Vardhman Special Steels Ltd

- Currently, the company does not need any more equity at this point in time. - However, once capital expenditure (CAPEX) plans start for new projects (forging or new steel plant), dilution will be required. - The timing of any equity dilution is uncertain but may happen later this year or next year depending on project decisions. - The company has committed to allowing its partner Aichi to increase their stake whenever they wish. - For the ongoing CAPEX (about Rs. 370-380 crores pending), some incremental debt is expected, but debt-to-equity ratio is likely to remain below 0.2-0.3. - The company’s current debt-equity ratio is very low at 0.12. - Future clarity on fundraising is expected in about 9 months to 1 year, after completing studies and approvals for new plants.

- Ongoing CAPEX of around Rs. 400-433 crores including earlier projects of Rs. 260 crores and Rs. 140 crores, plus new incremental Rs. 33 crores announced recently. - Rs. 33 crores CAPEX focused mainly on environmental improvements (around Rs. 14-15 crores), R&D equipment, building redundancies, offline maintenance capabilities, and some debottlenecking. - Planned rolling mill capacity expansion from ~210,000-215,000 to 250,000 tons. - Billet capacity improved to 260,000 tons with a target to increase to 285,000 tons by FY26-27. - CAPEX expected to complete mostly by FY25-26, with some spillover into FY26-27. - Study and planning underway for new forging plant and greenfield steel plant; process started but no finalized decisions yet. - Potential equity dilution and stake increase by partner Aichi when new large CAPEX begins. - Investment in a solar plant (55 MW) expected by Dec 2024, reducing carbon footprint significantly. - Future CAPEX beyond Rs. 33 crores dependent on new plant decisions and market studies.

- Volume guidance for FY24-25 is around 210,000 to 215,000 tons. - Expected volume growth to 220,000 to 230,000 tons in FY25-26. - Further growth to 235,000 to 250,000 tons by FY26-27. - Bright bars capacity currently 48,000 tons per annum; expected to increase to about 60,000 tons in 3 years, mostly within 2 years. - Sales to Aichi planned to grow but currently slightly below expectations due to currency and market reasons. - Export volumes expected to increase from about 12,000 tons in FY24 to 16,000-17,000 tons in the current year. - Demand outlook is positive with growth in automotive and construction sectors; tractor segment currently slower but expected to recover post elections. - New capacities and debottlenecking will support volume growth; target to reach 285,000 tons billet capacity by 2026-27.

- EBITDA per ton guidance upgraded: - From FY25-26: Rs. 8,000 to Rs. 11,000 per ton (previously 7,000 to 10,000) - Aspirationally from FY26-27: Rs. 9,000 to Rs. 12,000 per ton - Volume growth expected: - FY24-25: 210,000 to 215,000 tons - FY25-26: 220,000 to 230,000 tons - FY26-27: 235,000 to 250,000 tons - Capacity expansions underway: - Billet capacity increasing from 260,000 to 285,000 tons by FY26-27 - Rolling mill capacity from 210-215k to 250,000 tons planned - Operating improvements from process efficiency and quality enhancements, not through price increases - New CAPEX of Rs. 33 crores and pending Rs. ~370 crores to further support growth - Solar power plant and environmental upgrades expected to reduce costs and improve margins - Earnings growth contingent on commodity price spreads and stable demand, especially from automotive and EV sectors

The transcript provided does not explicitly mention the current or expected order book or pending orders for Vardhman Special Steels Limited. However, based on the discussions, here are relevant insights that may indirectly relate to order visibility and demand outlook: - Automotive sector demand is improving, with plans to cater to increasing auto and EV requirements involving better quality, cleaner, lighter steels. - The company expects overall volume growth: around 210-215k tons in FY24-25, 220-230k tons in FY25-26, and 235-250k tons in FY26-27. - Exports volume expected to increase from 12,000 tons in FY24 to 16,000-17,000 tons this year. - Discussions about capacity expansions (billet capacity from 260,000 to 285,000 tons) reflect confidence in increased demand. - CAPEX projects are ongoing to support growth, indicating solid order pipeline or expected orders to utilize expanded capacity. No specific figures on orderbook or pending orders were disclosed.