Vardhman Special Steels (VSSL) is one of India's leading producers of special steels, catering to diverse sectors of automotive, engineering, tractor, bearing & allied industries has reported a phenomenal rise of 638.38% in its standalone net profit for the quarter ended March 2021.The company has earned Rs 263.6 million in the quarter, compared with Rs 35.7 million for the same period last year.

Revenue from Operations for the quarter increased 62.64% to Rs 3,344.8 million from Rs 2,056.6 million due to combination of higher sales volume and price increase which came into effect from January 2021.

EBITDA (including other income) for the quarter was Rs. 546.8 million as against Rs. 172.7 million in the corresponding previous period, a Y-o-Y growth of 216.56%, mainly on account of increase in sales volumes, price increase, better realizations and higher operational efficiencies.

The volumes for the quarter stood at 47,828 tonnes - YoY growth of 33.92%, mainly on account of account of strong demand from the automotive sector.

The company's board of directors recommended a dividend of Rs 1.5 per share with face value of Rs 10 each for the financial year ended March.

Commenting on the result, Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels said, "During the fourth quarter, our sales volumes stood at 47,828 tonnes with a revenue of Rs. 3344.8 million and EBIDTA of Rs. 546.8 million which was the highest ever for a quarter. However, this EBIDTA for the quarter had has some exceptional items and is not indicative of future annual profit. For the year, the volumes stood at 1,50,265 tonnes with a revenue of Rs. 9,370.8 million and EBIDTA of Rs. 1,163.1 million. This growth can be attributed to growing demand in the automotive sector and strong demand from OEMs/component manufacturers for our products and increase in prices.

This is reassuring in terms of our ability to achieve set targets and in turn deliver complete customer satisfaction. We plan to bring this into force by increasing our volumes, realizations while improving operational efficiencies and reducing working capital. We have already successfully crossed our RoCE target of 18% and recorded RoCE (EBIDTA/ Net Capital Employed) of 19.5%. We are now adding a new goal to reach RoCE of 25% by the year 2025.

The last year has been especially noteworthy in terms of challenges and overcoming obstacles in terms of the global pandemic. In the second wave, one of the key challenges for our country, has been acute shortages of oxygen cylinders. In order to ease the situation in Ludhiana, we have been diverting oxygen from our production to medical use, delivering 2,000 cylinders per day. Our teams' efforts have been appreciated by the district administration and we will continue to give back to our nation who has given us so many opportunities to grow and prosper.

Overall, we remain focused on creating value for our stakeholders and managing the business for the long term to transform our business and our ways of working. I am thankful to the entire team at Vardhman for overcoming gripping uncertainties and delivering good results."

Shares of the company gained Rs 2.85, or 1.49%, to trade at  Rs 193.55.  The total volume of shares traded  was  21,844 at the BSE (11.41 a.m., Friday).