Sarthak Metals Ltd Q1FY25 Earnings Call

Sarthak Metals Ltd Conference Call for Q1FY25:

Date: 2nd September 2024
Time: 3:00 PM – 4:00 PM IST
Hosted by: Mr. Sagar Shah – Vice President and Part of the Promoter Group

Sarthak Metals Ltd is a prominent player in the manufacturing and sale of cored wires, ferro alloys, aluminium wire, and related products. However, the company’s financials for Q1FY25 reveal a series of setbacks that have raised concerns about its short-term and long-term outlook.

Financial Performance Overview:

1. Revenue Decline: SMLT reported revenues of ₹40.61 crores, which marks a sharp decline of 50.35% compared to the ₹81.80 crores generated in the same quarter of the previous year. This decrease in revenue is indicative of the tough market conditions and potential challenges in demand within the core sectors Sarthak Metals serves, particularly in the steel industry.
2. Expense Reduction: SMLT managed to reduce its total expenses to ₹39.64 crores for Q1FY25, down from ₹74.78 crores in Q1FY24, representing a 46.99% decrease. While this reduction in expenses partially offset the revenue decline, it also underscores the company’s efforts to tighten its operational efficiency in the face of declining sales.
3. Net Profit Decline: The company’s consolidated net profit for the quarter fell by 73.83%, plunging from ₹5.35 crores in Q1FY24 to ₹1.40 crores in Q1FY25. This steep decline in net profit is a clear reflection of the challenges that Sarthak Metals is facing in maintaining profitability amid shrinking revenues.

Key Considerations for Investors:

1. Revenue Trends: With revenues halved year-on-year, one of the primary concerns for investors will be understanding the factors driving this decline. Whether it is due to market dynamics, competitive pressures, or internal inefficiencies, understanding these aspects will be crucial for gauging the company’s ability to recover in the coming quarters.
2. Profitability Challenges:
   The significant reduction in net profit, despite efforts to cut costs, highlights the challenges Sarthak Metals faces in maintaining profitability in a declining revenue environment. Investors will be looking for insights into how the company plans to address these challenges, whether through further cost optimizations, strategic shifts, or other measures.

Conference Call Details:

To discuss these results in detail and provide further insights into the company’s strategy moving forward, Sarthak Metals Ltd invites investors to participate in its Q1FY25 Earnings Call. The call will be led by Mr. Sagar Shah, Vice President who will provide an overview of the financial results and address investor queries regarding the company’s performance and future outlook.

• Date: Monday, September 2, 2024
• Time: 3:00 – 4:00 PM IST

Conference Call Registration Link: Join Here

For further information or assistance, please contact:

• Call Coordinator: Radhakrishnan Chonat, Director of Business Development, Alphastreet
  Phone: +91 8281155999
  Email: rc@alphastreet.com
• Madhan, Product Analyst, Alphastreet
  Phone: +91 9597628793
  Email: madhan@alphastreet.com