Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q1 FY25 Earnings Presentation
36 slides from Vardhman Special Steels's earnings presentation, Jul 26, 2024
Slide 1: Vardhman Special Steels Limited
@ | Vardhman VARDHMAN SPECIAL STEELS LIMITED Vardhman | Delivering Excellence. Since 1965. CHANDIGARH ROAD LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048, 2222616, 2601040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:JUL:2024-25 Dated: 26.07.2024 BSE Limited, The National Stock Ex
Slide 2: Result Update Presentation Q1 FY25
Result Update Presentation Q1 FY25
Slide 3: Disclaimer
This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any cont
Slide 4: Table of Contents
" TABLE OF GONTENTS _é FINANGIAL HIGHLIGHTS i> COMPANY OVERVIEW © HUSINESS OVERVIEW SA WAOMHEAD ay 6 od
Slide 5: Financial Highlights
Slide 6: Management commentary on Q1 FY25 performance
“ During the first quarter, we reported revenue from operations at Rs. 414.78 crores, a year-on-year growth of 1.3%. EBIDTA and PAT for the quarter grew 31.71% and 40.43% to Rs. 48.04 crores and Rs. 26.08 crores, respectively. Our EBIDTA per ton during the quarter was Rs. 9,550. While our volumes gr
Slide 7: Sales volumes, revenue, EBITDA and PAT trends
Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) 52,118 50,298 47,435 49,034 46,437 439.41 415.19 414.78 409.36 397.40 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 EBITDA (Rs. Crore)# 57.54 PAT (Rs. Crore) 32.79 48.04 26.08 41.50 21.81 36.47 36.75 18.57 1
Slide 8: Quarterly profit and loss statement
INR Crore Q1 FY25 Q1 FY24 Y-o-Y % Q4 FY24 Revenue From Operations 414.78 409.36 1.32% 439.41 Other Income 5.67 7.24 8.71 § Volumes for Q1 FY25 stood at Total Income 420.45 416.60 448.12 50,298 tonnes – YoY increase of 6.04% Cost of Materials Consumed 302.40 271.45 277.29 Purchases of Stocks 0.00 0.0
Slide 9: Annual profit and loss statement
INR Crore FY24 FY23 Y-o-Y % Revenue From Operations 1,661.36 1,734.99 (4.24%) § Volumes for FY24 stood at 1,95,024 Other Income 29.83 38.75 tonnes – YoY decline of 2.53% Total Income 1,691.18 1,773.75 Cost of Materials Consumed 1,030.62 1,146.47 § Decline in Revenue from Operations Purchases of Stoc
Slide 10: Balance sheet
INR Crore As on 31st Mar’24 As on 31st Mar’23 INR Crore As on 31st Mar’24 As on 31st Mar’23 Equity 719.35 642.21 Non-Current Assets 365.39 331.89 Equity Share Capital 81.46* 40.63 Property Plant & Equipment 324.10 292.96 Other Equity 637.89 601.59 Capital work in progress 0.99 11.91 Non-current Liab
Slide 11: Company Overview
Slide 12: Amongst India's Leading Steel Bar Producers for Automotive Applications
Amongst India’s Leading Steel Bar Experienced Management Team State-of- art manufacturing facilities Quality Standards, Assurance Producers for Automotive Applications § Significant experience in Steel § Cutting-edge manufacturing & Certifications § Incorporated in May 2010 Industry technology § ISO
Slide 13: Company history and milestones
What We were… 1973- 2011 2012 - 2015 2016 - 2017 2018 – Till Date § 1973 – Started as Oswal Steels - § 2012 - Listed on BSE & NSE § Dec 2016 – Upgraded § Feb. 2018 – QIP of Rs 50 Cr. 50,000 TPA capacity of special transformer & allied § June 2018 – CRISIL upgraded credit rating & alloy steels § 2013
Slide 14: Board of Directors
… Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Non-Independent Director Vice Chairman & MD § B. Tech from BHU/IIT, Varanasi and MBA (IIM, Ahmedabad) § B. Tech (Electrical) - IIT, New Delhi, MBA (Gold medallist) - IIM, § Rich experience of more than 41 years - One of Country’s Ahmedabad and Owner/Pres
Slide 15: Board of Directors (continued)
… Mrs. Vidya Shah Mr. Rakesh Jain Independent Director Independent Director § MBA from Indian Institute of Management, Ahmedabad § Ph.D. in Polymers from University of Akron § 11 years of career in investment banking - ICICI, Peregrine and NM § Worked in Advanced Technology Group at GE Electro-mater
Slide 16: Business Overview
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Slide 17: Hot Rolled Bars and Bright Bars
Hot Rolled Bars Bright Bars § Diameter Size : Increased from 25-70 § Size : 14.66 to 78 mm (Peeled), 18 to MM in 2012 to 16-120 MM 55.25 mm (Drawn)
Slide 18: Automotive component applications
• Axle Gears • Transmission Gear • Stabilizer Bar • Drive-Shaft • Knuckle Spindle • Tie-Rod • Piston • Bearings • Connecting Rod • Companion-flange • Camshaft • Axle Shaft • Center Velocity Joint • Piston-Pin • Crankshaft • Steering-Yoke • Differential Gears • Steering Shaft
Slide 19: Steel Melting Shop, Rolling Mill, Bright Bars
Steel Melting Shop Rolling Mill Bright Bars
Slide 20: Process flow
PROGESS FLOW Sponge, DRI, PIG IRON, Shredded Scrap 4, ) rr” Final Inspection and Dispatch eal Domestic Shipment ‘Vaccum Degassing Unit Ladle Refining Unit Continous Casting Facility As Rolled Bar "Hot Rolled" Billet A“ Reheat Furnace Rolling Mill
Slide 21: Steel melting shop equipment
Electric Arc Furnace Two Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing
Slide 22: Rolling mill and bright bar shop
Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop
Slide 23: Finishing and testing processes
MFLT Straightening Chamfering Acceptance Criteria: Straightness : Bar ends free from 0.2x10mm 2mm / meter Burr Shot Blasting UST Acceptance Criteria: SDH - 0.8x10mm, FBH - 0.8 & 1.2mm
Slide 24: Ensuring highest levels of quality and compliance
§ Spectrometer: ARL 4460:1454 for Chemical Analysis. Can check 32 different elements § CS - 230 : Analyzer for Carbon & Sulfur content in steel § LECO gas analyzer: TC 600 H2, N2, O2 Analyzer § Mobile Spectro and XRF for Mix up Testing of Bars § Mechanical and Metallurgical Testing Lab: § Rockwell H
Slide 25: Warehouse network
Bilaspur § One Owned Warehouse § Bilaspur Haryana Rudrapur § Five Leased Warehouses in India § Bangalore Aurangabad § Chennai § Rudrapur Pune § Pune § Aurangabad Bangalore Chennai
Slide 26: Key strengths
State of Art Manufacturing Facilities Diversified Product offerings Rich Management Experience and advanced R&D Capabilities § Manufactures diverse range of § Dynamic & rich experience in special § Well equipped with latest upgraded products with wide applications across steel sector Technology Mach
Slide 27: End-use segments served
Cars Two Wheelers HCL/LCVs Auto Components Tractors Off Highway Vehicles
Slide 28: Export markets
Russia Germany Italy Japan Turkey Vietnam Taiwan Thailand 5% of FY24 sales from exports
Slide 29: Way Ahead
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Slide 30: Employee development initiatives
Centre for Creative Leadership ‘Manav Vikas Kendra’ ‘EKLAVYA - B.Sc. to B. Tech.’ § CCL - US based Organisation – offers § Training programs – functional, § New Initiative undertaken leadership programs across 160 countries, attitudinal, skill development, § Formalized training programs that FT top1
Slide 31: Aichi Steel alliance: phases and EV targets
Gasoline § Technology and technical know how shared with VSSL to make steel for Toyota companies and other OEM’s Phase - 1 § To raise quality of steel of VSSL to be supplied to future ready cars like Hybrid, Hydrogen fuel and Electric Hybrid § Increase VSSL production capacity with aim to achieve hi
Slide 32: Possibilities and billet production roadmap
Possibilities § Future Ready products - Patent steel grades developed for special application in EV’s, hybrid and conventional cars § Own In House R&D – Toyota Car Company takes input from Aichi on special steel to be developed car parts. It means we can target more approvals for VSSL in Maruti Suzu
Slide 33: Phased plan with Aichi
Phase 3 Production 300,000MT / year Phase 2 Export 60,000 MT / year • Initiate CAPEX to increase production capacity to • Vardhman may look forward to 250,000 MT in first phase Forging business in India • FY 23: Year of manufacturing of Trial orders for Aichi • Anticipate to receive orders from Aich
Slide 34: Environment and Social
Environment • Committed towards cleaner, greener and healthier environment by implementing stringent standards & policies for Environment in our unit • We have the lowest carbon footprint in India, among auto steel manufacturers • Making steel through Electric Arc Furnace route which is significantl
Slide 35: Governance
Have In-house oxygen generation plants for our captive consumption. During Covid time, we had served society by supplying oxygen cylinders. During 2nd wave of Covid, we have been able to serve for 50% requirement of oxygen of Ludhiana city Employee well being: ü We hadn’t laid off anyone during
Slide 36: For further information, please contact
For further information, please contact 534392 VSSL VSSL IN VARM.BO Company Investor Relations Advisors Vardhman Special Steels Limited Adfactors PR Pvt. Ltd. Ms. Disha Shah Mr. Sanjeev Singla +91 9699060134 Mr. Amit Sharma sanjeevsingla@vardhman.com disha.shah@adfactorspr.com amit.sharma@adfactorsp
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