Vardhman Special Steels Ltd share Price Today

Vardhman Special Steel (VSSL) is among India’s leading steel bar producers for automotive applications. It has specialised product offerings, which include steel bars, rods & bright bars of various categories of special & alloy steel.

• VSSL, incorporated in May 2010, is headquartered in Ludhiana, Punjab
• In August 2019, VSSL entered into a strategic alliance with Aichi Steel Corporation (ASC) Japan, the main material producer for Toyota Group wherein ASC had participated in equity and entered into a Technical Assistance Agreement

• VSSL has started mass production of steel for forging companies of Aichi Steel Corporation (ASC) based in South East Asia for some grades for which VSSL has received the approvals. Sales of these products for FY24 will be ~10000 tonnes
• The volume is expected to further increase with more approvals being received in the next two to three years. This development has established VSSL as a supplier of high quality automotive steel. In general, going forward, VSSL has a target to increase the share of export volumes from currently ~5% in FY22 to ~20-25% by FY25

Iron & Steel Products company Vardhman Special Steels announced Q1FY24 results:

• The volumes for Q1FY24 stood at 47,435 tonnes as against 52,265 tonnes in Q1FY23 – YoY decrease of 9.24%.
• Revenue from Operations of Rs 409.36 crore in Q1FY24, as against Rs 469.16 crore in Q1FY23, down 12.75% YoY
• EBITDA (including other income) for Q1FY24 is Rs 36.47 crore vs Rs 51.61 crore in Q1FY23, a decrease of 29.34%
• EBITDA per ton for Q1FY24 was Rs 7,688
• PAT for Q1FY24 stood at Rs 18.57 crore as against PAT of Rs 30.30 crore in Q1FY23, a decrease of 38.70%
• EPS for Q1FY24 stood at Rs 2.29 vs Rs 3.73 in Q1FY23

Commenting on the result, Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels said, “This quarter our revenue declined by 12.75% mainly due to decline in volumes and prices as compared to last year. As mentioned in Q4FY23 earnings call, this year will be a year of consolidation for us. Our production for Aichi Steel continues to be in sync as per our stated plan and that contribution will only continue to increase each year.

I would like to express my gratitude towards our dedicated employees, partners and stakeholders. We continuously strive to keep up the momentum of efforts and hard work and keep performing as per stated targets.”

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