Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — Q3 FY25 Earnings Presentation
35 slides from Vardhman Special Steels's earnings presentation, Jan 30, 2025
Slide 1: Regulation 30 compliance cover letter
G@) | Vardhman VARDHMAN SPECIAL STEELS LIMITED Delivering Excellence. Since 1965. CHANDIGARH ROAD Vardhman LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 ‘F: +91-161-2601048, 2222616, 2601040 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:JAN:2024-25 Dated: 30.01.2025 BSE Limited, The National Stock E
Slide 2: Result Update Presentation Q3 & 9M FY25
Vardhman rT Tet eo etlle ok) ‘ ‘ ° 4 * a, . , ° 4 \ , | SPECIAL STEELS STEELS LIMITED LIMITED | Result Update Presentation Q3 & 9M FY25
Slide 3: Disclaimer
Vardhman 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 conn
Slide 4: Table of Contents
TABLE OF CONTENTS e FINANCIAL HIGHLIGHTS \ 1 A aa Oa IK] Ltrs OVERVIEW ; AC A Wi tHE O
Slide 5: If aime +
1 had si e If aime + Ui
Slide 6: Management's Message
Vardhman . MANAGEMENTS MESSAGE Our volumes for the quarter increased by 14% for rolled products despite muted demand. The revenue growth was in line with the growth in volumes mainly due to pricing pressures from the OEMs which led to lower realizations and less margin per ton. The EBITDA per ton fo
Slide 7: Financial Highlights Q3 FY25
Vardhman \ FINANGIAL HIGHLIGHTS Q3 FY25 lwmcore | aaras | earae | vovx | oars Revenue From Operations 426.77 397.40 7.39% OO S| aj hia Sade ee nn ASA TEARS PRE ne ‘ Other Income 6.97 8.25 9.29 2 7 Total Income 433.74 405.65 504.11 Volumes for Q3 FY25 stood Cost of Materials Consumed 305.26 234.36 26
Slide 8: Financial Highlights 9M FY25
Vardhman \ FINANGIAL HIGHLIGHTS SM FY25 linncoe Revenue | omens | ome | voir | From Operations 1,336.37 1,221.94 9.36% Other Income 21.93 21.12 Volumes for 9M FY25 stood at * Total Income 1,358.30 1,243.06 1,66,162 tonnes — YoY increase Cost of Materials Consumed 873.28 753.34 of 16.27%. This also i
Slide 9: Balance Sheet Highlights
Vardhman BALANGE SHEET HIGHLIGHTS re Equity 755.63 719.35 Non-Current Assets 380.78 365.39 Equity Share Capital 81.50 81.46* Property Plant & Equipment 320.93 324.10 Other Equity 674.14 637.89 Capital work in progress 3.25 0.99 Non-current Liabilities 29.81 37.09 Other Intangible Assets 0.03 0.04 Fi
Slide 10: 1A) aha ad
1A) : ‘ 7 en Yd PL ’ rT r iN ‘4 A Me | ; earn . aha ad —™ — > ny rt
Slide 11: About Us
Vardhman . ABOUT US Amongst India’s Leading Steel Bar Producers for Automotive Applications # Incorporated in May 2010 Experienced Management Team " Significant experience in Steel Industry © =" © State-of- art manufacturing facilities Cutting-edge manufacturing technology Quality Standards, Assuran
Slide 12: Journey So Far
Vardhman JOURNEY SO FAR What We were... f<com eoooe 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 — Ins
Slide 13: Strong Experienced Board of Directors Contd...
Vardhman OTR NG EXPERIENGED BOARD OF DIRECTORS CONTD... Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Non-Independent Director Vice Chairman & MD = 8B. Tech from BHU/IIT, Varanasi and MBA (IIM, Ahmedabad) S B. Tech (Electrical) - IIT, New Delhi, MBA (Gold medallist) - IIM, = Rich experience of more th
Slide 14: Strong Experienced Board of Directors
Vardhman STRONG EXPERIENCED BOARD OF DIRECTORS G 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 Advanc
Slide 15: PVP
PVP *
Slide 16: Wide Range of Products
WIDE RANGE OF = 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 17: Diverse Applications of Our Products
Vardhman DIVERSE APPLICATIONS OF OUR PRODUCTS e Axle Gears ¢ Transmission Gear e Stabilizer Bar ¢ Drive-Shaft ¢ Knuckle Spindle ¢ Tie-Rod e Piston ¢ Bearings ¢ Connecting Rod ¢ Companion-flange ¢ Camshaft ¢ Axle Shaft ¢ Center Velocity Joint ¢ Piston-Pin ¢ Crankshaft ¢ Steering-Yoke ¢ Differential G
Slide 18: Manufacturing Facilities and Annual Capacity
Annual Capacity : 3,00,000 TPA Annual Capacity : 2,00,000 TPA Annual Capacity : 48,000 TPA # 35 MT Ultra High Power (UHP) Eccentric # Rolling Mill installed in 2013-14 = Bar Peeling & Centreless Grinding Bottom Tapping (EBT Type) =» ~=6Mill with complete automation * Straightening = Fully automated
Slide 19: Process Flow
Vardhman 7 PROGESS FLOW Sponge, ORI, PIG IRON, Shredded Scrap Domestic Shipment Final Inspection and Dispatch | ene ne nn nee tee Bright Bar Shop qemu FNDT Line 30 TON ELECTRIC ARC FURNACE Spherodize Annealing Vaccum Degassing Unit Laddle Refining Unit Continous Casting Facility ff . a As Rolled Bar
Slide 20: In House Steel Melting Shop
IN HOUSE STEEL MELTING SHOP Electric Arc Furnace
Slide 21: Rolling Mill and Bright Bar Shop
| Vardhman & BRIGHT BARS Rolling Mill Bright Bar Shop
Slide 22: Automatic Line of Bar Inspection NDT Line
AUTOMATIC LINE OF BAR INSPECTION NOT LINE | Eiht . MFLT 3 Straightening 7 Chamfering Acceptance Criteria: | _ Straightness : ' Bar ends free from 0.2x10mm ° 2mm / meter Burr Blasting UST Acceptance Criteria: SDH - 0.8x10mm, FBH - 0.8 & 1.2mm
Slide 23: Best in Class R&D Facility
Vardhman 7 BEST IN GLASS R&D FACILITY / Spectrometer: ARL 4460:1454 for Chemical Analysis. Can check 32 different elements 7 CS - 230 : Analyzer for Carbon & Sulfur content in steel s LECO gas analyzer: TC 600 H,, N,, O, Analyzer 7 Mobile Spectro and XRF for Mix up Testing of Bars 7 Mechanical and M
Slide 24: Strategically Located Warehousing Facilities
DTRATEGIGALLY LOGATED WAREHOUSING FACILITIES Bilaspur O = One Owned Warehouse O # Bilaspur Haryana Rudrapur i x = Five Leased Warehouses in India = Bangalore Aurangabad =~ Chennai O #" Rudrapur p O Pune : Pune =» Aurangabad Bangalore O Chennai
Slide 25: Key Strengths
, 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 sect
Slide 26: 200+ Reputed & Long Term Customers
Vardhman b 200+REPUTED & LONG TERM CUSTOMERS... ero en ccs Ls 8 060hC oer TOYOTA HYunorA! @SS$GzunKi | oun eNO Hero —_ BAJAS SS faa es DAIMLER SWaR@ ¢ W RENAULT WIssany See” TVS -* ——a HONDA mazpDa a 7 Auto Components Off Highway Vehicles cerlikon TAFE ¥ graziano GKN Automotive CATERPILLAR Ln JOHN D
Slide 27: Across Globe With Customer Base
Vardhman ew AGROSS GLOBE WITH CUSTOMER BASE 7 f » _ Japan m* Aaiwan 5% of FY24 sales from exports
Slide 28: rit
wr naan °
Slide 29: Investing in People
) INVESTING IN S Vardhman Leadership Development Program Park Plaza,Ludhiana -16" to 20"January 2019 = CCL - US based Organisation — offers Training programs — functional, New Initiative undertaken leadership programs across 160 countries, attitudinal, skill development, Formalized training programs
Slide 30: Strategic Alliance with Aichi Steel Corporation Japan
VSSL ENTERED A STRATEGIC ALLIANGE WITH AIGHI STEEL CORPORATION (ASC) JAPAN (Main material maker for Toyota) Gasoline = Technology and technical know how shared with VSSL to make steel for Toyota companies and other OEM’s = To raise quality of steel of VSSL to be supplied to future ready cars like Hy
Slide 31: What Advantage for VSSL After Alliance with Aichi
WHAT ADVANTAGE FOR VSSL AFTER ALLIANGE WITH AIGHI 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
Slide 32: Timeline for Activities
b TIMELINE FOR ACTIVITIES Production 300,000MT / year arora ne 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 recei
Slide 33: ESG Initiatives
ESG INITIATIVES Environment . Committed towards cleaner, greener and healthier environment by implementing stringent standards & policies for Environment in our unit ; Making steel through Electric Arc Furnace route which is significantly more environment friendly than Blast Furnace route. Most of o
Slide 34: ESG Initiatives
b ESG INITIATIVES e 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 e Employee well being: ¥ We hadn’t laid
Slide 35: Thank You
Vardhman THANK YOU For further information, please contact VSSL Bloomberg YENI Tae | VARV. BO Company Investor Relations Advisors Vardhman Special Steels Limited Adfactors PR Pvt. Ltd. Mr. Sanjeev Singla Ms. Disha Shah Ms. Samruddhi Bane +91 9699060134 +91 9619624264 sanjeevsingla@vardhman.com disha
Vardhman Special Steels — Q3 FY25 Earnings Presentation on 6ix