Q4 2024 Vardhman Special Steels Ltd Earnings Call Transcript
Key Points
- Vardhman Special Steels Ltd (BOM:534392) has significantly reduced its carbon footprint to 0.7 tonnes of carbon per tonne of steel and aims to further reduce it to 0.2 tonnes in two years.
- The company has announced a new CapEx of INR33 crores, which will increase its capacity to 285,000 tonnes in the next two years.
- Vardhman Special Steels Ltd (BOM:534392) has maintained a strong EBITDA per tonne, achieving INR11,000 in the last quarter, which is above their usual range.
- The company has a low debt-equity ratio of 0.12, indicating strong financial health.
- Vardhman Special Steels Ltd (BOM:534392) is positioning itself as a leading green steel producer in India, with significant investments in renewable energy and environmental improvements.
- Despite the strong performance, the company has not increased its dividend due to lower profits compared to the previous year.
- There is a current weakness in demand, particularly in the tractor and commercial vehicle segments, which has affected sales.
- The company will have a one-month shutdown of its rolling mill next year, which may impact production and sales.
- Vardhman Special Steels Ltd (BOM:534392) still relies on external rolling for some of its production, which affects margins.
- The company faces challenges in maintaining its EBITDA per tonne range due to fluctuations in raw material prices and market conditions.
Ladies and gentlemen, good day, and welcome to Q4 FY24 Earnings Conference Call for Vardhman Special Steel Limited Conference Call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Deepika Murarka from Choice Equity Broking Private Limited. Thank you, and over to you, ma'am.
Thank you. Good afternoon, everyone. On behalf of Choice Equity Broking, welcome to the Q4 and FY24 Post Results Conference Call of Vardhman Special Steels Limited. I also take this opportunity to welcome the senior management team. On today's call, we have with us Mr. Sachit Jain, Vice Chairman and Managing Director; Mr. Rajendar Kumar Rewari, Executive Director; Mr. Sanjeev Singla, CFO; Ms. Soumya Jain, Executive Director.
This conference call may contain certain forward-looking statements, which are based on the beliefs, opinion and expectations of the company as of the date of this call. These statements are not guarantee of future
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