Net profit rose 10.7% year-on-year to ₹68.2 crore, compared with ₹61.6 crore in the corresponding quarter last year. Revenue from operations increased 4.9% to ₹464.5 crore from ₹442.7 crore a year ago.
At the operating level, EBITDA grew 7.2% year-on-year to ₹91.3 crore, compared with ₹85.2 crore in the year-ago period. The EBITDA margin improved to 19.66% from 19.25%.
Shares of Kalyani Steels fell 3.32% to ₹852.95 after the earnings announcement on Friday.
Strong auto, export demand
The June-quarter performance comes against a backdrop of strong demand across Kalyani Steels’ key markets. In an interaction with CNBC-TV18 earlier in June, Managing Director RK Goyal said the company was seeing healthy order flows from the automobile sector and exports of auto components.
Goyal said demand conditions remained favourable, although the market was facing a shortage of material. The company has also been operating at elevated utilisation levels for several years.
“We are running at more than 100% capacity since more than one decade,” Goyal said.
Also Read: Kalyani Steels sees strong demand, plans capacity expansion amid rising costs
The sustained demand has also prompted Kalyani Steels to evaluate the next phase of capacity expansion. According to management, demand has remained strong not only from group companies but also from external customers and export markets.
Goyal, however, did not specify the size of the proposed investment or confirm whether the expansion plan had received board approval, saying greater clarity would emerge soon.
The company is part of the Kalyani Group and manufactures alloy and carbon steel products, with its products serving sectors including automobiles and engineering.
