Vesuvius India Ltd is primarily engaged in the manufacturing and trading of refractory goods. It also provides services in relation to refractory goods. It has operations in India and caters to both domestic and international markets.
The promoter group of Vesuvius India Ltd is the Vesuvius Group, which is based in the UK. The Vesuvius Group holds a significant stake of 55.57% in Vesuvius India Ltd.
The company offers products like shaped refractories like shrouds, stoppers, pre-cast products, nozzles, and crucibles. It also includes unshaped refractories like castables and taphole clay. It also produces refractory lining materials for iron and steel production.
On Tuesday, Vesuvius India Ltd shares closed at ₹4,541 per share, up 4.29 percent from the previous close price on the National Stock Exchange. The company has a market capitalization of ₹ 9,219 crores.
Vesuvius India Ltd shares have gained 35% in the last 12 trading days, while company shares have gained 26% in the last six months and 172% in the last 12 months.
In comparison to the preceding quarter, the Company’s operational revenue surged by 8.7% from ₹417 crore in Q3FY24 to ₹453 crore in Q4FY24. Additionally, net profit escalated by 22%, rising from ₹57 crore to ₹69 crore.
The company’s operational revenue surged by 23% year-on-year, climbing from ₹368 crore in Q4FY23 to ₹453 crore in Q4FY24. Correspondingly, net profit escalated by 60%, increasing from ₹43 crore to ₹69 crore.
Moreover, Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) witnessed a significant rise of 78% year-on-year, reaching ₹94.3 crore. The EBITDA margin expanded by approximately 500 basis points to 20.8% from 14.5% in the previous year’s quarter.
Vesuvius India Ltd recently announced intentions to double its investment in India to Rs 1,000 crore, up from the initial plan of Rs 500 crore. This investment aims to bolster operations and manufacturing capabilities in India, with a specific focus on meeting the heightened demand for flux, a critical component in the continuous casting process at steel plants.
Over the past two years, Vesuvius has been focusing on expanding capacity at existing plants in India while establishing three new greenfield manufacturing units. These initiatives are poised to add an extra capacity of 2,50,000 tonnes per year.
Furthermore, the company inaugurated a new mould flux manufacturing plant in Vishakapatnam in recent months to cater to the escalating demand for flux, as stated in the company report.
Brokerage firm Monarch Networth Capital anticipates margins to remain robust, hovering around 18% levels in calendar years 2025 and 2026. The brokerage firm’s report highlights the expectation of sustained momentum in sales volume growth owing to leadership in flow control, product diversification, and ongoing capital expenditure commitments.
Written by Omkar Chitnis
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