with NTPC over receivables.
  2. Execution risks for large capital projects (slurry pipeline, pellet plants).
  3. Integration risks for new subsidiaries/acquisitions.