Q1 2025 Vardhman Special Steels Ltd Earnings Call Transcript
Key Points
- Vardhman Special Steels Ltd (BOM:534392) reported a stable operational performance with sales volume crossing 50,000 tonnes in Q1 FY '25.
- Quarterly revenue increased to INR 410.78 crores, marking a nominal year-over-year growth of 1.80%.
- EBITDA saw a significant increase of 31.71%, reaching INR 48 crores.
- PAT also showed a double-digit increase, standing at INR 26.08 crores.
- The company is on track to achieve its annual target of 210,000 tonnes of steel, with ongoing capacity expansion projects like the KOCKS block and new heating furnace progressing as planned.
- The quarter experienced subdued marketing activities due to shutdowns and delayed OEM production, impacting immediate sales bookings.
- Raw material prices increased by 8% to 10% in Q1, which could potentially lead to inventory valuation losses if prices remain volatile.
- The company is planning major shutdowns for maintenance and expansion, which could temporarily affect production and sales.
- Inventory levels have increased by INR 62 crores, which might affect financials until the shutdowns are completed and inventory levels normalize.
- Discussions with OEMs regarding price adjustments are ongoing, creating uncertainty around future pricing and profitability.
Ladies and gentlemen, good day, and welcome to the mine Special Steel Limited Q1 FY 21 Earnings Conference Call. ( Operator instructions )
I now hand the conference over to Ms. Deepika Murarka. Thank you, and over to you, ma'am.
Thank you. Good afternoon, everyone. On behalf of Choice Equity Broking, welcome to the Q1 FY '25 Post-Earnings Conference Call of Vardhman Special Steels Limited. I also take this opportunity to welcome the senior management team. On today's call, we have with us Mr. R.K. Rewari, Executive Director; Mr. Sanjeev Singla, CFO; and Ms. Soumya Jain, Executive Director. This conference call may contain certain forward-looking statements based on the belief, opinions and expectations as on the date of this call. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. I now invite Mr. R.K. Rewari for the opening remarks to be followed by a question-and-answer session. Over to you, sir.
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