Vardhman Registers Volume growth of 12% during 9MFY19 despite slowdown in the automotive industry
Deepthi | Myequity news | Date : 02-02-2019 16:05:00 IST
Vardhman Special Steels Limited, India’s leading producers of special steels catering to diverse sectors of engineering, automotive, tractor, bearing & allied industries, has announced its unaudited financial results for the quarter and nine months ended December 31st, 2018.
For the third quarter ended December 31st, 2018:
• The volume for the quarter stood at 43,258 tonnes a YoY growth of 13.02%, despite slowdown in the automotive industry
• Revenue from Operations was Rs. 312.52 crore in Q3FY19, as against Rs. 218.42 crore in Q3FY18, a Y-o-Y growth of 43.08%, mainly on account of increase in sales volumes and higher realizations and also due to sale of outsourced goods and raw materials in Q3FY19 that was not there in the corresponding period of last year
• EBITDA (including other income) for the quarter was Rs. 22.38 crore as against Rs. 19.88 crore in the corresponding previous period, a Y-o-Y growth of 12.58%
• Profit After Tax stood at Rs. 6.21 crore in Q3FY19 as against Rs. 9.54 crore in Q3FY18
• Basic EPS stood at Rs. 1.74 in Q3 FY19
For the Nine Months ended December 31st, 2018:
• The volume for 9 months FY19 stood at 1,27,313 MT— a YoY growth of 11.97%
• Revenue from operations stood at Rs. 877.51 crore in 9MFY19, as against Rs. 627.60 crore in 9MFY18, Y-o-Y growth of 39.82%, mainly on account of increase in sales volumes, higher realizations and due to sale of outsourced goods and raw materials in Q2 & Q3 FY19 that was not there in the corresponding period of last year
• EBITDA (including other income) for the 9M FY19 was Rs. 58.54 crore as against Rs. 48.54 crore in the corresponding previous period, Y-o-Y growth of 20.60%. This growth was driven by higher volumes and operational efficiencies, despite increase in raw material costs
• Profit After Tax stood at Rs. 22.36 crore in 9M FY19 as against Rs. 17.82 crore in 9MFY18, Y-o-y growth of 25.48%
• EPS stood at Rs. 6.26 in 9M FY19 as against Rs. 5.93 in 9M FY18, Y-o-Y increase of 5.56%
Commenting on the result, Mr Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels Ltd.
said, “During the nine-month ended FY19, we have registered good volume growth of around 12%. Although there is a temporary slowdown in the automobile industry, we have been able to deliver good growth, on account of our strong relationship with our clients. Also, this slowdown in the industry in a way is helping us to build our inventory for our upcoming planned shutdown in first quarter next year. This plant shutdown is to increase our steel melting shop capacity. We expect this planned capacity expansion will help us to achieve our future goals and consistently deliver superior performance.
The consistent improvement in our operational efficiencies has enabled our Company to maintain EBITDA per tonne in the range of 4,500 - 6,000 per tonne, despite challenging scenario of increase in raw material costs.
Overall, we remain committed to our set agenda of delivering consistent, profitable volume led growth. I thank the entire team of ‘Vardhman Special Steels Limited’ for their untiring efforts, hard work, sincerity and high dedication. Also, I would like to thank our valued Shareholders, whose support and faith in our Company along with their critical inputs has given us the determination and ambition to grow from strength to strength.”
About Vardhman Special Steels Limited:
Incorporated in May 2010 as a Public Limited Company, Vardhman Special Steels Limited (VSSL) was vested with steel business undertaking of the parent company Vardhman Textiles Limited in 2011, pursuant to Scheme of Arrangement & Demerger. Headquartered in Ludhiana, Punjab, VSSL is one of India’s leading producers of special steels, catering to diverse requirements of Engineering, Automotives, Tractors, Bearing and Allied Industries. VSSL’s varied product suite comprises of billets, steel bars and rods and bright bars of various categories of special and alloy steels.