Vardhman Special Steels reports 4% jump in Q4 FY24 revenue to Rs 439.4cr

Vardhman Special Steels announced significant growth in its fourth quarter financial results for the year ending March 31, 2024. The company reported a 4.12% year-on-year increase in Revenue from Operations, amounting to ₹439.41 crore compared to ₹422.04 crore in Q4 FY23. This rise is attributed to a 3.18% increase in sales volume, reaching 52,118 tonnes.

A standout feature of the quarter was the dramatic increase in EBITDA, which soared by 93.93% to ₹57.54 crore from ₹29.67 crore in the corresponding quarter of the previous year. This was primarily due to higher sales volume and lower raw material costs.

Profitability and Earnings Per Share

The Profit After Tax (PAT) for Q4 FY24 saw an impressive increase of 139.69%, standing at ₹32.79 crore, up from ₹13.68 crore in Q4 FY23. The Basic Earnings Per Share (EPS) also saw a notable rise, reaching ₹4.02, reflecting a 142.17% increase from the previous year.

Comprehensive Analysis of Vardhman Special Steels Limited‘s Financial Results for Q4 FY24

Yearly Financial Performance Review

Looking at the financial year as a whole, Vardhman Special Steels reported a slight decrease in sales volume and revenue. The total volume for FY24 was 1,95,024 tonnes, marking a 2.53% decline from FY23. Revenue from Operations for the year stood at ₹1,661.36 crore, down by 4.24% year-on-year.

EBITDA for FY24 was ₹172.26 crore, a decrease of 4.34% from the previous year, mainly due to lower revenue. Similarly, the year’s PAT decreased by 8.78%, amounting to ₹91.63 crore.

Future Outlook and Expansion Plans

Sachit Jain, Vice Chairman & Managing Director of Vardhman Special Steels, commented on the results, emphasizing the better-than-expected performance in the latter half of the year and plans for capacity expansion. The company aims to increase its Billet production capacity to 2,85,000 TPA by FY26.

Vardhman Special Steels Limited (BSE: 534392, NSE: VSSL), a leading Indian producer of special steels, caters to various industries including automotive, engineering, tractors, and bearings. Established in 2010 and headquartered in Ludhiana, Punjab, VSSL is known for its high-quality steel products used domestically and internationally.