Q3FY22 Quarterly Result Announced for Vardhman Special Steels Ltd.
Metal and Mining company Vardhaman Special Steels announced Q3FY22 results: Q3FY22: The volumes for the quarter stood at 44,723 tonnes as against 45,964 tonnes in Q3 FY21. The Company had 15 days of shut down of Steel Melt Shop during the quarter in addition to slight slackness in demand Revenue from Operations stood at Rs 359.32 crore in Q3 FY22, as against Rs 287.65 crore in Q3 FY21, growth of 24.91% mainly on account of price increase EBITDA (including other income) for the quarter is Rs 40.76 crore as against Rs 42.64 crore in Q3 FY21, decrease of 4.40%. Despite sharp increase in raw material price Company’s strict measure to control other costs led to lower decline in EBITDA EBITDA for the quarter is Rs 9,114 per Ton as against Rs 9,276 per Ton in Q3 FY21 Q3 FY22 PAT stood at Rs 19.47 crore as against profit of Rs 21.67 crore in Q3 FY21, decrease of 10.15% 9 months ending December 31 st, 2021: The volumes stood at 1,31,711 tonnes as against 1,02,437 tonnes in 9M FY21 Revenue from Operations stood at Rs 1,025.11 crore in 9M FY22, as against Rs 602.60 crore in 9M FY21, growth of 70.11% EBITDA (including other income) is at Rs 143.01 crore as against Rs 61.63 crore in 9M FY21, increase of 132.04% EBITDA for nine months is Rs 10,858 per Ton as against Rs 6,017 per Ton in 9M FY21 9M FY22 PAT stood at Rs 71.56 crore as against profit of Rs 17.83 crore in 9M FY21, increase of 301.24% Commenting on the result, Mr. Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels Ltd. said, “Our Q3FY22 profitability has been lower than our earlier quarters however it is still within the normal range. The price increase of raw material costs, slackness in demand and therefore less than expected increase in price increase from OEMs led to this. Also, the plant shut down was in effect for about 15 days during the quarter. Our capital employed has been on the higher slide because of increase in inventories due to the planned plant shutdown as well as surplus raw material inventory which was a conscious and strategic decision. On an overall basis, I believe, given the circumstances, we performed on the satisfactory side. Despite slight decrease in volume sales YoY, our topline grew by over 24% to Rs. 359 crore for the quarter in discussion on account of the price increase though less than then expected. And despite the sharp increase in Raw Material costs, EBITDA YoY declined by just over 4%. As for nine months the overall volume growth has been over 28% and we are confident to achieve our year end targets. Also, the EBITDA per ton for 9 months stood at over Rs. 10,800 and for Q3 it was around Rs.9,100, which is above our stated yearly target range of Rs. 7,000 to 10,000 tonnes. On the Aichi collaboration front, work is progressing smoothly. The upgradation project undertaken during the last shutdown happened under the supervision of Aichi. As we have been stating that we remain focused on creating value for our stakeholders and managing the business for the long term to transform both - our business and our ways of working. I would like to convey my heartfelt thanks to team Vardhman for possessing the admirable gift of grit in consistently helping the Company move forward and achieving milestones on the path.” Result PDF31-01-2022