Vardhman Special Steels Q2 FY22 PAT surges by 172% to Rs 24.3cr

Vardhman Special Steels Limited has reported a profit after tax (PAT) for the second quarter of the fiscal year (Q2 FY22) at INR 24.29 crores, an increase of 171.7% compared to INR 8.94 crores in Q1 FY21.

In the previous quarter, that is Q1 FY22, the Indian steels producer made a profit after tax of INR 27.8 crores.

The basic earnings per share (EPS) of Vardhman Special Steels in Q2 FY22 were INR 6, a 171.5% increase compared to an EPS of INR 2.21 in the same quarter of the previous fiscal year.

Revenue from operations of the special and alloy steels manufacturer for the reported quarter was INR 335.65 crores, compared to INR 247.09 crores in Q2 FY21. This marks a year-over-year increase of 35.84% driven largely by higher sales realizations.

Vardhman Special Steels Q2 FY22 sales volume was 43,283 tonnes, which is a 1.6% decline compared to 43,986 tonnes in Q2 FY21.

Commenting on Vardhman Special Steels Q2 FY22 results, Sachit Jain — Vice Chairman and Managing Director of Vardhman Special Steels said: “I am happy to say during this quarter, our sales volumes stood at 43,283 tonnes with a revenue of Rs. 335.65 crore and EBIDTA of Rs. 48.55 crore, YoY increase of 35.84% and 82.00% respectively.

“As I have mentioned earlier as well about our furnace planned shutdown in November because of which we have high inventory levels which will rationalize by financial year end. We are very well prepared for this shutdown in advance, and it will not affect our business in any manner. Although, we might have to outsource procurement of billets in case of excess demand.

“Overall, we remain focused on creating value for our stakeholders and managing the business for the long term to transform our business and our ways of working. I am thankful to the entire team at Vardhman for overcoming gripping uncertainties and delivering good results.”