Conference Call with Vardhman Special Steels Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Vardhman Special Steels announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: The volumes for the quarter stood at 53,834 tonnes as against 52,118 tonnes in Q4FY24 – YoY increase of 3.29% despite a shutdown of 14 days in Rolling mill in Mar’25. Revenue from Operations stood at Rs 428.04 crore in Q4FY25, as against Rs 439.41 crore in Q4FY24, decrease of 2.59% YoY mainly due to decline in realisations inspite of increased volumes. EBITDA (including other income) for the quarter was Rs 38.62 crore as against Rs 57.54 crore in Q4FY24, decreasing by 32.89%. The decrease was primarily due to lower gross margins. EBITDA per Ton for the quarter was Rs 7,174. Q4FY25 PAT stood at Rs 19.73 crore as against PAT of Rs 32.79 crore in Q4FY24. EPS for the quarter stood at Rs 2.42 vs Rs 4.02 in Q4FY24. FY25 Financial Highlights: The volumes stood at 2,15,843 tonnes (only rolled products) as against 1,95,024 tonnes in FY24 – YoY increase of 10.67%; Additionally, we have sold 4,153 MT of billets during the FY25. Revenue from Operations stood at Rs 1,764.41 crore in FY25, as against Rs 1,661.36 crore in FY24, an increase of 6.20% YoY, mainly on account of increase in sales volume which was offset by reduction in prices. EBITDA (including other income) for FY25 was Rs 177.16 crore as against Rs 172.26 crore in FY24, an increase of 2.84%. EBITDA per Ton for FY25 was Rs 8,208 (on rolled sales quantity). FY25 PAT stood at Rs 93.09 crore as against PAT of Rs 91.63 crore in FY24, increase of 1.59%. EPS for FY25 stood at Rs 11.40 vs Rs 11.26 in FY24. The Board has recommended a dividend of Rs 3 per share on fully paid-up equity shares, subject to approval in the Annual General Meeting as against Rs 2 per share in the previous year. Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels, said: “In Q4FY25, our revenue remained flat on a year-on-year basis, on account of higher than expected price reduction. Total revenue stood at Rs 428.04 crore, with EBITDA at Rs 38.62 crore and PAT at Rs 19.73 crore. EBITDA per ton was Rs 7,174 – mainly impacted by reduced realizations while raw material prices remained relatively stable. Despite a 14-day plant shutdown, volumes increased by 3.29% YoY. Looking ahead, Market demand remains muted, As a result, opportunities for price increases are limited. Raw material prices are relatively stable. Working capital borrowings increased due to inventory build-up in preparation for the planned shutdown. However, the process of the inventory going back to normal level has already started. During the year we have reduced our long term borrowings to Rs 3.29 crore and will continue to bring it down further going forward. As planned, the Kocks Block has been successfully commissioned and is currently in the stabilization phase. Once fully operational, it is expected to enhance productivity and reduce inventory requirements. We remain focused on improving operational efficiency and positioning the company for sustainable long term growth. The company has announced a dividend of Rs 3 per share for FY25 as against Rs 2 in FY24. I am happy to announce our long awaited capex plan of setting up a new green field steel plant in the State of Punjab for manufacturing of special and alloy steel. The proposed capacity addition is 5,00,000 MT of billet production with commensurate Rolling Mill & testing facilities. The total Capex required for this would be around Rs 2000 Crores, which will be funded through a mix of internal accruals, equity and debt. With this green field plant we will be able to address the expected capacity shortage post-2028. This will support future demand, meet evolving quality standards, align with trends like Green Steel, and help reduce manufacturing costs.” Result PDF
