Vardhman Special Steels Limited — Investor Meet, 03-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Vardhman Special Steels Limited reported revenues of INR 426 crores for the quarter, reflecting a 7.39% increase year-over-year, while rolled sales increased by 7.5% to 52,600 tons. The earnings before interest, taxes, depreciation, and amortization (EBITDA) per ton was recorded at INR 8,000, consistent with management's expectations despite pricing pressures. For the first nine months of FY25, the PAT increased by 25% to INR 73 crores compared to the same period last year, with total volumes reaching 162,000 tons, up by 13.5%.

**Future Outlook and Growth Drivers:** Management revealed plans to enhance capacity, targeting 300,000 tons of melting and 270,000 tons of rolling by next fiscal year. This includes the installation of a Kocks Block and a new reheating furnace. The new solar plant is anticipated to reduce power costs significantly, expected to commence operation soon.

**Order Book and Operational Updates:** The company is facing market challenges due to lower demand in sectors such as automotive, leading to intensified pricing competition. Despite this, management remains confident in the medium-term growth trajectory, supported by a strong order pipeline and strategic customer relationships.

**Analyst Q&A Insights:** Queries from analysts addressed revenue projections amid muted demand, with management confirming alignment with earlier guidance despite anticipated shutdowns. Specific concerns about rising energy costs were discussed, with management clarifying that the overall power and fuel cost per ton has decreased.

**Market or Regulatory Updates:** The ongoing discussion around a new plant and potential equity infusion from the promoters and existing stakeholders is important. Additionally, recent market trends indicate a need for safeguard duties to counteract low import pricing impacting domestic steel prices.

**Strategic Focus Areas:** Management highlighted a renewed emphasis on cost control, inventory management, and operational efficiencies to navigate the current market and capitalize on future growth opportunities, especially regarding sustainable and lower-carbon steel production.

**Investor Insight:** The overall financial health and strategic initiatives position Vardhman Special Steels favorably in the market. Despite current pressures, the company's expansion plans and potential cost reductions align well for medium-term growth, supporting a “buy” position for investors looking at long-term gains.