- 26 Jul 2024
- ICICI Securities
Vardhman Special Steel reported a tad muted performance in Q1FY25
VSSL - 296 Change: -0.45 (-0.15 %)News: Total operating income for the quarter came in at ₹415 crore (up 1% YoY, down 6% QoQ) with metal sales volume at 50,298 tonnes (up 6% YoY, down 3% QoQ). EBITDA in Q1FY25 came in at ₹42.4 crore with corresponding EBITDA margins at 10.2% (down 90 bps QoQ). EBITDA/tonne for the quarter stood at ₹8,425 vs. ₹6,162 in Q1FY24 and ₹9,378 in Q4FY24. Resultant PAT for the quarter stood at ₹26.1 crore (up 40% YoY, down 21% QoQ).
Views: Revenue declined this quarter due to lower steel sales realization to ₹82,464/ton (down 4% YoY, 2% QoQ). EBITDA per ton also witnessed a sequential decline, despite lower raw material cost in Q1FY25. However, over the longer-term perspective, we maintain a positive view on the stock and are encouraged by VSSL’s strategic partnership with Aichi Steel. This collaboration is expected to expand VSSL’s export capabilities, with plans to supply special steel to ASC-approved plants and vendors in Southeast Asian markets.
Impact: Neutral