Vardhman Special Steels announces Q3 FY24 financial results amidst market challenges

Vardhman Special Steels Limited (VSSL), listed on both the Bombay Stock Exchange (BSE: 534392) and the National Stock Exchange (NSE: VSSL), and recognized as one of India’s leading producers of special steels, has unveiled its unaudited financial results for the third quarter and nine months ending December 31, 2023. The disclosure was made during the Board meeting on February 2, 2024, drawing attention to the company’s performance in the context of its operations across the automotive, engineering, tractor, bearing, and allied industries.

The company reported a marginal year-over-year (YoY) increase in sales volume for Q3 FY24, reaching 46,437 tonnes, reflecting a subtle growth of 0.17%. However, this slight uptick in volume was not enough to prevent a minor decline in revenue from operations, which dropped by 0.81% YoY to INR 397.40 crore. EBITDA saw a more significant decrease of 16.57%, landing at INR 41.50 crore, largely due to increased other expenses and a drop in other income, which included a GST refund in the previous fiscal year.

For the nine-month period ending in December 2023, sales volume decreased by 4.46% YoY, and revenue from operations saw a 6.93% decline to INR 1,221.94 crore. The company’s EBITDA also fell by 23.73% to INR 114.72 crore, affected by similar factors as the quarterly results. Profit after tax (PAT) and basic earnings per share (EPS) both witnessed notable decreases, highlighting the challenges faced during this period.

Sachit Jain, Vice Chairman & Managing Director of Vardhman Special Steels, commented on the quarter’s results, noting the slight revenue decline and more pronounced EBITDA decrease. He attributed the EBITDA difference to the accounting of additional other income in the previous year and mentioned operational challenges, including a planned shutdown of the rolling mill and inventory valuation losses due to decreasing raw material prices. Despite these short-term impacts, Jain emphasized the importance of the company’s investments for long-term growth and expressed gratitude towards the team, partners, and stakeholders for their ongoing support.

Vardhman Special Steels remains focused on optimizing operations and improving efficiencies to navigate the current market conditions. With strategic investments and a commitment to operational excellence, the company aims to sustain its growth trajectory and strengthen its position in the special steels industry.