Conference Call with Vardhman Special Steels Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Vardhman Special Steels announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: The volumes for the quarter stood at 59,018 tonnes (only rolled products) as against 49,034 tonnes in Q2FY24 YoY increase of 20.36%. Additionally, we have sold 2,594 MT of Billets in this quarter. Revenue from Operations stood at Rs 494.82 crore in Q2FY25, as against Rs 415.19 crore in Q2FY24, increase of 19.18% YoY mainly due to increase in sales volumes by taking some low margin orders. EBITDA (including other income) for the quarter was Rs 48.45 crore as against Rs 36.75 crore in Q2FY24, increase of 31.84% mainly due to decline in manufacturing costs, benefiting from greater economies of scale and improved operational efficiencies. EBITDA per Ton for the quarter was Rs 8,209 (On rolled sales quantity). Q2FY25 PAT stood at Rs 25.82 crore as against PAT of Rs 18.46 crore in Q2FY24, increase of 39.88%. EPS for the quarter stood at Rs 3.17 vs Rs 2.27 in Q2FY24. H1FY25 Financial Highlights: The volumes for the half year stood at 1,09,316 tonnes as against 96,469 tonnes in H1FY24 YoY increase of 13.32%. Additionally, we have sold 2,594 MT of billets. Revenue from Operations stood at Rs 909.60 crore in H1FY25, as against Rs 824.55 crore in H1FY24, an increase of 10.31% YoY, mainly on account of higher sales volumes. EBITDA (including other income) for H1FY25 was Rs 96.48 crore as against Rs 73.22 crore in H1FY24, an increase of 31.78% mainly due to decline in manufacturing costs, benefiting from greater economies of scale and improved operational efficiencies. EBITDA per Ton for H1FY25 was Rs 8,826 (on sales of rolled product only). H1FY25 PAT stood at Rs 51.90 crore as against PAT of Rs 37.03 crore in H1FY24, increase of 40.16% mainly due to increase in revenue and EBITDA. EPS for H1FY25 stood at Rs 6.37 vs Rs 4.56 in H1FY24. Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels, said: “Q2FY25 witnessed a reasonable performance by the Company despite challenges, with a total revenue of Rs 494.82 crore, EBITDA of Rs 48.45 crore, and PAT of Rs 25.82 crore. Overall revenue from operations increased by 19.18% YoY. This period saw highest ever quarterly sales volume of rolled products with a growth of 20.36% over Q2FY24, driven by strong sales push, leading to higher topline. At the same time, despite a volatility in steel prices in the quarter under discussion, we were able to maintain our EBITDA per ton at Rs 8,209 per ton, on rolled sales quantity, within the targeted range. On the balance sheet front, the short term borrowings have increased, marginally, on account of increase in the working capital requirements on the back higher volumes sales, but debt/equity is well within the stated target. A key highlight this quarter is that we successfully tested production over the enhanced capacity of 2,85,000 TPA of billet production, which marks a significant milestone. This development not only provides for additional capacity, but enables us to take care of the incremental future opportunities. Looking ahead, we will continue to focus on further strengthening our operational efficiencies, expanding capacity, and driving sustainable and profitable Business with minimum carbon footprint. Thank you for your continued trust and support.” Result PDF