Lloyds Metals says second quarter will be weak, but will recover by Oct-Dec period

Lloyds Metals and Energy, a prominent player in India's metal industry, has recently made headlines with its insights into the upcoming quarters. In a candid conversation with CNBC-TV18, Managing Director Rajesh Gupta shed light on the company's performance and addressed some intriguing questions.

Gupta was speaking on the sidelines of 19th Motilal Oswal Annual Global Investor Conference.

The fiscal year 2024 started on a positive note for Lloyds Metals, with a strong performance in the first quarter. Rajesh Gupta said, "Results for quarter one of the year was better, but I believe the next quarter may be a little down, and the next one — the October-December period — will be better again."

 

One of the key takeaways from the conversation with Rajesh Gupta was the mention of signs of price stabilisation in the international markets.

“International markets have stabilised so the Indian market too is expected to stabilise soon,” he said.

This is particularly crucial for metal companies, as they are highly dependent on global market conditions. Price fluctuations can significantly impact their profitability. The notion of price stabilisation hints at a more predictable and potentially profitable future for Lloyds Metals.

And another important question that has been circulating in the market for sometime now was related to the plans of Sunflag Iron & Steel Company with its newly acquired stake in Lloyds Metals. While addressing this, Gupta stated that the company has no information regarding Sunflag’s intent with their stake in Lloyds Metals. "It (Sunflag) is not on the board, so why talk about totally imaginary things," he said.

Gupta went on to clarify that the Sunflag merger talks are not on the anvil. He emphasised that both companies are independent entities and merger discussions are not on the horizon. “It (Sunflag) is an independent company and we're also an independent company, that (a merger) is not on the cards at all. And we haven't heard from them on what they wish to do with their holding,” he remarked.