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Vardhman Special Steels announces strong results for 2018-19

Steel News - Published on Wed, 08 May 2019

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Vardhman Special Steels announced results for 2018-19. Mr Sachit Jain, Vice Chairman and Managing Director, said "In FY19, we faced two significant changes - in the first half there was an increase in the basic raw materials costs and in the second half, the overall automotive industry witnessed a major slowdown. Though we were able to grow our volumes by 6% to 161,676 tonnes for the year, the EBIDTA grew by only 2.5% on account of increase in operational costs in the second half. The increase in operational costs was on account of our strategic decision to build inventory for the upcoming plant shutdown. This shutdown is to upgrade and modernize our steel melting shop that will help us to achieve our future goals and deliver consistent performance. Overall, we remain committed to our set agenda of delivering consistent, profitable volume led growth.”

Highlights
Volume - 161,676 tonnes, up 6.25% YoY
Revenue from Operations - INR 1,120.76 crore, up 30.48% YoY
EBITDA - INR 69.71 crore, up 2.4% YoY
Higher sales volumes, better realizations and sale of outsourced goods and raw materials resulting in increasing revenue
Decline in PAT on account of increase in depreciation and higher interest cost

Capacity Expansion - Increase melting capacity to 240,000 TPA and Rolling Capacity to 220,000 TPA by FY21- expected capex of approximately INR 200 crores. Target of achieving full capacity utilization soon after completing capex

Source :

Posted By : Mohan Sharma on Wed, 08 May 2019
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