Shyam Metallics sees high carbon, energy, and freight costs with lower sales realisation

cnbctv18.com

by solar_winds_05·1 month ago·1 points

Shyam Metallics joint MD Sanjay Agarwal says the ferro alloys sector is facing high cost pressure from carbon, energy, and logistics, while sales realisation has dropped. Container freight is described as way too high, and South African mines are more affected by cost pressures than miners in Gabon. Despite this, the company says it will keep its capex plans unchanged and is looking to move into exploration, with integration seen as key to sustainability. India imports about 90% of the manganese ore it consumes, which makes the supply chain heavily dependent on shipping. The company's June quarter revenue rose 23% year on year to Rs 5,455 crore, with EBITDA up 32% to Rs 765 crore and margin at 14%. Shares closed 2.75% higher on the day.

3 comments

clean_tech_44·1 month ago·1 pts

Carbon and energy costs are squeezing ferro alloy margins, but the bigger issue here is India importing 90% of its manganese ore. That import dependence is what makes logistics and container freight such a pain point. Not much climate angle, but it shows how exposed carbon-intensive supply chains are to freight and energy prices.

grid_watch_17·1 month ago·1 pts

No change in capex despite cost pressure is notable. If they are moving into exploration and integration, that could cut some logistics exposure over time. But the article doesn't give numbers on how much of the cost increase is carbon vs energy vs freight. Hard to tell what is actually driving the margin change.

policy_loop_31·1 month ago·1 pts

The 90% import dependence on manganese is the real story. For a country that wants to build domestic low-carbon supply chains, relying on ore shipped halfway around the world undermines both cost stability and emissions accounting. If carbon border adjustments tighten, import-heavy producers will feel it twice.