- 02 May 2024
- ICICI Securities
Vardhman Special Steel reports healthy performance in Q4FY24
VSSL - 317 Change: 10.95 (3.57 %)News: Total operating income for the quarter came in at ₹439 crore (up 11% QoQ, 4% YoY) with metal sales volume at 52,118 tonnes (up 3% YoY, 12% QoQ). EBITDA in Q4FY24 came in at ₹48.9 crore with corresponding EBITDA margins at 11% (up 270 bps YoY). Resultant PAT for the quarter stood at ₹32.8 crore (up by more than 50% QoQ). For full year basis, topline came in at ₹1661 crores (down by 4% YoY) with sales volume down by 3% to 1.95 lakh tonnes. EBITDA stood at ₹142.4 crores with corresponding EBITDA margins at 8.6%, up by 50 bps YoY. PAT came in at ₹ 91.6 crores (down by 8.8% YoY).
Views: EBITDA/tonne for the quarter stood at ₹9,378 vs. ₹4,845 in Q4FY23 and ₹7,160 in Q3FY24 driven by healthy sales volume and lower raw material costs and the key positive surprise from the results. We have a positive view on the stock and are enthused by VSSL’s strategic partnership with Aichi Steel as it will open a broader export play with VSSL planning to up the game in this domain supplying special steel to ASC approved plants/vendors in South East Asian markets with intent to grow export sales to 20-25% of sales volume by FY25E vs. 5% in FY23.
Impact: Positive