Vibhor Steel Tubes has reported robust growth in its financial performance for Q4 FY24. The company's Profit After Tax (PAT) increased by 9.60 per cent, amounting to Rs 488.66 lakh, up from Rs 445.86 lakh in the same period last year.
Additionally, EBITDA surged by 22.11 per cent, reaching Rs 1,317.04 lakh compared to Rs 1,078.58 lakh in Q4 FY23. Despite these positive trends, Vibhor Steel faced challenges with its operating income, which declined by 4.68 per cent in Q4 FY24 to Rs 29,119.92 lakh from Rs 30,549.41 lakh in Q4 FY23.
For the full financial year, Vibhor Steel's EBITDA grew by 6.52 per cent, reaching Rs 4,672.00 lakh compared to Rs 4,385.93 lakh in FY23. The company's operating income for the entire year totaled Rs 107,271.47 lakh, marking a 3.63 per cent decline from Rs 111,311.90 lakh in FY23. PAT for FY24 saw a decline of 15.89 per cent, falling to Rs 1,771.94 lakh from Rs 2,106.62 lakh in the previous fiscal year.
This decline in PAT is attributed to increased finance costs, higher advertisement and business promotion expenses, and greater depreciation due to capital expenses at the Hyderabad unit. Consequently, the Earnings Per Share (EPS) for FY24 decreased by 37.10 per cent to Rs 9.34 from Rs 14.85 in FY23.
Commenting on the results, Vijay Kaushik, Founder, Chairman, and Director of Vibhor Steel, stated, "While we faced several financial challenges this year, our core operational performance remains strong, as evidenced by the increase in EBITDA and EBITDA margin. The strategic investments in marketing and capital expenditures are essential for our long-term growth and market positioning. We are confident that these investments will yield positive results in the coming years."
Vibhor Steel remains committed to enhancing shareholder value and achieving sustainable growth. The company continues to focus on strategic initiatives and operational excellence to navigate the current economic landscape and emerge stronger.
In addition, at its meeting held on 28 May 2024, the Board of Directors of Vibhor Steel Tubes approved the establishment of a second GI plant with a capacity of 24,000 tons per annum at Balanagar, Mahabubnagar District, Telangana. The company also provided updates on the construction of its new facility, Unit III, in Odisha, located in Village Podbahal under Sardar Sundargarh Tehsil in the district of Sundargarh. This new facility is part of Vibhor Steel's ongoing expansion efforts to meet growing market demands and enhance production capabilities.
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