Vardhman Special Steels Limited · NSE:VSSL

Vardhman Special Steels — Q2 FY25 Earnings Presentation

36 slides from Vardhman Special Steels's earnings presentation, Nov 7, 2024

  1. Slide 1: Regulation 30 Compliance Letter to Stock Exchanges

    @ 1 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:NOV:2024-25 Dated: 07.11.2024 BSE Limited, The National Stock Ex

  2. Slide 2: Result Update Presentation Q2 & H1 FY25

    Result Update Presentation Q2 & H1 FY25

  3. Slide 3: This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for

    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

  4. Slide 4: Table of Contents

    . TABLE OF CONTENTS _é FINANGIAL HIGHLIGHTS > GOMPANY OVERVIEW © BUSINESS OVERVIEW NA WED aC = oad

  5. Slide 5: Financial Highlights

  6. Slide 6: Message from Mr. Sachit Jain

    “ Q2 FY25 witnessed a reasonable performance by the Company despite challenges, with a total revenue of Rs. 494.82 crores, EBITDA of Rs. 48.45 crores, and PAT of Rs. 25.82 crores. Overall revenue from operations increased by 19.18% year on year. This period saw highest ever quarterly sales volume of

  7. Slide 7: Sales Volumes, Revenue, EBITDA and PAT Trends

    Sales Volumes (tonnes) Revenue from Operations (Rs. Crore) 494.82 61,612 439.41 415.19 397.40 414.78 49,034 52,118 50,298 46,437 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 EBITDA (Rs. Crore)# PAT (Rs. Crore) 57.54 32.79 48.04 48.45 26.08 25.82 41.50 36.75 21.81 1

  8. Slide 8: Q2 FY25 Profit & Loss Statement

    INR Crore Q2 FY25 Q2 FY24 Y-o-Y % Q1 FY25 Revenue From Operations 494.82 415.19 19.18% 414.78 Other Income 9.29 5.62 5.67  Volumes for Q2 FY25 stood at Total Income 504.11 420.81 420.45 61,612 tonnes – YoY increase of Cost of Materials Consumed 265.62 247.53 302.40 25.65%. Highest ever sales during

  9. Slide 9: H1 FY25 Profit & Loss Statement

    INR Crore H1 FY25 H1 FY24 Y-o-Y % Revenue From Operations 909.60 824.55 10.31% Other Income 14.96 12.86 Total Income 924.56 837.41 Cost of Materials Consumed 568.02 518.98  Volumes for H1 FY25 stood at 1,11,910 tonnes – YoY increase of 16.01%. This Purchases of Stocks 0.00 2.56 also includes 2,594

  10. Slide 10: Balance Sheet

    INR Crore As on 31st Sep’24 As on 31st Mar’24 INR Crore As on 31st Sep’24 As on 31st Mar’24 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 Liabil

  11. Slide 11: Company Overview

  12. 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

  13. 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

  14. 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 35 years - One of Country’s Ahmedabad and Owner/Pres

  15. 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

  16. Slide 16: Business Overview

  17. 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)

  18. 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

  19. Slide 19: Steel Melting Shop, Rolling Mill, Bright Bars

    Steel Melting Shop Rolling Mill Bright Bars Annual Capacity : 2,40,000 TPA Annual Capacity : 2,00,000 TPA Annual Capacity : 48,000 TPA  30 MT Ultra High Power (UHP) Eccentric  Rolling Mill installed in 2013-14  Bar Peeling & Centreless Grinding Bottom Tapping (EBT Type)  Mill with complete autom

  20. Slide 20: Process Flow

    \ PROGESS FLOW Sponge, ORt, PIG IRON, Shredded Scrap a ) rr Final Inspection and Dispatch all Domestic Shipment Vaccum Degassing Unit Laddle Refining Unit Continous Casting Facility As Rolled Bar “Hot Rolled" Billet A“ Reheat Furnace Rolling Mill

  21. Slide 21: Electric Arc Furnace, Ladle Refining, Casting, Vacuum Degassing

    Electric Arc Furnace Two Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing

  22. Slide 22: Rolling Mill, Bright Bar Shop, Reheating Furnace

    Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop

  23. Slide 23: Inspection: MFLT, Straightening, Chamfering

    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

  24. Slide 24: Quality and Compliance Testing Facilities

     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

  25. Slide 25: Warehouse Locations

    Bilaspur  One Owned Warehouse  Bilaspur Haryana Rudrapur  Five Leased Warehouses in India  Bangalore Aurangabad  Chennai  Rudrapur Pune  Pune  Aurangabad Bangalore Chennai

  26. 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

  27. Slide 27: End-Use Segments

    Cars Two Wheelers HCL/LCVs Auto Components Tractors Off Highway Vehicles

  28. Slide 28: Export Markets

    Russia Germany Italy Japan Turkey Vietnam Taiwan Thailand 5% of FY24 sales from exports

  29. Slide 29: Road Ahead

    oar AHEAD

  30. Slide 30: Leadership and Training 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

  31. Slide 31: Aichi Steel Alliance and EV Target

    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

  32. Slide 32: Possibilities and Production Volume Road Map

    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

  33. 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

  34. Slide 34: Environment

    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 our competitors a

  35. 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:  We hadn’t laid off anyone during

  36. 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. Mr. Sanjeev Singla Ms. Disha Shah Ms. Samruddhi Bane +91 9699060134 +91 9619624264 sanjeevsingla@vardhman.com disha.shah@adfactorspr.com samr

Vardhman Special Steels — Q2 FY25 Earnings Presentation on 6ix