Q2 2025 Vardhman Special Steels Ltd Earnings Call Transcript
Key Points
- Vardhman Special Steels Ltd (BOM:534392) achieved its highest sales ever in a quarter, with a 20% increase in sales volume and revenue compared to the previous year.
- The company has successfully tested a higher melting capacity of 285,000 tonnes, which will allow for increased production once the rolling mill expansion is completed.
- Vardhman Special Steels Ltd is making significant progress in sustainability, with plans to commission a solar plant by March, reducing both carbon footprint and power costs.
- The company has secured approval to replace Japanese imported steel with its own steel for a major automobile OEM, marking a significant milestone as a Tier 1 supplier.
- Vardhman Special Steels Ltd is planning a new plant with discussions on costs, layouts, and product mix underway, aiming for a final announcement by mid-next year.
- The company faces capacity constraints in its rolling mill, leading to increased job work and associated costs.
- Market conditions are currently weak, with a slowdown in the automobile industry affecting sales and margins.
- There is pressure from OEMs to reduce prices due to lower prevailing steel prices, impacting the company's margins.
- The company anticipates a significant shutdown for expansion, which will result in lower sales in the second half of the year.
- Receivables have increased due to sales to non-strategic customers with higher outstanding balances, reflecting market slowdown.
Ladies and gentlemen, good day. And welcome to Verman Special Steels Limited Q2 FY25 earnings conference call hosted by IIFL Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Muhi Banati from IIFL Securities Limited. Thank you and over to you, sir.
Thank you, Pak. Good afternoon, everyone on behalf of IIFL Securities. I welcome you all to second quarter and first half of a 525 post result earning conference call of for the one Special Steel Limited.
On this call, I introduced Mr Sachit, Vice Chairman and managing director, Mr Sanjeev Singla, Chief Financial Officer, Mr RK Rewari, executive director over this call.
Now I hand over to
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