Mukul Mahavir Agrawal and Anil Kumar Goel portfolio stock sets record date for 1:1 bonus share: Do you own?

Vardhman Special Steels is a small-cap company that recorded a market cap of ₹1,576.95 Cr during today's closing session. Vardhman Special Steels Limited incorporates manufacturing technology for steel melting, bright bar, rolling mill and heat treatment.

“Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Company has fixed Friday, May 19, 2023 as the Record Date for determining eligibility of the shareholders for issuance of Bonus Equity Share of the Company in the proportion of 1 (One) Equity Share of Rs. 10/- each for every 1 (One) existing Equity Shares of Rs. 10/- each, subject to the approval of shareholders which is being obtained through Postal Ballot,” said Vardhman Special Steels in a stock exchange filing.

The company's revenue from operations stood at Rs. 422.04 crore in Q4 FY23, as against Rs. 343.35 crore in Q4 FY22, registering a growth of 22.92% Y-o-Y. EBITDA for the quarter decreased by 50.19% to Rs. 29.67 from Rs. 59.56 crore in Q4 FY22, and it was Rs. 5,873 per tonne. Q4 FY23 PAT stood at Rs. 13.68 crore as against PAT of Rs. 29.19 crore in Q4 FY22, a decrease of 53.15% YoY. EPS for the quarter stood at Rs. 3.37 vs Rs. 7.20 in Q4 FY22. Volumes for the quarter rose by 21.43% YoY to 50,511 tonnes from 41,596 tonnes in Q4 FY22. 

Revenue from operations increased by 26.78% in FY23 from Rs. 1,368.46 crore in FY22 to Rs. 1,734.99 crore. Volumes increased 15.46% year on year to 2,00,095 tonnes from 1,73,307 tonnes in FY22. EBITDA decreased by 11.11% to Rs. 180.08 crore from Rs. 202.58 crore in FY22. According to the firm, PAT for FY23 was Rs. 100.45 crore, down from Rs. 100.75 crore in FY22, a fall of 0.30%, while EPS for FY23 was Rs. 24.76, down from Rs. 24.87 in FY22. The Board have also recommended a dividend of ₹5 per share. 

Mr Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels Ltd. said “Q4 FY23 was a difficult quarter wherein on one hand we saw good sales volume of over 50,500 tons leading to sales volume of more than 2,00,000 tons for the full year for the first time in history. On the other hand, we saw a price correction from OEMs putting pressure on realizations thereby impacting the overall EBITDA. The EBIDTA showed a bigger fall than due for the fourth quarter as this quarter reflected the price reduction of the third quarter as well.”

“The EBITDA per ton was also impacted on account of higher prices of fuel and consumables and lower other income. Despite certain stated difficulties, we have achieved EBITDA/ton of Rs. 9,000 for full year which is well within the stated range of Rs. 7,000 – 10,000,” he further added.

“This quarter has marked a breakthrough in the Company and I am happy to share that the Company has started mass production of steel for forging companies of Aichi Steel Corporation based in South East Asia for some grades for which approvals have been received. Further, we are delighted to share that we had wonderful celebrations on completion of 50 glorious years of Vardhman Group in the Steel Business. Mr. Takahiro Fujioka, President of Aichi Steel Corporation, Japan was the Chief Guest. Vardhman's entire team deserves appreciation for the tremendous work they have put in. We remain focused and committed to our strategic goals and are actively working to further improve our performance going forward. I reassure my stakeholders that we will maintain the pace of our efforts and hard work and continue to execute in line with the stated objectives,” said Mr Sachit Jain.

The shares of Vardhman Special Steels closed today on the BSE at ₹388.15, up by 5.79% from the previous close of ₹366.90. The stock touched a 52-week-high of ₹430.00 on (12/04/2023) and a 52-week-low of ₹201.10 on (23/06/2022). During Q4FY23, the company reported a promoter shareholding of 60.71%, FIIs stake of 1.14%, DIIs stake of 1.03% and a public stake of 37.13%. During the quarter ended March 2023, ace investors Mukul Mahavir Agrawal held 5,00,000 shares or 1.23% stake and Anil Kumar Goel held 9,09,000 shares or 2.24% stake in Vardhman Special Steels.