Punjab-based steel manufacturer reports 6.2% revenue increase and unveils plans for a new 500,000 MT capacity plant.
23 Apr 2025 | 761 Views | By Shruti Shiraguppi
Ludhiana-based Vardhman Special Steels Limited (VSSL) announced a 6.2% year-over-year increase in revenue to Rs 1,764.41 crore for the financial year ended March 31, 2025, alongside plans for a new Rs 2,000 crore greenfield steel plant in Punjab. The company declared these results during a board meeting held on April ...
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Ludhiana-based Vardhman Special Steels Limited (VSSL) announced a 6.2% year-over-year increase in revenue to Rs 1,764.41 crore for the financial year ended March 31, 2025, alongside plans for a new Rs 2,000 crore greenfield steel plant in Punjab. The company declared these results during a board meeting held on April 22, 2025.
The board recommended a dividend of Rs 3 per equity share, up from Rs 2 in the previous year, subject to approval at the Annual General Meeting.
VSSL reported that its EBITDA (including other income) grew by 2.84% to Rs 177.16 crore in FY25, while profit after tax increased by 1.59% to Rs 93.09 crore compared to the previous fiscal year.
The company's sales volume for FY25 reached 219,996 MT, representing a 12.8% increase from the 195,024 MT reported in FY24. This figure includes 215,843 MT of rolled products (a 10.67% increase) and 4,153 MT of billets.
For the fourth quarter of FY25, VSSL posted a revenue of Rs 428.04 crore, a 2.59% decrease compared to Q4 FY24, despite a 3.29% increase in sales volume to 53,834 MT. The company attributed this decline to lower realizations despite increased volumes.
Q4 EBITDA fell by 32.89% to Rs 38.62 crore, with PAT decreasing by 39.83% to Rs 19.73 crore compared to the same quarter last year. The company noted this decline was primarily due to lower gross margins.
The highlight of the announcement was VSSL's plan to establish a new greenfield steel plant in Punjab with a capacity of 500,000 MT per annum of billet production, along with corresponding rolling mill and testing facilities. The project, estimated to cost approximately Rs 2,000 crore, will be funded through a combination of internal accruals, equity, and debt.
"I am happy to announce our long awaited capex plan of setting up a new green field steel plant in the State of Punjab for manufacturing of special and alloy steel. The proposed capacity addition is 5,00,000 MT of billet production with commensurate Rolling Mill & testing facilities. The total Capex required for this would be around Rs. 2000 Crores, which will be funded through a mix of internal accruals, equity and debt. With this green field plant we will be able to address the expected capacity shortage post-2028. This will support future demand, meet evolving quality standards, align with trends like Green Steel, and help reduce manufacturing costs," said Mr. Sachit Jain, Vice Chairman & Managing Director of Vardhman Special Steels Ltd.
The company expects the new facility to be commissioned by FY 2029-30. According to VSSL, the plant will address anticipated capacity shortages after 2028, help meet higher quality standards required by OEMs, reduce overall steel manufacturing costs, and enable diversification into new product segments such as wire rods, forging, and the non-automotive sector.
Regarding current operations, Jain noted that market demand remains muted with limited opportunities for price increases, while raw material prices are relatively stable. He also mentioned that the recently commissioned Kocks Block is in the stabilization phase and is expected to enhance productivity and reduce inventory requirements once fully operational.
Vardhman Special Steels Limited is among India's leading producers of special steels, catering primarily to automotive, engineering, tractor, bearing, and allied industries both domestically and internationally.