Vardhman Special Steels Reports Strong Q3 FY 2024-25 Performance with ₹42,671.31 Lakh Revenue

Ludhiana, India – January 29, 2025​

Vardhman Special Steels Limited (VSSL) has reported robust financial results for the quarter and nine months ending December 31, 2024, showcasing strong revenue growth and solid profitability despite rising raw materials and operational expenses costs.

Revenue and Growth Trends​

For Q3 FY 2024-25, VSSL posted revenue from operations of ₹42,671.31 lakh, reflecting a steady increase from ₹39,739.87 lakh in Q3 FY 2023-24. The nine-month revenue reached ₹1,33,636.95 lakh, up from ₹1,22,194.46 lakh during the same period last year, representing a 9.4% growth.
Including other income, total income for Q3 stood at ₹43,374.02 lakh. At the same time, for the nine months, it amounted to ₹1,35,830.05 lakh, supported by government incentives and efficiency gains.

Profitability and Key Financial Metrics​

• Profit Before Tax (PBT) for Q3 FY 2024-25 stood at ₹2,847.11 lakh, compared to ₹2,916.48 lakh in Q3 last year.
• Nine-month PBT saw a substantial rise to ₹9,820.59 lahks, compared to ₹7,896.69 lakh in the previous year's period.
• Net Profit After Tax (PAT) for the quarter was ₹2,145.67 lakh, while the nine-month PAT increased to ₹7,335.60 lakh, up from ₹5,883.58 lakh in the previous year.
• Earnings per Share (EPS) for Q3 was ₹2.63 (basic) and ₹2.62 (diluted), while for the nine months, it stood at ₹9.00 (basic) and ₹8.95 (diluted).

Operational and Cost Analysis​

• Raw material costs for Q3 surged to ₹30,526.20 lakh, reflecting increased input prices.
• Employee benefit expenses stood at ₹2,520.87 lakh, ensuring workforce stability amid industry competition.
• Finance costs remained stable at ₹509.18 lakh, demonstrating effective debt management.
• Depreciation and amortization expenses amounted to ₹849.13 lakh, reflecting ongoing capital investments.
• Power and fuel expenses increased to ₹4,756.13 lahks, and other expenditures reached ₹6,752.00 lakh, underscoring operational cost pressures.

Total expenses for Q3 amounted to ₹40,526.91 lakh, ensuring sustained profitability despite cost escalations.

Government Incentives and Expansion Plans​

VSSL continues to benefit from government incentives under the Industrial and Business Development Policy 2017. The company recorded:

• ₹621.58 lahks in government incentives for Q3
• ₹1,915.84 lakh in incentives for the nine months, primarily from exemptions in electricity duty, infrastructure development cess, property tax, and GST refunds.

The company focuses on operational efficiency and strategic expansion to drive long-term profitability.

Equity and Shareholding Updates​

During Q3, VSSL issued 63,000 equity shares under its Employee Stock Options Scheme (ESOP). Consequently, the paid-up equity capital increased to ₹8,155.81 lakh, reflecting the company's commitment to rewarding and retaining key talent.

Consolidated Financial Performance​

The company's consolidated financial results remain aligned with the standalone performance. VSSL holds a 26% stake in Sone Solar Private Limited, acquired in May 2024. However, this strategic investment is structured without immediate profit distribution.

Market Outlook and Future Strategy​

VSSL's steady revenue growth, disciplined cost control, and strategic government partnerships position it for long-term success. With ongoing expansions and a robust financial structure, the company is well-poised to capitalize on emerging opportunities in India's growing steel and infrastructure sector.